Question-and-Answer Session
Operator
Thank you very much. (Operator Instructions). And your first question comes from the line of Michael Hoffman of WSI. Please proceed.
Michael E. Hoffman – Wunderlich Securities, Inc.
Hi. Good morning and congratulations on a terrific quarter. As you think through the results run that guidance, free cash flow ends up well above the start of the year at 170 kind of nudging it up towards 180 in April. And it looks like you’re sure getting to the 190 range, 200 range. Do you use all of that just to do share buyback and acquisitions, or do we see any thoughts about revising the capital spending plan in light of bonus depreciation and 2010 emissions issues?
Worthing F. Jackman
All of the above. Obviously, we will still to do acquisition funding the second half of the year. Share repurchases as you may recall, when we turn this share repurchase on we typically bought between 5% and 6% of our stock over a 12-month period that will be about 4 million to 5 million shares over 12-month period we now bought back. Again about 1.3 million shares already we still expect to be active in the second half of the year. And again regarding CapEx, you’re right. We may look to pull some new trucks that we otherwise would have gotten in the first part of next year into late Q4 in order to get this year’s pricing as well as this year’s engine and also get the bonus depreciation. But that said, that would only be perhaps $10 million or $15 million of CapEx which is still place reported free cash flow in the 185 to 190 range.
Michael E. Hoffman – Wunderlich Securities, Inc.
Okay. And that’s all additive to the free cash flow though in 2010?
Worthing F. Jackman
Right. Pulling CapEx from ten into nine.
Michael E. Hoffman – Wunderlich Securities, Inc.
Right. And then as you think about the extraordinary strength of this cash flow, is there a point where you anticipate or contemplate a dividend or what’s the thought process with regards to the Board in that?
Worthing F. Jackman
Yeah. Thought process hasn’t changed and that is, we like the flexibility of share repurchase as a way to return cash that likely we did in March of ’08. The ability to turn that off when we see spikes in acquisition activity that exceeds the averages and you combine that flexibility with still remaining uncertainty around the tax code and it still seems prudent at this point in time to keep returning cash through a share repurchase.
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