Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q1 2020 Earnings Presentation
16 slides from Bluelinx's earnings presentation, May 5, 2020
Slide 1: First Quarter 2020 Earnings Call Presentation
BlueLinx (NYSE: BXC) First Quarter 2020 Earnings Call Presentation May 6, 2020
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: First Quarter 2020 – Overview
First Quarter 2020 – Overview • First Quarter Net Sales were $662 million increasing $23 million versus Q1 2019 • Up 9% excluding the discontinued siding line • Gross Margin improved to 14.1%, the Company’s highest quarterly Gross Margin since going public in 2004 • First Quarter Adjusted EBITDA of
Slide 4: Key Pandemic Safety Actions
Key Pandemic Safety Actions • Established financial and operational risk management team, led by Chief Executive Officer • Created COVID-19 Emergency Preparedness Task Force in February led by Chief Administrative Officer • Prioritized associate health and safety with respect to all business decisio
Slide 5: Key Pandemic Economic Actions
Key Pandemic Economic Actions Fixed Cost Response • CEO base salary reduced to $1 per month for 6 months beginning April 1 • Executive leadership reduced base salaries by 10% for six months effective April 1 • Board voted to reduce their 2nd and 3rd quarter 2020 cash compensation by 20% • Furloughed
Slide 6: End-Use Market Outlook
End-Use Market Outlook MARKET OUTLOOK • COVID-19 pandemic creates short-term pressure and unpredictability while long-term prospects remain strong • March 2020 Builders Confidence Index of 72 fell to 30 in April due to uncertainty surrounding markets and the pandemic • April 30-year fixed rate mortg
Slide 7: Current Market Conditions
Current Market Conditions • April daily revenue 11% below prior year, down 8% excluding the impact of the discontinued siding line • Dealer demand driven primarily from existing home builder contracts • Reduced pipeline of new home contracts may ultimately further impact demand • Market demand varie
Slide 8: Financial Overview
Bluetinx AS ‘America's Building Products Distributor Financial Overview
Slide 9: Financial Summary – First Quarter 2020
Financial Summary – First Quarter 2020 • Net Sales of $662 million, compared to $639 million • Market share growth strategies being implemented • Increase of $55 million or 9%, excluding impact of discontinued siding line • Gross Profit of $93 million, compared to $86 million • Gross Margin of 14.1%
Slide 10: Commodity Lumber and Panel Prices
Commodity Lumber and Panel Prices FRAMING LUMBER COMPOSITE PRICE STRUCTURAL PANEL COMPOSITE PRICE Source: Random Lengths Source: Random Lengths $550 $550 $450 $450 5YR AVG $404 2020 2020 5YR AVG $383 2019 2018 $350 $350 2018 2019 $250 $250 Mar Jun Sep Dec Mar Jun Sep Dec FIRST QUARTER HIGHLIGHTS • E
Slide 11: Sales and Gross Margin by Product Q1'19 vs. Q1'20
Sales and Gross Margin by Product Q1’19 vs. Q1’20 SALES BY PRODUCT HISTORICAL GROSS MARGIN 16.4% Q1’19 Q1’20 16.2% 16.1% 15.9% 15.2% Specialty Structural Structural 10.1% 31% 9.5% 36% 8.9% 8.7% 7.7% Specialty Specialty 64% 69% Structural Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 FIRST QUARTER HIGHLIGHTS • Gross
Slide 12: Capital Structure and Deleveraging
Capital Structure and Deleveraging TERM LOAN REDUCTION • Term Loan principal balance reduced by $78 $ in millions million since Q4 2019 • Current principal balance is $69 million • Reduction to $45 million eliminates leverage covenant • ABL Excess Availability of $97 million as Q1 2020 53% reduction
Slide 13: Appendix
Bluetinx AS ‘America's Building Products Distributor Appendix
Slide 14: Non-GAAP Measures
Non-GAAP 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 GAAP resu
Slide 15: Adjusted EBITDA
Adjusted EBITDA $ in millions (Unaudited) Q1 2020 Q1 2019 Net Loss $ (0.8) $ (6.7) Adjustments: Depreciation and amortization 7.6 7.3 Interest expense 14.4 13.4 Benefit from income taxes (5.0) (2.5) Gain from sales of property (0.5) - Amortization of deferred gain (1.0) (1.0) Share-based compensatio
Slide 16: Please reference the Earnings Release, 10-K and 10-Q on our website
Please reference the Earnings Release, 10-K and 10-Q available on our website www.BlueLinxCo.com 16