Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Dennis Telzrow from Stephens, Inc. Please proceed with your question.
Dennis Telzrow – Stephens, Inc.
Good morning, Dan and Tom. Great quarter.
Dan Feehan
Good morning, Dennis.
Tom Bessant
Good morning, Dennis.
Dennis Telzrow – Stephens, Inc.
You didn’t say much about the UK, I sort of have a sense you are getting ready to crank that up. Any comments? I know you’ve been testing it and want to get comfortable over there.
Dan Feehan
Yes. We continue to ramp in the UK, Dennis, and this could benefit anybody else anybody else on the call to reference to our online operation in the UK that we started last year. We are on plan for that. That business unit is not yet profitable, but we are making great progress with it. And as we’ve mentioned on the last year, or probably last couple of calls, we really view that as an ’09 growth vehicle. So we are on plan to where we hope to be. We are ramping not as quick as we had ramped when we opened Texas and Florida with the online business, but we are ramping cautiously and having good results. We are pretty happy with our progress.
Dennis Telzrow – Stephens, Inc.
And I know you’ve talked about driving other products through the Internet. Is that still sort of in the think tank stage or do you think in ’09 or 2010 time frame–?
Dan Feehan
Yes, it’s still in development stages. I would tell you that we are spending a fair amount of timeline. This is not a sideline activity for us, it’s a mainstream activity with our group in Chicago. I would really be hopeful of having some products available for us in ’09.
Dennis Telzrow – Stephens, Inc.
And last question to Tom, I presume after the final payout for CashNet in the fall or looking into next year, cash flow will go probably more back to paying debt down, is that a fair assumption?
Tom Bessant
We’ll certainly increase cash flow significantly after the earn-out payments are completed. We’ll look for opportunities to put that money to work, whether it be transactional based or store based. But in any event cash flow will certainly increase, and then we do obviously have the opportunity to reduce debt going forward as well.
Dennis Telzrow – Stephens, Inc.
- To read the full transcript on Seeking Alpha, click here »
