Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) We will take our first question coming from of Ted Kundtz of Needham & Co.
Ted Kundtz – Needham & Co.
Hello Alan and Jim, that’s a very strong quarter. Good to see it.
Alan McKim
Thank you.
Ted Kundtz – Needham & Co.
Couple of questions for you if I have got two. One, just on your EBITDA guidance for the year, if I look at what you have done so far and your forecast for Q3, it appears that the Q4 number would come down pretty decently to reach your guidance level. So, I wonder if you could comment on that. I assume you are just being conservative here, but I just wanted to see what your thoughts on the Q4 implications are?
Jim Rutledge
Hi Ted, it is Jim. Again, as you know, our forecasting process is robust. We go through and basically when we do our guidance we put out there what we know we can do and there might be an element of conservatism in that but again what we are saying is with our annual guidance that we definitely see ourselves at the high end of that.
Ted Kundtz – Needham & Co
Okay but is there any reason why fourth quarter would be coming down sort of significantly? It seasonally is sort of down a little bit I guess over in the past but not that much.
Jim Rutledge
Yes. Usually with the winter months, there is a seasonable impact and it is tough to say just how the winter months, which as you know, affects our business the timing of when that all starts and weather. So, perhaps there is the little bit of an element of conservatism but generally there is some seasonal impact in the fourth quarter. Absolutely nothing like the seasonal impact that we see in the first quarter typically as you know but again there might be just a little bit of conservatism in there for that.
Ted Kundtz – Needham & Co.
So, nothing fundamental?
Jim Rutledge
Nothing fundamental.
Ted Kundtz – Needham & Co.
Okay and then one other question. Could you talk about what you are seeing with some of these captives, how is that evolving, those captives some of those captives coming off market and turning to you guys?
Alan McKim
We continue to see opportunities with that said and I think the timing of adding the capacity in our plants is coinciding nicely with some of the bidding opportunities we see out there today, so I think we are on track there.
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