Attached files
| file | filename |
|---|---|
| 8-K - 8-K - BlueLinx Holdings Inc. | d300911d8k.htm |
| EX-99.1 - EX-99.1 - BlueLinx Holdings Inc. | d300911dex991.htm |
 BlueLinx Quarterly Review
4th Quarter 2011
Exhibit 99.2 |
 BlueLinx
Holdings Inc.
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
by
us
to
be
reasonable,
are
inherently
uncertain.
Forward-
looking
statements
involve
risks
and
uncertainties,
including,
but
not
limited
to,
economic,
competitive,
governmental
and
technological
factors
outside
of
our
control,
that
may
cause
our
business,
strategy
or
actual
results
to
differ
materially
from
the
forward-looking
statements.
These
risks
and
uncertainties
may
include,
among
other
things:
changes
in
the
supply
and/or
demand
for
products
which
we
distribute,
especially
as
a
result
of
conditions
in
the
residential
housing
market;
general
economic
and
business
conditions
in
the
United
States;
the
activities
of
competitors;
changes
in
significant
operating
expenses;
changes
in
the
availability
of
capital;
the
ability
to
identify
acquisition
opportunities
and
effectively
and
cost-efficiently
integrate
acquisitions;
adverse
weather
patterns
or
conditions;
acts
of
war
or
terrorist
activities;
variations
in
the performance of the financial markets; and other factors described in the
"Risk Factors" section in our Annual Report on Form
10-K
for
the
fiscal
year
ended
January
1,
2011,
and
in
our
other
periodic
reports
filed
with
the
SEC.
In
addition,
the
statements in this presentation are made as of February 15, 2012. We
undertake no obligation to update any of the forward-looking
statements
made
herein,
whether
as
a
result
of
new
information,
future
events,
changes
in
expectation
or
otherwise.
These
forward-looking
statements
should
not
be
relied
upon
as
representing
our
views
as
of
any
date
subsequent
to
February
15,
2012.
Use
of
Non-GAAP
and
Adjusted
Financial
Information
-
To
supplement
GAAP
financial
information,
we
use
adjusted
measures
of
operating
results
which
are
non-GAAP
measures.
This
non-GAAP
adjusted
financial
information
is
provided
as
additional
information
for
investors.
These
adjusted
results
exclude
certain
costs,
expenses,
gains
and
losses,
and
we
believe
their
exclusion
can
enhance
an
overall
understanding
of
our
past
financial
performance
and
also
our
prospects
for
the
future.
These
adjustments
to
our
GAAP
results
are
made
with
the
intent
of
providing
both
management
and
investors
a
more
complete
understanding
of
our
operating
performance
by
excluding
non-recurring,
infrequent
or
other
non-cash
charges
that
are
not
believed
to
be
material
to
the
ongoing
performance
of
our
business.
The
presentation
of
this
additional
information
is
not
meant
to
be
considered
in
isolation
or
as
a
substitute
for
GAAP
measures
of
net
earnings,
diluted
earnings
per
share
or
net
cash
provided
by
(used
in)
operating
activities
prepared
in
accordance
with
generally
accepted
accounting
principles
in
the
United
States. |
 3
4
th
Quarter Highlights
Revenue
Up 6.3% to $391.1 million
Housing Starts
Total starts increased 22.6% from the same period last year;
Single family starts increased 2.4% from the same period last year
Prices
Average 4Q ’11 benchmark wood-based structural prices were up
approximately 1.5% compared to 4Q ’10
Unit Volume
Up 5.0% relative to the same period last year
Gross Margin
Total 12.3% vs. 12.1% in 4Q ’10
Net Loss
($10.3) million vs. ($20.2) million in 4Q ’10
EPS
($0.17) per diluted share
Cash Flow
Generated $33.9 million of operating cash flow vs. $18.0 million
for
the year ago quarter
Excess Availability
$118.3 million excess availability on revolving credit facilities
Quarterly Highlights |
 4
Doug Goforth
Chief Financial Officer and Treasurer
Introduction and Quarterly Review |
 5
Quarterly Revenue
Revenues
($ in millions)
235.0
316.6
297.1
154.8
161.3
193.6
187.4
165.7
221.4
240.7
4Q '10
1Q '11
2Q '11
3Q '11
4Q '11
$367.9
$390.6
$500.8
$472.9
$391.1
Variance Analysis
$14.5
$4.3
$4.4
Specialty Unit Volume 6.6%
YOY $23.2
or 6.3%
Structural Unit Volume 2.8%
Price/Other
$23.2
41%
59%
4Q ‘10
4Q ‘11
59%
41%
Vs. Year Ago
Revenue up 6.3%
Specialty sales up 8.7%, unit volume
up 6.6%
Structural sales up 7.0%, unit volume
up 2.8%
Specialty product sales = 59% of total
sales
% by Product
Specialty
Structural
Other
Structural
Specialty |
 6
2011 Full Year Results
Revenues
($ in millions)
$1,804.4
$1,755.4
FY '10
FY '11
Operating Expenses
($ in millions)
$218.4
$234.5
FY '10
FY '11
Gross Margin %
11.7%
12.0%
FY '10
FY '11
EBITDA
($ in million)
$1.8
($11.1)
FY '10
FY '11
($11.5)
$12.6
$1.1
Total
($1.4)
$1.4
$-
Gain from insurance settlement
$0.3
($1.4)
($1.1)
Facility consolidation and severance
($10.6)
$10.6
$-
Gain on real estate
($3.0)
$-
($3.0)
Tender offer expenses
$5.2
$-
$5.2
OSB lawsuit settlement
($2.0)
$2.0
$-
Gain on lease modification
FY‘11
FY‘10
Chg
Significant Special Items
($11.5)
$12.6
$1.1
Total
($1.4)
$1.4
$-
Gain from insurance settlement
$0.3
($1.4)
($1.1)
Facility consolidation and severance
($10.6)
$10.6
$-
Gain on real estate
($3.0)
$-
($3.0)
Tender offer expenses
$5.2
$-
$5.2
OSB lawsuit settlement
($2.0)
$2.0
$-
Gain on lease modification
FY‘11
FY‘10
Chg
Significant Special Items |
 7
Cash Flows
BXC generated $33.9 million in operating cash flow for the quarter
Unaudited
(in million’s)
Q410
Q111
Q211
Q311
Q411
FY 2011
FY 2010
Cash flows from operating activities:
Net loss
(20.2)
$
(12.3)
$
(9.8)
$
(6.2)
$
(10.3)
$
(38.6)
$
(53.2)
$
Adjustments to reconcile net loss
to net cash provided by (used in)
operations:
Depreciation and amortization
3.1
2.9
2.6
2.6
2.4
10.6
13.4
Amortization of debt issuance
costs 0.9
0.4
0.6
0.9
0.9
2.9
2.0
Payments from terminating
the Georgia-Pacific supply agreement -
-
-
-
-
-
4.7
(Gain) loss from sale of
facilities -
(7.2)
-
0.3
(3.7)
(10.6)
-
Gain from property
insurance settlement -
-
-
(1.2)
-
(1.2)
-
Changes associated
with the ineffective interest rate swap (1.4)
(1.8)
-
-
0.1
(1.7)
(4.6)
Write-off debt of issuance
costs -
-
-
-
-
-
0.2
Vacant property
changes 0.1
-
-
-
(0.3)
(0.3)
0.1
Gain on modification of
lease agreement -
-
-
(2.0)
-
(2.0)
-
Deferred income tax
(benefit) provision -
(0.2)
-
(0.1)
0.3
-
(0.6)
Share-based compensation
1.1
0.8
0.3
0.4
0.4
2.0
3.9
Decrease in restricted cash
related to the ineffective interest rate swap,
insurance, and other 0.5
-
0.4
-
0.5
1.0
6.6
Changes in assets and
liabilities:
Receivables 47.4
(50.7)
(35.8)
21.0
45.9
(19.7)
-
Inventories
7.3
(32.1)
7.7
8.9
18.2
2.7
(15.1)
Accounts payable
(17.9)
32.1
0.4
(5.9)
(20.7)
6.0
(1.8)
Changes in other
working capital (5.8)
3.8
(5.0)
2.7
(1.7)
(0.4)
15.5
Other
2.9
1.5
0.3
(3.9)
1.8
(0.3)
(1.0)
Net cash provided by (used in) operating activities
18.0
(62.8)
(38.3)
17.5
33.9
(49.6)
(29.9)
Cash flows from investing activities:
Property and equipment investments
(1.4)
(3.7)
(1.8)
(0.5)
(1.2)
(7.2)
(4.1)
Proceeds from disposition of assets
-
8.8
0.2
-
9.4
18.3
0.7
Net cash (used in) provided by investing activities
(1.4)
5.1
(1.6)
(0.5)
8.2
11.1
(3.4)
Cash flows from financing activities:
Repurchase of common stock
-
-
-
-
-
-
(0.7)
Repayments on revolving credit facilities
(136.3)
(73.5)
(98.2)
(177.1)
(129.8)
(478.6)
41.2
Borrowings from revolving credit facilities
131.5
116.8
146.6
106.6
105.8
475.9
-
Payment of principal on mortgage
-
-
-
(38.7)
(3.7)
(42.4)
-
Payments on capital lease obligations
(0.1)
(0.1)
(0.1)
(1.0)
(0.2)
(1.4)
(0.6)
(Decrease) increase in bank overdrafts
(7.5)
12.6
(6.9)
1.5
(8.0)
(0.8)
(4.1)
(Increase) decrease in restricted cash related to the mortgage
(2.8)
(6.2)
(1.6)
35.5
(7.1)
20.6
(11.2)
Debt financing costs
-
-
-
(2.6)
(0.1)
(2.7)
(6.5)
Proceeds from stock offering less expenses paid
-
-
-
58.6
(0.1)
58.5
-
Net cash (used in) provided by financing activities
(15.2)
49.6
39.8
(17.2)
(43.1)
29.1
18.1
Increase (decrease) in cash
1.4
(8.1)
(0.1)
(0.2)
(1.0)
(9.4)
(15.2)
Cash balance, beginning of period
12.9
14.3
6.2
6.1
5.9
14.3
29.5
Cash balance, end of period
14.3
$
6.2
$
6.1
$
5.9
$
4.9
$
4.9
$
14.3
$
|
 Debt
U.S. Revolver
$115.7 million excess availability as of December 31, 2011
LIBOR plus 3.75% as of December 31, 2011
$400 million facility with additional $100 million uncommitted accordion
facility –
Matures January 7, 2014
–
No financial performance covenants provided Excess Availability is more than the
greater of (A) $30 million or (B) the amount equal to 15% of the lesser of
the borrowing base or $60 million. The borrowing base as of December 31,
2011 was $207.2 million.
Canadian Revolver
$2.6 million excess availability as of December 31, 2011
LIBOR or Bankers’
Acceptance plus 2.50%; Canadian Prime Loan or U.S. Base Rate plus 1.00%
$10 million facility with additional $5 million uncommitted accordion
facility –
Matures August 2014
Mortgage (10 Year Term @ 6.35%)
Matures July 2016
Real estate under the mortgage appraised at approximately $360 million in June
2006 LCR Trap is triggered if operating TTM EBITDAR coverage ratio is
less than 2.5x for two consecutive quarters
Subsequent to the quarter ended July 2, 2011, we negotiated an amendment to our
mortgage agreement which in part allowed for the release of the $38.3
million LCR trap. The cash was used for an immediate prepayment on the
mortgage loan without incurring a
prepayment premium
During fiscal 2011 we sold certain properties which reduced our mortgage loan by
$6.5 million. These payments were applied to the mortgage loan in
fiscal 2012 Principal
2012 $9.0 million
2014 $3.0 million
2016 $225.3 million
2013 $2.8 million
2015 $3.1 million
8 |
 9
Cash Cycle
TTM Cash Cycle days at 56, down 2 days sequentially and
up 4 days compared to the prior year quarter
Cash Cycle Days
(in days)
45
48
50
49
48
(25)
(28)
(28)
(27)
(26)
32
35
36
36
34
-40
-20
0
20
40
60
80
100
4Q '10
1Q '11
2Q '11
3Q '11
4Q '11
58
58
52
55
56
Cash
cycle
days
equal
accounts
receivable
days
+
inventory
days
–
accounts
payable
days
using
a
trailing
twelve
month
average
beginning
and
ending
balance.
The
days
calculations
use
calendar
days.
A/R
Inv
A/P & OD's |
 10
Closing Remarks
4
th
Quarter focus
–
Specialty growth
–
Customer care
–
Gross margin
Long term strategic objectives:
–
Profitably
grow
specialty
revenues
to
60+%
of
total
sales
–
Profitably
manage
structural
–
Profitably
outgrow
the
market
over
the
long
term |
 11
Appendix
14
Channel Mix Analysis
20
Reconciliation of GAAP Debt to Non-GAAP Net Debt
16
Gross Margin by Quarter
21
Reconciliation of GAAP Net cash used in operating activities to Non-GAAP
EBITDA 13
Revenues by Quarter
19
Structural Product Price Trends
17
Gross Margin % Analysis
18
Operating Expense by Quarter
15
Unit Volume by Quarter
12
Profit and Loss Statement by Quarter
PAGE
TOPIC |
 12
Profit & Loss Statement by Quarter
Profit & Loss Statement $ in millions
(1)
, except per share amounts
2009
2010
2011
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Sales
$ 431.1
$ 540.8
$ 464.7
$ 367.9
$ 390.6
$ 500.8
$ 472.9
$ 391.1
$ 1,646.1
$ 1,804.4
$ 1,755.4
Cost of Goods Sold
378.8
476.7
414.8
323.6
344.3
443.2
414.6
343.2
1,452.9
1,593.7
1,545.3
Gross Profit
52.3
64.1
49.9
44.3
46.3
57.6
58.3
47.9
193.2
210.7
210.1
Gross Margin %
12.1%
11.9%
10.7%
12.1%
11.8%
11.5%
12.3%
12.3%
11.7%
11.7%
12.0%
Operating Expenses
SG&A
56.5
57.1
54.1
53.4
48.5
56.8
54.5
48.1
192.5
221.2
207.8
D&A
3.8
3.4
3.1
3.1
2.9
2.6
2.6
2.4
16.9
13.4
10.6
Total Operating Expenses
60.3
60.5
57.2
56.5
51.4
59.4
57.1
50.5
209.4
234.6
218.4
Operating Income
(8.0)
3.6
(7.3)
(12.2)
(5.1)
(1.8)
1.2
(2.6)
(16.2)
(23.9)
(8.3)
Interest Expense
7.3
8.2
9.1
9.1
9.1
7.7
7.0
6.8
32.5
33.7
30.6
(0.8)
(1.3)
(1.2)
(1.3)
(1.8)
-
-
-
6.2
(4.6)
(1.8)
Write-off of debt issue costs
-
-
0.2
-
-
-
-
-
1.4
0.2
-
Other Expense/(Income)
0.2
-
0.2
0.1
-
0.1
0.3
0.1
0.6
0.6
0.5
Income before Tax
(14.7)
(3.3)
(15.6)
(20.1)
(12.4)
(9.6)
(6.1)
(9.5)
(56.9)
(53.8)
(37.6)
Tax Expense/(Benefit)
-
0.1
(0.7)
0.1
(0.1)
0.2
0.1
0.8
4.6
(0.6)
1.0
Net Income/(Loss)
$ (14.7)
$ (3.4)
$ (14.9)
$ (20.2)
$ (12.3)
$ (9.8)
$ (6.2)
$ (10.3)
$ (61.5)
$ (53.2)
$ (38.6)
Diluted EPS
$ (0.48)
$ (0.11)
$ (0.48)
$ (0.66)
$ (0.40)
$ (0.31)
$ (0.12)
$ (0.17)
$ (1.98)
$ (1.73)
$ (0.89)
(1)
Immaterial rounding adjustments and differences may exist between appendix slides, presentation
slides, press releases and previously issued presentations. Changes associated with the
ineffective interest rate swap
2011
2010 |
 Revenues by Quarter
13 |
 14
Revenue Channel Mix Analysis
4Q10
1Q11
2Q11
3Q11
4Q11
4Q11
Variance
from Year
Ago Qtr
Structural Products
Warehouse
65.8%
64.5%
67.5%
68.5%
70.6%
4.8%
Direct
22.8%
22.2%
19.9%
19.7%
19.1%
(3.7%)
Reload
11.4%
13.3%
12.6%
11.8%
10.3%
(1.1%)
Total
100.0%
100.0%
100.0%
100.0%
100.0%
0.0%
Specialty Products
Warehouse
67.7%
65.8%
61.4%
64.9%
69.4%
1.7%
Direct
19.1%
22.3%
22.9%
21.3%
20.1%
1.0%
Reload
13.2%
11.9%
15.7%
13.8%
10.5%
(2.7%)
Total
100.0%
100.0%
100.0%
100.0%
100.0%
0.0%
Total Products
Warehouse
66.9%
65.3%
63.7%
66.3%
69.9%
3.0%
Direct
20.6%
22.3%
21.8%
20.7%
19.7%
(0.9%)
Reload
12.5%
12.4%
14.5%
13.0%
10.4%
(2.1%)
Total
100.0%
100.0%
100.0%
100.0%
100.0%
0.0% |
 15
Unit Volume by Quarter
2009
2010
2011
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Specialty
2.2%
13.5%
1.3%
5.9%
(0.2%)
10.7%
11.4%
6.6%
(32.8%)
5.7%
7.4%
Structural
0.3%
9.7%
(4.3%)
(16.5%)
(25.2%)
(18.8%)
(14.0%)
2.8%
(40.3%)
(2.5%)
(15.1%)
Total
1.4%
11.9%
(1.2%)
(4.3%)
(11.8%)
(3.5%)
0.1%
5.0%
(36.6%)
2.2%
(2.8%)
2011
Unit Volume Change
2010 |
 16
Gross Margin by Quarter
Gross Margin $ in millions
2009
2010
2011
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Specialty
(1)
$ 33.5
$ 44.3
$ 37.9
$ 32.5
$ 32.4
$ 45.6
$ 44.8
$ 35.8
$ 132.9
$ 148.2
$ 158.6
Structural
(1)
21.7
24.2
15.9
14.7
17.3
16.6
18.7
15.4
73.1
76.5
68.0
Other
(2)
(2.9)
(4.4)
(3.9)
(2.9)
(3.4)
(4.6)
(5.2)
(3.2)
(12.8)
(14.0)
(16.4)
Total
$ 52.3
$ 64.1
$ 49.9
$ 44.3
$ 46.3
$ 57.6
$ 58.3
$ 48.0
$ 193.2
$ 210.7
$ 210.2
Gross Margin %'s
Specialty
(1)
14.4%
15.5%
14.4%
14.7%
13.8%
14.4%
15.1%
14.9%
14.0%
14.7%
14.6%
Structural
(1)
10.7%
9.1%
7.4%
9.5%
10.7%
8.6%
10.0%
9.3%
9.9%
9.1%
9.6%
Other
(2)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Total
12.1%
11.9%
10.7%
12.1%
11.8%
11.5%
12.3%
12.3%
11.7%
11.7%
12.0%
(1)
Includes product rebates.
(2)
Includes competitive discounts, cash discounts, Canadian conversion, and accruals.
2010
2011 |
 17
Gross Margin % Analysis
4Q10
1Q11
2Q11
3Q11
4Q11
4Q11
Variance
from Year
Ago Qtr
Structural Products
(1)
Warehouse
12.0%
13.7%
11.0%
12.6%
11.5%
(0.5%)
Direct
4.1%
3.3%
3.6%
3.7%
3.6%
(0.5%)
Reload
5.5%
8.3%
3.5%
5.1%
4.8%
(0.7%)
Total
9.5%
10.7%
8.6%
10.0%
9.3%
(0.2%)
Specialty Products
(1)
Warehouse
16.5%
16.0%
17.1%
17.8%
16.7%
0.2%
Direct
9.8%
8.2%
8.6%
8.8%
10.3%
0.5%
Reload
12.5%
11.9%
12.2%
12.2%
11.2%
(1.3%)
Total
14.7%
13.8%
14.4%
15.1%
14.9%
0.2%
Total
(1) (2)
12.1%
11.8%
11.5%
12.3%
12.3%
0.2%
(1)
Includes product rebates.
(2)
Includes competitive discounts, cash discounts, Canadian conversion, and accruals.
|
 18
Operating Expense by Quarter
Operating Expense
(1)
$ in millions
2009
2010
2011
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Payroll & related
$38.2
$38.8
$38.2
$36.6
$37.8
$37.9
$38.1
$35.5
$147.9
$151.8
$149.3
General maintenance
5.1
5.3
5.2
5.0
5.1
5.6
5.3
5.4
19.3
20.6
21.4
Depreciation and amortization
3.7
3.4
3.1
3.1
2.9
2.6
2.6
2.4
17.0
13.3
10.5
Fuel
3.1
3.4
3.2
3.1
3.4
4.5
4.2
3.7
9.4
12.8
15.8
Gain on sale of assets
(0.2)
0.2
0.0
0.1
(7.3)
(0.3)
(1.2)
(4.4)
(11.1)
0.1
(13.2)
Other
(2)
10.4
9.4
7.5
8.6
9.5
9.1
8.1
7.9
26.9
35.9
34.6
Total
$60.3
$60.5
$57.2
$56.5
$51.4
$59.4
$57.1
$50.5
$209.4
$234.5
$218.4
(1)
Immaterial rounding adjustments and differences may exist between appendix slides,
presentation slides, press releases and previously issued presentations.
(2)
2Q '09 includes a $17.4 million gain on the early cancellation of the Master Supply
Agreement with Georgia-Pacific Corporation. 2010
2011 |
 19
Structural Products Price Trend
Source:
Data
from
Random
Lengths
Publications,
Inc.,
updated
as
of
December
30,
2011 |
 Reconciliation of GAAP to Non-GAAP
BlueLinx Holdings Inc.
Unaudited Reconciliation of GAAP Debt to Non-GAAP Net Debt
in millions
January 1,
2011
December 31,
2011
Revolving Credit Facilities
$ 97.2
$ 94.5
Mortgage
285.7
243.2
TOTAL DEBT
$ 382.9
$ 337.7
Less:Cash and Cash Equivalents
(14.3)
(4.9)
Mortgage LCR Trap
(30.6)
(10.0)
Net Debt
$ 338.0
$ 322.8
Excess Availability
$ 103.4
$ 118.3
Minimum Required
$ 40.0
$ 31.1
20 |
 Reconciliation of GAAP to Non-GAAP |
 www.BlueLinxco.com |