The decline in income before income taxes for the three months was primarily the result of lower margins on contracts which have replaced our previous Afghanistan project, a negative impact of approximately $2.7 million.

The backlog in the Water Resources Division was $92.0 million as of July 31, 2012, compared to $93.3 million as of April 30, 2012, and $102.6 million as of July 31, 2011.
Inliner Division Three Months Six Months
  Ended July 31, Ended July 31,
(in thousands) 2012 2011 2012 2011
Revenues  $ 35,199  $ 31,593  $ 69,567  $ 60,648
Income before income taxes  3,221  2,649  5,136  5,385

Higher Inliner Division revenues reflected improvements across most of the geographic regions in which the Division operates. The increase in income before income taxes for Q2 FY2013 was primarily driven by increased volume and improved mix of business. 

The backlog in the Inliner Division was $65.2 million as of July 31, 2012, compared to $78.0 million as of April 30, 2012, and $82.0 million as of July 31, 2011. We anticipate our backlog to improve as we renegotiate annual contracts.
Heavy Civil Division Three Months Six Months
  Ended July 31, Ended July 31,
(in thousands) 2012 2011 2012 2011
Revenues  $ 76,380  $ 92,116  $ 149,251  $ 176,772
Income (loss) before income taxes  (8,843)  (1,925)  (16,145)  322

The overall decline in revenues for the Heavy Civil Division in Q2 FY2013 was primarily comprised of decreases of $22.7 million for our plant construction work and increases of $8.0 million for our pipeline construction work. We are continuing our efforts to be more selective in the projects that we compete for, seeking higher margin opportunities. We have significantly reduced our plant construction operations in most areas of the country as a result. 

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