Improved Leverage Drives Margin ExpansionGross profit for the 2013 first quarter was $2.6 million, an increase of 48.8% from $1.8 million in the prior-year period. Gross margin expanded 540 basis points to 18.3% in the 2013 first quarter, reflecting improved leverage on higher sales combined with continued cost control. Selling, general and administrative (SG&A) expense increased $91 thousand year-over-year to $2.0 million in the first three months of 2013, due to higher employee related costs and approximately $0.1 million in expense associated with the offer the Company received from the Buyer Group (defined below) on October 29, 2012, partially offset by lower stock option expense. As a percentage of revenue, SG&A was consistent at 13.8% in the first quarters of 2013 and 2012. The Company incurred an asset impairment charge of $0.1 million primarily related to the potential sale of a non-core building that is currently used as office rental space. Earnings before interest, asset impairment, taxes, depreciation and amortization, and non-cash option expense (EBITDA), which is a non-GAAP measure, was $1.5 million in the first quarter of 2013, an increase of nearly 90%, or $0.7 million, from $0.8 million in the first quarter of 2012. (See the Reconciliation of Net Income (Loss) to EBITDA in the attached table.) Liquidity Cash and cash equivalents were $3.7 million at March 30, 2013, up slightly from the 2012 year-end balance of $3.6 million. Capital expenditures for the first three months of 2013 were $0.7 million compared with $2.3 million in the first quarter of 2012, and primarily included additional custom folding carton equipment. Capital expenditures in 2013 are expected to be between $1.8 million to $2.1 million. There were no shares repurchased by the Company during the 2013 first quarter. The exercise of stock options generated $0.2 million for the Company during the first quarter of 2013. MOD-PAC has authorization to repurchase up to 200,000 shares.