Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Brian Alexander - Raymond James.
Brian Alexander - Raymond James
Just want to pick up on the cash balance, as you highlighted $700 million roughly, about 40% of your market cap at least before the open, your working capital came down quite a bit in days, not just in dollars, your 25 day trade cycle down about five days sequentially.
So a couple of questions, could you talk about whether you think the current trade cycle is sustainable and how investors should be thinking about priorities for cash? Are we passed the conservation stage, Jeff and might you be looking to get more aggressive on the acquisition front with demand more stable? Thanks.
Jeff Howells
Brian, first of all on the 25 days, we are very proud of that. I think while we will strive to do the best we can. I think still a range and more the 26 to 28 would be very acceptable, and we will do everything we can to go to a low end versus a high end, but we need to make the right business decisions, especially on stocking inventory levels to meet demand.
As far as the conserving cash, I think we and the rest of the world are moving away from the thought that we need to be ultra conservative, but we’re still looking at the appropriate uses. Just because we’ve generated cash, we’re going to use it wisely and put it to work for the long term of our shareholders.
What does that mean? We’ll review all of the alternatives. I don’t believe it means we become more aggressive in our acquisition strategy. I think we have been very aggressive in our acquisition analysis.
We’ve looked at many, many companies in our existing region, and that is our focus. Our existing regions, and as you know we’ve disclosed four small transactions that we’ve completed in Europe, and in addition to that, we have filled in with incremental sales force and other ways to grow with the business in those countries in Europe.
So we’ll keep looking. We’re not going to be wreck less, if you will with the cash we’ve accumulated and we’re going to try to put it to work to get the best returns.
Brian Alexander - Raymond James
Just a follow-up, Bob, you mentioned credit costs are down year-over-year, which is very surprising, is to me in this environment. Was last year just unusually high given the state of the credit markets or have you perhaps relied less on third party credit insurance given the rising cost there, and therefore maybe you’re assuming more risk on your own balance sheet? I just wanted to understand that comment a little bit more.
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