“SG&A expenses were 7.4% of net sales, a 20-basis-point increase compared with the prior-year quarter. On an absolute basis, SG&A expenses increased $2.5 million, largely related to costs associated with our planned information systems upgrade.
“Specialty Products continued its strong performance and generated second-quarter net sales of $56.6 million, reflecting growth in both the dolomitic lime and chemicals product lines. Sales of dolomitic lime include the contribution from the Woodville kiln that became operational during the fourth quarter of 2012, partially offset by the impact of a 4% decrease in steel production compared with the prior-year quarter. Earnings from operations of $18.7 million were up 7% over the prior-year quarter, but were negatively affected by higher natural gas costs.
LIQUIDITY AND CAPITAL RESOURCES
“Cash provided by operating activities for the first six months of 2013 was $48.5 million compared with $27.7 million in 2012. The improvement is attributable to the absence of significant business development costs incurred 2012.“At June 30, 2013, our ratio of consolidated debt to consolidated EBITDA, as defined, for the trailing twelve months was 3.17 times, in compliance with our covenant. The current maximum ratio of 3.75 times steps back to 3.50 times at September 30, 2013. “In April, we established a new one-year $150 million trade receivable securitization facility, which replaced a $100 million facility that expired by its terms. The new credit facility provides for borrowings based on our trade receivables balance. Borrowings bear interest at one-month LIBOR plus 60 basis points. “Earlier this month, we completed an acquisition of three aggregates quarries in the greater Atlanta, Georgia area. This transaction adds over 800 million tons of permitted aggregates reserves, which enhances our long-term position in this market. The integration of these locations is complete, and we look forward to the contributions from these quarries and our new employees.
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