Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, at this time, we’ll be conducting a question-and-answer session. (Operator Instructions) Our first question comes from the line of Matt Duncan with Stephens.
Matt Duncan – Stephens Inc.
Good morning, guys. First question I’ve got here, just a couple of things on this LNG Project. Mike, if I remember correctly, you had a $3 million contingency in the $16 million charge you guys took in the second quarter. Should we take this $2.5 million charge is meaning you’ve used up all of that contingency or is some of that left?
.
Michael Bradley
That is correct. In the charge that we took in the third quarter is on top of the $16 million and it also contains contingency in that number as well, approximately $1.6 million.
Matt Duncan – Stephens Inc.
So you have $1.6 million in contingencies remaining for finishing off the project and getting tank three done on time.
Michael Bradley
That’s correct.
Matt Duncan – Stephens Inc.
Another question on this job, if I’ve heard correctly, I guess back fill has been awarded force majeure on this job and I’m curious if you can comment whether or not you guys have. My recollection is that tank three’s due date was April 27th; is that still the same date or has there been some pushback for that that would allow you a little more time.
Michael Bradley
Well regarding tanks, I can’t comment on back fill’s force majeure. Regarding tanks one and two, we delivered those tanks both on the original contractual date so we did not need any extension. We have been discussing weather delays on this project. But at this point and time, we’re going to continue to focus on meeting our contractual dates.
Matt Duncan – Stephens Inc.
So you’re still trying, you’re still shooting for the April 27th date then?
Michael Bradley
We’re still shooting to complete the project in April as well as discuss some of the weather delays that we have experienced in the first quarter; I’m sorry, the first quarter this year.
Matt Duncan – Stephens Inc.
Sure. So is it your? I guess, should we be looking at this as though you still expect to have this job completely finished by the end of your fiscal 2008?
Michael Bradley
Yes, there may be some demobe [sic] and clean up that goes on beyond that, but in terms of the tanks, all the work will be completed.
- To read the full transcript on Seeking Alpha, click here »
