Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q4 2023 Earnings Presentation
30 slides from Bluelinx's earnings presentation, Feb 21, 2024
Slide 1: BlueLinx Q4 and Full Year 2023 Results
BlueLinx Q4 and Full Year 2023 Results Delivering What Matters February 21, 2024 © BlueLinx 2024. All Rights Reserved. 1
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 Shyam Reddy President & CEO 3
Slide 4: BlueLinx Strategic Priorities
BLUELINX STRATEGIC PRIORITIES BlueLinx: Delivering What Matters 4
Slide 5: Delivering What Matters
DELIVERING WHAT MATTERS q Delivered strong full year 2022 results ✓ Delivered solid full year 2023 results given the challenging ▪ Net sales of $3.1B / down 29.5% year-over-year environment ▪ Adjusted EBITDA of $183M ▪ Operating Cash Flow of $306M, Free Cash Flow of $279M q Solid Q4 results highligh
Slide 6: Full Year 2023 Results
FULL YEAR 2023 RESULTS Explosive profitable growth with a highly engaged team n Net sales of $3.1B, down 29.5% year-over-year q Prior year included benefit from elevated demand and higher commodity prices n Gross profit of $527M, down 36.7% year-over-year q 16.8% of net sales q 80% of gross profit f
Slide 7: U.S. Housing Industry
U.S. HOUSING INDUSTRY n Home affordability remains challenging q Mortgage rates improving, but still elevated q Home price appreciation q Low housing inventory n New home starts trends improving q Single-family housing starts were down in 2023, but improved in Q4 q Builder's confidence rose to 48, u
Slide 8: Financial Review
Financial Review Andy Wamser Chief Financial Officer 8
Slide 9: Fourth Quarter 2023 Results
FOURTH QUARTER 2023 RESULTS $ millions, except per share data Q4 Q4 Variance 2023 2022 Net Sales $713 $848 (16)% Q4 Commentary Gross Profit $118 $151 (22)%) n Net Sales decreased 16.0% to $713M Gross Margin % 16.6% 17.8% 120 bps q Specialty product sales down 18% q Structural product sales down 12%
Slide 10: Specialty Products Q4 2023 Results
SPECIALTY PRODUCTS Q4 2023 RESULTS ($ millions) Q4 Commentary n Net sales of $487M, down 18% q Driven mainly by deflation q Specialty is approximately 70% of total net sales n Gross profit of $94M, down 24% q Specialty gross profit 80% of total gross profit n Gross margin of 19.4%, down 170 bps q Ab
Slide 11: Structural Products Q4 2023 Results
STRUCTURAL PRODUCTS Q4 2023 RESULTS ($ millions) Q4 Commentary n Net sales of $226M, down 12% q Driven mainly by deflation q Year-over-year average pricing for commodities was mixed: 15% decrease in average price of lumber 11% increase in average price of panels n Gross profit of $24M, down 10%
Slide 12: Full Year 2023 Results
FULL YEAR 2023 RESULTS $ millions, except per share data FY FY Variance 2023 2022 Net Sales $3.1 $4.5 (30)% ($ billions) FY 23 Commentary Gross Profit $527 $833 (37)% n Net Sales decreased 30% to $3.1B Gross Margin % 16.8% 18.7% 190 bps q Specialty product sales down 24% q Structural product sales d
Slide 13: Balance Sheet
BALANCE SHEET ($ millions) Gross Debt Structure Debt Maturity Schedule $300 undrawn revolver Note: debt maturity schedule does not include finance lease obligations Net Leverage n At the end of Q4 2023: ▪ Net leverage of 0.3x ▪ Net leverage of (1.0x) per terms of our credit agreement, which does not
Slide 14: Working Capital and Free Cash Flow
WORKING CAPITAL AND FREE CASH FLOW Net Working Capital Management(1) FY 23 Free Cash Flow Walk $ in millions $ in millions 1. Net working capital includes accounts receivable, inventory, and accounts payable; Return on Working Capital is calculated by dividing trailing twelve month (TTM) Adjusted EB
Slide 15: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK GUIDING PRINCIPLES n Maintain strong balance sheet and OPERATING CASH FLOW FREE CASH FLOW financial stability n Long-term net leverage could increase to at or around 2.0x when INVEST IN THE STRATEGIC SHARE considering growth BUSINESS ACQUISITIONS REPURCHASES n Invest in
Slide 16: Q&A
Q&A BLUELINX 6
Slide 17: Appendix
Appendix BLUELINX ”
Slide 18: Macro Trends
MACRO TRENDS Total U.S. Single Family Housing Starts (SFHS) Housing starts in thousands(1) LIRA Remodeling Activity Index TTM Moving Total - Dollars in billions(2) Starts expected to be around 20-year average and well above 2009-2011 levels Remodeling spend expected to slow in 2024 20-year average 3
Slide 19: Wood-Based Commodity Price Trends
WOOD-BASED COMMODITY PRICE TRENDS Framing Lumber Composite Index $/mbf, Quarterly Average Price(1) As of December 2023 Average Q4 23 lumber prices declined 15% year- over-year and decreased 12% from Q3 23 Structural Panel Composite Index $/msf, Quarterly Average Price(1) As of December 2023 Average
Slide 20: Non-GAAP Measures and Supplemental Financial Information
Non-GAAP Measures and Supplemental Financial Information The Company 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 affe
Slide 21: Supplementary Financial Information
Supplementary Financial Information Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q4 2020 – Q42023 In millions where dollars are presented Quarter Ended December September June March December September June March Dec
Slide 22: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Adjusted EBITDA reconciliation by fiscal quarter, Q4 2020 – Q4 2023 In millions where dollars are presented Quarter Ended December 2023 December 2022 December 2021 December 2020 Net income (loss) $ (18) $ 32 $ 74 $ 20 Adjustments: Depreci
Slide 23: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Free cash flow for the three months ended Q4 2023, Q4 2022, Q4 2021, and Q4 2020 In millions where dollars are presented Three Months Ended December 2023 December 2022 December 2021 December 2020 Net cash provided by operating activities
Slide 24: Supplementary Financial Information
Supplementary Financial Information Working capital by fiscal quarter, Q4 2021 – Q4 2023 In millions where dollars are presented Period Ended December 2023 September 2023 June 2023 March 2023 December 2022 September 2022 June 2022 March 2022 December 2021 Current assets: Receivables, less allowance
Slide 25: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Net leverage ratio for the trailing twelve months ended Q4 2023 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented For the Trailing For the Trailing Twelve Month Twelve Month Period Period December 20
Slide 26: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Net leverage ratio for the trailing twelve months ended Q4 2022 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented For the Trailing For the Trailing Twelve Month Twelve Month Period Period December 20
Slide 27: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Net leverage ratio for the trailing twelve months ended Q4 2021 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented For the Trailing For the Trailing Twelve Month Twelve Month Period Period December 20
Slide 28: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Net leverage ratio for the trailing twelve months ended Q4 2020 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented For the Trailing For the Trailing Twelve Month Twelve Month Period Period December 20
Slide 29: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Adjusted Net Income and Adjusted Diluted Income per Share reconciliation for the three-month periods ended Q4 2023, Q4 2022, Q4 2021, and Q4 2020 In thousands where dollars are presented, except per share data Quarter Ended December Decem
Slide 30: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information The following table presents Net Debt, Net Debt excluding real property finance lease liabilities, Net Leverage Ratio, and Net Leverage Ratio excluding real property finance lease liabilities, for the fiscal year indicated: Fiscal Year En