EXHIBIT 99.1
[BLUELINX LOGO]
4300 Wildwood Parkway
Atlanta, GA 30339
1-888-502-BLUE
www.BlueLinxCo.com
BLUELINX CONTACT: INVESTOR CONTACT:
David Morris Jody Burfening / Chris Witty
BlueLinx Holdings Inc. Lippert/Heilshorn & Associates, Inc.
(866) 671-5138 (212) 838-3777
cwitty@lhai.com
FOR IMMEDIATE RELEASE
BLUELINX ANNOUNCES PRELIMINARY SECOND QUARTER RESULTS
- Board of Directors Declares a $0.125 Dividend for the Second Quarter -
ATLANTA, GA, July 22, 2005 - BLUELINX HOLDINGS INC. (NYSE: BXC), a leading
distributor of building products in North America, expects to report earnings
per share in the range of $0.22 to $0.26 and revenue of approximately $1.48
billion, based on a preliminary review of results for the second quarter ended
July 2, 2005. Gross profit and operating expenses for the quarter are expected
to be approximately $115 million and $92 million, respectively.
Gross profit for the fiscal 2005 second quarter was negatively impacted
primarily by a significant decline in structural product prices. The Random
Lengths composite price index for pine plywood, oriented strand board and lumber
declined 8%, 26% and 9%, respectively, during the quarter. In addition,
structural product sales through the lower cost-to-serve direct channel grew
disproportionately, which contributed to a lower gross margin rate.
"We entered the second quarter operating in a weak structural product pricing
environment that persisted throughout the quarter. In this soft pricing
environment, we took steps to mitigate the risk of holding price-sensitive
inventory by shifting more structural product sales to the direct channel, just
as we did in the first quarter. This channel shift, along with a continued focus
on disciplined cost management, mitigated the impact of falling structural
prices," said Chuck McElrea, chief executive officer.
"Operationally, we remain focused on gaining market share by extending our
presence in the under-penetrated industrial market segment, delivering
value-added solutions to selected high return customers, and increasing our
vendor base, while improving productivity," said Mr. McElrea. "Our plan to grow
our industrial business, which includes a higher mix of less price sensitive
specialty products, will benefit from acquisitions such as Lane Stanton Vance, a
distributor of specialty products to industrial customers in California, which
we announced separately today."
DIVIDEND
The BlueLinx Board of Directors declared a $0.125 dividend on the company's
common shares for the quarter ended July 2, 2005, payable on September 30, 2005
to shareholders of record on September 15, 2005.
SECOND QUARTER EARNINGS CONFERENCE CALL
BlueLinx will report final financial results for the second quarter on August 8,
2005 before the market opens. The company will host a conference call at 10:00
eastern daylight time that day. For details about accessing the call, please see
the July 13, 2005 earnings notification release.
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 3,300 people in North
America, BlueLinx offers 10,000 products from over 750 suppliers to service more
than 11,700 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 60 warehouses. Additional information about BlueLinx
can be found on its web site at www.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; 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.