We group our building products into four product categories:

Lumber & Lumber Sheet Goods. Lumber & lumber sheet goods include dimensional lumber, plywood, and oriented strand board ("OSB") products used in on-site house framing.

Our operating results are dependent on the following trends, events and uncertainties, some of which are beyond our control:

On July 1, 2022, we acquired HomCo for approximately $30.5 million in cash, subject to certain closing adjustments. HomCo is a single location providing lumber and hardware supplies to the Flagstaff, Arizona area.

CURRENT OPERATING CONDITIONS AND OUTLOOK

The volatility of lumber prices;

The cyclical nature of the homebuilding industry;

General economic conditions in the markets in which we compete;

The pricing policies of our competitors;

Disruptions in our supply chain;

The production schedules of our customers; and

The following table sets forth the percentage relationship to net sales of certain costs, expenses and income items:

Three Months Ended June 30, 2022 Compared with the Three Months Ended June 30, 2021

The following table shows net sales classified by product category:

We achieved increased net sales in all of our product categories primarily due to core organic sales growth and acquisitions.

As a percentage of net sales, selling, general and administrative expenses decreased to 15.1% in the second quarter of 2022 from 16.2% in the second quarter of 2021, largely driven by cost leverage on increased net sales.

Six Months ended June 30, 2022 Compared with the Six Months ended June 30, 2021

The following table shows net sales classified by product category:

We achieved increased net sales in all of our product categories, due to core organic sales growth, acquisitions, and commodity price inflation.

The following table shows our borrowing base and excess availability as of:

Maximum borrowing amount (lesser of borrowing base and

(126.4 ) Net excess borrowing availability on revolving facility $ 838.2 $ 685.6

Our liquidity at June 30, 2022 was $1.0 billion, which consists of net borrowing availability under the 2026 facility and cash on hand.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Information regarding recent accounting pronouncements is discussed in Note 1 to the condensed consolidated financial statements included in Item 1 of this quarterly report on Form 10-Q.

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