Question-and-Answer Session
Operator
We will now begin the question and answer session. (Operator Instructions) Our first question comes from Arnie Ursaner from CJS Securities. Sir your line is open please go ahead.
Arnold Ursner – CJS Securities
The first question I have is regarding Aitec. I think at the time of acquisition it had roughly $50 million of revenue and your run rate right now based on the current quarter is materially above that. Are currencies one of the issues? Or, are you in fact seeing dramatically higher growth in Aitec?
Philip J. Hawk
I think it’s a combination of the two. I’m just trying to get a hold of that? Would you have the revenue today for Aitec?
Ted W. Owen
Revenue today of about $26 million for the year-to-date which is roughly that $50 million rate or slightly higher. We had $16 million in the quarter.
Philip J. Hawk
Arnie particular in the east should mirror the seasonality that we experienced in the US relative to turnaround season in the fall and the spring.
Arnold Ursner – CJS Securities
My second question relates to the acquisition you have made of LRS. Can you give us a little bit of feel for the customer base they have? Are they as exposed as you are if you will to refineries? A little more on their customer base and you mentioned it would be minimally accretive to 08 but I wanted to get a feel for what sort of revenue and EBITDA and margin we might expect in 09 with a full year behind you?
Philip J. Hawk
I think just answering the second question first I believe we’ll have a much better feel for the outlook of the business as we get involved with the managers and really detail out some of our attractive growth opportunities. It’s our premise that they’ll be very attractive organic growth opportunities there going forward. In addition we may supplement here and there as we go forward with other tuck in type acquisitions. The profitability of the business is approximately 10% EBIT in terms of margins. As I think it mentioned in the earnings release this has been part of a larger essentially an engineering and construction company a GGI group so we’re going to be carving out some of their corporate support as putting our own in place so it may not be completely apples-to-apples but we think it’s an attractive business that’s overall profitability is not all that dissimilar to ours from that standpoint.
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