Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q1 2019 Earnings Presentation
17 slides from Bluelinx's earnings presentation, May 8, 2019
Slide 1: First Quarter 2019 Conference Call Presentation
BlueLinx (NYSE: BXC) First Quarter 2019 May 8, 2019 Conference Call Presentation
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: First Quarter 2019 - Key Highlights
First Quarter 2019 - Key Highlights First Quarter 2019 • First Quarter Net Sales of $639 million • First Quarter Adjusted EBITDA of $17 million • Cedar Creek integration ahead of schedule; should be substantially complete in Q3 2019 • Annual run-rate synergies expected to be over $50 million in 2020
Slide 4: Business and Integration Update
Business and Integration Update • Gross Margin rate increased during quarter • Commodity wood prices significantly down versus last year which impacted net sales • Lumber and Panel Gross Margin above Q1 2018 rates • Softness in Single Family Housing Starts also impacted Q1 2019 revenue • Company emp
Slide 5: Strategic Initiatives
Strategic Initiatives Successful Integration Enhance Emphasize Sales of Cedar Creek Margins Growth • ~$3B of addressable • Emphasis on products • Increase local customer spend for cost savings and markets with higher interaction to grow opportunities margin profiles market share • Identifiable and •
Slide 6: End-Use Market Outlook
End-Use Market Outlook MARKET OUTLOOK • U.S. Housing Starts down 10% and Single Family Housing Starts (SFHS) down 5% in Q1 2019 versus Q1 2018 • March 2019 U.S. SFHS down 10% compared to March 2018 • Builders Confidence Index suggests positive growth in single-family housing market • Interest rates
Slide 7: Financial Overview
Biuetinx “AS America’s Building Products Distributor Financial Overview
Slide 8: Financial Summary – First Quarter 2019
Financial Summary – First Quarter 2019 • Net Sales of $639M, up $201M • Pro forma Net Sales down $146M • Gross Profit of $86M, up $31M • Pro forma Gross Profit down $14M • Gross Margin of 13.5%, up 90 bps • Pro forma Gross Margin up 80 bps • Net Loss of $7M, including the following one-time items: •
Slide 9: Commodity Lumber and Panel Business Impacts
Commodity Lumber and Panel Business Impacts FRAMING LUMBER COMPOSITE PRICE STRUCTURAL PANEL COMPOSITE PRICE Source: Random Lengths Source: Random Lengths $650 $650 $550 $550 $450 Q1 (31%) Q1 (28%) $450 2018 2018 $350 2019 $350 2019 $250 $250 Mar Jun Sep Dec Mar Jun Sep Dec HIGHLIGHTS • Pricing in co
Slide 10: Pro Forma Sales and Gross Margin
Pro Forma Sales and Gross Margin Q1’19 PRO FORMA SALES BY PRODUCT Q1 ’18 vs. Q1 ’19 PRO FORMA GROSS MARGIN Structural • Lumber • Plywood 15.6% • Rebar • Remesh Structural • Oriented Strand Board 31% • Particleboard 14.7% Specialty Specialty 69% Specialty • Cedar • Insulation 9.5% • Moulding • Roofin
Slide 11: Significant Acquisition Synergies from Cedar Creek
Significant Acquisition Synergies from Cedar Creek • Expect to achieve annualized run-rate synergies of $50M ahead of schedule • Cost to achieve expected to be $25M - $30M • Up to $25M of potential gross proceeds remain on sale of owned real estate in overlap markets EXPECTED YEAR-END RUN-RATE SYNER
Slide 12: Strong Deleveraging Potential Post Integration
Strong Deleveraging Potential Post Integration Estimated Potential Cash Available for Annual Uses of Cash1 Debt Reduction (Before Real Estate Monetization) ABL Interest2 $20M Term Loan Interest3 $16 Cash Available Finance Lease Payments3,4 $22 $110M for Debt $80M Pay down CapEx3 $5 $50M $30M Cash Ta
Slide 13: Real Estate and NOLs Overview
Real Estate and NOLs Overview $ in millions REAL ESTATE NOLs1 $9 $100 $150 - $160 4x Book $91 Value $37 - $40 Book Value Appraised Value Remaining NOLs NOLs generated Remaining NOLs FY 2018 Q1 2019 Q1 2019 • Term loan permits up to $50 in sale leasebacks in • NOLs can be used against ordinary income
Slide 14: Appendix
BS BlueLinx America’s Building Products Distributor Appendix
Slide 15: 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 16: Adjusted EBITDA
Adjusted EBITDA (In millions) (Unaudited) 2019 2018 2019 Proforma 2018 Proforma Q1 Q1 Q1 Q1 Net (loss) income $ (6.7) $ (3.3) $ (13.4) $ (9.1) Adjustments: Depreciation and amortization 7.3 7.3 2.7 6.8 Interest expense 13.4 13.4 8.5 14.0 Provision for (Benefit from) income taxes (2.5) (1.4) (1.5) (1
Slide 17: Please reference our Earnings Release and 10-Q
Please reference our Earnings Release and 10-Q available on our website www.BlueLinxCo.com