1301787--3/6/2009--BlueLinx_Holdings

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{cost, operation, labor}

{provision, law, control}

{tax, income, asset}

{competitive, industry, competition}

{customer, product, revenue}

{stock, price, operating}

{cost, contract, operation}

{capital, credit, financial}

{product, liability, claim}

Further disruptions in the capital and credit markets may impact the availability of credit and general business conditions. Our cash flows and capital resources may be insufficient to make required payments on our substantial indebtedness and future indebtedness. The instruments governing our indebtedness contain various covenants limiting the discretion of our management in operating our business. The payment of dividends has been suspended, and resumption is dependant on business conditions, among other factors; the instruments governing our indebtedness contain various covenants that may limit our ability to pay dividends. We depend upon a single supplier, Georgia-Pacific for a significant percentage of our products. Our industry is highly fragmented and competitive. If we are unable to compete effectively, our net sales and operating results will be reduced. Integrating acquisitions may be time-consuming and create costs that could reduce our operating results and cash flows. A significant percentage of our employees are unionized. Wage increases or work stoppages by our unionized employees may reduce our results of operations. We may be unable to recover or continue to recognize our deferred income tax assets which would increase our tax expense and reduce our operating results. Increases in the cost of employee benefits, such as pension and other postretirement benefits, could impact our financial results and cash flow. Federal and state transportation regulations could impose substantial costs on us which would reduce our net income. Environmental laws impose risks and costs on us. We may incur substantial costs relating to Georgia-Pacific s product liability related claims. Affiliates of Cerberus control us and may have conflicts of interest with other stockholders in the future. Even if Cerberus no longer controls us in the future, certain provisions of our charter documents and agreements and Delaware law could discourage, delay or prevent a merger or acquisition at a premium price.

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1301787--3/6/2009--BlueLinx_Holdings_Inc.