Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Investor Presentation (February 2014)
32 slides from Bluelinx's investor presentation, Feb 24, 2014
Slide 1: BlueLinx Holdings Inc. February 2014
BlueLinx Holdings Inc. February 2014 “To be leaders delivering value and global solutions through continuous innovation and exceptional service”
Slide 2: Forward-Looking Statement Safe Harbor
www.bluelinxco.com 2 BlueLinx Holdings Inc. Forward - Looking Statement Safe Harbor - This presentation includes "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 . All of these forward - looking statements are based on estimates and assumpti
Slide 3: BlueLinx Company Overview
BlueLinx Company Overview
Slide 4: Company Overview
www.bluelinxco.com 4 Company Overview • Leading provider of building products distribution services with 50 U.S. locations • Most comprehensive nationwide footprint in the highly fragmented building products distribution industry • Deliver over 10,000 specialty and structural products from over 750
Slide 5: Company History & Timeline
www.bluelinxco.com Company History & Timeline December 2004 BlueLinx completes its IPO An evolution of BlueLinx ’ business strategy BlueLinx ’ strategy has evolved from a plywood distribution outlet for Georgia - Pacific to a leading distributor to the building products industry May 2004 Georgia - P
Slide 6: Comprehensive Product Offering
www.bluelinxco.com 6 Comprehensive Product Offering • One of the industry’s broadest product offerings with over 10,000 branded and private - label products encompassing 70,000 SKUs • Provides significant cross - selling opportunities to drive BlueLinx’ revenue growth across multiple product lines •
Slide 7: The Right Products…To The Right Place…
www.bluelinxco.com 7 The Right Products…To The Right Place… Product resources, knowledgeable staff & nationwide foot print make us a valuable partner to vendors and customers - ensuring products make it to the right place at the right time Percentages shown represent estimated revenue by customer ty
Slide 8: Recent Operational and Strategic Initiatives
www.bluelinxco.com 8 New CEO Recent Operational and Strategic Initiatives Reduced Fixed Costs Gross Margin Performance Reorganized Operations Emphasis on Pricing Expansion • Mitch Lewis, Chief Executive Officer, started in January 2014 • Extensive North America building products experience • CEO of
Slide 9: Key Investment Highlights
www.bluelinxco.com 9 Key Investment Highlights Leading, National Distribution Platform Poised to Benefit from the Rebound in Housing Activity Diversified and Established Customer Base with Long - Term Relationships Low Capital Requirements and Significant Available Capacity for Growth State - of - t
Slide 10: Leading, National Distribution Platform
www.bluelinxco.com Leading, National Distribution Platform • Leading distributor of building products in North America with 50 facilities across the United States – Only “ pure ” distributor among five largest distributors • Comprehensive nationwide presence critical to blue - chip suppliers, nation
Slide 11: Poised to Benefit from the Rebound in Housing Activity
www.bluelinxco.com 11 Poised to Benefit from the Rebound in Housing Activity Housing Starts Expenditures for Residential Improvements Impact of Housing Starts End Market Exposure (Housing Starts in 000s) Industrial and Other 17% Residential 83% Single - Family Housing Starts 39% Repair & Remodel 37%
Slide 12: Diversified and Established Customer Base with Long-Term Relationships
www.bluelinxco.com 12 Diversified and Established Customer Base with Long - Term Relationships • National distributor of building products to over 11,500 customers with approximately 25,000 locations • Offers customers superior, reliable service, break bulk quantities, near 100% fill rates, reduced
Slide 13: Low Capital Requirements and Significant Available Capacity for Growth
www.bluelinxco.com 13 Low Capital Requirements and Significant Available Capacity for Growth Capital Expenditures • Company averaged $4.0 million in annual capital expenditures over last five years • No significant capital needs required for maintenance of business • Low asset utilization affords sc
Slide 14: State-of-the-Art Technology & Logistics
www.bluelinxco.com State - of - the - Art Technology & Logistics • Superior, proprietary systems provide real - time information to manage inventory levels, optimize logistics, and analyze profitability by product, customer, and location – Enhances customer service – Provides unequaled market intell
Slide 15: Experienced Management Team
www.bluelinxco.com Draft Experienced Management Team Employees Summary • Highly experienced employee base • BlueLinx maintains excellent relations with its workforce and representing unions Executive Management Team • Management possesses deep industry knowledge and distribution expertise • Senior l
Slide 16: BlueLinx Financial Overview
BlueLinx — Financial Overview
Slide 17: Summary Historical Financials
www.bluelinxco.com 17 Summary Historical Financials Gross Revenue Gross Revenue by Product Type Gross Margins Adjusted EBITDA ($ in Millions) (Housing Starts in 000s) ($ in Millions) 56.2% 43.8% 45.5% 54.5% 60.6% 39.4% 58.2% 41.8% 55.3% 44.7% ($ in Millions) ($ in Millions) Source: U.S. Census Burea
Slide 18: Effective Working Capital Management
www.bluelinxco.com 18 Effective Working Capital Management Working Capital and Turnover • Advanced information and logistics technology allow management to effectively forecast supply and demand to limit inventory requirements and optimize working capital investments ($ in Millions)
Slide 19: Capitalization Overview
www.bluelinxco.com ($ in millions) Cash and Cash Equivalents $ 5 Accounts Receivable, net 150 Inventory, net 224 Other Current Assets 23 PPE, net 111 Tangible Assets $ 513 Funded Debt $ 418 Tangible Assets to Funded Debt 1.23x 19 Capitalization Overview Capitalization Tangible Asset Coverage (1/04/1
Slide 20: Improving Credit Enhanced by Valuable Owned Real Estate Portfolio
www.bluelinxco.com 20 Slide 20 Improving Credit Enhanced by Valuable Owned Real Estate Portfolio Significant collateral coverage provides downside protection ($ in millions) State Total Square Ft. Acres 2013 Valuation 1 % of Total Value Maryland 684,000 69 $33,966 13.8% Florida 1,054,165 99 23,444 9
Slide 21: Appendix
www.bluelinxco.com 21 Appendix
Slide 22: 2013 Pro Forma Financial Summary
www.bluelinxco.com 22 2013 Pro Forma Financial Summary Notes: (1) Adjusted for discontinued operations (2) Normalized structural margin (see page 27) (3) Net annualized corporate cost reductions (see page 29) (4) Compensation for new CEO FY FY 2013 from Proforma FY 2013 Cont Ops Adjustments 2013PF N
Slide 23: 2012 Pro Forma Financial Summary
www.bluelinxco.com 23 2012 Pro Forma Financial Summary Notes: (1) Adjusted for discontinued operations FY FY 2012 from 2012 Cont Ops Net Revenue $1,907.8 ($104.7) 1 $1,803.1 COGS 1,677.7 (91.5) 1 1,586.2 Gross Profit $230.1 ($13.2) $216.9 % Margin 12.1% 12.0% Operating Expenses 224.6 (12.7) 1 211.9
Slide 24: 2011 Pro Forma Financial Summary
www.bluelinxco.com 24 2011 Pro Forma Financial Summary Notes: (1) Adjusted for discontinued operations FY FY 2011 from 2011 Cont Ops Net Revenue $1,755.4 ($83.8) 1 $1,671.6 COGS 1,545.3 (73.7) 1 1,471.6 Gross Profit $210.1 ($10.1) $200.0 % Margin 12.0% 12.0% Operating Expenses 218.4 (10.6) 1 207.8 %
Slide 25: Unaudited reconciliation of GAAP to Non-GAAP metrics
www.bluelinxco.com 25 Unaudited reconciliation of GAAP to Non - GAAP metrics Net Sales to Comparable Same Center Sales ($ in Millions) January 2, 2010 January 1, 2011 December 31, 2011 December 29, 2012 January 4, 2014 Total Net Sales $1,646.1 $1,804.4 $1,755.4 $1,907.8 $2,152.0 Less: Closed Center
Slide 26: Gross Margin Trends
www.bluelinxco.com 26 Gross Margin Trends 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2Q '084Q '082Q '094Q '092Q '104Q '102Q '114Q '112Q '124Q '122Q '13 Product Mix 0% 2% 4% 6% 8% 10% 12% 14% 16% GM % Structural Mix Specialty Mix Structural GM % Specialty GM % Total GM % ▪ In Q1 ’13, the Company too
Slide 27: Gross Margin Adjustment
www.bluelinxco.com 27 Gross Margin Adjustment (1) In Q1 - 13, the Company took an aggressive long - position in structural wood products in order to capture market share; as structural wood prices subsequently declined, the Company’s gross margin’s also declined. Historically, the Company manages it
Slide 28: Industry Trends
www.bluelinxco.com 28 Industry Trends Source: Data from Random Lengths Publications, Inc., updated as of January 3, 2014 Plywood Price Trend 2008-2013 YTD Southern Sheathing 15/32" 4 Ply. West Zone $100 $150 $200 $250 $300 $350 $400 $450 2008Q12008Q22008Q32008Q42009Q12009Q22009Q32009Q42010Q12010Q220
Slide 29: 2013 Restructuring – Cost Reductions
www.bluelinxco.com 29 2013 Restructuring – Cost Reductions Significant Cost Reductions Implemented since June 2013 Area Total ('000) Salaried headcount reductions $11,791 Other G&A (travel & entertainment, professional fees, etc.) $1,380 Total Annual Cost Reductions-2013 $13,171 Sales Investment (ad
Slide 30: Summary Historical Balance Sheet
www.bluelinxco.com 30 Summary Historical Balance Sheet ($) FYE Dec - 2011A FYE Dec - 2012A FYE Dec - 2013A Cash and short term investment 4.9 5.2 5.0 Receivables 138.9 157.5 150.3 Inventories 185.6 230.1 223.6 Prepaid expenses 4.7 3.8 3.9 Deferred income tax 0.0 0.0 0.0 Other current assets 22.4 15.
Slide 31: Debt
www.bluelinxco.com 31 Debt U.S. Revolver ▪ LIBOR plus 3.50% as of January 4, 2014 ▪ $447.5 million facility with additional $75 million uncommitted accordion facility – Matures April 15, 2016 Canadian Revolver ▪ LIBOR or Bankers’ Acceptance plus 2.50%; Canadian Prime Loan or U.S. Base Rate plus 1.00
Slide 32: www.BlueLinxco.com
www.bluelinxco.com 32 www.BlueLinxco.com
BlueLinx Holdings — Investor Presentation (February 2014) on 6ix