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18 PIC Investment Group Inc. financial report PIC is primarily an owner-operator of the companies that are showcased in the preceding pages. Other opportunities outside of the companies in which PIC enjoys direct majority ownership include investments as a minority shareholder and the participation in other financing options such as syndicated loans bridge financing capital asset lending and inventory financing. Investments of this type can take place at any time throughout the year and although small and risky they can be rewarding. A wide variety of terms are possible depending on the needs of the recipient party and the level of risk and resources PIC must commit. Participation in this manner serves to keep PIC Investment Group connected to the markets in which these opportunities are revealed and allows PIC Investment Group to function as an operating company If you have read the 2011 annual report in numerical order and if you realise that PIC is primarily the sum of its parts then you will not be surprised to read that once again PIC had the best financial year in its history. Our consolidated sales grew by over thirty-four million dollars which is our largest year-over-year increase. It would appear that the financial people within PIC were too busy counting beans to go and borrow any new ones. It is with a high level of confidence that I say this is the first year that the PIC Group of companies did not place any new long-term debt. 2011 again saw record growth in the size of our balance sheet. However with the strength of our operating results our consolidated financial leverage is lower than it has ever been. Based on our investment and growth plans for 2012 and beyond I am sure our bankers will be happy to know that we will be looking for money soon. 2011 marks another significant milestone in that the summation of shareholders equity and minority interest has topped one hundred million dollars for the first time. I can remember in the fall of 1994 when Jim Yuel set the audacious goal of reaching one-hundred million dollars in sales. We reached that plateau in 2003. 2005 marked one-hundred million dollars in assets and now 2011 marks one-hundred million in shareholders equity and minority interest. It has been a highlight of my career to have been a part of setting this success story into motion and to marvel at the places that this group of people has taken us. It is amazing that a lot of the team that assembled for the meetings in 1994 is still contributing to our success. Something that speaks to the culture of our companies is that in the past month I have spoken to or seen the three founders Doris Finlay and Rick of this great company that have retired. It is a paradox and a tribute to our leaders that we have such longevity yet are so well positioned for the future. Hugh MacGowan