Good morning. My name is Amy, and I will be your conference operator today. At this time, I would like to welcome everyone to the BlueLinx Holdings’ 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, Thursday, August 7th. Thank you. I would now like to introduce Caroline Lowden, Director of Finance with BlueLinx. Ms. Laurence, you may begin your conference.

Thank you, Amy and good morning everyone. Thank you for joining us for the BlueLinx second quarter 2014 earnings conference call. This call is being webcast on the company's website at bluelinxco.com. The earnings release and presentation slides for this call can be found in the Investor Relations section of the company's website. This presentation includes statements about our expectations for future operational and financial performance as well as our credit agreement, liquidity position and capital structure that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of risks, uncertainties and assumptions that could cause our actual results to differ materially from those provided, including, but not limited to risks and uncertainties with respect to economic, governmental and technological factors outside of our control and changes in the supply and/or demand for products we distribute particularly as a result of conditions in the residential housing market. These and other factors that could cause actual results to differ materially from forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this presentation. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst's expectations or estimates that might be derived from this presentation. This presentation includes references to adjusted net income and adjusted EBITDA, which are non-GAAP financial measures within the meaning of the Securities and Exchange Commission's Regulation G. Reconciliations of GAAP net income to adjusted net income and GAAP net income to adjusted EBITDA are included as an appendix and are posted on our website at bluelinxco.com. Our speakers this morning are Mitch Lewis, President and Chief Executive Officer; and Susan O'Farrell, Chief Financial Officer. Mitch will begin the call this morning with comments on the current results and a review of the business, then Susan will review the financial statements before opening the call to your questions. With that, I'll turn it over to Mitch.

Thanks Caroline. Good morning. I wanted to walk you through a few of our recent activities as well as our performance in the second quarter before turning it over to Susan to dive into the financial highlights. The second quarter was a solid quarter for BlueLinx with adjusted EBITDA of $10.6 million; this is an improvement of $14.1 million over last year. And that’s our best quarter of adjusted EBITDA in the last five years. We’re also pleased to announce net income for the quarter of $3.2 million. These results continue the momentum we experienced in the first quarter and are a testament to the efforts of our associates who are executing our key initiatives as we work closely with our customers to drive our improving performance. We believe our second quarter results bode well for the future, particularly when you consider that we did not have significant overall market improvement propelling our results. As we’ve discussed before, while multi-unit housing starts drive a proportion of our business, we’re much more reliant on single-family housing starts. In fact, we recently reanalyzed the correlation between single family housing starts and our revenue over the last nine years and found them to be highly correlated, approximately 95%. While there certainly has not been robust growth in single family housing start so far in 2014, the first half of the year was up by about 1.2%. Reaction has come out of the blocks in the third quarter relatively strong. Our customer base remains optimistic that there will be modest growth over the second half of 2014 and we have not seen any indicative trends that conflict with this view. In the second quarter, single family housing starts in the United States were a little better and up by about 3.5% from 2013 levels…

Thank you Mitch and good morning everyone. It's a pleasure to speak to you about our business and our second quarter results. For those of you following along I will begin with slide 10. Revenues for fiscal 2014 second quarter decreased 12.1% to 531.5 million from 604.6 million in fiscal 2013 second quarter. On a same center basis, 2014 second quarter revenue decreased $39.4 million or 6.9% compared to fiscal quarter of 2013. The sales decline was mainly due to an impact on structural unit volumes as well as certain product price declines relative to year ago levels that Mitch walked you through. Gross profit for the fiscal second quarter totaled $62 million, an increase of $6.8 million or 12.4% from $55.2 million in the year ago period. Gross profit on a same center basis for 2014 fiscal second quarter increased $9.9 million or 18.9% compared to the year ago period. The gross margin rate for the 2014 fiscal second quarter improved to 11.7% compared to 9.1% for the same period a year ago. Overall 2014 fiscal second quarter gross margins were favorably impacted by the improved structural margins and the improved sales mix to the relatively higher margin specialty products. Total operating expenses were $52.3 million compared to $70.7 million for the same period a year ago. We’re delivering on our restructuring expense reductions initiated last year and are tracking slightly ahead of our $13 million annualized cost reduction plan. Overall, operating expenses were down 26.1% versus the same period last year driven largely by payroll and payroll related costs as well as travel entertainment and supply reductions. These were difficult changes for the organization to make last year but it helped us become more efficient and well prepared for the future. On the bottom half of slide 10,…

(Operator Instructions). Your first question comes from Tristan Thomas. Tristan Thomas - Sidoti & Company: Good morning. How are you?

Good morning. Tristan Thomas - Sidoti & Company: Couple of questions. First, regarding what really your outlook for the second half of the year in single family housing. I know based on the Wells Fargo and HB index, really jumped 53 in July. I mean, are you saying this confidence is going to actually translate to starts for the first time this year?

Yes, generally relying on what we’re hearing from the customers, I think I alluded to this in my talk is that we feel that there will be modest improvement on the back half of the year. I’ve had some discussions with some senior executives of supplier as well as customers and even some homebuilders. And I would say generally, it feels like the sentiment is a modest improvement in the back half of the year. I’m certainly not as optimistic as a lot of the analysts were expecting earlier in the year, but single, mid-single-digit kind of growth is I think what I would say generally what people are thinking about right now. Tristan Thomas - Sidoti & Company: Okay, got you. And then, could you comment on the mix between structural and specialty? I mean is this where we should, a little more what we should expect moving forward as you are not really chasing volume for the sake of chasing volume?

The answer to that is, I mean is I would say closed. I mean if you think about the percentages, they’re within generally 5% to 6% from a mix standpoint. We are not strategically backing away from our structural products or trying to grow the business profitably everywhere, more we're touching our customer base. So what's happened, I think as you look at the mix short-term is a function of the disparity from what happened last year. So, we’re strategically going to get after growing profitably both our strategic, our structural business and our specialty business. Tristan Thomas - Sidoti & Company: Okay. Just kind of following question to that. Can you maybe provide a little insight on how some of your own private label products are doing or how they did in the quarter?

Yes, they continue to do well and are certainly profitable for the business and remain a strategy for the business to grow. So, I would say they continue to improve and it’s something that we will continue to emphasize going forward. Tristan Thomas - Sidoti & Company: Okay. Any new products to release there, anything planned?

Nothing material that I would say; I mean obviously with all the products that we have we’re releasing new products all the time. But there is no new huge product code or category released that has taken place in the last quarter or so. Tristan Thomas - Sidoti & Company: Okay. Jumping directions a little bit, you mentioned optimizing your fleet. Could you maybe provide a little color on that? Is that something along the lines of some type of mobile research management program or something else?

Yes. So, one of the things that we did, and I am not sure that we talked about this in detail before, but in the first quarter we changed the operational organization to ensure that we had good alignment throughout the organization relating to A, bringing in experts for operational efficiency and making sure that we had good dialog and enhancements throughout the organization. So, we now have completed that thing. So part of what we are doing is having a segregated look at efficiency, utilizing some of the investments that we’ve made in software for example to enhance that. So, we have a team, right now, I have to say we are just putting together with the full team now but we are already starting to see improvement to that. So it’s a team based approach to look at basically the customer base that we have, the efficiency of the routes that we have and we continue to work to drive down those costs. Tristan Thomas - Sidoti & Company: Okay. And final question because you didn't mention IT, maybe an update on some of the initiatives, some of the online kind of sales programs you have set up?

Sure, Tristan this is Susan. And so as we look at it in our IT space, we've got some major initiatives going on, certainly are investing in our phone systems and upgrades. As you might imagine that’s the lifeblood of our business to make sure we are in constant connection with our customers. And we are making solid progress in that with our deadlines still on track for the end of this year, kind of in full redundancy in our phone system. So, right now we are tracking well of that. In addition, we've got our mobile order sales application that we're working to provide tools to our sales folks, so as they are with customers they have all the information they need at their fingertips. And we're in pilot mode in that right now getting some really good preliminary feedback, but we're going to till the end of the months to see what we are in the that and see how we tweak that or fine that, before we continue to roll it out. So again preliminary feedback is a very favorable on that. So those are two things we are very excited about. Tristan Thomas - Sidoti & Company: Okay, great. Good for me right now. Thanks.

Your next question comes from Jim Fowler.

Good morning Jim.

Good morning. Thank you for taking the question. I apologize I am going between a couple of calls. Could you just and I know you made these comments, but I'm just wondering if you might repeat your activities relative to debt refinancing and real estate and non-real estate. Thank you very much.

Sure. So basically what I said is that we would have been very active looking at opportunities. And one of the obvious areas to pursue was the excess fair market value we believe we have on our real estate portfolio. So, over the last months, we were looking at that and we’ve got to the point when we looked at what that value was and had an opportunity we believe to pull the trigger on that and thought was that the yield maintenance or prepayment penalty for doing that today just made no sense. So, that’s still out there either to utilize with traditional kind of mortgage-based structure or to utilize security perhaps with some other kind of capital financing. What we have and I think we announced today and certainly announcing in our discussions today that we have discussions with our existing FILO $20 million tranche group and our confident and are looking forward to cheering the details with you in the very near future about the extension of that $20 million through June of 2015. So, we’ll continue to look at opportunities I mean we, as you know we feel pretty good about the way that we’re managing our liquidity. We’re certainly looking forward and projecting the business out and we’re comfortable, we’re comfortable with the management team where we are and we know we have a lot of bullets in the gun to able to pull the trigger when we need to.

Got it. And just one clarification question. I believe I took a note that you’re -- the prepayment penalty is currently estimated around $17 million, that’s zero at the end of 2015, correct?

Correct. I would answer that a little differently and I would say that it could be as much as $17 million. So kind of the maximum that it could be $17 million and when we looked at the transaction well, I said that was a potential we decided just didn’t make sense. So, to the extent that goes down, obviously we might rethink about when and how we want to refinance the real estate that's approach that we ultimately take.

And then the slide 13 comment on the appraised value of the properties, approximately $322 million that's excluding the Portland property, correct?

Yeah, correct. We just wanted to do a apples to apples comparison for you as it lowers the outstanding mortgage balance so we just flowed that through for you.

Great. Thank you both very much. I appreciate it.

Okay.

There are no further questions at this time. Presenters do you have any closing remarks?

We just want to thank you for continue interest and support in the company. And we look forward to talking to you in a few months with some more positive news. Have a great day. Thank you.