Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q1 2022 Earnings Presentation
30 slides from Bluelinx's earnings presentation, May 4, 2022
Slide 1: Q1 2022 Results
BLUELINX Q1 2022 Results MAY 4, 2 022
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 the words “believe,” “antic
Slide 3: Opening Remarks
Opening Remarks Dwight Gibson, President and CEO MAY 4, 2022
Slide 4: Executive Summary
Executive Summary record profitability in Q1; announced $100m share repurchase program including $60m accelerated share repurchase agreement Record profitability in Q1 2022 Strong start to 2022 Solid April – volumes steady to Q1 Average yoy net sales growth of 39% (Q4 2020-Q1 2022) Six consecu
Slide 5: Share Repurchase Program
Share Repurchase Program compelling opportunity at attractive valuation Share Repurchase Details Increased share repurchase authorization to $100m (up from $25m) $6m completed in Q1 2022 We believe this is a compelling opportunity Includes $60m accelerated share repurchase agreement to repurch
Slide 6: Q1 2022 Highlights
Q1 2022 Highlights achieved record profitability in Q1 2022; 63% of gross profit from specialty product sales Record Q1 2022 Profitability Net sales grew 27% to $1.3b: Gross Profit by Product Category Specialty product net sales up 36% Structural product net sales up 16% Specialty Products G
Slide 7: Operating Improvements and Strategic Focus
Operating Improvements and Strategic Focus… …driving better execution and performance A Whole New Blue Operating Improvements: Narrowed Strategic Focus: Disciplined purchasing decisions Increasing high margin, specialty product mix Value-based pricing Driving growth in private label products
Slide 8: U.S. Housing Industry
U.S. Housing Industry fundamentals remain healthy Demand Environment Supply/Cost Environment Continued growth in single-family housing starts Supply for specialty building products remains estimated through 2023 constrained U.S. Housing inventory remains near historically Increased labor rat
Slide 9: Q1 2022 Financial Review
Q1 2022 Financial Review Kelly Janzen, Chief Financial Officer MAY 4, 2022
Slide 10: First Quarter 2022 Results
First Quarter 2022 Results key metrics $ millions, except per share data Q1 2021 Q1 2022 Variance Net sales grew 27% to $1.3b: Specialty sales grew 36% Net sales $1,025 $1,302 27% Structural sales up 16% Gross Profit $180 $291 61% Gross Margin of 22.3%, up 470 bps Gross Margin % 17.6% 22.3%
Slide 11: Working Capital
Working Capital continued significant return on working capital year over year • Significant return on working Operating Working Days Sales of Inventory (DSI) capital, 62% for TTM Q1 2022 Capital Management(1) Number of Days Dollars in millions 58 • $171m sequential increase in $1,000 53 54 48 47 to
Slide 12: Specialty Products Results
Specialty Products Results strong year-over-year and sequential performance Q1 year-over-year analysis ($ millions) $768 Net sales grew 36%, or $205m: GM Rate Net sales $675 Disciplined, value-based pricing $641 $641 Demand remained robust and $563 24.4% 24.0% vendor supply remained on 23.0% a
Slide 13: Structural Products Results
Structural Products Results rigorous inventory management; capitalized on increase in wood-based commodity prices Q1 year-over-year analysis ($ millions) Net sales grew 16%, or $72m: $633 Growth driven by increase in wood- based commodity prices: GM Rate $534 Net sales 26% increase in avg. pri
Slide 14: Debt Structure and Maturity
Debt Structure and Maturity financial position remains strong ($ millions) Debt Structure $734 $77 $640 $572 Net leverage of 0.9x Finance Leases $382 $359 Revolver (ABL) $300 Term Loan $421m of available liquidity Senior Notes $275 $281 $272 No material debt maturities in the 1Q20 1Q21 1Q22 ne
Slide 15: Capital Allocation Framework
Capital Allocation Framework disciplined approach to support future growth and value creation GUIDING PRINCIPLES Value Creation = ROIC > WACC X Invested Capital Maintain strong balance OPERATING CASH FLOW FREE CASH FLOW sheet and financial stability INVEST IN BUSINESS: INVEST IN BUSINESS STRATEG
Slide 16: Executive Summary
Executive Summary Dwight Gibson, President and CEO MAY 4, 2022
Slide 17: First quarter 2022 highlights
Executive Summary first quarter 2022 highlights Net sales grew 27% to $1.3b: Specialty product net sales up 36% Structural product net sales up 16% Diluted EPS of $13.19, up 110% Record quarterly adjusted EBITDA and EBITDA margin: Adjusted EBITDA of $202m, up $96m, or 90% Adjusted EBIT
Slide 18: BlueLinx Investor Day
BlueLinx Investor Day June 2, 2022 @ NYSE A Whole New Blue REGISTER to ATTEND Key Focus Areas Path to North America’s Preeminent, High Value Building Products Distributor Accelerating Strategic Growth Driving Productivity through Operational Excellence Compounding Shareholder Value 17
Slide 19: Appendix
FESS merica’s Building Products Dis a BlueLin Appendix
Slide 20: Company Overview
Company Overview America's building products distributor • BlueLinx is a leading U.S. wholesale distributor of HEADQUARTERED FOUNDED CUSTOMERS FACILITIES residential and commercial Marietta, Georgia 1954 15,000+ accounts 60+ locations building products across product categories such as engineered wo
Slide 21: ESG
ESG increasing focus on ESG Key Pillars of ESG Focus Diversity & Focus on Environment and Accountable Governance Culture of Safety Inclusion Our Communities Practices • We continue to build and execute a culture • Certain products of ours are certified by • Separate roles for Chairman and the Forest
Slide 22: Single-Family Housing Demand
Single-Family Housing Demand housing fundamentals remain healthy Total U.S. Single Family Housing Starts (SFHS) Total U.S. Monthly Single-Family Residential Home Supply Housing starts in thousands(1) Months of inventory(2) • 2022 SFHS forecasted to 2,000 1,800 14 increase 8% compared to 2022 SFHS an
Slide 23: Residential Repair & Remodel Activity
Residential Repair & Remodel Activity elevated Repair & Remodel activity continues with spending predicted to strengthen in 2022 Total Installed Base of U.S. Homes, Including U.S. Private Residential Construction Put-In-Place • Annual U.S. Homes installed Renter and Owner-Occupied Homes (CPP) base f
Slide 24: Wood-Based Commodity Price Trends
Wood-Based Commodity Price Trends wood-based commodity markets continue to experience volatility in 2022 Framing Lumber Composite Index As of April 2022(1) • Prices rose throughout 1Q22; 1,600 Index Price TTM Avg. Index Price lumber and panels prices 1,400 Apr-22 framing lumber prices are 65% higher
Slide 25: Non-GAAP Measures
Non-GAAP Measures BlueLinx reports its financial results in accordance with GAAP. The Company also believes 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 GAA
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended March 2022 March 2021 Net income (loss) $ 133,409 $ 61,860 Adjustments: Depreciation and amortization 6,746 7,465 Interest expense, net 11,293 10,443 Adjustment to debt issuance cost associated with term (1) - 5,791 loan Provision for income taxes 47,322 21,746
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended March 2022 December 2021 September 2021 June 2021 March 2021 December 2020 (In thousands) Net income (loss) $ 133,409 $ 73,620 $ 47,198 $ 113,458 $ 61,860 $ 19,858 Adjustments: Depreciation and amortization 6,746 6,763 6,884 7,080 7,465 7,116 Interest expense, n
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Trailing Twelve Months for the Quarter Ended March 2022 December 2021 September 2021 June 2021 March 2021 December 2020 September 2020 June 2020 March 2020 December 2019 September 2019 June 2019 (In thousands) Net income (loss) $ 367,685 $ 296,133 $ 242,374 $ 250,292 $ 143,52
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Free Cash Flow for the Quarter Ended March 2022 December 2021 September 2021 June 2021 March 2021 December 2020 September 2020 June 2020 March 2020 December 2019 September 2019 June 2019 (In thousands) (1) Net cash provided (used) by Operations $ 2,237 $ 18,164 $ 104,258 $ 47
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net Debt and Net Leverage Ratio for the Trailing Twelve Months for the Quarter Ended March 2022 December 2021 September 2021 June 2021 March 2021 December 2020 September 2020 June 2020 March 2020 December 2019 September 2019 June 2019 (In thousands) Current maturities of long