Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Andy Shapiro with Lawndale Capital Management. Please go ahead.
Andrew Shapiro – Lawndale Capital Management
Your recent press release indicated that October and November went well. Your script here talked about that as well through November. It’s been snowing. How is December and how are snowplow sales in particular going the rest of the quarter and in early 08 with all of the snow?
Randy J. Kempf
Our December sales were again very strong. We actually closed November at a gross sales number of $1.7 million, which represents that number of 7.5% above quarter-to-quarter last year. Our bookings actually for January also look very strong such, that we have the potential of shipping as much as $1.7 in January as well. Again, that would be dependent upon how much we’re able to ship even with all of the overtime that we are working.
Andrew Shapiro – Lawndale Capital Management
How durable good are these plows? How often do they need to be replaced?
Randy J. Kempf
Well hopefully never. We actually are the only one in the industry that offers a lifetime warranty on the blade. And our warranty costs are very low because of the quality of the product that we use - that we manufacture. The more typical case is a customer will buy a new model ATV, and therefore need a new mount kit and may at that time choose to buy a whole new plow system. But generally, they’ll buy a new ATV and then a new mount kit from us.
Andrew Shapiro – Lawndale Capital Management
So then is your typical customer just a new customer? Or is it a customer who’s made the expenditure to buy a new ATV? Who is your typical new customer?
Randy J. Kempf
A typical new customer would be one who has decided to buy a new ATV. That isn’t to say that some portion of it wouldn’t be some that have owned an ATV for some time and they’ve gotten tired of using their shovel instead of utilizing the investment they’ve made in their ATV and would come back and buy an ATV. Although, quite frankly we work with the dealers, not in a financial way, but work with them to recognize that if the customer would buy the plow when they buy the ATV they could finance the plow along with the ATV, and the cost of the ATV on an up-front basis becomes negligible.
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