Moving on to our balance sheet. Working capital consisting of inventory plus receivables less payables resulted in a $7.7 million use of cash during the quarter. March was our strongest sales month of the quarter, driving a large increase in receivables.

Cash at quarter end totaled 15.4 million and long-term debt was 77 million. We can borrow an additional 28.7 million above our $35 million threshold into our ABL at the quarter end, resulting in total liquidity of 44.1 million.

Capital expenditures for the quarter came in at $1.4 million. For the full-year of 2012, we continue to expect to generate positive free cash flow before our capital expenditures to be toward the lower end of our 16 to $18 million guidance range. Depreciation to be also towards the lower end of our 22 to $24 million guidance range and some contributions to be $14.5 million. We contributed $2.5 million to our pension plan in the first quarter of 2012; we will contribute $12 million of pension plan in the remaining three quarters of 2012.

I’ll now turn the call over to Ralph to provide more commentary on our results.

Ralph Scozzafava

Thanks Steve and good morning everybody. We reported sales of 287.3 million for the first quarter down 3.6% over the prior year, much like prior quarters, we saw above average performance on our higher end brands. And upholstery once again drove stronger volume than our Casegoods business.

I will discuss the highlights of particular brands in a few moments, but want to say that while we have much work to do to increase our revenues; we are pleased with our improved profitability. We spent considerable time in each earnings call over the past year detailing our cost and efficiency initiatives and their associated benefits. The improvement in our operating profit this quarter to 1.4 million was driven by the impact of these initiatives.

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