Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — CIBC World Markets First Annual Industrial Products and Capital Goods Conference 2006
26 slides from Bluelinx's conference presentation, Jun 13, 2006
Slide 1: CIBC World Markets First Annual Industrial Products and Capital Goods Conference
CIBC World Markets First Annual Industrial Products and Capital Goods Conference June 14, 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 assumptions made by our management that
Slide 3: BlueLinx Investor Presentation Agenda
BlueLinx Investor Presentation CIBC World Markets - June 14, 2006 BlueLinx Overview Industry Dynamics Focused Growth Strategy 2006 Q1 Update Looking Forward Note: This presentation is comprised of information condensed from the BlueLinx June Investor Book, which contains additional information, incl
Slide 4: Overview: Operations
BlueLinx Overview: Operations Largest Building Products Distributor in U.S. 2005 Revenue: $5.6 Billion ~12,000 customers and 750+ suppliers Product portfolio 10,000+ SKUs 65+ warehouses; 80+ reloads Owned fleet of 900 trucks and 1,200 trailers 3,600 employees, including 1,000 sales NYSE: BXC Analyst
Slide 5: Overview: Evolution of BlueLinx
BlueLinx Overview: Evolution of BlueLinx Growth Strategy Decentralized structure 13 warehouses Outlet for GP Plywood Diversified building products distributor Centralized, nationwide distribution transition "Masters" of the supply chain Decentralized structure 134 warehouses 1954 - 1976 1977 - 1993
Slide 6: Overview: Positioned at the Center of Value Creation
BlueLinx Overview: Positioned at the Center of Value Creation Building Products Manufacturers BlueLinx Home Improvement Centers Dealers Repair and Remodeling Residential and Non- Residential Construction Manufactured Housing / Industrial Benefits to Manufacturers Reliable channels to market Consiste
Slide 7: Overview: Diversified Product, Customer & End Use Segments
BlueLinx Overview: Diversified Product, Customer & End Use Segments Structural 58% Paneling Roofing Hardwood plywood Insulation Metal fasteners Hardboard Flake & Particle board Specialty 42% Plywood OSB Lumber Rebar/Remesh New Home Construction 50% Industrial Applications 22% Manufactured Housing 8%
Slide 8: Overview: Diversified Product, Vendor Relationships
BlueLinx Overview: Diversified Product, Vendor Relationships Diversified Product, Vendor Relationships Diversified Product, Vendor Relationships Diversified Product, Vendor Relationships Diversified Product, Vendor Relationships Diversified Product, Vendor Relationships Diversified Product, Vendor R
Slide 9: Overview: Strategic Objectives
BlueLinx Overview: Strategic Objectives Profitably grow specialty revenues to 60+ % of total sales Profitably grow structural revenues while reducing exposure to volatility Outgrow the market over the long term Be the Masters of the Supply Chain for those products we choose to distribute
Slide 10: Overview: Experienced Leadership Team
BlueLinx Overview: Experienced Leadership Team Management Team Leadership Background Stephen Macadam CEO George Judd COO David Morris CFO Steve Skinner SVP Duane Goodwin SVP Dave Dalton SVP Sam Gaddis VP 6 Regional VPs RVP CEO Consolidated Container; EVP Georgia-Pacific; McKinsey & Co. VP Eastern op
Slide 11: Industry Dynamics
BlueLinx Investor Presentation CIBC World Markets - June 14, 2006 BlueLinx Overview Industry Dynamics Focused Growth Strategy 2006 Q1 Update Looking Forward
Slide 12: Growing & Attractive Industry: Solid Long-Term Industry Fundamentals
1991-2000 Avg 0.028 2001-2005 Avg -0.021 2006E-2015E Avg 0.023 Growing & Attractive Industry: Solid Long-Term Industry Fundamentals 1991-2000 Avg 1.4 2001-2005 Avg 1.8 2006E-2015E Avg 1.8 Annual Housing Starts (mm) Annual Unit Volume Growth In Other End-Use Markets 50% of Our End-Market 50% of Our E
Slide 13: Market Growth of Two-Step Distribution
Growing & Attractive Industry: Market Growth of Two-Step Distribution 2001 2002 2003 2004 Total Market Revenue 32.9 36.4 39.2 47.1 Source: Home Channel News, July 2005
Slide 14: Largest in a Highly Fragmented Industry, Ripe for Consolidation
BlueLinx 11.8 WY 11.1 Boise Cascade 6 North Pacific Group 4.2 Huttig 2 Other 64.6 Many Small and Medium Sized Players <$250m 100 $250m - $500m 13 $500m - $1bn 6 $1bn-$2.5bn 5 >$2.5bn 3 Number of Competitors By Revenue Growing & Attractive Industry: Largest in a Highly Fragmented Industry, Ripe for C
Slide 15: Focused Growth Strategy
BlueLinx Investor Presentation CIBC World Markets - June 14, 2006 BlueLinx Overview Industry Dynamics Focused Growth Strategy 2006 Q1 Update Looking Forward
Slide 16: Specialty Highlight - Introducing New Products
Focused Growth Strategy: Specialty Highlight - Introducing New Products Specialty Highlight - Introducing New Products Specialty Highlight - Introducing New Products Chosen in September by Louisiana-Pacific to nationally distribute its WeatherBest composite decking product All 1,000 BlueLinx sales e
Slide 17: Structural Products - Effective Inventory Management
Focused Growth Strategy: Structural Products - Effective Inventory Management Focus on improved profitability and reduced risk In 2005, reduced "high risk" structural inventory by $41 million, or 18% from 2004 Q1 structural inventory down 17% from year ago Increased utilization of consignment and pr
Slide 18: Outgrow the Market Over the Long Term
Focused Growth Strategy: Outgrow the Market Over the Long Term Market Share Growth* 2002 0.104 2003 0.109 2004 0.118 Unit Volume Growth vs. End-Use Market Year over Year Change Weighted End-Use Market Growth BlueLinx Growth 2003 0.02 0.025 2004 0.047 0.082 2005 0.044 0.039 Q1 '06(TTM) 0.041 0.043 *S
Slide 19: Evolving to Achieve Our Objectives
Focused Growth Strategy: Evolving to Achieve Our Objectives Commodities-focused, distribution arm of manufacturer Customer-focused, solutions-driven, value- added distribution partner 55%+ structural products FROM: TO: 60%+ specialty products Structural products- driven earnings volatility Specialty
Slide 20: 2006 Q1 Update
BlueLinx Investor Presentation CIBC World Markets - June 14, 2006 BlueLinx Overview Industry Dynamics Focused Growth Strategy 2006 Q1 Update Looking Forward
Slide 21: 2006 Q1 Update: Executing on Our Plan
2006 Q1 Update (Vs. Year Ago): Executing on Our Plan Revenue: Up 2% to $1.38 billion Specialty up 15.7% - Structural down 5.6% Unit Volume: Total Up 5% Specialty Up 14.9% - Structural down 0.8% Gross margin: Total 9.4% vs. 8.8% Specialty 13.9% - Structural 6.8% Inventory: Total $501 million, down 3%
Slide 22: 2006 Q1 Update: Accelerating Specialty Growth
2006 Q1 Update: Accelerating Specialty Growth Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 % of Total Revenue 0.37 0.36 0.39 0.41 0.42 % of GM 0.53 0.61 0.54 0.55 0.62 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Structural 0.042 0.064 9.0000000013148E-03 0.002 -0.008 Specialty 0.017 0.005 0.058 0.127 0.149 Q1 '05 Q2 '
Slide 23: Looking Forward
BlueLinx Investor Presentation CIBC World Markets - June 14, 2006 BlueLinx Overview Industry Dynamics Focused Growth Strategy 2006 Q1 Update Looking Forward
Slide 24: Looking Forward: 2006 Go-Forward Initiatives
Looking Forward: 2006 Go-Forward Initiatives Expand relationships with existing and new specialty product vendors who recognize the BlueLinx value proposition Continue and improve disciplined inventory management to help mitigate price volatility impact on structural products Target growing accounts
Slide 25: BXC Investment Considerations
BXC Investment Considerations: Largest independent building products distributor in highly fragmented industry ripe for consolidation Positioned at the center of the supply chain to create maximum value for both manufacturers and customers Diversified products, customers & end use segments Solid lon
Slide 26: Thank You
Thank You