Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Brent Levy - Jefferies & Company.
Brent Levy - Jefferies & Company
In terms of the potential of the funding gap, you guys have moved CapEx around a little bit and a number of the other numbers here. Do you see any potential funding gap as you get into 2009 and when might that occur and I suppose the other thing is how low do you the cash and revolver availability get at their lowest point in 2009 the way you guys are drawing your lines right now?
Bradley W. Harris
The tightest time on the line is going to be in the first and second quarter of 2009. Right now we currently have availability on the line of $28 million that we talked out. Our current cash balance is about $80 million although as we’ve described we have a healthy CapEx program for the balance of the year. I would expect us to be perhaps approaching the line in that first and second quarter timeframe right now.
Current projections would say that we don’t go into the lines and we should continue to have that $28 million of availability at our low point. If we were to touch it that would be the time and we certainly do have considerable flexibility with the timing of our capital expenditures with our expansion plan for 2009 so if we did get constrained a little bit we could move that out, but again, that’s the current expectation.
Brent Levy - Jefferies & Company
I know it is a difficult credit environment; but have you guys investigated the idea of perhaps getting a line that would expand availability beyond $28 million?
Bradley W. Harris
Yes, we have. We’ve had active discussions related to that area so it’s something we are pursuing and we’ve been encouraged by, even in the tight market, by the reception we receive but nothing has been completed at this point.
Brent Levy - Jefferies & Company
That’s something you’re investigating. Is there a possibility of something along the lines of a forward sale or something along that line to raise liquidity as well?
Bennett K. Hatfield
Let me address something for clarity. We don’t envision any constraints on our business plan related to lack of capital. We expect from current forecasts to operate well within the credit facility we have in place as we speak, even assuming that the project goes forward on schedule so the short answer is, there is no constraint in our current business plan at all that technically impacts 2009.
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