Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q3 2007 Earnings Presentation
29 slides from Bluelinx's earnings presentation, Nov 1, 2007
Slide 1: BlueLinx Quarterly Review 3rd Quarter 2007
BlueLinx Quarterly Review 3rd Quarter 2007
Slide 2: 3rd Quarter Highlights
3rd Quarter Highlights 3rd Quarter Highlights Housing Starts Declined 24% from the same period last year Declined 24% from the same period last year Prices Prices of key grades of wood-based structural products fell 18.1% from the end of 2Q '07 to the end of 3Q '07 Prices of key grades of wood-based
Slide 3: Introduction – Steve Macadam, Chief Executive Officer
Introduction Steve Macadam Chief Executive Officer
Slide 4: Long term strategic objectives and 3rd Quarter focus
Long term strategic objectives: Profitably grow specialty revenues to 60+% of total sales Profitably grow structural while reducing exposure to volatility Outgrow the market over the long term 3rd Quarter Focus Tightly manage costs and working capital Strengthen customer and supplier relationships S
Slide 5: Financial Review – Lynn Wentworth, CFO
Lynn Wentworth SVP, Chief Financial Officer & Treasurer Financial Review
Slide 6: Quarterly Revenue
Quarterly Revenue Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Specialty 539.5 580 603.3 553.5 460 456.5 500.8 462.9 Structural 815.2 813.4 798.7 666.6 509.2 518.9 598.1 571.4 Other -25.4 -16.8 -23 -16.6 -28.9 -18.3 -16.9 -18.4 Specialty Unit Volume (14.2%) YOY $187.7 or 15.6% Structural
Slide 7: Quarterly Gross Margin
Quarterly Gross Margin Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Speciatly 76.8 80.4 86.9 77.5 63.5 63.6 70 63.8 Structural 67.8 55.8 55.7 46.8 35.7 44.9 55.9 43.7 Other -4.3 -6.2 -6.2 -3.4 -6.7 -4.8 -6.7 -4.7 BXC generated $102.8 million in gross profit for the quarter, equating to 10
Slide 8: Quarterly Operating Expense
Quarterly Operating Expense Operating Expense 1Q '06 102.3 2Q '06 103.2 3Q '06 104.8 4Q '06 91.9 1Q '07 93.9 2Q '07 98.7 3Q '07 89.9 YOY $14.9 or 14.2% BXC continued to tightly manage operating costs Lowest operating costs since becoming a public company in December 2004
Slide 9: Quarterly Net Income and EPS
Quarterly Net Income and EPS 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 Net Income 9.8 9.6 2.3 -5.9 -0.2 5.4 0.9 EPS 0.32 0.31 0.07 -0.19 -0.01 0.18 0.03
Slide 10: YTD Results
YTD Results revenue YTD '06 3959.1 YTD '07 3055 YOY $904.1 or 22.8% YTD '06 YTD '07 GM % 0.098 0.107 YOY 90 bp Operating Expense YTD '06 310.3 YTD '07 282.5 YOY $27.8 or 9.0% YTD '06 YTD '07 Net Income 21.7 6.1 EPS 0.71 0.2
Slide 11: Cash Flows
Cash Flows Three Months Ended September 29, 2007 (in millions) BXC generated $45.4 million in operating cash flow for the quarter $0.2
Slide 12: Inventory Analysis
Inventory Analysis BXC managed inventory to the demand environment and to support strategic initiatives 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 Inventory 501.2 532.2 471.2 410.7 465.6 470.2 424.5 YOY $46.7 or 9.9% Sequential Quarter Variance Year Ago Quarter Variance Specialty -20.7 -33 Str
Slide 13: Working Capital
Working Capital 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 Average Working Capital 606.7 664.8 666.9 564 565.118 626.929 589.122 Revenue 1376.6 1379 1203.5 940.3 957.114 1081.99 1015.887 COGS 1246.7 1242.5 1082.7 847.7 853.359 962.752 913.085 Working capital turn days remain at 52 vs. 2Q '07 a
Slide 14: Summary 3rd Quarter
Summary 3rd Quarter Managed margins well in challenging environment 10.1% gross margin vs. 10.0% for the same period a year ago Aggressively managed costs 14.2%, $14.9 million decline in operating expenses from a year ago Inventory tightly managed to balance specialty growth objective with overall d
Slide 15: Operations Review – George Judd, President & COO
George Judd President & Chief Operating Officer Operations Review
Slide 16: Unit Volume Growth
Unit Volume Growth Unit Volume Growth
Slide 17: Specialty Unit Growth vs. End Use Markets
Specialty Unit Growth vs. End Use Markets Specialty Unit Growth vs. End Use Markets
Slide 18: Key Initiatives
Key Initiatives To support our strategic objectives: Improve gross margin by over time, 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 exi
Slide 19: 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 20: 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 21: Revenues by Quarter
Revenues by Quarter Revenues by Quarter
Slide 22: Unit Volume by Quarter
Unit Volume by Quarter Unit Volume by Quarter
Slide 23: End-Use Market by Quarter
Source: Data from Resource Information Systems, Inc., or RISI, updated as of October, 2007 weighted using management's estimates. End-Use Market by Quarter End-Use Market by Quarter
Slide 24: Gross Margin by Quarter
Gross Margin by Quarter Gross Margin by Quarter
Slide 25: Profit & Loss Statement by Quarter
Profit & Loss Statement by Quarter Profit & Loss Statement by Quarter
Slide 26: Inventory by Quarter
Inventory by Quarter Inventory by Quarter
Slide 27: Gross Margin % Analysis
Gross Margin % Analysis Gross Margin % Analysis
Slide 28: Revenue Channel Mix Analysis
Revenue Channel Mix Analysis Revenue Channel Mix Analysis
Slide 29: Structural Products Price Trend
Source: Data from Random Lengths Publications, Inc., updated as of October 26, 2007 Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend