Frank H. Boykin
I would like to remind everyone that our press release and statements we make on this call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties including, but not limited to, those set forth in our press release and our periodic filings with the Securities and Exchange Commission. This call may include discussion of non-GAAP numbers. You can refer to our Form 8-K and press release at the Investor Information section of our website for a reconciliation of any non-GAAP to GAAP amounts. Jeff?
Jeffrey S. Lorberbaum
Thank you, Frank. Our second quarter earnings per share were $1.06 as reported, or $1.14, an increase of 20% over 2011, excluding restructuring charges. Selling prices offsetting raw material inflation, productivity gains, product mix improvements and lower interest costs all contributed to our results.Sales increased 2% on a constant exchange rate, with commercial sales continuing to outpace residential sales. We continue to control SG&A costs while increasing new product investments across all businesses.During the quarter, we generated adjusted EBITDA of $187 million, free cash flow of $96 million and paid off $336 million of senior notes. U.S. commercial activity continues to expand as it has for some time.The residential multifamily category is improving with the rising occupancy and additional construction projects. Residential new construction is rebounding from a low level as reflected by the National Association of Home Builders confidence index reaching its highest level in 5 years.Residential remodeling continues to lag due to concerns by consumers about the general economy and compressed housing prices. As the second period progressed, the flooring industry slowed along with retail in general.Frank, could you give the financial report, please?Frank H. BoykinYes. Thank you, Jeff. Good morning, everyone. Net sales for the quarter were $1,470,000,000, down 1% as reported or, as Jeff pointed out, up 2% on a constant exchange rate basis. Higher prices and better mix offset lower volumes in the quarter. Overall, commercial and sales outperformed residential.
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