Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jeff Blaeser with Morgan Joseph.
Jeff Blaeser - Morgan Joseph & Co Inc.
Are you doing anything specific within working capital to generate more cash going forward? Any expectations for free cash flow this year and maybe next?
Tom Moran
Well, we don’t talk specifically about our free cash flow expectations but the two other things that we have talked about that they were very focused on are the?, in addition to the operating results, is we are focusing on the inventory levels and then also being conservative with the capital expenditures. So, those are really the two main drivers of our focus on free cash flows at this point.
Jeff Blaeser - Morgan Joseph & Co Inc.
And could you give us a better feeler range of where the $25 million to $30 million in cost savings will come from in 2009?
Tom Moran
We are not really breaking those out at this point but really the items that I called out is part of the restructuring process of the big drivers. So, it is really across the board.
Jeff Blaeser - Morgan Joseph & Co Inc.
Have you looked into segmenting price by channel in region have you spoken about the in the past? Is that ingoing or any progress there?
Geoff Eisenberg
We are actively looking at our pricing models in all regards and we are – I will just say we are looking at that currently in terms of what we expect to do going forward. So, it is under analysis.
Jeff Blaeser - Morgan Joseph & Co Inc.
You have no financial covenants on the revolver. Correct?
Geoff Eisenberg
The revolver is asset backed and so it is a function of the levels of inventory that we have.
Operator
Our next question comes from the line of Laura Richardson with BB&T.
Laura Richardson - BB&T Capital Markets
I like the scope of the restructuring that is pretty big. All my questions are going to focus on that. Now, with the distributions end closing, how much less inventory are you going to need in the system and then say they are all going to be done by the end of this year or working through next year?
Geoff Eisenberg
We are going to work through it and we have a range of estimates of less inventory and it is in the $46 million. Calculating the reduction in safety stock it is when you reduce capacity in distribution it is not an exact science.
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