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 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, except as required by law.With that out of the way, we’d like to turn the tune over to our chairman and chief executive officer, Mr. Bob Whitman. Robert Whitman Thanks Derek. Hello everyone. I’d like to welcome to you our 2012 third quarter conference call, and we really appreciate you joining us. We’re happy to report that we had a very strong third quarter. It turned out to be the strongest third quarter ever for our current business. And we continue to feel very good about the business, about our momentum, and about our outlook for the year and beyond. We also feel confident about the prospects for continued growth in each of our channels and practice areas, and we’ll talk about that a little bit more, and the expected trajectory of our business over the next several years. Consequently, as you may have seen, we recently raised our full year adjusted EBITDA guidance range to $26-27 million from our previous guidance range of between $24 million and $26 million. Today I’d like to just touch on two topics. First, our financial results for the quarter, and second, a review of our momentum, pipeline, and outlook for the year. On the first point, the overview, I’ll start with cash flow. Our cash flow was very strong for the third quarter, and for the trailing four quarters. Our net cash generated, which you see the definition of there in slide three, grew 59% during the third quarter to $5.1 million, which was up from $3.2 million in the third quarter of fiscal 2011, and up from $1.8 million in the third quarter of fiscal ’10.
For the trailing four quarters, our net cash generated increased $18.8 million, which is an increase of $2.8 million, or 17%, compared with the $16 million in the trailing four quarters net cash generated for the same period a year ago. This represents net cash generated per outstanding share of approximately $1.06.Second, a high and increasing percentage of our revenue flowed through to increase adjusted EBITDA income from operations and net income, as you can see in slide four. Adjusted EBITDA increased 10% for the third quarter to $5.8 million, which was up $500,000, or as I mentioned, 10%, from the $5.2 million in adjusted EBITDA achieved for the third quarter of fiscal 2011. This also made the fiscal third quarter adjusted EBITDA our best ever for our current business. As you know, or may recall from our previous calls, we were up against a big comp quarter from last year, where adjusted EBITDA increased $3.2 million, which was 161% compared to the third quarter of 2010, reflecting in significant part the recognition of income from an ongoing government agency contract in last year’s third quarter. So we were very pleased to exceed this and grow adjusted EBITDA 10% for the quarter. I might just make a note, because in the last several quarters we’ve talked about the effect of the big government contract, which has been a great thing. Happy to report that in this last quarter, at the end of the last quarter, we won the rebid for that contract, and so going forward, at least over this next 12 months, it ought to be pretty steady and not something we have to talk about each quarter. Income from operations increased 19% for the third quarter to $3.4 million, up from $2.9 million for the third quarter of fiscal 2011, and net income for the third quarter more than doubled to $1.6 million, or $0.09 a share, up from $700,000 or $0.04 a share in the third quarter of 2011. This reflected both the strength of our operating performance and an improvement in our effective tax rate. And so for the trailing four quarters ended May 26, net income increased $6.1 million to $7.4 million compared with the $1.3 million in trailing four quarters net income for the same period a year ago. Read the rest of this transcript for free on seekingalpha.com