First quarter 2013 sales increased 45.7 percent to $319.7 million, when compared to first quarter 2012.

Adjusted EBITDA for the current quarter was $5.4 million, a $7.5 million improvement when compared to an Adjusted EBITDA loss of ($2.1) million for the first quarter of 2012.

Sales were $319.7 million compared to $219.4 million last year, an increase of $100.3 million or 45.7 percent. We estimate sales increased 29.7 percent due to increased volume and 16.0 percent due to price.

Gross margin percentage was 19.5 percent in the current quarter, down from 20.6 percent in the same quarter last year. Our gross margin decreased 1.8 percentage points largely due to commodity lumber inflation during the quarter, which was offset by a 0.7 percentage point gross margin improvement due to increased sales volume.

Selling, general and administrative (“SG&A”) expenses increased $10.2 million, or 20.2 percent, in the current quarter. As a percentage of sales, SG&A expense decreased to 19.1 percent in the current quarter, as compared to 23.2 percent in the first quarter of 2012. Our salaries and benefits expense, excluding stock compensation expense, was $37.7 million, or 11.8 percent of sales, in the current quarter compared to $31.1 million, or 14.2 percent of sales, in the first quarter of 2012. Delivery expense increased $1.4 million and other general administrative expense increased $1.2 million, both a result of increased sales volume.

Interest expense was $12.5 million in the current quarter, a decrease of $0.6 million from the first quarter of 2012. The decrease was primarily related to a $2.7 million reduction in the non-cash, fair value adjustment related to stock warrants issued in connection with our term loan, offset by interest on the additional term loan principal borrowed in December 2012.

We recorded $0.3 million of income tax expense in the first quarter of 2013, compared to $0.2 million in the first quarter of 2012. We recorded an after-tax, non-cash valuation allowance of $4.4 million and $7.0 million in the first quarters of 2013 and 2012, respectively, related to our net deferred tax assets. Absent the valuation allowance, the effective tax rate would have been 36.3 percent in both the first quarter of 2013 and 2012. As of the end of the current quarter, the company’s gross federal income tax net operating loss available for carry-forward was approximately $245 million.

Loss from continuing operations was $11.6 million, or $0.12 loss per diluted share, compared to $19.1 million, or $0.20 loss per diluted share, in the same quarter last year. Excluding the fair value adjustment for stock warrants and the tax valuation allowance, our loss from continuing operations was $0.07 per diluted share for the current quarter compared to a $0.09 loss per diluted share for the first quarter of 2012. See reconciliation attached.

Net loss for the first quarter of 2013 was $11.8 million, or $0.12 loss per diluted share, compared to $19.2 million, or $0.20 loss per diluted share, in the first quarter of 2012.

Diluted weighted average shares outstanding were 96.0 million in the first quarter of 2013 compared to 95.3 million in the same quarter of 2012.

Adjusted EBITDA was $5.4 million in the current quarter, compared to an Adjusted EBITDA loss of $2.1 million in the same quarter last year. See reconciliation attached.

Liquidity at March 31, 2013 was $102.7 million, which included $117.7 million in cash, reduced by the $15.0 million minimum cash requirement in our amended term loan.

Cash usage for the current quarter was $26.8 million, of which $18.9 million was due to a build in working capital related to our higher sales volumes. The remainder of our cash usage related to $1.0 million of capital expenditures and $10.9 million of cash interest, offset somewhat by cash provided by operations.

During the current quarter, we amended and reduced our existing $20.0 million stand-alone letter of credit (“LC”) facility to $10.0 million. In addition, we transferred the $12.4 million of LC’s outstanding under the stand-alone facility to our new $15.0 million LC sub-facility. This transfer eliminated the cash collateral requirement for our outstanding LC’s and thus increased our overall liquidity at the time by $13.0 million. As of March 31, 2013, we have $12.6 million of LC’s outstanding under our sub-facility and nothing outstanding under our stand-alone facility.

Operating cash flow was negative $25.2 million for the current quarter, compared to negative $14.9 million for the first quarter of 2012, the difference primarily attributable to $16.5 million more in working capital build during the first quarter of 2013.

Capital expenditures were $1.0 million for the first quarter of 2013, compared to $1.7 million for the first quarter of 2012.

Sales

Cost of sales

Gross margin

Selling, general and administrative expenses (includes stock-based compensation expense of $1,335 and $803 for the three months ended in 2013 and 2012, respectively)

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 2013 and 2012, 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

ASSETS

Current assets:

Cash and cash equivalents

Restricted cash

Accounts receivable, less allowance of $3,108 and $2,831 at March 31, 2013 and December 31, 2012, 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; 96,900 and 96,916 shares issued and outstanding at March 31, 2013 and December 31, 2012, 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

Amortization of deferred loan costs

Amortization of debt discount

Fair value adjustment of stock warrants

Deferred income taxes

Bad debt expense

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 in restricted cash

Net cash provided by (used in) investing activities

Cash flows from financing activities:

Payments of long-term debt and other loans

Deferred loan costs

Exercise of stock options

Repurchase of common stock

Net cash used in 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

Stock compensation expense

Other

Adjusted EBITDA

Reconciliation to Adjusted loss from continuing operations:

Loss from continuing operations

Reconciling items:

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