To improve operational performance, we initiated efforts to  improve efficiency across the organization. Many of these efforts  were outward facing such as strengthening project management  and project execution. Others were internally focused on  productivity and cost savings, providing solid gross margin  improvements year over year. Today, Powell’s cash flow remains strong. We finished this year at roughly the same cash levels as last year all while paying cash for the recent facility expansion projects. Our strong cash  position also allowed us to institute a quarterly cash dividend for the first time in Company history, returning additional value to our shareholders. The U.S. oil and gas market is expected to remain strong with  large capital investments in petrochemical facilities and pipelines.  The abundant natural gas fields have made the U.S. an attractive  source of low-cost energy. These markets have always been a focus and strength for Powell and we are fully engaged with our customers. Based on current developments in Canada, it is clear that our  facility investment in Canada was well-timed. The opportunities  in Canada today are better than they have been in decades.  Significant oil and gas capital investments are planned over the  next ten years and we are well positioned to be a significant  player in this activity. Today we have the only facility in Canada  with the capability to manufacture switchgear and motor control,  fabricate e-Houses and integrate all the electrical equipment at  a single site location — a model that has proved to be a Powell  advantage for many years.  We will continue our focus on operational efficiency including cost  savings, productivity improvements and leverage of resources and  best practices. Although we have made good progress and have  solid traction in this area, there is more work to do. The addition  of a Chief Operating Officer role will help maintain the momentum  behind this effort and our gross margin expansion. As part of our recent infrastructure investments, our enlarged  product development and testing capability in our new Houston  facility provides the backbone for a key component of our future  growth: accelerated product development and an expanded  product portfolio. We believe our core markets of oil and gas in North America  will remain robust through the planning horizon. With a strong  foundation established in the domestic market, we expect to  increase focus on opportunities outside North America. While  our growth plan will include serving our current customers doing  business internationally, we also look to establish relationships  with new customers that have not yet engaged with Powell. These efforts, combined with the core values and strengths of the  Company, will continue our trajectory of taking Powell successfully  to the next level of growth and performance. Thank you for your  continued interest, support and trust in Powell. Michael A. Lucas  President and CEO Looking Ahead 3