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

Exhibit 99.1

4300 Wildwood Parkway
Atlanta, GA 30339
1-888-502-BLUE
www.BlueLinxCo.com

BlueLinx Contacts:
David Morris, CFO & Treasurer	Jim Storey, Investor Relations
BlueLinx Holdings Inc.	BlueLinx Holdings Inc.
(770) 221-2668	(770) 612-7169

FOR IMMEDIATE RELEASE

BLUELINX ANNOUNCES FOURTH-QUARTER RESULTS

ATLANTA – February 15, 2006 – BlueLinx Holdings Inc. (NYSE: BXC), a leading distributor of building products in North America, today reported financial results for the fourth quarter and full year ended December 31, 2005.

Revenues for the fourth quarter were $1.33 billion, up 10.1% from $1.21 billion for the fourth quarter of 2004. The increase reflects 5% growth in unit sales volume, driven in large part by a 12.7% increase in specialty product unit volume, as well as favorable year-over-year pricing. Net income for the fourth quarter was $14.5 million, or $0.48 per diluted share, compared with a net loss of $2.7 million, or $0.09 per diluted share, for the prior-year period.

For purposes of comparison, the 2004 fourth-quarter and full-year statements of operations are presented on a pro forma basis, as if BlueLinx had been a stand-alone, publicly traded entity since December 29, 2002.

Gross profit for the fourth quarter was $140.4 million, compared with $101.4 million in the prior-year period. Gross margin was 10.6%, compared with 8.4% a year ago, reflecting growth in higher-margin specialty products and improved structural product margins. Total operating expenses of $105.7 million for the fourth quarter increased $9.1 million from the same period a year ago, primarily reflecting ongoing operating expenses associated with the company’s Lane Stanton Vance (LSV) division, the specialty hardwoods distributor that was acquired in July 2005, and increased compensation expenses. Operating income for the quarter was $34.7 million, compared with $4.8 million for the fourth quarter last year.

For the full year ended December 31, 2005, BlueLinx sales totaled $5.62 billion, up 1.1% from $5.56 billion the prior year. Gross profit was $512.4 million compared with $563.8 million for 2004, translating to gross margins of 9.1% and 10.1%, respectively. Lower gross profit for 2005 primarily reflects a decline in structural product margins. Total operating expenses of $396.8 million for the full year declined by $3.5 million. Net income totaled $44.6 million, or $1.46 per diluted share, compared with $74.6 million, or $2.47 per diluted share, in 2004.

“BlueLinx demonstrated solid execution on our primary strategic objectives during the fourth quarter,” said Stephen Macadam, chief executive officer. “We gained traction in our specialty products business, evidenced by a 12.7% year-over-year increase in specialty unit volume. This increase includes a 3.1 percentage point

contribution from LSV, the acquisition of which reflects our strategy to supplement organic growth with targeted acquisitions. We also effectively managed structural inventories in a volatile pricing environment that was characterized by steeply falling structural prices in the first half of the quarter. Additionally, we continued to demonstrate the commitment to add the people, systems and processes necessary to profitably grow our business. Our strong performance also benefited from better-than-expected end-use demand in new home construction, manufactured housing and industrial markets, which we believe was partly a result of unseasonably mild winter weather in many parts of the country.

“Looking forward, we believe BlueLinx is well positioned for continued execution of our strategic growth plan as a leader in the building products distribution marketplace,” Macadam said. “We anticipate market conditions will remain challenging, with 2006 housing starts expected to decline approximately 10% from 2005 levels, offset in part by a rebound in manufactured housing and continued growth in industrial markets. As a result, we expect an overall decline in end-use demand of approximately 1% to 2% for 2006, with a moderate decline in structural prices, based on decreased demand and increased supply of some products. We will seek to offset the impact of these anticipated market conditions by gaining market share, continuing to improve our product mix with higher margin, less price sensitive specialty products, and managing our structural inventory to minimize margin risk.”

2005 Results Versus As Reported 2004 Results

Sales for the fourth quarter ended December 31, 2005, were $1.33 billion, compared with $1.21 billion for the same period last year. Gross profit rose to $140.4 million from $101.4 million in the prior-year period primarily reflecting increased unit volume sales and improved year-over-year pricing. Net income for the fourth quarter of 2005 was $14.5 million, compared with a loss of $5.8 million the previous year.

For the full year ended December 31, 2005, BlueLinx reported sales of $5.62 billion, compared with $5.56 billion last year. Gross profit was $512.4 million compared with $560.4 million in 2004. Net income was $44.6 million, compared with $76.3 million a year earlier. The company’s net income of $76.3 million for 2004 was achieved partially as a division of Georgia-Pacific Corporation and did not include interest expense and certain corporate overhead expenses that are included in the results for 2005.

Dividend

On February 14, 2006, the BlueLinx Board of Directors declared a $0.125 dividend on the company’s common shares for the quarter ended December 31, 2005. The dividend is payable on March 31, 2006, to shareholders of record on March 15, 2006.

Basis of Presentation

This release provides unaudited financial statements for the fourth-quarter and full-year periods of 2005 and 2004. For purposes of comparison, the statements of operations for the fourth quarter and 12 months ended January 1, 2005, are provided on both an as reported and a pro forma basis. Last year’s pro forma results reflect the acquisition by BlueLinx of the real estate and operating assets of the building products distribution division of Georgia-Pacific Corporation and the BlueLinx Holdings Inc.’s subsequent IPO on December 14, 2004. Results have been adjusted to reflect the acquisition transaction, mortgage refinancing transaction, and offering transaction, and are presented as if BlueLinx Holdings Inc. had been a standalone entity since December 29, 2002. On a pro forma basis, diluted earnings per share is calculated using 30.2 million shares. Detailed reconciliations of all pro forma adjustments are included in the slide presentation accompanying the company’s fourth-quarter conference call, which can be found in the investor relations section on the BlueLinx web site at www.BlueLinxCo.com. Additionally, rebar/remesh, which previously was classified with other metals as a specialty product, has been reclassified as a structural product for all periods presented. Rebar was reclassified because its supply, demand and distribution characteristics are similar to other structural products.

Conference Call

BlueLinx will host a conference call today at 10:00 a.m. Eastern Time, accompanied by a supporting slide presentation. Investors may listen to the conference call and download the presentation by going to the Investor Relations page of the BlueLinx web site, at www.BlueLinxCo.com. Investors also can access a recording of the conference call for one week by calling 706-645-9291, Conference ID# 4904545. The recording will be available two hours after the conference call has concluded. Investors also can access a recording of this call on the BlueLinx web site where a replay of the webcast will be available for 90 days.

About BlueLinx Holdings Inc.

Headquartered in Atlanta, Georgia, BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America. Employing more than 3,600 people in North America, BlueLinx offers 10,000 products from over 750 suppliers to service approximately 12,000 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and home improvement retailers. The company operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 65 warehouses. Additional information about BlueLinx can be found on its web site atwww.BlueLinxCo.com.

Forward-looking Statements

This press release 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 year ended January 1, 2005, and in its periodic reports filed with the Securities and Exchange Commission from time to time. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. BlueLinx undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

- Tables to Follow -

BlueLinx Holdings Inc.
Statements of Operations
    in thousands, except per share data

	Quarters Ended					Years Ended
	BlueLinx		BlueLinx			BlueLinx		BlueLinx
	As Reported		Proforma			As Reported		Proforma
	December 31,		January 1,			December 31,		January 1,
	2005		2005			2005		2005
	(unaudited)		(unaudited)			(unaudited)		(unaudited)
Net sales	$	1,329,259	$	1,207,627		$	5,622,071	$	5,558,154
Cost of sales		1,188,866		1,106,203			5,109,632		4,994,386
Gross profit		140,393		101,424			512,439		563,768
Operating expenses:
Selling, general, and administrative		100,699		92,692			378,008		384,781
Depreciation and amortization		4,977		3,895			18,770		15,487
Total operating expenses		105,676		96,587			396,778		400,268
Operating income		34,717		4,837			115,661		163,500
Non-operating expenses (income):
Interest expense		11,105		9,924			42,311		37,679
Other expense (income), net		128		(482	)		186		98
Income (loss) before provision for (benefit from) income taxes		23,484		(4,605	)		73,164		125,723
Provision for (benefit from) income taxes		8,946		(1,874	)		28,561		51,170
Net income (loss)		14,538		(2,731	)		44,603		74,553
Less: Preferred stock dividends		—		—			—		—
Net income (loss) applicable to common shareholders	$	14,538	$	(2,731	)	$	44,603	$	74,553
Basic weighted average number of common shares outstanding		30,240		30,185			30,195		30,185
Basic net income (loss) per share applicable to common stock	$	0.48	$	(0.09	)	$	1.48	$	2.47
Diluted weighted average number of common shares outstanding		30,551		30,185			30,494		30,185
Diluted net income (loss) per share applicable to common stock	$	0.48	$	(0.09	)	$	1.46	$	2.47
Dividends declared per share of common stock	$	0.125				$	0.50

BlueLinx Holdings Inc.
Statements of Operations
    in thousands, except per share data

	Quarters Ended					Years Ended
	BlueLinx		BlueLinx			BlueLinx		BlueLinx
	As Reported		As Reported			As Reported		As Reported
								(Combined)
	December 31,		January 1,			December 31,		January 1,
	2005		2005			2005		2005
	(unaudited)		(unaudited)			(unaudited)		(unaudited)
Net sales	$	1,329,259	$	1,207,627		$	5,622,071	$	5,558,154
Cost of sales		1,188,866		1,106,203			5,109,632		4,997,713
Gross profit		140,393		101,424			512,439		560,441
Operating expenses:
Selling, general, and administrative		100,699		92,692			378,008		387,494
Depreciation and amortization		4,977		3,895			18,770		16,307
Total operating expenses		105,676		96,587			396,778		403,801
Operating income		34,717		4,837			115,661		156,640
Non-operating expenses (income):
Interest expense		11,105		11,057			42,311		28,765
Write-off debt issue costs		—		2,871			—		2,871
Other expense (income), net		128		(482	)		186		98
Income (loss) before provision for (benefit from) income taxes		23,484		(8,609	)		73,164		124,906
Provision for (benefit from) income taxes		8,946		(2,803	)		28,561		48,563
Net income (loss)		14,538		(5,806	)		44,603	$	76,343
Less: Preferred stock dividends		—		1,255			—
Net income (loss) applicable to common shareholders	$	14,538	$	(7,061	)	$	44,603
Basic weighted average number of common shares outstanding		30,240		20,507			30,195
Basic net income (loss) per share applicable to common stock	$	0.48	$	(0.34	)	$	1.48
Diluted weighted average number of common shares outstanding		30,551		20,507			30,494
Diluted net income (loss) per share applicable to common stock	$	0.48	$	(0.34	)	$	1.46
Dividends declared per share of common stock	$	0.125				$	0.50

BlueLinx Holdings Inc.
Balance Sheets
    in thousands

	BlueLinx			BlueLinx
	As Reported			As Reported
	December 31,			January 1,
	2005			2005
	(unaudited)
Assets:
Current assets:
Cash	$	24,320		$	15,572
Receivables		399,093			363,688
Inventories		473,068			500,231
Deferred income taxes		6,678			6,122
Other current assets		44,909			34,203
Total current assets		948,068			919,816
Property, plant, and equipment:
Land and land improvements		56,521			55,573
Buildings		93,381			93,133
Machinery and equipment		54,200			41,063
Construction in progress		2,350			5,089
Property, plant, and equipment, at cost		206,452			194,858
Accumulated depreciation		(22,403	)		(7,880	)
Property, plant, and equipment, net		184,049			186,978
Other non-current assets		25,523			30,268
Total assets	$	1,157,640		$	1,137,062
Liabilities :
Current liabilities:
Accounts payable	$	327,004		$	270,271
Bank overdrafts		62,392			32,033
Accrued compensation		13,494			18,292
Current maturities of long-term debt		—			94,103
Other current liabilities		15,195			13,142
Total current liabilities		418,085			427,841
Noncurrent liabilities:
Long-term debt		540,850			558,000
Deferred income taxes		1,911			740
Other long-term liabilities		12,942			8,989
Total liabilities		973,788			995,570
Shareholders’ Equity:
Common stock		303			295
Additional paid in capital		132,346			121,306
Accumulated other comprehensive income		1,023			(789	)
Retained earnings		50,180			20,680
Total shareholders’ equity		183,852			141,492
Total liabilities and equity	$	1,157,640		$	1,137,062

BlueLinx Holdings Inc.
Statements of Cash Flows
    in thousands

	Years Ended
				BlueLinx
	BlueLinx			As Reported
	As Reported			(Combined)
	December 31,			January 1,
	2005			2005
	(unaudited)			(unaudited)
Cash flows from operating activities:
Net income	$	44,603		$	76,343
Adjustments to reconcile net income to cash provided by (used in) operations:
Depreciation and amortization		18,770			16,307
Amortization of debt issue costs		3,629			2,323
Write-off of debt issue costs		—			2,871
Deferred income tax provision (benefit)		(368	)		4,714
Changes in assets and liabilities:
Receivables		(30,609	)		(70,821	)
Inventories		36,889			(158,769	)
Accounts payable		56,605			160,078
Changes in other working capital		(12,902	)		(10,692	)
Other		8,171			910
Net cash provided by (used in) operating activities		124,788			23,264
Cash flows from investing activities:
Acquisitions, net of cash acquired		(16,908	)		(823,330	)
Property, plant, and equipment investments		(12,744	)		(11,137	)
Proceeds from sale of assets		1,153			349
Net cash used in investing activities		(28,499	)		(834,118	)
Cash flows from financing activities:
Net transactions with Georgia-Pacific Corporation		—			88,352
Preferred stock, net		—			(5,226	)
Issuance of common stock, net		8,548			120,513
Proceeds from stock options exercised		478			—
Net increase (decrease) in revolving credit facility		(111,253	)		487,103
Other long-term debt, net		—			165,000
Debt financing costs		(570	)		(21,236	)
Increase in bank overdrafts		30,359			(8,586	)
Common dividends paid		(15,103	)		—
Net cash provided by (used in) financing activities		(87,541	)		825,920
Increase (decrease) in cash		8,748			15,066
Balance, beginning of period		15,572			506
Balance, end of period	$	24,320		$	15,572

BlueLinx Holdings Inc.
Statements of Operations
As Reported Reconciliation
    in thousands, except per share data

								BlueLinx
	BlueLinx		BlueLinx			Distribution Division		As Reported
	As Reported		As Reported			As Reported		(Combined)
	Years Ended		Period from			Period from		Year Ended
	December 31,		Inception (March 8, 2004)			January 4, 2004		January 1,
	2005		to January 1,			to May 7,		2005
	(unaudited)		2005			2004		(unaudited)
Net sales	$	5,622,071	$	3,672,820		$	1,885,334	$	5,558,154
Cost of sales		5,109,632		3,339,590			1,658,123		4,997,713
Gross profit		512,439		333,230			227,211		560,441
Operating expenses:
Selling, general, and administrative		378,008		248,291			139,203		387,494
Depreciation and amortization		18,770		10,132			6,175		16,307
Total operating expenses		396,778		258,423			145,378		403,801
Operating income		115,661		74,807			81,833		156,640
Non-operating expenses (income):
Interest expense		42,311		28,765			—		28,765
Write-off debt issue costs		—		2,871			—		2,871
Other expense (income) net		186		(516	)		614		98
Income (loss) before provision for (benefit from) income taxes		73,164		43,687			81,219		124,906
Provision for (benefit from) income taxes		28,561		17,781			30,782		48,563
Net income (loss)		44,603		25,906		$	50,437	$	76,343
Less: Preferred stock dividends		—		5,226
Net income (loss) applicable to common shareholders	$	44,603	$	20,680
Basic weighted average number of common shares outstanding		30,195		19,006
Basic net income (loss) per share applicable to common stock	$	1.48	$	1.09
Diluted weighted average number of common shares outstanding		30,494		20,296
Diluted net income (loss) per share applicable to common stock	$	1.46	$	1.02
Dividends declared per share of common stock	$	0.50

BlueLinx Holdings Inc.
Statements of Cash Flows
As Reported Reconciliation
    in thousands

										BlueLinx
	BlueLinx			BlueLinx			Distribution Division			As Reported
	As Reported			As Reported			As Reported			(Combined)
	Fiscal Year			Period from			Period from			Fiscal Year
	Ended			Inception (March 8, 2004)			January 4, 2004			Ended
	December 31,			to January 1,			to May 7,			January 1,
	2005			2005			2004			2005
	(unaudited)									(unaudited)
Cash flows from operating activities:
Net income	$	44,603		$	25,906		$	50,437		$	76,343
Adjustments to reconcile net income to cash provided by (used in) operations:
Depreciation and amortization		18,770			10,132			6,175			16,307
Amortization of debt issue costs		3,629			2,323			—			2,323
Write-off of debt issue costs		—			2,871			—			2,871
Deferred income tax provision (benefit)		(368	)		(4,469	)		9,183			4,714
Changes in assets and liabilities:
Receivables		(30,609	)		221,529			(292,350	)		(70,821	)
Inventories		36,889			(13,080	)		(145,689	)		(158,769	)
Accounts payable		56,605			(97,694	)		257,772			160,078
Changes in other working capital		(12,902	)		(13,156	)		2,464			(10,692	)
Other		8,171			2,884			(1,974	)		910
Net cash provided by (used in) operating activities		124,788			137,246			(113,982	)		23,264
Cash flows from investing activities:
Acquisitions, net of cash acquired		(16,908	)		(823,330	)		—			(823,330	)
Property, plant, and equipment investments		(12,744	)		(9,759	)		(1,378	)		(11,137	)
Proceeds from sale of assets		1,153			97			252			349
Net cash used in investing activities		(28,499	)		(832,992	)		(1,126	)		(834,118	)
Cash flows from financing activities:
Net transactions with Georgia-Pacific Corporation		—			—			88,352			88,352
Preferred stock, net		—			(5,226	)		—			(5,226	)
Issuance of common stock, net		8,548			120,513			—			120,513
Proceeds from stock options exercised		478			—			—			—
Net increase (decrease) in revolving credit facility		(111,253	)		487,103			—			487,103
Other long-term debt, net		—			165,000			—			165,000
Debt financing costs		(570	)		(21,236	)		—			(21,236	)
Increase (decrease) in bank overdrafts		30,359			(34,836	)		26,250			(8,586	)
Common dividends paid		(15,103	)		—			—			—
Net cash provided by (used in) financing activities		(87,541	)		711,318			114,602			825,920
Increase (decrease) in cash		8,748			15,572			(506	)		15,066
Balance, beginning of period		15,572			—			506			506
Balance, end of period	$	24,320		$	15,572		$	—		$	15,572