Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Frank Mitsch - BB&T Capital Markets.
Frank Mitsch - BB&T Capital Markets
I wanted to ask about the shelf. I think you said Bob that the three areas that you would look to use it would be M&A, CapEx and debt pay down and, your net debt is the lowest level it’s been in years. CapEx in the quarter was very light so, I was wondering if you could comment on what you would look to do or hope to accomplish if you were going to go the M&A route?
Bob Patterson
Well, at present and just to comment on the shelf generally, we made statements in our press release and really just want to reiterate those that we filed the shelf today. As a matter of prudence and to give us additional flexibility feature should the opportunities arise to do a deal and/or possibly exchange debt we don’t have any immediate plans for either of the following.
As we think about M&A, I would say we, important in flexibility point for the company and that as you said, we have the lowest net debt level in a long time and that gives us a lot more flexibility than we had a long time and so we are starting to look at our M&A opportunities.
At present I would say the only things that are out there in the near term might be smaller in nature and ultimately those could probably be funded with cash to the extent that we decided to move forward in any event. So that’s really the best observations I can make about the shelf again just to reiterate it was done out of prudence and to give us further financial flexibility.
Frank Mitsch - BB&T Capital Markets
I guess we shouldn’t read too much into that, then?
Bob Patterson
Shouldn’t read anything into it.
Frank Mitsch - BB&T Capital Markets
Steve, when you’re commenting about the fourth quarter, you seem to make the case that perhaps it’s not going to be as debt as part at the right work, but decline would probably not be as bad as you’re hearing from some of the customers given that inventory levels are low. Here we are, the first week of November. Can you comment on the pace of business quarter to-date?
Steve Newlin
Frank, I mean it’s really the last part of the quarter that concerns us, and it’s really the anecdotal stories that we hear from our customers and we know that we listen very carefully to them and right now they are nervous about their business environment at year end and winding down inventories and we heard some customers say basically from Thanksgiving forward. Things will be difficult or may even take extended shutdowns.
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