Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q3 2012 Earnings Presentation
25 slides from Bluelinx's earnings presentation, Nov 1, 2012
Slide 1: BlueLinx Quarterly Review 3rd Quarter 2012
BlueLinx Quarterly Review 3rd Quarter 2012
Slide 2: Forward-Looking Statement and Non-GAAP Information
2 BlueLinxHoldings Inc. 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 statements are based on estimates and assumptions made by our management th
Slide 3: Opening Remarks
3 George Judd Chief Executive Officer Opening Remarks
Slide 4: 3rd Quarter Highlights
4 Up 5.1% to $496.8 million▪ Revenue Average 3Q ’12 benchmark wood-based structural prices were up approximately 36% compared to 3Q ’11 ▪ Prices $3.1 million vs. ($6.2) million in 3Q ’11▪ Net Profit /(Loss) Generated $23.4 million of operating cash flow vs. $17.4 millionfor the year ago quarter ▪ Ca
Slide 5: Quarterly Review
5 Doug Goforth Chief Financial Officer and Treasurer Quarterly Review
Slide 6: Quarterly Revenue
6 Quarterly Revenue Revenues ($ in millions) 236.4 268.1 307.9 186.6 164.9 182.9 215.7 211.4 288.9291.1 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 $453.7 $517.0 $496.8 $472.9 $391.1 Variance Analysis ($3.1) ($6.2) $33.2 Specialty Unit Volume (1.0%) YOY $23.9 or 5.1% Structural Unit Volume (3.3%) Price/Other
Slide 7: 2012 YTD Results
7 2012 YTD Results Revenues ($ in millions) $1,364.3 $1,467.5 YTD '11 YTD '12 Operating Expenses ($ in millions) $167.9 $167.9 YTD '11 YTD '12 Gross Margin % 11.9% 12.1% YTD '11 YTD '12 Net Income ($ in million) ($11.7) ($28.3) YTD '11 YTD '12 $0.7 - $0.7 Other ($2.8) $9.7 $6.9 Gain on real estate $
Slide 8: YTD 2012 Adjusted EBITDA Improvement
8 YTD 2012 Adjusted EBITDA Improvement $0.7 - $(0.7) Other Variance YTD ‘12 YTD ‘11 $14.7 $16.6 $1.9 EBITDA $(2.8) $(9.7) $(6.9) Gain on real estate $0.7 $(0.5) $(1.2) Gain on insurance settlement $6.4 $(6.9) Significant Special Items: $13.3 Total Operating EBITDA $13.3 MILLION IMPROVEMENT in YTD EB
Slide 9: Cash Flows
9 Cash Flows BXC generated $23.4 million in operating cash flow for the quarter Unaudited (in million’s) Q311 Q411 Q112 Q212 Q312 TTM 2012 TTM 2011 Cash flows from operating activities: Net loss (6.2)$ (10.4)$ (11.0)$ (3.7)$ 3.1$ (21.9)$ (48.6)$ Adjustments to reconcile net loss to net cash provided
Slide 10: Debt
10 Debt U.S. Revolver ▪ $110.3 million excess availability as of September 29, 2012 ▪ LIBOR plus 3.75% as of September 29, 2012 ▪ $400 million facility with additional $100 million uncommitted accordion facility – Matures January 7, 2014 – No financial performance covenants provided Excess Availabil
Slide 11: Cash Cycle
11 Cash Cycle TTM Cash Cycle days at 59, flat sequentially and up 1 day compared to the prior year quarter Cash Cycle Days (in days) 49 48 49 49 49 (27) (26) (28) (27) (26) 36 34 36 37 36 -40 -20 0 20 40 60 80 100 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 59 58 57 59 56 Cash cycle days equal accounts recei
Slide 12: Business Review
12 George Judd Chief Executive Officer Business Review
Slide 13: Remarks
13 Remarks 3 rd Quarter focus – Gross margin – Operating expense – Customer care Long term strategic objectives: – Profitably grow specialty revenues to 60+%of total sales – Profitably manage structural – Profitably outgrow the market over the long term
Slide 14: Appendix
14 Appendix 17Channel Mix Analysis 23Reconciliation of GAAP Debt to Non-GAAP Net Debt 19Gross Margin by Quarter 24Reconciliation of GAAP Net cash used in operating activities to Non-GAAP EBITDA 16Revenues by Quarter 22Structural Product Price Trends 20Gross Margin % Analysis 21Operating Expense by Q
Slide 15: Profit & Loss Statement by Quarter
15 Profit & Loss Statement by Quarter Profit & Loss Statement $ in millions (1) , except per share amounts 2010 2011 2012 TTM Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Sales $ 367.9 $ 390.6 $ 500.8 $ 472.9 $ 391.1 $ 453.7 $ 517.0 $ 496.8 $ 1,804.4 $ 1,755.4 $ 1,858.6 Cost of Goods Sold 323.6 344.3 443.2 414.6 343.2 3
Slide 16: Revenues by Quarter
16 Revenues by Quarter Sales $ in millions 2010 2011 2012 TTM Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Specialty $ 216.8 $ 230.7 $ 309.9 $ 291.1 $ 236.4 $ 268.1 $ 307.9 $ 288.9 $ 985.4 $ 1,068.2 $ 1,101.3 Structural 154.2 160.8 192.6 186.6 164.9 182.9 215.7 211.4 834.8 704.9 774.9 Other (1) (3.1) (0.9) (1.7) (4.8) (
Slide 17: Revenue Channel Mix Analysis
17 Revenue Channel Mix Analysis 3Q11 4Q11 1Q12 2Q12 3Q12 3Q12 Variance from Year Ago Qtr Structural Products Warehouse 68.4% 70.5% 71.9% 71.8% 73.2% 4.8% Direct 19.8% 19.2% 18.6% 17.1% 17.6% (2.2%) Reload 11.8% 10.3% 9.5% 11.1% 9.2% (2.6%) Total 100.0% 100.0% 100.0% 100.0% 100.0% 0.0% Specialty Prod
Slide 18: Unit Volume by Quarter
18 Unit Volume by Quarter 2010 2011 2012 TTM Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Specialty 5.9% (0.2%) 10.7% 11.4% 6.6% 12.4% (2.3%) (1.0%) 5.7% 7.4% 3.1% Structural (16.5%) (25.2%) (18.8%) (14.0%) 2.8% 9.4% 0.4% (3.3%) (2.5%) (15.1%) 2.2% Total (4.3%) (11.8%) (3.5%) 0.1% 5.0% 11.2% (1.3%) (1.9%) 2.2% (2.8%) 2.
Slide 19: Gross Margin by Quarter
19 Gross Margin by Quarter Gross Margin $ in millions 2010 2011 2012 TTM Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Specialty (1) $ 28.0 $ 28.1 $ 38.9 $ 38.9 $ 31.5 $ 33.7 $ 41.1 $ 38.1 $ 129.2 $ 137.3 $ 144.4 Structural (1) 14.1 16.8 15.6 17.8 14.6 18.0 20.4 21.0 73.5 64.8 74.0 Other (2) 2.3 1.5 3.1 1.6 1.9 2.5 1.7 1
Slide 20: Gross Margin % Analysis
20 Gross Margin % Analysis 3Q11 4Q11 1Q12 2Q12 3Q12 3Q12 Variance from Year Ago Qtr Structural Products (1) Warehouse 12.1% 11.0% 12.3% 11.7% 12.2% 0.1% Direct 3.6% 3.6% 3.4% 3.6% 3.5% (0.1%) Reload 4.9% 4.5% 4.4% 3.8% 4.5% (0.4%) Total 9.6% 8.9% 9.9% 9.5% 9.9% 0.3% Specialty Products (1) Warehouse
Slide 21: Operating Expense by Quarter
21 Operating Expense by Quarter Operating Expense (1) $ in millions 2010 2011 2012 TTM Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Payroll & related $36.6 $37.8 $37.9 $38.1 $35.5 $38.5 $38.3 $37.2 $151.8 $149.3 $149.5 General maintenance 5.0 5.1 5.6 5.3 5.4 5.2 5.5 5.6 20.6 21.4 21.7 Depreciation and amortization 3.1 2
Slide 22: Structural Products Price Trend
22 Structural Products Price Trend Source: Data from Random Lengths Publications, Inc., updated asof September 28, 2012 Plywood Price Trend 2006-2012 YTD Southern Sheathing 15/32" 4 Ply. West Zone $100 $150 $200 $250 $300 $350 $400 $450 2006Q12006Q22006Q32006Q42007Q12007Q22007Q32007Q42008Q12008Q2200
Slide 23: Reconciliation of GAAP Debt to Non-GAAP Net Debt
23 Reconciliation of GAAP to Non-GAAP BlueLinx Holdings Inc. Unaudited Reconciliation of GAAP Debt to Non-GAAP Net Debt in millions October 1, 2011 December 31, 2011 September 29, 2012 (unaudited) (unaudited) (unaudited) Revolving Credit Facilities $ 118.5 $ 94.5 $ 185.2 Mortgage 246.9 243.2 234.9 T
Slide 24: Reconciliation of GAAP Net Cash to Non-GAAP EBITDA
24 Reconciliation of GAAP to Non-GAAP BlueLinx Holdings Inc. Unaudited Reconciliation of GAAP Net cash used in operating activities to Non-GAAP EBITDA (1) in millions Nine Months Ended September 29, October 1, 2012 2011 GAAP net cash used in operating activities (86.7)$ (83.8)$ Adjustments: Amortiza
Slide 25: www.BlueLinxco.com
25 www.BlueLinxco.com