Bluelinx Holdings Inc. · NYSE:BXC

Bluelinx — Q1 2023 Earnings Presentation

32 slides from Bluelinx's earnings presentation, May 2, 2023

  1. Slide 1: BlueLinx Q1 2023 Results: Delivering What Matters

    BlueLinx Q1 2023 Results Delivering What Matters May 3, 2023 © BlueLinx 2023. All Rights Reserved. 1

  2. Slide 2: 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 the words “believe,” “anticipate,” “could”, “expe

  3. Slide 3: Opening Remarks

    3 Opening Opening Remarks Shyam Reddy, President & CEO

  4. Slide 4: First Quarter 2023 Results Highlights

     Net sales of $798M, down 39% year-over-year  Q1 22 included significant benefit from both elevated demand and inflated commodity prices  Gross profit of $134M, down 54% year-over-year  16.7% of net sales  80% of gross profit from specialty products  Gross margin of 16.7%, down 560 bps year-ov

  5. Slide 5: Overall highlights: sales, Adjusted EBITDA and net leverage

    Overall highlights:  Disciplined pricing approach supports strong specialty margin  Rigorous structural inventory management  Managing costs relative to market conditions Note: see appendix for reconciliations to all non-GAAP measures Q1 23:  Adjusted EBITDA margin of 5%+  Net leverage reduced

  6. Slide 6: U.S. Housing Industry: affordability and new home starts

     Home affordability under pressure  Mortgage rates remain 6%+  Home price appreciation  Broad-based inflation  New home starts down year-over-year; signs of stabilization  Single-family housing starts have declined year-over-year through the first three months of 2023; full year expected to re

  7. Slide 7: U.S. Housing Industry: lumber and panel prices

    *As of April 28, 2023  Average Q1 lumber and panel prices declined 67% and 60%, respectively, year-over-year  Since the beginning of January, lumber and panels prices increased 13% and 12%, respectively through April 28th  Higher input costs continue due to widespread inflation  Improved product

  8. Slide 8: Financial Review

    8 Financial Review Kelly Janzen, Chief Financial Officer

  9. Slide 9: Q1 year-over-year analysis

     Net Sales decreased 39% to $798M  Specialty product sales down 26%  Structural product sales down 57%  Gross Margin of 16.7%, down 560 bps  Adjusted Diluted EPS of $2.53  Adjusted EBITDA of $47M  Adjusted EBITDA margin of 5.9%  Cash from Operations increased by $87M  Capital Expenditures o

  10. Slide 10: Working Capital

    Days Sales of Inventory (DSI) Number of Days Operating Working Capital Management(1) Dollars in millions Cash Cycle Days(2) Number of Days  Return on working capital, 61% for Q1 2023 TTM  $53M decrease in operating working capital since Q4 22 driven by $75M sequential reduction in inventory relate

  11. Slide 11: Specialty Products Q1 2023 Results

    $421 $449 $496 $499 $563 $675 $641 $641 $768 $788 $724 $592 $568 16.4% 17.3% 17.4% 17.4% 19.3% 24.4% 23.0% 21.9% 24.0% 22.9% 20.9% 21.1% 18.8% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 ($ millions) GM Rate Net sales  Net sales down 26%, or $200M  Volume down 18%

  12. Slide 12: Structural Products Q1 2023 Results

    ($ millions) $241 $250 $375 $367 $462 $633 $330 $331 $534 $452 $336 $256 $230 10.1% 9.3% 19.6% 10.2% 15.5% 13.6% 1.7% 16.1% 20.0% 4.7% 11.3% 10.4% 11.7% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 GM Rate Net sales  Net sales decreased 57%, or $304M  Significantly

  13. Slide 13: Balance Sheet

    * $350 million revolver less $4 million of reserves and letters of credit; $346 million of net availability Note: see appendix for reconciliations to all non-GAAP measures  At the end of Q1 2023:  Net leverage at 0.6x  Net debt at $195M  Cash on hand of $376M  Total available liquidity of $723M

  14. Slide 14: Capital Allocation Framework

    INVEST IN THE BUSINESS STRATEGIC ACQUISITIONS SHARE REPURCHASES OPERATING CASH FLOW GUIDING PRINCIPLES  Maintain strong balance sheet and financial stability  Long-term net leverage could increase to at or around 3.0x when considering growth  Invest in business through economic cycles  Acquisiti

  15. Slide 15: Executive Summary

    Dwight Gibson, President and CEO Shyam Reddy, President and CEO Executive Summary 15

  16. Slide 16: BlueLinx: Delivering What Matters

    BlueLinx: Delivering What Matters Put people First. Invest in the Future. Win Together. 1 2 3Attractive market BlueLinx is well positioned to grow Leveraging growth  >$40B addressable market(1)  Fragmented competition  Optimizing productivity  Driving performance (1) Management estimate  ~10% m

  17. Slide 17: Delivering What Matters: North America's Preeminent Building Products Distributor

    Accelerating Growth Accelerating growth with our best customers and our best specialty products Optimizing Productivity Optimizing productivity thru distribution center optimization and procurement excellence Driving Performance Building an extraordinary team, creating a performance- based culture C

  18. Slide 18: Delivering What Matters: Q1 summary

    18  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 monitoring the US housing

  19. Slide 19: Appendix

    Appendix 19

  20. Slide 20: Non-GAAP measures notice

    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 GAAP results alone

  21. Slide 21: Housing starts, remodeling activity, new house supply and mortgage rates

    Total U.S. Single Family Housing Starts (SFHS) Housing starts in thousands (1) 25-year average LIRA Remodeling Activity Index TTM Moving Total - Dollars in billions (3) Total U.S. Monthly Supply of New Houses Months of inventory (2) 30 Year Fixed Mortgage Rates As of April 2023 (4) 0.0% 2.0% 4.0% 6.

  22. Slide 22: Macro Trends: Household Owners' Equity Levels

    $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 O ct -8 2 O ct -8 4 O ct -8 6 O ct -8 8 O ct -9 0 O ct -9 2 O ct -9 4 O ct -9 6 O ct -9 8 O ct -0 0 O ct -0 2 O ct -0 4 O ct -0 6 O ct -0 8 O ct -1 0 O ct -1 2 O ct -1 4 O ct -1 6 O ct -1 8 O ct -2 0 O ct -2 2 Household Owners’ Equity Levels

  23. Slide 23: Framing Lumber and Structural Panel Composite Indexes

    Framing Lumber Composite Index As of April 2023(1) Structural Panel Composite Index As of April 2023(2)  Prices increased throughout Q1; from the beginning of January to the end of March, lumber and panels prices increased 12% and 7%, respectively  At the end of Q1, lumber and panel prices were $4

  24. Slide 24: Net sales and gross profit by product category

    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 Non-GAAP Reconciliation / supplementary financial information

  25. Slide 25: Adjusted EBITDA reconciliation

    Adjusted EBITDA reconciliation by fiscal quarter, Q1 2020 – Q1 2023 In millions where dollars are presented 25 Non-GAAP Reconciliation / supplementary financial information

  26. Slide 26: Free cash flow

    Free cash flow for the three months ended Q1 2023, Q1 2022, Q1 2021, and Q1 2020 In millions where dollars are presented 26 Non-GAAP Reconciliation / supplementary financial information

  27. Slide 27: Working capital by fiscal quarter

    Working capital by fiscal quarter, Q1 2021 – Q1 2023 In millions where dollars are presented 27 Non-GAAP Reconciliation / supplementary financial information

  28. Slide 28: Net leverage ratio, TTM Q1 2023

    Net leverage ratio for the trailing twelve months ended Q1 2023 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 28 Non-GAAP Reconciliation / supplementary financial information

  29. Slide 29: Net leverage ratio, TTM Q1 2022

    Net leverage ratio for the trailing twelve months ended Q1 2022 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 29 Non-GAAP Reconciliation / supplementary financial information

  30. Slide 30: Net leverage ratio, TTM Q1 2021

    Net leverage ratio for the trailing twelve months ended Q1 2021 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 30 Non-GAAP Reconciliation / supplementary financial information

  31. Slide 31: Net leverage ratio, TTM Q1 2020

    Net leverage ratio for the trailing twelve months ended Q1 2020 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 31 Non-GAAP Reconciliation / supplementary financial information

  32. Slide 32: Adjusted Net Income and Adjusted Diluted Income per Share reconciliation

    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 32 Non-GAAP Reconciliation / supplementary financial information (1) Tax impact calculated

BlueLinx Holdings — Q1 2023 Earnings Presentation on 6ix