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A discussion of factors that may affect future result 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 view them during our remarks. Additionally, the slide package contains an appendix of supplementary tables available for your review.Now, I would like to turn the call over to our Chief Financial Officer, Doug Goforth. Doug Goforth Thanks, Maryon. Good morning everyone and thank you for joining us today. I will start our review in our some the highlights for the quarter followed by a more in-depth review of the financial statements. Today, we reported a GAAP net loss of $3.7 million or $0.06 per diluted share on revenue of $517 million. That compares to a GAAP net loss of $9.8 million or $0.31 per diluted share on revenue of $500.8 million in the second quarter of last year. As a reminder, we successfully completed a $60 million rights offerings which resulted in the issuance of approximately 28.6 million additional shares in the third quarter of 2011. Total diluted weighted average number of common shares outstanding at the end of the second quarter of 2012 was $60.1 million compared to $31.1 million diluted weighted average common shares in the year-ago period. During the quarter we used approximately $22 million in cash for operations as second quarter working capital requirements increased approximately $31 million consistent with our cyclical business and the improving sales environment. We had approximately $105 million in excess availability at the end of the quarter with a cash balance of $5.2 million. Our net debt was $427 million, down approximately $3 million from a year ago. Now, for a closer look at the quarterly financial results. For those of you following along with the slides posted on the Investor Relation section of the BlueLinx website, I will begin with slide 5.
Overall sales for the second quarter ended June 30 totaled $517 million up 3.2% or $16.2 million from the second quarter of 2011. The increase reflects a 0.7% decrease in specialty product sales and a 12% increase in structural product sales from the year-ago period. Second quarter sales mix was impacted by increased structural product pricing compared to the year-ago period , the structural sales accounting for 41% and specialty sales accounting for 59% of total revenue during the quarter. The increase in total revenue is attributable to increased underlying product prices primarily in the structural product category.Overall unit volume fell 1.3% compared to the same period a year ago and specialty unit volume decreased 2.3% and structural unit volume increased slightly during the quarter. New residential construction indicators continue to trend positively for the quarter. Actual total U.S. housing stocks increased 28.9% for the second quarter 2012 compared to the same period last year with single family stocks which represent our largest share, up 23.3%. BlueLinx generated approximately 63 million in gross profit for the quarter, up 9.6% from approximately 58 million in the year-ago periods. Overall gross margin was 12.2% for the quarter, up from last year’s 11.5% due to our continued focus on margin expansions, rising product prices for many other products we distribute including key grades of wood based products, and growth in our other warehouse business. Total operating expenses of $59.3 million for the second quarter were flat compared to the same period a year ago and included $0.5 million gains from property insurance settlement received in 2012. Excluding the insurance gain, operating expense increased approximately $0.4 million compared to the same period a year ago, even though unit volume through the warehouse channel increased 8.4% and accounted for 100% of the overall revenue increase. Our performance in this area demonstrates our ability to manage operating expenses as our business grows. Read the rest of this transcript for free on seekingalpha.com