On slide two, we mention that we’re presenting certain non-GAAP financial measures related to adjusted diluted earnings per share, adjusted gross profit, adjusted gross profit as a percentage of net sales and free cash flow. We believe these measures are useful financial measures for providing you with additional insight into our operating performance. Please read this slide for information regarding non-GAAP financial measures, and please see the appendix where you can find reconciliation of these measures to the most recent comparable measures in accordance with GAAP.
Now, I’ll turn the call over to Mark.
Good morning, everyone and thank you for joining the call. Today, I’ll make a few opening comments. Chuck will provide a financial update. Jon Schlemmer will give color on products, markets and operations and then I’ll summarize and we’ll move to Q&A.Regal posted another quarter of record sales and record earnings in the second quarter. Most of our businesses performed at the high end of our expectations and our HVAC business slightly outperformed our expectations, driven mostly by the warm weather. The combination of these results allowed us to exceed our guidance for the quarter. A key highlight for the quarter was our free cash flow at 177% of net income, which represents the fifth consecutive quarter where free cash flow exceeded net income. Other noteworthy topics for the quarter include first, the announcement of our Juarez plant consolidation. Second, we now believe we will exceed our $35 million EPC synergy target and deliver it one year earlier. Third, completing 85% of our transition into our new hermetic motor facility in Taicang, China. Fourth also in China, we began our move into our new generator facility. And finally, we closed on a small Mexican-based acquisition, buying out our existing Unico JV partner with the idea of growing our Unico presence in the oil-rich Mexican Gulf area.
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