Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Cox - Piper Jaffray.
Michael Cox - Piper Jaffray
My first question is on the comments you made about the margins within the architectural segment and fuel costs and input costs. In the past you have described the ability to pass those through. I’m just curious if there is something changing from a pricing environment that’s making that more difficult?
Jim Porter
The change in the environment is more a function of the real significant and rapid increase in costs. We have been able to hold pricing, in fact all of our business either recently have introducing price increases. Given the lag time that we have in our projects there’s going to be a bit of a lag between the cost increases relative to our ability to pass those on in pricing.
Russ Huffer
The energy surcharges that we have been passing through continue to provide us with significant protection. A lot of the petroleum based increases that we saw were not in those major supply items so they were in a lot of little items that plus fuel that came into the picture so things were petroleum based. We have reacted to that now and feel that pretty much is behind us at this point.
Michael Cox - Piper Jaffray
Can you remind me the flexibility to adjust pricing for projects that are already in the backlog?
Russ Huffer
Really there’s not an ability to adjust pricing for projects in the backlog. That’s certainly one of the reasons why we saw that impact in this quarter.
Michael Cox - Piper Jaffray
On the corporate expenses this quarter jumped up about $1 million are there any special items or one time events in that number?
Jim Porter
We’ll see growth in SG&A for the full year and we started to see some of that in the first quarter. It’s a number of items. We do actually have a new system implementation project across the company and actually had our first two entities go on live so we started to see a bit of an increase cost relative to that. Other than that pretty much normal ongoing cost increases.
Michael Cox - Piper Jaffray
You mentioned that seeing a small percentage of delays which isn’t out of character from what you’ve talked about in the past. I’d be curious if you’re seeing anything from an accounts receivable perspective, any aging of receivables from customers that are feeling the pinch of tighter credit markets?
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