false000130178700013017872024-07-302024-07-30


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): July 30, 2024
 
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 July 30, 2024, BlueLinx Holdings Inc. ("BlueLinx" or "the Company”) issued a press release announcing its financial results for the fiscal second quarter ended June 29, 2024. A copy of BlueLinx's press release is furnished as Exhibit 99.1 hereto.

On July 31, 2024, as previously announced, BlueLinx will hold a teleconference and audio webcast to discuss its financial results from the fiscal second quarter ended June 29, 2024. 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: July 30, 2024By:/s/ Andrew Wamser
  Andrew Wamser
  Senior Vice President and Chief Financial Officer

 


 
 


Exhibit 99.1

bluelogotaglinea.jpg

BlueLinx Announces Second Quarter 2024 Results

ATLANTA, July 30, 2024 – BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, today reported financial results for the three months ended June 29, 2024.

SECOND QUARTER 2024 HIGHLIGHTS

•Net sales of $768 million
•Gross profit of $122 million, gross margin of 15.9% and specialty product gross margin of 19.3%
•Net income of $14 million, or $1.65 diluted earnings per share
•Adjusted net income of $15 million, or $1.68 adjusted diluted earnings per share
•Adjusted EBITDA of $34 million, 4.5% of net sales
•Operating cash flow of $36 million and free cash flow of $29 million
•Available liquidity of $838 million, including $491 million cash and cash equivalents on hand
•$15 million in share repurchases, with $76 million remaining on our share repurchase authorization as of quarter-end

“Our second quarter results were highlighted by solid volume growth in several of our key specialty product categories despite a challenging macro environment,” said Shyam Reddy, President and CEO of BlueLinx. “We also generated solid specialty product gross margins of approximately 19%, despite the effects of price deflation. The quarter was adversely impacted by structural products, primarily driven by declining lumber and panel prices, in addition to volume declines due to challenges in the housing and building products sector. Although current market conditions are challenging, we believe we are well-positioned for long-term success because our vision is supported by a well-defined sales growth strategy, strong liquidity, and minimal debt.”

“Our strong free cash flow generation of $29 million during the second quarter helped us end the period with $491 million in cash on hand and a net leverage ratio of (0.9x),” said Andy Wamser, Chief Financial Officer of BlueLinx. “During the second quarter, we purchased $15 million of stock under our share repurchase program, demonstrating our commitment to returning capital to shareholders. At the end of the quarter, we had $76 million remaining on our share repurchase authorization, and we will continue to be opportunistic in the market.”

SECOND QUARTER 2024 FINANCIAL PERFORMANCE
In the second quarter of 2024, net sales were $768 million, a decrease of $48 million, or 6% when compared to the second quarter of 2023. Gross profit was $122 million, a decrease of $13 million, or 10%, year-over-year, and gross margin was 15.9%, down 70 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 $539 million, a decrease of $32 million, or 5.5% when compared to the second quarter of 2023. This decrease was due to price deflation across specialty products, partially offset by a slight increase in volumes. Gross profit from specialty product sales was $104 million, a decrease of $4 million, or 4.1% when compared to the second quarter of last year. Gross margin was 19.3% compared to 19.1% in the prior year period. The current period benefited from the reduction of an accrued estimate made in the first quarter of 2024 related to amounts the Company believes it may owe for discrepancies in duties paid in prior years for certain imported goods. Not including this benefit, specialty products’ gross margin would have been 18.9% in the current quarter.

Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, decreased $16 million, or 6.6% when compared to the second quarter of 2023, to $229 million in the second quarter of 2024. The decrease in structural sales was due primarily to lower volumes and a decline in our lumber selling prices which generally correlated to a year-over-year decline in the average composite price of framing lumber of 6%. Gross profit from sales of structural products was $18 million, a decrease of $9 million from the prior year period, and gross margin was 7.9%, compared to 11.0% in the prior year period.
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Selling, general and administrative (“SG&A”) expenses were $89 million in the second quarter of 2024, $1 million higher than the prior year period. The year-over-year change in SG&A was primarily due to higher technology expenses and legal expenses associated with duty-related matters, as well as lower logistics costs and share-based compensation expenses.

Net income was $14 million, or $1.65 per diluted share, versus $24 million, or $2.70 per diluted share, in the prior year period. Adjusted Net Income was $15 million, or $1.68 per diluted share compared to $26 million, or $2.91 per diluted share in the second quarter of last year.

Adjusted EBITDA was $34 million, or 4.5% of net sales, for the second quarter of 2024, compared to $49 million, or 6.0% of net sales in the second quarter of 2023. The current period includes the benefit of the duty-related matters, and not including these items, Adjusted EBITDA was $32 million, or 4.1% of net sales.

Net cash generated from operating activities was $36 million in the second quarter of 2024 and free cash flow was $29 million. The cash generated during the second quarter was driven by net income and improved working capital.

CAPITAL ALLOCATION AND FINANCIAL POSITION
During the second quarter, we invested $6.5 million of cash in capital investments used to improve our distribution facilities and upgrade our fleet. Additionally, we purchased approximately $15 million of the Company’s common stock through open market transactions under our $100 million share repurchase program. At quarter-end, we had $76 million remaining under this authorization and we plan to continue being opportunistic in the market when repurchasing shares.

As of June 29, 2024, total debt and finance lease obligations, but excluding real property finance lease obligations, was $348 million, which consisted of $300 million of senior secured notes that mature in 2029 and $48 million of finance lease obligations for equipment. Net debt was ($143) million, which consisted of total debt and finance leases excluding real property finance lease obligations of $348 million less cash and cash equivalents of $491 million, resulting in a net leverage ratio of (0.9x) using a trailing twelve-month Adjusted EBITDA of $160 million. Available liquidity was $838 million which included an undrawn revolving credit facility that had $346 million of availability plus cash and cash equivalents of $491 million.

THIRD QUARTER 2024 OUTLOOK
Through the first four weeks of the third quarter of 2024, specialty product gross margin was in the range of 18% to 19% and structural product gross margin was in the range of 8% to 9%. Average daily sales volumes were improved versus the second quarter of 2024.

CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on July 31, 2024, 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, 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: 1-888-660-6392
Passcode: 9140086

To listen to a replay of the teleconference, which will be available through August 14, 2024:

Domestic Replay: 1-800-770-2030
Passcode: 9140086


ABOUT BLUELINX
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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 a comprehensive range of products to our customers which include 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, and we operate our business through a broad network of distribution centers. To learn more about BlueLinx, please visit www.bluelinxco.com.

CONTACT
Tom Morabito
Investor Relations Officer
(470) 394-0099
investor@bluelinxco.com


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 strategy, liquidity, and debt, our long-run positioning relative to industry conditions, future share repurchases, and the information set forth under the heading “Third Quarter 2024 Outlook”.    

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: housing market conditions; pricing and product cost variability; volumes of product sold; competition; the cyclical nature of the industry in which we operate; 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; effective inventory management relative to our sales volume or the prices of the products we produce; business disruptions; potential acquisitions and the integration and completion of such acquisitions; 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; the impacts of climate change; 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 effects of epidemics, global pandemics or other widespread public health crises and governmental rules and regulations; 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 potential to incur more debt; 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 or availability of third-part freight providers; changes in insurance-related deductible/retention reserves based on actual loss development 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; 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; interest rate risk, which could cause our debt service obligations to increase; and changes in, or interpretation of, accounting principles.

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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.


NON-GAAP MEASURES AND SUPPLEMENTAL FINANCIAL INFORMATION

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 in the “Reconciliation of Non-GAAP Measurements” table later in this release. The Company cautions that non-GAAP measures are not intended to present superior measures of our financial condition from those measures determined under GAAP and 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.

Our Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) 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. Adjusted Net Income and Adjusted Earnings Per Share (basic or diluted), as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. These non-GAAP measures are reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.

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. Free cash flow is not a presentation made in accordance with GAAP and is not intended to present a superior measure of financial condition from those determined under
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GAAP. Free cash flow, as used herein, is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. This non-GAAP measure is reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.

Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities. BlueLinx calculates Net Debt as its total short- and long-term debt, including outstanding balances under our term loan and revolving credit facility and the total amount of its obligations under finance leases, less cash and cash equivalents. Net Debt Excluding Real Property Finance Lease Liabilities is calculated in the same manner as Net Debt, except the total amount of obligations under real estate finance leases are excluded. Although our credit agreements do not contain leverage covenants, a net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. We believe that Net Debt and Net Debt Excluding Real Property Finance Lease Liabilities are useful to investors because our management reviews both metrics 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 Twelve-Month Trailing Adjusted EBITDA. Our calculation of Net Leverage Ratio Excluding Real Property Finance Lease Liabilities is determined by dividing our Net Debt Excluding Real Property Finance Lease Liabilities by Twelve-Month Trailing Adjusted EBITDA. We believe that these ratios are useful to investors because they are indicators of our ability to meet our future financial obligations. In addition, our Net Leverage Ratio is a measure that is frequently used by investors and creditors. Our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are not made in accordance with GAAP and are not intended to present a superior measure of our financial condition from measures and ratios determined under GAAP. The calculations of our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are presented in the table on page 8. Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.
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BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months EndedSix Months Ended
 June 29, 2024July 1, 2023June 29, 2024July 1, 2023
(In thousands, except per share data)
Net sales$768,363 $815,967 $1,494,607 $1,613,871 
Cost of products sold645,919 680,164 1,244,482 1,344,529 
Gross profit122,444 135,803 250,125 269,342 
Gross margin15.9 %16.6 %16.7 %16.7 %
Operating expenses (income):  
Selling, general, and administrative89,453 88,750 180,703 179,924 
Depreciation and amortization10,120 7,951 19,553 15,669 
Amortization of deferred gains on real estate(984)(984)(1,968)(1,968)
Other operating expenses8 993 322 4,109 
Total operating expenses98,597 96,710 198,610 197,734 
Operating income23,847 39,093 51,515 71,608 
Non-operating expenses:  
Interest expense, net4,801 6,311 9,425 13,998 
Other expense, net— 594 — 1,188 
Income before provision for income taxes19,046 32,188 42,090 56,422 
Provision for income taxes4,710 7,722 10,262 14,144 
Net income$14,336 $24,466 $31,828 $42,278 
Basic earnings per share$1.65 $2.70 $3.68 $4.67 
Diluted earnings per share$1.65 $2.70 $3.66 $4.67 


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BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 June 29, 2024December 30, 2023
(In thousands, except share data)
ASSETS
Current assets:  
Cash and cash equivalents$491,392 $521,743 
Receivables, less allowances of $3,344 and $3,398, respectively
273,537 228,410 
Inventories, net357,573 343,638 
Other current assets36,220 26,608 
Total current assets1,158,722 1,120,399 
Property and equipment, at cost413,905 396,321 
Accumulated depreciation(181,841)(170,334)
Property and equipment, net232,064 225,987 
Operating lease right-of-use assets44,418 37,227 
Goodwill55,372 55,372 
Intangible assets, net28,787 30,792 
Deferred income tax asset, net53,677 53,256 
Other non-current assets13,036 14,568 
Total assets$1,586,076 $1,537,601 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$179,375 $157,931 
Accrued compensation12,310 14,273 
Finance lease liabilities - current11,132 11,178 
Operating lease liabilities - current8,460 6,284 
Real estate deferred gains - current3,935 3,935 
Other current liabilities22,250 24,961 
Total current liabilities237,462 218,562 
Long-term debt294,403 293,743 
Finance lease liabilities, less current portion280,206 274,248 
Operating lease liabilities, less current portion37,369 32,519 
Real estate deferred gains, less current portion64,697 66,599 
Other non-current liabilities19,607 17,644 
Total liabilities933,744 903,315 
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred Stock, $0.01 par value, 30,000,000 shares authorized, none outstanding— — 
Common Stock, $0.01 par value, 20,000,000 shares authorized,
     8,551,462 and 8,650,046 outstanding, respectively
86 87 
Additional paid-in capital151,279 165,060 
Retained earnings500,967 469,139 
Total stockholders’ equity652,332 634,286 
Total liabilities and stockholders’ equity$1,586,076 $1,537,601 
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BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
(In thousands)
Cash flows from operating activities:
Net income$14,336 $24,466 $31,828 $42,278 
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization10,120 7,951 19,553 15,669 
Amortization of debt discount and issuance costs330 330 660 659 
Provision for deferred income taxes(48)337 (421)550 
Amortization of deferred gains from real estate(984)(984)(1,968)(1,968)
Share-based compensation1,405 1,926 3,755 6,495 
Changes in operating assets and liabilities:
Accounts receivable14,707 4,547 (45,127)(42,786)
Inventories13,369 30,012 (13,935)105,001 
Accounts payable6,339 13,084 20,123 38,504 
Other current assets(4,055)(15,995)(9,612)(3,169)
Other assets and liabilities(19,716)(1,521)(188)(8,115)
Net cash provided by operating activities35,803 64,153 4,668 153,118 
Cash flows from investing activities:
Proceeds from sale of assets147 91 274 128 
Property and equipment investments(6,454)(5,031)(11,901)(14,039)
Net cash used in investing activities(6,307)(4,940)(11,627)(13,911)
Cash flows from financing activities:
Common stock repurchase and retirement(14,529)(11,599)(14,529)(11,599)
Repurchase of shares to satisfy employee tax withholdings(1,545)(3,390)(2,452)(3,960)
Principal payments on finance lease liabilities(3,339)(2,133)(6,411)(4,266)
Net cash used in financing activities(19,413)(17,122)(23,392)(19,825)
Net change in cash and cash equivalents10,083 42,091 (30,351)119,382 
Cash and cash equivalents at beginning of period481,309 376,234 521,743 298,943 
Cash and cash equivalents at end of period$491,392 $418,325 $491,392 $418,325 


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

Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
(Dollar amounts in thousands)
Net sales by product category
Specialty products$539,466 $570,990 $1,043,300 $1,138,828 
Structural products228,897 244,977 451,307 475,043 
Total net sales$768,363 $815,967 $1,494,607 $1,613,871 
Gross profit by product category
Specialty products$104,350 $108,841 $208,399 $215,468 
Structural products18,094 26,962 41,726 53,874 
Total gross profit$122,444 $135,803 $250,125 $269,342 
Gross margin % by product category
Specialty products19.3 %19.1 %20.0 %18.9 %
Structural products7.9 %11.0 %9.2 %11.3 %
Company gross margin %15.9 %16.6 %16.7 %16.7 %

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

The following schedule reconciles net income to Adjusted EBITDA (non-GAAP):
Three Months EndedSix Months EndedTrailing Twelve Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023June 29, 2024July 1, 2023
(In thousands)
Net income$14,336 $24,466 $31,828 $42,278 $38,086 $133,773 
Adjustments:
Depreciation and amortization10,120 7,951 19,553 15,669 35,927 30,018 
Interest expense, net4,801 6,311 9,425 13,998 19,173 33,722 
Provision for income taxes4,710 7,722 10,262 14,144 29,468 44,019 
Share-based compensation expense1,405 1,926 3,755 6,495 9,315 12,175 
Amortization of deferred gains on real estate(984)(984)(1,968)(1,968)(3,934)(3,934)
Pension termination and related expenses(1)(2)
— 594 — 1,188 31,628 1,188 
Acquisition-related costs(1)(3)(5)
— — — 17 261 1,272 
Restructuring and other(1)(4)(5)
7 993 321 4,092 143 6,930 
Adjusted EBITDA$34,395 $48,979 $73,176 $95,913 $160,067 $259,163 
(1)Reflects non-recurring items of approximately $1.6 million in beneficial items in the prior quarterly period. For the current year six-month period, reflects non-recurring, beneficial items of approximately $0.3 million and the prior year six-month period reflects $5.3 million of non-recurring, beneficial items. For the trailing twelve months ended, reflects approximately $32.0 million of non-recurring, beneficial items, and approximately $9.4 million of non-recurring, beneficial items, in the prior trailing twelve- month period.
(2)Reflects expenses related to our previously disclosed settlement of the BlueLinx Corporation Hourly Retirement Plan (defined benefit) in 4Q 2023.
(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.
(5)Certain amounts for prior periods in fiscal 2023 have been reclassified for Acquisition-related costs and Restructuring and other.
    
6


The following tables reconciles Net income and Diluted earnings per share to Adjusted net income (non-GAAP) and Adjusted diluted earnings per share (non-GAAP):
Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
(In thousands, except per share data)
Net income$14,336 $24,466 $31,828 $42,278 
Adjustments:
Share-based compensation expense1,405 1,926 3,755 6,495 
Amortization of deferred gains on real estate(984)(984)(1,968)(1,968)
Pension termination and related expenses— 594 — 1,188 
Acquisition-related costs (2)
— — — 17 
Restructuring and other (2)
7 993 321 4,092 
Tax impacts of reconciling items above (1)
(106)(607)(514)(2,463)
Adjusted net income$14,658 $26,388 $33,422 $49,639 
Basic EPS$1.65 $2.70 $3.68 $4.67 
Diluted EPS$1.65 $2.70 $3.66 $4.67 
Weighted average shares outstanding - Basic8,645 9,040 8,641 9,034 
Weighted average shares outstanding - Diluted8,686 9,057 8,680 9,051 
Non-GAAP Adjusted Basic EPS$1.69 $2.92 $3.86 $5.48 
Non-GAAP Adjusted Diluted EPS$1.68 $2.91 $3.85 $5.48 
(1)Tax impact calculated based on the effective tax rate for the respective three and six-month periods presented
(2)Certain amounts for prior periods in fiscal 2023 have been reclassified for Acquisition-related costs and Restructuring and other

In the following table, our Adjusted EBITDA margin (non-GAAP) is calculated and compared to Net income as a percentage of Net sales:
Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
(Dollar amounts in thousands)
Net sales$768,363 $815,967 $1,494,607 $1,613,871 
Net income$14,336 $24,466 $31,828 $42,278 
Net income as a percentage of Net sales1.9 %3.0 %2.1 %2.6 %
Net sales$768,363 $815,967 $1,494,607 $1,613,871 
Adjusted EBITDA - non-GAAP(1)
$34,395 $48,979 $73,176 $95,913 
Adjusted EBITDA margin - non-GAAP4.5 %6.0 %4.9 %5.9 %

(1)See the table that reconciles Net income to Adjusted EBITDA (non-GAAP)
7

The following schedule reconciles Total debt and finance leases to: Net debt (non-GAAP) and to Net debt excluding finance lease liabilities for real property (non-GAAP). The calculations of Net leverage ratio (non-GAAP) and Net leverage ratio excluding real property finance leases liabilities (non-GAAP) is also presented.

As of
June 29, 2024December 30, 2023July 1, 2023
($ amounts in thousands)
Long term debt(1)
$300,000 $300,000 $300,000 
Finance lease liabilities for equipment and vehicles47,979 42,252 27,743 
Finance lease liabilities for real property243,359 243,174 243,445 
Total debt and finance leases591,338 585,426 571,188 
Less: available cash and cash equivalents491,392 521,743 418,325 
Net debt (non-GAAP)$99,946 $63,683 $152,863 
Net debt, excluding finance lease liabilities for real property (non-GAAP)$(143,413)$(179,491)$(90,582)
Trailing twelve-month adjusted EBITDA (non-GAAP, see above reconciliation)$160,067 $182,804 $259,163 
Net leverage ratio0.6x0.3x0.6x
Net leverage ratio excluding real property finance lease liabilities(2)
(0.9x)(1.0x)(0.3x)

(1) As of June 29, 2024, December 30, 2023, and July 1, 2023, our long-term debt is comprised of $300 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 $294.4 million, $293.7 million, and $293.1 million as of June 29, 2024, December 30, 2023, and July 1, 2023, respectively. This presentation is net of their unamortized issuance costs and discount. Our senior secured notes are presented in this table at their face value for the purposes of calculating our net leverage ratio.
(2) Net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement.


The following schedule reconciles Net cash provided by operating activities to Free cash flow (non-GAAP):

Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
(In thousands)
Net cash provided by operating activities$35,803 $64,153 $4,668 $153,118 
Less: Property and equipment investments(6,454)(5,031)(11,901)(14,039)
Free cash flow - non-GAAP$29,349 $59,122 $(7,233)$139,079 
8
BlueLinx Q2 2024 Results Delivering What Matters July 31, 2024 © BlueLinx 2024. All Rights Reserved. 1 EXHIBIT 99.2

 
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 strategy, liquidity, and debt, our long-run positioning relative to industry conditions, future share repurchases, and our third quarter 2024 outlook. 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: housing market conditions; pricing and product cost variability; volumes of product sold; competition; the cyclical nature of the industry in which we operate; 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; effective inventory management relative to our sales volume or the prices of the products we produce; business disruptions; potential acquisitions and the integration and completion of such acquisitions; 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; the impacts of climate change; 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 effects of epidemics, global pandemics or other widespread public health crises and governmental rules and regulations; 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 potential to incur more debt; 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 or availability of third-part freight providers; changes in insurance-related deductible/retention reserves based on actual loss development 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; 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; interest rate risk, which could cause our debt service obligations to increase; and changes in, or interpretation of, accounting principles. 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

 
Opening Remarks 3 Shyam Reddy President & CEO

 
4 STRATEGIC PRIORITIES

 
n Net sales of $768M, down 6% year-over-year q Impacted by specialty deflation and challenging market conditions for structural n Gross profit of $122M, down 10% year-over-year q 85% of gross profit from specialty products n Gross margin of 15.9%, down 70 bps year-over-year q 19.3% specialty gross margin, including the net benefit of $2.7M from a duty-related matters q 7.9% structural gross margin n Net income of $14M and Diluted EPS of $1.65 n Adjusted net income of $15M and Adjusted Diluted EPS of $1.68 n Adjusted EBITDA of $34M, or 4.5% of sales, including the net benefit of $2.7M from duty-related matters n Generated operating cash of $36M q Free cash flow of $29M q Net leverage of (0.9x) (1) Note: see appendix for reconciliations to all non-GAAP measures (1) Excludes real property finance leases. Net leverage ratio of 0.6x including real property finance lease liabilities. Net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. Explosive profitable growth with a highly engaged team  5 SECOND QUARTER 2024 RESULTS 2Q 2024 Sales by Product Category Specialty Products 70% Structural Products 30% 2Q 2024 Gross Profit by Product Category Specialty Products 85% Structural Products 15%

 
n New home starts decelerating q June single-family housing starts down 2% from May, lowest levels since October 2023 q Builder's confidence was 42 in July, down 14 points from July 2023 and down slightly from June 2024 after improving earlier the year (1) n Home affordability remains challenging q Mortgage rates remain elevated q Home price appreciation n Repair and remodel market expected to decline in 2024(2) q 2024 spend expected to be lower than 2023 and 2022(2) q Existing home sales remain low Note: Management’s estimate by end market for two-step distribution of building materials (1) 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 (2) 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. 6 U.S. HOUSING INDUSTRY BLUELINX SALES BY END MARKET Repair & Remodel 45% New Home Construction 40% Commercial 15%

 
Financial Review 7 Andy Wamser Chief Financial Officer

 
n Net Sales decreased 5.8% to $768M q Specialty product sales decreased 6% q Structural product sales decreased 7% n Gross Margin of 15.9%, down 70 bps q Includes a benefit of approximately $2.7M related to import duties from prior periods n Adjusted Diluted EPS of $1.68 * n Adjusted EBITDA of $34M * q Adjusted EBITDA margin of 4.5% * q Adjusted EBITDA margin of 4.1% excluding duty- related matters n Free Cash Flow of $29M * q Cash Flow from Operations $36M q Capital Expenditures of $6M; finance leases $3M 8 SECOND QUARTER 2024 RESULTS Note: All comparisons versus the prior-year period unless otherwise noted. (1) Excludes real property finance lease liabilities. Net leverage including real property finance lease liabilities was 0.6x and 0.6x for Q2 2024 and Q2 2023, respectively. Net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. Q2 Commentary $ in millions, except per share data Q2 2024 Q2 2023 Variance Net Sales $768 $816 (5.8)% Gross Profit $122 $136 (9.8)% Gross Margin % 15.9% 16.6% (70) bps Adjusted Net Income * $15 $26 (44.5)% Adjusted Diluted EPS * $1.68 $2.91 (42.3)% Adjusted EBITDA * $34 $49 (29.8)% Adjusted EBITDA % * 4.5% 6.0% (150) bps Free Cash Flow * $29 $59 $(30) Net Leverage (1) (0.9x) (0.3x) (0.6x) * Non-GAAP. See Appendix for reconciliations for all non-GAAP figures

 
($ millions) n Net sales of $539M, down 6% q Driven by impact of price deflation vs. prior year q Specialty is approximately 70% of total net sales n Gross profit of $104M, down 4% q Specialty gross profit 85% of total gross profit q Includes the benefit of duty-related matters n Gross margin of 19.3%, up 20 bps q 18.9% margin excluding duty-related matters Q2 Commentary 9 SPECIALTY PRODUCTS Q2 2024 RESULTS $788 $724 $592 $568 $571 $559 $487 $504 $539 22.9% 20.9% 21.1% 18.8% 19.1% 19.8% 19.4% 20.7% 19.3% Net Sales GM Rate 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24

 
($ millions) n Net sales of $229M, down 7% q Driven by lower lumber pricing, and lower lumber and panel volumes q Year-over-year average market pricing for commodities was mixed: Ÿ 6% decrease in average price of lumber Ÿ 13% increase in average price of panels n Gross profit of $18M, down 33% q Structural gross profit 15% of total gross profit n Gross margin of 7.9%, down 310 bps Q2 Commentary 10 STRUCTURAL PRODUCTS Q2 2024 RESULTS $452 $336 $256 $230 $245 $251 $226 $222 $229 4.7% 11.3% 10.4% 11.7% 11.0% 11.3% 10.6% 10.6% 7.9% Net Sales GM Rate 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24

 
* Net Leverage including real property financing leases was 0.9x, 0.6x, and 0.6x in Q2 2022, Q2 2023, and Q2 2024 respectively. Net leverage ratio excluding finance lease obligations for real property, as presented above, is included within the terms of our revolving credit agreement. (1) See appendix for reconciliations for non-GAAP measures n At the end of Q2 2024: § Net leverage of (0.9x) (1) § Net debt of $(143)M (1) § Cash and Cash Equivalents of $491M § Total available liquidity of $837.9M n No material outstanding debt maturities until 2029 ($ millions) Debt Maturity Schedule * $350 million revolver less $4 million of reserves and letters of credit; $346 million of net availability Note: debt maturity schedule does not include finance lease obligations Net Leverage (non-GAAP)* 11 BALANCE SHEET $300 $28 $28 $48 $300 $300 $300 $328 $328 $348 Finance Leases Excluding Real Property Senior Notes Q2 2022 Q2 2023 Q2 2024 0.4 (0.3) (0.9) Net Leverage Q2 2022 Q2 2023 Q2 2024 Gross Debt Structure

 
2Q 2024 Free Cash Flow Walk $ in millions Net Working Capital Management(1) $ in millions See Appendix for reconciliations for all non-GAAP figures (1) Net working capital includes accounts receivable, inventory, and accounts payable; Return on net working capital is calculated by dividing trailing twelve month (TTM) Adjusted EBITDA by net working capital as of the end of the period presented or discussed 12 WORKING CAPITAL AND FREE CASH FLOW $761 $688 $584 $531 $484 $459 $414 $487 $452 Total Net Working Capital Return on Net Working Capital 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 $200 $300 $400 $500 $600 $700 $800 —% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

 
INVEST IN THE BUSINESS STRATEGIC ACQUISITIONS SHARE REPURCHASES OPERATING CASH FLOW GUIDING PRINCIPLES n Maintain strong balance sheet and financial stability n Long-term net leverage could increase to at or around 2.0x when considering growth n Invest in business through fluctuating economic cycles n Acquisitions aligned to strategy n Opportunistic share repurchases FREE CASH FLOW RETURN TO SHAREHOLDERSGROWTH AND MARGIN EXPANSION 13 CAPITAL ALLOCATION FRAMEWORK

 
Q&A 14

 
Appendix 15

 
20-year average (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: 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. (3) 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 above 20-year average Starts expected to be around 20-year average and well above 2009-2011 levels 16 MACRO TRENDS Remodeling spend expected to slow in 2024 20-year average 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 20 24 E 20 25 E 20 26 E 20 27 E — 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Total U.S. Single Family Housing Starts (SFHS) Housing starts in thousands(1) 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 20 24 20 25 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 LIRA Remodeling Activity Index TTM Moving Total - Dollars in billions(2) 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 20 24 P 20 25 P 20 26 P 20 27 P —% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 30 Year Fixed Mortgage Rates As of July 2024(3)

 
Average Q2 24 lumber prices declined 6% year- over-year and declined 5% from Q1 24 (1) Source: Random Lengths and company analysis 17 WOOD-BASED COMMODITY PRICE TRENDS Average Q2 24 panel prices increased 13% year-over-year and decreased 3% from Q1 24 484 540 467 347 357 344 357 368 400 411 762 687 987 1,243 466 702 1,244 797 587 449 413 408 437 383 403 383 20 18 Q 1 20 18 Q 2 20 18 Q 3 20 18 Q 4 20 19 Q 1 20 19 Q 2 20 19 Q 3 20 19 Q 4 20 20 Q 1 20 20 Q 2 20 20 Q 3 20 20 Q 4 20 21 Q 1 20 21 Q 2 20 21 Q 3 20 21 Q 4 20 22 Q 1 20 22 Q 2 20 22 Q 3 20 22 Q 4 20 23 Q 1 20 23 Q 2 20 23 Q 3 20 23 Q 4 20 24 Q 1 20 24 Q 2 — 200 400 600 800 1,000 1,200 1,400 503 549 483 389 373 350 337 343 387 401 682 713 1,003 1,566 766 715 1,232 874 671 528 499 532 636 585 615 599 20 18 Q 1 20 18 Q 2 20 18 Q 3 20 18 Q 4 20 19 Q 1 20 19 Q 2 20 19 Q 3 20 19 Q 4 20 20 Q 1 20 20 Q 2 20 20 Q 3 20 20 Q 4 20 21 Q 1 20 21 Q 2 20 21 Q 3 20 21 Q 4 20 22 Q 1 20 22 Q 2 20 22 Q 3 20 22 Q 4 20 23 Q 1 20 23 Q 2 20 23 Q 3 20 23 Q 4 20 24 Q 1 20 24 Q 2 — 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Framing Lumber Composite Index $/mbf, Quarterly Average Price(1) As of June 2024 Structural Panel Composite Index $/msf, Quarterly Average Price(1) As of June 2024

 
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, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities. BlueLinx calculates Net Debt as its total short- and long-term debt, including outstanding balances under our term loan and revolving credit facility and the total amount of its obligations under finance leases, less cash and cash equivalents. Net Debt Excluding Real Property Finance Lease Liabilities is calculated in the same manner as Net Debt, except the total amount of obligations under real estate finance leases are excluded. Although our credit agreements do not contain leverage covenants, a net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. We believe that Net Debt and Net Debt Excluding Real Property Finance Lease Liabilities are useful to investors because our management reviews both metrics 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 Twelve-Month Trailing Adjusted EBITDA. Our calculation of Net Leverage Ratio Excluding Real Property Finance Lease Liabilities is determined by dividing our Net Debt Excluding Real Property Finance Lease Liabilities by Twelve-Month Trailing Adjusted EBITDA. We believe that these ratios are useful to investors because they are indicators of our ability to meet our future financial obligations. In addition, our Net Leverage Ratio is a measure that is frequently used by investors and creditors. Our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are not made in accordance with GAAP and are not intended to present a superior measure of our financial condition from measures and ratios determined under GAAP. The calculations of our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are presented in the table on page 25. Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. 18 Non-GAAP Measures and Supplemental Financial Information

 
Supplemental Financial Information Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q2 2022 – Q2 2024 In millions where dollars are presented 19 Supplementary Financial Information Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net sales by category Specialty products $ 539 $ 504 $ 487 $ 559 $ 571 $ 568 $ 592 $ 724 $ 788 Structural products 229 222 226 251 245 230 256 336 452 Net sales $ 768 $ 726 $ 713 $ 810 $ 816 $ 798 $ 848 $ 1,061 $ 1,239 Net sales mix by category Specialty products 70 % 69 % 68 % 69 % 70 % 71 % 70 % 68 % 64 % Structural products 30 % 31 % 32 % 31 % 30 % 29 % 30 % 32 % 36 % Net sales 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % Gross profit $ by category Specialty products $ 104 $ 104 $ 95 $ 111 $ 109 $ 107 $ 125 $ 151 $ 180 Structural products 18 24 24 28 27 27 27 38 21 Gross profit $ 122 $ 128 $ 119 $ 139 $ 136 $ 134 $ 151 $ 189 $ 201 Gross margin percentage by category Specialty products 19 % 21 % 19 % 20 % 19 % 19 % 21 % 21 % 23 % Structural products 8 % 11 % 11 % 11 % 11 % 12 % 10 % 11 % 5 % Total gross margin % 16 % 18 % 17 % 17 % 17 % 17 % 18 % 18 % 16 % Gross profit mix by category Specialty products 85 % 81 % 80 % 80 % 80 % 80 % 82 % 80 % 89 % Structural products 15 % 19 % 20 % 20 % 20 % 20 % 18 % 20 % 11 % Gross profit 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 %

 
Adjusted Net Income and Adjusted Diluted EPS reconciliation for fiscal quarters Q2 2022 - Q2 2024 In thousands where dollars are presented, except per share data 20 Non-GAAP Reconciliation (1) Reflects expenses related to our previously disclosed settlement of the BlueLinx Corporation Hourly Retirement Plan (defined benefit) in 4Q 2023. (2) Reflects primarily legal, professional, technology and other integration costs. (3) Reflects costs related to our restructuring activities, such as severance, and other one-time non-operating items. (4) Tax impact calculated based on the effective tax rate for the respective quarterly periods Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net income (loss) $ 14,336 $ 17,492 $ (18,124) $ 24,382 $ 24,466 $ 17,812 $ 31,986 $ 59,509 $ 71,272 Adjustments: Share-based compensation expense 1,405 2,350 2,580 2,980 1,926 4,569 3,588 2,092 1,775 Amortization of deferred gains on real estate (984) (984) (982) (984) (984) (984) (983) (983) (984) Gain from sales of property — — — — — — — — (144) Pension settlement and related expenses(1) — — 31,034 594 594 594 — — — Acquisition-related costs(2) — — 186 75 — 17 1,022 233 — Restructuring and other(3) 7 314 (784) 606 993 3,099 1,804 1,034 1,126 Tax impacts of reconciling items above (4) (106) (405) 11,891 (889) (607) (1,933) (1,168) (623) (409) Adjusted net income - non-GAAP $ 14,658 $ 18,767 $ 25,801 $ 26,764 $ 26,388 $ 23,174 $ 36,249 $ 61,262 $ 72,636 Basic EPS $ 1.65 $ 2.02 $ (2.08) $ 2.72 $ 2.70 $ 1.96 $ 3.53 $ 6.44 $ 7.64 Diluted EPS $ 1.65 $ 2.00 $ (2.08) $ 2.71 $ 2.70 $ 1.94 $ 3.50 $ 6.38 $ 7.48 Weighted average shares outstanding - Basic 8,645 8,653 8,704 8,936 9,040 9,059 9,036 9,230 9,324 Weighted average shares outstanding - Diluted 8,686 8,741 8,757 8,970 9,057 9,157 9,128 9,328 9,520 Non-GAAP Adjusted Basic EPS - non-GAAP $ 1.69 $ 2.16 $ 2.96 $ 2.99 $ 2.92 $ 2.55 $ 4.01 $ 6.63 $ 7.79 Non-GAAP Adjusted Diluted EPS - non-GAAP $ 1.68 $ 2.14 $ 2.94 $ 2.98 $ 2.91 $ 2.53 $ 3.97 $ 6.56 $ 7.63

 
The following schedule reconciles Net cash provided by operating activities to Free cash flow (non-GAAP): In millions $ 21 Non-GAAP Reconciliation Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net cash provided by (used in) operating activities $ 36 $ (31) $ 76 $ 78 $ 64 $ 89 $ 154 $ 143 $ 101 Less: Property and equipment investments (6) (5) (9) (5) (5) (9) (17) (12) (4) Free cash flow - non-GAAP $ 30 $ (36) $ 67 $ 73 $ 59 $ 80 $ 137 $ 131 $ 97

 
Supplemental Financial Information Net Working Capital by Fiscal Quarter Q2 2022 – Q2 2024 22 Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Current assets: Receivables, less allowance for doubtful accounts $ 274 $ 288 $ 228 $ 298 $ 294 $ 299 $ 252 $ 360 $ 423 Inventories, net 358 371 344 364 379 409 484 536 578 632 659 572 662 674 708 736 896 1,001 Current liabilities: Accounts payable 179 172 158 202 190 177 152 208 240 179 172 158 202 190 177 152 208 240 Net Working Capital $ 453 $ 487 $ 414 $ 460 $ 484 $ 531 $ 584 $ 688 $ 761 Each component used to compute Net Working Capital in this table is determined in accordance with GAAP and reported in our consolidated balance sheets. Amounts presented are rounded up in this presentation to align with figures as presented in the deck. As a result, the rounded figures in this presentation may not agree to presentation in other formats we've published such as earnings news releases, other earnings decks, or other similar materials presented elsewhere. For more information, please see our public filings for the periods presented.

 
Adjusted EBITDA reconciliation by fiscal quarter, Q2 2022 – Q2 2024 In millions where dollars are presented 23 (1) Reflect expenses related to our previously disclosed settlement of the BlueLinx Corporation Hourly Retirement Plan (defined benefit) in 4Q 2023. (2) Reflects primarily legal, professional, technology and other integration costs. (3) Reflects costs related to our restructuring activities, such as severance, and other one-time non-operating items.. Note: Figures are rounded in this presentation to align with figures as presented in the deck. As a result, the rounded figures in this presentation may not agree to presentation in other formats we have published such as earnings releases, other earnings decks, or other similar materials presented elsewhere. Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net income (loss) $ 14 $ 17 $ (18) $ 24 $ 24 $ 18 $ 32 $ 60 $ 71 Adjustments: Depreciation and amortization 10 9 8 8 8 8 7 7 7 Interest expense, net 5 5 4 6 6 8 9 10 11 Provision for (benefit from) income taxes 5 6 10 9 8 6 9 21 21 Share-based compensation expense 1 2 3 3 2 4 4 2 2 Amortization of deferred gain on real estate (1) (1) (1) (1) (1) (1) (1) (1) (1) Gain from sales of property — — — — — — — — — Pension settlement and related expenses(1) — — 31 1 1 1 — — — Acquisition-related costs(2) — — — — — — 1 — — Restructuring and other (3) — 1 (1) 1 1 3 2 1 1 Adjusted EBITDA - non-GAAP $ 34 $ 39 $ 36 $ 50 $ 49 $ 47 $ 63 $ 100 $ 112 Net Sales $ 768 $ 726 $ 713 $ 810 $ 816 $ 798 $ 848 $ 1,061 $ 1,239 Adjusted EBITDA - non-GAAP 34 39 36 50 49 47 63 100 112 Adjusted EBITDA Margin - non-GAAP 4.5 % 5.4 % 5.1 % 6.2 % 6.0 % 5.9 % 7.4 % 9.4 % 9.1 % Non-GAAP Reconciliation

 
Twelve-Month Trailing Adjusted EBITDA reconciliation by Fiscal Quarter, Q2 2022 – Q2 2024 In millions $ 24 Non-GAAP Reconciliation (1) Reflects expenses related to our previously disclosed settlement of the BlueLinx Corporation Hourly Retirement Plan in 4Q 2023. (2) Reflects primarily legal, professional, technology and other integration costs. (3) Reflects costs related to our restructuring activities, such as severance, and other one-time non-operating items.. Note: Figures are rounded in this presentation to align with figures as presented in the deck. As a result, the rounded figures in this presentation may not agree to presentation in other formats we have published such as earnings releases, other earnings decks, or other similar materials presented elsewhere. Twelve-Month Trailing as of the End of Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net income $ 38 $ 48 $ 49 $ 99 $ 134 $ 181 $ 296 $ 338 $ 325 Adjustments: Depreciation and amortization 36 34 32 31 30 29 28 27 27 Interest expense, net 19 21 24 29 34 39 42 43 41 Term loan debt issuance costs — — — — — — — 2 2 Provision for (benefit from) income taxes 29 32 33 32 44 58 99 115 110 Share-based compensation expense 9 10 12 13 12 12 10 8 7 Amortization of deferred gain on real estate (4) (4) (4) (4) (4) (4) (4) (4) (4) Gain from sales of property — — — — — — — (7) (7) Pension settlement and related expenses(1) 32 32 33 2 1 1 — — — Acquisition-related costs(2) — — — 1 1 1 1 — — Restructuring and other (3) — 1 4 6 7 7 6 6 5 Adjusted EBITDA - non-GAAP $ 160 $ 174 $ 183 $ 209 $ 259 $ 324 $ 478 $ 528 $ 506

 
Fiscal Quarter 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 ($ amounts in thousands) Long term debt(1) $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Finance lease liabilities for equipment and vehicles 47,979 48,445 42,252 34,008 27,743 27,162 29,300 28,842 27,577 Finance lease liabilities for real property 243,359 243,622 243,174 243,335 243,445 243,602 243,775 243,894 243,848 Total debt and finance leases 591,338 592,067 585,426 577,343 571,188 570,764 573,075 572,736 571,425 Less: available cash and cash equivalents 491,392 481,309 521,743 469,783 418,325 376,234 298,943 229,364 104,952 Net debt (non-GAAP) $ 99,946 $ 110,758 63,683 107,560 152,863 $ 194,530 $ 274,132 343,372 466,473 Net debt, excluding finance lease liabilities for real property (non-GAAP) $ (143,413) $ (132,864) $ (179,491) $ (135,775) $ (90,582) $ (49,072) $ 30,357 $ 99,478 $ 222,625 Trailing twelve-month adjusted EBITDA (non-GAAP, see above reconciliation) $ 160,067 $ 174,651 $ 182,804 $ 209,435 $ 259,163 $ 322,392 $ 477,742 $ 526,617 $ 505,537 Net leverage ratio 0.6x 0.6x 0.3x 0.5x 0.6x 0.6x 0.6x 0.7x 0.9x Net leverage ratio excluding real property finance lease liabilities(2) (0.9x) (0.8x) (1.0x) (0.6x) (0.3x) (0.2x) 0.1x 0.2x 0.4x Non-GAAP Reconciliation / Supplemental Financial Information The following schedule reconciles Total debt and finance leases to: Net debt (non-GAAP) and to Net debt excluding finance lease liabilities for real property (non-GAAP). The calculations of Net leverage ratio (non-GAAP) and Net leverage ratio excluding real property finance leases liabilities (non-GAAP) is also presented. (1) For the periods presented above, 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 consolidated balance sheet net of unamortized discount and unamortized debt issuance costs. Our senior secured notes are presented in this table at their face value for the purposes of calculating our net leverage ratio. (2) Net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. 25

 
v3.24.2
Cover Page
Jul. 30, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 30, 2024
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
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