Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions) Our first question comes from Charlie Strauzer.
Tom Quinlan
Good morning, Charlie.
Charlie Strauzer – CJS Securities
How are you? Miles, just a couple of quick housekeeping questions right in front there; the total amount of variables that you have currently, what was that number?
Miles McHugh
Right now currently or at the end of the year?
Charlie Strauzer – CJS Securities
At the end of year, I’m sorry.
Miles McHugh
At the end of the year, we had about $500 million.
Charlie Strauzer – CJS Securities
And then you’ve talked about the pension of you said $130 million of the expected contribution in 2010, is that correct?
Miles McHugh
No, the $130 million is incremental to the $20 million, $25 million we had this year.
Charlie Strauzer – CJS Securities
So, it will be $150 total contributions.
Miles McHugh
That’s about right.
Charlie Strauzer – CJS Securities
So I assume then that you’re no longer in an over funded situation in the pension, is that correct?
Miles McHugh
That’s correct.
Charlie Strauzer – CJS Securities
Then if you could talk a little bit to, maybe it’s more for Tom, but also you touched briefly on the dividend. Obviously the board I’m sure is probably examining this pretty closely given a lot of the competitors in the industry, as well as other large Fortune 500 companies here, seeking hard work and hard stance on the dividend given the recession. Where was basically the stance right now? I mean it sounds like they want to maintain it, but they’re keeping a pretty close eye on it. What’s causing you to keep the dividend where it is right now?
Miles McHugh
Charlie, I think again, as everyone else in the world is doing, everyone is taking a hard look at it. I think when you see our K filed later today, we again continue to speak to the fact that our goal is to maintain the current level of our dividend that we have.
Now given the various models that we’ve opened, that we reviewed and gone through, as we finish the first quarter here, obviously the Board in December, again in January accrues the dividend of $0.26 a quarter and again we’re going to look at it in each and every quarter, but our goal is to go ahead and maintain it that way.
Again I think some of the things coming out of what we’re saying here today; we didn’t do a great job last year with working capital. So, we’ve got some opportunities there to improve, which obviously again going back to liquidity, that should helps us and benefit us and when you think about working capital in our industry, people who don’t have the assets are relying heavily on working capital, working smoothly for them.
- To read the full transcript on Seeking Alpha, click here »
