Fourth quarter 2012 sales increased 49.3 percent to $287.6 million.

Adjusted EBITDA was $3.4 million for the fourth quarter and $6.4 million for fiscal year 2012. This compares to Adjusted EBITDA of ($3.3) million for the fourth quarter and ($15.0) million for fiscal year 2011.

The company amended its term loan, allowing it to enhance liquidity by $93 million.

Sales were $287.6 million compared to $192.7 million last year, an improvement of $94.9 million or 49.3 percent. We estimate sales increased approximately 38 percent due to increased volume and 11 percent due to price.

Gross margin percentage was 20.2 percent, down from 20.4 percent, a 0.2 percentage point decrease. Our gross margin decreased 1.2 percentage points largely due to commodity lumber inflation during the quarter which was offset by a 1.0 percentage point gross margin improvement due to increased sales volume. On a sequential quarter basis gross margin percentage improved from 19.8 percent to 20.2 percent.

SG&A expenses increased $10.7 million, or 22.8 percent, in the current quarter. We recorded proceeds of $0.6 million from a litigation settlement as a reduction to SG&A expenses during the quarter. As a percentage of sales, SG&A expense decreased from 24.4 percent in the fourth quarter of 2011 to 20.1 percent in the current quarter. Our salaries and benefits expense, excluding stock compensation expense, was $36.8 million, or 12.8 percent of sales, in the current quarter compared to $27.1 million, or 14.1 percent of sales, in the fourth quarter of 2011. Delivery expense increased $1.3 million, or 13.8 percent, as a result of increased sales volume.

Interest expense was $11.0 million in the current quarter, an increase of $2.9 million from the fourth quarter of 2011, primarily due to the issuance of our term loan in December 2011.

We recorded $0.2 million of income tax expense in the fourth quarter of 2012, compared to $0.3 million in the fourth quarter of 2011. We recorded an after-tax, non-cash valuation allowance of $3.6 million and $6.5 million in the fourth quarters of 2012 and 2011, respectively, related to our net deferred tax assets. Absent the valuation allowance, the effective tax rate would have been 31.3 percent and 38.0 percent in the fourth quarters of 2012 and 2011, respectively. As of the end of the current quarter, the company’s gross federal income tax net operating loss available for carry-forward was approximately $237 million.

Loss from continuing operations was $11.0 million, or $0.12 loss per diluted share, compared to $16.6 million, or $0.18 loss per diluted share, in the same quarter last year. Excluding facility closure costs, the litigation settlement, the fair value adjustment for stock warrants and the tax valuation allowance, our loss from continuing operations was $0.08 per diluted share for the current quarter. For the fourth quarter of 2011, loss from continuing operations per diluted share was $0.09, when excluding facility closure costs, debt issuance cost write-offs, the fair value adjustment for stock warrants and the tax valuation allowance. See reconciliation attached.

Loss from discontinued operations was $1.0 million, or $0.01 loss per diluted share, compared to a loss of $0.1 million, or $0.00 per diluted share, for the fourth quarter of 2011. Loss from discontinued operations in the current quarter was primarily related to an adjustment to record held for sale real estate at its fair market value.

Net loss for the fourth quarter of 2012 was $12.0 million, or $0.13 loss per diluted share, compared to $16.7 million, or $0.18 loss per diluted share, in the fourth quarter of 2011.

Diluted weighted average shares outstanding were 95.6 million in the fourth quarter of 2012 compared to 95.0 million in the same quarter of 2011.

Adjusted EBITDA was $3.4 million in the current quarter, compared to an Adjusted EBITDA loss of $3.3 million in the same quarter last year. See reconciliation attached.

On December 17, 2012, we amended our $160.0 million first-lien term loan agreement to enhance our liquidity position to support both current and anticipated increases in sales volume. Terms of the amendment included increasing the principal amount by $65.0 million, reducing the minimum cash requirement from $35.0 million to $15.0 million, adding a new $15.0 million LC facility, and increasing the minimum specified collateral value to $225.0 million, contingent upon maintaining certain levels of qualified cash. These amendments to our term loan increased our liquidity by approximately $80 million.

Liquidity at December 31, 2012 was $116.4 million, which included $131.4 million in cash, reduced by the $15.0 million minimum cash requirement in our amended term loan.

In addition to the $131.4 million of cash, the company had $14.0 million in restricted cash at December 31, 2012, of which $1.9 million was included in long-term assets. Restricted cash consists of approximately $13 million used to collateralize outstanding LC’s and $0.9 million used as collateral for other casualty insurance obligations.

In conjunction with the term loan amendment, subsequent to year-end we were able to eliminate the cash collateral requirement for our outstanding LC’s, thus increasing our liquidity by an additional $13.0 million. We also amended our existing stand-alone $20.0 million LC facility down to $10.0 million. Had these terms been in place at December 31, 2012, our unrestricted cash would have been $144.4 million and our net liquidity would have been $129.4 million.

Capital expenditures were $1.2 million for the current quarter, compared to $2.1 million for the fourth quarter of 2011.

Sales

Cost of sales

Gross margin

Selling, general and administrative expenses (includes stock-based compensation expense of $956 and $914 for the three months ended in 2012 and 2011, respectively, and $3,628 and $4,559 for the fiscal year ended in 2012 and 2011, respectively.)

Asset impairments

Facility closure costs

Income (loss) from operations

Interest expense, net

Loss from continuing operations before income taxes

Income tax expense

Loss from continuing operations

Loss from discontinued operations (net of income tax expense of $0 in 2012 and 2011, respectively)

Net loss

Basic and diluted net loss per share:

Loss from continuing operations

Loss from discontinued operations

Net loss

Weighted average common shares:

Basic and diluted

Prefabricated components

Windows & doors

Lumber & lumber sheet goods

Millwork

Other building products & services

Total sales

Prefabricated components

Windows & doors

Lumber & lumber sheet goods

Millwork

Other building products & services

Total sales

ASSETS

Current assets:

Cash and cash equivalents

Restricted cash

Accounts receivable, less allowance of $2,831 and $2,138 at December 31, 2012 and 2011, respectively

Inventories

Other current assets

Total current assets

Property, plant and equipment, net

Goodwill

Other assets, net

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

Accrued liabilities

Current maturities of long-term debt

Total current liabilities

Long-term debt, net of current maturities

Other long-term liabilities

Total liabilities

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding

Common stock, $0.01 par value, 200,000 shares authorized; 96,916 and 96,806 shares issued and outstanding at December 31, 2012 and 2011, respectively

Additional paid-in capital

Accumulated deficit

Total stockholders’ equity

Total liabilities and stockholders’ equity

Cash flows from operating activities:

Net loss

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

Asset impairments

Amortization of deferred loan costs

Amortization of debt discount

Fair value adjustment of stock warrants

Deferred income taxes

Bad debt expense

Net non-cash expense from discontinued operations

Stock compensation expense

Net gain on sale of assets

Changes in assets and liabilities:

Receivables

Inventories

Other current assets

Other assets and liabilities

Accounts payable

Accrued liabilities

Net cash used in operating activities

Cash flows from investing activities:

Purchases of property, plant and equipment

Proceeds from sale of property, plant and equipment

Decrease (Increase) in restricted cash

Net cash used in investing activities

Cash flows from financing activities:

Payments under revolving credit facility

Proceeds from issuance of long term debt

Payments of long-term debt and other loans

Deferred loan costs

Exercise of stock options

Repurchase of common stock

Net cash provided by financing activities

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Detail of Interest Expense:

Term loan

Floating rate notes

Credit facility

Change in fair value of stock warrants *

Amortization of debt discount *

Amortization of deferred loan costs *

Other

Interest expense, net

Reconciliation to Adjusted EBITDA:

Net loss

Reconciling items:

Depreciation and amortization expense

Interest expense, net

Income tax expense

Loss from discontinued operations, net of tax

Facility closure costs

Litigation settlement proceeds

Stock compensation expense

Other

Adjusted EBITDA

Adjusted EBITDA as percentage of sales

Reconciliation to Adjusted loss from continuing operations:

Loss from continuing operations

Reconciling items:

Facility closure costs

Litigation settlement proceeds

Debt issuance cost write-offs

Warrant fair value adjustment

Tax valuation allowance

Adjusted loss from continuing operations

Weighted average diluted shares outstanding

Adjusted loss from continuing operations per diluted share

Reconciliation to Adjusted loss from continuing operations:

Loss from continuing operations

Reconciling items:

Facility closure costs

Litigation settlement proceeds

Debt issuance cost write-offs

Warrant fair value adjustment

Tax valuation allowance

Adjusted loss from continuing operations

Weighted average diluted shares outstanding

Adjusted loss from continuing operations per diluted share