Mike LittleThank you, Chris. Hello, everyone, and thank you for joining us today. With respect to the second quarter, as previously stated, we had anticipated that it would be a challenging quarter; due to the planned fewer exhibited days, and lower average daily attendance. These reductions were expected due to the seasonality of our permanent shows, and the less-than-full utilization of our traveling shows. The revenue decreased for the quarter by 40% to 8.2 million from 13.7 million last year due to four fewer exhibitions presented. And as a result, lower overall attendance. We had over 1,099 operating days in the second quarter fiscal 2012 compared to 1,757 operating days in second quarter of 2011. This reduction in revenue and operating days were the result of exhibiting our self-run Bodies exhibits and the utilization of our remaining shows. Gross profit was 3 1/2 million compared to 4.9 million in the previous year, a 28.5% decline. While gross profit did decline, [inaudible] gross profit margins improved significantly this year from 42.9% from 36% in fiscal 2011. As the increase in the performance of our permanent locations and selling off more the touring exhibits within our overall exhibition portfolio, provided us with greater stability and better cost management. EBITDA for the quarter came in at a loss of 1.1 million, adjusting for one-time non-reoccurring litigation and impairment charges [inaudible]. Our adjusted positive EBITDA, we had an adjusted – we had a positive adjusted EBITDA for the quarter. We were encouraged that the adjusted EBITDA remained positive, as we controlled expenses, although it still fell 900,000 [inaudible] fall off in total revenue. In addition, we were pleased that our cash balance year-to-date remains positive, even with the capital expenditures in the second quarter for our new exhibit in New York. Our GAAP net losses, inclusive of the charges that I will explain momentarily, was 1.8 million or a negative $0.04 per diluted share compared to a net loss of 200,000 or $0.00 per diluted share in the second fiscal quarter of 2011.
Delving into the results a little further, exhibition revenues decreased 42% to 7.3 million from 12.6 million in the year ago period. We had 658 fewer operating days, which was a 37 [inaudible] decrease and a 216-person drop in average daily attendance, which was a 32% decrease, offset slightly by a 6.2% increase in our average ticket price.Merchandise and other revenue decreased 18% to 900,000 during the second quarter of fiscal 2012 from 1.1 million in the same period last year. While merchandise revenue declined on an annual basis, spending at our exhibits on a per-visitor basis increased during the period. We think that over time, merchandise revenue will provide a strong contribution to gross profits, and this remains one of our key operationally focused areas. The merchandise changes we have already implemented, including adjusting product mix at our permanent venues, installing a new inventory management system to control cost and manage inventory levels, and renegotiate vendor contracts to reduce cost and improved margins are clearly paying off. And finally, we began – we just recently began introducing new Titanic products, well in advance of the 100 anniversary next April, which we are hopeful will be well received by our customer. Exhibition cost fell 48.2% to 4.4 million compared to 8.5 million in the second quarter of 2011. Once again, we benefited from exiting the self-operating Body touring segments in our business, and should experience incremental year-over-year benefits over the next two quarters with [inaudible] in the market. Read the rest of this transcript for free on seekingalpha.com