For a more detailed discussion of the factors that could cause actual results to differ materially from those projected in any forward-looking statements. Roundy’s assumes no obligation to revise any forward-looking projections that may be made in today’s release or call.Also in the company’s release and the today’s prepared remarks, we included adjusted net income and adjusted EBITDA, which are non-GAAP financial measures within the meaning of SEC Regulation G. The reconciliation of adjusted net income and adjusted EBITDA to the most directly comparable GAAP financial measures and other information required by the Regulation G are included in the company’s press release issued earlier today, which has been posted to the Investor Relations page of our corporate website at www.roundys.com. With that, I’d like to turn the call over to Bob Mariano. Bob? Bob Mariano Thanks, Ed, good afternoon, everyone, and thank you for joining us today. As we discussed, the results for the second quarter ended June 30, 2012. Today, I’ll briefly review those results and then spend a few minutes updating you on our key strategic initiatives and current trends. Then Darren will review the financial results for the quarter in more detail, and provide updated guidance for 2012. At the end of our remarks, we will open up the call for additional questions. Our results for the second quarter reflect the ongoing macroeconomic headwinds, which stiffened over the course of the quarter as many of our customers came increasingly price conscious and we experienced greater than anticipated pricing and promotional activity in several of our major markets. For the second quarter, sales increased 1.7% to $997 billion largely due to the strength of our new stores in the Chicago market, and a growing traction of our perishable organic and own brand offerings. Both of which I’ll talk more about in a moment.
These gains were partially offset by a decline in comparable store sales, a 3.3% due to the increased softness in consumer discretionary spending, the increase cut effect of competitive store openings and more aggressive competitive pricing and promotional activity in certain markets. All of which have had affected our customer traffic.As anticipated, sales were also negatively impacted by the timing of the July 4 holiday, which fell on Wednesday this year versus falling on the Monday following the end of the second quarter in 2011. Consequently, certain holiday related sales moved from the second quarter to the third quarter. We estimate that this negatively affected comp store sales by about 40 to 50 basis points, which was roughly in line with our expectations. For the quarter, we experienced a 3.2% decrease in the number of customer transactions and an average transaction size was roughly equal to last year. In the majority of our markets, our customer have been very cautious with their budgets. We think the current economic recovery is somewhat bifurcated based on customer income levels. Customers who feel good about their economic situation are spending more freely and in our stores where we have more higher income customers, we’re seeing good results. However, for the vast majority of our customers, the economy was heavily undermined and has affected their spending patterns more negatively than we expected. The overwriting fact and (inaudible) is the top economy and the budget challenged customer, there is also strong competition for the customers dollar. The majority of competitive activity was driven by supercenter or discount operator opening. Minneapolis and Milwaukee continue to be most competitive markets. In Milwaukee, we’re feeling the effect of several Wal-Mart market stores and to a lesser extent Target PFresh conversions that have occurred over the last 12 months. Read the rest of this transcript for free on seekingalpha.com