As is customary, let me reiterate the Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. The following discussion contains forward-looking statements that are subject to risks and uncertainties including those risks set forth in Metalico's filings with the SEC. These risks could cause actual results for the current period and beyond to differ materially from those expressed in the forward-looking statements made by or on behalf of the company.We refer you to Metalico's periodic reports that are filed from time to time with the SEC. For a more detailed discussion of the forward-looking statements and a discussion of the factors that could cause results to differ materially from the discussion today, please refer to the risk factor discussion and Metalico's Form 10-K for 2009, which is also available online. In addition, during the course of this conference call, certain non-GAAP financial measures maybe described which should be considered in addition to and not in lieu of comparable GAAP financial measures. The company has provided reconciliations of these non-GAAP measures to what it believes are the most directly comparable GAAP measures in the earnings release. Thank you, ladies and gentlemen. I would now like to turn the call over to Mr. Carlos Aguero, President and Chief Executive Officer of Metalico. Please go ahead. Carlos Aguero Good morning and thank you for joining today's call. With me here today is Michael Drury, our Executive Vice President. Following the presentation, we'll be available to answer any questions. We will also post a transcript of our remarks and the question-and-answer session on the Metalico website when the transcript becomes available after the call. This morning Metalico released financial results for the third quarter of 2010 showing improvement in sales, revenue, operating income and EBITDA as compared to the same period in 2009. The results also show improvements over the second quarter 2010 in operating income, EBITDA and net income even with the small decline in sales. This marks our third consecutive period of increase in net income since the declared end of the economic crisis.
Let’s go to quarter’s highlights compared to 2009. Sales increased 50% to 137 million, an increase of $45.5 million or 91.5 million reported. EBITDA rose 22% to 13.8 compared to 11.3, operating income increased 25% to 9.6 million compared to operating income of 7.7. Net income was 4.5 million or $0.10 per diluted share compared to adjusted net income of 2.7 or $0.08 per diluted share. The prior year’s reported net income of 5.1 million or $0.12 benefited from one-time gain, net of income taxes and fair value adjustments totaling $2.4 million representing $0.04 per share compared to a benefit of $168,000 for similar items that occurred in the current quarter.Unit volume shipped increased 14% for ferrous scrap and 34% for non-ferrous scrap. Platinum group metals, PGM’s unit volumes increased total 32% and product shipments decreased by 15% however operating income in the lead segment increased by 57%. The company’s scrap metal segment generated 8.6 million in operating income in the quarter compared to 7.8 million last year. The lead fabricating segment generated 1.1 million of operating income compared to 700,000 in the prior year and 15% fewer shipments. Compared sequentially with the second quarter of 2010, sales declined slightly but most measures of operating performance improved. Sales of $137 million decreased 5% from 144.6, EBITDA increased 29% to 13.8 from 10.7. Operating income increased 43% to $9.6 million from 6.7. Net income of $4.5 million increased slightly from net income of 4.4 million which had benefited by a $2.1 million financial instrument fair value of adjustment. Unit volumes shipped increased 16% for ferrous scrap and 1% for non-ferrous scrap. PGM unit volumes purchased and shipped fell by 13 and 19% respectively. Lead fabricating segment operating income improved substantially on a 2% reduction in product shipments. Compared to last year, interest expense fell by 4.8 million while total debt increased $9.7 million since last September, reflecting lower borrowing costs under our new revolving credit facility. Read the rest of this transcript for free on seekingalpha.com