Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Investor Presentation (August 2018)
19 slides from Bluelinx's investor presentation, Aug 30, 2018
Slide 1: BlueLinx Investor Presentation August 30, 2018
BlueLinx Investor Presentation August 30, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements. This presentation includes “forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, any statement that may predict, forecast, indicate
Slide 3: Executive Management
Executive Management Highly experienced executive team with proven leadership in the building products industry Executive Years Experience Past Experience Mitchell B. Lewis 30+ CEO, President and Director CEO President Attorney Susan C. O’Farrell 30+ CFO and Treasurer Associate Vice President, Finan
Slide 4: BlueLinx Provides A Compelling Opportunity
BlueLinx Provides A Compelling Opportunity Industry leader with opportunity to continue transformative profitable growth STRONG FOUNDATION FOR SUCCESS • A leading building products distributor with a strong geographic presence East of the Rockies and over 700 sales associates • Comprehensive product
Slide 5: BlueLinx Overview
BlueLinx Overview ▪ BlueLinx is a leading wholesale two-step distributor of building NATIONAL FOOTPRINT and industrial products in the United States ▪ BlueLinx operates 68 warehouses East of the Rockies with approximately 2,500 employees ▪ Completed transformative acquisition of Cedar Creek in April
Slide 6: Wholesale Distributors Critical to the Supply Chain
Wholesale Distributors Critical to the Supply Chain WHOLESALE DISTRIBUTOR ▪ Key path to market for most of the lumber building products industry ▪ Fill the necessary step between building products manufacturers and "pro dealers", local lumberyards, specialty distributors and big box retailers ▪ Part
Slide 7: Diversified Customer Base
Diversified Customer Base BlueLinx has an extensive roster of high-quality national and regional customers Regional National Home Improvement Industrial Manufactured Dealers Dealers Centers Manufacturers Housing Contractors, builders, Contractors, builders, Retailers with national Makers of furnitur
Slide 8: Market Demand Drivers Create a Long Runway for Ongoing Value Creation
Market Demand Drivers Create a Long Runway for Ongoing Value Creation Room To Run: Single family housing growth of 20% just to reach historical average annual growth rates ▪ The Company is well-positioned to continue to grow market share as leading economic indicators continue to paint a favorable p
Slide 9: Two Industry Leaders Merge
Two Industry Leaders Merge 2017 After holding May 2004 its investment 1954 Cerberus for 13 years, Formed as a purchased Dec. 2004 2014 Cerberus division of BlueLinx from Initial Public New senior conducts Georgia-Pacific G-P Offering executive secondary team put in offering of its place shares BlueL
Slide 10: A Complementary Combination Poised for Growth
A Complementary Combination Poised for Growth Compelling combination has created a market leader with a strong breadth of product / service offering OPERATIONS SERVICES NATIONAL FOOTPRINT Distribution, milling & 38 locations fabrication, “less- Headquarters in than-truckload” Atlanta, GA deliv
Slide 11: Acquisition Of Cedar Creek Expected To Yield Significant Cost Savings
Acquisition Of Cedar Creek Expected To Yield Significant Cost Savings Opportunity Description ESTIMATED $50M COST SAVINGS BY OPPORTUNITY • Supplier rationalization Procurement • Cost disparity Supply Chain & Network Supply Chain • Overlap markets ~35% Efficiencies • Route optimization General & • Ef
Slide 12: Highly Attractive Combined Profile
Highly Attractive Combined Profile The combined company will offer potential for significant cost savings to realize improved margins 2017 REVENUE 2017 NET INCOME 2017 ADJ EBITDA & MARGIN2 2.4% 4.1% 4.8% $3.24B $154M Expected Run-Rate $137M Cost Savings: Expected Run-Rate ~$50M $1.82B Cost Savings:
Slide 13: Cash Flow Generation Supports Deleveraging
Cash Flow Generation Supports Deleveraging The combined company is expected to generate significant cost savings with strong working capital and real estate to provide strong asset coverage and ability to quickly delever Based on publicly announced pro forma funded debt of ~$580 million at ENHANCE
Slide 14: Strategic Initiatives
Strategic Initiatives 1 2 3 Successful Integration Emphasize Sales Enhance Margins of Two Companies Growth Over $3 billion of Emphasize local Emphasis on products addressable spend for customer interaction and markets with high cost savings to grow market share margin profiles opportunities
Slide 15: Investment Considerations
Investment Considerations 1 ABILITY TO CAPITALIZE ON STRONG HOUSING MARKET MOMENTUM 2 REALIZATION OF AT LEAST $50 MILLION IN SYNERGIES FROM CEDAR CREEK ACQUISITON 3 RECOGNIZED LEADER IN A CONSOLIDATING INDUSTRY 4 CAPITAL STRUCTURE PROVIDES FINANCIAL FLEXIBILITY AND LONG TERM DELEVERAGING 15
Slide 16: Appendix
Bluetinx/AS America’s Building Products Distributor Appendix
Slide 17: Non-GAAP And Supplementary Financial Measures
Non-GAAP And Supplementary Financial Measures BlueLinx reports its financial results in accordance with GAAP, but we also believe that presentation of certain non-GAAP measures, as well as GAAP-based and non-GAAP supplemental financial measures, may be useful to investors and may provide a more comp
Slide 18: Reconciliation of GAAP to Adjusted Measures
Reconciliation of GAAP to Adjusted Measures 2017 Adjusted EBITDA Reconciliation BlueLinx Cedar Creek Combined Net income (loss) $63 $24 $87 Adjustments: Depreciation and amortization 9 14 23 Interest expense 21 10 31 Provision for (benefit from) income taxes (53) 8 (45) Other 4 4 8 Adjusted EBITDA $
Slide 19: Financial Information and SEC Filings available on our website
Please reference our Financial Information and SEC Filings available on our website www.BlueLinxCo.com
BlueLinx Holdings — Investor Presentation (August 2018) on 6ix