ATLANTA, Dec. 23, 2008 (GLOBE NEWSWIRE) -- BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today announced its Board of Directors has authorized a program to repurchase up to $10 million of the Company's common stock over the next two years.
Under the terms of the repurchase program, the Company may repurchase shares in open market purchases or through privately negotiated transactions. The Company will use cash on hand to fund repurchases of its common stock.
The share repurchase program was approved by the Board of Directors as part of its ongoing consideration of alternative ways, including payment of dividends, share repurchases and/or recapitalizations, to leverage the Company's strong cash position. The Board of Directors plans to continue this review in light of, among other things, the market value of the Company's common stock, the Company's cash position, other uses of and need for liquidity, and the Company's overall financial position.
"We believe the Company's shares, particularly in light of recent market developments, are undervalued and represent an attractive investment opportunity, and the repurchase of our shares is a good use of our corporate funds and is in the best interests of our shareholders," said George Judd, president and chief executive officer. "This repurchase program further demonstrates the confidence that our Board of Directors and senior management have in the future of BlueLinx and our belief that we are well positioned to continue executing throughout this unprecedented housing downturn and to take advantage of the eventual recovery of the housing market."
The Company's majority shareholder, Cerberus ABP Investor LLC, has indicated that it does not currently intend to sell shares to the Company as part of the repurchase program. The timing and amount of any repurchases will depend on the Company's evaluation of a number of factors, including the Company's future performance and available cash resources, prevailing market prices of the Company's common stock, general business considerations and other factors. Stock repurchases under the program will be conducted in compliance with the safe harbor provisions of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The program may be extended, modified, suspended or discontinued at any time, at the Company's discretion.
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 2,100 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 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 our 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; activities of competitors; changes in significant operating expenses; changes in the availability of capital including the availability of residential mortgages; 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 29, 2007 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, changes in expectation or otherwise, except as required by law.