Slide 1: BlueLinx Quarterly Review 4th Quarter 2007
BlueLinx Quarterly Review 4th 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: 4th Quarter Highlights
4th Quarter Highlights 4th Quarter Highlights Housing Starts Declined 25% from the same period last year Declined 25% from the same period last year Prices Prices of key grades of wood-based structural products fell 3% from the end of 3Q '07 to the end of 4Q '07 Prices of key grades of wood-based st
Slide 4: Introduction - Steve Macadam, Chief Executive Officer
Introduction Steve Macadam Chief Executive Officer
Slide 5: Long term strategic objectives and 4th Quarter Focus
Long term strategic objectives: Profitably grow specialty revenues to 60+% of total sales Profitably manage structural while reducing exposure to volatility Outgrow the market over the long term 4th Quarter Focus Tightly manage costs and working capital Strengthen customer and supplier relationships
Slide 6: Financial Review - Mike Ryan, Corporate Controller
Mike Ryan Corporate Controller Financial Review
Slide 7: Quarterly Revenue
Quarterly Revenue Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Specialty 539.5 580 603.3 553.5 460 456.5 500.8 462.9 381.5 Structural 815.2 813.4 798.7 666.6 509.2 518.9 598.1 571.4 409.6 Other -25.4 -16.8 -23 -16.6 -28.9 -18.3 -16.9 -18.4 -12.2 Specialty Unit Volume (15.1%) YOY $1
Slide 8: Quarterly Gross Margin
Quarterly Gross Margin Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Speciatly 76.8 80.4 86.9 77.5 63.5 63.6 70 63.8 40.4 Structural 67.8 55.8 55.7 46.8 35.7 44.9 55.9 43.7 29 Other -4.3 -6.2 -6.2 -3.4 -6.7 -4.8 -6.7 -4.7 -3.3 BXC generated $66.1 million in gross profit for the quar
Slide 9: Quarterly Operating Expense
Quarterly Operating Expense Operating Expense 1Q '06 102.3 2Q '06 103.2 3Q '06 104.8 4Q '06 92 1Q '07 93.9 2Q '07 98.7 3Q '07 89.9 4Q '07 111.2 YOY $19.2 or 20.9% 4th quarter includes $17.1 million for building consolidation and severance charges
Slide 10: Quarterly Net Income and EPS
Quarterly Net Income and EPS 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 4Q '07 Net Income 9.8 9.6 2.3 -5.9 -0.2 5.4 0.9 -34.1 EPS 0.32 0.31 0.07 -0.19 -0.01 0.18 0.03 -1.1
Slide 11: FY 2007 Results
FY 2007 Results revenue FY '06 4899.4 FY '07 3833.9 YOY $1,065.5 or 21.7% FY '06 FY '07 GM % 0.098 0.102 YOY 40 bp Operating Expense FY '06 402.3 FY '07 393.7 FY '06 FY '07 Net Income 15.8 -27.9 EPS 0.51 -0.91 YOY $8.6 or 2.1% *Includes the estimated impact of SKU rationalization on FY 2007 results
Slide 12: Cash Flows
Cash Flows Three Months Ended December 29, 2007 (in millions) BXC generated $98.4 million in operating cash flow for the quarter ($9.2)
Slide 13: Inventory Analysis
Inventory Analysis BXC managed inventory to the demand environment and to support strategic initiatives Lowest inventory level since becoming a public company in December 2004 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 4Q '07 Inventory 501.2 532.2 471.2 410.7 465.6 470.2 424.5 335.9 YOY $74.8
Slide 14: Working Capital
Working Capital 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 4Q '07 Average Working Capital 606.7 664.8 666.9 564 565.118 626.929 589.122 485.018 Revenue 1376.6 1379 1203.5 940.3 957.114 1081.99 1015.887 778.918 COGS 1246.7 1242.5 1082.7 847.7 853.359 962.752 913.085 712.775 Working capital turn
Slide 15: Summary
Summary 4th Quarter Managed margins well in challenging environment 8.5% gross margin vs. 9.8% for the same period a year ago; Estimated SKU rationalization impact of 130 basis points Adjusted cost structure Additional $30 million in annualized cost reductions anticipated as a result of cost reducti
Slide 16: Operations Review - George Judd, President & COO
George Judd President & Chief Operating Officer Operations Review
Slide 17: Unit Volume Growth
Unit Volume Growth Unit Volume Growth
Slide 18: Specialty Unit Growth vs. End Use Markets
Specialty Unit Growth vs. End Use Markets Specialty Unit Growth vs. End Use Markets
Slide 19: Key Initiatives
Key Initiatives To support our strategic objectives: Improve gross margin by increasing mix of specialty and mitigating volatility of structural Invest to support specialty growth Increase presence in under represented business areas, particularly industrials Expand relationships with existing speci
Slide 20: Summary Remarks
Steve Macadam Summary Remarks Demand environment deteriorating further Focused on: Aggressively managing costs Defending our core business Serving our customers and suppliers Selective pursuit of growth opportunities
Slide 21: Appendix
Appendix TOPIC PAGE Revenues by Quarter 22 Unit Volume by Quarter 23 End-Use Market 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 22: Revenues by Quarter
Revenues by Quarter Revenues by Quarter
Slide 23: Unit Volume by Quarter
Unit Volume by Quarter Unit Volume by Quarter
Slide 24: End-Use Market by Quarter
Source: Data from Resource Information Systems, Inc., or RISI, updated as of January 2008 weighted using management's estimates. End-Use Market by Quarter End-Use Market by Quarter
Slide 25: Gross Margin by Quarter
Gross Margin by Quarter Gross Margin by Quarter
Slide 26: Profit & Loss Statement by Quarter
Profit & Loss Statement by Quarter Profit & Loss Statement by Quarter
Slide 27: Inventory by Quarter
Inventory by Quarter Inventory by Quarter
Slide 28: Gross Margin % Analysis
Gross Margin % Analysis Gross Margin % Analysis
Slide 29: Revenue Channel Mix Analysis
Revenue Channel Mix Analysis Revenue Channel Mix Analysis
Slide 30: Structural Products Price Trend
Source: Data from Random Lengths Publications, Inc., updated as of February 8, 2008 Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend