Forward-looking statements are not and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at or by which any such performance or results will be achieved. As a result, actual outcomes and results may differ materially from those expressed in forward-looking statements.Furthermore, the company's views, estimates, plans and outlook may change after this conference call. The Company is under no obligation to modify any or all of its statements it has made herein, despite any subsequent changes the Company may make in its views, estimates, plans or outlook for the future. These statements involve risks and uncertainties, are only predictions and may differ materially from actual future events or results. I will now turn the call over to Joseph. Joseph Kwok Thank you, David. I’d like to thank everyone for joining us on today's conference call. In the second quarter of 2012, SeaCube generated strong financial and operating results for our shareholders. Year-to-date, we have committed to invest approximately $250 million in containers. Consistent with our goal of maintaining significant contractual revenue streams, approximately 68% of these containers have already been committed to long-term leases. We expect this investment to continue to positively impact our revenue, earnings, and cash flow. Now, on slide number 3, some of the highlights of our second quarter results. The adjusted net income in the second quarter increased 28% year-over-year to $13.3 million, or $0.66 per share. Our revenue for the quarter increased 21% year-over-year to $49.4 million. Our average utilization for the quarter remains high at 97.8%. Based on our strong and consistent performance, the Board of Directors has approved a dividend of $0.29 per share. This is our fifth increase since going public. SeaCube has now increased its dividend 45% since our IPO in October 2010, for cumulative payout of $1.95 per share.
In the second quarter, we completed a $225 million offering of A-rated Fixed Rate Secured Notes at 4.21% and increased our container revolver facilities to $150 million. With our increased capital availability, we intend to continue pursuing attractive investment opportunities that meet our investment criteria.In the next few slides, I will comment on our market outlook. On slide number 4, first, the increase in liner freight rates this year has surpassed market expectation as carriers have successfully pushed through several general increases. Bunker fuel prices have dropped from a peak in April of $745 per metric ton to the recent $600 per metric ton level, which is also helping the financial situation of the carriers. As a result of better freight rates and lower fuel costs, most carriers are expecting better profitability in the second quarter with continued improvement in the third quarter. At the same time, carriers are concerned about the global economy, which is another reason that most carriers are choosing to lease containers instead of buying. The utilization rate of assisting container fleet is expected to remain high as carriers continue to keep leased containers in their fleets. After the current general cargo shipping season, the demand for dry containers is expected to slowdown in the coming months. On the other hand, as the peak shipping season for refrigerated goods approaches, we expect demand for leased reefer to pick up. On slide number 5, a few comments regarding the supply of containers. Dry container lead times are now about six weeks. Pricing has come down from a recent peak of $2,650 to about $2,500 per TEU. Reefer pricing remains unchanged and production lead times are still 12 to 16 weeks. Demand for reefers is expected to pick up in the third and fourth quarters. Inventory of existing used containers is stable and utilization among the container leasing companies remains high. As a result, secondary market supply has been limited and resale values have been better than expected. On slide number 6, our operating fleet is now more than 580,000 units of equipment. The net book value of SeaCube’s equipment is approximately $1.4 billion, 95% of our containers are on long-term leases and the average remaining lease term is currently 3.8 years. Read the rest of this transcript for free on seekingalpha.com