Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Steven Chercover – D. A. Davidson & Co.
Steven Chercover – D. A. Davidson & Co.
I do have a few questions, first of all were there any extraordinary items? Reversals or provisions or anything else? Mike mentioned a few really small things.
Michael B. Glenn
No, just the things that are on that line item of the income statement, the net amount of $700,000 those are all kind of unusual but everything else was pretty well routine and consistent from period-to-period.
Steven Chercover – D. A. Davidson & Co.
Well then can you expand, I think you mentioned $10 million worth of real estate sales, was that in the second quarter?
Michael B. Glenn
No, I was talking about the number on the income statement, the proceeds number so that was a year-to-date comment. We had sold some property in Oregon and we sold some property in Texas and then a couple of other small sales.
Steven Chercover – D. A. Davidson & Co.
Was that in the current quarter?
Michael B. Glenn
The gain associated with Oregon was in the first quarter, the gain associated in the proceeds also for Texas were recorded in the second quarter.
Steven Chercover – D. A. Davidson & Co.
So that’s not responsible for these margins in any way?
Michael B. Glenn
No, no, not at all. Those gains are on that line item of the income statement that I referred to earlier.
Steven Chercover – D. A. Davidson & Co.
The $716 million?
Michael B. Glenn
Correct. There’s a year-to-date amount and that year-to-date amount includes Oregon.
William G. Currie
I think it was $716,000.
Michael B. Glenn
For the quarter, yes. The margin is a different discussion and that’s a result of the breakdown that I gave you earlier.
Steven Chercover – D. A. Davidson & Co.
To make sure I understand, as lumber prices increase clearly your sales go up but the margins will probably recede a small bit, is that correct?
Michael B. Glenn
Correct. The overall level of the market, as you know lumber is kind of pass through for us so we try to start straight that way so in a low lumber market when you’re trying to get a certain profit per unit to be the same you have a higher margin and in a higher lumber market the reverse happens.
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