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): November 1, 2007

BLUELINX HOLDINGS INC.

(Exact name of registrant specified in its charter)

Delaware	001-32383	77-0627356
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer 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 November 1, 2007, BlueLinx Holdings Inc. (“BlueLinx”) issued a press release announcing our financial results for the third fiscal quarter ended September 29, 2007. A copy of BlueLinx’ press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

On November 1, 2007, as previously announced, BlueLinx held a teleconference and audio webcast to discuss our financial results from the third fiscal quarter ended September 29, 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 November 1, 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 November 1, 2007, reporting financial results for the third fiscal quarter ended September 29, 2007.
99.2	Webcast conference call slides used during webcast conference call on November 1, 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: November 1, 2007

EXHIBIT INDEX

Exhibit
Number	Exhibit Name
99.1	Press release, dated November 1, 2007, reporting financial results for the third fiscal quarter ended September 29, 2007.
99.2	Webcast conference call slides used during webcast conference call on November 1, 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 THIRD-QUARTER RESULTS
— Net Income of $0.03 Per Share on $1.0 Billion Revenue —
— Gross Margin Stable from Year Ago at 10.1% for Quarter —

ATLANTA — November 1, 2007 — BlueLinx Holdings Inc. (NYSE: BXC), a leading distributor of building products in North America, today reported financial results for the third quarter ended September 29, 2007.

The company’s third-quarter net income totaled $0.9 million, or $0.03 per diluted share, compared with net income of $2.3 million, or $0.07 per share, in the year-ago period. Revenues of $1.02 billion declined 15.6% from $1.20 billion for the same period a year ago. The decline reflects a 14.3% drop in structural product sales and a 16.4% sales decline in specialty products. The sales decline in structural products resulted from unit volume, which fell 14.8% from a year ago, offsetting a year-over-year firming trend in wood-based structural product prices that was driven by higher plywood prices. Specialty product sales decreased largely on unit volume, which declined 14.2%. Overall third-quarter unit volume for the company’s estimated weighted end-use markets fell 12.4% from the prior year, driven by a 24% decline in housing starts and a 10.6% decline in the repair & remodel market.

Gross profit for the third quarter totaled $102.8 million, compared with $120.9 million for the prior-year period, largely reflecting reduced unit volume associated with the ongoing housing starts decline. Gross margin was 10.1%, up slightly from 10.0% a year earlier. Structural product gross margin of 7.6% improved 60 basis points from the same period a year ago, but was down 170 basis points from the previous quarter, when the company was able to leverage a modest but temporary upswing in wood-based structural product prices. Specialty product gross margin of 13.8% was down 20 basis points from both a year ago and from the second quarter, reflecting an increasingly competitive pricing environment.

Total operating expenses of $89.9 million decreased $14.9 million, or 14.2%, from the same period a year ago, reflecting lower payroll costs related to headcount reductions implemented in the third quarter of 2006 and lower commissions and incentives. Operating income for the quarter totaled $12.9 million, compared with $16.1 million a year ago.

For the nine months ended September 29, 2007, net income totaled $6.1 million, or $0.20 per diluted share, on revenues of $3.06 billion, compared with net income of $21.7 million, or $0.71 per share, on revenues of $3.96 billion a year ago. Gross profit for the nine months totaled $325.8 million and gross margin was 10.7%,

BlueLinx Q3’07 Press Release
November 1, 2007 Page 2 of 7

compared with $387.3 million and 9.8%, respectively, a year earlier. Operating expenses declined to $282.5 million from $310.3 million a year ago, primarily reflecting decreases in variable compensation and lower payroll costs related to the headcount reductions, partially offset by normal ongoing operating expenses associated with Austin Hardwoods and expenses associated with business improvement programs.

“Our business environment deteriorated significantly in the third quarter as demand declined sharply, fueled by the well-publicized problems in the credit and housing markets,” said Stephen Macadam, chief executive officer. “Despite this challenging environment, we continued to provide quality service to our customers and suppliers, effectively held our overall gross margin at 10.1%, generated cash from operating activities, paid down debt, and reduced our working capital.

“We now are operating in a deep cyclical housing correction expected by many to extend through 2008,” Macadam said. “The outlook for our industry has turned significantly more bearish than was the case at the end of the second quarter. As a result, we are taking further steps to reduce costs and right size our company to remain competitive throughout this extended downturn. Over the past several weeks we have identified approximately $30 million in annualized cost savings that we expect to achieve through certain initiatives, including headcount reduction. Most of the implementation is complete and we expect full completion by the end of the year. We expect the cost-reduction efforts to result in after-tax charges for severance and outplacement in the range of $2.5 million to $3 million, or $0.08 to $0.10 per diluted share in the fourth quarter.

“Our company is financially positioned to be able to continue executing throughout this housing downturn,” Macadam added. “We diligently managed costs and working capital in the third quarter, ending the period with more than $278 million in excess availability on our revolving credit facility. We expect to continue reducing inventories in the fourth quarter and in 2008 to respond to the lower demand environment, which will generate additional cash. I remain confident that we will continue to execute our long-term business strategy throughout this downturn, and emerge from it well positioned as a leading national distributor of specialty building products.”

Dividend

On October 31, 2007 the BlueLinx Board of Directors declared a $0.125 dividend on the company’s common shares for the quarter ended September 29, 2007. The dividend is payable on December 28, to shareholders of record on December 14, 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# 21169778. 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.

BlueLinx Q3’07 Press Release
November 1, 2007 Page 3 of 7

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 approximately 2,900 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 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 Q3’07 Press Release
November 1, 2007 Page 4 of 7

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

	Quarters Ended					Nine Months Ended
	September 29,		September 30,			September 29,			September 30,
	2007		2006			2007			2006
	(unaudited)		(unaudited)			(unaudited)			(unaudited)
Net sales	$	1,015,888	$	1,203,578		$	3,054,992		$	3,959,134
Cost of sales		913,078		1,082,672			2,729,189			3,571,833
Gross profit		102,810		120,906			325,803			387,301
Operating expenses:
Selling, general, and administrative		84,826		99,615			266,640			295,004
Depreciation and amortization		5,106		5,217			15,840			15,323
Total operating expenses		89,932		104,832			282,480			310,327
Operating income		12,878		16,074			43,323			76,974
Non-operating expenses:
Interest expense		11,352		12,046			33,756			35,505
Charges associated with mortgage refinancing		—		—			—			4,864
Other (income)/expense, net		7		(29	)		(601	)		(17	)
Income before provision for income taxes		1,519		4,057			10,168			36,622
Provision for income taxes		629		1,765			4,033			14,925
Net income		890		2,292			6,135			21,697
Basic weighted average number of common shares outstanding		30,853		30,662			30,834			30,576
Basic net income per share applicable to common stock	$	0.03	$	0.07		$	0.20		$	0.71
Diluted weighted average number of common shares outstanding		30,951		30,782			30,947			30,762
Diluted net income per share applicable to common stock	$	0.03	$	0.07		$	0.20		$	0.71
Dividends declared per share of common stock	$	0.125	$	0.125		$	0.38		$	0.38

BlueLinx Q3’07 Press Release
November 1, 2007 Page 5 of 7

BlueLinx Holdings Inc.
Balance Sheets
in thousands

	September 29,			December 30,
	2007			2006
	(unaudited)
Assets:
Current assets:
Cash	$	25,000		$	27,042
Receivables		371,222			307,543
Inventories		424,522			410,686
Deferred income taxes		9,429			9,024
Other current assets		42,333			44,948
Total current assets		872,506			799,243
Property, plant, and equipment:
Land and land improvements		57,141			56,985
Buildings		97,156			95,814
Machinery and equipment		66,462			61,955
Construction in progress		5,485			2,025
Property, plant, and equipment, at cost		226,244			216,779
Accumulated depreciation		(50,470	)		(38,530	)
Property, plant, and equipment, net		175,774			178,249
Other non-current assets		24,982			26,870
Total assets		1,073,262			1,004,362
Liabilities :
Current liabilities:
Accounts payable	$	224,787		$	195,815
Bank overdrafts		37,346			50,241
Accrued compensation		10,905			8,574
Current maturities of long-term debt		100,147			9,743
Other current liabilities		16,113			14,633
Total current liabilities		389,298			279,006
Noncurrent liabilities:
Long-term debt		480,853			522,719
Deferred income taxes		516			1,101
Other long-term liabilities		14,468			12,137
Total liabilities		885,135			814,963
Shareholders’ Equity:
Common stock		312			309
Additional paid in capital		141,394			138,066
Accumulated other comprehensive income		1,363			412
Retained earnings		45,058			50,612
Total shareholders’ equity		188,127			189,399
Total liabilities and equity	$	1,073,262		$	1,004,362

BlueLinx Q3’07 Press Release
November 1, 2007 Page 6 of 7

BlueLinx Holdings Inc.
Statements of Cash Flows
in thousands

	Nine Months Ended
	September 29,			September 30,
	2007			2006
	(unaudited)			(unaudited)
Cash flows from operating activities:
Net income	$	6,135		$	21,697
Adjustments to reconcile net income to cash used in operations:
Depreciation and amortization		15,840			15,323
Amortization of debt issue costs		1,823			2,018
Charges associated with mortgage refinancing		—			4,864
Deferred income tax benefit		(1,135	)		(1,876	)
Share-based compensation		3,061			2,209
Gain from insurance settlement		(1,698	)		—
Excess tax benefits from share-based compensation arrangements		(41	)		(882	)
Changes in assets and liabilities:
Receivables		(63,679	)		(33,396	)
Inventories		(13,836	)		5,961
Accounts payable		28,972			(74,959	)
Changes in other working capital		5,238			(2,486	)
Other		415			(2,237	)
Net cash used in operating activities		(18,905	)		(63,764	)
Cash flows from investing activities:
Acquisitions, net of cash acquired		—			(9,353	)
Property, plant, and equipment investments		(11,943	)		(7,267	)
Proceeds from sale of assets		4,335			465
Net cash used in investing activities		(7,608	)		(16,155	)
Cash flows from financing activities:
Proceeds from stock options exercised		442			1,744
Excess tax benefits from share-based compensation arrangements		41			882
Net increase (decrease) in revolving credit facility		48,538			(38,342	)
Proceeds from new mortgage		—			295,000
Debt financing costs		—			(6,668	)
Retirement of old mortgage		—			(165,000	)
Prepayment fees associated with old mortgage		—			(2,475	)
Increase (decrease) in bank overdrafts		(12,895	)		6,177
Common dividends paid		(11,689	)		(11,537	)
Other		34			—
Net cash provided by financing activities		24,471			79,781
Decrease in cash		(2,042	)		(138	)
Balance, beginning of period		27,042			24,320
Balance, end of period	$	25,000		$	24,182

BlueLinx Q3’07 Press Release
November 1, 2007 Page 7 of 7

BlueLinx Holdings, Inc.
Reconciliation of Non-GAAP Financial Measures to their GAAP Equivalents
in thousands, except per share data

	Quarters Ended				Nine Months Ended
	September 29,		September		September 29,		September
	2007		30, 2006		2007		30, 2006
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Reconciliation of Income Before Charges and Income Before Charges Per Share:
Net Income	$	890	$	2,292	$	6,135	$	21,697
Reconciling Items:
Write-off of unamortized debt issuance costs		—		—		—		2,828
Termination penalty resulting from prepayment of old mortgage		—		—		—		1,650
Unamortized exit penalty resulting from prepayment of old mortgage		—		—		—		386
Charges associated with mortgage refinancing		—		—		—		4,864
Tax effect of reconciling items at 39.0%		—		—		—		(1,897	)
Adjusted Net Income (1)	$	890	$	2,292	$	6,135	$	24,664
Diluted weighted average number of common shares outstanding:		30,951		30,782		30,947		30,762
Diluted net income per share applicable to common stock	$	0.03	$	0.07	$	0.20	$	0.71
Reconciling Items:
Write-off of unamortized debt issuance costs		—		—		—		0.09
Termination penalty resulting from prepayment of old mortgage		—		—		—		0.05
Exit penalty resulting from prepayment of old mortgage		—		—		—		0.01
Charges associated with mortgage refinancing		—		—		—		0.15
Tax effect of reconciling items at 39.0%		—		—		—		(0.06	)
Diluted adjusted net income per share applicable to common stock (1)	$	0.03	$	0.07	$	0.20	$	0.80

Note (1) — Net income before mortgage refinancing is a non-GAAP performance measure and is not intended to be a performance measure that should be regarded as an alternative to or more meaningful than GAAP net income.

# # #

EX-99.2

Exhibit 99.2

BlueLinx Quarterly Review 3rd 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 November 1, 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 November 1, 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.

3rd Quarter Highlights 3rd Quarter Highlights Housing Starts Declined 24% from the same period last year Declined 24% from the same period last year Prices Prices of key grades of wood-based structural products fell 18.1% from the end of 2Q '07 to the end of 3Q '07 Prices of key grades of wood-based structural products fell 18.1% from the end of 2Q '07 to the end of 3Q '07 Revenue Down 16% to $1.0 billion Specialty down 16%, 45% of Total Revenue, 59% of GM Structural down 14% Down 16% to $1.0 billion Specialty down 16%, 45% of Total Revenue, 59% of GM Structural down 14% Unit Volume Total down 14.5% Specialty down 14.2% Structural down 14.8% Estimated end-use markets down 12.4% Total down 14.5% Specialty down 14.2% Structural down 14.8% Estimated end-use markets down 12.4% Gross Margin Total 10.1% vs. 10.0% in 3Q '06 Specialty 13.8% Structural 7.6% Total 10.1% vs. 10.0% in 3Q '06 Specialty 13.8% Structural 7.6% Net Income $0.9 million / $0.03 per share vs. $2.3 million / $0.07 per share $0.9 million / $0.03 per share vs. $2.3 million / $0.07 per share Quarterly Highlights

Introduction Steve Macadam Chief Executive Officer

Long term strategic objectives: Profitably grow specialty revenues to 60+% of total sales Profitably grow structural while reducing exposure to volatility Outgrow the market over the long term 3rd Quarter Focus Tightly manage costs and working capital Strengthen customer and supplier relationships Selectively invest for the future Introduction

Lynn Wentworth SVP, Chief Financial Officer & Treasurer Financial Review

Quarterly Revenue Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Specialty 539.5 580 603.3 553.5 460 456.5 500.8 462.9 Structural 815.2 813.4 798.7 666.6 509.2 518.9 598.1 571.4 Other -25.4 -16.8 -23 -16.6 -28.9 -18.3 -16.9 -18.4 Specialty Unit Volume (14.2%) YOY $187.7 or 15.6% Structural Unit Volume (14.8%) Prices (1.0%) ($187.7) 3Q '07 Specialty 462.9 Structural 571.4 3Q '06 3Q '07 3Q '06 Specialty 553.5 Structural 666.7 Vs. Year Ago Revenue down 15.6% Specialty sales down 16%, unit volume down 14% Structural sales down 14%, unit volume down 15% Specialty product sales = 45% of total sales % by Product

Quarterly Gross Margin Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Speciatly 76.8 80.4 86.9 77.5 63.5 63.6 70 63.8 Structural 67.8 55.8 55.7 46.8 35.7 44.9 55.9 43.7 Other -4.3 -6.2 -6.2 -3.4 -6.7 -4.8 -6.7 -4.7 BXC generated $102.8 million in gross profit for the quarter, equating to 10.1% gross margin Gross Margin improvement driven by: Effective pricing management for structural products Channel mix $119.2 YOY $18.1 or 15.0% 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 GM % 0.094 0.099 0.1 0.098 0.108 0.11 0.101 YOY 10 bp $102.8 $120.9 $103.8 $92.5 Gross Margin 3Q '06 3Q '07 Specialty $77.5 $63.8 14.0% 13.8% Structural $46.8 $43.7 7.0% 7.6% Other ($3.4) ($4.7) Total $120.9 $102.8 10.0% 10.1% Spec GM % 14.0% 13.8% 13.9% 14.0% 13.8% Struc GM % 7.0% 7.0% 8.7% 9.3% 7.6%

Quarterly Operating Expense Operating Expense 1Q '06 102.3 2Q '06 103.2 3Q '06 104.8 4Q '06 91.9 1Q '07 93.9 2Q '07 98.7 3Q '07 89.9 YOY $14.9 or 14.2% BXC continued to tightly manage operating costs Lowest operating costs since becoming a public company in December 2004

Quarterly Net Income and EPS 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 Net Income 9.8 9.6 2.3 -5.9 -0.2 5.4 0.9 EPS 0.32 0.31 0.07 -0.19 -0.01 0.18 0.03

YTD Results revenue YTD '06 3959.1 YTD '07 3055 YOY $904.1 or 22.8% YTD '06 YTD '07 GM % 0.098 0.107 YOY 90 bp Operating Expense YTD '06 310.3 YTD '07 282.5 YOY $27.8 or 9.0% YTD '06 YTD '07 Net Income 21.7 6.1 EPS 0.71 0.2

Cash Flows Three Months Ended September 29, 2007 (in millions) BXC generated $45.4 million in operating cash flow for the quarter $0.2

Inventory Analysis BXC managed inventory to the demand environment and to support strategic initiatives 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 Inventory 501.2 532.2 471.2 410.7 465.6 470.2 424.5 YOY $46.7 or 9.9% Sequential Quarter Variance Year Ago Quarter Variance Specialty -20.7 -33 Structural -12 -6.1 Other -13 -7.6 Other includes in-transit inventory accruals, discounts, allowances, reserves, and other miscellaneous items ($45.7) ($46.7)

Working Capital 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 3Q '07 Average Working Capital 606.7 664.8 666.9 564 565.118 626.929 589.122 Revenue 1376.6 1379 1203.5 940.3 957.114 1081.99 1015.887 COGS 1246.7 1242.5 1082.7 847.7 853.359 962.752 913.085 Working capital turn days remain at 52 vs. 2Q '07 and 50 same period last year Inventory turn days remain above desired levels and are being actively managed across the company Accounts Receivable and Accounts Payable in line with historical turn day levels Turn days 50 54 53 52 52

Summary 3rd Quarter Managed margins well in challenging environment 10.1% gross margin vs. 10.0% for the same period a year ago Aggressively managed costs 14.2%, $14.9 million decline in operating expenses from a year ago Inventory tightly managed to balance specialty growth objective with overall demand environment Additional $30 million in annualized costs targeted for reduction by year end Making necessary investments to support specialty growth strategy Inventory management and forecasting, financial budgeting and reporting, order tracking and visibility, and sales training Flexible debt allows continued execution of business plan in extended downturn Excess availability of $278 million at September 29, 2007 Revolving credit agreement secured by inventory and receivables Mortgage secured by company owned real estate

George Judd President & Chief Operating Officer Operations Review

Unit Volume Growth Unit Volume Growth

Specialty Unit Growth vs. End Use Markets Specialty Unit Growth vs. End Use Markets

Key Initiatives To support our strategic objectives: Improve gross margin by over time, increasing mix of specialty and mitigating volatility of structural Invest to support specialty growth Increase presence in under represented business areas, particularly industrials Expand relationships with existing specialty product vendors Disciplined approach to acquisitions

Steve Macadam Summary Remarks Demand environment deteriorating further Focused on: Aggressively managing costs Defending our core business Serving our customers and suppliers Selective pursuit of growth opportunities

Appendix TOPIC PAGE Revenues by Quarter 22 Unit Volume by Quarter 23 End-Use Market by Quarter 24 Gross Margin by Quarter 25 Profit and Loss Statement by Quarter 26 Inventory by Quarter 27 Gross Margin % Analysis 28 Channel Mix Analysis 29 Structural Product Price Trends 30

Revenues by Quarter Revenues by Quarter

Unit Volume by Quarter Unit Volume by Quarter

Source: Data from Resource Information Systems, Inc., or RISI, updated as of October, 2007 weighted using management's estimates. End-Use Market by Quarter End-Use Market 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 October 26, 2007 Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend Structural Products Price Trend