Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Investor Presentation (August 2012)
49 slides from Bluelinx's investor presentation, Aug 2, 2012
Slide 1: Summer 2012 Investor Book
Summer 2012 Investor Book BlueLinx Holdings Inc.
Slide 2: Forward-Looking Statement Safe Harbor
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 our management tha
Slide 3: Contents
Contents Executive Summary Key Investment Merits Industry Overview Financial Overview Appendix
Slide 4: Executive Summary
0 °e BlueLinx Executive Summary
Slide 5: Company Overview
Company Overview Leading provider of building products distribution services with over 50 U.S. locations Most comprehensive nationwide footprint in the highly fragmented building products distribution industry Deliver over 10,000 specialty and structural products from over 750 suppliers to more than
Slide 6: Company History & Timeline
Company History & Timeline December 2004 BlueLinx completes its IPO 1994 The Division restructures it vast independent warehouses into a network of 64 centrally-managed distribution points 1970s-1990s The Division grows from 13 to 134 nationwide warehouses, all of which are independently managed An
Slide 7: Business Strategy: Specialty Products and Private Label
Specialty products have grown from 44% of sales to 60% of sales over the last five years Gross profit margin grows from 10% in 2006 to 12% in 2011 Private label products yield higher margins and strengthen customer relationships Current brands include SteelLinx, Sealtite, ProLine, and OnCenter Busin
Slide 8: The Right Products...To The Right Place
The Right Products...To The Right Place... The Right Products...To The Right Place... Product resources, knowledgeable staff & nationwide foot print make us a valuable partner to vendors and customers - ensuring products make it to the right place at the right time
Slide 9: Key Investment Merits
BlueLinx Key Investment Merits
Slide 10: Key Investment Merits
Key Investment Merits Comprehensive Product Offering With Substantially Improved Mix State-of-the-Art Technology & Logistics Unique Centralized Model Diversified Established Customer Base Proven, Entrepreneurial Management Team Upside Opportunity from Rebound in Housing Leading, National Distributio
Slide 11: Leading, National Distribution Platform
Leading, National Distribution Platform Leading distributor of building products in North America with 50+ facilities across the United States Only "pure" distributor among five largest distributors Comprehensive nationwide presence critical to blue-chip suppliers, national dealers, and home improve
Slide 12: Comprehensive Product Offering
Comprehensive Product Offering... One of the industry's broadest product offerings with over 10,000 branded and private-label products encompassing 70,000 SKUs Provides significant cross-selling opportunities to drive BlueLinx' revenue growth across multiple product lines Simplified single source so
Slide 13: Comprehensive Product Offering: Milling and Fabrication
Comprehensive Product Offering... BlueLinx offers a wide array of custom cutting and fabrication services for the building products industry. Specializing in: Hardwood and softwood lumber Panel products such as plywood, OSB, particleboard, MDF, melamine Metal Milling and Fabrication Services Milling
Slide 14: With Substantially Improved Mix
...With Substantially Improved Mix Excel.Chart.8 Specialty Products Structural Products 2006 Commodity goods critical to structural support, walls, and flooring Focus on profitability improvements through downturn Gross Revenue Gross Margin Dollars 2011 2006 2011 Higher-margin, value added products
Slide 15: State-of-the-Art Technology & Logistics
State-of-the-Art Technology & Logistics Superior, proprietary systems provide real-time information to manage inventory levels, optimize logistics, and analyze profitability by product, customer, and location Provides unmatched market intelligence Improves operational efficiency Enhances customer se
Slide 16: Unique, Centralized Model
Flexibility for regionally-focused sales force to make customized decisions at the local level Address local market needs Cultivate local customer relationships Customer-by-customer pricing decision Centralized purchasing team has built a base of over 750 global vendors Global suppliers from North A
Slide 17: Diversified, Established Customer Base
Diversified, Established Customer Base National distributor of building products to over 11,500 customers with approximately 25,000 locations Offers customers superior, reliable service, break bulk quantities, near 100% fill rates, reduced inventory costs, and a wide variety of distribution services
Slide 18: Proven, Entrepreneurial Management Team
Proven, Entrepreneurial Management Team Employees Summary Highly stable employee base BlueLinx maintains excellent relations with its workforce and representing unions Executive Management Team Management possesses deep industry knowledge and distribution expertise Executive management has been with
Slide 19: Executive Management
Executive Management Industry Experience Years at BlueLinx 1 Name & Title George Judd, CEO and President CEO and board member since 2008 Previously President & COO starting in May 2004 Previous positions include National Sales Mgr and VP of Sales and Eastern Operations 28 28 Doug Goforth, Senior VP,
Slide 20: Upside Opportunity from Rebound in Housing
Upside Opportunity from Rebound in Housing Favorable demographic trends and the resulting household formation data strongly support a return to normalized levels of residential new construction Longer term these trends support a return to a "normalized" or mid-cycle level of housing starts in the ra
Slide 21: Well Positioned to Take Advantage of Developing Housing Recovery
Well Positioned to Take Advantage of Developing Housing Recovery Strong relationships with specialty product manufacturers, brand name products, and sales expertise necessary to continue specialty products growth strategy, while also focusing on offering premium brand structural products National fo
Slide 22: Industry Overview
te BlueLinx be your warehouse
Slide 23: Residential New Construction Market
Residential New Construction Market Consensus estimates show housing starts of 747,000 for 2012, rising to 901,000 for 2013 as housing fundamentals strengthen Historical Seasonally-Adjusted Total Housing Starts (Starts in Thousands) Source: Average of the following third party forecasts: Moody's Ana
Slide 24: Residential Improvements Market - Growing
Residential Improvements Market - Growing Growth in the residential improvements market will be driven by rising existing home sales, the high percentage of distressed sales, and homeowners choosing to fix up rather than move up Limiting expenditures will be slow income and employment growth The U.S
Slide 25: Financial Overview
BlueLinx Financial Overview over 10,000 Building Products Available
Slide 26: Improving Financial Performance
Improving Financial Performance Despite market downturn, management increased revenue from $1.65 billion in 2009 to $1.76 billion in 2011 Increasing gross margin percentage with product mix shift to specialty category distinctly differentiates BlueLinx in the supply chain by positioning it to create
Slide 27: Enhanced Revenue Mix
Enhanced Revenue Mix Revenue growth is highly correlated to the expected rebound in residential new construction housing starts Management has focused on expanding sales of more profitable specialty products Specialty products are expected to account for 60% of total sales, even as structural produc
Slide 28: Improved Gross Margin Profile
Improved Gross Margin Profile Focus on global sourcing and increasing product mix have driven increased profit margins ($ in Millions) Historical Gross Margins Historical Gross Margins
Slide 29: Controlled Operating Expenses
Controlled Operating Expenses ($ in Millions) Historical Operating Expenses (1) (1) Operating expense excludes the following: real estate gains and GP contract gain in 2009; real estate gains, OSB settlement and tender offer expenses in 2010; real estate gains in 2011 Strategic cost-cutting measures
Slide 30: Effective Working Capital Management
Effective Working Capital Management Working Capital and Turnover Advanced information and logistics technology allow management to effectively forecast supply and demand to limit inventory requirements and optimize working capital investments ($ in Millions) ($ in Millions)
Slide 31: Limited Future Capital Expenditures
Limited Future Capital Expenditures Capital Expenditures Over $35 million invested over the past six years to drive productivity improvements and to maintain and upgrade facilities, equipment, and information systems Lower volume and corresponding reduced mileage over the past four years required li
Slide 32: 2nd Quarter 2012 Financial Results
2nd Quarter 2012 Financial Results Financial Summary ($ in Millions) Revenue Up 3.2% to $517 million Up 3.2% to $517 million Housing Starts Total starts increased 28.9% from the same period last year; Single family starts increased 23.3% from the same period last year Total starts increased 28.9% fr
Slide 33: Quarterly Review
Quarterly Review 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 Specialty 230.7 309.9 291.1 236.4 268.1 307.9 Structural 160.8 192.6 186.6 164.9 182.9 215.7 Other -0.9 -1.7 -4.8 -10.2 2.7 -6.6 Specialty Unit Volume (2.3%) YOY $16.2 or 3.2% Structural Unit Volume 0.4% Price/Other $16.2 2Q '12 Specialty 30
Slide 34: 2012 Q2 YTD Results
2012 Q2 YTD Results revenue YTD '11 891.4 YTD '12 970.7 YTD '11 YTD '12 GM % 0.117 0.121 Operating Expense YTD '11 110.8 YTD '12 117.6 YTD '11 YTD '12 EBITDA -1.5 4.2 Significant Special Items YTD '11 YTD '12 Variance Gain on insurance settlement - $0.5 ($0.5) Gain on real estate $7.2 $0.5 $6.7 Tota
Slide 35: Cash Flows
Cash Flows BXC used $21.6 million in operating cash flow for the quarter Unaudited (in million's) (in million's) (in million's)
Slide 36: Debt
Debt U.S. Revolver $103.7 million excess availability as of June 30, 2012 LIBOR plus 3.75% as of June 30, 2012 $400 million facility with additional $100 million uncommitted accordion facility Matures January 7, 2014 No financial performance covenants provided Excess Availability is more than the gr
Slide 37: Cash Cycle
Cash Cycle Cash cycle days equal accounts receivable days + inventory days - accounts payable days using a trailing twelve month average beginning and ending balance. The days calculations use calendar days. Cash Cycle Days TTM Cash Cycle days at 59, up 2 days sequentially and up 1 day compared to t
Slide 38: Appendix
Appendix
Slide 39: Profit & Loss Statement by Quarter
Profit & Loss Statement by Quarter Profit & Loss Statement by Quarter
Slide 40: Revenues by Quarter
Revenues by Quarter Revenues by Quarter
Slide 41: Revenue Channel Mix Analysis
Revenue Channel Mix Analysis Revenue Channel Mix Analysis
Slide 42: Unit Volume by Quarter
Unit Volume by Quarter Unit Volume by Quarter
Slide 43: Gross Margin by Quarter
Gross Margin by Quarter Gross Margin by Quarter
Slide 44: Gross Margin % Analysis
Gross Margin % Analysis Gross Margin % Analysis
Slide 45: Operating Expense by Quarter
Operating Expense by Quarter Operating Expense by Quarter
Slide 46: Structural Products Price Trend
Structural Products Price Trend Source: Data from Random Lengths Publications, Inc., updated as of June 30, 2012 Source: Data from Random Lengths Publications, Inc., updated as of June 30, 2012 Source: Data from Random Lengths Publications, Inc., updated as of June 30, 2012 Source: Data from Random
Slide 47: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP
Slide 48: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP
Slide 49: BlueLinx
BlueLinx : www.bluelinxco.com
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