Operator: Greetings and welcome to the Norfolk Southern Corporation’s First Quarter 2013 Earnings Conference Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Michael Hostutler, Norfolk Southern Director of Investor Relations. Thank you, Mr. Hostutler. You may begin.
Michael J. Hostutler - Director, IR: Thank you, and good afternoon. Before we begin today's call, I would like to mention a few items. First, the slides of the presenters are available on our website at nscorp.com in the Investors section. Additionally, transcripts and MP3 downloads of today's call will be posted on our website for your convenience. Please be advised that any forward-looking statements made during the course of the call represent our best good faith judgment as to what may occur over the future. Statements that are forward-looking can be identified by the use of words such as believe, expect, anticipate, and project. Our actual results may differ materially from those projected and will be subject to a number of risks and uncertainties, some of which may be outside of our control.
Please refer to our annual and quarterly reports filed with the SEC for discussions of those risks and uncertainties we view as most important. Additionally, keep in mind that all references to reported results, excluding certain adjustments, that is non-GAAP numbers, have been reconciled on our website.
Now, it is my pleasure to introduce Norfolk Southern Chairman, President and CEO, Wick Moorman.
Charles W. Moorman - Chairman, President and CEO: Thank you Michael and good afternoon everyone. It's my pleasure to welcome you to our first quarter 2013 earnings conference call. With me today are several members of our senior team, including Don Seale, our Chief Marketing Officer; Mark Manion, our Chief Operating Officer; and John Rathbone, our Chief Financial Officer, all of whom you will hear from this afternoon.
Our first quarter net income was an all-time best of $450 million or $1.41 per diluted share. It did include a large non-operating land sale. But even without the benefit of this gain, we posted our second-best ever first quarter results in revenues, operating income, net income and earnings per share. In addition, the operating ratio of 74.8% was our second-best for our first quarter.
Looking at our topline revenues for the quarter were $2.7 billion, a decrease of 2% from last year. Overall volumes were up 3% as increases in intermodal units of 9% were offset by a 4% decline in coal traffic and flat merchandise volumes. Don will provide you with all of the revenue and volume details in a few minutes.
On the expanse side, our continued focus on productivity and efficiency resulted in operating expenses remaining flat with last year and John will review all of those details with you.
The big story for the quarter was the quality of our service. The composite service index improved 50 basis points over last year to 83.3%. System average speed was 24.2 miles per hour, a 3% improvement. This increased velocity created additional capacity, and our network is running as fluidly as I have ever seen it. Mark will provide you with all of the operating details in a few minutes.