Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q1 2023 Earnings Presentation
32 slides from Bluelinx's earnings presentation, May 3, 2023
Slide 1: BlueLinx Q1 2023 Results
BlueLinx Q1 2023 Results Delivering What Matters May 3, 2023 © BlueLinx 2023. 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 Opening Remarks Shyam Reddy, President & CEO 3
Slide 4: First Quarter 2023 Results
FIRST QUARTER 2023 RESULTS Explosive profitable growth with a highly engaged team Net sales of $798M, down 39% year-over-year Q1 23 Sales by Product Category Q1 22 included significant benefit from both elevated demand and inflated commodity prices Gross profit of $134M, down 54% year-over-yea
Slide 5: First Quarter 2023 Results
FIRST QUARTER 2023 RESULTS ($ millions) $1,302 Q1 23: $1,025 15.5% Adjusted EBITDA margin of 5%+ Net leverage reduced to 0.6x from 0.9x $798 $662 10.4% 5.9% 3.0% Overall highlights: Q1 20 Q1 21 Q1 22 Q1 23 Disciplined pricing approach supports strong specialty margin Net Sales Adj EBITDA % R
Slide 6: U.S. Housing Industry
U.S. HOUSING INDUSTRY Home affordability under pressure Mortgage rates remain 6%+ BLUELINX SALES BY END MARKET Home price appreciation Broad-based inflation New home starts down year-over-year; signs of stabilization New Home Single-family housing starts have declined year-over-year thro
Slide 7: U.S. Housing Industry
U.S. HOUSING INDUSTRY Average quarterly prices for framing lumber ($/MBF) Supply/Cost Environment and structural panels ($/MSF) (per RISI(1)): Average Q1 lumber and panel prices declined 67% and $1,800 $1,566 60%, respectively, year-over-year $1,600 $1,400 $1,232 $1,200 $1,003 $1,243 $1,244 Sinc
Slide 8: Financial Review
Financial Review Kelly Janzen, Chief Financial Officer 8
Slide 9: First Quarter 2023 Results
FIRST QUARTER 2023 RESULTS $ millions, except per share data Q1 Q1 2023 vs. Q1 Q1 Q1 Q1 year-over-year analysis 2023 Q1 2022 2022 2021 2020 Net Sales decreased 39% to $798M Net Sales $798 (39%) $1,302 $1,025 $662 Specialty product sales down 26% Gross Profit $134 (54%) $291 $180 $93 Structural
Slide 10: Working Capital
WORKING CAPITAL Return on working capital, Operating Working Days Sales of Inventory (DSI) 61% for Q1 2023 TTM Capital Management(1) Number of Days 67 Dollars in millions 58 61 54 48 47 50 $900 100% $53M decrease in operating 39 $830 working capital since Q4 22 90% 35 driven by $75M sequential $
Slide 11: Specialty Products Q1 2023 Results
SPECIALTY PRODUCTS Q1 2023 RESULTS Q1 year-over-year analysis ($ millions) $788 $768 $724 Net sales down 26%, or $200M GM Rate $675 Net sales $641 $641 Volume down 18%, primarily lower demand 24.4% $592 for engineered wood products 24.0% $568 $563 23.0% Specialty sales is 71% of total net sale
Slide 12: Structural Products Q1 2023 Results
STRUCTURAL PRODUCTS Q1 2023 RESULTS Q1 year-over-year analysis ($ millions) GM Rate Net sales decreased 57%, or $304M $633 Net sales Significantly lower year-over-year average pricing for commodities: $534 67% decrease in average price of lumber $462 $452 60% decrease in average price of pan
Slide 13: Balance Sheet
BALANCE SHEET ($ millions) Gross Debt Structure Debt Maturity Schedule $640 $350* $572 $571 $300 $359 $300 $300 $300m Senior Notes @ 6% undrawn revolver $281 $272 $271 Q1 21 Q1 22 Q1 23 2022 2023 2024 2025 2026 2027 2028 2029 Finance Leases Revolver Senior Notes Note: debt maturity schedule does not
Slide 14: 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 3.0x when INVEST IN THE STRATEGIC SHARE considering growth BUSINESS ACQUISITIONS REPURCHASES Invest in
Slide 15: Executive Summary
Executive Summary Shyam Reddy, President and CEO 15
Slide 16: BlueLinx: Delivering What Matters
BLUELINX 1 2 3 Attractive BlueLinx is well Leveraging market positioned to grow growth >$40B addressable market(1) ~10% market share Optimizing productivity Fragmented competition Strong financial position Driving performance BlueLinx: Delivering What Matters Put people First. Invest in
Slide 17: Delivering What Matters
DELIVERING WHAT MATTERS Accelerating Growth Optimizing Productivity Accelerating growth with our best customers and Optimizing productivity thru distribution center our best specialty products optimization and procurement excellence North America’s Preeminent Building Products Distributor Creating V
Slide 18: Delivering What Matters
DELIVERING WHAT MATTERS In Q1 2023 we delivered solid results: Net sales of $798M Net Income of $18M, or $1.94 diluted EPS Adjusted Net Income of $23M, or $2.53 adjusted diluted EPS Adjusted EBITDA of $47M or 5.9% of net sales Operating cash of $89M, Free cash flow of $80M Closely moni
Slide 19: Appendix
Appendix BLUE: %
Slide 20: Non-GAAP Measures
Non-GAAP Measures 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 affecting the business than using reported
Slide 21: 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 (3) 2,000 $600 1,800 starts expected to be below 25-year remodeling spend expected 1,600 average but above 2009-2011 levels $500 to slow i
Slide 22: Macro Trends
MACRO TRENDS Household Owners’ Equity Levels in Real Estate Dollars in billions (1) $35,000 record levels of home equity $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Oct-82 Oct-84 Oct-86 Oct-88 Oct-90 Oct-92 Oct-94 Oct-96 Oct-98 Oct-00 Oct-02 Oct-04 Oct-06 Oct-08 Oct-10 Oct-12 Oct-14 Oct-16 Oct
Slide 23: Wood-Based Commodity Price Trends
WOOD-BASED COMMODITY PRICE TRENDS Framing Lumber Composite Index Prices increased throughout Q1; As of April 2023(1) from the beginning of January 1,600 Index Price TTM Avg. Index Price to the end of March, lumber 1,400 Apr-23 framing lumber prices are 29% lower than the 5-year average and 25% bel
Slide 24: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q1 2020 – Q1 2023 In millions where dollars are presented 24
Slide 25: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Adjusted EBITDA reconciliation by fiscal quarter, Q1 2020 – Q1 2023 In millions where dollars are presented 25
Slide 26: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Free cash flow for the three months ended Q1 2023, Q1 2022, Q1 2021, and Q1 2020 In millions where dollars are presented 26
Slide 27: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Working capital by fiscal quarter, Q1 2021 – Q1 2023 In millions where dollars are presented 27
Slide 28: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Net leverage ratio for the trailing twelve months ended Q1 2023 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 28
Slide 29: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Net leverage ratio for the trailing twelve months ended Q1 2022 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 29
Slide 30: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Net leverage ratio for the trailing twelve months ended Q1 2021 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 30
Slide 31: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Net leverage ratio for the trailing twelve months ended Q1 2020 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 31
Slide 32: Non-GAAP Reconciliation / supplementary financial information
Non-GAAP Reconciliation / supplementary financial information Adjusted Net Income and Adjusted Diluted Income per Share reconciliation for the three-month periods ended Q1 2023, Q1 2022, Q1 2021, and Q1 2020 In thousands where dollars are presented, except per share data (1) Tax impact calculated ba