Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Investor Presentation (December 2005)
23 slides from Bluelinx's investor presentation, Dec 12, 2005
Slide 1: BlueLinx
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 December 2005
BlueLinx Investor Presentation December 2005 BlueLinx at a Glance 4 Investment Highlights 10 2005 Update 26 Appendix 33
Slide 4: BlueLinx At A Glance: Overview
BlueLinx At A Glance: Overview « Sales Center Warehouse LSV « « 2004 revenue: $5.6 billion 11,700+ customers and 750+ suppliers Product portfolio 10,000+ SKUs 65+ warehouses, owned fleet of 900 trucks and 1,200 trailers 3,600 employees, including 1,000 sales NYSE: BXC 5 analysts Market capitalizatio
Slide 5: BlueLinx At A Glance: Positioned at the Center of Value Creation
BlueLinx At A Glance: 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 Consi
Slide 6: BlueLinx At A Glance: Diversified Product, Customer & End Use Segments
BlueLinx At A Glance: Diversified Product, Customer & End Use Segments Structural 55% Hardwood plywood Engineered lumber Metal products Vinyl siding Moulding Insulation Roofing Specialty 45% Plywood OSB Lumber New Home Construction 50% Industrial Applications 22% Manufactured Housing 8% Repair & Rem
Slide 7: BlueLinx At A Glance: How We Think About Our Business
BlueLinx At A Glance: How We Think About Our Business 2006 End-Use Demand (RISI+ VIEW) Housing starts 1.8-1.9 million, down 10% YOY Manufactured housing emerging from recession - up 22% Industrial production forecast to increase 3% Pricing Trends (RISI VIEW) Structural product price trend expectatio
Slide 8: BlueLinx At A Glance: Capital Structure Position
BlueLinx At A Glance: Capital Structure Position BXC Leverage -- Current State BXC Leverage -- Current State All low-cost asset-based borrowing Creates low WACC Liquidity balanced to working capital needs Liquidity balanced to working capital needs Liquidity balanced to working capital needs Key Met
Slide 9: Investment Highlights
Investment Highlights Leading U.S. building products distributor with unique centralized and scaleable platform Growing $47bn industry with attractive long-term fundamentals Experienced operating team aligned with creating shareholder value Pursuing focused growth strategy
Slide 10: Leading Building Products Distributor: Only Nationwide, Independent Distributor
Leading Building Products Distributor: Only Nationwide, Independent Distributor BlueLinx 5558 Weyerhaeuser 5220 Boise Cascade 2844 No Other Player > $2.0bn Independent Distributor Centralized Platform Integrated with manufacturer Decentralized Integrated with manufacturer Decentralized 2004 Industry
Slide 11: Leading Building Products Distributor: Unique, Centralized Platform for Growth
Leading Building Products Distributor: Unique, Centralized Platform for Growth Function BlueLinx Competition Business Management Inside Sales Procurement Outside Sales Information Systems Centralized Centralized, but organized by market and product Centralized by product In market, reporting to busi
Slide 12: Leading Building Products Distributor: Competitive Advantages of Centralization
Leading Building Products Distributor: Competitive Advantages of Centralization Strategic coordination of management actions and initiatives Rapid tactical implementation Decision-oriented information systems Procurement scale Process efficiencies and economies of scale Consistent communication / un
Slide 13: Investment Highlights
Largest U.S. building products distributor with unique centralized and scaleable platform Growing $47bn industry with attractive long-term fundamentals Experienced operating team aligned with creating shareholder value Pursuing focused growth strategy Investment Highlights
Slide 14: Growing & Attractive Industry: 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 15: Growing & Attractive Industry: Solid Long-Term Industry Fundamentals
1990-1999 Avg 0.034 2000-2003 Avg -0.043 2004E-2013E Avg 0.031 Growing & Attractive Industry: Solid Long-Term Industry Fundamentals 1990-1999 Avg 1.37 2000-2003 Avg 1.68 2004E-2013E Avg 2 Annual Housing Starts (mm) Annual Growth In Other End-Use Markets 50% of Our End-Market 50% of Our End-Market In
Slide 16: Growing & Attractive Industry: Largest in a Highly Fragmented Industry
BlueLinx 11.8 WY 11.1 Boise Cascade 6 North Pacific Group 4.2 Other 66.9 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 Consolidat
Slide 17: Investment Highlights
Largest U.S. building products distributor with unique centralized and scaleable platform Growing $47bn industry with attractive long-term fundamentals Experienced operating team aligned with creating shareholder value Pursuing focused growth strategy Investment Highlights
Slide 18: Experienced Leadership Team
Experienced Leadership Team Deep industry experience Commodity and specialty products buyers Inventory management Sales team Information technology 3,600 employees with low turnover Comprehensive training initiatives Unified culture Stock option plan Operating Team Excellence Motivated Employees Sen
Slide 19: Investment Highlights
Largest U.S. building products distributor with unique centralized and scaleable platform Growing $47bn industry with attractive long-term fundamentals Experienced operating team aligned with creating shareholder value Pursuing focused growth strategy Investment Highlights
Slide 20: Focused Growth Strategy: BXC's Growth Enabling Strategic Shift Continues
Focused Growth Strategy: BXC's Growth Enabling Strategic Shift Continues Distribution arm of manufacturer Solutions-based, value-added distribution partner 55%+ structural products FROM: TO: 60%+ specialty products Structural products-driven earnings volatility Specialty products-driven stable earni
Slide 21: Focused Growth Strategy: BXC Strategic Framework
Focused Growth Strategy: BXC Strategic Framework Mission: "Be the Masters of the Supply Chain in those products we choose to distribute." Value Proposition: Provide the lowest total cost of sales and distribution through the supply chain Drive end-user demand, thereby increasing sales for our custom
Slide 22: Focused Growth Strategy: Growing Faster Than the Market
Focused Growth Strategy: Growing Faster Than the Market Market Share Growth 2002 0.104 2003 0.109 2004 0.118 Unit Volume Growth vs. Industry Year over Year Change Industry Growth BlueLinx Organic Growth 2003 0.02 0.025 2004 0.047 0.082 2005 Q3 TTM 0.033 0.045
Slide 23: Focused Growth Strategy: Initiatives to Leverage Our Scaleable Platform
Focused Growth Strategy: Initiatives to Leverage Our Scaleable Platform to Drive Superior Returns Market Share Growth Goals Growth Drivers & Accelerators Increase penetration of selected high return customers Grow share in under- represented segments (e.g. industrial) Expand product portfolio and ve
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