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Today’s call is being recorded and will be available for replay beginning today and ending November 8, 2012 by dialing 855-859-2056 with the confirmation ID number 97669346. An online replay may also be accessed for the next 90 days at the company’s website at delekus.com.Also, as you know on July 12th, our wholly-owned subsidiary Delek Logistics Partners LP filed a registration statement on Form S1 with the US Securities and Exchange Commission relating to its proposed initial public offering of common units representing Limited Partner interest, because no such registration statement has become effective, we will not take questions on this proposed offering during today's call. These securities may not be sold or may offers to buy be accepted prior to the time the registration statement becomes effective. The statements made during this call shall not constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities or any state or jurisdiction in which such an offer solicitation or sell would be unlawful prior the registration of qualification under the Securities Laws of any such state and jurisdiction. Last night, we distributed a press release that provided a summary of our second quarter 2012 results. This press release is available on our corporate website and through various news outlets. On today’s call, Mark will begin by walking through second quarter financial performance and Uzi will follow with a closing strategic comments. With that, I’ll turn the call over to Mark. Mark Cox Thank you Keith and welcome to our team. We’re glad to have you. I would also like to thank everyone on the phone for joining us today. We appreciate you being with us. For the second quarter of 2012, Delek US reported net income of $67.8 million or $1.15 per diluted share. This compares to net income of $62.1 million or $1.08 per diluted share in the second quarter of last year. Excluding the $1.2 million of after-tax expense associated with potential IPO of our Logistics assets, our adjusted net income was $69 million or $1.17 per diluted share. This compares to adjusted net income of $52.9 million or $0.92 per diluted share in the second quarter of 2011. We included a table on our release to help you on the year-over-year adjusted comparisons.
The improvement in our profitability was driven by the full ownership of the El Dorado for the entire quarter as well as solid performance in both our retail and marketing operations. Refining represented nearly 82% of the total contribution margin generated in the period and benefited from a combination of elevated refining margins, improved asphalt pricing and ongoing strong regional demand for refined products.On a combined basis, our refining system had total throughput of approximately 127,000 barrels per day despite the unplanned maintenance outage at the Tyler refinery and a supplier’s pipeline issue that reduced the supplier crude oil to El Dorado. Refining segment contribution margin showed solid growth during the second quarter of 2012 as an increased over 9% to $133.2 million when compared to the year ago period. This was also a very exciting quarter from a shareholder value perspective. First, we announced our third special dividend in the last 14 months and secondly we filed a registration statement to IPO our Logistics assets. And finally, given our strong cash flow, we reduced our net debt to $101.7 million. It was clearly a strong quarter and we hope to continue our focus on the creation of shareholder value as we move into the second half of this year. Turning to the income statement; total operating expenses increased by $6.9 million to $90.1 million in the second quarter when comparing the prior year period. This increase was primarily due to the inclusion of El Dorado refinery operating expense and expenses related to the maintenance issue in Tyler. The increase was partially offset by a reduction in the retail operating expenses. Read the rest of this transcript for free on seekingalpha.com