Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Investor Presentation (March 2019)
18 slides from Bluelinx's investor presentation, Mar 27, 2019
Slide 1: BlueLinx Investor Presentation March 2019
BlueLinx Investor Presentation March 2019
Slide 2: Notes To Investors: Forward-Looking Statements
Notes To Investors Forward-Looking Statements. This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply
Slide 3: BlueLinx Overview
BlueLinx Overview A leading wholesale two-step U.S. distributor ¹ of building and industrial products • Completed transformative acquisition of Cedar Creek in April 2018 • Revenue generated from the sale of structural and specialty products • Utilized primarily in new home construction, residential
Slide 4: Executive Management
Executive Management Highly experienced executive team with proven leadership in the building products industry Executive Years Experience Past Experience Mitchell B. Lewis 30+ CEO, President & Director CEO President Attorney Susan C. O’Farrell 30+ CFO & Treasurer VP, Finance Director Assoc. Partner
Slide 5: Compelling Investment Thesis
Compelling Investment Thesis Industry leader with opportunity to continue transformative profitable growth Strong Foundation for Success ✓ A leading two-step building products distributor with a strong geographic presence East of the Rockies with over 700 sales associates ✓ Comprehensive product and
Slide 6: Comprehensive Product and Service Offering
Comprehensive Product and Service Offering Our product suite provides a “one-stop” shopping experience for customers PRODUCT DETAIL VALUE-ADDED SERVICES & PROCESSES • Combination of structural and specialty products are • Over 700 customer facing sales personnel utilized in new home construction, re
Slide 7: Wholesale Distributors Critical to the Supply Chain
Wholesale Distributors Critical to the Supply Chain Building Products Wholesale Distributor Local Lumberyards End Market Manufacturers Pro Dealers Consumer “Big Box” Retailers Homebuilders • Key path to market for most of the lumber building products industry Contractors • Fill the necessary step be
Slide 8: Improving Market Demand Drivers
Improving Market Demand Drivers Single family housing starts remain ~20% below historical average annual levels • Leading economic indicators are favorable for building products and its distribution • BlueLinx is well-positioned to grow market share RESIDENTIAL CONSTRUCTION REPAIR & REMODELING SPEND
Slide 9: Two Industry Leaders Merge
Two Industry Leaders Merge 1954 May 2004 Dec 2004 2014 2017 Formed as a Cerberus Initial Public New senior After 13 year division of Georgia- purchased Offering executive team put investment, Pacific BlueLinx from G-P in place Cerberus conducts secondary offering of its shares April 2018 Completed t
Slide 10: Significant Acquisition Synergies from Cedar Creek
Significant Acquisition Synergies from Cedar Creek • 2018 exit annual run-rate synergies exceeded $30M • $15M ahead of original forecast • Estimated costs to achieve synergies narrowed to be $25-$30M, down from original estimate of $40-$55M • Consolidated 11 overlap facilities; converted 46 of 62 lo
Slide 11: Strong Deleveraging Potential
Strong Deleveraging Potential $ in millions Post Integration Estimated Annual Uses of Cash (Assumes no Real Estate Sales) ~$120+ Unrealized ~($20) Run-rate Synergies ~($16) ~($22) ~($5) ~($2) ~($4) ~$50+ Adj. EBITDA ABL Term Loan Capital Lease CapEx3 Cash Taxes3,5 Other 3,6 Cash Estimate1 Interest2
Slide 12: Leverage Expected to Decline
Leverage Expected to Decline $ in millions $ Amount Leverage Ratio Term Loan balance as of Q4 ’18 $179 1.5x Revolving Credit Facility balance as of Q4 ’18 (ABL) $333 2.8x Appraised Real Estate Value ($150 - $160) $150 Term loan permits - Up to $50 in sale leasebacks in 2019 - Sale of certain owned r
Slide 13: Valuable Assets Benefitting Cash
Valuable Assets Benefitting Cash $ in millions REAL ESTATE NOLs1 $159 $68 $150 - $160 4x Book Value $91 $37 - $40 Book Value Appraised Value Remaining NOLs NOLs used Remaining NOLs FY 2017 FY 2018 FY 2018 • Term loan permits up to $50 in sale leasebacks in • Anticipated sale of real estate and assoc
Slide 14: Strategic Initiatives
Strategic Initiatives Successful Integration Emphasize Sales Enhance of Cedar Creek Growth Margins • $3B of addressable spend • Increase local customer • Emphasis on products for cost savings interaction to grow market and markets with higher opportunities share margin profiles • Identifiable and •
Slide 15: Investment Summary
Investment Summary 1 Ability to capitalize on U.S. housing market momentum Synergies from Cedar Creek acquisition expected to be at 2 least $50M annually 3 Recognized leader in a consolidating industry Financial flexibility to support profitable growth and 4 deleveraging plan 15
Slide 16: Appendix
Bluetinx AS America’s Building Products Distributor Appendix
Slide 17: Non-GAAP Measures
Non-GAAP Measures BlueLinx reports its financial results in accordance with GAAP, but we also believe 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 GAAP res
Slide 18: Pro forma Adjusted EBITDA
Pro forma Adjusted EBITDA (In millions) (Unaudited) Net (loss) income Adjustments: Depreciation and amortization Interest expense Provision for (Benefit from) income taxes Amortization of deferred gain Share-based compensation expense Multi-employer pension withdrawal Restructuring, severance, and l
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