Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Investor Presentation (November 2017)
24 slides from Bluelinx's investor presentation, Nov 16, 2017
Slide 1: BlueLinx Investor Presentation
BlueLinx Investor Presentation November 16, 2017
Slide 2: Forward-looking statements
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, although believed by us to be reasonable, are inherently unc
Slide 3: Non-GAAP measures
BlueLinx reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company also believes that presentation of certain non-GAAP measures may be useful to investors. Any non-GAAP measures used herein are reconciled to the financial tab
Slide 4: Executive Management
Executive Management 4 Executive Time Period Role Mitchell B. Lewis, CEO, President and Director 2014 – Present 2008 – 2014 1998 - 2008 1992 – 1998 1987 – 1989 CEO, BlueLinx CEO, Euramax International SVP, EVP, COO Euramax International President, Amerimax Building Products Attor
Slide 5: BlueLinx Overview
BlueLinx Overview BlueLinx operates 39 warehouses across the central and eastern United States with approximately 1,600 employees Revenue generated from the sale of structural and specialty products Structural and specialty products are utilized in home construction The company offers over 1
Slide 6: Diversified Customer Base
Diversified Customer Base Industrial Manufacturers Makers of furniture, sheds, crates and other wood-based products Regional Dealers Contractors, builders, renovators and other end-users National Dealers Contractors, builders, renovators and other end-users Home Improvement Centers Retailers with na
Slide 7: Strong Revenue Base With Improving Margins
Strong Revenue Base With Improving Margins 1. Results are adjusted for the impact of the Company’s Operational Efficiency Initiatives 2. Four quarter average of Operating Working Capital (Current Assets – Current Liabilities + current portion of long-term debt) Improving Same Center1 financial resul
Slide 8: Investment Highlights
Investment Highlights OPPORTUNITY TO DE-LEVER THROUGH REAL ESTATE MONETIZATION 4 INDUSTRY CONSOLIDATION 2 LEVERAGING TECHNOLOGY TO ENHANCE MARGIN 3 ABILITY TO CAPITALIZE ON STRONG HOUSING MARKET MOMENTUM 1 8
Slide 9: Market Growth Potential
Market Growth Potential Source: United States Census Bureau Single Family Housing Starts Vs. Population Growth 0 500 1,000 1,500 2,000 0 50 100 150 200 250 300 350 1975 1980 1985 1990 1995 2000 2005 2010 2016 Total US Population SF Housing Starts U.S. Population (in millions) Single Family Housing S
Slide 10: Industry Consolidation
Ma n u factu re s Weyerhaeuser / Plum Creek Boise Cascade / Wood Products LLC Boise Cascade / Georgia Pacific EWP West Fraser / Gilman Canfor / Anthony Forest Products Norbord / Ainsworth Benefits of Consolidation BXC benefits from wholesale distribution consolidation in a number of ways
Slide 11: Well-Positioned to Reap Benefits of Technology Enhancements
Developed Internally Well-Positioned to Reap Benefits of Technology Enhancements (Since 2008) Investment Initiatives Corporate Enhancements Data Analysis Sales Optimization Profitability Analytics Replaced legacy routing tool with sophisticated onboard computers 3D modeling for structural design
Slide 12: BlueLinx Leverage with Sale Leasebacks
BlueLinx Leverage with Sale Leasebacks 7.9x 6.1x 2.3x 1 Assumes a 9% cap rate on sale leasebacks and 50% rent expense/50% mortgage interest Leverage Sensitivity Analysis Illustrative Sale Leaseback Sensitivity With $98M SLB With $250M SLB Credit Facility 218$ 218$ 66$ CMBS Mortgage Loan Balance 98 0
Slide 13: Key Initiatives
Key Initiatives The Company’s initiatives seek to solidify its place as a market leader Emphasize Sales Growth Emphasize local customer interaction to grow market share Develop and deploy best practices in selling processes Prioritize underpenetrated markets and products 1 Closely Manage Real
Slide 14: Strong Collateral Base
Strong Collateral Base BlueLinx’s real estate and working capital are substantially greater than its bank debt The Company has high-quality ABL collateral, significantly exceeding the total net ABL debt o Inventory with quick turnover and low obsolescence o Relatively low bad debt expense over the
Slide 15: Successful Reduction of Working Capital
$335 $291 $255 6.7% 12.0% 15.6% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% $0 $50 $100 $150 $200 $250 $300 $350 $400 Q3 '15 Q3 '16 Q3 '17 Operating Working Capital ROWC Q3 Return on Working Capital Trend Return on Working Capital: TTM Adjusted EBITDA / TTM Average Operating Working Capital Ope
Slide 16: Conclusion
Real estate monetization has generated proceeds that provided opportunities to continue to delever 4 Continued consolidation in the market likely to provide near-term opportunities for market-share capture 3 Strategically positioned professionals to capitalize on positive momentum in single family h
Slide 17: Appendix
BlueLinx Appendix
Slide 18: Statements of Income
Statements of Income In thousands, except per share data (unaudited) 2017 2016 2017 2016 Q3 Q3 Q3 YTD Q3 YTD Net sales $ 479,318 $ 476,049 $ 1,381,927 $ 1,459,386 Cost of sales 418,773 415,999 1,206,402 1,284,354 Gross profit 60,545 60,050 175,525 175,032 Operating expenses (income): Selling, genera
Slide 19: Balance Sheets
Balance Sheets In thousands, except share data (unaudited) September 30, 2017 December 31, 2016 Assets: Current assets: Cash $ 5,590 $ 5,540 Receivables, less allowances of $2,738 and $2,733, respectively 173,748 125,857 Inventories, net 206,788 191,287 Other current assets 21,063 23,126 Total curre
Slide 20: Annual Adjusted EBITDA
Annual Adjusted EBITDA 20 2017 2016 2016 2015 2015 Sep TTM FY Sep TTM FY Sep TTM Net income (loss) $ 19,873 $ 16,085 $ (343) $(11,576) $ (13,154) Adjustments: Depreciation and amortization 9,116 9,342 9,677 9,741 9,452 Interest expense 21,616 24,898 26,546 27,342 27,039 Provision for (benefit from)
Slide 21: Comparable Same-Center Schedule
Comparable Same-Center Schedule 21 2017 2016 2017 2016 2017 2016 2016 2015 Q3 Q3 Q3 YTD Q3 YTD Sep TTM Sep TTM FY FY Net sales $479.3 $476.0 $1,381.9 $1,459.4 $1,803.6 $1,887.5 $1,881.0 $1,916.6 Less: non-GAAP adjustments $ - $ 12.0 $ - $ 124.9 $ 2.8 $ 181.9 $ 129.2 $ 272.5 Adjusted same-center net
Slide 22: Debt Principal
Debt Principal $ in thousands 2017 2016 Q3 Q3 Change Revolving credit facilities - principal $ 217,708 $ 223,157 $ (5,449 ) Mortgage - principal 97,847 142,159 (44,312 ) Total $ 315,555 $ 365,316 $ (49,761 ) 22
Slide 23: Operating Working Capital
Operating Working Capital $ in thousands 2017 2016 Q3 Q3 Change Current assets: Cash $ 5,590 $ 4,704 $ 886 Receivables, less allowance for doubtful accounts 173,748 163,388 10,360 Inventories, net 206,788 207,909 (1,121 ) Other current assets 21,063 25,176 (4,113 ) Total current assets $ 407,189 $ 4
Slide 24: Earnings Release and 10-Q available on website
Please reference our Earnings Release and 10-Q available on our website www.BlueLinxCo.com
BlueLinx Holdings — Investor Presentation (November 2017) on 6ix