these market conditions also had an unfavorable impact on our gross margin as well as our operating margin compared to 2012. we responded to these conditions by flexing down our operating levels , in particular , our melting levels at both our bridgeville and north jackson operations , especially during the third quarter of 2013. in addition to lower operating levels negatively impacting our margins , lower raw material prices caused a misalignment with steel surcharges as we were selling higher cost inventory melted in early 2013 and prior throughout the year as a result of longer manufacturing cycles . we also made a conscious decision to maintain our newly trained workforce at our north jackson facility as we continued to focus our efforts on gaining additional customer acceptances for our new products being produced from this location in anticipation of improved 2014 business conditions . although 2013 was a challenging year for the metals industry , we made several positive strides throughout 2013 . 1. in april 2013 , we were awarded our first contract with rolls royce , which officially began on january 1 , 2014 ; however , we did make our initial shipment in december 2013. this is a five-year contract that required an extensive effort to meet demanding requirements for qualifying our entire manufacturing system , including vacuum induction melting ( “ vim ” ) and forge production at north jackson . 2. in august 2013 , we announced the early signing of a new five-year labor contract with our hourly workforce at our bridgeville facility as we maintain a productive relationship with our workforce . 3. in october 2013 , we announced a long-term agreement with haynes international , inc. ( “ haynes ” ) whereby we will provide vim capacity as well as forging services on a conversion basis to haynes . 4. throughout 2013 , we achieved customer approvals and developed new products for major customers in our aerospace , power generation and oil and gas markets as we introduced 15 new products in 2013 , defined by grade and shape . 5. during 2013 , we generated $ 28.6 million in cash flow from operating activities primarily by focusing our efforts to reduce inventory levels in response to market conditions . in addition , we lowered our capital expenditures and in turn , repaid $ 16.9 million in debt while improving our debt to capitalization to 31.4 % from 35.1 % at the end of 2012. we amended our credit facility in november 2013 which also provides us with sufficient working capital to meet our cash requirements moving into 2014 . 6. lastly , we attained a number of industry certifications in 2013 , and nine altogether since 2012 , as we moved toward the more technically advanced and higher margin products that we anticipated with our acquisition of our north jackson facility . 10 although we have seen an uptick in our bookings in the fourth quarter of 2013 and at the start of 2014 , we anticipate our first quarter results could be similar to our results for the third and fourth quarters of 2013 , in terms of top line growth and gross margin compression as some of our older higher cost materials make their way through the sales cycle and customers remain cautious in their buying patterns . however , indications from the marketplace suggest that 2014 will provide progressive demand improvement and with our development and integration of north jackson adding to market opportunities , we remain optimistic that the second half of 2014 will provide us with improved financial results . as a result of the north jackson acquisition , our operating facilities have become more integrated , resulting in our chief operating decision maker ( “ codm ” ) viewing the company as one unit . our codm sets performance goals , assesses performance and makes decisions about resource allocations on a consolidated basis . as a result of these factors , as well as the nature of the financial information available which is reviewed by the codm , we commenced reporting as one reportable segment beginning january 1 , 2013. results of operations 2013 results as compared to 2012 replace_table_token_6_th 11 market segment information : replace_table_token_7_th melt type information : replace_table_token_8_th we do not sell the majority of our products directly to end markets . the end market information in this annual report is our estimate based upon our customers and the grade of material sold that they will in-turn sell to the ultimate end market customer . end market information : replace_table_token_9_th net sales : net sales for the year ended december 31 , 2013 decreased $ 70.2 million or 28.0 % , as compared to the similar period in 2012 . the decrease in our sales primarily reflects a 23.7 % decrease in consolidated shipments in 2013 compared to the same prior year period . our product sales to all of our end markets decreased as noted in the above table . the reduction in our net sales is also the result of a lower priced product mix as well as lower overall selling prices in the current year . for the most part , our raw material costs have decreased over last year , which has resulted in lower raw material surcharges in the current year compared to the same prior year period . these unfavorable variances are partially offset by a higher percentage of our premium alloy sales recognized in the current 12 year . our premium alloy sales increased from 4.3 % of total sales for the year ended december 31 , 2012 to 5.9 % in the current year . story_separator_special_tag in october 1998 , we initiated a stock repurchase program to repurchase up to 315,000 shares of our outstanding common s tock in open market transactions at market prices . we h ave not repurchased any shares under the program sinc e 2001. we are authorized to repurch ase 45,100 remaining shares of c ommon s tock under this program as of december 31 , 2013 . 17 contractual obligations . at december 31 , 2013 , we had the following contractual principal , interest and purchase obligations : replace_table_token_13_th ( a ) amounts include interest expense , which was estimated based upon the december 31 , 2013 interest rate for our debt and assumes that debt will not be repaid until its maturity . ( b ) purchase obligations include the value of all open purchase orders with established quantities and purchase prices as well as minimum purchase commitments . contingent items product claims . we are subject to various claims and legal actions that arise in the normal course of conducting business . there were no material product claims outstanding at december 31 , 2013 . environmental matters . we , as well as other steel companies , are subject to demanding environmental standards imposed by federal , state and local environmental laws and regulations . we are not aware of any environmental condition that currently exists at any of our facilities that are probable or reasonably possible of having a material impact on our results of operations or liquidity . we are aware of energy usage concerns relating to climate change ; however , we are not aware of any pending regulations that are expected to have a material impact on our results of operations or liquidity . legal matters . from time to time , various lawsuits and claims have been or may be asserted against us relating to the conduct of our business , including routine litigation relating to commercial and employment matters . the ultimate cost and outcome of any litigation or claim can not be predicted with certainty . management believes , based on information presently available , that the likelihood that the ultimate outcome of any such pending matter will have a material adverse effect on its financial condition , or liquidity or a material impact to its results of operations is remote , although the resolution of one or more of these matters may have a material adverse effect on its results of operations for the period in which the resolution occurs . critical accounting policies and new accounting pronouncements critical accounting policies revenue from the sale of products is recognized when both risk of loss and title have transferred to the customer , which in most cases coincides with shipment of the related products , and collection is reasonably assured . we manufacture specialty steel products to customer purchase order specifications and in recognition of requirements for product acceptance . material certification forms are executed , indicating compliance with the customer purchase orders , before the specialty steel products are packed and shipped to the customer . revenue from conversion services is recognized when the performance of the service is complete . invoiced shipping and handling costs are also accounted for as revenue . customer claims , which are not material , are accounted for primarily as a reduction to gross sales after the matter has been researched and an acceptable resolution has been reached . in addition , management constantly monitors the ability to collect its unpaid sales invoices and the valuation of its receivables . the allowance for doubtful accounts includes specific reserves for the value of outstanding invoices issued to customers that are deemed potentially not collectible . inventories are stated at the lower of cost or market . the cost of inventory is principally determined by the weighted average cost method for material and operation costs . an inventory reserve is provided for material on hand for which management believes cost exceeds net realizable value and for slow moving inventory based upon management 's expected method of disposition . long-lived assets , including property , plant and equipment and identifiable intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in relation to the operating performance and future undiscounted cash flows of the underlying assets . adjustments are made if the sum of expected future cash flows is less than book value . no impairment reserve was deemed necessary as of december 31 , 2013 , 2012 and 2011 . 18 deferred income taxes are provided for temporary differences between amounts of assets and liabilities for financial reporting purposes and the basis of such assets and liabilities as measured by tax laws and regulations . our deferred tax assets include net operating loss carry forwards that can be used to offset taxable income in future periods and reduce income taxes payable in those future periods . these deferred tax assets will expire , if unused , at various times through 20 33 . deferred tax liabilities primarily relate to book / tax depreciation differences . management assesses the need to record a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized . identifiable i ntangible assets are recorded at fair value and are amortized over their useful lives using the straight-line method . goodwill , which represents the excess of cost over net tangible and identifiable intangible assets of acquired businesses , is stated at fair value at the date of acquisition . goodwill is not amortized , but is tested or evaluated in accordance with accounting standards update 2011-08 , “ intangibles – goodwill and other ( topic 350 ) : testing goodwill for impairment , ” annually for impairment or more frequently if any event indicates that the carrying amount of goodwill may be impaired . we perform our annual

liquidity and capital resources historically , we have financed our operating activities through cash provided by operations and cash provided through our credit facilities . during 2013 , our managed working capital , defined as net account receivable plus net inventory minus accounts payable decreased by $ 20.1 million to $ 89.8 million at december 31 , 2013 compared to $ 109.9 million at december 31 , 2012 primarily due to unfavorable market conditions in most of our end markets . our net accounts receivable balances decreased $ 3.3 million primarily as a result of a 15.0 % decrease in net sales for the three-month period ended december 31 , 2013 compared to the same time period in 2012. over the second half of 2013 , we made a concerted effort to reduce our inventory levels , and as such , we decreased our overall inventory balance by $ 13.1 million to $ 82.6 million from $ 95.7 million as of december 31 , 2012. our accounts payable balance increased by $ 3.7 million from december 31 , 2012 to december 31 , 2013 primarily as a result of timing of vendor payments at year-end . net cash provided by operating activities : during 2013 , we generated net cash from operating activities of $ 28.6 million , which was largely the result of improvements in our working capital . the decrease in our net inventory and net accounts receivable provided $ 11.9 million and $ 3.3 million of cash , respectively . the net increase in our accounts payable and other accruals provided an additional $ 2.2 million in cash .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources historically , we have financed our operating activities through cash provided by operations and cash provided through our credit facilities . during 2013 , our managed working capital , defined as net account receivable plus net inventory minus accounts payable decreased by $ 20.1 million to $ 89.8 million at december 31 , 2013 compared to $ 109.9 million at december 31 , 2012 primarily due to unfavorable market conditions in most of our end markets . our net accounts receivable balances decreased $ 3.3 million primarily as a result of a 15.0 % decrease in net sales for the three-month period ended december 31 , 2013 compared to the same time period in 2012. over the second half of 2013 , we made a concerted effort to reduce our inventory levels , and as such , we decreased our overall inventory balance by $ 13.1 million to $ 82.6 million from $ 95.7 million as of december 31 , 2012. our accounts payable balance increased by $ 3.7 million from december 31 , 2012 to december 31 , 2013 primarily as a result of timing of vendor payments at year-end . net cash provided by operating activities : during 2013 , we generated net cash from operating activities of $ 28.6 million , which was largely the result of improvements in our working capital . the decrease in our net inventory and net accounts receivable provided $ 11.9 million and $ 3.3 million of cash , respectively . the net increase in our accounts payable and other accruals provided an additional $ 2.2 million in cash .
```    
 Suspicious Activity Report : these market conditions also had an unfavorable impact on our gross margin as well as our operating margin compared to 2012. we responded to these conditions by flexing down our operating levels , in particular , our melting levels at both our bridgeville and north jackson operations , especially during the third quarter of 2013. in addition to lower operating levels negatively impacting our margins , lower raw material prices caused a misalignment with steel surcharges as we were selling higher cost inventory melted in early 2013 and prior throughout the year as a result of longer manufacturing cycles . we also made a conscious decision to maintain our newly trained workforce at our north jackson facility as we continued to focus our efforts on gaining additional customer acceptances for our new products being produced from this location in anticipation of improved 2014 business conditions . although 2013 was a challenging year for the metals industry , we made several positive strides throughout 2013 . 1. in april 2013 , we were awarded our first contract with rolls royce , which officially began on january 1 , 2014 ; however , we did make our initial shipment in december 2013. this is a five-year contract that required an extensive effort to meet demanding requirements for qualifying our entire manufacturing system , including vacuum induction melting ( “ vim ” ) and forge production at north jackson . 2. in august 2013 , we announced the early signing of a new five-year labor contract with our hourly workforce at our bridgeville facility as we maintain a productive relationship with our workforce . 3. in october 2013 , we announced a long-term agreement with haynes international , inc. ( “ haynes ” ) whereby we will provide vim capacity as well as forging services on a conversion basis to haynes . 4. throughout 2013 , we achieved customer approvals and developed new products for major customers in our aerospace , power generation and oil and gas markets as we introduced 15 new products in 2013 , defined by grade and shape . 5. during 2013 , we generated $ 28.6 million in cash flow from operating activities primarily by focusing our efforts to reduce inventory levels in response to market conditions . in addition , we lowered our capital expenditures and in turn , repaid $ 16.9 million in debt while improving our debt to capitalization to 31.4 % from 35.1 % at the end of 2012. we amended our credit facility in november 2013 which also provides us with sufficient working capital to meet our cash requirements moving into 2014 . 6. lastly , we attained a number of industry certifications in 2013 , and nine altogether since 2012 , as we moved toward the more technically advanced and higher margin products that we anticipated with our acquisition of our north jackson facility . 10 although we have seen an uptick in our bookings in the fourth quarter of 2013 and at the start of 2014 , we anticipate our first quarter results could be similar to our results for the third and fourth quarters of 2013 , in terms of top line growth and gross margin compression as some of our older higher cost materials make their way through the sales cycle and customers remain cautious in their buying patterns . however , indications from the marketplace suggest that 2014 will provide progressive demand improvement and with our development and integration of north jackson adding to market opportunities , we remain optimistic that the second half of 2014 will provide us with improved financial results . as a result of the north jackson acquisition , our operating facilities have become more integrated , resulting in our chief operating decision maker ( “ codm ” ) viewing the company as one unit . our codm sets performance goals , assesses performance and makes decisions about resource allocations on a consolidated basis . as a result of these factors , as well as the nature of the financial information available which is reviewed by the codm , we commenced reporting as one reportable segment beginning january 1 , 2013. results of operations 2013 results as compared to 2012 replace_table_token_6_th 11 market segment information : replace_table_token_7_th melt type information : replace_table_token_8_th we do not sell the majority of our products directly to end markets . the end market information in this annual report is our estimate based upon our customers and the grade of material sold that they will in-turn sell to the ultimate end market customer . end market information : replace_table_token_9_th net sales : net sales for the year ended december 31 , 2013 decreased $ 70.2 million or 28.0 % , as compared to the similar period in 2012 . the decrease in our sales primarily reflects a 23.7 % decrease in consolidated shipments in 2013 compared to the same prior year period . our product sales to all of our end markets decreased as noted in the above table . the reduction in our net sales is also the result of a lower priced product mix as well as lower overall selling prices in the current year . for the most part , our raw material costs have decreased over last year , which has resulted in lower raw material surcharges in the current year compared to the same prior year period . these unfavorable variances are partially offset by a higher percentage of our premium alloy sales recognized in the current 12 year . our premium alloy sales increased from 4.3 % of total sales for the year ended december 31 , 2012 to 5.9 % in the current year . story_separator_special_tag in october 1998 , we initiated a stock repurchase program to repurchase up to 315,000 shares of our outstanding common s tock in open market transactions at market prices . we h ave not repurchased any shares under the program sinc e 2001. we are authorized to repurch ase 45,100 remaining shares of c ommon s tock under this program as of december 31 , 2013 . 17 contractual obligations . at december 31 , 2013 , we had the following contractual principal , interest and purchase obligations : replace_table_token_13_th ( a ) amounts include interest expense , which was estimated based upon the december 31 , 2013 interest rate for our debt and assumes that debt will not be repaid until its maturity . ( b ) purchase obligations include the value of all open purchase orders with established quantities and purchase prices as well as minimum purchase commitments . contingent items product claims . we are subject to various claims and legal actions that arise in the normal course of conducting business . there were no material product claims outstanding at december 31 , 2013 . environmental matters . we , as well as other steel companies , are subject to demanding environmental standards imposed by federal , state and local environmental laws and regulations . we are not aware of any environmental condition that currently exists at any of our facilities that are probable or reasonably possible of having a material impact on our results of operations or liquidity . we are aware of energy usage concerns relating to climate change ; however , we are not aware of any pending regulations that are expected to have a material impact on our results of operations or liquidity . legal matters . from time to time , various lawsuits and claims have been or may be asserted against us relating to the conduct of our business , including routine litigation relating to commercial and employment matters . the ultimate cost and outcome of any litigation or claim can not be predicted with certainty . management believes , based on information presently available , that the likelihood that the ultimate outcome of any such pending matter will have a material adverse effect on its financial condition , or liquidity or a material impact to its results of operations is remote , although the resolution of one or more of these matters may have a material adverse effect on its results of operations for the period in which the resolution occurs . critical accounting policies and new accounting pronouncements critical accounting policies revenue from the sale of products is recognized when both risk of loss and title have transferred to the customer , which in most cases coincides with shipment of the related products , and collection is reasonably assured . we manufacture specialty steel products to customer purchase order specifications and in recognition of requirements for product acceptance . material certification forms are executed , indicating compliance with the customer purchase orders , before the specialty steel products are packed and shipped to the customer . revenue from conversion services is recognized when the performance of the service is complete . invoiced shipping and handling costs are also accounted for as revenue . customer claims , which are not material , are accounted for primarily as a reduction to gross sales after the matter has been researched and an acceptable resolution has been reached . in addition , management constantly monitors the ability to collect its unpaid sales invoices and the valuation of its receivables . the allowance for doubtful accounts includes specific reserves for the value of outstanding invoices issued to customers that are deemed potentially not collectible . inventories are stated at the lower of cost or market . the cost of inventory is principally determined by the weighted average cost method for material and operation costs . an inventory reserve is provided for material on hand for which management believes cost exceeds net realizable value and for slow moving inventory based upon management 's expected method of disposition . long-lived assets , including property , plant and equipment and identifiable intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in relation to the operating performance and future undiscounted cash flows of the underlying assets . adjustments are made if the sum of expected future cash flows is less than book value . no impairment reserve was deemed necessary as of december 31 , 2013 , 2012 and 2011 . 18 deferred income taxes are provided for temporary differences between amounts of assets and liabilities for financial reporting purposes and the basis of such assets and liabilities as measured by tax laws and regulations . our deferred tax assets include net operating loss carry forwards that can be used to offset taxable income in future periods and reduce income taxes payable in those future periods . these deferred tax assets will expire , if unused , at various times through 20 33 . deferred tax liabilities primarily relate to book / tax depreciation differences . management assesses the need to record a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized . identifiable i ntangible assets are recorded at fair value and are amortized over their useful lives using the straight-line method . goodwill , which represents the excess of cost over net tangible and identifiable intangible assets of acquired businesses , is stated at fair value at the date of acquisition . goodwill is not amortized , but is tested or evaluated in accordance with accounting standards update 2011-08 , “ intangibles – goodwill and other ( topic 350 ) : testing goodwill for impairment , ” annually for impairment or more frequently if any event indicates that the carrying amount of goodwill may be impaired . we perform our annual

