Question-and-Answer Session
Operator
Thank you sir. (Operator instructions) We'll go first to Jeff Silber with BMO Capital Markets.
Jeff Silber – BMO Capital Markets
Thank you so much. Thank you for providing us some of the information on the financial services sector and the impact. Can you just go through in terms of some of the other verticals roughly what your exposure is, and if you can provide us any color about what's going on in those end markets, that would be helpful?
Larry Enterline
You know what, what I would say, Jeff, is we broke out financial services principally because of our exposure there. I would say it's a mixed bag across the rest of our verticals. Pharma was strong for us, for instance. But again, I'm not drawing any conclusions. I think from a macro standpoint, our planning is still pretty defensive.
Jeff Silber – BMO Capital Markets
Okay. In terms of the acquisition impact, you mentioned what it was in the quarter. Should we see – are we expecting the same kind of impact from acquisitions in the second quarter as well?
Amy Bobbitt
Yes.
Jeff Silber – BMO Capital Markets
Okay. And just some clarification on taxes, if you do start providing taxes at the full statutory rate, should we be using about a 41% rate?
Amy Bobbitt
Yes, approximately 40%.
Jeff Silber – BMO Capital Markets
Okay, great. I'll jump back into the queue and let somebody else get on. Thanks.
Operator
We'll go next to Chris Cook with Zazove Associates.
Chris Cook – Zazove Associates
Yes, thanks. My question was on tax as well. If you remain profitable, as you expect to, would that mean in 2009 you would begin paying – if you release your revaluation allowance, would you begin paying taxes – cash taxes in 2009?
Amy Bobbitt
No. We have net operating losses that carry forward the first loan period of time, so we would still be in a very minimal cash tax position in 2009.
Chris Cook – Zazove Associates
How big is your total NOL?
Amy Bobbitt
We have substantial NOLs that we can use for up to 20 years.
Chris Cook – Zazove Associates
Okay. So, I guess, you're telling me that cash taxes really shouldn't be a part of the calculus from a free cash flow standpoint for the foreseeable future. Is that –?
Amy Bobbitt
That's correct.
Chris Cook – Zazove Associates
- To read the full transcript on Seeking Alpha, click here »
