I will now turn the call over to Joe.

Joseph H. Pyne

Thank you, Steve. I’m going to do the prepared remarks. David, Greg and Jim will be available to help us with questions. We are pleased to announce our agreement with Allied Transportation Company. The Allied fleet is comprised of 10 coastwise tank barges, three offshore dry cargo bulk barges and tugboats. The total value of the transaction is approximately $116 million and this includes $10 million that will be paid contingent on developments with the U.S. Farm Bill.

The purchase of Allied’s costal barge and tugboat fleet adds product diversification to our Kirby Offshore Marine segment. 90% of Allied’s tank barges are under term contracts with petrochemical customers. Kirby has existing relationships with most of these customers in our Inland Marine segment. Allied’s offshore tank barge operations will position Kirby to strengthen and to grow and to continue to grow the coastwise petrochemical business.

This is an attractive acquisition for several reasons. Allied is a great platform from which to grow our petrochemical business. We have thoroughly vetted this equipment, which we are buying and are comfortable with it well-maintain. Their synergies from cross selling opportunities which will help us service our inland petrochemical customers as well.

Allied’s revenue and adjusted EBITDA for the last trailing four quarters were approximately $78 million in revenue and $16.1 million in EBITDA. 80% of Allied’s 2011 revenue was driven by the transportation of petrochemicals predominantly under multi-year contracts. The remaining 20% of the 2011 revenue was derived from employing Allied’s three dry cargo barges and the transportation of sugar and other dry products between Florida and East Coast ports.

As many of you know, we already have a position in the coastwise dry bulk business owning four tugboat units with two additional units currently under construction. We expect to close the acquisition in late third quarter or early fourth quarter of this year with a positive earnings impact or with the positive earnings impact on our [2000] results most offset by one-time transaction related expenses.

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