Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q4 2017 Earnings Presentation
23 slides from Bluelinx's earnings presentation, Mar 1, 2018
Slide 1: Fourth Quarter 2017 Earnings Webcast
BlueLinx Fourth Quarter 2017 Earnings Webcast
Slide 2: Forward-looking statements
2 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, although believed by us to be reasonable, are inherently u
Slide 3: Non-GAAP measures
3 BlueLinx reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company also believes that presentation of certain non-GAAP measures may be useful to investors. Any non-GAAP measures used herein are reconciled to the financial t
Slide 4: Key Highlights
Key Highlights Fourth Quarter 2017 * Entered into new five year $335 million revolving credit facility in October 2017 * $75 million accordion feature * Successful Secondary Offering * Cerberus exits after 14 year investment * Enjoyed momentum in stock price since secondary offering * Subsequent to
Slide 5: Real Estate Valuation
Real Estate Valuation < 'e BlueLinx °e America’s Building Products Distributor + Property sales in January 2018 generated gross proceeds of $110 million, enabling the company to pay off the entire $98 million mortgage, well ahead of the maturity dates + Anationally known third-party real estate firm
Slide 6: Accelerating Market Demand Drivers Creates a Long Runway for Ongoing Value Creation
6 Accelerating Market Demand Drivers Creates a Long Runway for Ongoing Value Creation
Slide 7: Company initiatives: sales growth, margins, real estate and working capital
BlueLinx "' e BlueLinx Amei's Biting Prodet isrbutor Emphasize Sales Growth = Emphasize local | customer iran to grow market st = Develop and deploy best practices in selling processes = Prioritize underpenetrated markets and products = M Enhance Margins Emphasis on products and markets with high ma
Slide 8: Financial Overview
woe e BlueLinx “® Financial Overview
Slide 9: Executive Summary – Fourth Quarter 2017 Highlights
9 Executive Summary – Fourth Quarter 2017 Highlights • Net Sales of $433.6 million, up $12.0 million from Q4 2016 • Adjusted same-center net sales increased $14.7 million from Q4 2016 • Gross Profit of $55.5 million, up $3.1 million from Q4 2016 • Adjusted same-center gross profit increased $3.4 mil
Slide 10: Q4 Tax Overview
10 Q4 Tax Overview • On October 23, 2017, a change in control1 occurred as a result of Cerberus’ secondary offering • No impact to our financial statements as we anticipate utilizing all of our Federal Net Operating Losses (NOLs) of approximately $158 million as of Q4 2017 through future earnings an
Slide 11: Executive Summary – Full Year 2017 Highlights
11 Executive Summary – Full Year 2017 Highlights • Net Sales of $1.82 billion • Adjusted same-center net sales increased $63.7 million or 3.6% from the same period in 2016 • Gross Profit of $231.0 million • Adjusted same-center gross profit increased $11.2 million or 5.1% from the same period in 201
Slide 12: Net Sales and Adjusted Same-Center Net Sales
12 Net Sales and Adjusted Same-Center Net Sales • Same-center net sales increased during the quarter and YTD 2017 by $14.7 million or 3.5% and $63.7 million or 3.6%, respectively from the same period last year • Same-center sales increased during the fourth quarter, largely led by our structural pro
Slide 13: Historical Fourth Quarter and Full Year Gross Margin
13 Historical Fourth Quarter and Full Year Gross Margin • Gross margin for Q4 2017 increased 40 basis points from Q4 2016 • Structural margin of 9.1%, up 110 basis points • Specialty margin of 15.3%, up 30 basis points • Gross margin YTD increased 60 basis points from fiscal 2016 • Structural margin
Slide 14: Historical Net Income and Adjusted EBITDA Growth
14 Historical Net Income and Adjusted EBITDA Growth • Adjusted EBITDA continues to trend favorably due to Gross Margin growth, focus on variable contribution margin and operational efficiencies • 2017 Adjusted EBITDA grew $7.5 million or 20.6% over prior year • Net Income of $63 million was best ful
Slide 15: Appendix
BlueLinx °e Appendix
Slide 16: Remaining Net Operating Losses (NOLs)
16 Remaining Net Operating Losses1 (NOLs) • We continue to successfully execute on our delevering strategy and anticipate effectively utilizing our remaining NOLs • Real estate gains on property sales incurred in January 2018 will be sheltered by our existing NOLs; we anticipate this real estate gai
Slide 17: Remaining Deferred Tax Asset (DTA) Valuation Allowance
17 Remaining Deferred Tax Asset (DTA) Valuation Allowance • DTA valuation allowance was significantly reduced in 2017 due to the new tax reform and the release of our DTA valuation allowance • We will continue to evaluate the remaining deferred tax asset valuation allowance on a quarterly basis 1 De
Slide 18: Adjusted EBITDA
18 Adjusted EBITDA In thousands 2017 2016 2017 2016 Q4 Q4 YTD YTD Net income (loss) $ 53,486 $ 10,365 $ 62,994 $ 16,085 Adjustments: Depreciation and amortization 2,167 2,251 9,032 9,342 Interest expense 4,945 5,336 21,225 24,898 Provision for (benefit from) income taxes (54,241 ) 512 (53,409 ) 1,12
Slide 19: Adjusted EBITDA - Year Historical
19 Adjusted EBITDA - 5 Year Historical In thousands 2017 2016 2015 2014 2013 Net income (loss) $ 62,994 $ 16,085 $ (11,576 ) $ (13,872 ) $ (40,618 ) Adjustments: Depreciation and amortization 9,032 9,342 9,741 9,473 9,117 Interest expense 21,225 24,898 27,342 26,771 28,024 Provision for (benefit fro
Slide 20: Comparable Same-Center Schedule
20 Comparable Same-Center Schedule $ in thousands 2017 2016 2017 2016 Q4 Q4 YTD YTD Net sales $ 433,608 $ 421,657 $ 1,815,535 $ 1,881,043 Less: non-GAAP adjustments — 2,788 — 129,184 Adjusted same-center net sales $ 433,608 $ 418,869 $ 1,815,535 $ 1,751,859 Adjusted year-over-year percentage increas
Slide 21: Debt Principal
21 Debt Principal $ in thousands 2017 2016 Q4 Q4 Change Revolving credit facilities - principal $ 182,685 $ 176,183 $ 6,502 Mortgage - principal 97,847 126,823 (28,976 ) Total $ 280,532 $ 303,006 $ (22,474 )
Slide 22: Operating Working Capital
22 Operating Working Capital $ in thousands 2017 2016 Q4 Q4 Change Current assets: Cash $ 4,696 $ 5,540 $ (844 ) Receivables, less allowance for doubtful accounts 134,072 125,857 8,215 Inventories, net 187,512 191,287 (3,775 ) Other current assets 17,124 23,126 (6,002 ) Total current assets $ 343,40
Slide 23: o oe
o oe BlueLinx “e America’s te) Products Distributor sy [| Please reference our . Earnings Release and 10-K vi al available on our website www.BlueLinxCo.com