Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q2 2013 Earnings Presentation
26 slides from Bluelinx's earnings presentation, Jul 31, 2013
Slide 1: BlueLinx Quarterly Review 2nd Quarter 2013
BlueLinx Quarterly Review 2nd Quarter 2013
Slide 2: Forward-Looking Statement Safe Harbor
Slide 2 BlueLinx Holdings 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 o
Slide 3: Opening Remarks
Slide 3 Howard Cohen Executive Chairman Opening Remarks
Slide 4: Industry and Market Conditions; Quarterly Financials
Slide 4 Industry and Market Conditions ▪ End use markets improving: – Continued favorable trends in housing fundamentals experienced through the second quarter – Improved demand for our products and services compared to the year - ago quarter – Second quarter nonseasonally adjusted single - family s
Slide 5: Roadmap: Path to Profitability
Slide 5 Roadmap: “Path to Profitability” New CEO • BOD search committee actively searching for permanent CEO • Requires seasoned executive with strong sales and operational experience 2Q – 3Q Restructuring • Restructure HQ to only operate with critical resources which provide an immediate return (2Q
Slide 6: Quarterly Review
Slide 6 Doug Goforth Chief Financial Officer and Treasurer Quarterly Review
Slide 7: Quarterly Revenue
Slide 7 Quarterly Revenue Revenues ($ in millions) 288.9 249.1 270.9 215.7 211.4 196.1 233.5 276.5 307.9 333.5 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 Variance Analysis $23.2 $27.2 $37.2 Specialty Unit Volume 7.4% YOY $87.6 or 16.9% Structural Unit Volume 12.6% Price/Other $87.6 45% 55% 2Q ‘12 2Q ‘13 59%
Slide 8: 2013 YTD Results
Slide 8 2013 YTD Results Revenues ($ in millions) $970.7 $1,107.7 YTD '12 YTD '13 Gross Margin % 12.1% 10.1% YTD '12 YTD '13 Net Loss ($ in million) ($35.0) ($14.7) YTD '12 YTD '13 YTD ‘12 YTD ’13 Variance Reported Operating Expenses $117.6 $132.3 ($14.7) Significant Special Items: Facility consolid
Slide 9: Adjusted Net Loss
Slide 9 Adjusted Net Loss in millions, except for per share amounts June 29, June 30, June 29, June 30, 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) Pretax loss (22.6)$ (3.5)$ (35.0)$ (14.3)$ Gain from sale of certain properties - - (0.2) (0.5) Gain from property insurance set
Slide 10: Cash Flows
Slide 10 Cash Flows BXC used $37.8 million in operating cash flow for the quarter Unaudited (in million’s) Q212 Q312 Q412 Q113 Q213 TTM 2013 TTM 2012 Cash flows from operating activities: Net loss (3.7)$ 3.1$ (11.4)$ (12.6)$ (22.3)$ (43.2)$ (31.2)$ Adjustments to reconcile net loss to net cash (used
Slide 11: Debt
Slide 11 Debt U.S. Revolver ▪ $90.9 million excess availability as of June 29, 2013 ▪ LIBOR plus 3.25% as of June 29, 2013 ▪ $447.5 million facility with additional $75 million uncommitted accordion facility – Matures April 15, 2016 – Secured by Accounts Receivable and Inventory of Operating Company
Slide 12: Cash Cycle
Slide 12 Cash Cycle TTM Cash Cycle days at 63, up 2 days sequentially and up 4 days compared to the prior year quarter Cash Cycle Days (in days) 49 49 49 53 53 (27) (26) (25) (28) (26) 37 36 34 36 36 -40 -20 0 20 40 60 80 100 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 58 59 63 59 61 Cash cycle days equal ac
Slide 13: Howard Cohen, Executive Chairman
Slide 13 Howard Cohen Executive Chairman
Slide 14: Closing Remarks
Slide 14 Closing Remarks 2013 focus: – Specialty revenue growth – Gross margin improvement – Aggressive execution of objectives – Strategic restructuring and aggressive cost improvement Long term strategic objectives: – Profitably grow specialty revenues to 60+% of total sales while improving our gr
Slide 15: Appendix
Slide 15 Appendix TOPIC PAGE Profit and Loss Statement by Quarter 16 Revenues by Quarter 17 Channel Mix Analysis 18 Unit Volume by Quarter 19 Gross Margin by Quarter 20 Operating Expense by Quarter 21 Structural Product Price Trends 22 Reconciliation of GAAP Debt to Non - GAAP Net Debt 23 Reconcilia
Slide 16: Profit & Loss Statement by Quarter
Slide 16 Profit & Loss Statement by Quarter Profit & Loss Statement $ in millions (1) , except per share amounts 2011 2012 2013 TTM Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Sales $ 472.9 $ 391.1 $ 453.7 $ 517.0 $ 496.8 $ 440.3 $ 503.2 $ 604.6 $ 1,755.4 $ 1,907.8 $ 2,044.9 Cost of Goods Sold 414.6 343.2 399.5 453.8 4
Slide 17: Revenues by Quarter
Slide 17 Revenues by Quarter Sales $ in millions 2011 2012 2013 TTM Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Specialty $ 291.1 $ 236.4 $ 268.1 $ 307.9 $ 288.9 $ 249.1 $ 270.9 $ 333.5 $ 1,068.2 $ 1,114.0 $ 1,142.4 Structural 186.6 164.9 182.9 215.7 211.4 196.1 233.5 276.5 704.9 806.1 917.5 Other (1) (4.8) (10.2) 2.7
Slide 18: Revenue Channel Mix Analysis
Slide 18 Revenue Channel Mix Analysis 2Q12 3Q12 4Q12 1Q13 2Q13 2Q13 Variance from Year Ago Qtr Total Products Warehouse 70.0% 71.8% 72.3% 69.9% 71.0% 1.0% Direct 19.9% 19.5% 19.7% 20.8% 18.2% (1.7%) Reload 10.1% 8.7% 8.0% 9.3% 10.8% 0.7% Total 100.0% 100.0% 100.0% 100.0% 100.0% 0.0%
Slide 19: Unit Volume by Quarter
Slide 19 Unit Volume by Quarter 2011 2012 2013 TTM Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Specialty 11.4% 6.6% 12.4% (2.3%) (1.0%) 5.4% 1.5% 7.4% 7.4% 2.9% 3.4% Structural (14.0%) 2.8% 9.4% 0.4% (3.3%) (0.8%) 4.5% 12.6% (15.1%) 1.4% 3.8% Total 0.1% 5.0% 11.2% (1.3%) (1.9%) 2.9% 2.7% 9.5% (2.8%) 2.3% 3.5% 2011 Unit
Slide 20: Gross Margin by Quarter
Slide 20 Gross Margin by Quarter Gross Margin $ in millions 2011 2012 2013 TTM Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Specialty (1) $ 38.9 $ 31.5 $ 33.7 $ 41.1 $ 38.1 $ 33.0 $ 35.3 $ 44.6 $ 137.3 $ 145.9 $ 151.0 Structural (1) (2) 17.8 14.6 18.0 20.4 21.0 17.5 20.3 11.1 64.8 76.9 69.9 Other (3) 1.6 1.9 2.5 1.7 1.4
Slide 21: Operating Expense by Quarter
Slide 21 Operating Expense by Quarter Operating Expense (1) $ in millions 2011 2012 2013 TTM Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Payroll & related $38.3 $35.5 $38.6 $38.5 $37.8 $37.7 $38.9 $38.8 $149.5 $152.6 $153.2 General maintenance 5.3 5.4 5.2 5.5 5.6 5.4 5.6 6.1 21.4 21.7 22.7 Fuel 4.2 3.7 4.1 4.1 3.6 3.6
Slide 22: Structural Products Price Trend
Slide 22 Structural Products Price Trend Source: Data from Random Lengths Publications, Inc., updated as of June 29, 2013 Plywood Price Trend 2008-2013 YTD Southern Sheathing 15/32" 4 Ply. West Zone $100 $150 $200 $250 $300 $350 $400 $450 2008Q12008Q22008Q32008Q42009Q12009Q22009Q32009Q42010Q12010Q22
Slide 23: Reconciliation of GAAP Debt to Non-GAAP Net Debt
Slide 23 Reconciliation of GAAP to Non - GAAP BlueLinx Holdings Inc. Unaudited Reconciliation of GAAP Debt to Non-GAAP Net Debt in millions June 30, 2012 December 29, 2012 June 29, 2013 (unaudited) (unaudited) (unaudited) Revolving Credit Facilities $ 206.7 $ 171.4 $ 300.0 Mortgage 235.5 206.0 201.8
Slide 24: Reconciliation of Net Cash Used in Operations to EBITDA
Slide 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 Six Months Ended June 29, June 30, 2013 2012 GAAP net cash used in operating activities (133.7)$ (110.1)$ Adjustments: Amorti
Slide 25: Reconciliation of GAAP Net Loss to Adjusted Net Loss
Slide 25 Reconciliation of GAAP to Non - GAAP Reconciliation of GAAP Net Loss to Adjusted Net Loss in thousands June 29, June 30, June 29, June 30, 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) GAAP net loss (22,306)$ (3,706)$ (34,955)$ (14,725)$ Gain from sale of certain prope
Slide 26: www.BlueLinxco.com
Slide 26 www.BlueLinxco.com