Martin M. Koffel
In addition to Tom Hicks, the team here with me in San Francisco includes: Gary Jandegian, President of Infrastructure and Environment; Randy Wotring, President of Federal Services; Bob Zaist, President of Energy and Construction; Martin Tanzer, Executive Vice President of Marketing; Reed Brimhall, Corporate Controller and Chief Accounting Officer; and Sam Ramraj, Vice President of Investor Relations.
As you will have seen in our earnings press release, while we continued to perform very well operationally, accounting rules required us to take a non-cash goodwill impairment charge during the third quarter. The impairment primarily is due to the volatile stock market conditions in recent months. And while significant in size, it has no effect on our cash position and no bearing on our operational performance or our outlook for the business itself.
In fact, our third quarter operating results were strong. Our revenues were $2.47 billion, an increase of 6% from the third quarter of last year. Including the goodwill impairment charge, we reported a net loss at $623.1 million or $8.05 per share but excluding this charge net income was $76.2 million, that’s up 8% from the third quarter 2010 and earnings per share excluding the charge were $0.98, up 13% from last year. A reconciliation of net income and earnings per share with and without the goodwill impairment charge is provided in the reconciliation schedule that is available on our website at
and in our earnings press release.
Our cash flow continues to be robust and we generated $100 million in cash from operations during the third quarter and $363 million during the first nine months of 2011. At the end of September our total book of business was $29 billion, an increase of $272 million from the end of the second quarter. Our operating results reflect the benefits of our mix of business across four market sectors. Third quarter revenues from the industrial and commercial sector increased 20% compared to last year. This is the third consecutive quarter that our industrial and commercial revenues have grown by at least 20% over the prior year period. Demand for work under our master service agreement with major multinationals remains particularly high.