Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Edward Wolfe – Wolfe Research LLC.
Edward Wolfe – Wolfe Research LLC
Can we get some cash flow information? Can you give us a sense of cash from operations and CapEx in the quarter and was the $32 million spent on the acquisitions in the quarter?
James Gattoni
The $125 million was the year-to-date and I believe it was $106 million through the second quarter so I believe it was $19 million on cash from ops.
Edward Wolfe – Wolfe Research LLC
What was working against that cash flow? It seems like a lower than normal number. Was there a swing in something or working capital?
James Gattoni
I think what you have is going back to really normal because in the downturn in the first six months of the year you are collecting a lot of receivables whereas you are not paying out because of the downturn. I would expect it might be a little lower than a typical run rate for a quarter but it is not that significantly much lower than what a normal run rate would be. Our cash flow is pretty close to our net income, our free cash flow.
Edward Wolfe – Wolfe Research LLC
Was $32 million the amount paid out for the acquisition that was all in the quarter?
James Gattoni
Yes. Acquisitions plus assumption of other liabilities which we paid off. That is right.
Edward Wolfe – Wolfe Research LLC
On the cash flow side of things, is $32 million for acquisitions kind of the way you view the world going forward give or take or is this an aberration relative to the last couple of quarters because it is a big number?
Henry Gerkens
I don’t think it is a big number at all. I think what we anticipate from gaining from these acquisitions I think in my opinion we did a fine job as far as this. We are looking for when we look at an acquisition as you well know we don’t literally acquire and go out and look at companies all that much. It is very difficult to integrate into our organization. We tend to build our company as I said before brick by brick. These acquisitions are technology based. One being a startup company and what we liked about this is the technology it has to offer. NLM on the other hand has been around for a number of years. I think we got them at the bottom of the market timing from our perspective. I think they were historically very big in the automotive industry and as that industry recovers we think that is a pretty big win for us. In addition their technology just plays very nicely into our wide range of accounts that we have so I think we actually expand their total business.
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