During today’s call references may be made to certain non-GAAP financial measures as defined by Regulation G of the Securities and Exchange Commission. Discussion of management’s use of these measures and the definitions of these are contained in this morning’s press release. Reconciliation to adjusted EPS and adjusted EBITDA are included in today’s press release. The full text of our second quarter release, along with supporting financial tables, is available on our website www.imax.com. Today’s conference call is being webcast in its entirety on our website.Today Rich will provide a brief overview of the second quarter and the trends we are seeing in our business, and Joe will review our Q2 financial results in detail. With that, let me now turn the call over to Rich Gelfond. Rich Gelfond Thanks, Heather. The second quarter of 2010 leveraged our strong first quarter box-office performance into another record quarter for fewer signings. We should propel significant network and EBITDA growth in 2010, ‘11 and beyond. Through the first half of 2010, we sign deals for three times as many systems as we did for the whole year and all of 2009, and through today have backlog, which should translate into commercial multiplex network of over 50% when installed. This coupled with our promising 2011 film slate, is providing us with an increase level of visibility into future business. As Heather mentioned, we’ve prepared some slides which you can find in the IR section of our website, which help to illustrate and quantify the value inherent in our year-to-date dealer signing activity. Before putting this into context, let me give you a brief overview of the quarter and then Joe will give you more detail. We experienced strong topline growth across all our key business segments, resulting in total revenue of $55.6 million for the quarter, up 38% compared to $40.4 million in last years period.
We generated operating cash flow of $29 million, compared to cash breakeven in last year’s second quarter. Our trailing 12-month EBITDA increased by 172% to $92.8 million versus the $34 million in the comparable period last year.We retired another $15 million of bank debt in the quarter, putting us on a net debt versus debt positive basis of $12 million net cash. A net income for the was $13.3 million or $0.20 per share, compared to $2.6 million or $0.05 a share last year. Excluding variable compensation, net income increased 35% to $8.4 million, resulting an EPS of $0.13, item such as negative foreign exchange comparison versus last year and expenses associated with new business initiative and a significant level of new theater deal sign today, negatively impacted the second quarter by about $0.03 a share, which Joe will review in more detail. In the second quarter, we signed deals for 57 theater systems, compared to seven in last year’s second quarter. Through the first six months we have signed deals for 98 systems, that’s 10 times the level of systems signings as compared to the same period last year. And since quarter end we have signed deals for another 20 theater systems for a total of 118 systems signed year-to-date. Based on our signings to date and continued discussions we are having with exhibitors, our belief is that we are likely on pace to exceed our previous system signing record 144 systems in 2007, watch report of our December 2007 JV deal with AMC. What is particularly gratifying about all these signing this the diverse mix of deals we are seeing from all around the world. While many our new customers approximately 80% have been with repeat customers. We believe this demonstrates that once client in the IMAX business and see the impact IMAX can have on their complexes, they are often eager to reinvest in additional locations or upgrade to digital.
We tend to see this in the Hollywood film business as well. Be it Chris Nolan, Tim Burton, David Heyman, once been in the IMAX business they tend enjoy the experience, understand the economics and come back for more. As a result of these signings, our backlog at quarter end totaled a 187 systems, which is up sequentially versus Q1 and year-over-year.In addition, this morning we increased our installation guidance for 2010, by roughly 20% and we now expect to end 2010 with approximately 362 commercial multiplex systems, up 26% compared to year-end 2009. We have also provided our current outlook for system installations in 2011 based on our current backlog as it stands today. Our signings are providing the catalyst for continued network expansion, which should ultimately read the continued EBITDA and recurring revenue growth, which brings me to slide five of the presentation online in the IR section of our website. I would just like to take a couple of minutes and walk in detail through what our 118 systems signings so far this year mean for IMAX. Read the rest of this transcript for free on seekingalpha.com