Ladies and gentlemen, thank you for standing by and welcome to the BlueLinx Fourth Quarter 2019 Investor Relations Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mary Moll, Director of Investor Relations. Thank you. Please go ahead, madam.

Thank you, Nora, and good morning, everyone. We appreciate you joining us for the BlueLinx 2019 fourth quarter earnings conference call. The earnings release is posted in the Investors section of our Web site at www.bluelinxco.com. We will also be referring to a supplementary presentation as we go through the call. The presentation is available on our Web site as well. Joining us on the call today are Mitch Lewis, Chief Executive Officer; and Susan O’Farrell, Chief Financial Officer. Before we get started, I’d like to remind you that this presentation includes forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from those reflected in the statements. Those risks and uncertainties are described in our earnings release and discussed in our filings with the SEC. Today's presentation also includes references to non-GAAP financial measures. These non-GAAP measures are described and reconciled to their GAAP counterparts in the presentation materials, the earnings release and in the Investors section of our Web site. With that, I'll turn the call over to Mitch.

Thanks, Mary, and good morning. Before we dive into our fourth quarter and 2019 performance, I’d like to discuss the news we announced yesterday that Susan O’Farrell will be retiring from BlueLinx in early April. As many of you know, Susan joined BlueLinx a few months after I began with the company in 2014 and over the last five years she’s been a tireless advocate for BlueLinx. I speak on behalf of the entire BlueLinx family when I thank Susan for her many contributions to our organization and wish her well in what I know will be a successful next chapter. I'm also pleased to announce that Kelly Janzen will be joining BlueLinx on April 13 as our CFO upon Susan's departure. Kelly has strong technical and process expertise through a varied career, including more than a decade at General Electric in roles with increasing responsibility. She has been the Chief Accounting Officer for the last six years for both Baker Hughes and more recently WestRock, an $18 billion corrugated and consumer packaging company. We are pleased to have Kelly on our team and are confident that her knowledge and expertise will help us drive process improvement and innovation as we continue to garner administrative and operational efficiencies within our organization. 2019 was a transitional year for BlueLinx as it marked our first full year of operations following our 2018 acquisition of Cedar Creek. The year was a period of dramatic change for our organization in which we consolidated facilities in three additional markets for a total of 13 facility consolidations. Converted 25 facilities to our ERP platform which is complete with the exception of two fabrication facilities, entered into several sale leasebacks which coupled with our 2020 sale leasebacks have reduced our term loan by over $100 million, realigned…

Thank you, Susan. So looking ahead for the remainder of the year, we are well positioned financially with a significantly delevered balance sheet, solid liquidity and a plan for top line growth. We were pleased to see a solid start to the year in the first two months which provided optimism on how this start would play out throughout the year and translate into product demand as we enter the busy spring and summer seasons. As I mentioned, the coronavirus has certainly made the next several weeks uncertain and yet we are confident in the foundation we are creating to provide a strong future for BlueLinx. We will continue to work on areas that we can control. We have made great strides in recapturing market share in overlap markets and we have made significant progress in initiatives that will help us grow further organically. We have turned the organization's complete focus on profitably growing the business which is our most important priority in 2020. Our plan is to take advantage of our position as a leader in the wholesale distribution industry, while ensuring that we always provide both great value and great service to our customers and our suppliers. Finally, I want to thank the BlueLinx team. It is difficult to clearly articulate how challenging the integration in 2019 was to our daily routine. Our associates have weathered the storm and made fundamental changes to our business that will serve us well in the months and years ahead. Truly, truly great work; thank you. And now, Nora, we’d like to open it up for any questions we may have.

[Operator Instructions]. Your first question comes from the line of Alex Rygiel of B. Riley FBR. Your line is open, sir.

Thank you. Good morning, Mitch and Susan. Congratulations.

Thank you. Susan O’Farrell: Thank you, Alex.

A couple of random questions here. First, Mitch, thanks for the update on the volume growth year-to-date of 14%, that’s fantastic. Could you comment on sort of the aggregate impact of lumber and panel prices year-to-date on the business so far?

Yes. So obviously we’ve seen a bump in both lumber and panel during the first part of the year. And when you see some escalation in commodity wood prices, it tends to have a short-term impact on demand. So it’s very difficult for us to assess how much was the actual market growing and how much is some demand being created by incremental increases in commodity prices. But we certainly think that has had some effect.

And would you characterize that sort of in the single digits or is that also in the double digits as well year-over-year?

As far as the demand created by the increase in commodity wood-based prices, it would be, Alex, just really challenging for us to kind of break that out by year [ph] you requested that percentage.

Okay. And SG&A seemed a little high in the fourth quarter. It could be my modeling. But if you could comment on SG&A and how you think about SG&A in 2020 relative to 2019, that would be helpful? Susan O’Farrell: Alex, certainly we came in a little bit higher than we thought, although again we’re pleased that we were down almost $5 million. So we said we’re going to take action, and we did, but we were very thoughtful of those actions. As you can see, our focus has been on turning the ship on sales and you’ve seen the positive impacts on volumes that we lifted up for you. And we think there’s a correlation there. We’re making the right investments in the right places, but still being thoughtful about taking cost out. We know there’s still an opportunity to lean out this business and we still see those opportunities ahead of us. But first thing on the plate has to be taking care of customers. And if that means incremental delivery expenses, like we have spent, we think it’s a wise investment. Over the course of time though we still believe there’s opportunity to lean out. And if we look back at our previous run rates of delivery costs and SG&A costs, we know we can get lower. But right now when you think about it, just always remember that of course it’s a numerator and a denominator and we’re working on lowering our costs while we make sure we take care of the sales. So we look to see improvements in the coming year.

And lastly, as it relates to the 13 remaining properties, can you help us appreciate sort of the timeline of when those properties could be liquidated?

So we’re actively pursuing the three dark properties that we’ve talked about in the past. So we’re not in a position to be able to comment on where we are there, but we’re certainly actively looking at that. And then we’re being thoughtful and selective as it relates to potential sale leaseback opportunities for the remaining properties as we look at those locations and the specific properties in relation to the long-term strategic value of the locations, whether those are the right properties. So I’d say very quickly on dark properties and certainly assessing a few of the properties that we might do sale leasebacks with.

Very helpful. Thank you.

Okay. Thank you. Susan O’Farrell: Thank you.

There are no further questions. I’d like to turn the call back to the presenters.

Okay. Thank you very much. We certainly appreciate your continued interest and support of BlueLinx and we look forward to updating you on our continued progress during our May call. Thank you.

Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.