Slide 1: BlueLinx Quarterly Review 2nd Quarter 2007
BlueLinx Quarterly Review 2nd Quarter 2007
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: 2nd Quarter Highlights
2nd Quarter Highlights 2nd Quarter Highlights Housing Starts Declined 21.8% from the same period last year Declined 21.8% from the same period last year Prices Average prices of key grades of wood-based structural products down 8% from a year ago and up 10% vs. 1Q '07 Average prices of key grades of
Slide 4: Introduction - Steve Macadam, Chief Executive Officer
Introduction Steve Macadam Chief Executive Officer
Slide 5: Continuing to focus on long term strategic objectives in a difficult operating environment
BlueLinx continues to focus on its long term strategic objectives in a difficult operating environment Profitably grow specialty revenues to 60+% of total sales Profitably grow structural while reducing exposure to volatility Outgrow the market over the long term 2nd Quarter Progress Cultivate new c
Slide 6: Financial Review - Lynn Wentworth, Chief Financial Officer & Treasurer
Lynn Wentworth Chief Financial Officer & Treasurer Financial Review
Slide 7: Quarterly Revenue
Quarterly Revenue Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Specialty 539.5 580 603.3 553.5 460 456.5 500.8 Structural 815.2 813.4 798.7 666.6 509.2 518.9 598.1 Other -25.4 -16.8 -23 -16.6 -28.9 -18.3 -16.9 Specialty Unit Volume (15.3%) YOY $297.0 or 21.5% Structural Unit Volume (17.1%) Price
Slide 8: Quarterly Gross Margin
Quarterly Gross Margin Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Speciatly 76.8 80.4 86.9 77.5 63.5 63.6 70 Structural 67.8 55.8 55.7 46.8 35.7 44.9 55.9 Other -4.3 -6.2 -6.2 -3.4 -6.7 -4.8 -6.7 BXC generated $119.2 million in gross profit for the quarter, equating to 11% gross margin Gross M
Slide 9: Quarterly Net Income and EPS
Quarterly Net Income and EPS 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 Net Income 9.8 9.6 2.3 -5.9 -0.2 5.4 EPS 0.32 0.31 0.07 -0.19 -0.01 0.18
Slide 10: YTD Results
YTD Results revenue YTD '06 2755.556 YTD '07 2039.104 YOY $716.5 or 26% YTD '06 YTD '07 GM % 0.097 0.109 YOY 120 bp Operating Expense YTD '06 205.495 YTD '07 192.549 YOY $13 or 6.3% YTD '06 YTD '07 Net Income 19.405 5.245 EPS 0.63 0.17
Slide 11: Cash Flows
Cash Flows Beginning Cash Balance 0 20.262 Net Income 20.262 5.434 Non - Cash Adjustments 25.696 5.541 Receivables 3.134 28.103 Inventories 3.134 -1.538 Accounts Payable -1.538 24.839 Other Working Capital 24.839 8.058 Net Cash provided by (used in) operating activities 20.262 12.635 Net Cash provid
Slide 12: Inventory Analysis
Inventory Analysis BXC managed inventory to support strategic initiatives YOY decline reflects tighter management of structural inventory Specialty inventory was managed to balance support of new products and vendors with a generally weak demand environment 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07
Slide 13: Working Capital
Working Capital 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 Average Working Capital 606.7 664.8 666.9 564 565.118 626.929 Revenue 1376.6 1379 1203.5 940.3 957.114 1081.99 COGS 1246.7 1242.5 1082.7 847.7 853.359 962.752 Working capital turn days at 52 vs. 53 in 1Q '07 and 43 same period last year Inven
Slide 14: Summary 2nd Quarter Achievements
Summary 2nd Quarter Achievements Managed margins well in this continued challenging environment 11% gross margin vs. 9.9% for the same period a year ago Aggressively managed costs 4.4%, $4.5 million decline in operating expenses from a year ago Inventory tightly managed to balance specialty growth o
Slide 15: Operations Review - George Judd, President & Chief Operating Officer
George Judd President & Chief Operating Officer Operations Review
Slide 16: Structural decline due to housing slowdown and margin strategy
Structural decline due to housing slowdown and margin strategy Q2 specialty underperformed end-use markets by 250 bp Unit Volume Growth Unit Volume Growth
Slide 17: Specialty Unit Growth vs. End Use Markets
Price competition in transactional business and product transitions negatively impacted Q2 specialty unit volume growth Austin Hardwoods, acquired August 2006, contributed 86 bp to specialty unit volume for the quarter Specialty Unit Growth vs. End Use Markets
Slide 18: Key Initiatives
Key Initiatives To support our strategic objectives: Improve gross margin by increasing mix of specialty and mitigating volatility of structural Invest in people and processes to support specialty growth Increase presence in under represented business areas, particularly industrials Expand relations
Slide 19: Summary Remarks
Steve Macadam Summary Remarks No signs of significant recovery in housing related business Managing our business appropriately given the challenging environment Focused on: Improving overall gross margin performance relative to 2006 Growing specialty business Controlling and managing costs Investing
Slide 20: Appendix
Appendix TOPIC PAGE Revenues by Quarter 22 Unit Volume Growth by Quarter 23 Market Growth by Quarter 24 Gross Margin by Quarter 25 Profit and Loss Statement by Quarter 26 Inventory by Quarter 27 Gross Margin % Analysis 28 Channel Mix Analysis 29 Structural Product Price Trends 30
Slide 21: Revenues by Quarter
Revenues by Quarter Revenues by Quarter
Slide 22: Unit Volume Growth by Quarter
Unit Volume Growth by Quarter Unit Volume Growth by Quarter
Slide 23: Market Growth by Quarter
Source: Data from Resource Information Systems, Inc., or RISI, updated as of July, 2007 weighted using management's estimates. Market Growth by Quarter Market Growth by Quarter
Slide 24: Profit & Loss Statement by Quarter
Profit & Loss Statement by Quarter Profit & Loss Statement by Quarter
Slide 25: Inventory by Quarter
Inventory by Quarter Inventory by Quarter
Slide 26: Gross Margin % Analysis
Gross Margin % Analysis Gross Margin % Analysis
Slide 27: Revenue Channel Mix Analysis
Revenue Channel Mix Analysis Revenue Channel Mix Analysis
Slide 28: Structural Products Price Trend
Source: Data from Random Lengths Publications, Inc., updated as of August 3, 2007 Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend