Second quarter 2013 sales increased 46.4 percent to $398.1 million compared to the second quarter of 2012.

Operating income was $13.2 million, up over $14 million when compared to an operating loss of ($1.4) million for the second quarter of 2012.

Adjusted EBITDA was $16.7 million, a $14.6 million improvement compared to Adjusted EBITDA of $2.1 million for the second quarter of 2012.

The company completed a $350 million senior secured notes offering in May 2013, lowering its annual cash interest by approximately $16 million on a go-forward basis.

The company also entered into a new $175 million revolving credit facility providing incremental liquidity for the continuing housing market recovery.

As a result of the refinancing, the company improved liquidity by approximately $67 million. Total liquidity as of June 30, 2013 was $170.3 million.

Sales were $398.1 million compared to $271.9 million, an increase of $126.2 million or 46.4 percent. We estimate sales increased 28.9 percent due to increased volume and 17.5 percent due to price.

Gross margin percentage was 20.7 percent, up from 19.7 percent. Our gross margin increased 0.6 percentage points due to increased sales volume, with the remaining 0.4 percentage points coming from price and sales mix.

Selling, general and administrative (“SG&A”) expenses increased $14.1 million, or 25.6 percent. As a percentage of sales, SG&A expense decreased to 17.3 percent compared to 20.2 percent. Our salaries and benefits expense, excluding stock compensation expense, was $44.0 million, or 11.0 percent of sales, compared to $34.0 million, or 12.5 percent of sales. Delivery expense increased $2.0 million and other general administrative expense increased $1.4 million, both a result of increased sales volume.

Interest expense was $61.1 million, an increase of $50.6 million. The increase relates primarily to our recent refinancing transaction and includes $6.8 million of unamortized debt discount and $2.1 million of debt issuance cost write-offs in the current quarter, as well as a $39.5 million prepayment premium related to the early termination of our term loan.

We recorded $0.4 million of income tax expense compared to $0.1 million. We recorded an after-tax, non-cash valuation allowance of $17.0 million and $4.3 million in the second quarters of 2013 and 2012, respectively, related to our net deferred tax assets. Absent the valuation allowance, the effective tax rate would have been 34.6 percent and 34.9 percent in the second quarters of 2013 and 2012, respectively. As of June 30, 2013, our gross federal income tax net operating loss available for carry-forward was approximately $295 million.

Loss from continuing operations was $48.3 million, or $0.50 loss per diluted share, compared to $12.0 million, or $0.13 loss per diluted share. Excluding the refinancing costs, the fair value adjustment for stock warrants and the tax valuation allowance, our income from continuing operations was $0.5 million, or $0.01 per diluted share, for the current year quarter. Excluding the fair value adjustment for stock warrants and the tax valuation allowance, our loss from continuing operations was $7.1 million, or $0.07 per diluted share, for the second quarter of 2012. See reconciliation attached.

Net loss was $48.2 million, or $0.50 loss per diluted share, compared to $12.1 million, or $0.13 loss per diluted share.

Diluted weighted average shares outstanding were 96.3 million compared to 95.4 million.

Adjusted EBITDA was $16.7 million compared to $2.1 million. See reconciliation attached.

In May 2013, we completed a Rule 144A offering of $350 million aggregate principal amount of 7.625% senior secured notes due 2021. At the same time, we entered into a new 5-year $175 million revolving credit facility led by SunTrust Bank. We used the proceeds from the offering, together with cash on hand, to redeem our 2016 notes, pay off our outstanding term loan, including the prepayment premium, and to pay fees and expenses related to the transaction.

Total liquidity at June 30, 2013 was approximately $170 million, which included $25.5 million in available cash and $162.3 million of borrowing availability under our new revolver, reduced by a $17.5 million minimum excess availability requirement in our revolver.

Cash used for the second quarter of 2013 was $92.2 million. Of the $92.2 million, $53.7 million was cash paid for refinancing costs, $27.4 million was due to working capital build during the quarter and $14.7 million was net cash used to retire long-term debt. Cash used for the second quarter of 2012 was $24.5 million, with $15.4 million related to working capital build.

Capital expenditures were $3.6 million for the second quarter of 2013, compared to $2.2 million for the same quarter of 2012.

Sales

Cost of sales

Gross margin

Selling, general and administrative expenses (includes stock-based compensation expense of $984 and $922 for the three months ended in 2013 and 2012, respectively, and $2,319 and $1,725 for the six 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

Income (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

Income (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 $3,692 and $2,831 at June 30, 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; 97,189 and 96,916 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively

Additional paid-in capital

Accumulated deficit

Total stockholders’ (deficit) 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 and write-off of deferred loan costs

Amortization and write-off of debt discount

Fair value adjustment of stock warrants

Deferred income taxes

Bad debt expense

Net non-cash income 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 in restricted cash

Net cash provided by (used in) investing activities

Cash flows from financing activities:

Borrowings under revolving credit facility

Payments under revolving credit facility

Proceeds from issuance of long term debt

Payments of long-term debt and other loans

Payments of deferred loan costs

Payment of recapitalization 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

Prepayment Penalty—Term Loan

2021 notes

2016 notes

Credit facility

Change in fair value of stock warrants (1)

Amortization of debt discount (1) (2)

Amortization of deferred loan costs (1) (3)

Other

Interest expense, net

Reconciliation to Adjusted EBITDA:

Net loss

Reconciling items:

Depreciation and amortization expense

Interest expense, net

Income tax expense

Income (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:

Prepayment premium

Debt issuance cost write-offs

Debt discount write-offs

Warrant fair value adjustment

Tax valuation allowance

Adjusted income (loss) from continuing operations

Weighted average diluted shares outstanding

Adjusted income (loss) from continuing operations per diluted share