Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Joel Havard with Hilliard Lyons.
Joel Havard – Hilliard Lyons
I guess congratulations first for defining market gravity as long as you all have. It looks like it’s catching up just a bit here. The credits number you’ve referenced Murray make sure I got them right. 82% approval rate in Q3 this year versus 93% a year ago, did I write that down?
Murray Gross
95%.
Joel Havard – Hilliard Lyons
95%, and that’s into an environment were about 85% of your business is historically credit driven?
Murray Gross
Yes, correct.
Joel Havard – Hilliard Lyons
Will presume that gets a little tougher yet with all the cleverly dancing on the part of consumer lenders. I’m trying to make this the only sort macro theoretical question, but how do you work your way through that?
Murray Gross
First, before I answer the question, let me quantify that for you. It was a total of $5 million in credit rejects that hit is. If it had not been for that caliber, we would have one hell of a quarter in new orders and it wasn’t a total of $5 million, it was additional $5 million. So, what we are doing now as we are?
Joel Havard – Hilliard Lyons
But those were orders that don’t welcome jobs?
Murray Gross
That it’s correct. Those are the orders which we sold and did not become jobs. Now, have got now and obtained paying permission from The Home Depot to use another financing source or whatever financing sources, after they’ve had the first look at the deal and the cost.
Joel Havard – Hilliard Lyons
And this is normally through that The Depot credits card?
Murray Gross
That’s correct.
Joel Havard – Hilliard Lyons
And is that a City product?
Murray Gross
Yes. One of the things that cost us, some constellation was Depot had two credit programs; one was their interest credit card program and I want to grammatically correct here, it was interest credit program and then they had their regular installment loan program.
Joel Havard – Hilliard Lyons
Is that also is City managed?
Murray Gross
That was the City managed program, and they discontinued that program, I’m going to tell you May and so we look with that all through the quarter, and that probably impacted our sales even somewhat for the true installment loan volume. So, we are now working on a couple of new sources to replace that business. Whether it will have a serious impact or not it’s too soon to tell, this was actually the first week we kicked it off and so what the result will I won’t be able to report.?
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