Builders FirstSource remained in the red during the second quarter despite a 32% jump in sales from the same period a year ago to $271.9 million, the company announced today. Loss from continuing operations for the period ended June 30 was $12 million, which is a $3 million improvement over last year’s second quarter.

The company attributed the jump in sales to increased sales volume. Gross margins rose 25% to $53.7 million, despite a drop in gross margin percentage by one percentage point to 19.7%. Loss from operations improved from $8 million to $1.4 million.

The Dallas-based supplier did manage to swing its adjusted EBITDA into the black with earnings of $2.1 million. The company defines adjusted EBITDA as GAAP net income (loss) before depreciation and amortization, interest expense, income taxes, (gain) loss on sale of assets, (income) loss from discontinued operations, and other non-cash or special items including asset impairments, facility closure costs, severance, transaction costs, and stock compensation expense.

“We delivered out best operating performance in nearly five years,” said Floyd Sherman, CEO of Builders FirstSource. “We are seeing meaningful improvements in our financial results as we continue to grow market share, leverage our strong competitive position, and provide first-class customer service.”

Adjusted loss from continuing operations was $7.1 million, a slight improvement over the $7.4 million loss a year ago. The company defines adjusted loss from continuing operations as GAAP income (loss) from continuing operations before non-cash or special items including facility closure costs, stock warrant fair value adjustments and tax valuation allowances.

The company’s prefabricated components unit reported a 27% increase in sales to $51.2 million, while sales at its window and doors division also rose 27% to $59.3 million. Sales at in the lumber and lumber sheet goods product category skyrocketed 45% to $87.9 million. The millwork unit revealed a 23% growth in sales to $26.4 million, while the other building products and services category reported sales of $47.1 million, good for a 26% jump in sales.

“We made significant strides during the first half of 2012, the result of our employees’ efforts over the past several years positioning the company to take advantage of the improved housing environment we are finally seeing,” said Sherman. “We believe we will continue to see housing gradually recover, which should drive further financial improvements in our business.”