Question-and-Answer Session
Operator
Thank you. (Operator instructions). The first question comes from Chris Manuel. Please state your company name followed by your question.
Jason Brown – KeyBanc Capital Markets
Good morning. It is Jason Brown in for Chris at KeyBanc Capital Markets.
Michael Harlan
Hi, Jason.
Jason Brown – KeyBanc Capital Markets
Hi. A question for you on free cash flow, was obviously a very strong quarter, better than we were anticipating. And I was just wondering if it exceeded your expectations and if you could give us an update for your full-year outlook?
Robert Hardy
Free cash flow, it was better than our expectations, and a lot of it depends on kind of – it is very much working capital and one thing that we are paying a key emphasis is, the company, it's working capital is shrinking. We have lower receivables, we have lower inventories, and so as the company builds, hopefully once 2010 gets underway and we start having better comparables, then we will use cash to build our receivables and inventory. Those are the major moving parts as far as a snapshot of where 331 [ph] came out. So we will try to manage our working capital kind of through the quarters to generate as much positive cash from that equation as we can. We are still hoping and trying to with an objective of maintaining positive free cash flow for the full year, granted very small amounts, but I will caution that if we continue to have a run rate at this, let's say at this level of volume declines, we may change that forecast as we go throughout the year.
Jason Brown – KeyBanc Capital Markets
Okay. And I think you had mentioned on the fourth quarter call that you were anticipating a possible $5 million payment for litigation, is that still your expectation?
Robert Hardy
Yes. We have that factored into to try to get that case out of this year.
Jason Brown – KeyBanc Capital Markets
Okay. And then switching gears, just one question on pricing, I think you said your expectation for the second quarter were to be similar and I guess do you think that this – on an absolute level, do think that this level is similar for – or should be sustained for the year or was there any kind of mix, favorable mix impacting the first quarter? Thanks.
Michael Harlan
- To read the full transcript on Seeking Alpha, click here »
