Question-and-Answer Session
Thank you. (Operator Instructions). We’ll go first to David Walsh – Avondale partners.
David Walsh – Avondale Partners
First off, just thinking about Textron, what percent of the total market did they represent in terms of their floor plan business?
Dan Urness
Well, that’s somewhat hard for us to determine, probably a better question for them, but I would think that they were in the 30 plus percent range.
David Walsh – Avondale Partners
Okay.
Dan Urness
But it’s kind of a tough number to get to David because there are e there have been generally three major or specialized lenders to the industry, but a lot of distribution in this industry find other sources that are not really countable in the database. That is they are financing through their local bank or they’re using other credit lines they might have, and they’re not using the specialized floor plan lenders.
So that number reflects – that I just said – reflects what the specialized lenders have in assumed outstandings, not the total amount of floor plan that might be going on in the industry.
David Walsh – Avondale Partners
Sure, and have you gotten a sense then if some of the other sources, like local bank or a credit unions, are they picking up some of the slack proverbially in the industry? Or is it, is that capacity just going away entirely?
Dan Urness
No, I think definitely many retailers and distributors are turning to their bank relationships or establishing credit lines. So yes, I think some of that void is being picked up by other sources outside the traditional lenders ,and some is being picked up by, I think by other – the remaining floor plan lenders in some cases.
David Walsh – Avondale Partners
Looking at your cash balance it was down slightly from the second quarter, was that due to a timing difference with just payables or is that – was there an actual operational cash burn in the quarter?
Dan Urness
That was mostly due to the fluctuation in the balance sheet line items, operating accounts. At these low levels of operating income though, we're more subject to – and we’re going to have a larger change in our cash flows, due to just the fluctuation of the accounts.
David Walsh – Avondale Partners
Okay and how should we think about the tax benefit in the quarter on a go forward basis? Is that something that we expect to continue, or what should we use or be thinking about, as a more normalized tax rate?
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