Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We will go first to Todd Vencil at Davenport and Co.
Todd Vencil – Davenport and Co.
Good morning guys. Nice quarter.
Stephen Macadam
Morning.
Todd Vencil – Davenport and Co.
Steve, welcome aboard.
Stephen Macadam
Thank you.
Todd Vencil – Davenport and Co.
You said at the outset that you did not feel like you have been around quite long enough to want to go into too much detail on the future strategic direction. So I am going to bug you about it. Typically with regard to what you said about your conversations with Don Defafit and I am just wondering if there is anything you can talk about with regard to where he may be leaning.
I know Steel’s issues with the company were largely driven by strategic issues particularly with regard to the balance sheet. So any sort of comments on what he is likely to advocate.
Stephen Macadam
Well, look. First of all Steel’s position has not been strategic. It is has been totally financial. I think Steel has been and I have also met with the Steel leadership as well and I think, quite frankly, they have been very complimentary along the core operations of the company, the strategic direction, what not.
I think they would like the company, you know where they come from it is a hedge fund obviously and they are financial guys. They live in a high leveraged world. I think they would like the company to have a lot more leverage and be a lot more aggressive in the marketplace. Quite frankly, in today’s market with the economic uncertainty and the position of the company, we feel like it is prudent to have some dry power.
The acquisitions that we have done – we have spent $210 million over the last few years in acquisitions which has been an absolutely fabulous use of our cash. Every one of them has been accretive and every one of them has been a very, very nice strategic fit for the business that has done the acquisitions.
So we certainly believe at this point that the best way to create shareholder value is to continue to drive that growth both organically and through acquisitions. And I do not have any concerns at all about convincing our new board member that that is going to be the right way to grow.
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