in 2007 and 2006 , azek products have accounted for a majority of our net sales . through our two-step , dual distribution system , we have established an extensive network of distributors and dealers throughout the united states and canada . our strategy continues to be to maintain two distributors in each geographic region that we enter . as of december 31 , 2007 , our distributors were selling our products to over 2,100 local stocking dealers who frequently request our products by brand name . in the first quarter of each year , we conduct an “ early buy ” sales promotion that encourages distributors to stock azek products through the use of incentive discounts , typically in the range of 1 % to 6 % . over the course of 2007 we have expanded azek building products through internal development of additional product offerings as well as through the procell acquisition in 2007 and the composatron acquisition in 2008. with the introduction of azek moulding and azek deck in 2007 , we continued to establish ourselves as a premier provider of branded building products . our goal is to continue to expand our product offerings through the development of additional trim , moulding and decking products , as well as through the introduction of additional product lines . across all of our target markets , we are focused on capitalizing on the functional advantages of our synthetic products relative to competing wood , fiber and metal products . in this regard , we have developed the leading brand in the synthetic bathroom and locker room products market , comtec . our product offerings which include comtec , capitol , hiny hider , evertuff and tufftec brands , and are sold to similar primary end-markets , which include schools , stadiums , prisons , retail locations and other high-traffic environments . through scranton product 's widely established distribution network , we are able to service our customers through representatives in all 50 states . although we were able to successfully integrate the santana acquisition and benefit from various manufacturing synergies through integration , we experienced some erosion in our customer base in 2007. our current focus is to regain market share within the commercial building markets , by actively engaging key dealers and productive sales representatives prior to the 2008 bid season . we are also focusing on improving our customer service experience by making improvements within our customer service departments . our focus is also to continue to develop leading brands for 2008 including new locker designs as well as a line of fire rated partitions . we believe that these additional goals will allow us to continue our market penetration into the commercial building market . dry petrochemical resins , primarily pvc , hdpe and pp , represented a majority of our raw material costs and cost of sales in 2007. throughout our 24-year history , resin prices have been subject to cyclical price fluctuations . due to increases in natural gas and crude oil prices and demand in the broader economy , dry petrochemical resin prices have risen to higher levels than in previous years . although , our annual average cost of resin decreased by approximately 11.2 % from the year ended december 31 , 2006 to december 31 , 2007 , resin prices have steadily risen from their low point in the first half of 2007. in the past , we have been able to partially offset the impact of significantly higher resin costs through increased sales volumes , improved productivity , and selling price increases in all of our product lines . we have not taken any significant pricing actions since we took several pricing actions late in the third quarter and early in the fourth quarter of 2005 that were used to mitigate higher resin prices . these pricing actions have not resulted in reduced volume growth in our products , on a period to period basis , through 2007. in addition , we have developed significant scale in purchasing resin , which we believe places us in a better cost position relative to many of our competitors . with respect to our basic non-fabricated products , we have been moderately successful in passing through resin cost increases to our customers . our azek building products are sold in various building and industrial end markets . azek products are sold in various stages of the home building construction market , including remodeling and renovation and new construction , thereby diversifying sales across the construction cycle . celtec products are sold to several industrial sectors , thereby diversifying sales across sectors sensitive to differing economic factors . scranton products fabricated and non-fabricated products are sold to various non-residential construction and industrial markets further adding to our end market diversity . in 2007 , approximately 25 % of our products were sold for new construction , 34 % were for remodeling , and 22 % were in the commercial building sector , with the remaining 19 % sold to various industrial end markets . over 98 % and 96 % of our sales in 2007 and 2006 , respectively , were in the united states . 27 we experienced economic factors that had affected our growth in the residential building market . sales were stronger in the first three quarters of 2007 due to the procell acquisition and the expansion of our azek sales network that was partially offset by the impact of a declining market for residential construction . these factors combined to slow azek trim , millwork and moulding sales as dealers and distributors worked through inventory purchased in azek 's successful early-buy program in the first quarter of 2007. by late second quarter , distributors and dealers had worked through their early-buy inventories causing order demand for azek trim , millwork and mouldings to improve . story_separator_special_tag year ended december 31 , 2006 compared with year ended december 31 , 2005 32 the following table summarizes certain financial information relating to the successor and predecessor operating results that have been derived from their consolidated financial statements : replace_table_token_4_th ( a ) represents the mathematical addition of the predecessor period january 1 , 2005 to may 10 , 2005 and the successor period may 11 , 2005 to december 31 , 2005.the combined predecessor and successor results of operations are not indicative of our future results of operations or results of operations that would have actually occurred had the transaction with the predecessor been consummated as of january 1 , 2005 , due to the fair values assigned to our assets and liabilities , the changes made in the related estimated useful lives of the assets at may 11 , 2005 , as well as changes in interest and income tax expenses as a result of the transaction . the following table summarizes certain information relating to the successor and predecessor operating results as a percentage of net sales and has been derived from the financial information presented above . we believe this presentation is useful to investors in comparing historical results . certain amounts in the table may not sum due to the rounding of individual components . replace_table_token_5_th _ ( a ) represents the mathematical addition of the predecessor period january 1 , 2005 to may 10 , 2005 and the successor period may 11 , 2005 to december 31 , 2005. the combined predecessor and successor results of operations are not indicative of our future results of operations or results of operations that would have actually occurred had the 33 transaction with the predecessor been consummated as of january 1 , 2005 , due to the fair values assigned to our assets and liabilities , the changes made in the related estimated useful lives of the assets at may 11 , 2005 , as well as changes in interest and income tax expenses as a result of the transaction . net sales . net sales increased by $ 39.2 million , or 17.6 % , to $ 261.8 million for the year ended december 31 , 2006 , from $ 222.6 million for the year ended december 31 , 2005 due to increased volumes and higher average selling prices . overall , azek building products net sales increased 8.4 % from december 31 , 2006 compared to december 31 , 2005 , and scranton products net sales increased 36.6 % from december 31 , 2006 compared to december 31 , 2005. we sold 186.7 million pounds of product during the year ended december 31 , 2006 , which was a 3.5 % increase from the 180.3 million pounds sold during the year ended december 31 , 2005. volume growth was primarily attributable to the santana acquisition and year over year growth within azek building products , offset by volume decline in scranton products industrial building products . in addition to volume growth , revenues increased as a result of the full year benefit from price increases across all of our product lines , implemented in the second half of 2005. cost of sales . cost of sales increased by $ 21.5 million , or 12.5 % , to $ 193.4 million for the year ended december 31 , 2006 from $ 171.9 million for the same period in 2005. the increase was primarily attributable to increased volumes from the santana acquisition , as well as an increase in average resin prices per pound of 5.6 % in the year ended december 31 , 2006 compared to the same period in 2005. despite the period over period increase in average resin prices , resin costs have significantly declined from their peak levels in the fall of 2005. in 2005 , our cost of sales included the effect of the fair value adjustment of acquired inventories recorded in connection with the transaction . the $ 5.2 million non-cash fair value adjustment increased acquired inventory values to estimated selling price at may 11 , 2005. this increase was then recognized as an increase to cost of sales during the period may 11 , 2005 to december 31 , 2005 as the related inventory was sold . gross margin . gross margin increased by $ 17.7 million , or 34.9 % , to $ 68.4 million for the year ended december 31 , 2006 from $ 50.7 million for the same period of 2005. this increase was mainly attributable to increases in selling prices which allowed us to offset the increase in average resin costs . gross margin as a percent of net sales increased to 26.1 % for the year ended december 31 , 2006 from 22.8 % for the same period in 2005. this increase was mainly due to the increase in selling prices and volume growth . the increase in gross margin in 2006 from 2005 was also attributable to the impact of the fair value adjustment we incurred in 2005 as a result of the transaction as discussed above . selling , general and administrative expenses . selling , general and administrative expenses decreased by $ 0.5 million , or 1.3 % , to $ 40.2 million , or 15.4 % of net sales for the year ended december 31 , 2006 from $ 40.8 million , or 18.3 % of net sales for the same period in 2005. the decrease in selling , general and administrative expenses from 2005 was primarily attributable to a one-time compensation charge of approximately $ 12.8 million relating to the vesting of certain restricted stock units upon the closing of the transaction in 2005. this decrease was primarily offset by the addition of santana , increased sales staff and marketing efforts for both our residential and commercial building product lines , an approximately $ 0.9 million increase in amortization of intangible assets recorded in conjunction with the transaction and

liquidity and capital resources our primary cash needs are working capital , capital expenditures and debt service . we have historically financed these cash requirements through internally-generated cash flow and debt financings . we also have a senior secured revolving credit facility which provides additional liquidity to support our growth . in addition , we may also issue additional equity and or debt to finance acquisitions in the future . net cash provided by operating activities was $ 21.3 million , $ 1.9 million and $ 35.1 million for the years ended december 31 , 2007 , 2006 and 2005 , respectively . the increase in cash provided by operating activities in the year 2007 was primarily due to higher earnings and non-cash expenses including depreciation and amortization , as well as continued improvements in receivables and accounts payables management , offset by increased levels of finished goods related to our winter buy at the end of 2007 compared to 2006. the decrease in cash provided by operating activities from 2005 to 2006 was primarily due to higher interest payments on our long-term debt , increased raw material costs , reduction in levels of payables at the end of 2006 compared to 2005 ( mainly for resin purchases made at the end of 2005 ) and higher working capital levels to support growth . these factors were only partially offset by improved finished good inventory management . net cash used in investing activities was $ 70.6 million , $ 52.0 million and $ 234.5 million for the years ended december 31 , 2007 , 2006 and 2005 , respectively . in 2007 , cash used in investing activities of $ 58.2 million related to the procell acquisition completed on january 31 , 2007. the remaining cash used in investing activities in 2007 related to $ 14.4 million in capital expenditures primarily for the capacity expansion at our foley alabama manufacturing facility . on may 10 , 2007 we also sold one of our manufacturing facilities for approximately $ 2.0 million .


 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 our primary cash needs are working capital , capital expenditures and debt service . we have historically financed these cash requirements through internally-generated cash flow and debt financings . we also have a senior secured revolving credit facility which provides additional liquidity to support our growth . in addition , we may also issue additional equity and or debt to finance acquisitions in the future . net cash provided by operating activities was $ 21.3 million , $ 1.9 million and $ 35.1 million for the years ended december 31 , 2007 , 2006 and 2005 , respectively . the increase in cash provided by operating activities in the year 2007 was primarily due to higher earnings and non-cash expenses including depreciation and amortization , as well as continued improvements in receivables and accounts payables management , offset by increased levels of finished goods related to our winter buy at the end of 2007 compared to 2006. the decrease in cash provided by operating activities from 2005 to 2006 was primarily due to higher interest payments on our long-term debt , increased raw material costs , reduction in levels of payables at the end of 2006 compared to 2005 ( mainly for resin purchases made at the end of 2005 ) and higher working capital levels to support growth . these factors were only partially offset by improved finished good inventory management . net cash used in investing activities was $ 70.6 million , $ 52.0 million and $ 234.5 million for the years ended december 31 , 2007 , 2006 and 2005 , respectively . in 2007 , cash used in investing activities of $ 58.2 million related to the procell acquisition completed on january 31 , 2007. the remaining cash used in investing activities in 2007 related to $ 14.4 million in capital expenditures primarily for the capacity expansion at our foley alabama manufacturing facility . on may 10 , 2007 we also sold one of our manufacturing facilities for approximately $ 2.0 million .
```    
 Suspicious Activity Report : in 2007 and 2006 , azek products have accounted for a majority of our net sales . through our two-step , dual distribution system , we have established an extensive network of distributors and dealers throughout the united states and canada . our strategy continues to be to maintain two distributors in each geographic region that we enter . as of december 31 , 2007 , our distributors were selling our products to over 2,100 local stocking dealers who frequently request our products by brand name . in the first quarter of each year , we conduct an “ early buy ” sales promotion that encourages distributors to stock azek products through the use of incentive discounts , typically in the range of 1 % to 6 % . over the course of 2007 we have expanded azek building products through internal development of additional product offerings as well as through the procell acquisition in 2007 and the composatron acquisition in 2008. with the introduction of azek moulding and azek deck in 2007 , we continued to establish ourselves as a premier provider of branded building products . our goal is to continue to expand our product offerings through the development of additional trim , moulding and decking products , as well as through the introduction of additional product lines . across all of our target markets , we are focused on capitalizing on the functional advantages of our synthetic products relative to competing wood , fiber and metal products . in this regard , we have developed the leading brand in the synthetic bathroom and locker room products market , comtec . our product offerings which include comtec , capitol , hiny hider , evertuff and tufftec brands , and are sold to similar primary end-markets , which include schools , stadiums , prisons , retail locations and other high-traffic environments . through scranton product 's widely established distribution network , we are able to service our customers through representatives in all 50 states . although we were able to successfully integrate the santana acquisition and benefit from various manufacturing synergies through integration , we experienced some erosion in our customer base in 2007. our current focus is to regain market share within the commercial building markets , by actively engaging key dealers and productive sales representatives prior to the 2008 bid season . we are also focusing on improving our customer service experience by making improvements within our customer service departments . our focus is also to continue to develop leading brands for 2008 including new locker designs as well as a line of fire rated partitions . we believe that these additional goals will allow us to continue our market penetration into the commercial building market . dry petrochemical resins , primarily pvc , hdpe and pp , represented a majority of our raw material costs and cost of sales in 2007. throughout our 24-year history , resin prices have been subject to cyclical price fluctuations . due to increases in natural gas and crude oil prices and demand in the broader economy , dry petrochemical resin prices have risen to higher levels than in previous years . although , our annual average cost of resin decreased by approximately 11.2 % from the year ended december 31 , 2006 to december 31 , 2007 , resin prices have steadily risen from their low point in the first half of 2007. in the past , we have been able to partially offset the impact of significantly higher resin costs through increased sales volumes , improved productivity , and selling price increases in all of our product lines . we have not taken any significant pricing actions since we took several pricing actions late in the third quarter and early in the fourth quarter of 2005 that were used to mitigate higher resin prices . these pricing actions have not resulted in reduced volume growth in our products , on a period to period basis , through 2007. in addition , we have developed significant scale in purchasing resin , which we believe places us in a better cost position relative to many of our competitors . with respect to our basic non-fabricated products , we have been moderately successful in passing through resin cost increases to our customers . our azek building products are sold in various building and industrial end markets . azek products are sold in various stages of the home building construction market , including remodeling and renovation and new construction , thereby diversifying sales across the construction cycle . celtec products are sold to several industrial sectors , thereby diversifying sales across sectors sensitive to differing economic factors . scranton products fabricated and non-fabricated products are sold to various non-residential construction and industrial markets further adding to our end market diversity . in 2007 , approximately 25 % of our products were sold for new construction , 34 % were for remodeling , and 22 % were in the commercial building sector , with the remaining 19 % sold to various industrial end markets . over 98 % and 96 % of our sales in 2007 and 2006 , respectively , were in the united states . 27 we experienced economic factors that had affected our growth in the residential building market . sales were stronger in the first three quarters of 2007 due to the procell acquisition and the expansion of our azek sales network that was partially offset by the impact of a declining market for residential construction . these factors combined to slow azek trim , millwork and moulding sales as dealers and distributors worked through inventory purchased in azek 's successful early-buy program in the first quarter of 2007. by late second quarter , distributors and dealers had worked through their early-buy inventories causing order demand for azek trim , millwork and mouldings to improve . story_separator_special_tag year ended december 31 , 2006 compared with year ended december 31 , 2005 32 the following table summarizes certain financial information relating to the successor and predecessor operating results that have been derived from their consolidated financial statements : replace_table_token_4_th ( a ) represents the mathematical addition of the predecessor period january 1 , 2005 to may 10 , 2005 and the successor period may 11 , 2005 to december 31 , 2005.the combined predecessor and successor results of operations are not indicative of our future results of operations or results of operations that would have actually occurred had the transaction with the predecessor been consummated as of january 1 , 2005 , due to the fair values assigned to our assets and liabilities , the changes made in the related estimated useful lives of the assets at may 11 , 2005 , as well as changes in interest and income tax expenses as a result of the transaction . the following table summarizes certain information relating to the successor and predecessor operating results as a percentage of net sales and has been derived from the financial information presented above . we believe this presentation is useful to investors in comparing historical results . certain amounts in the table may not sum due to the rounding of individual components . replace_table_token_5_th _ ( a ) represents the mathematical addition of the predecessor period january 1 , 2005 to may 10 , 2005 and the successor period may 11 , 2005 to december 31 , 2005. the combined predecessor and successor results of operations are not indicative of our future results of operations or results of operations that would have actually occurred had the 33 transaction with the predecessor been consummated as of january 1 , 2005 , due to the fair values assigned to our assets and liabilities , the changes made in the related estimated useful lives of the assets at may 11 , 2005 , as well as changes in interest and income tax expenses as a result of the transaction . net sales . net sales increased by $ 39.2 million , or 17.6 % , to $ 261.8 million for the year ended december 31 , 2006 , from $ 222.6 million for the year ended december 31 , 2005 due to increased volumes and higher average selling prices . overall , azek building products net sales increased 8.4 % from december 31 , 2006 compared to december 31 , 2005 , and scranton products net sales increased 36.6 % from december 31 , 2006 compared to december 31 , 2005. we sold 186.7 million pounds of product during the year ended december 31 , 2006 , which was a 3.5 % increase from the 180.3 million pounds sold during the year ended december 31 , 2005. volume growth was primarily attributable to the santana acquisition and year over year growth within azek building products , offset by volume decline in scranton products industrial building products . in addition to volume growth , revenues increased as a result of the full year benefit from price increases across all of our product lines , implemented in the second half of 2005. cost of sales . cost of sales increased by $ 21.5 million , or 12.5 % , to $ 193.4 million for the year ended december 31 , 2006 from $ 171.9 million for the same period in 2005. the increase was primarily attributable to increased volumes from the santana acquisition , as well as an increase in average resin prices per pound of 5.6 % in the year ended december 31 , 2006 compared to the same period in 2005. despite the period over period increase in average resin prices , resin costs have significantly declined from their peak levels in the fall of 2005. in 2005 , our cost of sales included the effect of the fair value adjustment of acquired inventories recorded in connection with the transaction . the $ 5.2 million non-cash fair value adjustment increased acquired inventory values to estimated selling price at may 11 , 2005. this increase was then recognized as an increase to cost of sales during the period may 11 , 2005 to december 31 , 2005 as the related inventory was sold . gross margin . gross margin increased by $ 17.7 million , or 34.9 % , to $ 68.4 million for the year ended december 31 , 2006 from $ 50.7 million for the same period of 2005. this increase was mainly attributable to increases in selling prices which allowed us to offset the increase in average resin costs . gross margin as a percent of net sales increased to 26.1 % for the year ended december 31 , 2006 from 22.8 % for the same period in 2005. this increase was mainly due to the increase in selling prices and volume growth . the increase in gross margin in 2006 from 2005 was also attributable to the impact of the fair value adjustment we incurred in 2005 as a result of the transaction as discussed above . selling , general and administrative expenses . selling , general and administrative expenses decreased by $ 0.5 million , or 1.3 % , to $ 40.2 million , or 15.4 % of net sales for the year ended december 31 , 2006 from $ 40.8 million , or 18.3 % of net sales for the same period in 2005. the decrease in selling , general and administrative expenses from 2005 was primarily attributable to a one-time compensation charge of approximately $ 12.8 million relating to the vesting of certain restricted stock units upon the closing of the transaction in 2005. this decrease was primarily offset by the addition of santana , increased sales staff and marketing efforts for both our residential and commercial building product lines , an approximately $ 0.9 million increase in amortization of intangible assets recorded in conjunction with the transaction and

