Additionally, we may refer to the non-GAAP measures of adjusted EBITDA, and segment contribution margin during this call.Please refer to the press release, or our public filings for a full reconciliation of adjusted EBITDA to net income and definition of segment contribution margin. You may wish to refer to the presentation of results available on our website and investor resources section. We issued a press release this morning and expect to file a quarterly report on Form 10-Q with the Securities Exchange Commission later today. At this time, I’ll turn the call over to Bryan Shinn. Bryan? Bryan Shinn Thanks Brad, and good morning everyone. I’ll begin this morning with the highlights of second quarter results followed by an update on our two business segments, oil and gas proppants, and industrial and specialty products or ISP as we call it. I’ll also provide a progress report on execution against our strategic goals and I’ll turn the call over to Bill who will review our financial results for the second quarter in more detail, and then I’ll update you on our guidance for the second half of 2012. I’m pleased to report that for the second quarter of 2012, U.S. Silica, again delivered strong financial results in line with the high end of the guidance range provided in our last earnings release. Despite the continued instability in parts of the well services market, our second quarter financial results were consistent with first quarter results, and in fact, were marginally better. On a year-over-year basis, second quarter revenues increased by $30.5 million, or 41% to 104.6 million. Second quarter revenues in the oil and gas segment were $54.5 million up 111% compared to second quarter of 2011. As previously noted, U.S. Silica brought over 1 million tons of frac sand and capacity online in late 2011. The majority of which was presold to contract customers. We expect to continue to see benefits from that expansion throughout the remainder of this year.
Revenues in the ISP segment were $50.1 million nearly a 4% increase year-over-year and almost 3% sequentially. We continue to benefit from the ISP segment’s stable performance balancing the more cyclical oil and gas segment.As we said on earlier calls, the ISP segment tends to grow at, or slightly better than GDP, and we continue to see solid performance from these markets which include glass containers, flat glass, paint, specialty chemicals and electronics. Our products eventually wind up in many diverse end users such as beer and wine bottles, automobile windshields, ceramic tiles, wire insulation, roof shingles, cosmetics, toothpaste, tablet computers and mobile phones. Turning to corporate earnings on a year-over-year basis, adjusted EBITDA increased 40% to $37.1 million which was in line with first quarter results. Earnings per share was $0.37, flat over the last quarter, but up 185% year-over-year. We’re very stratified with the second quarter results particularly when majority of companies in the energy sector have reported reduced earnings for the quarter. Our performance underscores the attractiveness of U.S. Silica’s business model which balances the upside growth potential in unconventional drilling with our highly stable industrial markets. But turning to a more detailed review of our business performance, starting with oil and gas. As expected, increased oil and gas sales were the primary driver of corporate year-on-year grow, and we continue to make substantial capital investments in this segment to meet anticipated future demand. Our oil and gas volumes were up 1%, however, our contribution margin per ton fell by $3 or approximately 6% sequentially. As predicted on our first quarter call, our contribution margin was pushed lower by a mix shift as contract customers moved from approximately 70% of our volume in Q1 to 85% in Q2. Contribution margin on contract business was up 2% primarily due to mix between contracts and grades. Read the rest of this transcript for free on seekingalpha.com