Baker added, “We remain on track with our plans to open three new stores and remodel six Orchard locations in fiscal 2012. On September 1 st, we opened our second new store this year in Torrance, California and expect to have 12 new and remodeled locations operating under the new format by the end of fiscal 2012.”Balance Sheet and Cash Flow As of July 28, 2012, inventories totaled $174.4 million compared to $162.3 million at July 30, 2011. Cash and cash equivalents at the end of the second quarter were $33.9 million. The Company generated $11.8 million of cash from operations during the second quarter of fiscal 2012. As of quarter-end, total long-term debt and capital lease obligations was $219.2 million, excluding $7.6 million in debt repayment that occurred subsequent to the close of the quarter. As previously announced, on July 27, 2012, the Company completed a sale-leaseback transaction for six properties, generating gross proceeds of $42.8 million. Approximately $25.2 million of the net proceeds from the sale-leaseback transaction were used to pay-off the Company’s Real Estate Secured Term Loan in its entirety during the quarter, while approximately $7.6 million of the balance of the net proceeds were used to pay-down the Company’s Senior Secured Term Loan in August 2012. Fiscal 2012 Outlook Based on the challenging macroeconomic environment and the timing of the impact of our repositioning initiatives, the Company does not have sufficient visibility at this time to reaffirm its previously issued guidance for positive comparable store sales on a 52-week basis in fiscal 2012. The Company continues to expect to open a total of three new stores in fiscal 2012 and remodel up to six existing Orchard locations. Conference Call Information The Company will host a conference call on Monday, September 10, 2012 at 1:30 p.m. pacific time/4:30 p.m. eastern time. Mark Baker, Chief Executive Officer and Chris Newman, Chief Financial Officer, will discuss second quarter fiscal 2012 financial results, as well as the Company’s outlook for fiscal 2012, followed by a Q&A session. To listen to the call, please dial (800) 659-1966 and provide passcode 84626748. A telephone replay will be available from September 10, 2012 at approximately 3:30 p.m. pacific time/6:30 p.m. eastern time through September 17, 2012. To access the replay, please dial (888) 286-8010 and enter passcode 88664613. The call will also be broadcast live at http://ir.osh.com and will be archived on the web site for 90 days. Footnote (1) Comparable store sales are calculated using sales of stores open at least twelve months and exclude E-commerce. Additionally, and because of an agreement the Company entered into with Sears Holdings Corporation on October 26, 2011 whereby the Company now sells appliances on a consignment basis and receives commission income for sales of such appliances and related protection agreements, comparable store sales also exclude approximately $4.5 million of net sales of Sears branded appliances in the second quarter of fiscal 2011 and approximately $0.4 million of commission income in the second quarter of fiscal 2012. About Orchard Orchard Supply Hardware Stores Corporation is a neighborhood hardware and garden store focused on paint, repair and the backyard. Founded as a purchasing cooperative in San Jose in 1931, today the stores average 44,000 square feet of enclosed retail space and 8,000 square feet of exterior nursery and garden space, carrying a broad assortment of merchandise for repair, maintenance and improvement needs for the home and backyard. As of July 28, 2012, the Company had 88 stores in California.