Preparing for the future would be the theme for both Kreos Aviation and Central Aircraft Maintenance in 2012. Kreos senior team developed a strategic plan for how they wanted to run the company for the next 5 years and a number of decisions were made based on this blueprint. A new King Air 350 was added to the fleet and the King Air 200 was sold. Other aircraft decisions were also made to better position Kreos in this competitive market. These moves have provided Kreos a unique offering and consistency to its customer base. Plans to add larger aircraft were put on hold as Kreos Operations Team focused on its core business aircraft management and executive charters. The fleet will also be expanding with additional jet opportunities that are either finalized or in mid-stream negotiation. Charter activity was very strong in the spring and early fall of 2012 but was unexpectedly slow in the summer. Part of this was aircraft availability for Kreos but also a slowdown with some of our regular customers. Business has increased again in the fall and looks strong for the rest of calendar year 2012 A number of different marketing strategies saw an increase in utilization at the FBO as well. Central Aircraft had its struggles in fiscal 2012 as business was down with a reduction in the number of aircraft under service but a number of changes have been implemented to ensure that its fortunes will rise in 2013 including a new home implementation of their quality management system and attacking alternative sources of revenue and profit. The other large undertaking in 2012again preparing Kreos for the futurewas change within a number of senior leadership positions. Wes Ramsay was hired to take over as Chief Operating Officer in mid-summer. The Kreos Team is excited to have a full time leader on board and Wes is implementing change leadership not just change management to Kreos. The Team at CAM also saw some major changes with a new Director of Maintenance in Harold Peters and a new Quality Manager and Floor Manager. All of these strategic moves will pay dividends as Kreos transitions to the next phase in its growth. Kreos also saw some important developments in Kreos Realty the real estate division. The Kreos hangars are now full. All of the remaining space is filled including an expansion at one hangar for a tenant and a renovation on a 3rd hangar which will be the new home of CAM. The next phase will be looking at future space needs and what solutions will best meet those needs. The Kreos Standard is to be safety driven to provide unmatched customer service and cost effective solutions to meet any clients unique aviation needs. With everyone on the Team working toward this goal and with flawless execution Kreos is on pace to jump to a new growth curve in 2013. Craig Bell 11 PIC INVESTMENT GROUP INC.