Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q3 2024 Earnings Presentation
25 slides from Bluelinx's earnings presentation, Oct 30, 2024
Slide 1: BlueLinx Q3 2024 Results
BlueLinx Q3 2024 Results Delivering What Matters October 30, 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 Operational + Scale/Nationwide footprint Excellence + Cost management Business a « Excellence + Pricing, Procurement and Commercial + Engineered Wood, Siding, Industrial Core Business Products, Millwork, Outdoor Living Growth , wet + Enhancing technology and tools + Expand geogr
Slide 5: Third Quarter 2024 Results
THIRD QUARTER 2024 RESULTS Explosive profitable growth with a highly engaged team ◼ Net sales of $747M, down 8% year-over-year ❑ Impacted by specialty and structural price deflation ◼ Gross profit of $126M, down 10% year-over-year ❑ 80% of gross profit from specialty products ◼ Gross margin of 16.8%
Slide 6: U.S. Housing Industry
U.S. HOUSING INDUSTRY ◼ New housing starts remain soft ❑ September total housing starts down 0.5% from August, down 0.7% from September 2023 ❑ Builder's confidence was 43 in October, up 3 points from October 2023 and up from 41 in September 2024 (1) ◼ Home affordability remains challenging ❑ While i
Slide 7: Financial Review
Financial Review Andy Wamser Chief Financial Officer and Treasurer 7
Slide 8: Third Quarter 2024 Results: Q3 Commentary
THIRD QUARTER 2024 RESULTS Q3 Commentary $ in millions, except per share data Q3 Q3 Variance 2024 2023 ◼ Net Sales decreased 7.7% to $747M Net Sales $747 $810 (7.7)% ❑ Specialty product sales decreased 7% Gross Profit $126 $139 (9.8)% ❑ Structural product sales decreased 9% ◼ Gross Margin of 16.8%,
Slide 9: Specialty Products Q3 2024 Results
SPECIALTY PRODUCTS Q3 2024 RESULTS ($ millions) Q3 Commentary ◼ Net sales of $519M, down 7% ❑ Driven by impact of price deflation vs. prior year ❑ Specialty product sales represent ~70% of total net sales ◼ Gross profit of $100M, down 9% ❑ Specialty product gross profits represent ~80% of total gros
Slide 10: Structural Products Q3 2024 Results
STRUCTURAL PRODUCTS Q3 2024 RESULTS ($ millions) Q3 Commentary ◼ Net sales of $228M, down 9% ❑ Driven by lower lumber and panel pricing ❑ Lower year-over-year industry commodity pricing: 12% decrease in average price of lumber 19% decrease in average price of panels ◼ Gross profit of $25M, down
Slide 11: Balance Sheet
BALANCE SHEET ($ millions) Gross Debt Structure Debt Maturity Schedule $300 * $350 million revolver less $4 million reserved for letters of credit; $346 million of net availability Note: debt maturity schedule does not include finance lease obligations Net Leverage (1) ◼ At the end of Q3 2024: ▪ Cas
Slide 12: Working Capital and Free Cash Flow
WORKING CAPITAL AND FREE CASH FLOW Net Working Capital Management (1) 3Q 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) Ad
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) LIRA Remodeling Activity Index Housing starts in thousands(1) TTM Moving Total - Dollars in billions(2) Starts expected to be around 20-year average and well above 2009-2011 levels Remodeling spend has slowed in 2024 20-year average 30 Year
Slide 17: Wood-Based Commodity Price Trends
WOOD-BASED COMMODITY PRICE TRENDS Framing Lumber Composite Index $/mbf, Quarterly Average Price(1) As of September 2024 Average Q3 24 lumber prices declined 12% year- over-year and were flat from Q2 24 Structural Panel Composite Index $/msf, Quarterly Average Price(1) As of September 2024 Average Q3
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
Supplemental Financial Information Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q3 2022 – Q3 2024 In millions where dollars are presented Fiscal Quarter 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 202
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income and Adjusted Diluted EPS reconciliation for fiscal quarters Q3 2022 - Q3 2024 In thousands where dollars are presented, except per share data Fiscal Quarter 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 Net income (loss) $ 16,016
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation The following schedule reconciles Net cash provided by operating activities to Free cash flow (non-GAAP): In millions $ Fiscal Quarter 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 Net cash provided by (used in) operating activities $ 62 $ 36 $ (31)
Slide 22: Supplemental Financial Information: Net Working Capital
Supplemental Financial Information Net Working Capital by Fiscal Quarter Q3 2022 – Q3 2024 Fiscal Quarter 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 Current assets: Receivables, less allowance for doubtful accounts $ 278 $ 274 $ 288 $ 228 $ 298 $ 294 $ 299 $ 252 $ 360 In
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA reconciliation by fiscal quarter, Q3 2022 – Q3 2024 In millions where dollars are presented Fiscal Quarter 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 Net income (loss) $ 16 $ 14 $ 17 $ (18) $ 24 $ 24 $ 18 $ 32 $ 60 Adjustments: Dep
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Twelve-Month Trailing Adjusted EBITDA reconciliation by Fiscal Quarter, Q3 2022 – Q3 2024 In millions $ Twelve-Month Trailing as of the End of Fiscal Quarter 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 Net income $ 30 $ 38 $ 48 $ 49 $ 99 $ 134 $ 18
Slide 25: Non-GAAP Reconciliation / Supplemental Financial Information
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