John R. Hewitt
Thanks, Kevin. Good day, everyone, and thank you for joining us to discuss the results of our first quarter ending September 30, 2011. Results for the first quarter of fiscal 2012 were in line with our expectations.
Backlog has increased steadily in recent quarters and bid volumes are strong across our key markets.
As I mentioned in our last call, our quarter-to-quarter business can be seasonal due to various factors including weather, client spending patterns and energy demand. However, as we've indicated in our earnings release yesterday, the outlook for our fiscal year is positive.The timing of project awards and commitments to fueled activities in July and August were somewhat slower than anticipated, resulted in lower man hours and under recovery of construction overhead cost in the quarter. Despite this relatively slow start to the year, revenues in man hours have increased every month and are trending in line with our expectations for the fiscal year. As I mentioned, backlog continues to grow and was $426.6 million at the end of the first quarter, the third consecutive quarterly increase. Bookings for the quarter were on par with our best quarter in the last 2 years and proposal volume is robust in all of our business lines. We're particularly pleased with the business volume in the Aboveground Storage Tank and high-voltage electrical markets. Overall, our outlook for fiscal 2012 is very positive. Repair and Maintenance Services segment achieved revenue growth of 28% in the first quarter compared to the same period last year with our Aboveground Storage Tank, Downstream Petroleum and Electrical and Instrumentation businesses all providing double-digit growth. Construction Services segment revenues increased slightly, however, Aboveground Storage Tank revenues increased by almost 44%, partially offset by a lower revenue in Electrical and Instrumentation with the completion of a major contract in the last fiscal year.