In the quarter ferrous and non-ferrous metals recycling contributed 95% of consolidated operating income on 68% of revenue. Demand on modern buyers of scrap has been on and off. Scrap supplies are tight and to our knowledge, no one in our industry is operating even close to capacity.

We shipped 140000 gross tons in the quarter versus 145000 gross tons a year ago, a decrease of 3.5%. After a soft July, demand and pricing for August has rebounded significantly. PGM recycling margins continue to be impacted by competition and volatile prices. Molybdenum selling prices remain under pressure throughout the quarter, but were partly offset by strong quarter in sales. The Lead fabricating business continues to improve profitability and demand has improved. Sequential pounds sold were up by 16%, 12.3 million pounds with an average selling price of a $1.54 per pound. However, quarter to quarter volume sold was down 7%.

As we commented previously, stronger consumption and production in the economy will help to generate more scrap and further industry consolidation would help rationalize conditions of supply in the scrap market. At Metalico, we are all focused on improving scrap margins and have employed discipline to achieve this objective.

Now let’s review some operating results. Our sequential operating performance declined from the first quarter of 2012. Net income for the second quarter benefited by 4.6 million for a one-time realized gain on settlement offset in pride by $1.7 million write-off and receivables owed by a customer that filed bankruptcy during the quarter.

Focusing on the highlights. Sales fell 9.7% to $148 million from 164. Operating income declined to $1.6 million from $5.9 million. Net income was $2.9 million versus $2.2 million. Earnings per share $0.06 compared to earnings per share of $0.05. EBITDA was down to $9.8 million from $10.3 Million. Unit volume shipped increased by 2.3% for ferrous scrap but fell 11.3% for non-ferrous scrap. PGM troy ounces recycled fell to 10,400 ounces from 20,800 ounces. Minor Metal shipments declined to 600,000 pounds from 631,000 pounds and lead segment operating income more than doubled to 1.1 million from 520,000.

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