EX-99.2 WEBCAST CONFERENCE CALL SLIDES
BlueLinx
First Quarter 2006
Operational & Financial Review
BlueLinx Holdings Inc.
Safe Harbor Statement and Use of Non-GAAP and Pro Forma Information
Forward-Looking Statement Safe Harbor - This presentation includes "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. All of these forward-looking statements are based on estimates and
assumptions made by our management that, although believed by BlueLinx to be reasonable, are inherently uncertain. Forward-
looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and
technological factors outside of its control, that may cause its business, strategy or actual results to differ materially from the
forward-looking statements. These risks and uncertainties may include, among other things: changes in the supply and/or
demand for products which we distribute; the activities of competitors; changes in significant operating expenses; changes in the
availability of capital; the ability to identify acquisition opportunities and effectively and cost-efficiently integrate acquisitions;
general economic and business conditions in the United States; adverse weather patterns or conditions; acts of war or terrorist
activities; variations in the performance of the financial markets; and other factors described in the "Risk Factors" section in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005, and in its periodic reports filed with the
SEC from time to time. In addition, the statements in this presentation are made as of May 4, 2006. The Company expects that
subsequent events or developments will cause its views to change. The Company undertakes no obligation to update any of the
forward-looking statements made herein, whether as a result of new information, future events, changes in expectation or
otherwise. These forward-looking statements should not be relied upon as representing the Company's views as of any date
subsequent to May 4, 2006.
Use of Non-GAAP and Pro Forma* Financial Information - To supplement GAAP financial statements, the Company uses
non-GAAP, or pro forma measures of operating results. This non-GAAP, or pro forma financial information is provided as
additional information for investors and is not in accordance with or an alternative to GAAP. These adjusted results exclude
certain costs, expenses, gains and losses, and we believe their exclusion can enhance an overall understanding of our past
financial performance and also our prospects for the future. These adjustments to our GAAP results are made with the intent of
providing both management and investors a more complete understanding of the operating performance of the Company as
opposed to GAAP results, which may include non-recurring, infrequent or other non-cash charges that are not material to the
ongoing performance of the Company's business. Company management uses these non-GAAP and pro forma results as a
basis for planning and forecasting core business activity in future periods. The presentation of this additional information is not
meant to be considered in isolation or as a substitute for net earnings, diluted earnings per share or net cash provided by (used
in) operating activities prepared in accordance with generally accepted accounting principles in the United States.
* The pro forma results for years 2003 and 2004 in the tables in the appendix of this presentation reflect the acquisition by BlueLinx of the operating assets of
the building products distribution division of Georgia-Pacific and are presented as if BlueLinx Holdings had been a stand alone entity since December 29,
2002. Pro forma results also have been adjusted for the company's initial public offering and the mortgage refinancing transaction, both of which occurred in
the fourth quarter of fiscal 2004.
BlueLinx Holdings Inc.
Introduction
Steve Macadam
Chief Executive Officer
BlueLinx Holdings Inc.
Introduction
Goals and Strategic Objectives
Profitably grow specialty revenues to 60+% of total sales
Profitably grow structural while reducing exposure to volatility
Outgrow the market
BlueLinx Holdings Inc.
Introduction
1st Quarter Highlights
Revenue increased 1.8% to $1.38 billion
Gross margin at 9.4% v 8.8% in Q1 '05
Net income of $9.8 million, or $0.32 per share compared to net income of $8.4
million, or $0.28 per share
Specialty unit volume grew 14.9% over same period last year
BlueLinx Holdings Inc.
Operations Review
George Judd
President & Chief Operating Officer
BlueLinx Holdings Inc.
Unit Volume Growth vs. End-Use Market Growth
F2003 F2004 F2005
TTM
Estimated BlueLinx Unit Volume Growth 2.5% 8.2% 3.9% 4.3%
Estimated Weighted End-Use Market Growth 2.0% 4.5% 4.4% 4.1%
BlueLinx versus End-Use Market Growth 0.5% 3.7% (0.5%) 0.2%
BlueLinx Holdings Inc.
Unit Volume Growth by Quarter and TTM
14.9% Specialty product growth driven by engineered lumber, insulation,
particleboard, vinyl siding and specialty lumber
particleboard, vinyl siding and specialty lumber
particleboard, vinyl siding and specialty lumber
BlueLinx Holdings Inc.
Quarterly Sales
Specialty unit volume growth large driver of sales increase
Specialty sales represented 42% of total sales for the quarter versus
37% for the same period last year
$ millions
(unaudited)
(unaudited)
(unaudited)
BlueLinx Holdings Inc.
Quarterly Gross Margin
Specialty gross margin growth reflects robust unit volume growth and
improved procurement and product management processes
Structural gross margin decline reflects generally declining price levels
$ millions
(unaudited)
(unaudited)
(unaudited)
BlueLinx Holdings Inc.
Inventory Analysis
Specialty inventories increased in preparation for the summer building season
and to support higher sales levels
Structural inventories increased slightly on a seasonal basis but are
significantly below year-ago levels
Reduction from year-ago reflects decreased prices and inventory
management strategy to mitigate exposure to changing prices
$ millions
(unaudited)
* Other includes in-transit inventory accruals, discounts, allowances, reserves, and other miscellaneous items.
* Other includes in-transit inventory accruals, discounts, allowances, reserves, and other miscellaneous items.
BlueLinx Holdings Inc.
Other Key Indicators
1st Quarter
Working capital turn days at 40 v 43 same period last year
TTM working capital turn days at 40, same as Q1 2005 TTM
Q1 reduction of 1.7 % in delivery costs/ULE and increase of 2.7% in material
handling costs/ULE
(ULE or unit load equivalent)
BlueLinx Holdings Inc.
Strategic Initiatives
Continue gross margin improvement initiative by increasing mix of specialty and
mitigating volatility of structural
Invest in people and processes necessary to support specialty business growth
Continue focus on targeted, growing accounts that serve attractive high-growth
markets
Expand relationships with existing specialty product vendors who recognize the
BlueLinx value proposition
Increase volume in under represented segments, particularly industrials
Be a patient, disciplined acquirer
BlueLinx Holdings Inc.
Financial Review
David Morris
Chief Financial Officer & Treasurer
BlueLinx Holdings Inc.
Quarterly Revenue Review
$ millions
(unaudited)
(unaudited)
(unaudited)
BlueLinx Holdings Inc.
Quarterly Gross Profit
$ millions
(unaudited)
(unaudited)
(unaudited)
BlueLinx Holdings Inc.
Quarterly Operating Income
$ millions
(unaudited)
(unaudited)
(unaudited)
BlueLinx Holdings Inc.
Quarterly Net Income
$ millions
(unaudited)
(unaudited)
(unaudited)
BlueLinx Holdings Inc.
Quarter End Balance Sheets
$ millions
$ millions
BlueLinx Holdings Inc.
Unaudited Statement of Cash Flows
$ millions
$ millions
Appendix
TOPIC PAGE
Revenues by Quarter 22
Unit Volume Growth by Quarter 23
Market Growth by Quarter 24
Gross Margin by Quarter 25
Inventory by Quarter 26
Quarterly Volume by Region 27
Gross Margin % Analysis 28
Channel Mix Analysis 29
Structural Product Price Trends 30
BlueLinx Holdings Inc.
Revenues by Quarter
Revenues by Quarter
Revenues by Quarter
BlueLinx Holdings Inc.
Unit Volume Growth By Quarter
Unit Volume Growth By Quarter
Unit Volume Growth By Quarter
BlueLinx Holdings Inc.
Market Growth By Quarter
Source: Data from Resource Information Systems, Inc., or RISI, updated as of April 2006, weighted using management's estimates.
Source: Data from Resource Information Systems, Inc., or RISI, updated as of April 2006, weighted using management's estimates.
BlueLinx Holdings Inc.
Gross Margin by Quarter
Gross Margin by Quarter
Gross Margin by Quarter
BlueLinx Holdings Inc.
Inventory by Quarter
Inventory by Quarter
Inventory by Quarter
BlueLinx Holdings Inc.
Quarterly Volume by Region
*Miscellaneous consists of cash and competitive discounts, Canadian conversion, service revenue and other miscellaneous items.
$ millions
(unaudited)
(unaudited)
(unaudited)
BlueLinx Holdings Inc.
Gross Margin % Analysis
Gross Margin % Analysis
Gross Margin % Analysis
BlueLinx Holdings Inc.
Revenue Channel Mix Analysis
Revenue Channel Mix Analysis
Revenue Channel Mix Analysis
BlueLinx Holdings Inc.
Structural Products Price Trends
Source: Data from Random Lengths Publications, Inc., updated as of April 28, 2006.
Source: Data from Random Lengths Publications, Inc., updated as of April 28, 2006.
Source: Data from Random Lengths Publications, Inc., updated as of April 28, 2006.
Source: Data from Random Lengths Publications, Inc., updated as of April 28, 2006.