false000130178700013017872023-08-012023-08-01


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 1, 2023
 
BlueLinx Holdings Inc.
(Exact name of registrant specified in its charter)
 
Delaware001-3238377-0627356
(State or other(Commission(I.R.S. Employer
jurisdiction of
incorporation)		File Number)Identification No.)
  
1950 Spectrum Circle, Suite 300, Marietta, GA
30067
(Address of principal executive offices)(Zip Code)

 
Registrant's telephone number, including area code: (770) 953-7000
 _________________________________________________
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareBXCNew York Stock Exchange


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02    Results of Operations and Financial Condition         

On August 1, 2023, BlueLinx Holdings Inc. ("BlueLinx" or "the Company”) issued a press release announcing its financial results for the fiscal second quarter ended July 1, 2023. A copy of BlueLinx's press release is furnished as Exhibit 99.1 hereto.

On August 2, 2023, as previously announced, BlueLinx will hold a teleconference and audio webcast to discuss its financial results from the fiscal second quarter ended July 1, 2023. A copy of supplementary materials that will be referred to in the teleconference and webcast, and which will be posted to the Company's website, is furnished as Exhibit 99.2 hereto.

The information included in this Item 2.02, as well as Exhibits 99.1 and 99.2, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.


Item 9.01     Financial Statements and Exhibits

(d)        Exhibits:

The following exhibits are attached with this Current Report on Form 8-K:

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
   
  BlueLinx Holdings Inc.
  (Registrant)
   
Dated: August 1, 2023By:/s/ Kelly C. Janzen
  Kelly C. Janzen
  Senior Vice President and Chief Financial Officer

 


 
 


Exhibit 99.1

bluelogotagline.jpg

BlueLinx Announces Second Quarter 2023 Results
MARIETTA, GA, August 1, 2023 – BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, today reported financial results for the three months ended July 1, 2023.

SECOND QUARTER 2023 HIGHLIGHTS
(all comparisons are versus the prior year period unless otherwise noted)

•Net sales of $816 million, a decrease of $423 million
•Gross profit of $136 million, gross margin of 16.6% and specialty product gross margin of 19.1%
•Net income of $24 million, or $2.70 diluted earnings per share
•Adjusted net income of $26 million, or $2.91 adjusted diluted earnings per share
•Adjusted EBITDA of $49 million, 6.0% of net sales
•Operating cash generated of $64 million and free cash flow of $59 million
•Available liquidity increased to $765 million, including $418 million cash on hand
•Net debt of $153 million and net leverage ratio of 0.6x
•Completed $12 million of share repurchases

“During the second quarter, we maintained both our price and cost discipline to deliver solid results in a market that continues to be soft when compared to last year,” stated Shyam Reddy, President, and CEO of BlueLinx. “Our specialty product gross margins improved to just over 19%, and we generated operating cash of $64 million during the period, further strengthening our overall financial condition. I am very pleased with the team’s focus on our strategic initiatives and the quality of their execution,” continued Reddy.

“The building products market is improving, and two step distribution will continue to play a meaningful role given our product mix and value proposition,” continued Reddy. “We remain focused on the execution of our growth strategy and consistent in our approach to capital allocation to drive long-term value creation. During the second quarter, we invested $5 million in capital expenditures and returned $12 million to shareholders through repurchases of the company’s common stock under our existing $100 million share repurchase program. Our liquidity is exceptional and at the end of the period, net leverage was 0.6x.”

SECOND QUARTER 2023 FINANCIAL PERFORMANCE
In the second quarter of 2023, net sales were $816 million, a decrease of $423 million, or 34% when compared to the second quarter of 2022. Gross profit was $136 million, a decrease of $66 million, or 33%, year-over-year, and gross margin was 16.6%, up 30 basis points from the same period last year.

Net sales of specialty products, which includes products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels and industrial products were $571 million, a decrease of $217 million, or 28% when compared to the second quarter of 2022. This decline was due to a combination of deflation and lower volume, primarily related to engineered wood products. Gross profit from specialty product sales was $109 million, a decrease of $71 million, or 40% when compared to the second quarter of last year. Gross margin was 19.1% compared to 22.9% in the prior year period.

Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, decreased $207 million, or 46%, to $245 million in the second quarter. The decrease in structural sales was due primarily to the year-over-year declines in the average composite price of framing lumber and structural panels, which were 49% and 39% respectively. Gross profit from sales of structural products was $27 million, an increase of $6 million from the prior year
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period, and gross margin was 11.0%, up from 4.7% in the prior year period which was impacted by wood-based commodity price deflation and a lower of cost or market adjustment recorded that was not repeated during the current period.

Selling, general and administrative (“SG&A”) expenses were $88.8 million in the second quarter, $2.6 million lower than the prior year period. The year-over-year decrease in SG&A was due primarily to lower delivery costs and variable compensation, partially offset by the inclusion of incremental operating expenses related to our acquisition of Vandermeer Forest Products.

Net income was $24 million, or $2.70 per diluted share, versus $71 million, or $7.48 per diluted share, in the prior year period. Adjusted Net Income was $26 million, or $2.91 per diluted share compared to $73 million, or $7.63 per diluted share in the second quarter of last year.

Adjusted EBITDA was $49 million, or 6.0% of net sales, for the second quarter of 2023, as compared to $112 million, or 9.1% of net sales in the second quarter of 2022.

Net cash generated from operating activities was $64 million in the second quarter of 2023 and free cash flow was $59 million. The cash generated during the second quarter was driven by net income and a net benefit from working capital, primarily related to a reduction of approximately $30 million in inventory.

CAPITAL ALLOCATION AND FINANCIAL POSITION
During the second quarter, BlueLinx invested $5 million of cash in capital investments used to improve its distribution facilities and upgrade its fleet. Additionally, the Company purchased approximately $12 million of the company’s common stock through open market transactions under its $100 million dollar share repurchase program, with $22 million remaining under the current authorization as of July 1, 2023. Under BlueLinx’s existing share repurchase authorization, the Company may repurchase its common stock at any time or from time to time, without prior notice, subject to prevailing market conditions and other considerations.

As of July 1, 2023, total debt was $571 million, consisting of $300 million of senior secured notes that mature in 2029 and $271 million of finance leases. Available liquidity was $765 million which included an undrawn revolving credit facility that had $346 million of availability plus cash and cash equivalents of $418 million. Net debt was $153 million, resulting in a net leverage ratio of 0.6x on trailing twelve-month Adjusted EBITDA of $259 million.

THIRD QUARTER 2023 OUTLOOK
Through the first four weeks of the third quarter of 2023, specialty product gross margin was in the range of 18.5% to 19.5% with average daily volumes consistent with what we experienced during the second quarter of 2023. Structural product gross margin was in the range of 12% to 13% given recent increases in wood-based commodity prices with relatively similar average daily sales volumes compared to the second quarter of 2023.

CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on August 2, 2023, at 10:00 a.m. Eastern Time, accompanied by a supporting slide presentation.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the BlueLinx website at https://investors.bluelinxco.com/events-and-presentations/default.aspx, and a replay of the webcast will be available at the same site shortly after the webcast is complete.

To participate in the live teleconference:

Domestic Live: 1-877-407-4018
International Live: 1-201-689-8471

To listen to a replay of the teleconference, which will be available through August 17, 2023:

Domestic Replay: 1-844-512-2921
International Replay: 1-412-317-6671
Passcode: 13740060
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ABOUT BLUELINX
BlueLinx (NYSE: BXC) is a leading U.S. wholesale distributor of residential and commercial building products with both branded and private-label SKUs across product categories such as lumber, panels, engineered wood, siding, millwork, and industrial products. With a strong market position, broad geographic coverage footprint servicing 50 states, and the strength of a locally focused sales force, we distribute our comprehensive range of products to approximately 15,000 customers including national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers and industrial manufacturers. BlueLinx provides a wide range of value-added services and solutions to our customers and suppliers. We are headquartered in Georgia, with executive offices located at 1950 Spectrum Circle, Marietta, Georgia, and we operate our distribution business through a broad network of distribution centers. BlueLinx encourages investors to visit its website, www.BlueLinxCo.com, which is updated regularly with financial and other important information about BlueLinx.

INVESTOR & MEDIA CONTACTS
Noel Ryan or Stefan Neely
(720) 778-2415
investor@bluelinxco.com

Marketing & Communications
mediarequest@bluelinxco.com

NON-GAAP MEASURES
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. Any non-GAAP measures used herein are reconciled to their most directly comparable GAAP measures herein or in the financial tables accompanying this news release. The Company cautions that non-GAAP measures are not presentations made in accordance with GAAP and are not intended to present superior measures of our financial condition from those measures determined under GAAP. Non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. The Company further cautions that its non-GAAP measures, as used herein, are not necessarily comparable to other similarly titled measures of other companies due to differences in methods of calculation.

Adjusted EBITDA and Adjusted EBITDA Margin. BlueLinx defines 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 for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items.

The Company presents Adjusted EBITDA because it is a primary measure used by management to evaluate operating performance. Management believes this metric helps to enhance investors’ overall understanding of the financial performance and cash flows of the business. Management also believes Adjusted EBITDA is helpful in highlighting operating trends. 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 determine our Adjusted EBITDA Margin, which we sometimes refer to as our Adjusted EBITDA as a percentage of net sales, by dividing our Adjusted EBITDA for the applicable period by our net sales for the applicable period. We believe that this ratio is useful to investors because it more clearly defines the quality of earnings and operational efficiency of translating sales to profitability.

Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted). BlueLinx defines Adjusted Net Income as net income adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items, further adjusted for the tax impacts of such reconciling items. BlueLinx defines Adjusted Earnings Per
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Share (basic and/or diluted) as the Adjusted Net Income for the period divided by the weighted average outstanding shares (basic and/or diluted) for the periods presented.

We believe that Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are useful to investors to enhance investors’ overall understanding of the financial performance of the business. Management also believes Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are helpful in highlighting operating trends.

Free Cash Flow. BlueLinx defines free cash flow as net cash provided by operating activities less total capital expenditures. Free cash flow is a measure used by management to assess our financial performance, and we believe it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures that can be used for, among other things, investment in our business, strengthening our balance sheet, and repayment of our debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure.

Net Debt and Net Leverage Ratio. BlueLinx calculates net debt as its total short- and long-term debt, including outstanding balances under our senior secured notes and revolving credit facility and the total amount of its obligations under financing leases, less cash and cash equivalents. We believe that net debt is useful to investors because our management reviews our net debt as part of its management of overall liquidity, financial flexibility, capital structure and leverage, and creditors and credit analysts monitor our net debt as part of their assessments of our business. We determine our overall net leverage ratio by dividing our net debt by trailing twelve-month Adjusted EBITDA. We believe that this ratio is useful to investors because it is an indicator of our ability to meet our future financial obligations. In addition, the ratio is a measure that is frequently used by investors and creditors.

FORWARD-LOOKING STATEMENTS
This press release 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”, “expect,” “estimate,” “intend,” “may”, “project,” “plan,” “should”, “will”, “will be,” “will likely continue,” “will likely result””, “would” or words or phrases of similar meaning.

The forward-looking statements in this press release include statements about our confidence in the Company’s long-term growth strategy; our ability to capitalize on supplier-led price increases and our value-added services; our areas of focus and management initiatives; the demand outlook for construction materials and expectations regarding new home construction, repair and remodel activity and continued investment in existing and new homes; our positioning for long-term value creation; our efforts and ability to generate profitable growth; our ability to increase net sales in specialty product categories; our ability to generate profits and cash from sales of specialty products; our multi-year capital allocation plans; our ability to manage volatility in wood-based commodities; our improvement in execution and productivity; our efforts and ability to maintain a disciplined capital structure and capital allocation strategy; our ability to maintain a strong balance sheet; our ability to focus on operating improvement initiatives and commercial excellence; and whether or not the Company will continue any share repurchases.

Forward-looking statements in this press release 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 that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. These risks and uncertainties include those discussed in greater detail in our filings with the Securities and Exchange Commission. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy, or actual results to differ materially from those contained in forward-looking statements. Factors that may cause these differences include, among other things: pricing and product cost variability; volumes of product sold; competition; changes in the supply and/or demand for products that we distribute; the cyclical nature of the industry in which we operate; housing market conditions; consolidation among competitors, suppliers, and customers; disintermediation risk; loss of products or key suppliers and manufacturers; our dependence on international suppliers and manufacturers for certain products; potential acquisitions and the integration and completion of such acquisitions; business disruptions; effective inventory management relative to our sales volume or the prices of the products we distribute; information technology security risks and business interruption risks; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, wars, or other unexpected events;
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successful implementation of our strategy; wage increases or work stoppages by our union employees; costs imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; the effect of global pandemics such as COVID-19 and other widespread public health crisis and their effects on our business ; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating the business; the fact that we have consummated certain sale leaseback transactions with resulting long-term non-cancelable leases, many of which are or will be finance leases; the fact that we lease many of our distribution centers, and we would still be obligated under these leases even if we close a leased distribution center; inability to raise funds necessary to finance a required repurchase of our senior secured notes; a lowering or withdrawal of debt ratings; changes in our product mix; increases in fuel and other energy prices; availability of third-part freight providers; changes in insurance-related deductible/retention reserves based on actual loss experience; the possibility that the value of our deferred tax assets could become impaired; changes in our expected annual effective tax rate could be volatile; changes in actuarial assumptions for our pension plan; the costs and liabilities related to our participation in multi-employer pension plans could increase; the risk that our cash flows and capital resources may be insufficient to service our existing or future indebtedness; variable interest rate risk under certain indebtedness changes in, or interpretation of, accounting principles; stock price fluctuations; the possibility that we could be the subject of securities class action litigation due to stock price volatility; possibility of unfavorable research about our business or industry or lack of coverage or reporting; activities of activist shareholders; and indebtedness terms that limit our ability to pay dividends on common stock.

Given these risks and uncertainties, we caution you not to place undue reliance on forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
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BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months EndedSix Months Ended
 July 1, 2023July 2, 2022July 1, 2023July 2, 2022
(In thousands, except per share data)(In thousands, except per share data)
Net sales$815,967 $1,239,379 $1,613,871 $2,541,684 
Cost of sales680,164 1,037,971 1,344,529 2,049,225 
Gross profit135,803 201,408 269,342 492,459 
Gross margin16.6 %16.3 %16.7 %19.4 %
Operating expenses (income):  
Selling, general, and administrative88,750 91,338 179,924 182,627 
Depreciation and amortization7,951 6,518 15,669 13,264 
Amortization of deferred gains on real estate(984)(984)(1,968)(1,968)
Gains from sales of property— (144)— (144)
Other operating expenses993 626 4,109 1,464 
Total operating expenses96,710 97,354 197,734 195,243 
Operating income39,093 104,054 71,608 297,216 
Non-operating expenses:  
Interest expense, net6,311 11,255 13,998 22,548 
Other expense, net594 139 1,188 1,277 
Income before provision for income taxes32,188 92,660 56,422 273,391 
Provision for income taxes7,722 21,388 14,144 68,710 
Net income$24,466 $71,272 $42,278 $204,681 
Basic income per share$2.70 $7.64 $4.67 $21.49 
Diluted income per share$2.70 $7.48 $4.67 $21.07 


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BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 July 1, 2023December 31, 2022
(In thousands, except share data)
ASSETS
Current assets:  
Cash and cash equivalents$418,325 $298,943 
Receivables, less allowances of $3,182 and $3,449, respectively
294,341 251,555 
Inventories, net379,312 484,313 
Other current assets45,290 42,121 
Total current assets1,137,268 1,076,932 
Property and equipment, at cost373,524 360,869 
Accumulated depreciation(163,029)(155,260)
Property and equipment, net210,495 205,609 
Operating lease right-of-use assets43,601 45,717 
Goodwill55,372 55,372 
Intangible assets, net32,841 34,989 
Deferred tax assets55,542 56,169 
Other non-current assets15,351 15,254 
Total assets$1,550,470 $1,490,042 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$190,130 $151,626 
Accrued compensation14,110 22,556 
Finance lease liabilities - short-term8,238 7,089 
Operating lease liabilities - short-term7,085 7,432 
Real estate deferred gains - short-term3,935 3,935 
Pension benefit obligation - short-term2,087 1,521 
Other current liabilities19,058 16,518 
Total current liabilities244,643 210,677 
Non-current liabilities:
Long-term debt, net of debt issuance costs of $3,651 and $4,057, respectively
293,083 292,424 
Finance lease liabilities - long-term262,950 265,986 
Operating lease liabilities - long-term37,853 40,011 
Real estate deferred gains - long-term68,501 70,403 
Other non-current liabilities20,669 20,512 
Total liabilities927,699 900,013 
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Common Stock, $0.01 par value, 20,000,000 shares authorized,
     9,008,476 and 9,048,603 outstanding on July 1, 2023 and December 31, 2022, respectively
90 90 
Additional paid-in capital190,770 200,748 
Accumulated other comprehensive loss(30,970)(31,412)
Accumulated stockholders’ equity462,881 420,603 
Total stockholders’ equity622,771 590,029 
Total liabilities and stockholders’ equity$1,550,470 $1,490,042 
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BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
 (In thousands)
Cash flows from operating activities:
Net income$24,466 $71,272 $42,278 $204,681 
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization7,951 6,518 15,669 13,264 
Amortization of debt discount and issuance costs330 230 659 493 
Gains from sales of property— (144)— (144)
Deferred income tax337 (758)550 (2,752)
Amortization of deferred gains from real estate(984)(984)(1,968)(1,968)
Share-based compensation1,926 1,775 6,495 3,937 
Changes in operating assets and liabilities:
Accounts receivable4,547 74,397 (42,786)(83,022)
Inventories30,012 (15,093)105,001 (89,190)
Accounts payable13,084 9,443 38,504 59,515 
Taxes payable— (36,595)— 10,462 
Pension contributions— (261)— (482)
Other current assets(15,995)(2,798)(3,169)(3,399)
Other assets and liabilities(1,521)(5,809)(8,115)(7,965)
Net cash provided by operating activities64,153 101,193 153,118 103,430 
Cash flows from investing activities:
Proceeds from sale of assets91 482 128 531 
Property and equipment investments(5,031)(4,373)(14,039)(6,882)
Net cash used in investing activities(4,940)(3,891)(13,911)(6,351)
Cash flows from financing activities:
Common stock repurchase and retirement(11,599)(60,000)(11,599)(66,427)
Repurchase of shares to satisfy employee tax withholdings(3,390)(5,777)(3,960)(6,170)
Principal payments on finance lease liabilities(2,133)(1,011)(4,266)(4,733)
Net cash used in financing activities(17,122)(66,788)(19,825)(77,330)
Net change in cash and cash equivalents42,091 30,514 119,382 19,749 
Cash and cash equivalents at beginning of period376,234 74,438 298,943 85,203 
Cash and cash equivalents at end of period$418,325 $104,952 $418,325 $104,952 


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BLUELINX HOLDINGS INC.
RECONCILIATION OF NON-GAAP MEASUREMENTS
(Unaudited)

The following schedule reconciles net income to Adjusted EBITDA:
Three Months EndedSix Months EndedTrailing Twelve Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022July 1, 2023July 2, 2022
(In thousands)(In thousands)(In thousands)
Net income$24,466 $71,272 $42,278 $204,681 $133,773 $325,499 
Adjustments:
Depreciation and amortization7,951 6,518 15,669 13,264 30,018 26,911 
Interest expense, net6,311 11,255 13,998 22,548 33,722 41,074 
Term loan debt issuance costs(1)
— — — — — 1,603 
Provision for income taxes7,722 21,388 14,144 68,710 44,019 109,799 
Share-based compensation expense1,926 1,775 6,495 3,937 12,175 7,125 
Amortization of deferred gains on real estate(984)(984)(1,968)(1,968)(3,934)(3,937)
Gain from sales of property(1)
— (144)— (144)— (7,284)
Pension termination and related expenses(1)(2)
594 — 1,188 — 1,188 — 
Acquisition-related costs(1)(3)
494 — 1,188 — 1,849 — 
Restructuring and other(1)(4)
499 1,126 2,921 3,464 4,747 
Adjusted EBITDA$48,979 $112,206 $95,913 $314,492 $259,163 $505,537 
(1)Reflects non-recurring items of approximately $1.6 million in beneficial items to the current quarterly period and approximately $1.0 million in beneficial items to the prior quarterly period. For the current year six-month period, reflects non-recurring, beneficial items of approximately $5.3 million and the prior year six-month period reflects $3.3 million of non-recurring, beneficial items. For the trailing twelve months ended, reflects approximately $3.0 million of non-recurring, beneficial items, and approximately $5.7 million of non-recurring, beneficial items, in the prior trailing twelve- month period.
(2)Reflects expenses related to our previously disclosed termination of the BlueLinx Corporation Hourly Retirement Plan.
(3)Reflects primarily legal, professional, technology and other integration costs.
(4)Reflects costs related to our restructuring efforts, such as severance, net of other one-time non-operating items.

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The following tables reconciles net income and diluted income per share to adjusted net income and adjusted diluted income per share:
Three Months EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
(In thousands, except per share data)(In thousands, except per share data)
Net income$24,466 $71,272 $42,278 $204,681 
Adjustments:
Share-based compensation expense1,926 1,775 6,495 3,937 
Amortization of deferred gains on real estate(984)(984)(1,968)(1,968)
Gain from sales of property— (144)— (144)
Pension termination and related expenses594 — 1,188 — 
Acquisition-related costs494 — 1,188 — 
Restructuring and other499 1,126 2,921 3,464 
Tax impacts of reconciling items above (1)
(607)(409)(2,463)(1,329)
Adjusted net income$26,388 $72,636 $49,639 $208,641 
Basic EPS$2.70 $7.64 $4.67 $21.49 
Diluted EPS$2.70 $7.48 $4.67 $21.07 
Weighted average shares outstanding - Basic9,040 9,324 9,034 9,522 
Weighted average shares outstanding - Diluted9,057 9,520 9,050 9,710 
Non-GAAP Adjusted Basic EPS$2.92 $7.79 $5.48 $21.91 
Non-GAAP Adjusted Diluted EPS$2.91 $7.63 $5.48 $21.48 
(1)Tax impact calculated based on the effective tax rate for the respective three and six-month periods presented.

The following schedule presents our Adjusted EBITDA margin as a percentage of net sales:

Three Months EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
(In thousands)
Net sales$815,967 $1,239,379 $1,613,871 $2,541,684 
Adjusted EBITDA48,979 112,206 95,913 314,492 
Adjusted EBITDA margin6.0 %9.1 %5.9 %12.4 %

10

The following schedule presents our revenues disaggregated by specialty and structural product category:

Three Months EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
(In thousands)
Net sales by product category
Specialty products$570,990 $787,860 $1,138,828 $1,555,767 
Structural products244,977 451,519 475,043 985,917 
Total net sales$815,967 $1,239,379 $1,613,871 $2,541,684 
Gross profit by product category
Specialty products$108,841 $180,254 $215,468 $364,353 
Structural products26,962 21,154 53,874 128,106 
Total gross profit$135,803 $201,408 $269,342 $492,459 
Gross margin % by product category
Specialty products19.1 %22.9 %18.9 %23.4 %
Structural products11.0 %4.7 %11.3 %13.0 %
Total gross margin %16.6 %16.3 %16.7 %19.4 %

The following schedule presents Net Debt and the Net Leverage Ratio for the Trailing Twelve Months:

Period Ending
July 1, 2023July 2, 2022
(In thousands)
Finance lease liabilities - short term$8,238 $8,036 
Long term debt(1)
300,000 300,000 
Finance lease liabilities - long term262,950 263,389 
Total debt571,188 571,425 
Less: available cash418,325 104,952 
Net Debt152,863 466,473 
Trailing twelve month Adjusted EBITDA$259,163 $505,537 
Net Leverage Ratio0.6x0.9x
(1) For the period ended July 1, 2023 and July 2, 2022, our long-term debt is comprised of $300.0 million of senior-secured notes issued in October 2021. These notes are presented under the long-term debt caption of our condensed consolidated balance sheets at $293.1 million and $291.8 million at July 1, 2023 and July 2, 2022, respectively. This presentation is net of their discount of $3.3 million and $3.8 million and the combined carrying value of our debt issuance costs of $3.7 million and $4.5 million as of July 1, 2023 and July 2, 2022, respectively. Our senior secured notes are presented in this table at their face value for the purposes of calculating our net leverage ratio.
11



The following schedule presents free cash flow:

Three Months EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
(In thousands)
Net cash provided by operating activities$64,153 $101,193 $153,118 $103,430 
Less: Property and equipment investments(5,031)(4,373)(14,039)(6,882)
Free cash flow$59,122 $96,820 $139,079 $96,548 
12
BlueLinx Q2 2023 Results Delivering What Matters August 3, 2023 © BlueLinx 2023. All Rights Reserved. 1

 
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”, “expect,” “estimate,” “intend,” “may”, “project,” “plan,” “should”, “will”, “will be,” “will likely continue,” “will likely result””, “would” or words or phrases of similar meaning. The forward-looking statements in this presentation include statements about our confidence in the Company’s long-term growth strategy; our ability to capitalize on supplier-led price increases and our value-added services; our areas of focus and management initiatives; the demand outlook for construction materials and expectations regarding new home construction, repair and remodel activity and continued investment in existing and new homes; our positioning for long-term value creation; our efforts and ability to generate profitable growth; our ability to increase net sales in specialty product categories; our ability to generate profits and cash from sales of specialty products; our multi-year capital allocation plans; our ability to manage volatility in wood-based commodities; our improvement in execution and productivity; our efforts and ability to maintain a disciplined capital structure and capital allocation strategy; our ability to maintain a strong balance sheet; our ability to focus on operating improvement initiatives and commercial excellence; and whether or not the Company will continue any share repurchases. Forward-looking statements in this presentation 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 that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. These risks and uncertainties include those discussed in greater detail in our filings with the Securities and Exchange Commission. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy, or actual results to differ materially from those contained in forward-looking statements. Factors that may cause these differences include, among other things: pricing and product cost variability; volumes of product sold; competition; changes in the supply and/or demand for products that we distribute; the cyclical nature of the industry in which we operate; housing market conditions; consolidation among competitors, suppliers, and customers; disintermediation risk; loss of products or key suppliers and manufacturers; our dependence on international suppliers and manufacturers for certain products; potential acquisitions and the integration and completion of such acquisitions; business disruptions; effective inventory management relative to our sales volume or the prices of the products we distribute; information technology security risks and business interruption risks; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, wars, or other unexpected events; successful implementation of our strategy; wage increases or work stoppages by our union employees; costs imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; the effect of global pandemics such as COVID-19 and other widespread public health crisis and their effects on our business ; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating the business; the fact that we have consummated certain sale leaseback transactions with resulting long-term non-cancelable leases, many of which are or will be finance leases; the fact that we lease many of our distribution centers, and we would still be obligated under these leases even if we close a leased distribution center; inability to raise funds necessary to finance a required repurchase of our senior secured notes; a lowering or withdrawal of debt ratings; changes in our product mix; increases in fuel and other energy prices; availability of third-part freight providers; changes in insurance-related deductible/retention reserves based on actual loss experience; the possibility that the value of our deferred tax assets could become impaired; changes in our expected annual effective tax rate could be volatile; changes in actuarial assumptions for our pension plan; the costs and liabilities related to our participation in multi-employer pension plans could increase; the risk that our cash flows and capital resources may be insufficient to service our existing or future indebtedness; variable interest rate risk under certain indebtedness changes in, or interpretation of, accounting principles; stock price fluctuations; the possibility that we could be the subject of securities class action litigation due to stock price volatility; possibility of unfavorable research about our business or industry or lack of coverage or reporting; activities of activist shareholders; and indebtedness terms that limit our ability to pay dividends on common stock. Given these risks and uncertainties, we caution you not to place undue reliance on forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law. Immaterial Rounding Differences. Immaterial rounding adjustments and differences may exist between slides, press releases, and previously issued presentations. This presentation and the associated remarks made during this conference call are integrally related and are intended to be presented and understood together. 2 Safe Harbor Statement

 
3 Opening Opening Remarks Shyam Reddy, President & CEO

 
 Net sales of $816M, down 34% year-over-year  Prior year included significant benefit from both elevated demand and inflated commodity prices  Gross profit of $136M, down 33% year-over-year  16.6% of net sales  80% of gross profit from specialty products  Gross margin of 16.6%, up 30 bps year-over-year  19.1% specialty gross margin  11.0% structural gross margin  Net income of $24M and Diluted EPS of $2.70; Adjusted Net income of $26M and Adjusted Diluted EPS of $2.91  Adjusted EBITDA of $49M, or 6.0% of sales  Generated operating cash of $64M  Free cash flow of $59M  Net leverage ratio of 0.6x Specialty Products 80% Structural Products 20% Note: see appendix for reconciliations to all non-GAAP measures Explosive profitable growth with a highly engaged team 4 SECOND QUARTER 2023 RESULTS Specialty Products 70% Structural Products 30% Q2 23 Sales by Product Category Q2 23 Gross Profit by Product Category

 
Overall highlights:  Disciplined pricing approach supports strong specialty margin  Rigorous commodity risk management  Managing costs relative to market conditions Note: see appendix for reconciliations to all non-GAAP measures Q2 23:  Adjusted EBITDA margin of 6%  Net leverage reduced to 0.6x from 0.9x 5 $699 $1,308 $1,239 $816 4.5% 12.7% 9.1% 6.0% Q2 20 Q2 21 Q2 22 Q2 23 Net Sales Adj EBITDA % 8.1x 1.5x 0.9x 0.6x Net leverage ($ millions) SECOND QUARTER 2023 RESULTS

 
 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 six months of 2023  U.S. new home supply ~7 months, lower than peak of ~10 months during 2022(1)  July Builders’ confidence rose to 56, seventh consecutive monthly increase(2)  Repair and remodel rate of growth in 2023 slowing but remains positive(3)  Record home equity levels  Remote work flexibility still prevalent  Average age of existing homes ~40 years old(4) BLUELINX SALES BY END MARKET 45% 40% 15% New Home ConstructionRepair & Remodel Commercial Note: management’s estimate by end market for two-step distribution of building materials (1) Source: U.S. Census Bureau. The months' supply indicates how long the current for-sale inventory would last given the current sales rate if no additional new houses were built (2) Source: NAHB Housing Market Index (HMI) is based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. The survey asks respondents to rate market conditions for the sale of new homes at the present time and in the next six months as well as the traffic of prospective buyers of new homes (3) Source: Joint Center for Housing Studies at Harvard University. The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. (4) Source: American Community Survey completed in 2019 6 U.S. HOUSING INDUSTRY

 
*As of 7/28/23  Average Q2 lumber and panel prices declined 49% and 39%, respectively, year-over-year  Average Q2 lumber and panel prices decreased 1% and increased 7%, respectively, over the average of Q1  Higher input costs continue due to widespread inflation  Improved product availability across product categories Average quarterly prices for framing lumber ($/MBF) and structural panels ($/MSF) (per RISI (1)): (1) Source: Random Lengths, company analysis 7 U.S. HOUSING INDUSTRY $987 $1,243 $466 $702 $1,244 $797 $587 $449 $413 $408 $460 $1,003 $1,566 $766 $715 $1,232 $874 $671 $528 $499 $532 $616 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23* Quarterly Average Lumber and Panels Prices Quarterly Average Price of Framing Lumber Quarterly Average Lumber and Panels Prices Quarterly Average Price for Structural Panels Supply/Cost Environment

 
8 Financial Review Kelly Janzen, Chief Financial Officer

 
 Net Sales decreased 34% to $816M  Specialty product sales down 28%  Structural product sales down 46%  Gross Margin of 16.6%, up 30 bps  Adjusted Diluted EPS of $2.91  Adjusted EBITDA of $49M  Adjusted EBITDA margin of 6.0%  Free Cash Flow of $59M  Cash Flow from Operations $64M  Capital Expenditures of $5M 9 SECOND QUARTER 2023 RESULTS Note: All comparisons versus the prior-year period unless otherwise noted; see Appendix for reconciliations for all non-GAAP figures Note: Q2 20 provided for comparison purposes due to Q2 21 and 22 impacted by very strong demand and high commodity prices Q2 year-over-year analysis$ millions, except per share data Q2 2023 Q2 2023 vs. Q2 2022 Q2 2022 Q2 2021 Q2 2020 Net Sales $816 (34%) $1,239 $1,308 $699 Gross Profit $136 (33%) $201 $251 $101 Gross Margin % 16.6% +30 bps 16.3% 19.2% 14.4% Adjusted Net Income $28 (64%) $73 $116 $10 Adjusted Diluted Earnings per Share $2.91 (62%) $7.63 $11.84 1.06 Adjusted EBITDA $49 (77%) $112 $166 $31 Adjusted EBITDA % 6.0% -305 bps 9.1% 12.7% 4.5% Free Cash Flow $59 (39%) $97 $45 $72 Net Leverage 0.6x (0.3x) 0.9x 1.5x 8.1x

 
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, 54% for Q2 2023 TTM  $48M decrease in operating working capital since Q1 23 driven by $30M sequential reduction in inventory, primarily specialty  Cash cycle days improved 9 days during the quarter Note: See Appendix for reconciliations for all non-GAAP figures (1) Operating working capital includes accounts receivable, inventory, and accounts payable; Return on Working Capital is calculated by dividing trailing twelve month (TTM) Adjusted EBITDA by Operating working capital as of the end of the period presented or discussed (2) Cash Cycle Days = Days Sales Outstanding plus Days Sales of Inventory less Days Payable Outstanding 10 WORKING CAPITAL $576 $636 $571 $648 $830 $761 $688 $584 $531 $484 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $200 $300 $400 $500 $600 $700 $800 $900 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Total Operating Working Capital Return on Working Capital 39 35 48 54 47 50 58 67 61 53 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 50 45 60 63 58 63 68 76 70 61 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23

 
$421 $449 $496 $499 $563 $675 $641 $641 $768 $788 $724 $592 $568 $571 16.4% 17.3% 17.4% 17.4% 19.3% 24.4% 23.0% 21.9% 24.0% 22.9% 20.9% 21.1% 18.8% 19.1% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 ($ millions) GM Rate Net sales  Net sales down 28%, or $217M  Volume down 14%  Specialty sales is 70% of total net sales  Gross profit of $109M, down 40%  Specialty gross profit 80% of total gross profit  Gross margin of 19.1%, down 382 bps  Solid margin given strategic pricing Q2 year-over-year analysis 11 SPECIALTY PRODUCTS Q2 2023 RESULTS

 
($ millions) $241 $250 $375 $367 $462 $633 $330 $331 $534 $452 $336 $256 $230 $245 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% 11.0% 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 Q2 23 GM Rate Net sales  Net sales decreased 46%, or $207M  Significantly lower year-over-year average pricing for commodities:  49% decrease in average price of lumber  39% decrease in average price of panels  Volume relatively flat  Gross profit of $27M, up 27%  Q2 22 impacted by rapid deflation and a non- recurring lower of cost or net realizable value adjustment  Gross margin of 11.0%, up 632 bps  Continued lean inventory approach Q2 year-over-year analysis 12 STRUCTURAL PRODUCTS Q2 2023 RESULTS

 
* $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 Q2 2023:  Net leverage at 0.6x  Net debt at $153M  Cash on hand of $418M  Total available liquidity of $765M  $5M of Capex spent in Q2 23 on facility improvements and fleet  No material outstanding debt maturities until 2029 $279 $271 $271 $320 $300 Q2 21 Q2 22 Q2 23 Finance Leases Revolver Senior Notes $599 ($ millions) $571 $571 Gross Debt Structure $350* $300 2022 2023 2024 2025 2026 2027 2028 2029 $300m Senior Notes @ 6% undrawn revolver Debt Maturity Schedule Note: debt maturity schedule does not include finance lease obligations 8.5x 1.6x 1.0x 0.6x Q2 20 Q2 21 Q2 22 Q2 23 Net Leverage 13 BALANCE SHEET $300

 
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  Acquisitions aligned to strategy  Opportunistic share repurchases FREE CASH FLOW RETURN TO SHAREHOLDERSGROWTH AND MARGIN EXPANSION 14 CAPITAL ALLOCATION FRAMEWORK

 
Shyam Reddy, President and CEO Executive Summary 15

 
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% market share  Strong financial position 16 BLUELINX

 
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 Creating Value Creating value thru profitable growth and disciplined capital allocation 17 DELIVERING WHAT MATTERS North America’s Preeminent Building Products Distributor

 
Appendix 18

 
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. Any non-GAAP measures used herein are reconciled to their most directly comparable GAAP measures herein or in the financial tables accompanying this presentation. The Company cautions that non-GAAP measures are not presentations made in accordance with GAAP and are not intended to present superior measures of our financial condition from those measures determined under GAAP. Non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. The Company further cautions that its non-GAAP measures, as used herein, are not necessarily comparable to other similarly titled measures of other companies due to differences in methods of calculation. Adjusted EBITDA and Adjusted EBITDA Margin. BlueLinx defines 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 for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items. The Company presents Adjusted EBITDA because it is a primary measure used by management to evaluate operating performance. Management believes this metric helps to enhance investors’ overall understanding of the financial performance and cash flows of the business. Management also believes Adjusted EBITDA is helpful in highlighting operating trends. 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 determine our Adjusted EBITDA Margin, which we sometimes refer to as our Adjusted EBITDA as a percentage of net sales, by dividing our Adjusted EBITDA for the applicable period by our net sales for the applicable period. We believe that this ratio is useful to investors because it more clearly defines the quality of earnings and operational efficiency of translating sales to profitability. Adjusted Net Income and Adjusted Earnings Per Share. BlueLinx defines Adjusted Net Income as net income adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items, further adjusted for the tax impacts of such reconciling items. BlueLinx defines Adjusted Earnings Per Share (basic and/or diluted) as the Adjusted Net Income for the period divided by the weighted average outstanding shares (basic and/or diluted) for the periods presented. We believe that Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are useful to investors to enhance investors’ overall understanding of the financial performance of the business. Management also believes Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are helpful in highlighting operating trends. Free Cash Flow. BlueLinx defines free cash flow as net cash provided by operating activities less total capital expenditures. Free cash flow is a measure used by management to assess our financial performance, and we believe it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures that can be used for, among other things, investment in our business, strengthening our balance sheet, and repayment of our debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Net Debt and Net Leverage Ratio. BlueLinx calculates net debt as its total short- and long-term debt, including outstanding balances under our senior secured notes and revolving credit facility and the total amount of its obligations under financing leases, less cash and cash equivalents. We believe that net debt is useful to investors because our management reviews our net debt as part of its management of overall liquidity, financial flexibility, capital structure and leverage, and creditors and credit analysts monitor our net debt as part of their assessments of our business. We determine our overall net leverage ratio by dividing our net debt by trailing twelve-month Adjusted EBITDA. We believe that this ratio is useful to investors because it is an indicator of our ability to meet our future financial obligations. In addition, the ratio is a measure that is frequently used by investors and creditors. 19 Non-GAAP Measures

 
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% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18 20 20 20 22 20 24 P 20 26 P (1) Source: Historical data is U.S. Census Bureau; Forecast from John Burns Real Estate Consulting, LLC subject limitations and disclaimers – not for redistribution (2) Source: U.S. Census Bureau. The months' supply indicates how long the current for-sale inventory would last given the current sales rate if no additional new houses were built. (3) Source: Joint Center for Housing Studies at Harvard University. The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. (4) Source: Historical data is Freddie Mac; Forecast: John Burns Real Estate Consulting, LLC subject limitations and disclaimers – not for redistribution. mortgage rates expected to remain below historical averages 0 2 4 6 8 10 12 14 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 ~7 months of home inventory - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 E 20 24 E 20 25 E 20 26 E starts expected to be around 25-year average and well above 2009-2011 levels 20 MACRO TRENDS $0 $100 $200 $300 $400 $500 $600 1Q 00 1Q 01 1Q 02 1Q 03 1Q 04 1Q 05 1Q 06 1Q 07 1Q 08 1Q 09 1Q 10 1Q 11 1Q 12 1Q 13 1Q 14 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 22 1Q 23 1Q 24 … remodeling spend expected to slow in 2023 and 2024

 
Framing Lumber Composite Index As of Jul 2023(1) Structural Panel Composite Index As of Jul 2023(2)  Lumber prices stayed relatively consistent throughout Q2  Panel prices increased throughout Q2; from March to the June, average panel prices increased about 6%  At the end of Q1, average lumber and panel prices for March were $411/MBF and $508/MSF, respectively  As of 7/28/23, average July pricing was $460/MBF for lumber and $616/MSF for panels - 200 400 600 800 1,000 1,200 1,400 1,600 Ja n- 15 Ap r- 15 Ju l-1 5 Oc t-1 5 Ja n- 16 Ap r- 16 Ju l-1 6 Oc t-1 6 Ja n- 17 Ap r- 17 Ju l-1 7 Oc t-1 7 Ja n- 18 Ap r- 18 Ju l-1 8 Oc t-1 8 Ja n- 19 Ap r- 19 Ju l-1 9 Oc t-1 9 Ja n- 20 Ap r- 20 Ju l-2 0 Oc t-2 0 Ja n- 21 Ap r- 21 Ju l-2 1 Oc t-2 1 Ja n- 22 Ap r- 22 Ju l-2 2 Oc t-2 2 Ja n- 23 Ap r- 23 Ju l-2 3 Index Price TTM Avg. Index Price - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Ja n- 15 Ap r- 15 Ju l-1 5 Oc t-1 5 Ja n- 16 Ap r- 16 Ju l-1 6 Oc t-1 6 Ja n- 17 Ap r- 17 Ju l-1 7 Oc t-1 7 Ja n- 18 Ap r- 18 Ju l-1 8 Oc t-1 8 Ja n- 19 Ap r- 19 Ju l-1 9 Oc t-1 9 Ja n- 20 Ap r- 20 Ju l-2 0 Oc t-2 0 Ja n- 21 Ap r- 21 Ju l-2 1 Oc t-2 1 Ja n- 22 Ap r- 22 Ju l-2 2 Oc t-2 2 Ja n- 23 Ap r- 23 Ju l-2 3 Index Price TTM Avg. Index Price Jul-23 framing lumber prices are 22% lower than the 5-year average and 2% higher than the TTM rolling average Jul-23 structural panel prices are 4% lower than the 5-year average and 12% higher than the TTM rolling average (1) Source: Random Lengths, company analysis; Jul-23 data thru 7/28/23 (2) Source: Random Lengths; company analysis; Jul-23 data thru 7/28/23 21 WOOD-BASED COMMODITY PRICE TRENDS

 
Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q2 2020 – Q2 2023 In millions where dollars are presented 22 Non-GAAP Reconciliation / supplementary financial information

 
Adjusted EBITDA reconciliation by fiscal quarter, Q2 2020 – Q2 2023 In millions where dollars are presented 23 Non-GAAP Reconciliation / supplementary financial information

 
Free cash flow for the three months ended Q2 2023, Q2 2022, Q2 2021, and Q2 2020 In millions where dollars are presented 24 Non-GAAP Reconciliation / supplementary financial information

 
Working capital by fiscal quarter, Q2 2021 – Q2 2023 In millions where dollars are presented 25 Non-GAAP Reconciliation / supplementary financial information

 
Net leverage ratio for the trailing twelve months ended Q2 2023 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 26 Non-GAAP Reconciliation / supplementary financial information

 
Net leverage ratio for the trailing twelve months ended Q2 2022 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 27 Non-GAAP Reconciliation / supplementary financial information

 
Net leverage ratio for the trailing twelve months ended Q2 2021 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 28 Non-GAAP Reconciliation / supplementary financial information

 
Net leverage ratio for the trailing twelve months ended Q2 2020 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 29 Non-GAAP Reconciliation / supplementary financial information

 
Adjusted Net Income and Adjusted Diluted Income per Share reconciliation for the three-month periods ended Q2 2023, Q2 2022, Q2 2021, and Q2 2020 In thousands where dollars are presented, except per share data 30 Non-GAAP Reconciliation / supplementary financial information (1) Tax impact calculated based on the effective tax rate for the respective three-month periods.

 
v3.23.2
Cover Page
Aug. 01, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 01, 2023
Entity Registrant Name BlueLinx Holdings Inc
Entity Incorporation, State or Country Code DE
Entity File Number 001-32383
Entity Tax Identification Number 77-0627356
Entity Address, Address Line One 1950 Spectrum Circle
Entity Address, Address Line Two Suite 300
Entity Address, City or Town Marietta
Entity Address, State or Province GA
Entity Address, Postal Zip Code 30067
City Area Code 770
Local Phone Number 953-7000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol BXC
Security Exchange Name NYSE
Amendment Flag false
Entity Central Index Key 0001301787
BlueLinx (NYSE:BXC)
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