Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Brian Ruttenbur – Morgan Keegan & Company.
Brian Ruttenbur – Morgan Keegan & Company
In terms of your line of credit first of all have you seen any reduction whatsoever or any inclination that that would be cut or reduced?
John Lamson
No, not at all. As you know our total line is $225 million, we have about $189 available and we’re easily within the covenants that we have with the lenders. The lenders in our group it’s headed up by Bank of America who are in a very strong position. So, to answer your question, no our line of credit is good.
Brian Ruttenbur – Morgan Keegan & Company
Do you see any circumstance in the near term where you would turn unprofitable? It looks like you’re being very proactive in your cuts but do you see a situation where you could turn unprofitable?
John Lamson
No. Obviously predicting the future is difficult but certainly we feel comfortable that given our current level of operating expenses where we’ve paired a lot as Anand referred to. I think we’re in good shape from the standpoint of earnings and cash flow obviously relative to the economic climate we’re in.
Anand K. Nallathambi
Just to add to what John said, our cash position is very good and the third quarter was actually a very good quarter from a cash generation standpoint.
Brian Ruttenbur – Morgan Keegan & Company
Then last question, where would be the first area that you would start to see that you anticipate that would come back with an economic recovery? What area do you see that revenues would start picking up?
Anand K. Nallathambi
I would say that you would see it in hiring, obviously in lending, in automotive because that’s related to consumer confidence and with all this economic bailout about protecting people’s homeownership and their equity lines and things, or the equity that they’ve built in their homes you will see that in the resurrection of the housing markets. So, we’re sitting pretty close to seeing activity when it comes up. We’ll see it first.
Operator
Our next question comes from Mark S. Marcon – Robert W. Baird & Co.
Mark S. Marcon – Robert W. Baird & Co.
I was wondering if you could describe in the employer services division and lender services and dealer services, what sort of monthly trends were you seeing and what have you see in the early stages of October?
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