Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from David Gold - Sidoti & Co.
David Gold - Sidoti & Co.
A couple of questions for you, just following up a little bit on Janitorial. We are impressed with the early progress that we’re seeing there and just wanted to go over a couple of things.
One, the incremental of the growth that we’re seeing there, would you attribute that to market share; is it an easing at existing clients? Basically where have you been finding the success there? Part two of that, I think Henrik you commented a little bit on tag work. If you can give a little bit more color there on what’s sort of happening there too?
Henrik Slipsager
I would say that the activity in the Janitorial Division as well as the other divisions, I think more reflects returning to a normal world. There are increasing activity at existing clients as well as taking market share or being successful on bid situations.
The other thing you talked about yourself, tag work. Tag work, I think I said during the second quarter I think we reached the bottom, and this quarter pretty much confirms what we expected when we had the second quarter, that tag work has stabilized at a lower level than it was in the prior period, but at least it’s stabilized and I think we’re well positioned from a tag work point of view, if in fact the economy comes back.
David Gold - Sidoti & Co.
Is that what it takes to get tag work to come back? Is it right now just a function of the economy or is there anything more that we can do to sort of push that along?
Henrik Slipsager
I think the primary push is the economy and people starting to feel comfortable about the future. There were a lot of pretty sizable cutbacks and I hope and believe there will be some openings going forwards, but tag work is primarily a result, especially we’re talking about New York in express, that’s a result of that. Tag work outside the New York, which could be associated with national disasters is pretty flat, nothing has happened.
David Gold - Sidoti & Co.
Then my other favorite question and I’m sure you see this coming is sustainability. Basically sustainability of the progress that you’ve made by way of margins as the economy comes back. What sort of color can you have there? How much of it do you think is sustainable, and how much of it is maybe just a function of we have an easier time, say freezing let’s say salaries right now given the environment?
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