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Now I will provide a few brief comments of our financial performance in our third fiscal quarter. Yesterday we reported our results for the third quarter of our 2012 fiscal year. Consolidated revenue was $244.1 million compared to $236.8 million for the same quarter last year, an increase of 3.1%.The growth in revenue was driven by higher revenue per car as unit sales volume was relatively flat due to the mild winter weather in United States and the lingering recession in the United Kingdom. The growth in revenue per car was driven by a moderate year-over-year increase in used car pricing and more importantly the change in our supplier mix. Non-insurance cars which on average command a higher average selling price than insurance cars comprised a larger portion of our total mix. In North America, the volume from non-insurance cars grew by almost 9% over the same quarter last year, and represented almost 21% of all cars sold during the quarter. The total number of purchased units sold decreased by 9.3% as we continue to migrate contracts in UK from the principal model to the agency model. In UK purchased cars represented 29% of the total volume for the quarter compared to 36% from the same quarter last year. The yard and fleet expenses remained relatively flat consistent with the volume of cars sold. Our gross margin grew from $108.9 million to $115.3 million or 5.9%. General and administrative costs excluding depreciation were $23.6 million compared to $24.8 million for the same quarter last year. Decline was due primarily to the reduced cost associated with the transition of our headquarters to Dallas. Our operating income increased from $82 million to $87.9 million or 7.2%. And our diluted earnings per share increased from $0.35 to $0.43 per share or almost 23%.
Our gross margin percentage increased by 120 basis points while operating margin percentage increased by 130 basis points from same quarter last year, reflecting the beneficial impact of processing more in non-insurance cars.Our EBITDA measured in the classable fashion exceeded $100 million in the quarter or the first time, and EBITDA margin was over 41%. We ended the quarter with $207 million in cash, accounts receivable on vehicle [tolling] cost decline on sequential basis as we sold off winter inventory. During the quarter we generated almost $107 million in operating cash flow, as net income and non-cash expenses generated almost $73 million in cash, the remainder is coming from the [movement] of balance sheet that we sold off winter inventory. We expanded $13.7 million for capital assets in no open markets share repurchases, however, we did repurchase 86,000 shares in connection with our net settlement program which allows those that exercise options to surrender shares and payment of the option stock price and income tax. At the end of the quarter we have approximately 51 million shares remaining in our share repurchase authorization. That concludes my remarks; I’ll now turn the call back over to Jay Adair to add further comments for the quarter. Thank you, Jay. Jay Adair Thank you, Will. So, I’d like to go over the four points with respect to the quarter and add a little color on some of the topics that Will just brought out. I’d like to talk about mix and new business, give you little update on our Overdrive project; I’ll talk about an acquisition made in the recent quarter and then some of things that are going on in the marketing side. So, we will discuss the mix of business moving on the non-insurance side up to 21% in the quarter. This is the quarter that has been unseasonably low in terms of volume due to weather, [I’m just going to spend] everyone I believe on the call knows the quarter has just been one of which the year we had very little weather and our business obviously typically in the past as we have heavy snow and rain in the winter months, build inventory and then we sell that inventory off in Q3. So, we didn’t see the volume coming in through winter but at the same time we were able to grow the non-insurance book of business. I’d anticipate going forward that as things normalize in terms of weather in future years that this is just unseasonably low. We haven't seen this kind of a light, light winter in a long, long time. So, I think that’s a really positive thing to be able to finish the quarter with the numbers that we’ve been able to report and see the growth in non-insurance. Read the rest of this transcript for free on seekingalpha.com