In a similar vein, our Global Power Group had also received a fair number of award letters for projects that are expected to move forward once the client finalized their closing requirements.
As you can see on the second slide, we are adjusting our 2012 guidance for the two business groups. I’ll cover this in more detail at the end of the presentation.
As I said, we continue to expect that our earnings per share in 2012 will be materially higher than they were in 2011.
And now, I’ll turn the presentation over to Franco to cover the second quarter financials.Franco Baseotto Thank you, Kent. If you now turn to slide three, you will see the detail results for the quarter. Our adjusted net income for the quarter was $34.1 million or $0.32 per diluted share, as compared to $43.1 million or $0.36 per share in the average quarter of 2011. The decline was due to lower EBITDA in both business groups. As Kent mentioned, highest sales pursuit costs mainly proposal costs, as well as unfavorable utilization rates contributed to the reduction in EBITDA. However, I’d like to mention three additional items that contributed to the decline in EBITDA and in turn to the declining adjusted net income for the second quarter. The first item is a charge that relate to the penalty component of an adverse tax court decision. The tax authorities had a judicial appeal of an earlier decision that had been issued in our favor and the most recent decision went against us. We are now appealing this most recent decision. However, in the second quarter we increased our tax provision for the second quarter by $1.4 million and we increased our penalties and increased on our recognized tax benefit by $2.8 million. The second item on the list is foreign exchange transaction loss of $3.2 million. This is largely an offset of the transaction gain we are realized in the first quarter of this year and we wanted to mention the Q2 number because in combination with the tax penalty, I just mentioned, it has explained the increase in other deduction on the income statement. Separately, with respect to segment EBITDA, this $3.2 million is roughly spilt between our Engineering, Construction and Global Power Group’s.