Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Chuck Murphy - Sidoti & Company.
Charles Murphy - Sidoti & Company, LLC
Could you elaborate a little bit, any impact you are seeing on your ability to execute due to the debt levels and as you mentioned in the press release, the negative publicity?
Thomas J. Vacchiano, Jr.
I will tell you that so far while there have been many dialogues with varying degrees of sales management and executive management with small, medium and large customers; we have not seen what we would consider a dramatic or material fall off in business as a result of the situation.
I know personally I have talked to a number of our largest accounts. They are obviously concerned that we get our balance sheet and capital structure sorted out as quickly as possible with our lenders, but there is a strong degree of support and loyalty based on our scale and our historical performance of strong gross margins, strong operating margins and strong cash flow. I think there is a willingness and a wanting to believe in us, support us, and help us get through this process.
I would think that is also not only true for dealers, partners, OEMs and customers, but even from the employees’ standpoint, there is just a huge amount of support of people feeling the pain of course, but wanting to do what they can to get us through this storm. I think most people believe as we get through this storm, we have such a strong market position. We have such a historically strong business model and the opportunity for the business of color is expanding, growing and changing. I think most of the constituencies we talk to believe in us and the opportunity and want to help us be successful.
Lynn J. Lyall
Our vendors have also been very helpful in the U.S. in particular. We have been successful in the last month taking almost every single vendor from net 30 to net 60. They were quite willing to work with us and understood the situation and conflict we had between our receivables and payables. It is a little more lengthy process and a little more challenging in Europe, but in the U.S., we have made a huge headway on that front as well.
Charles Murphy - Sidoti & Company, LLC
Just to kind of go through again your general feelings on the sales trends. I know you gave us a lot of information. If you kind of had to pinpoint an area that is particularly slow right now, which would it be?
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