Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Tony Cristello from BB&T Capital Markets. Please proceed.
Anthony Cristello - BB&T Capital Markets
Thank you, good morning gentlemen.
Tony Aquila
Hi Tony.
Dudley Mendenhall
How are you?
Anthony Cristello - BB&T Capital Markets
I guess guys just couple of questions, one, Tony when you look at everything that's going on right now and I continue to hear about you taking costs out of what already operating infrastructure. When the market comes back, whether it's domestically and or globally, how much of that spend reduction has to come back or asking the question different way, when you come back from the market standpoint, does that imply that there is more leverage to your model than what was may be a year ago?
Tony Aquila
Yeah. I think what you're seeing here is the improvement of us, building some internal tools, in addition to that, you're just seeing good leverage flowing through the business. The waste reductions are kind of continuing because we have things like HPI which enter the mix and give us some other opportunities and we're pretty vigilant on the whole waste reduction thing.
So we still have a pretty steady pipeline of activity for waste reduction initiatives, but generally what you don't see here and some people have heard us talked about it but if we're taking out $2 of waste, we're generally reinvesting one of those dollars, so you're really only seeing $1. And so that kind of talks to the point about when the markets become more robust and maybe we accelerate the expansion of a couple more geographies, you'd see that -- we're already pre-planning for that, but we're taking a disciplined approach to this.
Anthony Cristello - BB&T Capital Markets
Okay-okay. And when you then look at the markets in general, can you talk a little bit about the differences now. We've been sort of in recessionary environment for quite a period and I'm wondering if you're seeing anything globally versus domestically that says hey, one is actually (ph) and better than the other and maybe on a global basis is not as bad as what we might be seeing here even though you would have expected some of that to flow through overseas.
Tony Aquila
Yeah, well obviously in evolving and emerging markets because we are so early in the penetration game, while there may be buying less cars and they maybe having some difficulties, we its difficult for us to feel it because its so early and our value proposition drops immediate ROI to the insurance carrier, so that's kind of why you heard us doing so well in central Europe and Latin America et cetera.
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