Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q3 2021 Earnings Presentation
24 slides from Bluelinx's earnings presentation, Nov 3, 2021
Slide 1: Third Quarter Results Conference Call
Third Quarter Results Divider slide Conference Call 29 September, 2020 November 3, 2021
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,”“ anti
Slide 3: Executive Summary: Market Update and Third Quarter 2021 Performance
Executive Summary Market Update and Third Quarter 2021 Performance Market Conditions Q3 2021 BlueLinx Performance $ Millions • Single-family residential housing remains strong. Q3 single- • Strong Cash Flow generation. Operating Cash Flow of $104M and family housing starts up year over year. Favorab
Slide 4: Single-Family Housing Demand
Single-Family Housing Demand Our business is correlated to single-family housing starts (SFHS) Total U.S. Single Family Housing Starts Total U.S. Monthly Single-Family Residential Home Supply Housing starts in thousands(1) Months of inventory(2) 2,000 • 2021 SFHS forecasted at 1.1 1,800 14 1,600 202
Slide 5: Residential Repair & Remodel Activity Remains Healthy
Residential Repair & Remodel Activity Remains Healthy Elevated Repair & Remodel activity continues Total Installed Base of U.S. Homes, Including U.S. Private Residential Construction Put-In-Place Renter and Owner-Occupied Homes (CPP) • Annual U.S. Homes Homes in millions(1) Dollars in millions(2) in
Slide 6: Wood-Based Commodity Price Trends
Wood-Based Commodity Price Trends Wood-based commodity markets experienced historic deflation in 3Q21; price increases in October Framing Lumber Composite Index As of October 2021(1) 1,600 Index Price TTM Avg. Index Price 1,400 • Prices for lumber and 1,200 Oct-21 framing lumber prices were 9% highe
Slide 7: Key Areas of Management Focus
Key Areas of Management Focus In early stages of transformation 1 2 3 4 Organic Margin Organizational Disciplined Sales Growth Expansion Efficiencies Capital Allocation • National account growth, • Focus on specialized, • Local sales execution • Maintain prudent, flexible utilizing extensive product
Slide 8: 3Q21 & TTM Key Performance Indicators
3Q21 & TTM Key Performance Indicators Double-digit net sales growth; Significant increase in TTM profitability Total Net Sales Total Gross Profit Dollars in millions Dollars in millions +47% $4,170 $709 +62% $2,845 $436 (4)% +11% $159 $153 $871 $971 3Q20 3Q21 3Q20 TTM 3Q21 TTM 3Q20 3Q21 3Q20 TTM 3Q2
Slide 9: 3Q21 & TTM Key Performance Indicators
3Q21 & TTM Key Performance Indicators Sharp decline in commodity prices impacted Q3 margins; significant TTM margin expansion Gross Margin SG&A Percentage of Net Sales Gross Profit / Net Sales SG&A / Net Sales 18.3% +170 bps (140) bps (260) bps 10.5% 9.2% (250) bps 17.0% 7.8% 7.9% 15.8% 15.3% 3Q20 3
Slide 10: Specialty Products and Structural Products Performance
Specialty Products and Structural Products Performance Specialty margin expansion year over year and mix shift towards specialty products ($ millions) Specialty Products Sales and Gross Margin Structural Products Sales and Gross Margin Specialty products include engineered wood, industrial products,
Slide 11: Effective Operating Working Capital Management
Effective Operating Working Capital Management Improvement in return on working capital year over year and sequentially • Significant return on working Disciplined Operating Working Days Sales of Inventory (DSI) capital, 68% for 3Q21 TTM Capital Management Number of Days Dollars in millions(1) 61 58
Slide 12: Significant Reduction In Bank Debt
Significant Reduction In Bank Debt Reduced bank debt by $98 million year over year, supported by strong free cash flow generation Excess Availability and Net Leverage Ratio (includes Bank Debt Reduction ABL Debt Outstanding • $100 million FCF TTM 3Q21, finance leases) Dollars in millions despite inf
Slide 13: New Debt Structure
New Debt Structure Continue to mature capital structure to support future growth and value creation Debt Structure $594 $577 $58 $500 ▪ Issued $300M senior notes at 6% $300 ▪ Bi-annual interest payments $300m Senior Notes @ 6% $263 $223 ▪ Mature in 2029 Term Loan ▪ Callable in 2024 Revolver (ABL) $2
Slide 14: Executive Summary
Divider 29 September, slide Executive Summary 2020
Slide 15: Executive Summary: Strong Q3 Highlights
Executive Summary Strong Q3 Highlighted by Growth in Specialty Products and Strong Cash Generation ($ millions) ▪ Sales grew 11% year-over-year to $971M ▪ Specialty product sales grew 29% year-over-year with gross margins at 23%, up 560 points ▪ Adjusted EBITDA of $79M, or 8.1% of sales ▪ Strong fre
Slide 16: Increasing Focus on ESG
Executive Summary 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 • We are involved in the Forest • Separate roles for Chairman and CEO Stew
Slide 17: Poised for Long-Term Value Creation
Executive Summary Poised for Long-Term Value Creation ▪ Leading U.S. Two-Step Building Products Distribution Platform ▪ Entrenched Value-Added Partner in Complex Supply Chain ▪ Diversified Product Suite with Balanced End Market and Regional Exposure ▪ Well-Positioned to Capitalize on Favorable, Long
Slide 18: Appendix
Divider 29 September, slide Appendix 2020
Slide 19: 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 20: Supplementary Information: SG&A Expense Bridge
Supplementary Information 3Q20 to 3Q21 SG&A Expense Bridge Dollars in Millions YTD 2020 to YTD 2021 SG&A Expense Bridge Dollars in Millions 19 -19-
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended September 2021 September 2020 Net income (loss) $ 47,198 $ 55,116 Adjustments: Depreciation and amortization 6,884 7,087 Interest expense, net 8,313 10,776 Term loan debt issuance costs (1) - - Provision for income taxes 16,232 15,802 Share-based compensation ex
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Trailing Twelve Months for the Quarter Ended September 2021 June 2021 March 2021 December 2020 September 2020 June 2020 March 2020 December 2019 September 2019 June 2019 March 2019 (In thousands) Net income (loss) $ 242,374 $ 250,292 $ 143,529 $ 80,882 $ 50,829 $ (11,330) $ (
Slide 23: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow for the Quarter Ended September 2021 June 2021 March 2021 December 2020 September 2020 June 2020 March 2020 December 2019 September 2019 June 2019 (In thousands) Net cash provided (used) by Operations(1) $ 104,258 $ 47,166 $ (24,565) $ (19,377) $ 61,495 $ 72,08
Slide 24: Non-GAAP Reconciliation: Net Debt and Net Leverage Ratio
Non-GAAP Reconciliation Net Debt and Net Leverage Ratio for the Trailing Twelve Months for the Quarter Ended September 2021 June 2021 March 2021 December 2020 September 2020 June 2020 March 2020 December 2019 September 2019 June 2019 March 2019 (In thousands) Current maturities of long-term debt, $