Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from James Hardiman with Ftn Midwest. Securities Corp.
James Hardiman - Ftn Midwest Securities Corp.
Can you give us an update on your wholesale financing relationship with Textron, given their announcement that they are going to be exiting all of, sort of, power sports in general? And, do you have a replacement lined up for those guys and what is the timetable around that?
Claude Jordan
Our current agreement with Textron in the US ends at the end of calendar year ’09 and in the spring of 2012 in Canada. We are currently talking to a number of providers out there and we have been pleased. There is probably a few more people out there doing floor plan financing than you might think. We don’t have anything to announce yet, but we would see an announcement in maybe mid summer on who our next provider is going to be.
I am aware Textron is selling the part of the floor plan operation we belong to that is profitable and I know Textron is marketing that part of the operation.
James Hardiman - Ftn Midwest Securities Corp.
You feel pretty comfortable that it is going to be one sort of national partner versus trying to fill that gap with a couple of different options?
Claude Jordan
Yes, we would see, you know a national partner; it may or may not be a different partner in Canada, which is something we have done. We have had two different companies one help by helping us in the US and one in Canada.
James Hardiman - Ftn Midwest Securities Corp.
Okay and then in terms of some of your bigger retail partners, there was some scaling back at one of them. I think it was the first quarter last year. We are hearing that they might be getting out of it all together. Is that the case and is that going to have a material impact on you guys going forward?
Claude Jordan
One of our retail partners informed us last year, you are right in the first quarter that they were getting out of the power sports business in about 2/3 of their stores. They have now told us that they intend to exit the power sports business entirely; however, we don’t expect that that will have a negative impact on us going forward into next fiscal year because they didn’t order anything during this fiscal year. So, there won’t be a wholesale impact in F10 since in R09 they didn’t have any wholesale orders from us anyway. They just sold their inventory that they had when they exited the store business last year. So, we don’t expect it to have any impact.
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