Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from David Wells - Avondale Partners.
David Wells - Avondale Partners
First off, I just had a couple of questions regarding the December redemption. I know in your most recent 10K you highlighted what looks like about $174 million of contractual obligations kind of over the next 12 calendar months. I just didn’t know if we had an update on where those stand currently and from that perspective what your cash needs are for the balance of fiscal year 09?
Andrew M. Griffiths
I don’t think there’s been a significant change in that number since then. Of course it does include the $100 million 5% debentures as if they were due within the next 12 months and obviously you just heard from us our latest thinking and plans for those debentures.
David Wells - Avondale Partners
And just thinking about your cash needs to run the business given the current market conditions, do you have a feel for the cash balances that you’d like to keep on hand?
Andrew M. Griffiths
Again I think Boyd in his remarks gave you a sense of the current levels of liquidity that we have, and I think it’s as simple as looking forward and dealing with any cash burn from operations which is likely to happen over the next several quarters, hopefully being able to handle any seasonal fluctuations obviously during the winter quarter, that can be a more challenging time for us from a liquidity standpoint. As Boyd indicated we think we’re well placed to be able to manage through that quite comfortably.
Elden L. Smith
David we’re working on basically two-year forecasts of our cash and monitor this if not weekly, more often and are quite comfortable with the plan that was outlined in Boyd’s presentation that we will have adequate cash to cover any contingencies that we anticipate and that’s anticipate on a very conservative basis.
Andrew M. Griffiths
The one thing I would point out David as you look at the operating cash flow changes in this last quarter, we did have a fairly sizeable build-up of motor home industry, I think $27 million was the number that was mentioned. Obviously we certainly expect to see a reversal in that over the next quarter or so which will help quiet significantly in terms of the overall operating cash flows.
David Wells - Avondale Partners
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