Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q2 2024 Earnings Presentation
25 slides from Bluelinx's earnings presentation, Jul 31, 2024
Slide 1: BlueLinx Q2 2024 Results
BlueLinx Q2 2024 Results Delivering What Matters July 31, 2024 © BlueLinx 2024. All Rights Reserved. 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain the words “believe,” “antic
Slide 3: Opening Remarks
Opening Remarks Shyam Reddy President & CEO 3
Slide 4: Strategic Priorities
STRATEGIC PRIORITIES “fy: BLUELINX DELIVERING WHAT MATTERS” Operational + Scale/Nationwide footprint Excellence + Cost management Business Excellence + Pricing, Procurement and Commercial + Engineered Wood, Siding, Industrial Core Business Products, Millwork, Outdoor Living Growth canon + Enhancing
Slide 5: Second Quarter 2024 Results
SECOND QUARTER 2024 RESULTS Explosive profitable growth with a highly engaged team ◼ Net sales of $768M, down 6% year-over-year ❑ Impacted by specialty deflation and challenging market conditions for structural ◼ Gross profit of $122M, down 10% year-over-year ❑ 85% of gross profit from specialty pro
Slide 6: U.S. Housing Industry
U.S. HOUSING INDUSTRY ◼ New home starts decelerating ❑ June single-family housing starts down 2% from May, lowest levels since October 2023 ❑ Builder's confidence was 42 in July, down 14 points from July 2023 and down slightly from June 2024 after improving earlier the year (1) ◼ Home affordability
Slide 7: Financial Review
Financial Review Andy Wamser Chief Financial Officer 7
Slide 8: Second Quarter 2024 Results: Q2 Commentary
SECOND QUARTER 2024 RESULTS Q2 Commentary $ in millions, except per share data Q2 Q2 Variance 2024 2023 ◼ Net Sales decreased 5.8% to $768M Net Sales $768 $816 (5.8)% ❑ Specialty product sales decreased 6% Gross Profit $122 $136 (9.8)% ❑ Structural product sales decreased 7% ◼ Gross Margin of 15.9%,
Slide 9: Specialty Products Q2 2024 Results
SPECIALTY PRODUCTS Q2 2024 RESULTS ($ millions) Q2 Commentary ◼ Net sales of $539M, down 6% ❑ Driven by impact of price deflation vs. prior year ❑ Specialty is approximately 70% of total net sales ◼ Gross profit of $104M, down 4% ❑ Specialty gross profit 85% of total gross profit ❑ Includes the bene
Slide 10: Structural Products Q2 2024 Results
STRUCTURAL PRODUCTS Q2 2024 RESULTS ($ millions) Q2 Commentary ◼ Net sales of $229M, down 7% ❑ Driven by lower lumber pricing, and lower lumber and panel volumes ❑ Year-over-year average market pricing for commodities was mixed: 6% decrease in average price of lumber 13% increase in average pric
Slide 11: Balance Sheet
BALANCE SHEET ($ millions) Gross Debt Structure Debt Maturity Schedule $300 * $350 million revolver less $4 million of reserves and letters of credit; $346 million of net availability Note: debt maturity schedule does not include finance lease obligations Net Leverage (non-GAAP)* ◼ At the end of Q2
Slide 12: Working Capital and Free Cash Flow
WORKING CAPITAL AND FREE CASH FLOW Net Working Capital Management(1) 2Q 2024 Free Cash Flow Walk $ in millions $ in millions 1. Net working capital includes accounts receivable, inventory, and accounts payable; Return on net working capital is calculated by dividing trailing twelve month (TTM) Adjus
Slide 13: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK GUIDING PRINCIPLES ◼ Maintain strong balance sheet and OPERATING CASH FLOW FREE CASH FLOW financial stability ◼ Long-term net leverage could increase to at or around 2.0x when INVEST IN THE STRATEGIC SHARE considering growth BUSINESS ACQUISITIONS REPURCHASES ◼ Invest in
Slide 14: Q&A
Q&A BLUELINX “
Slide 15: Appendix
Appendix BLUELINX
Slide 16: Macro Trends
MACRO TRENDS Total U.S. Single Family Housing Starts (SFHS) Housing starts in thousands(1) LIRA Remodeling Activity Index TTM Moving Total - Dollars in billions(2) Starts expected to be around 20-year average and well above 2009-2011 levels Remodeling spend expected to slow in 2024 20-year average 3
Slide 17: Wood-Based Commodity Price Trends
WOOD-BASED COMMODITY PRICE TRENDS Framing Lumber Composite Index $/mbf, Quarterly Average Price(1) As of June 2024 Average Q2 24 lumber prices declined 6% year- over-year and declined 5% from Q1 24 Structural Panel Composite Index $/msf, Quarterly Average Price(1) As of June 2024 Average Q2 24 panel
Slide 18: Non-GAAP Measures and Supplemental Financial Information
Non-GAAP Measures and Supplemental Financial Information The Company reports its financial results in accordance with GAAP. The Company also believes that presentation of certain non-GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affe
Slide 19: Supplemental Financial Information: Net Sales and Gross Profit by Category
Supplemental Financial Information Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q2 2022 – Q2 2024 In millions where dollars are presented Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 202
Slide 20: Non-GAAP Reconciliation: Adjusted Net Income and Diluted EPS
Non-GAAP Reconciliation Adjusted Net Income and Adjusted Diluted EPS reconciliation for fiscal quarters Q2 2022 - Q2 2024 In thousands where dollars are presented, except per share data Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net income (loss) $ 14,336
Slide 21: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation The following schedule reconciles Net cash provided by operating activities to Free cash flow (non-GAAP): In millions $ Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net cash provided by (used in) operating activities $ 36 $ (31) $ 76
Slide 22: Supplemental Financial Information: Net Working Capital
Supplemental Financial Information Net Working Capital by Fiscal Quarter Q2 2022 – Q2 2024 Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Current assets: Receivables, less allowance for doubtful accounts $ 274 $ 288 $ 228 $ 298 $ 294 $ 299 $ 252 $ 360 $ 423 In
Slide 23: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation Adjusted EBITDA reconciliation by fiscal quarter, Q2 2022 – Q2 2024 In millions where dollars are presented Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net income (loss) $ 14 $ 17 $ (18) $ 24 $ 24 $ 18 $ 32 $ 60 $ 71 Adjustments: Dep
Slide 24: Non-GAAP Reconciliation: Twelve-Month Trailing Adjusted EBITDA
Non-GAAP Reconciliation Twelve-Month Trailing Adjusted EBITDA reconciliation by Fiscal Quarter, Q2 2022 – Q2 2024 In millions $ Twelve-Month Trailing as of the End of Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net income $ 38 $ 48 $ 49 $ 99 $ 134 $ 181 $ 2
Slide 25: Non-GAAP Reconciliation: Net Debt and Net Leverage
Non-GAAP Reconciliation / Supplemental Financial Information The following schedule reconciles Total debt and finance leases to: Net debt (non-GAAP) and to Net debt excluding finance lease liabilities for real property (non-GAAP). The calculations of Net leverage ratio (non-GAAP) and Net leverage ra