Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q2 2020 Earnings Presentation
19 slides from Bluelinx's earnings presentation, Aug 3, 2020
Slide 1: Second Quarter 2020 Earnings Call Presentation
BlueLinx (NYSE: BXC) Second Quarter 2020 Earnings Call Presentation August 4, 2020
Slide 2: Notes to Investors: Forward-Looking Statements
Notes to Investors Forward-Looking Statements. This presentation contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain th
Slide 3: Q2 2020 Overview
Q2 2020 Overview • Responded quickly to COVID-19 with focus on safety • Generated strong financial results for Q2 2020 with Net Sales of $699 million, record Gross Margin of 14.4%, and Adjusted EBITDA of $31 million, a $6 million improvement • Builders Confidence Index returns to pre-COVID-19 levels
Slide 4: COVID-19 Update
COVID-19 Update • Safety and health of associates highest priority with respect to all business decisions • Our operations have remained intact and working efficiently; minimal business interruption to-date • Cost containment remains a primary focus • Significant working capital efficiencies achieve
Slide 5: Current Market Conditions
Current Market Conditions Single Family Housing Market Dynamics + Improvement versus April low point + Current pricing above prior year + Current mortgage rates at historical lows + Momentum going into the third quarter + Strong demand in repair & remodel - Lumber Futures lower than current price -
Slide 6: End-Use Market Outlook
End-Use Market Outlook • Seasonally adjusted single-family housing starts jumped 17.2% from May to June; still down 4% from June 2019 and well below the 50-year historical average • According to the latest National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI) builder
Slide 7: Financial Overview
Financial Overview 7
Slide 8: Q2 2020 Overview
Q2 2020 Overview All comparisons are made to same period prior year unless otherwise noted Financial Performance Balance Sheet & Liquidity Market Performance • Net Sales of $699 million • Cash provided by operating activities • SFHS seasonally adjusted annual rate • Gained momentum through Q2 of $72
Slide 9: Q2 2020 Results
Q2 2020 Results $ in millions Q2 '20 Q2 '19 Var. Q2 2020 Highlights Net Sales $699 $706 ($7) • Q2 Net sales up $9 million excluding impact of discontinued siding line Gross Margin 101 94 7 • SG&A down $4 million through reductions in labor, operating costs, and Gross Margin Rate 14.4% 13.3% 110bps t
Slide 10: Structural Product Commodity Pricing Update
Structural Product Commodity Pricing Update Framing Lumber Composite Price Structural Panel Composite Price Source: Random Lengths Source: Random Lengths $550 $550 2020 2020 $450 $450 5YR AVG $383 2019 2018 5YR AVG $404 $350 $350 2018 2019 $250 $250 Mar Jun Sep Dec Mar Jun Sep Dec • Structural gross
Slide 11: Sales and Gross Margin by Product Q2'19 vs. Q2'20
Sales and Gross Margin by Product Q2’19 vs. Q2’20 Sales by Product Historical Gross Margin Q2’19 Q2’20 17.3% 16.4% $706M $699M 15.9% 16.2% 16.1% 15.2% Specialty 14.4% 13.8% 14.1% Structural Structural Total 13.5% 13.3% 13.5% $224M $250M 32% 36% Specialty 10.1% 9.5% 9.3% $482M Specialty 8.9% 8.7% 68%
Slide 12: Operating Working Capital
Operating Working Capital1 $ in millions Jun-20 Jun-19 Variance • Decreased inventory balance by $65 Current assets: million since the end of the first quarter Cash $11 $13 ($2) -15% Receivables 265 262 3 1% • Days Sales of Inventory remains Inventories, net 314 358 (44) -12% significantly better th
Slide 13: Capital Structure
Capital Structure • ABL reduced to 2019 seasonal low point through efficiently managing working capital and generating positive operating cash flow • Continued focus on reducing Term Loan to $45 million to eliminate the Term Loan Leverage Ratio covenant • Term Loan Leverage Ratio 4.86x for Q2 2020;
Slide 14: July 2020 Update
July 2020 Update • Sales volumes positive to prior year, with both Structural and Specialty increasing • Growth stronger in Structural • Positive in all operating regions • Average commodity prices over 50% higher than July 2019 • Continued emphasis on working capital management • Carefully monitori
Slide 15: Appendix
BlueLinx ASS a's Building Products Distributor Appendix
Slide 16: Cash Flow Statement
Cash Flow Statement $ in millions Q2 ‘20 YTD ‘20 Actual Prior Year Actual Prior Year Cash flows from operating activities: Net income $6.7 $6.3 $5.9 ($0.4) Changes in net cash from other operating activities 18.1 7.2 20.3 5.5 Changes in operating assets and liabilities: Receivables (16.7) (15.4) (71
Slide 17: Non-GAAP Measures
Non-GAAP Measures BlueLinx reports its financial results in accordance with GAAP, but we also believe that presentation of certain non-GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affecting the business than using reported GAAP resu
Slide 18: Adjusted EBITDA
Adjusted EBITDA $ in millions Q1 ‘19 Q2 ‘19 Q3 ‘19 Q4 ‘19 Q1 ‘20 Q2 ‘20 TTM Net income (loss) ($6.7) $6.3 ($7.0) ($10.2) ($0.8) $6.7 ($11.3) Adjustments: Depreciation and amortization 7.3 7.5 7.6 7.8 7.6 7.1 30.1 Interest expense, net 13.4 13.7 13.4 13.7 14.4 11.5 53.0 Provision for (benefit from) i
Slide 19: Please reference the Earnings Release, 10-K and 10-Q on our website
Please reference the Earnings Release, 10-K and 10-Q available on our website www.BlueLinxCo.com © 2 0 2 0 BLUELINX C O MP A N Y . A L L R I G H T S R E S E R V E D . 19