In the current quarter we determined that certain assets, primarily our fleet of private airplanes, will be removed from operations and disposed. Consequently these assets, which also include certain real estate and computer hardware, were written down the fair value, resulting in an impairment of $8.8 million.
Our operating income, excluding the impairment, increased from $60.2 million to $72.3 million or 20.1%. Excluding the beneficial settlement in the U.K. in the second quarter of last year, operating income grew by 23.8%.
We ended the quarter with $127.6 million in cash, accounts receivable grew as we increased inventory.
During the quarter we generated $26.2 million in operating cash flow. We expended $7.8 million for capital assets, and $91.4 million for the repurchase of 1.97 million shares of our common stock. At the end of the quarter, we had 53.3 million shares outstanding on an undiluted basis, and we had 25.5 million shares remaining in our share repurchase authorization.In the quarter, we fixed our interest rate – in the previous quarter we fixed our interest rate with respect to 75% our outstanding term debt at 2.35%. During this quarter we fixed the interest rate with respect to the remaining 25% of our debt at 2.19%, all through interest rate swap arrangements. Our outstanding term debt obligation is $481 million, and we have $100 million available on a revolver.That concludes my short comments; we’ll now turn the call over to Jayson Adair, our CEO for further discussion of our second quarter’s results. Jayson AdairThank you, Will. Thank you, Will. Again, good morning everyone, and welcome to the second quarter call. I’ve got seven points that I want to go over with you this morning. We’ll talk about CapEx, facilities, costs, ASPs, the impairment, give you a little more color on that, the transition and Overdrive.Read the rest of this transcript for free on seekingalpha.com
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