Good morning. My name is Leportia and I will be your conference operator today. At this time, I would like to welcome everyone to the BlueLinx’s Second Quarter Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. (Operator Instructions) As a reminder, ladies and gentlemen, this conference is being recorded today, July 31, 2013. Thank you. I would now like to introduce Maryon Davis with BlueLinx. Ms. Davis, you may begin your conference.

Thank you, Leportia, and welcome everyone to the BlueLinx second quarter 2013 conference call. Our speakers this morning are Howard Cohen, Executive Chairman; and Doug Goforth, Chief Financial Officer. Our press release was issued earlier this morning. A copy of the release is available in the Investor Relations section of the company’s website at bluelinxco.com. Before starting the call, I need to refer you to our Safe Harbor statement. I would like to remind everyone that on today’s call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including all statements concerning future or unexpected events or results. Actual results could differ materially from those projected in the company’s forward-looking statements due to known or unknown risks and uncertainties. A discussion of factors that may affect future results is provided in the company’s filings with the Securities and Exchange Commission. BlueLinx undertakes no obligation to publicly update or revise any forward-looking statements contained in these presentations based on new information or otherwise, except as required by law. With that requirement completed, I’d like to remind our listeners that we have posted slides on our website. We will be referring to these slides during this call and we encourage you to view them during our remarks. Additionally, the slide package contains an appendix of supplementary tables available for your review. We will begin the call this morning with opening remarks from Howard. Then Doug will present an in-depth review of the financial results. Lastly, Howard will comment on the current results and add a final perspective before opening the call to your questions. Now, let me turn the call over to our Executive Chairman, Howard Cohen.

Thank you, Maryon, and good morning to everyone, and thank you for joining us this morning. Before beginning our remarks regarding the second quarter results, I’d like to take a moment to address my appointment in mid-May as BlueLinx’s Executive Chairman. As you know, George Judd resigned his position as Chief Executive Officer on May 16, 2013. At the request of the Board of Directors, I will service the Executive Chairman until a permanent Chief Executive is selected. A Search Committee composed of members of the Board of Directors is actively engaged in identifying a permanent replacement. The leader we are searching for must be a seasoned executive with strong sales and operational experience. In the meantime, we are fortunate to have a strong executive and operational management team at BlueLinx, whose focus remains on pursuing our strategic and operational initiatives and achieving our plan for returning BlueLinx to profitability. On June 25, 2013, the company issued a press announcement announcing a strategic restructuring. This plan will enable the company to operate more efficiently in support of our growth initiatives in key markets. The restructuring primarily included the elimination of certain headquarters resources. This headquarters restructuring will help reposition BlueLinx by utilizing a portion of the approximately $9 million to $10 million in annualized cost savings from these initiatives to fuel our growth strategy in key markets. As part of this strategy, we also plan to sell or close five of our distribution centers in the West. Upon completion, the company expects to generate approximately $25 million to $27 million in operating cash; a portion of which will be reinvested in our markets with the balance used to pay down long-term debt. Let me take a moment to clarify the actions we have taken this quarter and discuss in more…

Thank you, Howard. This morning we reported a net loss of $22.3 million or $0.27 per diluted share for the fiscal second quarter of 2013, compared with a net loss of $3.7 million or $0.06 per diluted share for the fiscal second quarter of 2012. As Howard just mentioned and is noted in our press release this morning, our second quarter results were impacted by several previously announced factors; a pre-tax restructuring charge of $8.3 million or $0.10 per diluted share related to the company’s change in executive leadership and strategic restructuring activities, lower gross margins related to a significant decline in prices for structural wood products throughout the fiscal second quarter, including a pre-tax lower cost or market reserve charge of $3.8 million or $0.05 per diluted share. For those following along with the conference call slides posted in the Investor Relations section of the company’s website, I’ll begin the detailed review of the results with Slide 7. Overall, sales for the second quarter ended June 29, totaled $604.6 million, up 16.9% or $87.6 million from the second quarter of 2012. This reflects a 28.2% increase in structural product sales and an 8.3% increase in specialty product sales from the year ago period. Second quarter sales mix was favorably impacted by increased structural product pricing compared to the year ago period with structural sales accounting for 45% and specialty sales accounting for 55% of total revenue during the quarter. Overall unit volume rose 9.5% compared to the same period a year ago, as specialty unit volume increased 7.4% and structural unit volume increased 12.6%, compared to the same period last year. BlueLinx generated approximately $55 million in gross profit for the quarter, down 12.7% from approximately $63 million in the year ago period. The current quarter gross profit included…

Thank you, Doug. The second quarter operating environment was characterized by continued improvement in the residential construction markets and challenging structural wood market. Against the backdrop of improving demand in the residential construction markets, BlueLinx’s second quarter revenue grew 16.9% on a total until volume growth of 9.5%, both structural and specialty product groups showed year-over-year revenue and unit improvement. While structural wood prices increased compared to a year ago quarter and helped fuel the company’s second quarter top line revenue growth, prices experienced a steady downward trajectory during the three months ended June 29, 2013. The company entered the second quarter with approximately 38 days or 20% to 25% increase in structural wood inventory, compared to the typical level of 30 days, in anticipation of a significant increase in demand that did not materialize. Average prices for benchmarked structural wood products declined approximately 31% from the end of the first quarter to the end of the second quarter. This dramatic drop in structural wood markets during the quarter had a negative impact on our structural and overall gross margins, and as Doug indicated, at 4%, the structural margin was less than half of our normal levels. As we entered the third quarter of 2013, structural wood based product prices have begun to stabilize and we expect a corresponding improvement in gross margin rates for the third quarter. While our second quarter results were negatively impacted by restructuring charges, we consider charges to be special in nature. As previously announced, we expect the company’s third quarter GAAP financial results to include a range of $1.5 million to $2.5 million of non-cash restructuring charges as we complete the sale foreclosure of our five distribution centers in the West. The company anticipates that the second and third quarter restructuring activities will have…

(Operator Instructions) Your first question is from the line of David Williams. David Williams – Williams Financial: Thanks for taking my question.

Hey, David. Good morning. David Williams – Williams Financial: Good morning. Well, I’ve got a couple of things. But first, I wanted to ask you about the distribution centers. So we’re closing five of those in the West and that’s a fairly small geographic presence for you guys today. But as we start thinking about the mix of products that’s sold in that region and just that geography, what should we expect maybe from the top line perspective, and then also maybe from a mix of products that will be eliminated from the elimination of those distribution centers?

Well, let’s start with the five locations that we closed. We’ve really been unprofitable on those locations for numerous years and with all the efforts that we’ve made, they continue to be unprofitable and they were going to be unprofitable in our forecast in the future. The product mix that was there was about the same ratios as everywhere else in the United States. So we don’t expect any mix change, in fact, mix may improve in the future as we focus more on specialty products in the markets that we serve. Does that answer your question? David Williams – Williams Financial: It does. Thank you. Thanks for that. Any thoughts on maybe the top line impact here?

Well, our revenue…

Those five facilities, excuse me, are on a trailing 12-month basis, we’re probably around $120 million for the all five facilities. They were actually at a higher run rate this year, because a couple of them participated fairly heavily in the first quarter run up and structural, but let’s say about $120 million. David Williams – Williams Financial: Okay, great. And any thoughts on maybe the drag that you might have experienced from those being underperforming on OpEx line?

Net, net, we’ll share more details on that on the third quarter. Once we’ve completed the closure and all that, we’ll provide some pro forma information et cetera. David Williams – Williams Financial: Okay.

We’re planning to say, as Howard mentioned, they were unprofitable, so you can kind of get pretty close on the math. David Williams – Williams Financial: Okay, great. Thanks. And then, I wanted to talk a little bit on the gross margin side here and obviously, the impacts from the lumber movements are (inaudible) they were impactful, but thinking about the inventory build that you guys had before the summer selling season, what kind of impact do you think maybe if we are thinking about a normalized quarter, if you can even call it normalized quarter. But I guess, I’m just trying to get a sense of how much of the gross margin impact was because of that inventory builds and how much of it was just simply because of pricing and that would have otherwise been in play regardless of that inventory build?

Let me answer part of that question, and then I’ll turn it over to Doug. I think we lost our focus in the second quarter on specialty products and because we lost our focus, we underperformed then what we would have thought would have been a normal reasonable trend on specialty price going into the second quarter. As I mentioned in my remarks, I mean, we build inventory at a higher rate than we should have and thus we, as we sold through that product, we ended up taking it at lower margins. As we go into the third quarter because of our SKU rationalization program as well as our focus on inventory, you’ll see a fairly dramatic drop to the appropriate levels necessary to support the fourth quarter selling cycle. So I think you’re going to see a much better look as you look backwards at the end of the third quarter.

In terms of the margin impact, we were good 5% below what I would consider to be a normal margin performance 4% versus 9% and that’s on 45% of our revenue, so materially impactful on the overall company’s gross margin. David Williams – Williams Financial: Okay, thanks. And one last one if I could, if we think about the specialty growing to maybe 60% of sales, is there any thought that maybe we can flow the structural side to help boost the more profitable specialty side or is that the kind of a give and take there that you need the structural to get the specialty.

Well, that’s a little bit like I’m also chewing of a supermarket chain ever since. You got to have the milk and you got to have the bread and bananas for people to come into the grocery store. It’s a little bit the same in the distribution business. You’ve got to have the structural product for people to give us the phone calls. So we just have to get our mix properly in place. Part of our decision making is to provide our local managers with more authority to bring products that are more appropriate for the marketplace especially on the specialty side. And so I think that you’ll see, as we go forward, a proper ratio between specialty and structural, and I don’t think it’s unreasonable that we move towards that 60% level on the specialty side. David Williams – Williams Financial: All right. And do you have maybe a target of a blended rate for gross margin going forward. I mean, what is that – what would that ultimate goal be if we look at it 2014 and what would make you, I guess, pleased with the progress?

Our immediate goal is to get back to what you saw for the last couple of years was, when we were at 12%, but we’re not going to be satisfied with that.

I would agree with that. We are both the same time that our historical trends have been around the 12% level. As you move more towards specialty products, which as you heard in the, as well as in the 10-K as well as in the presentation, we’re getting 13 plus margins. There is no reason why we can’t move to higher number in the future and that should bring up the overall margin for the company. David Williams – Williams Financial: Perfect. Thanks guys for the color. I certainly appreciate it and good luck on the quarter.

Thanks, David.

Your next question is from the line of Mark Kaufman. Mark Kaufman – Little Oak Asset Management: Hi, thanks for the call. Actually, thanks for the opportunity to get on the call. In the light of the, well, the events of the past five years, is the industry a little bit hollowed out as far as management talent and do you think it’s going to be difficult to find a permanent CEO?

Well, I would tell you that, hi, Mark, this is Howard. I have been actively involved in the recruiting process for the new CEO and you might be surprised, but even though the industry has had some significant downturn in the last five or six years, the talent that we are looking at is excellent. It’s not necessarily that it has to come from the building products industry, but we’re looking for a CEO, a current CEO or one that has just sold the company or what have you, but someone that’s managed a large business understands operations, understands sales, has been in a public or a private company at a fairly significant operation and understands how to grow a business, and we’ve been very fortunate that we’ve been able to find some very, very good talent. And it’s my expectation that you’ll be very pleased with the type of individual with their experience level and their maturity to help lead this company toward continued profitability in the future. Mark Kaufman – Little Oak Asset Management: Okay, if I may have a follow-on question just a little shifting gears here, thinking about going into the second quarter with too much inventory and thinking about your other comment that the worst quarter you had was fourth quarter 2008, where you had declining prices and declining demand, was this is a situation where you had increasing demand, declining prices, and was the declining prices the result of not just you, but other industry participants basically over ordering, if you can comment on the outflow of industry parameters there in the quarter?

I’ll let Doug also answer this, but I think we got too enthusiastic in the second quarter as far as where the pricing would go on the structural side and as mentioned, we probably ordered too much product and then we had to wash through it and that obviously hurt our margins. And on the over inventory side of specialty, that’s in truth more lack of focus than it is that we had too much, we just didn’t sell what we should have in the second quarter. I think you’ll see that we’re correcting that problem, and as you go forward, we’ll sell-through our inventory appropriately for the inventory that we have on hand. Mark Kaufman – Little Oak Asset Management: I remember in the first quarter, there were some problems about weather, did you see any follow-on from that in the second quarter?

Well, the first quarter what we commented on was you had more of a normal – there was winter in the first quarter of 2013 versus 2012, and we definitely have seen a pickup and had a pickup in the second quarter. Our structural volumes were up a little over 12%. So although, they were not up quite what our expectations were and I think there is probably others in the industry that say the same thing, so not quite up. We were long on our inventory position ending the first quarter this year (inaudible) on commodity wood products. One of the things that we talked about in the first quarter is that we did intend to be more aggressive in sales. We felt we exceeded some market share particularly on the structural wood side of the business and we were going to be more aggressive and we stock-invested accordingly for that, and unfortunately, we did that at the wrong time in the market.

And there is no excuse for having more inventory than we needed, but obviously the whole industry kind of over anticipated the pricing going forward in the second quarter. So to the degree that we had too much inventory and then the pricing dropped as much as it did, 31%, we just had to wash as I mentioned before, we had to wash that inventory. We are in a much better position today and as we go forward and are keeping our eye much closer on the ordering of product to ensure that we have the appropriate inventory at the appropriate locations for the sales number, so that I think you’ll see, as we go forward, that we are in a better position. Mark Kaufman – Little Oak Asset Management: Okay. If I may one more, assuming that both structural volumes were certainly up and that new houses are getting completed out there, do you anticipate just through the normal flow through structural coming first and then specialty that you are seeing somewhat continued pick up in the specialty business here in the third quarter and also if you could comment at all about what you are seeing from lows in Home Depot on the remodeling market?

Well, there was two parts to your question, on the pick up of specialty, yes, we are seeing an improvement in our sales demand and obviously we are seeing an improvement on margins what we saw in the first half of this year, especially the second quarter. As it relates to lows in Home Depot, at least from our perspective, we are not seeing that significant increase in the remodel market as it relates to our sales numbers. Mark Kaufman – Little Oak Asset Management: Okay. Thanks very much.

And there are no further questions at this time. I would now turn the call back over to Mr. Cohen for closing remarks.

Well, again, I like to thank everyone for attending the meeting and thank you for your questions, and we’ll talk to you again in the second quarter. Thank you, again.

This concludes today’s conference call. You may now disconnect.