A discussion of factors that may affect future results is provided in the company’s filings with the Securities and Exchange Commission. BlueLinx undertakes no obligation to publicly update or revise any forward-looking statements contained in these presentations based on new information or otherwise, except as required by law.With that requirement completed, I’d like to remind our listeners that we have posted slides on our website. We will be referring to these slides during this call and we encourage you to use them during our remarks. Additionally, the slide package contains an appendix of supplementary tables available for your review. Now, let me turn the call over to our Chief Executive Officer, George Judd. George R. Judd Good morning, thank you for joining us today. Before beginning our remarks regarding the second quarter 2011 results, I’d like comment on our press release issued July 25, 2011 announcing the expiration of the subscription period for the previously announced $60 million rights offering. The rights offering was fully subscribed and, as a result, on July 28, BlueLinx received net proceeds of approximately $58.5 million from the offering. The newly subscribed shares were issued on July 28, 2011, resulting in approximately 61.8 million total shares outstanding. Joining this prepared remarks Douglas Goforth our Chief Financial Officer will provide a pro forma overview of the financial impact of the completed rights offering. We thank all of our shareholders for there support while we are still receiving information on our shareholder population post rights offering, service continues to hold approximately 54.5% the same percentage of shares help prior to the rights offering. Now I’ll turn the call over to Doug to begin the review of the second quarter results. H. Douglas Goforth Thank you George and good morning everyone. I’ll start with an overview of the quarterly results and George will provide an operations review of the quarter and close with the final perspective. For those of you following along with the slides posted on the Investor Relations section in the BlueLinx website, I will begin with slide 5.
Overall, sales for the second quarter ended July 2, totaled $500.8 million, down 7.4% or approximately $40 million from the second quarter of 2010. Specialty sales increased 10.7% year-over-year, reflecting a 16.5% increase in unit volume, partially offset by a 5.8% decline in product selling prices.Structural product sales decreased 27.1% from the same period last year. This decrease was driven by an 18.9% decrease in volume and an 8.2% year-over-year decrease in product selling prices as prices for wood-based structural products price during the quarter. Specialty products comprised 62% of total sales up from 52% in the second quarter of 2010 as we continued to focus on higher margin products and services. Overall, unit volume declined 0.5% compared to the year ago period. Housing continues to underperform, actual total US housing starts decline 4% for the second quarter of 2011, compared to the same period last year with single-family starts, which represents our largest share down 13.1%. BlueLinx generated approximately $58 million in gross profit for the quarter. Overall, gross margin was 11.5%, which is down 0.4% from the prior year quarter. Structural margins of 8.6% were down compare to the prior year quarter reflecting competitive pricing pressures. Specialty gross margin for the quarter was 14.4% compared with 15.5% a year ago. Primarily result of the channel shift from the warehouse channel and lower prices which were temporarily inflated in the year ago period due to the Chilean earthquake. Total operating expenses decreased to $59.4 million from $60.5 million a year ago as we continue to tightly manage our cost structure relative to business conditions. The decline in operating expenses primarily reflects decreases in variable compensation depreciation expenses and other items partially offset by a $1.1 million increase in fuel expenses. Read the rest of this transcript for free on seekingalpha.com