Our ratio of total salaries & related expenses to revenue was 65.7%.
Compared to a year ago, we de-levered on SRS due to decelerating revenue growth and a decrease in pass-through revenues, which are offset in our O&G expense.
Total headcount at quarter-end was approximately 50,200, an increase of 100 from a year ago. This reflects hiring in support of growth in areas such as digital, creative and media, as well as the impact of our business dispositions over the past 12 months.
Our ratio of total O&G expenses to revenue was 23.3%, an improvement of 90 basis points from a year ago, which is the result of lower pass-through expenses, and a decrease in our travel & entertainment and telecom expenses.
Slide 8 depicts our operating margin history on a trailing 12-month basis. The most recent data point is 11.9%.
Slide 9 is provided for the clarity of our year-over-year earnings per share comparison. This is the adjustment from diluted earnings per share of $0.24 as reported in the quarter to $0.27 per share as adjusted.
It’s fairly straightforward. Our pre-tax results include a below-the-line loss of $13.1 million related to the sale of small, nonstrategic agencies. As you can see, we had no tax benefit against the loss, so the impact of the $13 million was $0.03 per diluted share.
For the six months, we are adjusting similarly, from $0.29 as reported to $0.32.
Slide 10 is our second-quarter cash flow.
Cash provided by operations was $219 million, compared with $100 million a year ago. The comparison reflects $25 million of cash generated from working capital this year, compared with cash used in working capital of $121 million a year ago. As we have pointed out previously, working capital is volatile by quarter; these numbers are within the range of our previous second quarters.
Investing [activities] used $63 million, mainly in cap-ex.
Our financing activities used $263 million in the quarter, chiefly for dividends and share repurchases, and a decrease in our short-term borrowings.
Our net decrease in cash and marketable securities for the quarter was $119 million.
Moving on to slide 11, the current portion of our balance sheet, we ended the second quarter with $661 million of cash and short-term marketable securities, compared with $675 million a year ago. The comparison to December 31 reflects that our cash level is seasonal and tends to peak at year end. Under our current liabilities, the current portion of long-term debt is our $300 million 2.25% Notes maturing in November of this year.
On slide 12 we show our debt deleveraging from a peak of $2.33 billion in 2007 to $1.82 billion at the most recent quarter end.
In summary, on slide 13, while our year is off to a slower start than expected, we are confident that the quality of our talent, along with our focused investment and cost disciplines, mean that we are well-positioned for continued value creation, and our balance sheet remains an important source of strength.
With that, let me turn it back to Michael.