Question-and-Answer Session
Operator
(Operator Instructions) We’ll go first to Rich Wesolowski - Sidoti & Company.
Rich Wesolowski - Sidoti & Company
Alan, what type of contribution does the guidance anticipate for the capacity added throughout the year? It sounded like you were a little hazy towards the fourth quarter to mid-2009 on that last 29,000 tons?
Alan S. McKim
In regard to the expansion of the incineration capacity, the 29,000 well, we had mentioned that we’ve got 7,000 in now and we’ll have an additional 14 coming into the second quarter, and then the remaining 29 will be at the latter half of this year and into the midpoint of next year.
Rich Wesolowski - Sidoti & Company
I’m just wondering how you go about handicapping? How much that’s going to contribute 2008 versus 2009?
James M. Rutledge
Embedded in the guidance and our growth in revenues, is the capability to be able to process waste streams through our incinerators that includes this expansion, because we’re at – in the U.S. we are at a very high utilization level. So, I just wanted to make sure that I understood your question there, but that’s how we’re being able to satisfy our growth rate into 2008.
Rich Wesolowski - Sidoti & Company
Okay, and I gather from the EBITDA margin and the incremental EBITDA margin implied, in the first quarter guidance, that you will be spreading the maintenance shutdowns a little more evenly across the year than was the case in 2007?
Alan S. McKim
Well, we certainly have tried to do that but we did it once again run fairly strong into the end of the year, which is typically the generation cycle that our customers have and so we have been in a long outage in Texas right now, close to three weeks on one of our plants down there.
But that is in our guidance, but we are not going to see as many plants in the first quarter down as we did last year’s first quarter, but we did have an extended shutdown at one of our kilns that was due for a longer maintenance.
Rich Wesolowski - Sidoti & Company
Can you elaborate on the state of the landfill’s today versus the year ago how many are contributing up to your expectations, how many material low has there been a regulatory changes or at least the regulatory changes that you had sited in the last call are those panning out in extra business, etc.
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