Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q3 2019 Earnings Presentation
15 slides from Bluelinx's earnings presentation, Nov 5, 2019
Slide 1: Third Quarter 2019 Earnings Call Presentation
BlueLinx (NYSE: BXC) Third Quarter 2019 Earnings Call Presentation November 6, 2019
Slide 2: Notes to Investors: Forward-Looking Statements
Notes to Investors Forward-Looking Statements. 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 th
Slide 3: Third Quarter 2019 – Overview
Third Quarter 2019 – Overview • Third Quarter Net Sales of $678.7 million • Significantly affected by commodity wood deflation • Modest favorable impact of SFHS by 1.7% from Q2 2019 • Gross Margin of 13.8%, up 310 basis points over the prior year period and 50 basis points higher than Q2 2019 • Net
Slide 4: End-Use Market Outlook
End-Use Market Outlook MARKET OUTLOOK • Single Family Housing Starts below historical average; still room to run • October 2019 Builders Confidence Index of 71 suggests growth in single-family housing market • Fed reduced interest rates by another 25 basis points in October 2019; year-to-date reduct
Slide 5: Financial Overview
Bluetinx AS ‘America’s Building Products Distributor Financial Overview
Slide 6: Financial Summary – Third Quarter 2019
Financial Summary – Third Quarter 2019 • Net Sales of $678.7 million, compared to $859.8 million • Gross Profit of $93.7 million, compared to $91.8 million • Gross Margin of 13.8%, up 310 basis points • Q3 2018 includes $5.2 million lower of cost or NRV adjustment related to commodity wood- based pr
Slide 7: Financial Summary – First Nine Months 2019
Financial Summary – First Nine Months 2019 • Net Sales of $2.0 billion, compared to $2.2 billion • Gross Profit of $273.9 million, compared to $250.7 million • Gross Margin of 13.5%, up 210 basis points • Prior year period includes $11.8 million for acquisition related inventory step-up charges and
Slide 8: Commodity Lumber and Panel Prices
Commodity Lumber and Panel Prices FRAMING LUMBER COMPOSITE PRICE STRUCTURAL PANEL COMPOSITE PRICE Source: Random Lengths Source: Random Lengths $650 $650 $550 $550 $450 $450 Q3 (15%) Q3 (29%) $350 $350 2019 2018 2019 2018 $250 $250 Mar Jun Sep Dec Mar Jun Sep Dec THIRD QUARTER THIGHLIGHTS • Framing
Slide 9: Sales and Gross Margin by Product Q3'18 vs. Q3'19
Sales and Gross Margin by Product Q3’18 vs. Q3’19 SALES BY PRODUCT HISTORICAL GROSS MARGIN 18.0% 16.2% 16.5% 15.9% Q3’18 Q3’19 16.0% 16.0% 14.0% 15.1% 15.2% 15.5% 12.0% Specialty 14.8% 15.0% Structural Structural 33% 10.0% 14.5% 36% Specialty 67% 8.0% 9.5% 14.0% Specialty 8.9% 64% 6.0% 7.7% 13.5% 4.
Slide 10: Reduction in Term Loan Debt and ABL
Reduction in Term Loan Debt and ABL DEBT1 REDUCTION $ in millions • Debt under the Term Loan and Revolving Credit $594 Facility down $92 million over the prior year period • ABL down $60 million $502 Term Loan down $32 million $179 • Term Loan Term $147 • Received gross proceeds of ~$2 million in th
Slide 11: Current Annual Uses of Cash
Current Annual Uses of Cash Estimated Annual Uses of Cash1 • Continue to project ~$70 million in Finance Lease Payments $27 annual uses of cash ABL Interest2 $16 • BlueLinx has strong potential to delever Term Loan Interest3 $13 • Additional real estate monetization CapEx4 $5 could reduce annual cas
Slide 12: Appendix
Bluetinx AS ‘America’s Building Products Distributor Appendix .
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures BlueLinx reports its financial results in accordance with GAAP, but we also believe that presentation of certain non-GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affecting the business than using reported
Slide 14: Adjusted EBITDA
Adjusted EBITDA (In millions) (Unaudited) 2019 2018 2019 2018 Q3 Q3 Q3 YTD Q3 YTD Net income (loss) $ (7.0) $ (9.9) $ (7.5) $ (31.9) Adjustments: Depreciation and amortization 7.6 8.1 22.4 18.2 Interest expense 13.4 13.3 40.5 33.9 Provision for (Benefit from) income taxes 0.2 (7.3) 0.1 (7.9) Gain fr
Slide 15: Please reference the Earnings Release and 10-Q on our website
Please reference the Earnings Release and 10-Q available on our website www.BlueLinxCo.com 15