Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q4 2018 Earnings Presentation
20 slides from Bluelinx's earnings presentation, Mar 13, 2019
Slide 1: BlueLinx Fourth Quarter 2018 Earnings Webcast
BlueLinx Fourth Quarter 2018 Earnings Webcast * This presentation has been revised as described in the “Explanatory Note” to the Form 8-K/A of BlueLinx Holdings Inc. furnished to the Securities and Exchange Commission on March 13, 2019.
Slide 2: Notes To Investors: Forward-Looking Statements
Notes To Investors Forward-Looking Statements. This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply
Slide 3: Fourth Quarter and Full Year 2018 - Key Highlights
Fourth Quarter and Full Year 2018 - Key Highlights Fourth Quarter and Full Year 2018 • Fourth Quarter and Full Year Pro forma Net Sales were $673 million and $3.3 billion, respectively • Fourth Quarter and Full Year Pro forma Adjusted EBITDA of $7 million and $80 million, respectively • Cedar Creek
Slide 4: Integration Highlights to Date
Integration Highlights to Date ACCOMPLISHMENTS • Cedar Creek integration ahead of schedule • Expect to realize cost savings of $30 million in 2019 and $50+ million in 2020 • Physical consolidation completed in 11 overlapped markets • Additional two facilities by Q2 2019 • All facility locations expe
Slide 5: Significant Acquisition Synergies from Cedar Creek
Significant Acquisition Synergies from Cedar Creek • 2018 exit annual run-rate synergies exceeded $30M • $15M ahead of original forecast • Estimated costs to achieve synergies narrowed to be $25-$30M, down from original estimate of $40-$55M • Up to $25M of potential gross proceeds remain on sale of
Slide 6: Commodity Lumber and Panel Price Volatility
Commodity Lumber and Panel Price Volatility COMMODITY MARKET OUTLOOK • 2018 decline was largest in at least 20 years • First commodity price decline over 30% since 1998 • Commodity Lumber and Panels declined 41% and 36% respectively in 2H 2018; 22% and 23% in Q4 2018 • OSB price decline of 50% from
Slide 7: End-Use Market Outlook
End-Use Market Outlook MARKET OUTLOOK • U.S. Single Family Housing Starts (SFHS) down 9.6% or 19k in Q4 2018 compared to Q4 2017 • January U.S. SFHS flat (+1.8%) YoY • Builders Confidence Index is positively growing with the single family housing market • U.S. unemployment rate remains at historical
Slide 8: Strategic Initiatives
Strategic Initiatives Successful Integration Emphasize Sales Enhance of Cedar Creek Growth Margins • ~$3B of addressable • Increase local customer • Emphasis on products spend for cost savings interaction to grow market and markets with higher opportunities share margin profiles • Identifiable and •
Slide 9: Financial Overview
Biuetinx “AS America’s Building Products Distributor Financial Overview
Slide 10: Financial Summary – Fourth Quarter 2018
Financial Summary – Fourth Quarter 2018 • Net Sales of $673M, up $239M • Pro forma Net Sales down $104M • Gross Profit of $81M, up $26M • Pro forma Gross Profit down $17M • Gross Margin of 12.1%, down 70 bps • Pro forma Gross Margin down 50 bps • Net Loss of $16M, including the following one-time it
Slide 11: Financial Summary – Full Year 2018
Financial Summary – Full Year 2018 • Net Sales of $2,863M, up $1,047M • Pro forma Net Sales of $3,262M • Gross Profit of $332M1, up $101M • Pro forma Gross Profit of $394M • Gross Margin of 11.6%1 • Pro forma Gross Margin of 12.1% • Net Loss of $48M includes the following one-time items: • $25M acqu
Slide 12: Commodity Lumber and Panel Business Impacts Q4 '17 vs. Q4 '18
Commodity Lumber and Panel Business Impacts Q4 ’17 vs. Q4 ’18 COMMODITY PRO FORMA NET SALES Q4 ’17 vs. Q4 ’18 COMMODITY PRO FORMA GROSS PROFIT ($3) ($38) ($14) ($38) $346 $30 $5 $18 $270 Q4 '17 Volume Price Q4 '18 Q4 '17 Volume Commodity LCNRV Q4 '18 Pressure Reversal KEY HIGHLIGHTS • Commodity sale
Slide 13: Strong Deleveraging Potential
Strong Deleveraging Potential $ in millions Post Integration Estimated Annual Uses of Cash (Assumes no Real Estate Sales) ~$120+ Unrealized ~($20) Run-rate Synergies ~($16) ~($22) ~($5) ~($2) ~($4) ~$50+ Adj. EBITDA ABL Term Loan Capital Lease CapEx3 Cash Taxes3,5 Other 3,6 Cash 2 Estimate1 Interest
Slide 14: Leverage Expected to Decline
Leverage Expected to Decline $ in millions $ Amount Leverage Ratio Term Loan balance as of Q4 ’18 $179 1.5x Revolving Credit Facility balance as of Q4 ’18 (ABL) $333 2.8x Appraised Real Estate Value ($150 - $160) $150 Term loan permits - Up to $50 in sale leasebacks in 2019 - Sale of certain owned r
Slide 15: Real Estate and NOLs Overview
Real Estate and NOLs Overview $ in millions REAL ESTATE NOLs1 $159 $68 $150 - $160 4x Book Value $91 $37 - $40 Book Value Appraised Value Remaining NOLs NOLs used Remaining NOLs FY 2017 FY 2018 FY 2018 • Term loan permits up to $50 in sale leasebacks in • NOLs can be used against ordinary income, as
Slide 16: Appendix
Biuetinx “AS America’s Building Products Distributor Appendix
Slide 17: Non-GAAP And Supplementary Financial Measures
Non-GAAP And Supplementary Financial Measures BlueLinx reports its financial results in accordance with GAAP, but we also believe that presentation of certain non-GAAP measures, as well as GAAP-based and non-GAAP supplemental financial measures, may be useful to investors and may provide a more comp
Slide 18: Adjusted EBITDA
Adjusted EBITDA (In millions) (Unaudited) 2018 2017 2018 2017 Q4 Q4 Q4 YTD Q4 YTD Net (loss) income $ (16.2) $ 53.5 $ (48.1) $ 63.0 Adjustments: Depreciation and amortization 7.6 2.2 25.8 9.0 Interest expense 13.4 4.9 47.3 21.2 Provision for (Benefit from) income taxes (4.3) (54.2) (12.2) (53.4) Gai
Slide 19: Pro forma Adjusted EBITDA
Pro forma Adjusted EBITDA (In millions) (Unaudited) 2018 2017 2018 2017 Q4 Q4 Q4 YTD Q4 YTD Net (loss) income $ (11.4) $ 57.1 $ (18.1) $ 32.7 Adjustments: Depreciation and amortization 7.6 6.8 31.2 27.9 Interest expense 13.4 9.9 53.2 42.3 Provision for (Benefit from) income taxes (2.6) (58.0) (4.5)
Slide 20: Please reference our Earnings Release and 10-K available on our website
Please reference our Earnings Release and 10-K available on our website www.BlueLinxCo.com