John R. HewittThanks, Kevin. Good day, everyone, and thank you for joining us to discuss the results of our first quarter ending September 30, 2011. Results for the first quarter of fiscal 2012 were in line with our expectations. Backlog has increased steadily in recent quarters and bid volumes are strong across our key markets. As I mentioned in our last call, our quarter-to-quarter business can be seasonal due to various factors including weather, client spending patterns and energy demand. However, as we've indicated in our earnings release yesterday, the outlook for our fiscal year is positive. The timing of project awards and commitments to fueled activities in July and August were somewhat slower than anticipated, resulted in lower man hours and under recovery of construction overhead cost in the quarter. Despite this relatively slow start to the year, revenues in man hours have increased every month and are trending in line with our expectations for the fiscal year. As I mentioned, backlog continues to grow and was $426.6 million at the end of the first quarter, the third consecutive quarterly increase. Bookings for the quarter were on par with our best quarter in the last 2 years and proposal volume is robust in all of our business lines. We're particularly pleased with the business volume in the Aboveground Storage Tank and high-voltage electrical markets. Overall, our outlook for fiscal 2012 is very positive. Repair and Maintenance Services segment achieved revenue growth of 28% in the first quarter compared to the same period last year with our Aboveground Storage Tank, Downstream Petroleum and Electrical and Instrumentation businesses all providing double-digit growth. Construction Services segment revenues increased slightly, however, Aboveground Storage Tank revenues increased by almost 44%, partially offset by a lower revenue in Electrical and Instrumentation with the completion of a major contract in the last fiscal year.
We're encourage by a number of positive elements and emerging trends in our core markets. Many of our customers are planning significant projects that Matrix Service is well positioned to capture. Given the strength in our current business lines and strategic expansion opportunities, we are expanding our revolving credit facility from $75 million to $125 million. We have received commitments from our bank group and we expect to close on the new facility early next week. We believe this added capacity supports the company's strategic growth requirements beyond fiscal 2012.As for guidance, we are encouraged by the additions to backlog in the first quarter in the current bidding activity. In addition, our project funnel includes a significant number of material contracts in both the Construction Services and Repair and Maintenance Services segments. As a result, we are increasing the lower end of our revenue guidance from $650 million to $675 million and we are increasing the lower end of our earnings guidance from $0.75 per fully diluted share to $0.80 per fully diluted share. We are holding the top end of our revenue earnings guidance at $725 million and $0.95 per fully diluted share respectively. With that, I'll turn the call over to Kevin to discuss the financial results. Kevin S. Cavanah Thanks, John. In the first quarter ended September 30, 2011, revenues were $169.3 million, an increase of 11.5% versus $151.8 million in the same period last year. We are on $0.13 per fully diluted share in the first quarter compared to $0.12 per fully diluted share in the same period last year. Repair and Maintenance Services segment revenues increased 28.3% to $69.7 million in the quarter compared to $54.3 million in the same period last year. Construction Services segment revenues increased 2.1% to $99.6 million in the first quarter compared to $97.5 million in the same period of last year.
Consolidated gross profit was $18.1 million in the first quarter versus $15.7 million in the first quarter last year. Consolidated gross margins were 10.7% in the first quarter compared to 10.3% in the same period last year. Repair and Maintenance Services gross margins were 10.4% compared to 8% in the same period last year. Construction Services gross margins were 10.9% in the first quarter versus 11.6% in the first quarter last year.Read the rest of this transcript for free on seekingalpha.com