Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from David Kaplan – Sidoti and Company.
David Kaplan – Sidoti and Company
Could you please provide the capacity utilization and backlog for the quarter please?
Dan Urness
Our capacity utilization is in the low 50s this quarter, and our backlogs are at $3 million for the company.
David Kaplan – Sidoti and Company
In terms of the cost pressures, where are you seeing the greatest cost pressure?
Joseph Stegmayer
Well, David, we’re seeing those in virtually area of what we buy. One of the biggest items we buy is steel and aluminum for various parts of the home. Steel price has risen tremendously and is still rising. Another is insulation and paint. Paint of course is often petrochemical based. Insulation takes a lot of energy to product. The only area that we’ve not seen significant increase is in some of the, what we call, panel products. Firewood and OSB have not risen nearly as much. They’ve been fairly stable, but gypsum which is the wall board we use inside the home, same as other construction methods, has risen significantly, and appears to continue to be rising. Electrical parts, plumbing parts, floor coverings, carpets, carpet pads of linoleum all have petrochemical relation, so they are all rising on that basis, as well as of course transportation costs to deliver them.
David Kaplan – Sidoti and Company
Could you talk about any special projects you’re currently working on? You had mentioned on the last call that you had been working a project for the past two quarters. Are there any other ones in the pipeline?
Joseph Stegmayer
I’m not sure I’m following you, David. From what project?
David Kaplan – Sidoti and Company
The community project?
Joseph Stegmayer
The community project, yes. Well, we have several that are fairly active and a number we’re working on. The problem right now though is although we feel we’re gaining share, we’re gaining shelf space, if you will, and more involvement with more communities, the problem is of course the business in those communities is fairly slow right now, but we do feel it positions us well. As home sales pick up, we’re going to be more involved in more locations and more placed than we have been in the past. I can’t point to any one specific project that has had any meaningful impact in the short term, but I think we’re making inroads in a wide variety of projects both Arizona, California, and even New Mexico.
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