Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q3 2008 Earnings Presentation
23 slides from Bluelinx's earnings presentation, Oct 30, 2008
Slide 1: BlueLinx Quarterly Review 3rd Quarter 2008
BlueLinx Quarterly Review 3rd Quarter 2008
Slide 2: Safe Harbor Statement and Use of Non-GAAP and Pro Forma Information
BlueLinx Holdings Inc. Safe Harbor Statement and Use of Non-GAAP and Pro Forma Information 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 statemen
Slide 3: 3rd Quarter Highlights
3rd Quarter Highlights 3rd Quarter Highlights Housing Starts Declined 33% from the same period last year Declined 33% from the same period last year Prices Prices of key grades of wood-based structural products declined 2% from the end of 2Q '08 to the end of 3Q '08 Prices of key grades of wood-base
Slide 4: Introduction
Howard Cohen Chairman of the Board & George Judd Chief Executive Officer Introduction
Slide 5: 3rd Quarter Focus
3rd Quarter Focus Key focus on cash Tight management of costs and working capital Strengthen customer and supplier relationships Long term strategic objectives: Profitably grow specialty revenues to 60+% of total sales Profitably manage structural while reducing exposure to volatility Profitably out
Slide 6: Financial Review
Doug Goforth Chief Financial Officer and Treasurer Financial Review
Slide 7: Quarterly Revenue
Quarterly Revenue 4Q '05 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 2Q '08 3Q '08 Specialty 539.5 580 603.3 553.5 460 456.5 500.8 462.9 381.5 354 402.8 375.9 Structural 815.2 813.4 798.7 666.6 509.2 518.9 598.1 571.4 409.6 373 442.4 365.8 Other -25.4 -16.8 -23 -16.6 -28.9 -18.3 -
Slide 8: YTD 2008 Results
YTD 2008 Results revenue YTD '07 3055 YTD '08 2278.2 YOY $776.8 or 25.4% YTD '07 YTD '08 GM % 0.107 0.118 YOY 110 bp Operating Expense YTD '07 282.5 YTD '08 250.7 YTD '07 YTD '08 Net Income 6.1 -6.6 EPS 0.2 -0.21 YOY $31.8 or 11.3%
Slide 9: Cash Flows
Cash Flows Three Months Ended September 27, 2008 (in millions) BXC generated $69 million in operating cash flow for the quarter $41.3
Slide 10: Debt
Debt Revolver ($800 million facility) Matures May 7, 2011 $227 million excess borrowing availability as of September 27th No financial performance covenants provided excess borrowing availability is greater than $40 million Dividend restrictions apply if excess availability is less than $70 million
Slide 11: Inventory Analysis
Inventory Analysis BXC managed inventory to the demand environment and to support strategic initiatives 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 2Q '08 3Q '08 Inventory 501.2 532.2 471.2 410.7 465.6 470.2 424.5 335.9 351.2 315.4 261 YOY $163.5 or 38.5%
Slide 12: Cash Cycle
Cash Cycle TTM Cash Cycle days at 52 consistent with sequential and year ago same quarters 3Q '07 4Q '07 1Q '08 2Q '08 3Q '08 Inv 45.8 44.7 46.3 46.3 45.3 A/R 34.7 32.9 34.5 35.3 34.7 A/P & OD's -28.7 -27.3 -28.3 -28.8 -27.8 MSGraph.Chart.8 MSGraph.Chart.8 Cash cycle days equal accounts receivable d
Slide 13: Summary
Summary 3rd Quarter Focused on cash management Aggressively managing receivables and inventory Tight controls on operating expenses Remain focused on gross margin Ended the quarter with $71 million in cash and cash equivalents Flexible debt facility allows continued execution of business plan in ext
Slide 14: Summary
George Judd Chief Executive Officer Summary
Slide 15: Summary Remarks
Summary Remarks Primary focus is on managing cash flow Successfully underscoring our value proposition to our customers and getting paid for the value we bring to them
Slide 16: Appendix
Appendix TOPIC PAGE Revenues by Quarter 17 Unit Volume by Quarter 18 Gross Margin by Quarter 19 Profit and Loss Statement by Quarter 20 Gross Margin % Analysis 21 Channel Mix Analysis 22 Structural Product Price Trends 23
Slide 17: Revenues by Quarter
Revenues by Quarter Revenues by Quarter
Slide 18: Unit Volume by Quarter
Unit Volume by Quarter Unit Volume by Quarter
Slide 19: Gross Margin by Quarter
Gross Margin by Quarter Gross Margin by Quarter
Slide 20: Profit & Loss Statement by Quarter
Profit & Loss Statement by Quarter Profit & Loss Statement by Quarter
Slide 21: Gross Margin % Analysis
Gross Margin % Analysis Gross Margin % Analysis
Slide 22: Revenue Channel Mix Analysis
Revenue Channel Mix Analysis Revenue Channel Mix Analysis
Slide 23: Structural Products Price Trend
Source: Data from Random Lengths Publications, Inc., updated as of October 24, 2008 Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend