Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Rick Nelson – Stephens Inc.
Rick Nelson – Stephens Inc
Can you talk about same store growth by segment, give us some feel, it looks as if the mix did shift towards service and parts in the quarter. Also, how price increases in equipment to what extent that was reflected in the second quarter results and how much of that we’ll see going forward.
Peter Christianson
First I’d like to clarify myself. I understand that I made a mistake when I was talking about our first six months operations. I had indicated that our operating expenses as a percent of net sales were 13.8% they were not they were 13.1% for the first six months of this year compared to 13% in the first half of 2008. I’m sorry for the error. I just wanted to clear that up.
Talking about our same store sales and basically the sales mix, that’s why we like to give our guidance on an annual basis because of these production cycles and really what we saw was the first quarter being more robust on our sales then actually the mix our parts and service after sales product support remains very steady throughout the year.
As you see the sales revenue number, our top line revenue between our second quarter and our first quarter the second quarter being a little less sales, the equipment sales are really what showed a spike and that will be reflected in that sales mix. Going back to what I originally made a comment on same store sales that’s why it’s so important for us as we talk about same store sales to remember this sales mix.
As far as the price on product coming through and the effect of that, Dave.
David Meyer
What we’re seeing on that is most of the product we delivered in the second quarter there was some price protection involved. A lot of it was pre-sold equipment, locked in, pre-surcharge. What we’re seeing is any price increases right now are basically a pass through. As far as from a lot of the growers standpoint at least on the AG side that the price increases we’re seeing on the equipment side are far less than what they’re seeing in fertilizer, fuel, land prices, cash, things like that. Like I said, it’s fairly reasonable pass through type increases which have had very little effect on our bottom line.
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