ALTS - NASDAQ

Edward R. (Jack) Cameron – President and Chief Executive Officer, Chairman of the Board Jeffrey A. Cammerrer – Chief Financial Officer Bruce J. Wall – Vice President Resource Efficiency Programs

Thank you, Jack. Our comments may contain certain forward-looking statements regarding possible events including expectations and are not considered guarantees of future performance. Future results may differ materially and you should not attribute undue certainty to our forward-looking statements, please refer to the cautionary statements in our SEC filings to understand the risk that may impact our business. I will keep my comments brief today, both Brad and Jack will be discuss various financial results. And I will be available at the end of the call for any financial performance questions. As you know we extended our credit agreement through January 2016 and reset the financial covenants that created the events of the fall 2012. We are now in compliance with all the financial covenants under our amended credit agreement. Through the first quarter we are outpacing our accumulated EBITDA covenant by over $2 million, building a nice cushion going into the second and third quarters, which are more aggressive under our operating plan. We reported a consolidated net income for the first time since 2011 with a profit of a $184,000 or $0.03 per diluted share. The first quarter profit was deferred by the success of our Appliance replacement programs within our Recycling segment and sequential improvement in sales and gross margin and Appliance margin. Our Recycling segment revenues of $12.1 million were up $2.7 million compared to the first quarter of 2012. The increase was the result of 119% increase in appliance replacement volumes that drove an increase of $3.8 million in revenues. Overall utility program volumes declined by 4% compared to the first quarter of 2012. For the last 12 months we experienced decline in volumes in our recycling only programs offset by growth in the replacement business. The strength of our replacement programs drove an $800,000 increase in our recycling segment income compared to the first quarter last year. Retail segment revenues of $18.3 million which includes $200,000 of by-product revenues declined by 9% compared to the first quarter of 2012. However, we experience improving gross margins and appliance margin, as we slowly shift our sales mix back to out-of-carton product that generate higher margins. Brad will address the reasons behind this shift in his remarks, but as a result, first quarter gross margin improved by 60 basis points compared to the first quarter of last year. Appliance market generated an operating profit of $400,000 before corporate overhead and an overall operating loss of $200,000 during the first quarter. At the corporate level we implemented several cost reduction strategies in the first quarter including the reduction of 19 positions that will generate an annualized savings of approximately $800,000. The impact was offset in the first quarter by recording one time restructuring charges, we are continuing to develop an implement cost reduction strategies including rightsizing the businesses and setting down unprofitable operations. As of March 30, our cash balance was $3.9 million and only had $3.8 million in borrowings available under our line of credit. During the first quarter, we lowered our appliance inventories which generated approximately $3 million in operating cash and was offset by paying down the balance on our revolving line of credit by approximately the same amount. I will now turn the call over to Brad.

Thank you. (Operator Instructions). And the first question is from the line of (inaudible). Please go ahead.

Hey, Jack.

Hey, [Jerry]

Now what was the name of that Doctor that you we’re talking about I wanted to Google him, but I didn’t get that name.

It’s Dr. Richard, and his last name is spelled Muller.

Okay.

Muller, he is Professor of Physics, at University California, Begley. He is noted a very famous scientist.

Okay. And then, you talked about potential from the sale of carbon oxide credit of about $1 million from the credit that you generate this year and then almost a $1 million from credits generated last year. Did you recognize any revenues of this sort and 2012?

No, while we did there is one burn that we sold approximately just I give you a round numbers approximately 60,000 credits that we did burnt that we sold at $9.50credit they paid us $3.50 upfront and we got an other $3 when they get registered in California and an other $3 when the get certified in California. So, we were waiting on most that money, but I think we did book about 180,000 last year, 150,000 was it just, yeah. So, we did book basically one-third of that sale, but we still have remaining on that sale over 300,000 and we were expecting that actually in the first quarter this year, but the paperwork in California just gotten delayed and they’re now saying it will be Spring or the second quarter. And so, we should get half of that in the second quarter and then rest of it comes on verification, and we’re not sure when that will be but we’re pretty confident it will be before the year is over.

Okay. Thank you.

(Operator Instructions) And our next question is from the line of [Clarence Scholas] with [ARCA]. Please go ahead.

Hi, good morning Clarence here, individual Investor. I’m wondering if you can tell me a little bit more about those carbon credits from last year that haven’t been fulfilled in terms of the revenue. Do you have something sitting on the balance sheet in either accounts receivable or other assets where those are on your balance sheet and what are valuing them at?

No, Jeff can speak to that, but no, they’re not on our balance sheet. We’re not allowed to book that. There is no accounting process to take credit for that, and we have a huge inventory either have burned it or sitting on it or about to burn it and its not booked in any way, shape or form. The only time we can take any credit for revenue on this is when we actually get the cash.

So, the credits that you generated, but haven’t sold don’t sit on your balance sheet at all?

That’s correct.

Jeff is the CFO, believe me I’ve been arguing this point for a long time but I haven’t won yet.

Right now, because of cost that we incurred to develop these credits are pretty minor. The only thing that we could put on the balance sheet is cost associated with it, and we can’t put the market value on the balance sheet so if it only costs us $1 to generate the credits and we sell them for $9 we can’t put that differential on the balance sheet.

That’s because the market value is so uncertain?

Yes.

Okay. Thank you.