BlueLinx (BXC) 8-K Bluelinx Announces Fourth-quarter Results

BlueLinx Quarterly Review

4th Quarter 2011

Exhibit 99.2

BlueLinx

Holdings Inc.

Forward-Looking

Statement

Safe

Harbor

-

This

presentation

includes

"forward-looking

statements"

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995.

All

of

these

forward-looking

statements

are

based

on

estimates

and

assumptions

made

by

our

management

that,

although

believed

by

us

to

be

reasonable,

are

inherently

uncertain.

Forward-

looking

statements

involve

risks

and

uncertainties,

including,

but

not

limited

to,

economic,

competitive,

governmental

and

technological

factors

outside

of

our

control,

that

may

cause

our

business,

strategy

or

actual

results

to

differ

materially

from

the

forward-looking

statements.

These

risks

and

uncertainties

may

include,

among

other

things:

changes

in

the

supply

and/or

demand

for

products

which

we

distribute,

especially

as

a

result

of

conditions

in

the

residential

housing

market;

general

economic

and

business

conditions

in

the

United

States;

the

activities

of

competitors;

changes

in

significant

operating

expenses;

changes

in

the

availability

of

capital;

the

ability

to

identify

acquisition

opportunities

and

effectively

and

cost-efficiently

integrate

acquisitions;

adverse

weather

patterns

or

conditions;

acts

of

war

or

terrorist

activities;

variations

in

the performance of the financial markets; and other factors described in the "Risk Factors" section in our Annual Report on

Form

10-K

for

the

fiscal

year

ended

January

1,

2011,

and

in

our

other

periodic

reports

filed

with

the

SEC.

In

addition,

the

statements in this presentation are made as of February 15, 2012.  We undertake no obligation to update any of the

forward-looking

statements

made

herein,

whether

as

a

result

of

new

information,

future

events,

changes

in

expectation

or

otherwise.

These

forward-looking

statements

should

not

be

relied

upon

as

representing

our

views

as

of

any

date

subsequent

to

February

15,

2012.

Use

of

Non-GAAP

and

Adjusted

Financial

Information

-

To

supplement

GAAP

financial

information,

we

use

adjusted

measures

of

operating

results

which

are

non-GAAP

measures.

This

non-GAAP

adjusted

financial

information

is

provided

as

additional

information

for

investors.

These

adjusted

results

exclude

certain

costs,

expenses,

gains

and

losses,

and

we

believe

their

exclusion

can

enhance

an

overall

understanding

of

our

past

financial

performance

and

also

our

prospects

for

the

future.

These

adjustments

to

our

GAAP

results

are

made

with

the

intent

of

providing

both

management

and

investors

a

more

complete

understanding

of

our

operating

performance

by

excluding

non-recurring,

infrequent

or

other

non-cash

charges

that

are

not

believed

to

be

material

to

the

ongoing

performance

of

our

business.

The

presentation

of

this

additional

information

is

not

meant

to

be

considered

in

isolation

or

as

a

substitute

for

GAAP

measures

of

net

earnings,

diluted

earnings

per

share

or

net

cash

provided

by

(used

in)

operating

activities

prepared

in

accordance

with

generally

accepted

accounting

principles

in

the

United

States.

3

4

th

Quarter Highlights

Revenue

Up 6.3% to $391.1 million

Housing Starts

Total starts increased 22.6% from the same period last year;

Single family starts increased 2.4% from the same period last year

Prices

Average 4Q ’11 benchmark wood-based structural prices were up

approximately 1.5% compared to 4Q ’10

Unit Volume

Up 5.0% relative to the same period last year

Gross Margin

Total 12.3% vs. 12.1% in 4Q ’10

Net Loss

($10.3) million vs. ($20.2) million in 4Q ’10

EPS

($0.17) per diluted share

Cash Flow

Generated $33.9 million of operating cash flow vs. $18.0 million

for

the year ago quarter

Excess Availability

$118.3 million excess availability on revolving credit facilities

Quarterly Highlights

4

Doug Goforth

Chief Financial Officer and Treasurer

Introduction and Quarterly Review

5

Quarterly Revenue

Revenues

($ in millions)

235.0

316.6

297.1

154.8

161.3

193.6

187.4

165.7

221.4

240.7

4Q '10

1Q '11

2Q '11

3Q '11

4Q '11

$367.9

$390.6

$500.8

$472.9

$391.1

Variance Analysis

$14.5

$4.3

$4.4

Specialty Unit Volume 6.6%

YOY $23.2

or 6.3%

Structural Unit Volume  2.8%

Price/Other                        

$23.2

41%

59%

4Q ‘10

4Q ‘11

59%

41%

Vs. Year Ago

Revenue up 6.3%

Specialty sales up 8.7%, unit volume

up 6.6%

Structural sales up 7.0%, unit volume

up 2.8%

Specialty product sales = 59% of total

sales

% by Product

Specialty

Structural

Other

Structural

Specialty

6

2011 Full Year Results

Revenues

($ in millions)

$1,804.4

$1,755.4

FY '10

FY '11

Operating Expenses

($ in millions)

$218.4

$234.5

FY '10

FY '11

Gross Margin %

11.7%

12.0%

FY '10

FY '11

EBITDA

($ in million)

$1.8

($11.1)

FY '10

FY '11

($11.5)

$12.6

$1.1

Total

($1.4)

$1.4

$-

Gain from insurance settlement

$0.3

($1.4)

($1.1)

Facility consolidation and severance

($10.6)

$10.6

$-

Gain on real estate

($3.0)

$-

($3.0)

Tender offer expenses

$5.2

$-

$5.2

OSB lawsuit settlement

($2.0)

$2.0

$-

Gain on lease modification

FY‘11

FY‘10

Chg

Significant Special Items

($11.5)

$12.6

$1.1

Total

($1.4)

$1.4

$-

Gain from insurance settlement

$0.3

($1.4)

($1.1)

Facility consolidation and severance

($10.6)

$10.6

$-

Gain on real estate

($3.0)

$-

($3.0)

Tender offer expenses

$5.2

$-

$5.2

OSB lawsuit settlement

($2.0)

$2.0

$-

Gain on lease modification

FY‘11

FY‘10

Chg

Significant Special Items

7

Cash Flows

BXC generated $33.9 million in operating cash flow for the quarter

Unaudited

(in million’s)

Q410

Q111

Q211

Q311

Q411

FY 2011

FY 2010

Cash flows from operating activities:

Net loss

(20.2)

$          

(12.3)

$          

(9.8)

$              

(6.2)

$             

(10.3)

$          

(38.6)

$          

(53.2)

$          

Adjustments to reconcile net loss

     to net cash provided by (used in)

     operations:

        Depreciation and amortization

3.1

2.9

2.6

2.6

2.4

10.6

13.4

        Amortization of debt issuance costs

0.9

0.4

0.6

0.9

0.9

2.9

2.0

        Payments from terminating the Georgia-Pacific supply agreement

-

-

-

-

-

-

4.7

        (Gain) loss from sale of facilities

-

(7.2)

-

0.3

(3.7)

(10.6)

-

        Gain from property insurance settlement

-

-

-

(1.2)

-

(1.2)

-

        Changes associated with the ineffective interest rate swap

(1.4)

(1.8)

-

-

0.1

(1.7)

(4.6)

        Write-off debt of issuance costs

-

-

-

-

-

-

0.2

        Vacant property changes

0.1

-

-

-

(0.3)

(0.3)

0.1

        Gain on modification of lease agreement

-

-

-

(2.0)

-

(2.0)

-

        Deferred income tax (benefit) provision

-

(0.2)

-

(0.1)

0.3

-

(0.6)

        Share-based compensation

1.1

0.8

0.3

0.4

0.4

2.0

3.9

        Decrease in restricted cash related to the ineffective interest rate swap,

        insurance, and other

0.5

-

0.4

-

0.5

1.0

6.6

        Changes in assets and liabilities:

            Receivables

47.4

(50.7)

(35.8)

21.0

45.9

(19.7)

-

            Inventories

7.3

(32.1)

7.7

8.9

18.2

2.7

(15.1)

           Accounts payable

(17.9)

32.1

0.4

(5.9)

(20.7)

6.0

(1.8)

           Changes in other working capital

(5.8)

3.8

(5.0)

2.7

(1.7)

(0.4)

15.5

           Other

2.9

1.5

0.3

(3.9)

1.8

(0.3)

(1.0)

Net cash provided by (used in) operating activities

18.0

(62.8)

(38.3)

17.5

33.9

(49.6)

(29.9)

Cash flows from investing activities:

Property and equipment investments

(1.4)

(3.7)

(1.8)

(0.5)

(1.2)

(7.2)

(4.1)

Proceeds from disposition of assets

-

8.8

0.2

-

9.4

18.3

0.7

Net cash (used in) provided by investing activities

(1.4)

5.1

(1.6)

(0.5)

8.2

11.1

(3.4)

Cash flows from financing activities:

Repurchase of common stock

-

-

             ��    

-

-

-

-

(0.7)

Repayments on revolving credit facilities

(136.3)

(73.5)

(98.2)

(177.1)

(129.8)

(478.6)

41.2

Borrowings from revolving credit facilities

131.5

116.8

146.6

106.6

105.8

475.9

-

Payment of principal on mortgage

-

-

-

(38.7)

(3.7)

(42.4)

-

Payments on capital lease obligations

(0.1)

(0.1)

(0.1)

(1.0)

(0.2)

(1.4)

(0.6)

(Decrease) increase in bank overdrafts

(7.5)

12.6

(6.9)

1.5

(8.0)

(0.8)

(4.1)

(Increase) decrease in restricted cash related to the mortgage

(2.8)

(6.2)

(1.6)

35.5

(7.1)

20.6

(11.2)

Debt financing costs

-

-

-

(2.6)

(0.1)

(2.7)

(6.5)

Proceeds from stock offering less expenses paid

-

-

-

58.6

(0.1)

58.5

-

Net cash (used in) provided by financing activities

(15.2)

49.6

39.8

(17.2)

(43.1)

29.1

18.1

Increase (decrease) in cash

1.4

(8.1)

(0.1)

(0.2)

(1.0)

(9.4)

(15.2)

Cash balance, beginning of period

12.9

14.3

6.2

6.1

5.9

14.3

29.5

Cash balance, end of period

14.3

$             

6.2

$               

6.1

$               

5.9

$               

4.9

$               

4.9

$               

14.3

$             

Debt

U.S. Revolver

$115.7 million excess availability as of December 31, 2011

LIBOR plus 3.75% as of December 31, 2011

$400 million facility with additional $100 million uncommitted accordion facility

–

Matures January 7, 2014

–

No financial performance covenants provided Excess Availability is more than the greater of (A) $30 million or (B) the amount

equal to 15% of the lesser of the borrowing base or $60 million.

The borrowing base as of December 31, 2011 was $207.2

million.

Canadian Revolver

$2.6 million excess availability as of December 31, 2011

LIBOR or Bankers’

Acceptance plus 2.50%; Canadian Prime Loan or U.S. Base Rate plus 1.00%

$10 million facility with additional $5 million uncommitted accordion facility

–

Matures August 2014

Mortgage (10 Year Term @ 6.35%)

Matures July 2016

Real estate under the mortgage appraised at approximately $360 million in June 2006

LCR Trap is triggered if operating TTM EBITDAR coverage ratio is

less than 2.5x for two consecutive quarters

Subsequent to the quarter ended July 2, 2011, we negotiated an amendment to our mortgage agreement which in part allowed for the

release of the $38.3 million LCR trap.  The cash was used for an

immediate prepayment on the mortgage loan without incurring

a

prepayment premium

During fiscal 2011 we sold certain properties which reduced our mortgage loan by $6.5 million.  These payments were applied to the

mortgage loan in fiscal 2012

Principal

2012   $9.0 million

2014   $3.0 million

2016   $225.3 million

2013   $2.8 million

2015   $3.1 million

8

9

Cash Cycle

TTM Cash Cycle days at 56, down 2 days sequentially and

up 4 days compared to the prior year quarter

Cash Cycle Days

(in days)

45

48

50

49

48

(25)

(28)

(28)

(27)

(26)

32

35

36

36

34

-40

-20

0

20

40

60

80

100

4Q '10

1Q '11

2Q '11

3Q '11

4Q '11

58

58

52

55

56

Cash

cycle

days

equal

accounts

receivable

days

+

inventory

days

–

accounts

payable

days

using

a

trailing

twelve

month

average

beginning

and

ending

balance.

The

days

calculations

use

calendar

days.

A/R

Inv

A/P & OD's

10

Closing Remarks

4

th

Quarter focus

–

Specialty growth

–

Customer care

–

Gross margin

Long term strategic objectives:

–

Profitably

grow

specialty

revenues

to

60+%

of

total

sales

–

Profitably

manage

structural

–

Profitably

outgrow

the

market

over

the

long

term

11

Appendix

14

Channel Mix Analysis

20

Reconciliation of GAAP Debt  to Non-GAAP Net Debt

16

Gross Margin by Quarter

21

Reconciliation of GAAP Net cash used in operating activities to Non-GAAP EBITDA

13

Revenues by Quarter

19

Structural Product Price Trends

17

Gross Margin % Analysis

18

Operating Expense by Quarter

15

Unit Volume by Quarter

12

Profit and Loss Statement by Quarter

PAGE

TOPIC

12

Profit & Loss Statement by Quarter

Profit & Loss Statement  $ in millions

(1)

, except per share amounts

2009

2010

2011

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

$ 431.1

$ 540.8

$ 464.7

$ 367.9

$ 390.6

$ 500.8

$ 472.9

$ 391.1

$ 1,646.1

$ 1,804.4

$ 1,755.4

Cost of Goods Sold

378.8

476.7

414.8

323.6

344.3

443.2

414.6

343.2

1,452.9

1,593.7

1,545.3

Gross Profit

52.3

64.1

49.9

44.3

46.3

57.6

58.3

47.9

193.2

210.7

210.1

Gross Margin %

12.1%

11.9%

10.7%

12.1%

11.8%

11.5%

12.3%

12.3%

11.7%

11.7%

12.0%

Operating Expenses

SG&A

56.5

57.1

54.1

53.4

48.5

56.8

54.5

48.1

192.5

221.2

207.8

D&A

3.8

3.4

3.1

3.1

2.9

2.6

2.6

2.4

16.9

13.4

10.6

Total Operating Expenses

60.3

60.5

57.2

56.5

51.4

59.4

57.1

50.5

209.4

234.6

218.4

Operating Income

(8.0)

3.6

(7.3)

(12.2)

(5.1)

(1.8)

1.2

(2.6)

(16.2)

(23.9)

(8.3)

Interest Expense

7.3

8.2

9.1

9.1

9.1

7.7

7.0

6.8

32.5

33.7

30.6

(0.8)

(1.3)

(1.2)

(1.3)

(1.8)

-

-

-

6.2

(4.6)

(1.8)

Write-off of debt issue costs

-

-

0.2

-

-

-

-

-

1.4

0.2

-

Other Expense/(Income)

0.2

-

0.2

0.1

-

0.1

0.3

0.1

0.6

0.6

0.5

Income before Tax

(14.7)

(3.3)

(15.6)

(20.1)

(12.4)

(9.6)

(6.1)

(9.5)

(56.9)

(53.8)

(37.6)

Tax Expense/(Benefit)

-

0.1

(0.7)

0.1

(0.1)

0.2

0.1

0.8

4.6

(0.6)

1.0

Net Income/(Loss)

$ (14.7)

$ (3.4)

$ (14.9)

$ (20.2)

$ (12.3)

$ (9.8)

$ (6.2)

$ (10.3)

$ (61.5)

$ (53.2)

$ (38.6)

Diluted EPS

$ (0.48)

$ (0.11)

$ (0.48)

$ (0.66)

$ (0.40)

$ (0.31)

$ (0.12)

$ (0.17)

$ (1.98)

$ (1.73)

$ (0.89)

(1)

Immaterial rounding adjustments and differences may exist between appendix slides, presentation slides, press releases and previously issued presentations.

Changes associated with the

ineffective interest rate swap

2011

2010

Revenues by Quarter

13

14

Revenue Channel Mix Analysis

4Q10

1Q11

2Q11

3Q11

4Q11

4Q11

Variance

from Year

Ago Qtr

Structural Products

Warehouse

65.8%

64.5%

67.5%

68.5%

70.6%

4.8%

Direct

22.8%

22.2%

19.9%

19.7%

19.1%

(3.7%)

Reload

11.4%

13.3%

12.6%

11.8%

10.3%

(1.1%)

Total

100.0%

100.0%

100.0%

100.0%

100.0%

0.0%

Specialty Products

Warehouse

67.7%

65.8%

61.4%

64.9%

69.4%

1.7%

Direct

19.1%

22.3%

22.9%

21.3%

20.1%

1.0%

Reload

13.2%

11.9%

15.7%

13.8%

10.5%

(2.7%)

Total

100.0%

100.0%

100.0%

100.0%

100.0%

0.0%

Total Products

Warehouse

66.9%

65.3%

63.7%

66.3%

69.9%

3.0%

Direct

20.6%

22.3%

21.8%

20.7%

19.7%

(0.9%)

Reload

12.5%

12.4%

14.5%

13.0%

10.4%

(2.1%)

Total

100.0%

100.0%

100.0%

100.0%

100.0%

0.0%

15

Unit Volume by Quarter

2009

2010

2011

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Specialty

2.2%

13.5%

1.3%

5.9%

(0.2%)

10.7%

11.4%

6.6%

(32.8%)

5.7%

7.4%

Structural

0.3%

9.7%

(4.3%)

(16.5%)

(25.2%)

(18.8%)

(14.0%)

2.8%

(40.3%)

(2.5%)

(15.1%)

Total

1.4%

11.9%

(1.2%)

(4.3%)

(11.8%)

(3.5%)

0.1%

5.0%

(36.6%)

2.2%

(2.8%)

2011

Unit Volume Change

2010

16

Gross Margin by Quarter

Gross Margin $ in millions

2009

2010

2011

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Specialty

(1)

$ 33.5

$ 44.3

$ 37.9

$ 32.5

$ 32.4

$ 45.6

$ 44.8

$ 35.8

$ 132.9

$ 148.2

$ 158.6

Structural

(1)

21.7

24.2

15.9

14.7

17.3

16.6

18.7

15.4

73.1

76.5

68.0

Other

(2)

(2.9)

(4.4)

(3.9)

(2.9)

(3.4)

(4.6)

(5.2)

(3.2)

(12.8)

(14.0)

(16.4)

Total

$ 52.3

$ 64.1

$ 49.9

$ 44.3

$ 46.3

$ 57.6

$ 58.3

$ 48.0

$ 193.2

$ 210.7

$ 210.2

Gross Margin %'s

Specialty

(1)

14.4%

15.5%

14.4%

14.7%

13.8%

14.4%

15.1%

14.9%

14.0%

14.7%

14.6%

Structural

(1)

10.7%

9.1%

7.4%

9.5%

10.7%

8.6%

10.0%

9.3%

9.9%

9.1%

9.6%

Other

(2)

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Total

12.1%

11.9%

10.7%

12.1%

11.8%

11.5%

12.3%

12.3%

11.7%

11.7%

12.0%

(1)

Includes product rebates.

(2)

Includes competitive discounts, cash discounts, Canadian conversion, and accruals.

2010

2011

17

Gross Margin % Analysis

4Q10

1Q11

2Q11

3Q11

4Q11

4Q11

Variance

from Year

Ago Qtr

Structural Products

(1)

Warehouse

12.0%

13.7%

11.0%

12.6%

11.5%

(0.5%)

Direct

4.1%

3.3%

3.6%

3.7%

3.6%

(0.5%)

Reload

5.5%

8.3%

3.5%

5.1%

4.8%

(0.7%)

Total

9.5%

10.7%

8.6%

10.0%

9.3%

(0.2%)

Specialty Products

(1)

Warehouse

16.5%

16.0%

17.1%

17.8%

16.7%

0.2%

Direct

9.8%

8.2%

8.6%

8.8%

10.3%

0.5%

Reload

12.5%

11.9%

12.2%

12.2%

11.2%

(1.3%)

Total

14.7%

13.8%

14.4%

15.1%

14.9%

0.2%

Total

(1) (2)

12.1%

11.8%

11.5%

12.3%

12.3%

0.2%

(1)

   Includes product rebates.

(2)  

Includes competitive discounts, cash discounts, Canadian conversion, and accruals.

18

Operating Expense by Quarter

Operating Expense

(1)

$ in millions

2009

2010

2011

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Payroll & related

$38.2

$38.8

$38.2

$36.6

$37.8

$37.9

$38.1

$35.5

$147.9

$151.8

$149.3

General maintenance

5.1

5.3

5.2

5.0

5.1

5.6

5.3

5.4

19.3

20.6

21.4

Depreciation and amortization

3.7

3.4

3.1

3.1

2.9

2.6

2.6

2.4

17.0

13.3

10.5

Fuel

3.1

3.4

3.2

3.1

3.4

4.5

4.2

3.7

9.4

12.8

15.8

Gain on sale of assets

(0.2)

0.2

0.0

0.1

(7.3)

(0.3)

(1.2)

(4.4)

(11.1)

0.1

(13.2)

Other

(2)

10.4

9.4

7.5

8.6

9.5

9.1

8.1

7.9

26.9

35.9

34.6

Total

$60.3

$60.5

$57.2

$56.5

$51.4

$59.4

$57.1

$50.5

$209.4

$234.5

$218.4

(1)

Immaterial rounding adjustments and differences may exist between appendix slides, presentation slides, press releases and previously issued presentations.

(2)

2Q '09 includes a $17.4 million gain on the early cancellation of the Master Supply Agreement with Georgia-Pacific Corporation.

2010

2011

19

Structural Products Price Trend

Source:

Data

from

Random

Lengths

Publications,

Inc.,

updated

as

of

December

30,

2011

Reconciliation of GAAP to Non-GAAP

BlueLinx Holdings Inc.

Unaudited Reconciliation of GAAP Debt to Non-GAAP Net Debt

  in millions

January 1,

2011

December 31,

2011

Revolving Credit Facilities

$ 97.2

$ 94.5

Mortgage

285.7

243.2

TOTAL DEBT

$ 382.9

$ 337.7

Less:Cash and Cash Equivalents

(14.3)

(4.9)

   Mortgage LCR Trap

(30.6)

(10.0)

Net Debt

$ 338.0

$ 322.8

Excess Availability

$ 103.4

$ 118.3

Minimum Required

$ 40.0

$ 31.1

20

Reconciliation of GAAP to Non-GAAP

www.BlueLinxco.com