Question-and-Answer Session
Operator
Thank you. (Operator instructions) Your first question comes from the line of Tom Hayes representing Piper Jeffery. Please proceed.
William Currie
Good morning, Tom.
Tom Hayes – Piper Jeffery
Good morning. How are you guys?
William Currie
Good, Tom.
Tom Hayes – Piper Jeffery
Good. Thanks. I guess an area I would like to focus on first is on the AR. Coming out of the first quarter you had indicated that that you probably didn’t see any particular problems but it sounds like through second quarter perhaps some problems that picked up. You mentioned the addition to bad debt expense and stuff like that. Can you just give a little more color about A) what you are seeing and what is the extent do you add it to the bad debt expense?
Michael Cole
Sure. Just kind of – I’ll give you some data just kind of put it in perspective, our (inaudible) is only about 1% worse than it was last year. Out bad expense in the quarter was up, it’s up about $600,000 from what it was last year. For the year-to-date I think it’s about $1.3 million. So, it’s – there are certainly more credit risk now than we had last year and are feeling by – it’s not a huge – not a huge magnitude at this point. As far as DSO goes, for our site-built customers it’s off a few days. So, that’s been a challenge, but like we have said before, we continue to work on that very hard. We are very focused on it and in the grand scheme of things we have got a track record that’s very good.
Tom Hayes – Piper Jeffery
Have you moved anyone to a COD basis here anymore than you had expected.
Michael Glenn
There is a handful of those cases for COD, but for the size of our company it’s very small.
Tom Hayes – Piper Jeffery
You said both you and Mike talked about the fuel surcharge. Could you just talk about – are you getting a lot of pushback or is it pretty much everyone knows it’s coming.
Michael Glenn
Yeah, Tom, here is what happened. A lot of our business is contractual and when we start at the beginning, we did these contracts last November and so we weren’t able to push through a lot of the fuel cost that came through until late in the quarter and starting now. It significantly impacted especially our big box business.
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