Slide 1: BlueLinx Quarterly Review Third Quarter 2016
BlueLinx Quarterly Review Third Quarter 2016
Slide 2: Forward-Looking Statement Safe Harbor
2 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 statements are based on estimates and assumptions made by our management that, although believed
Slide 3: Non-GAAP Financial Measures
3 The Company reports its financial results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). The Company also believes that presentation of certain non-GAAP measures may be useful to investors. Any non-GAAP measures used herein are reconciled to the most relevant GAA
Slide 4: Mitch Lewis, Chief Executive Officer
4 Mitch Lewis Chief Executive Officer
Slide 5: Key Emphasis for BlueLinx
5 Key Emphasis • Continue initiatives to delever the Company ◦ Real estate monetization ◦ Sale/leaseback opportunities ◦ Working capital improvements • Emphasize local customer interaction to grow market share • Focus on sales excellence and customer experience Key Emphasis for BlueLinx
Slide 6: Susan O'Farrell, Chief Financial Officer and Treasurer
6 Susan O’Farrell Chief Financial Officer and Treasurer
Slide 7: Executive Summary – Third Quarter Results
7 Executive Summary – Third Quarter Results • Net Sales of $476.0 million ◦ Adjusted net sales1 increased of $16.5 million or 3.6% from Q3 2015 • Gross Profit of $60.1 million • Gross margin of 12.6% ◦ Adjusted gross margin1 increased by 40 basis points from Q3 2015 • Net Income of $15.0 million • D
Slide 8: Executive Summary – Year to Date Results
8 Executive Summary – Year to Date Results • Net Sales of $1.46 billion ◦ Adjusted net sales1 increased $57.7 million from 2015 • Gross Profit of $175.0 million • Gross margin of 12.0% ◦ Adjusted gross margin1 was 12.6%, up 100 basis points from 2015 • Net Income of $5.7 million • Adjusted EBITDA of
Slide 9: Improving Adjusted Gross Margin
9 Improving Adjusted Gross Margin 1 GAAP gross margin of 12.6% adjusted for timing of unused accounting reserves from our strategic operational initiatives taken in the prior quarter and reversed in Q3 2016. Management believes adjusted gross margin better represents the performance of the company o
Slide 10: Delevering the Business
10 Delevering the Business • Successful execution on our real estate monetization initiative resulted in four property sales during the quarter, enabling us to pay down an additional $16.6 million on our debt principal in Q3 2016 • Our mortgage and revolving credit facilities decreased by $26.7 mill
Slide 11: Working Capital Efficiencies
11 Working Capital Efficiencies 7 day reduction • Cash cycle days for the third quarter 2016 were 55 days, a seven day improvement from third quarter 2015 and a five day improvement from third quarter 2014 • Operating working capital improved this quarter by $71.5 million when compared to the same p
Slide 12: Statements of Operations Appendix
12 TOPIC PAGE Statements of Operations 13 Appendix
Slide 13: Statements of Operations
13 Statements of Operations $ in millions except per share amounts 2016 2015 2016 2015 Q3 Q3 YTD YTD Net sales $ 476.0 $ 517.8 $ 1,459.4 $ 1,488.4 Cost of sales 416.0 457.0 1,284.4 1,317.4 Gross profit 60.0 60.8 175.0 171.0 Gross margin % 12.6 % 11.7 % 12.0 % 11.5 % Operating expenses: Selling, gene
Slide 14: www.BlueLinxco.com
www.BlueLinxco.com