Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q3 2023 Earnings Presentation
27 slides from Bluelinx's earnings presentation, Oct 31, 2023
Slide 1: BlueLinx Q3 2023 Results: Delivering What Matters
BlueLinx Q3 2023 Results Delivering What Matters November 1, 2023 © BlueLinx 2023. All Rights Reserved. 1 Exhibit 99.2
Slide 2: Forward-looking statements
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,” “anticipate,” “could”, “expe
Slide 3: Opening Remarks
Opening Remarks 3 Shyam Reddy President & CEO
Slide 4: BlueLinx: Delivering What Matters - Strategic Priorities
4 Grow Specialty Categories Engineered Wood Siding Industrial Products Millwork Outdoor Living Business Excellence Leverage our Scale/Nationwide Footprint Customer/Supplier Partnerships Pricing, Operational and Procurement Discipline Cost management Technology Enablement Capital
Slide 5: Third Quarter 2023 Results
Net sales of $810M, down 24% year-over-year Prior year included benefit from elevated demand and higher commodity prices Gross profit of $139M, down 26% year-over-year 17.2% of net sales 80% of gross profit from specialty products Gross margin of 17.2%, down 70 bps year-over-year 19.8%
Slide 6: Housing market conditions and sales by end market
Home affordability under pressure Mortgage rates remain at multi-year highs Home price appreciation Broad-based inflation New home starts down year-over-year Single-family housing starts are down year-over-year through the first nine months of 2023 September Builders’ confidence at 45;
Slide 7: Financial Review
Financial Review 7 Andy Wamser Chief Financial Officer
Slide 8: Third Quarter 2023 Results
Net Sales decreased 24% to $810M Specialty product sales down 23% Structural product sales down 25% Gross Margin of 17.2%, down 70 bps Adjusted Diluted EPS of $2.98 Adjusted EBITDA of $50M Adjusted EBITDA margin of 6.2% Free Cash Flow of $73M Cash Flow from Operations $78M Capita
Slide 9: Specialty Products Q3 2023 Results
($ millions) Net sales of $559M, down 23% Driven by both price and volume Specialty sales is 69% of total net sales Gross profit of $111M, down 27% Specialty gross profit 80% of total gross profit Gross margin of 19.8%, down 110 bps Highest level of the year Q3 Commentary 9 SPECIALTY P
Slide 10: Structural Products Q3 2023 Results
($ millions) Net sales of $251M, down 25% Lower year-over-year average pricing for commodities: 26% decrease in average price of lumber 5% decrease in average price of panels Lower volume Gross profit of $28M, down 25% Structural gross profit 20% of total gross profit Gross margin of
Slide 11: Balance Sheet
* $350 million revolver less $4 million of reserves and letters of credit; $346 million of net availability Note: see appendix for reconciliations to all non-GAAP measures At the end of Q3 2023: Net leverage at 0.5x Net debt at $107M Cash on hand of $470M Total available liquidity of $816M
Slide 12: Working Capital and Free Cash Flow
Q3 23 Free Cash Flow Walk $ in millions Operating Working Capital Management(1) $ in millions Note: See Appendix for reconciliations for all non-GAAP figures (1) Operating working capital includes accounts receivable, inventory, and accounts payable; Return on Working Capital is calculated by dividi
Slide 13: Capital Allocation Framework
INVEST IN THE BUSINESS STRATEGIC ACQUISITIONS SHARE REPURCHASES OPERATING CASH FLOW GUIDING PRINCIPLES Maintain strong balance sheet and financial stability Long-term net leverage could increase to at or around 3.0x when considering growth Invest in business through fluctuating economic cycles
Slide 14: Q&A
Q&A 14
Slide 15: Appendix
Appendix 15
Slide 16: Housing market forecasts
20-year average (1) Source: Historical data is U.S. Census Bureau; Forecast from John Burns Real Estate Consulting, LLC subject limitations and disclaimers – not for redistribution (2) Source: U.S. Census Bureau. The months' supply indicates how long the current for-sale inventory would last given t
Slide 17: Wood-Based Commodity Price Trends
Average Q3 23 lumber prices declined 26% year-over-year and increased 7% from Q2 23 (1) Source: Random Lengths, company analysis 17 WOOD-BASED COMMODITY PRICE TRENDS Average Q3 23 panel prices declined 5% year- over-year and increased 20% from Q2 23
Slide 18: Non-GAAP financial measures
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 affecting the business than using reported GAAP results alone
Slide 19: Net sales and gross profit by product category
Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q3 2020 – Q3 2023 In millions where dollars are presented 19 Non-GAAP Reconciliation / supplementary financial information
Slide 20: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation by fiscal quarter, Q3 2020 – Q3 2023 In millions where dollars are presented 20 Non-GAAP Reconciliation / supplementary financial information (1) Reflects costs related to our restructuring efforts, such as severance, net of other one-time non-operating items. For the
Slide 21: Free cash flow reconciliation
Free cash flow for the three months ended Q3 2023, Q3 2022, Q3 2021, and Q3 2020 In millions where dollars are presented 21 Non-GAAP Reconciliation / supplementary financial information
Slide 22: Working capital by fiscal quarter
Working capital by fiscal quarter, Q3 2021 – Q3 2023 In millions where dollars are presented 22 Non-GAAP Reconciliation / supplementary financial information
Slide 23: Net leverage ratio, Q3 2023
Net leverage ratio for the trailing twelve months ended Q3 2023 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 23 Non-GAAP Reconciliation / supplementary financial information
Slide 24: Net leverage ratio, Q3 2022
Net leverage ratio for the trailing twelve months ended Q3 2022 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 24 Non-GAAP Reconciliation / supplementary financial information
Slide 25: Net leverage ratio, Q3 2021
Net leverage ratio for the trailing twelve months ended Q3 2021 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 25 Non-GAAP Reconciliation / supplementary financial information
Slide 26: Net leverage ratio, Q3 2020
Net leverage ratio for the trailing twelve months ended Q3 2020 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 26 Non-GAAP Reconciliation / supplementary financial information
Slide 27: Adjusted Net Income and Adjusted Diluted EPS reconciliation
Adjusted Net Income and Adjusted Diluted Income per Share reconciliation for the three-month periods ended Q3 2023, Q3 2022, Q3 2021, and Q3 2020 In thousands where dollars are presented, except per share data 27 Non-GAAP Reconciliation / supplementary financial information (1) Tax impact calculated