2- Each project runs the complete life cycle of a business from inception to liquidation. In the beginning, it usually requires a heavy outlay of cash, gradually becoming self-sustaining, and finally the successful operation will return more cash than it requires. When there are more projects starting than are being wound up, there is an outflow of cash and a strain on the company capital. When more work is being completed than initiated, equipment, inventories, receivables are all being converted into cash. We are here today to talk about how we get the money. There is no need to dwell with this group on the financial practices that the construction industry shares in common with other industries. These we shall briefly mention, in order to devote more time to those methods of financing used by construction companies that are out of the ordinary. To raise permanent capital for expansion, we rarely sell securities to the public. The risks are too great. A construction company is merely a form of legalized gambling. Permanent capital for expansion comes from retained earnings. Little companies become big companies through plowing back profitsmaking pass after pass and letting the winnings ride. Less than 1/10 of 1% of the construction companies have stock in the hands of the public. Only four companies are given an investment rating by Moody's and the highest rating granted is BFairMedium grade. Many construction companies have an enviable record of growth and prosperity, but the sale of stock to the public is not generally considered advisable. The original owners have usually found it desirable to continue betting with their own chips. Temporary capital is necessary to finance the high peaks of construction activity, and much of it is acquired in the usual ways. Borrowing from banks or insurance companies is the principal source of temporary capital. This type of borrowing may be short-term, long-term, secured, unsecured, a loan agreement against each specific project, or a general line of credit that is extended to the company. We used to have six separate loan agreements but last June we consolidated all of our loans into one 5-year agreement. One-half of the loan is re-