Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Buzz Zaino – Royce & Associates.
Buzz Zaino – Royce & Associates
Can we address cash flow? Are we cash flow positive now or do we expect that to progress towards that as it goes on?
Thomas W. Bennet, Jr.
We’re cash flow positive as [inaudible] before, our operating cash flow for the year was a positive about $3.9 million and our net outstanding on our credit facilities dropped by a similar amount.
Buzz Zaino – Royce & Associates
There is a seasonality to your business during the winter months where business is not as robust if one, is that true? And two, if that is true would you be cash flow positive in that environment?
Christopher P. Vincze
The seasonality decline usually occurs during our third quarter. In Q1 which we’re just in the process of completing and Q2 are generally very positive quarters for the firm. Tom, would you like to address that?
Thomas W. Bennet, Jr.
Our cash flow varies throughout the year. I haven’t studied the seasonality curve of it in a way that I could interpolate an answer for your question. You’ll notice that as far as our quarters go that cash flow typically follows our revenue and accounts receivable balances so that the best thing to monitor as far as cash flow is not necessarily seasonality but I would look at our account receivable changes as they relate to revenue as a measure of cash flow.
Buzz Zaino – Royce & Associates
Obviously we have an election coming up, both candidates seem to have environmental concerns, how much of your business would be somewhat reflective of government activity? Any one philosophy better suited to your business?
Christopher P. Vincze
According to both of the platforms provided by the candidates they both appear to be environmental friendly. Now, historical business for us, in particular in our environmental divisions have been regulatory oriented or certainly they were major drivers in our opportunities but over time that really has changed to more market dynamics, sustainability, more efficient operating and maintenance of conglomerates in which case impairment issues are dealt with more proactively. So, while I do believe some sort of environmental regulatory process climate change issues driven by the federal government will certainly support our business we really do believe the general pursuit of a greener, cleaner, better performing operation is really what’s driving our industry right now.
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