8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 4, 2007

BLUELINX HOLDINGS INC.

(Exact name of registrant specified in its charter)

Delaware	001-32383	77-0627356
(State or other	(Commission	(I.R.S. Employer
jurisdiction of incorporation)	File Number)	Identification No.)
4300 Wildwood Parkway, Atlanta, Georgia		30339
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (770) 953-7000

Not applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On May 4, 2007, BlueLinx Holdings Inc. (“BlueLinx”) issued a press release announcing our financial results for the first fiscal quarter ended March 31, 2007. A copy of BlueLinx’ press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

On May 4, 2007, as previously announced, BlueLinx held a teleconference and audio webcast to discuss our financial results from the first fiscal quarter ended March 31, 2007. The webcast will be archived and can be accessed via our website at www.BlueLinxCo.com. Additionally, we have posted slides at our website, under the investor relations page, which were referenced during the audio webcast. These slides are furnished as Exhibit 99.2 hereto. All information on the slides and in the webcast is presented as of May 4, 2007, and BlueLinx does not assume any obligation to update such information in the future.

To supplement GAAP financial statements in the press release and webcast slides, we use non-GAAP, or pro forma measures of operating results. This non-GAAP, or pro forma financial information is provided as additional information for investors and is not in accordance with or an alternative to GAAP. These adjusted results exclude certain costs, expenses, gains and losses, and we believe their exclusion can enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of the operating performance of BlueLinx as opposed to GAAP results, which may include non-recurring, infrequent or other non-cash charges that are not material to the ongoing performance of our business. Our management uses these non-GAAP and pro forma results as a basis for planning and forecasting core business activity in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net earnings, diluted earnings per share or net cash provided by (used in) operating activities prepared in accordance with generally accepted accounting principles in the United States.

The information included in this Item 2.02, as well as Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

99.1 Press release, dated May 4, 2007, reporting financial results for the first fiscal quarter ended March 31, 2007.

99.2 Webcast conference call slides used during webcast conference call on May 4, 2007.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BLUELINX HOLDINGS INC.
By:	/s/ Barbara V. Tinsley
	Barbara V. Tinsley
	General Counsel & Secretary

Dated: May 4, 2007

EXHIBIT INDEX

Exhibit
Number	Exhibit Name
99.1	Press release, dated May 4, 2007, reporting financial results for the first fiscal quarter ended March 31, 2007.
99.2	Webcast conference call slides used during webcast conference call on May 4, 2007.

EX-99.1

EXHIBIT 99.1

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

BlueLinx Contacts:
Lynn Wentworth, CFO & Treasurer	Jim Storey, VP Investor Relations
BlueLinx Holdings Inc.	BlueLinx Holdings Inc.
(770) 953-7505	(770) 612-7169

FOR IMMEDIATE RELEASE

BLUELINX ANNOUNCES FIRST-QUARTER RESULTS
— Net Loss of $0.01 Per Share on 30.5% Revenue Decline as Housing-Related Slowdown Continues —
— Gross Margin Rises to 10.8% for Quarter —

ATLANTA — May 4, 2007 — BlueLinx Holdings Inc. (NYSE: BXC), a leading distributor of building products in North America, today reported financial results for the first quarter ended March 31, 2007.

The first-quarter net loss totaled $189,000, or $0.01 per diluted share, compared with net income of $9.8 million, or $0.32 per share, in the year-ago period. Revenues decreased 30.5% to $957.1 million from $1.38 billion for the same period a year ago, reflecting a 36.2% drop in structural product sales and a 21.3% sales decline in specialty products. Approximately two-thirds of the sales decline in structural products resulted from unit volume, which fell 22.6% from a year ago, as demand related to new home construction remained sharply below year-earlier levels, evidenced by a 29.8% drop in new home construction for the quarter. The sales decrease in specialty products was due almost entirely to unit volume, which declined 20.9%. Overall unit volume for the company’s estimated weighted end-use markets fell 18.1% from the prior year.

Gross profit for the first quarter totaled $103.8 million, down 20.2% from $130 million in the prior-year period, reflecting lower unit volume associated with the housing starts decline. This decline was offset in part by an increase in gross margin. Gross margin increased 140 basis points to 10.8% from 9.4% a year earlier, due to structural product gross margin improvements achieved as wood-based structural product prices generally stabilized during the quarter after deteriorating sharply throughout much of 2006. First-quarter structural product gross margin of 8.7% improved 180 basis points from the year-ago period and 170 basis points from the previous quarter. Specialty product gross margin of 13.9% remained unchanged from a year ago and was up 10 basis points from the fourth quarter.

Total operating expenses of $93.9 million decreased $8.4 million, or 8.3%, from the same period a year ago, primarily reflecting decreases in variable compensation and lower payroll costs related to headcount reductions implemented in the third quarter of 2006. The operating expense decrease was partially offset by additional operating expense related to Austin Hardwoods, which was acquired last August, and expenses associated with investments in the business, including the implementation of a sales process and productivity improvement program designed to enhance market share and profitability. Operating income for the quarter totaled $9.9 million, compared with $27.6 million a year ago.

BlueLinx Q1’07 Press Release	Page 2 of 6
May 4, 2007

“We continued to operate in a challenging business environment during the first quarter,” said Stephen Macadam, chief executive officer. “The ongoing cyclical decline in housing starts and lower wood-based structural product prices, the key grades of which ended the quarter approximately 26% below year-earlier levels, combined to make the first quarter a continuation of one of the weakest business environments our industry has experienced in many years.

“We faced these challenges by tightly managing costs while continuing to focus on the strategies that will facilitate our long-term growth as a leading distributor of specialty building products,” Macadam said. “We continued to provide quality service to our customers. We focused on expanding our specialty product business. We also continued to invest in processes and infrastructure to drive long-term profitability and market-share growth.

“As we move forward in 2007, we remain confident in our ability to execute our long-term strategy in this challenging environment,” Macadam said. “We currently do not see any signs of significant recovery in our housing-related business, but neither do we see signs of significant further deterioration. Our overall end-use markets appear generally weak, but stable. Wood-based structural product prices are showing some stability, but remain near their manufacturing costs and sharply below year-ago levels. We do not expect wood-based structural product prices to show any sustained recovery until demand returns with the recovery of the home construction sector.

“We continue to believe the longer-term fundamentals for household creation remain favorable for our business,” Macadam said. “We are proceeding in the current environment by focusing on improved margin performance and diligent cost and working capital management as we continue to execute on our long-term objectives.”

Dividend
On May 3, 2007 the BlueLinx Board of Directors declared a $0.125 dividend on the company’s common shares for the quarter ended March 31, 2007. The dividend is payable on June 29, 2007, to shareholders of record on June 15, 2007.

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# 6257933. 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.

Use of Non-GAAP Measures
BlueLinx reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The company also believes that presentation of certain non-GAAP measures, i.e., results excluding certain charges, provides useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, without the impact of significant special items, and thereby enhances the user’s overall understanding of the company’s current financial performance relative to past performance and provides a better baseline for modeling future earnings expectations. Non-GAAP measures are reconciled in the financial tables accompanying this news release. The company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the company’s reported GAAP results.

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, BlueLinx offers greater than 10,000 products from over 750 suppliers to service approximately 11,500 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and

BlueLinx Q1’07 Press Release	Page 3 of 6
May 4, 2007

home improvement retailers. The company operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 70 warehouses. BlueLinx, which is on the Fortune 500 list of the nation’s largest companies, is traded on the New York Stock Exchange under the symbol BXC. 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 our 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 that we distribute, especially as a result of conditions in the residential housing market; general economic and business conditions in the United States; 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; 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 December 30, 2006, 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 Q1’07 Press Release	Page 4 of 6
May 4, 2007

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

	Quarters Ended
	March 31,			Apri1 1,
	2007			2006
	(unaudited)			(unaudited)
Net sales	$	957,114		$	1,376,606
Cost of sales		853,359			1,246,654
Gross profit		103,755			129,952
Operating expenses:
Selling, general, and administrative		88,468			97,267
Depreciation and amortization		5,400			5,043
Total operating expenses		93,868			102,310
Operating income		9,887			27,642
Non-operating expenses:
Interest expense		10,606			11,197
Other (income) expense, net		(383	)		81
Income (loss) before provision for (benefit from) income taxes		(336	)		16,364
Provision for (benefit from) income taxes		(147	)		6,569
Net income (loss)		(189	)		9,795
Basic weighted average number of common shares outstanding		30,800			30,417
Basic net income (loss) per share applicable to common stock	$	(0.01	)	$	0.32
Diluted weighted average number of common shares outstanding		30,800			30,713
Diluted net income (loss) per share applicable to common stock	$	(0.01	)	$	0.32
Dividends declared per share of common stock	$	0.125		$	0.125

BlueLinx Q1’07 Press Release	Page 5 of 6
May 4, 2007

BlueLinx Holdings Inc.
Balance Sheets
in thousands

	March 31,			December 30,
	2007			2006
	(unaudited)
Assets:
Current assets:
Cash	$	20,262		$	27,042
Receivables		377,695			307,543
Inventories		465,550			410,686
Deferred income taxes		8,785			9,024
Other current assets		43,908			44,948
Total current assets		916,200			799,243
Property, plant, and equipment:
Land and land improvements		57,483			56,985
Buildings		95,814			95,814
Machinery and equipment		64,404			61,955
Construction in progress		3,949			2,025
Property, plant, and equipment, at cost		221,650			216,779
Accumulated depreciation		(42,304	)		(38,530	)
Property, plant, and equipment, net		179,346			178,249
Other non-current assets		26,334			26,870
Total assets		1,121,880			1,004,362
Liabilities :
Current liabilities:
Accounts payable	$	233,941		$	195,815
Bank overdrafts		50,603			50,241
Accrued compensation		9,498			8,574
Current maturities of long-term debt		88,281			9,743
Other current liabilities		16,135			14,633
Total current liabilities		398,458			279,006
Noncurrent liabilities:
Long-term debt		522,719			522,719
Deferred income taxes		1,513			1,101
Other long-term liabilities		13,048			12,137
Total liabilities		935,738			814,963
Shareholders’ Equity:
Common stock		312			309
Additional paid in capital		139,224			138,066
Accumulated other comprehensive income		59			412
Retained earnings		46,547			50,612
Total shareholders’ equity		186,142			189,399
Total liabilities and equity	$	1,121,880		$	1,004,362

BlueLinx Q1’07 Press Release	Page 6 of 6
May 4, 2007

BlueLinx Holdings Inc.
Statements of Cash Flows
in thousands

	Quarters Ended
	March 31,			April 1,
	2007			2006
	(unaudited)			(unaudited)
Cash flows from operating activities:
Net income (loss)	$	(189	)	$	9,795
Adjustments to reconcile net income (loss) to cash provided by (used in) operations:
Depreciation and amortization		5,400			5,043
Amortization of debt issue costs		606			765
Deferred income tax provision (benefit)		198			(753	)
Share-based compensation		874			562
Excess tax benefits from share-based compensation arrangements		(60	)		(862	)
Changes in assets and liabilities:
Receivables		(70,152	)		(81,373	)
Inventories		(54,864	)		(28,084	)
Accounts payable		38,126			25,898
Changes in other working capital		3,526			904
Other		(472	)		1,704
Net cash used in operating activities		(77,007	)		(66,401	)
Cash flows from investing activities:
Property, plant, and equipment investments		(6,092	)		(658	)
Proceeds from sale of assets		879			135
Net cash used in investing activities		(5,213	)		(523	)
Cash flows from financing activities:
Proceeds from stock options exercised		323			1,479
Excess tax benefits from share-based compensation arrangements		60			862
Net increase in revolving credit facility		78,538			84,919
Debt financing costs		—			(569	)
Increase (decrease) in bank overdrafts		362			(12,822	)
Common dividends paid		(3,876	)		(3,831	)
Other		33			—
Net cash provided by financing activities		75,440			70,038
Increase (decrease) in cash		(6,780	)		3,114
Balance, beginning of period		27,042			24,320
Balance, end of period	$	20,262		$	27,434

###

EX-99.2

EXHIBIT 99.2

BlueLinx Quarterly Review 1st Quarter 2007

BlueLinx Holdings Inc. Safe Harbor Statement and Use of Non-GAAP and Pro Forma Information Forward-Looking Statement Safe Harbor - This presentation 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 our 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, especially as a result of conditions in the residential housing market; general economic business conditions in the United States; 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 fiscal year ended December 30, 2006, and in its periodic reports filed with the SEC from time to time. In addition, the statements in this presentation are made as of May 4, 2007. The Company expects that subsequent events or developments will cause its views to change. The Company undertakes no obligation to update any of the forward-looking statements made herein, whether as a result of new information, future events, changes in expectation or otherwise. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to May 4, 2007. Use of Non-GAAP and Pro Forma* Financial Information - To supplement GAAP financial statements, the Company uses non-GAAP, or pro forma measures of operating results. This non-GAAP, or pro forma financial information is provided as additional information for investors and is not in accordance with or an alternative to GAAP. These adjusted results exclude certain costs, expenses, gains and losses, and we believe their exclusion can enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of the operating performance of the Company as opposed to GAAP results, which may include non-recurring, infrequent or other non-cash charges that are not material to the ongoing performance of the Company's business. Company management uses these non-GAAP and pro forma results as a basis for planning and forecasting core business activity in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net earnings, diluted earnings per share or net cash provided by (used in) operating activities prepared in accordance with generally accepted accounting principles in the United States.

1st Quarter Highlights 1st Quarter Highlights Housing Starts Declined 30% from the same period last year Declined 30% from the same period last year Prices Key grades of wood-based structural products down 26% from year ago Key grades of wood-based structural products down 26% from year ago Revenue Down 30.5% to $1.0 billion Specialty down 21.3%, 47% of Total Revenue, 59% of GM Structural down 36.2% Down 30.5% to $1.0 billion Specialty down 21.3%, 47% of Total Revenue, 59% of GM Structural down 36.2% Unit Volume Total down 21.9% Specialty down 20.9% Structural down 22.6% End-use markets down 18.1% Total down 21.9% Specialty down 20.9% Structural down 22.6% End-use markets down 18.1% Gross Margin Total 10.8% vs. 9.4% Specialty 13.9% Structural 8.7% Total 10.8% vs. 9.4% Specialty 13.9% Structural 8.7% Net Loss ($0.2) million / ($0.01) per share vs. $9.8 million / $0.32 per share ($0.2) million / ($0.01) per share vs. $9.8 million / $0.32 per share Quarterly Highlights

Introduction Steve Macadam Chief Executive Officer

BlueLinx continues to focus on its long term strategic objectives in a difficult operating environment Profitably grow specialty revenues to 60+% of total sales Profitably grow structural while reducing exposure to volatility Outgrow the market over the long term Introduction

Lynn Wentworth Chief Financial Officer & Treasurer Financial Review

Specialty Unit Volume (20.9%) Quarterly Revenue Quarterly sales of $957.1 million down $419.5 million or 30.5% The sales decrease was the result of lower unit volumes in both specialty and structural combined with lower structural prices revenue 1Q '06 1376.6 2Q '06 1379 3Q '06 1203.6 4Q '06 940.3 1Q '07 957.1 YOY $419.5 or 30.5% Structural Unit Volume (22.6%) Prices (8.3%) ($419.5)

Quarterly Gross Margin BXC generated $103.8 million in gross profit for the quarter, down $26.2 million from a year ago Gross Margin increased 140bp from a year ago 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 Gross Margin 130 136.4 120.9 92.5 103.8 YOY $26.2 or 20.2% 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 GM % 0.094 0.099 0.1 0.098 0.108 YOY 140 bp

Quarterly Operating Expense Operating Expense 1Q '06 102.3 2Q '06 103.2 3Q '06 104.9 4Q '06 91.9 1Q '07 93.9 YOY $8.4 or 8.2% BXC made significant reductions in operating costs during the quarter vs. the prior year quarter Decreases in variable compensation Lower payroll cost related to headcount reductions

Quarterly Net Income and EPS 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 Net Income 9.8 9.6 2.3 -5.9 -0.2 EPS 0.32 0.31 0.07 -0.19 -0.01

Cash Flows Beginning Cash Balance 0 27.042 Net Income 26.853 0.189 Adjustments 26.853 7.018 Receivables 33.871 -36.281 Inventories -36.281 -54.864 Accounts Payable -53.019 -38.126 Other -49.965 -3.054 Net Cash provided by (used in) operating activities 27.042 -49.965 Net Cash provided by (used in) investing activities -49.965 -5.213 Net Cash provided by (used in) financing activities -55.178 24.138 Dividends 20.23 3.876 Ending Cash Balance 20.2 Three Months Ended March 31, 2007 (in millions) BXC used $77 million in operating cash flow for the quarter ($6.8)

Inventory Analysis BXC managed inventory to support strategic initiatives YOY decline reflects tighter management of structural inventory Specialty inventory increases YOY and sequentially reflect investments to support growth strategy Structural sequential increase reflects opportunistic purchase of rebar/remesh inventory 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 Inventory 501.2 532.2 471.2 410.7 465.6 YOY $35.6 or 7.1% Sequential Quarter Variance Year Ago Quarter Variance Specialty 26.7 12.1 Structural 20 -34.4 Other 8.2 -13.3 Other includes in-transit inventory accruals, discounts, allowances, reserves, and other miscellaneous items $54.9 ($35.6)

Working Capital 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 Average Working Capital 606.7 664.8 666.9 564 565.118 Revenue 1376.6 1379 1203.5 940.3 957.114 COGS 1246.7 1242.5 1082.7 847.7 853.359 Working capital turn days at 53 vs. 40 same period last year Inventory turn days above desired levels Accounts Receivable and Accounts Payable in line with historical turn day levels Turn days 40 43 50 54 53

Summary 1st Quarter Achievements Managed margins well in this continued challenging environment 10.8% gross margin vs. 9.4% for the same period a year ago Aggressively managed costs 8.2% or $8.4 million decline in operating expenses from a year ago Invested in inventory for both anticipated seasonal factors and to support our ongoing specialty product focus Making necessary investments to support specialty growth strategy Inventory management and forecasting, financial budgeting and reporting, order tracking and visibility and product marketing Financially sound with financial resources necessary to continue pursuing our strategic objectives and maintain our dividend

George Judd President & Chief Operating Officer Operations Review

Quarterly Sales and Gross Margin By Product BXC continued to make progress in expanding specialty % of sales 1Q '07 Specialty 456.5 Structural 518.9 1Q '06 1Q '07 Gross Margin 1Q '06 1Q '07 Specialty $80.4 $63.6 13.9% 13.9% Structural $55.8 $44.9 6.9% 8.7% Other ($6.2) ($4.7) Total $130.0 $103.8 9.4% 10.8% 10.8% total gross margin compares to 9.4% a year ago Sales 1Q '06 Specialty 580 Structural 813.4

Specialty vs. Structural Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Specialty 539.5 580 603.3 553.5 460 456.5 Structural 815.2 813.4 798.7 666.6 509.2 518.9 Other -25.4 -16.8 -23 -16.6 -28.9 -18.3 Specialty Business YOY gross profit down $16.8 on constant gross margin of 13.9% YOY revenue decreased $123.5 or 21.3% due to 20.9% lower unit volume Structural Business YOY gross profit down $10.9 on 180 bp improvement in gross margin to 8.7% YOY revenue decreased $294.5 or 36.2% due to 22.6% lower unit volume and declines in pricing Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Speciatly 76.8 80.4 86.9 77.5 63.5 63.6 Structural 67.8 55.8 55.7 46.8 35.7 44.9 Other -4.3 -6.2 -6.2 -3.4 -6.7 -4.8 Specialty GM % 13.9% 14.4% 14.0% 13.8% 13.9% Structural GM % 6.9% 7.0% 7.0% 7.0% 8.7% Strong margin performance in difficult operating environment

Structural decline due to housing slowdown and margin strategy Q1 specialty underperformed end-use markets by 280 bp Unit Volume Growth Unit Volume Growth

Product transitions and price competition in transactional business negatively impacted Q1 specialty unit volume growth Austin Hardwoods, acquired August 2006, contributed 107 bp to specialty unit volume for the quarter Specialty Unit Growth vs. End Use Markets

Key Initiatives To support our strategic objectives: Improve gross margin by increasing mix of specialty and mitigating volatility of structural Invest in people and processes to support specialty growth Increase presence in under represented business areas, particularly industrials, and continue focus on targeted, growing accounts that serve attractive high-growth markets Expand relationships with existing specialty product vendors Be a patient, disciplined acquirer

Steve Macadam Summary Remarks Worst business environment in many years Managing the business appropriately given the environment Long-term housing outlook remains robust 2007 plan based on expectations of sales decline from 2006 Improve overall gross margin performance Continue to shift product mix to specialty Continue to effectively manage structural inventory Remain vigilant in controlling and managing costs Invest for long-term success

Appendix TOPIC PAGE Revenues by Quarter 23 Unit Volume Growth by Quarter 24 Market Growth by Quarter 25 Gross Margin by Quarter 26 Profit and Loss Statement by Quarter 27 Inventory by Quarter 28 Gross Margin % Analysis 29 Channel Mix Analysis 30 Structural Product Price Trends 31

Revenues by Quarter Revenues by Quarter

Unit Volume Growth by Quarter Unit Volume Growth by Quarter

Source: Data from Resource Information Systems, Inc., or RISI, updated as of April 25, 2007 weighted using management's estimates. Market Growth by Quarter Market Growth by Quarter

Gross Margin by Quarter Gross Margin by Quarter

Profit & Loss Statement by Quarter Profit & Loss Statement by Quarter

Inventory by Quarter Inventory by Quarter

Gross Margin % Analysis Gross Margin % Analysis

Revenue Channel Mix Analysis Revenue Channel Mix Analysis

Source: Data from Random Lengths Publications, Inc., updated as of April 27, 2007 Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend