Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Daniel Rizzo - Sidoti & Company.
Daniel Rizzo - Sidoti & Company
You indicated that both penta and creosote were re-registered. How long does that registration last for?
J. Neal Butler
The re-registration process is from EPA. I don’t know but there’s not a definitive timeline on when they come up for re-registration again, but it’s a fairly long period of time.
John V. Sobchak
This process for re-registration was embarked on in 1986.
J. Neal Butler
That’s what I was looking for was to try and remember the date that this one was actually initiated. So that’s right, this was an ’86 initiation. It’s just now being completed. EPA is still going through the re-registration process on a number of other pesticides. The best response is that for the foreseeable future it’s re-registered. I don’t know when it will go through a second re-registration process.
Daniel Rizzo - Sidoti & Company
Isn’t that something you have to do every five years?
John V. Sobchak
No, there’s no cycle like that.
Daniel Rizzo - Sidoti & Company
Did you notice any seasonal weakness in sales in creosote in September or is it just due to poor weather?
J. Neal Butler
It can be due to poor weather but typically when you see some of these seasonal declines it’s a consequence of the ties that are in storage and being dried for treatment. If you get a really wet season, they can’t get into the woods to harvest the hard woods and it diminishes the inventory. They hold that inventory for nine months before it’s treated so it is weather related.
Daniel Rizzo - Sidoti & Company
You said that just given the current economic situation, you do see attractive acquisitions. I was just wondering if it’s going to be more limited in size going forward given your current debt level, the current credit situation in the country, and things like that. Are you looking at small bolt-on acquisitions or are you more willing to do another one of the size you just did?
John V. Sobchak
No, we’re not in a position in terms of our capital structure to do another acquisition of the size we just did at the moment. Clearly our view would be to continue to pay down debt, to look for some good add-on acquisitions to our current platforms, and position ourselves for maybe adding another platform down the line.
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