Chris Hagan – Executive Vice President and Chief Financial OfficerThank you, Steve. During this conference call, we will make references to EBITDA, which is a non-GAAP financial measure. A reconciliation of the non-GAAP measure to the applicable GAAP measure can be found in our current earnings release, a copy of which is located on our website, www.dawson3d.com. As you know, Dawson and TGC Industries have entered into a definitive merger agreement in which subject to the terms and conditions set forth in the merger agreement, Dawson will acquire TGC in a tax-free stock-for-stock transaction. Dawson files with the Securities and Exchange Commission and registration statement on Form S-4 that included a joint proxy statement of Dawson and TGC that also constitutes a prospectus of Dawson. Investors and security holders are urged to read the joint proxy statement prospectus as amended filed with the SEC which can be obtained free from the SEC’s website, www.sec.gov and from the company’s website. Dawson-TGC, their directors, executive officers, and certain members of management and their employees may be considered participants in the solicitation of proxies from the shareholders in connection with the proposed transaction. This is described further in the proxy statement prospectus filed with the SEC. Today, we reported revenues of $98,033,000 for the quarter ending June 30, 2011, our third quarter of fiscal 2011 compared to $61,178,000 for the same quarter in fiscal 2010, an increase of 60%. Net income for the third quarter of fiscal 2011 was $334,000 compared to net loss of $1,019,000 for the same quarter of fiscal 2010. Earnings per share for the third quarter of fiscal 2011 were $0.04 compared to a loss per share of $0.13 for the third quarter of fiscal 2010. EBITDA for the third quarter of fiscal 2011 was $8,821,000 compared to $5,591,000 in the same quarter of fiscal 2010, an increase of 58%.
For the nine months ended June 30, 2011, we reported revenues of $249,023,000 compared to $146,093,000 for the nine months ended June 30, 2010, an increase of 70%. Net loss for the period decreased to $6,190,000 in 2011 from $7,941,000 in 2010. Loss per share for the first nine months of fiscal 2011 was $0.79 compared to a loss per share of $1.02 for the first nine months of fiscal 2010. EBITDA for the first nine months of fiscal 2011 increased to $14,939,000 compared to $7,868,000 in the same period of fiscal 2010, an increase of 90%.Revenues in the third quarter and first nine months of fiscal 2011 increased significantly over the same period of fiscal 2010 due to increase in active crew count to 14 working crews including the two formally provisioned crews added during the second fiscal quarter and significantly higher third party charges which have constituted one half of the growth in revenues during these periods. Third party charges are related to the company’s use of helicopter support services, specialized survey technologies and dynamic energy sources in areas of limited access, such as the Appalachian Basin, Oklahoma, East Texas and Arkansas. We are reimbursed for these expenses by our clients. Our third quarter and nine months results also included approximately $1,465,000 and $2,421,000, or $0.19 per share and $0.31 per share, respectively of expenses related to its previously announced merger with TGC Industries and respective increases of $884,000 and $2,579,000 of depreciation charges related to the Company's continued investment in new recording equipment and energy source units. During the third fiscal quarter, the company’s Board of Directors approved a $5 million increase to the company's capital budget and approved the purchase of the previously leased OYO GSR equipment, bringing the total amount of the fiscal 2011 capital budget to $61,918,000. To date, $56,264,000 of the capital budget has been spent primarily to purchase a 2000-station OYO GSR four-channel recording system along with three-component geophones, 24,850 single-channel OYO GSR recording boxes, additional conventional geophones, cables for existing systems, vehicles to improve our fleet and ten INOVA vibrator energy source units. The remaining balance of the capital budget will be used for maintenance capital purposes. Steve? Read the rest of this transcript for free on seekingalpha.com