Question-and-Answer Session
Operator
(Operator instructions) And our first question will come from George Berman [ph] with GunnAllen [ph].
George Berman – GunnAllen
Good morning gentlemen.
Ronald Farrell
George, how are you?
George Berman – GunnAllen
Very good. It looks like we are almost there.
Ronald Farrell
I believe you are right.
George Berman – GunnAllen
You went on the numbers very nicely, if I take out the depreciation, amortization in the first quarter 4,500 [ph] to 170,000 were actually upwarding income positive. I have a quick question. There was an acquisition made in your industry about a week, 10 days ago by the Blackstone Group. They acquired, I believe, a larger competitor of yours for a pretty decent chunk of money. We’ve done some internal evaluations here and it looks to me like prices paid etcetera on cash flow EBITDA basis, revenues would give your company today a valuation of between $4 a share and $6 a share. The upcoming restructuring recapitalization, how do you feel that will affect your capital base and your debt repayments? Do you see people you mentioned, they are going to convert to new convertible debentures or straight common stock. What kind of illusion do you foresee?
Ronald Farrell
George, at this time, mainly because we have not filed our documents with the SEC yet, but we will be filing of course within the next few days, been advised not to dip into the structure of that transaction, but it will be available to everyone to see probably by the end of the week here. But we’ve been advised because we have not issued the offer to the noteholders yet, that we need to file these papers first. I apologize I can’t get into detail, but I will be making a little bit of a statement after the Q&A that, maybe, can shed a little light on we conceived to be value and maybe that will answer your question at that time.
George Berman – GunnAllen
Okay. A quick follow-up. What is your future contract opportunities look like at this point in time and how would you finance those?
Ronald Farrell
Well, right now, as I had said earlier, our pipeline of either actual bids that have been submitted or bids that are being prepared to submit stands at a little over $600 million. At the same time, looking forward into second half, we expect there to be the opportunity of perhaps somewhere around another $250 million to $300 million of additional bids that should come into play during the second half, and so far has ability to finance that potential growth. Obviously we have a very good relationship and understanding with our senior lender, LSQ, and have been given assurance that provided the growth is there and that the quality of the contract is what is has been in the past that we should have no problem in financing growth certainly through the second half.
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