Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Gerry Heffernan – Lord Abbett and Company.
Gerry Heffernan – Lord Abbett and Company
In regards to the success that you showed during the quarter in breaking into the Canadian market, if you will, or taking advantage of an opening in the Canadian market. Of the market share that was given up by this competitor that went into receivership, how much of that have you gained? What is there left to be gained? Is your pursuit into this market complete at this time?
Roger L. Fix
The answer to that is multi-faceted. First of all, the competitor that went into receivership had annual sales of something just a little bit under $40 million Canadian. Not all of that $40 million is accessible by our products. I would estimate somewhere in the $20 million to $25 million of that is a market that we can penetrate. On a run-rate basis we’re approaching about $4 million to $5 million on a run-rate basis and we’d like to continue to grow that as we go forward.
Gerry Heffernan – Lord Abbett and Company
That would be an annual run-rate basis?
Roger L. Fix
Correct.
Gerry Heffernan – Lord Abbett and Company
So, if one would be looking for you to note, to maximize the fall of that company there’s still a lot of room there. Although I’m sure there are other competitors that are jumping into it also.
Roger L. Fix
Absolutely. There’s a number of smaller domestic players – I say domestic, domestic Canadian manufacturers in the walk-in business who are also, to use your words, jumping in. We primarily focused on some of the larger chains like Tim Horton’s where we believe our experience that we have with similar chains like Subways here in the US gives us a leg up in terms of our ability to perform, both on a delivery quality and service standpoint.
Gerry Heffernan – Lord Abbett and Company
Okay. In regards to the air distribution products, you guys have, you’ve raised prices, which is a very difficult thing to do when business is going away from you. You have closed a facility and you were able to do that in the fourth quarter despite 30% revenue decrease. Let’s call it close to a break even. How much longer can we do this with this revenue decline rate that we’re experiencing?
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