Question-and-Answer Session
Operator
(Operator instructions) Our first question today is from David Ross, you may ask your question and please state your company name.
David Ross - Stifel Nicolaus
Yes. Good morning gentlemen. It’s Stifel Nicolaus.
Greg Swienton
Good morning.
David Ross - Stifel Nicolaus
Greg, can you talk a little bit about principal service leasing sales right now? And are you seeing a lot of businesses, look at their capital investments, and say, ?Hey, you know what, we don’t need to tie up quite as much capital on our private fleet?? Is that any different than it was six months ago or a year ago? I know it’s a long sales cycle and the sales were just refocused back on, but can you give a little more color on the success we might be having?
Greg Swienton
Sure, Your question really revolves around how we’re seeing things on full service lease sales, and recently, maybe go back 6 to 12 months. I would say that one thing has remained consistent, and that is extreme caution on the part of customers. I think they’re all being very watchful and very careful about their own business, their business volume, and the freight they need to move.
While our pipeline of activity continues to increase, the time that it takes for a customer to make a decision is becoming longer and they are pushing off decisions for as long as they possibly can. I think that has been something that has continued for the last 6 to 12 months. We don’t see that changing yet. And I think until individual customers relative to their own businesses see some confidence in the volumes that they need do to be pulling through their own networks that will remain the case. So that’s something we’re watchful of. But I think in answer to your question, no material change, no real difference, customers are being very cautious. And they’re putting off making those capital decisions because they’re not sure they’ll have an increase in freight to move yet.
David Ross - Stifel Nicolaus
Yes. That makes sense, and usually, I know you guys see the commercial rental side tighten up before you really see a growth on full service leasing activity in normal cycles. Given that commercial rental hasn’t really recovered yet, how long it will lag? Historically, have you seen in the full service leasing market after the rental market improves or pricing tightens, how do you want to look at it? Is it (inaudible) month to a year later in terms of really improving the leasing following the rent-to-own improvement?
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