Question-and-Answer Session
Operator
(Operator Instruction) Your first question comes from the line of David Gold - Sidoti & Company.
David Gold - Sidoti & Company
A couple of questions for you, one, just looking at the three businesses, I guess just the quick peek in the queue shows utilization down at the end of period for I guess all three a little bit. For me, I am just curious on thoughts on basically you have the rest of your sheets. I do not know it sounds like from Adler’s perspective and from the RenTelco perspective things are maybe picking up a bit in July. Would that be about the right based on my comments?
Dennis Kakures
That is a fair comment, yes.
David Gold - Sidoti & Company
Okay. Then the other question or I think maybe you can help us here a little bit is what happens from here to say for the next few months for Mobile Modular. I guess we note, California now has a budget in place but presumably I guess you said basically some of next year would be the big movement for you I guess because you have the bookings season has sort of passed a little bit.
Dennis Kakures
That is accurate. We would expect assuming the state begins to start selling bonds which is what our expectation here in the very short timeframe that because of the schools are starting in late August to early September that the window for most modernization projects will get bumped to next summer. Although we do expect some off season work to commence. We have heard that from some districts.
So, the good news is there is a budget. They will be able to start selling bonds again and there is an adequate supply of bond money to support the backlog of projects, the dynamics revealing that they were just timing.
David Gold - Sidoti & Company
Okay. So from here to there, I guess you see some project completions and more returns from let us say boxes go out.
Dennis Kakures
Well, what we ship here typically you will see most of your returns toward at the end of the second quarter and the beginning of the third quarter. So, once the school year starts you typically do not see a lot of returns in school because they are in session.
So, we will learn more here with our third quarter number but certainly can be some further erosion to the utilization and from Modular. I do not think we believe that it will be very significant related to schools because most of that has trend part of the rezone in the third quarter and then it is really more of the dynamic with residential and non-residential construction activity and if there are pickup there or is there further erosion in that market.
- To read the full transcript on Seeking Alpha, click here »
