Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Investor Presentation (September 2018)
21 slides from Bluelinx's investor presentation, Sep 27, 2018
Slide 1: BlueLinx Investor Presentation September 2018
BlueLinx Investor Presentation September 2018
Slide 2: Note to Investors: Forward-Looking Statements
Note 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: 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 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: BlueLinx Overview
BlueLinx Overview A leading wholesale two-step U.S. distributor of building and industrial products Key Statistics ▪ Completed transformative acquisition of 1 2004 Spin-off Date Cedar Creek in April 2018 Atlanta, GA Headquarters ▪ Revenue generated from the sale of Market-cap2 ~$345M structural 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 Integral channel partner for suppliers and customers Manufacturers Two-Step One-Step Distributors/ End Market Distributors Retailers Consumers Building Products Local Lumberyards, Pro Manufacturers Dealers & Specialty Distributors Homebuilders Whol
Slide 8: Diversified Customer Base
Diversified Customer Base BlueLinx has an extensive roster of high-quality national and regional customers Dealers Home Improvement Industrial Manufactured Centers Manufacturers Housing Contractors, builders, renovators and Retailers with national Producers of furniture, Producers of mobile other en
Slide 9: 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 SPENDI
Slide 10: 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 11: A Complementary Combination Poised for Growth
A Complementary Combination Poised for Growth Market leader with strong breadth of product and service offerings BlueLinx Cedar Creek ▪ Headquarters: Atlanta, GA ▪ Headquarters: Oklahoma City, OK ▪ 2017 sales: $1.8B ▪ 2017 sales: $1.4B COMBINED FOOTPRINT1 ▪ 38 locations ▪ 30 locations: ▪ 11 wood man
Slide 12: Significant Acquisition Synergies from Cedar Creek
Significant Acquisition Synergies from Cedar Creek ▪ Costs to achieve synergies estimated $25-40M, down from $40-55M originally ▪ Up to $25M of potential gross proceeds on sale of owned real estate in overlap markets EXPECTED YEAR-END RUN-RATE SYNERGIES ($M) OPPORTUNITIES $50+ $48 ~20% ▪ General & E
Slide 13: Highly Attractive Combined Profile
Highly Attractive Combined Profile1 Significant cost savings opportunities to improve EBITDA margin REVENUE NET INCOME ADJ EBITDA & MARGIN2 1.3% 1.9% 4.8% $3.2B $154M $137M Expected Run-rate Expected Cost Pre-tax Savings Run-rate ~$50M $1.9B $1.9B Cost Savings ~$50M $36M $25M $16M $(12M) BXC BXC Pro
Slide 14: Strong Cash Flow Generation Supports Deleveraging
Strong Cash Flow Generation Supports Deleveraging Combined company is expected to generate significant cost savings with strong working capital and real estate to provide asset coverage and ability to quickly de-lever Leverage ENHANCED LEVERAGE PROFILE ▪ Pro forma funded debt of ~$580M at close1 ▪ ~
Slide 15: Strategic Initiatives
Strategic Initiatives Successful Integration Emphasize Sales Enhance of Cedar Creek Growth Margins ▪ $3B of addressable spend ▪ Increase local customer ▪ Emphasis on products and for cost savings interaction to grow market markets with higher margin opportunities share profiles ▪ Identifiable and ac
Slide 16: Investment Summary
Investment Summary 1 Ability to capitalize on strong 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 16
Slide 17: Appendix
Bluetinx/AS America’s Building Products Distributor Appendix
Slide 18: Non-GAAP And Supplementary Financial Measures
Non-GAAP And Supplementary Financial Measures BlueLinx reports its financial results in accordance with GAAP, but we also believe that presentation of certain non-GAAP measures, as well as GAAP-based and non-GAAP supplemental financial measures, may be useful to investors and may provide a more comp
Slide 19: Reconciliation of GAAP to Adjusted Measures
Reconciliation of GAAP to Adjusted Measures 2017 Adjusted EBITDA Reconciliation BlueLinx Cedar Creek Combined Net income (loss) $63 $24 $87 Adjustments: Depreciation and amortization 9 14 23 Interest expense 21 10 31 Provision for (benefit from) income taxes (53) 8 (45) Other 4 4 8 Adjusted EBITDA $
Slide 20: Reconciliation of GAAP to Adjusted Measures
Reconciliation of GAAP to Adjusted Measures Legacy BlueLinx Adjusted EBITDA Reconciliation FY15 FY16 Net income (loss) ($12) $16 Adjustments: Depreciation and amortization 10 9 Interest expense 27 25 Provision for (benefit from) income taxes - 1 Gains from sales of property - (28) Other - 13 Adjuste
Slide 21: Financial Information and SEC Filings on our website
Please reference our Financial Information and SEC Filings available on our website www.BlueLinxCo.com
BlueLinx Holdings — Investor Presentation (September 2018) on 6ix