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EX-99.1 - EXHIBIT 99.1 - BlueLinx Holdings Inc. | q12017earningsexhibit991.htm |
8-K - 8-K - BlueLinx Holdings Inc. | q12017earnings8k.htm |
BlueLinx Quarterly Review
First Quarter 2017
May 4, 2017
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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 prices, supply, and/or demand for
products which we distribute; general economic and business conditions in the United States; the activities
of competitors; changes in significant operating expenses; changes in the availability of capital and interest
rates; adverse weather patterns or conditions; acts of cyber intrusion; and other factors described in the
“Risk Factors” section in the Company’s Annual Report on Form 10-K for the year ended December 31,
2016, and in its periodic reports filed with the Securities and Exchange Commission from time to time.
Unless otherwise indicated, all forward-looking statements are as of the date they are made, and we
undertake no obligation to update these forward-looking statements, whether as a result of new
information, the occurrence of future events, or otherwise.
Some of the forward-looking statements discuss the company’s plans, strategies, expectations and
intentions. They use words such as “expects”, “may”, “will”, “believes”, “should”, “approximately”,
“anticipates”, “estimates”, “outlook”, and “plans”, and other variations of these and similar words, and one
or more of which may be used in a positive or negative context.
Immaterial Rounding Differences - Immaterial rounding adjustments and differences may exist between
slides, press releases, and previously issued presentations.
Forward-Looking Statements
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BlueLinx reports its financial results in accordance with accounting principles generally accepted in the United States (“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 financial tables in our earnings release or 10-Q. The Company cautions that non-
GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results.
We define Adjusted EBITDA as an amount equal to net income (loss) plus interest expense and all interest expense related items,
income taxes, depreciation and amortization, and further adjusted to exclude certain non-cash items and other adjustments to
Consolidated Net Income (Loss). Further, we also exclude, as an additional measure, the effects of the operational efficiency
initiatives, to determine same-center Adjusted EBITDA, which is useful for period over period comparability.
We present Adjusted EBITDA (and the exclusion of the effects of the operational efficiency initiatives) because it is a primary
measure used by management to evaluate operating performance and, we believe, helps to enhance investors’ overall
understanding of the financial performance and cash flows of our business. However, Adjusted EBITDA is not a presentation made
in accordance with GAAP, and is not intended to present a superior measure of the financial condition from those determined
under GAAP. Adjusted EBITDA, as used herein, is not necessarily comparable to other similarly titled captions of other companies
due to differences in methods of calculation. We believe Adjusted EBITDA is helpful in highlighting operating trends. We also
believe that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in their evaluation of
companies, many of which present an Adjusted EBITDA measure when reporting their results. We compensate for the limitations
of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete understanding of
the factors and trends affecting the business than using GAAP results alone.
The non-GAAP metrics of adjusted same-center net sales and adjusted same-center gross profit excludes the full year effects of
both closed facilities and the SKU rationalization initiative to arrive at these adjusted non-GAAP metrics. This calculation is not a
presentation made in accordance with GAAP, and is not intended to present a superior measure of the financial condition from
those determined under GAAP. Adjusted same-center net sales and adjusted same-center gross profit, as used herein, are not
necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.
We believe adjusted same-center net sales and adjusted same-center gross profit are helpful in presenting comparability across
periods without the full-year effect of our operational efficiency initiatives. We also believe that these non-GAAP metrics are used
by securities analysts, investors, and other interested parties in their evaluation of our company, to illustrate the effects of these
initiatives. We compensate for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to
provide a more complete understanding of the factors and trends affecting the business than using GAAP results alone.
Non-GAAP Financial Measures
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Mitch Lewis
Chief Executive Officer
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Key Emphasis
• Initiatives to delever the Company
• Real estate optimization
• Working capital improvements
• Emphasize local customer interaction to grow
market share
• Focus on sales excellence and customer
experience
Key Emphasis for BlueLinx
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Susan O’Farrell
Chief Financial Officer and Treasurer
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Executive Summary – First Quarter Results
• Net Sales of $428.6 million
• Adjusted same-center net sales increased $9.0 million from Q1 2016
• Gross Profit of $54.4 million
• Gross Margin of 12.7%, an increase of 60 basis points from Q1 2016
• Selling, General, and Administrative costs were $52.9 million, down $2.3
million from Q1 2016
• Net Income of $0.6 million, up $6.7 million from prior year
• Diluted earnings per share of $0.06
• Adjusted EBITDA of $7.3 million, up $0.3 million from Q1 2016
• Same-center Adjusted EBITDA was up $1.4 million from Q1 2016
• Operating Working Capital improved by $56.1 million from prior year
• Debt principal reduction of $111.3 million from Q1 2016
• July 2017 mortgage obligation fully satisfied three months ahead
of schedule
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$272.5
$221.2
$159.4
$99.4
Q1 '16 Q1 ‘17
Mortgage
Revolving credit facilities
Delevering the Business
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$320.6
$431.9
($111.3)
• Mortgage and revolving credit facilities decreased by $60.0 million and $51.3 million,
respectively from this period last year
• Sold five properties during the first quarter 2017, enabling us to fully satisfy our July
2017 mortgage obligation of $60 million three months ahead of schedule
In millions
For financial schedules, please reference our
Earnings Release and 10-Q
available on our website
www.BlueLinxCo.com