Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We will take our first question from David Gold, Sidoti.
David Gold – Sidoti & Co.
Hi, good morning. Couple of follow-up questions, Henrik can you speak a little bit more to the climate or essentially what's happening in janitorial along the lines of and obviously revenue there is stable, but profitability up a bit some of it obviously attributed to OneSource, but, what's happening when you're presumably going or renegotiating on these contacts?
Henrik C. Slipsager
Well, I think a lot of things, it's not one or two things isolated, but the fact of life is that we are working very proactively with clients that wants cutback in their overall expense for their services and in that process we of course want to make sure that we can maintain profitability as much as possible and at the same time we are also trying to reduce some of our overhead associated with the accounts. So, overall if you look at it we will maintain in certain cases improve overall profitability, but not all directly associated with the account.
David Gold – Sidoti & Co.
How do you reduce overhead on the accounts?
Henrik C. Slipsager
Well, some of it is associated with indirect costs associated with the account, the direct expenses associated with an account could be increased productivity, it could be change of specifications for the client in a changing environment, there might be clients that we work with that who will increase new sites. So, we have a bigger base to do the business on. There could be times where you work with a client if they're closing their offices down a week or month and I can't go [inner] on, there is no golden rule. The only golden rule is that we are proactive dealing with those clients in order to first to maintain the client, and second of all maintain profitability, and thirdly, but probably most important make sure the client is happy.
David Gold – Sidoti & Co.
Okay. And then on your slides for janitorial, there is a note about a solid pipeline of new business and, curious if you can add some color there, I would guess in this environment, that would be winning business away market share gains rather than sort of new business to the environment or?
Henrik C. Slipsager
No, but that's accurate. I think the positive in this business if non-existing clients are faced for the challenging environment and using a number of different contractors we are very attractive because we are the only one with a national footprint and naturally they will come to us to see if they with one relationship with one client and achieve some savings, they may not be able to do with the 42 different subcontractors they are using today. So, I think size and footprint in this particular case are driving opportunities.
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