Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from David Wells – Avondale Partners.
David Wells – Avondale Partners
First off, as we think about CapEx for the year, do you have an expectation for the balance of fiscal '09?
Kelly Tacke
That won't be significant, David. I can assure you that. I would use maybe $1 million, $1.5 million.
David Wells – Avondale Partners
As we think about debt reduction steps, is the outlook there primarily to continue to take advantage of the stress debt market opportunities as they arise? Are there other steps available that you could take?
Kelly Tacke
Well, I think I mentioned in my comments that's exactly what we intend to do.
David Wells – Avondale Partners
Is that something that you can then be active in the market in or do those opportunities have to be brought to you?
Kelly Tacke
They really need to be brought to us. If we're going to be active in the market, that could constitute a tender and we're not in a position to do that at this point and time.
David Wells – Avondale Partners
As we think about the Florida, California and Arizona markets, what have you seen trend-wise? Just as the credit markets seized up again in September, has activities froze considerably in those markets or has it more kind of a continuation of the same?
Larry H. Keener
Well, those markets, especially Florida and Arizona, and to a lesser extent, California, seem to be improving through the late spring and early summer. But as the economic news became worse and worse, business has slowed pretty appreciatively in those markets and with the glut of housing that exists, both site-built and the glut of inventory that exists in retirement lifestyle communities, the sales rate is such that it's going to be a while before that gluts worked off and it makes sense for business to improve.
And we don’t see that happening before – no sooner than this time next year, David.
David Wells – Avondale Partners
In terms of commodity pricing, any thoughts on what the benefit from that could look like as we've seen oil continue to trend down and how long would that take to work through your P&L?
Larry H. Keener
It takes a while. We're, in fact, building houses that still don't have all the price increases in them that we put in place, because we are integrated. That's one of the negative sides of being an integrated is that we don't get the full recapture of a price increase on the front side. Now, we do get it on the back side. As prices begin to fall, we do get it.
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