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I will now turn it over to Cindy.Cindy Taylor Thank you, Patricia. And thanks to all of you for joining our conference call this morning. I am pleased to report that Oil States generated record quarterly revenues and EBITDA in the third quarter of 2011 and each of our business lines witnessed strong demand for our products and services despite the global economic uncertainty impacting the equity markets and our stock price. Our accommodation segment reported sequential revenue growth of 12% due to organic expansions in the Canadian oil sands region coupled with growing contributions from the MAC and Mountain West acquisitions. Strong US drilling and completion activity grow sequential improvement in our well side services and our tubular services segment. Our offshore products business also performed very well during the quarter, with EBITDA of 27% sequentially on strong margins. We were able to maintain our high backlog levels in the third quarter consistent with our guided book-to-bill ratio of approximately of approximately one time for the second half of 2011. We expect global deepwater spending to continue at strong levels, with additional project opportunities coming from Brazil, West Africa, Southeast Asia, and Australia over the next 12 months. During the third quarter of 2011, oil sites generated earnings of $1.67 per diluted share or $92 million of net income, $192 million of EBITDA and over $900 million in revenues. Consolidated operating income more than doubled to a $144.5 million in the current quarter, up from $70.4 million in the third quarter of 2010, and our gross margins improved to 26% from 24% a year ago. At this time, Bradley will take you through details of our consolidated results and financial position, and then I will conclude our prepared remarks with a discussion of each of our segments and will give you our thoughts on the current market outlook.
Bradley DodsonThank you, Cindy. In the third quarter of 2011, we reported operating income of $144 million on revenues of $903 million. Our net income for the third quarter of 2011 totaled $92 million or $1.67 per diluted share. The comparable third quarter 2010 results were $70 million of operating income on revenues of $588 million. The third quarter 2010 net income totaled $46 million or $0.88 per diluted share. The year-over-year increases in profitability were primarily due to improved earnings from each of our business segments, as well as contributions from the three acquisitions closed in the fourth quarter of 2010. During the third quarter, we reported cash flow from operations of $126 million offset by capital expenditures of $141 million. Our net debt for the third quarter totaled $979 million and our debt cap ratio was approximately 38%. As of September 30th, 2011, the company had approximately $846 million with combined availability under our credit facilities and cash balance totaling $119 million. During the third quarter of 2011, we repurchased 209,000 shares of common stock at an average price of $60.35 for a total cost of $12.6 million. As of September 30th, 2011, we had approximately $87 million available under our authorized share repurchase program which expired in September of 2012. In terms of fourth quarter 2011 guidance, we forecast G&A to be approximately $51 million, net interest expense to be approximately $19 million. Diluted shares are expected to total $55 million in the fourth quarter of 2011 and we currently estimate our effective tax rate for the fourth quarter to be sequentially flat, at approximately 28%. We currently expect to spend a total $635 million in capital expenditures in 2011. Some of this forecast may carry over into early 2012 depending on the timing of those expenditures.
At this time, I’d like to turn the discussion back over to Cindy, who will review the activities in each of our business segments.Cindy Taylor I will lead off with our accommodation segment. Our major oil sands lodges and Australian villages continue to realize strong occupancy levels during the third quarter of 2011. Accommodations revenues increased 78% year-over-year and EBITDA increase of 103% year-over-year primarily due to contributions from the MAC and Mountain West acquisitions, which flows during the fourth quarter of 2010, in addition to a 32% increase in average available rooms and higher RevPAR year-over-year at the company’s oil sands lodges. Read the rest of this transcript for free on seekingalpha.com