Many of these conditions are beyond our control or influence, any one of which may cause future results to differ materially from the company’s current expectations, and there can be no assurance that the company’s actual future performance will meet management’s expectations. These forward-looking statements are based on management’s current expectations, and we undertake no obligation to update or revise these forward-looking statements to reflect events or circumstances after the date of today’s presentation.With that said, we’d like to turn the presentation over to our chief executive officer and chairman of the board, Mr. Bob Whitman. Robe rt Whitman Thanks Derek. Hello everyone, we appreciate you all joining us today and having so many of you join us today as well. We assume that you all saw the press release. We’re delighted to report that we had a very strong second quarter, actually the strongest second quarter ever for our current business. We continue to feel very good about the business, about our momentum, and our outlook for the year and beyond. We’re also feeling confident about the prospects for continued growth in each of our channels and practice areas and about the expected trajectory of our business over the next several years. Today I’m going to keep my remarks relatively brief to allow plenty of time for questions you might have. I’d like to just touch on three topics. First, the headlines regarding the financial performance of the business during the second quarter. Second, our momentum and outlook for the year and what we see as a very positive trajectory for the business and our growth and earnings potential for this year and the next several years. And finally, our announced $10 million common stock repurchase program. So starting with the headlines about our second quarter’s results, first headline is our free cash flow and at least our net cash generated and cash flow from operations were extremely strong during the quarter and for the trailing four quarters. Our net cash generated - there’s an exhibit that shows the calculation of that - grew 48% during the second quarter to $4.1 million, up from $2.8 million in the second quarter of 2011.
And as you can see in the slide three, for the trailing four quarters ended February 25, our net cash generated increased to $16.9 million, which is an increase of $2.2 million, or 15%, compared with $14.7 million in trailing four quarters cash flow generated in the same period a year ago. This represents net cash generated per outstanding share of approximately $0.95.Our cash flows from operating activities was also very strong. It was $8.6 million for the second quarter. It was unusually high. Our second quarter is typically higher than other quarters due the timing and receipt of our government receivables cash and other cash. As you can also see, for the trailing four quarters, our cash flows from operating activities increased to $16.5 million, which is an increase of $5 million, or 43%, compared with the $11.5 million in the trailing four quarters cash flow that we had from operating activities a year ago. This strong cash flow allowed us to fully repay the outstanding balance on our credit facility, invest in key growth initiatives, and still increase our quarter end cash balances to $8.2 million. The second headline is a high and increasing percentage of revenue flowed through to increases in adjusted EBITDA, income from operations, and net income. As you can see in slide four, adjusted EBITDA increased 46.9% for the second quarter to $5.3 million, up $1.7 million from the $3.6 million in adjusted EBITDA we achieved in the second quarter of fiscal 2011. This also made the second quarter’s adjusted EBITDA our best second quarter ever for the business, and we were particularly pleased with it in as much as we were up against a very tough comp quarter from last year where adjusted EBITDA increased $1.6 million, or 78% compared to the second quarter of 2010. So for us that was a good mark to exceed and to exceed it so much. Read the rest of this transcript for free on seekingalpha.com