Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q4 2005 Earnings Presentation
39 slides from Bluelinx's earnings presentation, Feb 15, 2006
Slide 1: Safe Harbor Statement and Use of Non-GAAP and Pro Forma Information
BlueLinx Holdings Inc. Safe Harbor Statement and Use of Non-GAAP and Pro Forma Information 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 statemen
Slide 2: Introduction – Steve Macadam, Chief Executive Officer
BlueLinx Holdings Inc. Introduction Steve Macadam Chief Executive Officer
Slide 3: Goals and Strategic Objectives
BlueLinx Holdings Inc. Introduction Goals and Strategic Objectives Profitably grow specialty revenues to 60+% of total sales Profitably grow structural while reducing exposure to volatility Outgrow the market
Slide 4: 4th Quarter Highlights
BlueLinx Holdings Inc. Introduction 4th Quarter Highlights Revenue increased 10% to $1.33 billion Gross margin at 10.6% v 8.4% in Q4 '04 Net income of $14.5 million, or $0.48 per share compared to a net loss of $(2.7) million, or $(0.09) per share Specialty unit volume grew 12.7% over same period la
Slide 5: Operations Review – George Judd
BlueLinx Holdings Inc. Operations Review George Judd President & Chief Operating Officer
Slide 6: Unit Volume Growth vs. End-Use Market Growth
BlueLinx Holdings Inc. Unit Volume Growth vs. End-Use Market Growth F2003 F2004 F2005 Estimated BlueLinx Unit Volume Growth 2.5% 8.2% 3.9% Estimated Weighted End-Use Market Growth 2.0% 4.5% 4.4% BlueLinx versus End-Use Market Growth 0.5% 3.7% (0.5%)
Slide 7: Unit Volume Growth by Quarter and TTM
BlueLinx Holdings Inc. Unit Volume Growth by Quarter and TTM 12.7% Specialty product growth driven by engineered lumber, insulation, and specialty lumber Specialty product growth includes 3.1 percentage point contribution from Lane Stanton Vance Lane Stanton Vance Lane Stanton Vance Lane Stanton Van
Slide 8: Quarterly Sales
BlueLinx Holdings Inc. Quarterly Sales Specialty unit volume growth large driver of sales increase Specialty sales represented 40.6% of total sales for the quarter verses 39.2% for the same period last year $ millions (unaudited) (unaudited) (unaudited)
Slide 9: Quarterly Gross Margin
BlueLinx Holdings Inc. Quarterly Gross Margin Specialty gross margin growth reflects robust unit volume growth and improved procurement and product management processes Structural gross margin improvement driven by successful inventory management execution in volatile pricing environment $ millions
Slide 10: Inventory Analysis
BlueLinx Holdings Inc. Inventory Analysis Year over year inventory and turn day reductions demonstrate improved inventory management efficiency Year over year 18% structural product reduction supports inventory alignment to grow specialty Structural inventory replenished in Q4 after prices return to
Slide 11: Other Key Indicators
BlueLinx Holdings Inc. Other Key Indicators 4th Quarter Working capital turn days at 37 v 45 same period last year Full year working capital turn days are 40 v 39 for 2004 Achieved Q4 reductions of 7% and 3% in delivery costs/ULE and material handling costs/ULE, respectively. (ULE or unit load equiv
Slide 12: Strategic Initiatives
BlueLinx Holdings Inc. Strategic Initiatives Continue gross margin improvement initiative by increasing mix of specialty and mitigating volatility of structural Invest in people and processes necessary to support specialty business growth Continue focus on targeted, growing accounts that serve attra
Slide 13: Financial Review – David Morris
BlueLinx Holdings Inc. Financial Review David Morris Chief Financial Officer & Treasurer
Slide 14: Pro Forma Quarterly Revenue Review
BlueLinx Holdings Inc. Pro Forma Quarterly Revenue Review $ millions (unaudited) * See pro forma reconciliation and related footnotes on pages 25 - 29 of this presentation. * See pro forma reconciliation and related footnotes on pages 25 - 29 of this presentation.
Slide 15: Pro Forma Quarterly Gross Profit
BlueLinx Holdings Inc. Pro Forma Quarterly Gross Profit $ millions (unaudited) * See pro forma reconciliation and related footnotes on pages 25 - 29 of this presentation. * See pro forma reconciliation and related footnotes on pages 25 - 29 of this presentation.
Slide 16: Pro Forma Quarterly Operating Income
BlueLinx Holdings Inc. Pro Forma Quarterly Operating Income $ millions (unaudited) * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation. * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation.
Slide 17: Pro Forma Quarterly Net Income
BlueLinx Holdings Inc. Pro Forma Quarterly Net Income $ millions (unaudited) * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation. * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation.
Slide 18: Pro Forma YTD Revenue Review
BlueLinx Holdings Inc. Pro Forma YTD Revenue Review $ millions (unaudited) * See pro forma reconciliation and related footnotes on pages 25 - 29 of this presentation. * See pro forma reconciliation and related footnotes on pages 25 - 29 of this presentation.
Slide 19: Pro Forma YTD Gross Profit
BlueLinx Holdings Inc. Pro Forma YTD Gross Profit $ millions (unaudited) * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation. * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation.
Slide 20: Pro Forma YTD Operating Income
BlueLinx Holdings Inc. Pro Forma YTD Operating Income $ millions (unaudited) * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation. * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation.
Slide 21: Pro Forma YTD Net Income
BlueLinx Holdings Inc. Pro Forma YTD Net Income $ millions (unaudited) * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation. * See pro forma reconciliation and related footnotes on pages 25- 29 of this presentation.
Slide 22: Unaudited Quarter End Balance Sheets
BlueLinx Holdings Inc. Unaudited Quarter End Balance Sheets $ millions $ millions
Slide 23: Unaudited Statement of Cash Flows
BlueLinx Holdings Inc. Unaudited Statement of Cash Flows $ millions * Certain amounts have been reclassified to conform with 2005 presentation. * Certain amounts have been reclassified to conform with 2005 presentation.
Slide 24: Unaudited Statement of Cash Flows
BlueLinx Holdings Inc. Unaudited Statement of Cash Flows $ millions * Certain amounts have been reclassified to conform with 2005 presentation. * Certain amounts have been reclassified to conform with 2005 presentation. 23
Slide 25: Pro Forma 4Q04 Reconciliation
BlueLinx Holdings Inc. Pro Forma 4Q04 Reconciliation $ thousands (unaudited) (unaudited) (unaudited)
Slide 26: Pro Forma 2004 Reconciliation
BlueLinx Holdings Inc. Pro Forma 2004 Reconciliation $ thousands (unaudited) (unaudited) (unaudited)
Slide 27: 2004 Quarterly Pro Forma
BlueLinx Holdings Inc. 2004 Quarterly Pro Forma $ thousands (unaudited) (unaudited) (unaudited)
Slide 28: Notes to Unaudited Pro Forma Statement of Operations
BlueLinx Holdings Inc. Notes to Unaudited Pro Forma Statement of Operations 1.) Reflects the elimination of the last-in first-out ("LIFO") expense / benefit recorded on the division's historical financial statements because of a change to the moving average cost method for inventories purchased from
Slide 29: Notes to Unaudited Pro Forma Statement of Operations
BlueLinx Holdings Inc. Notes to Unaudited Pro Forma Statement of Operations 6.) Reflects the income tax provision at our actual effective tax rate for the period from inception (March 8, 2004) to January 1, 2005 of 40.7%. 7.) Reflects preferred stock dividends at 10%. 8.) We used the net proceeds fr
Slide 30: Revenues by Quarter
BlueLinx Holdings Inc. Revenues by Quarter Revenues by Quarter Revenues by Quarter
Slide 31: Unit Volume Growth By Quarter
BlueLinx Holdings Inc. Unit Volume Growth By Quarter Unit Volume Growth By Quarter Unit Volume Growth By Quarter
Slide 32: Market Growth By Quarter
BlueLinx Holdings Inc. Market Growth By Quarter Market Growth By Quarter Market Growth By Quarter Source: Data from Resource Information Systems, Inc., or RISI, updated as of January 2006, weighed using managements estimates.
Slide 33: Inventory by Quarter
BlueLinx Holdings Inc. Inventory by Quarter Inventory by Quarter Inventory by Quarter
Slide 34: Quarterly Volume by Region
BlueLinx Holdings Inc. Quarterly Volume by Region *Miscellaneous consists of cash and competitive discounts, Canadian conversion, carve-out adjustments, service revenue and other miscellaneous items. $ millions (unaudited) (unaudited) (unaudited)
Slide 35: Annual Volume by Region
BlueLinx Holdings Inc. Annual Volume by Region *Miscellaneous consists of cash and competitive discounts, Canadian conversion, carve-out adjustments, service revenue and other miscellaneous items. $ millions (unaudited) (unaudited) (unaudited)
Slide 36: Gross Margin % Analysis
BlueLinx Holdings Inc. Gross Margin % Analysis Gross Margin % Analysis Gross Margin % Analysis
Slide 37: Revenue Channel Mix Analysis
BlueLinx Holdings Inc. Revenue Channel Mix Analysis Revenue Channel Mix Analysis Revenue Channel Mix Analysis
Slide 38: Structural Products Price Trends
BlueLinx Holdings Inc. Structural Products Price Trends Source: Data from Random Lengths Publications, Inc., updated as of February 10, 2006. Source: Data from Random Lengths Publications, Inc., updated as of February 10, 2006. Source: Data from Random Lengths Publications, Inc., updated as of Febru
Slide 39: Structural Products Price Trends
BlueLinx Holdings Inc. Structural Products Price Trends Source: Data from Random Lengths Publications, Inc., updated as of February 10, 2006