AEP Industries (AEPI)’s Fourth Quarter Fiscal Year 2014 Earnings Call Transcript

Scott: Ok and then just lastly on obviously what were resin is going to have some sort of impact on working capital needs as you move into 2015 based on their current decline in resin, not even forecasting any future declines.  How should we think about the impact on working capital?

Paul: Well very clearly our investment in working capital is going to decline, accounts receivable is going to decline because we are gonna have to give back some of these resin cost declines to the customers. So to the extent that we do that our investment in accounts receivable is going to decline if resin prices go down 7 cents where they are now and they may be 11 cents by the end of this month, I’m expecting you are going to see a penny for penny decline in our investment inventory and the truth is we typically end up with I’m gonna say close to 80 million pounds of inventory something like that. So 80 million pounds times 7 cents it’s $5.6 million or times 11 cents it’s $8 million. That’s kind of which you are looking at.

Scott: Right… Ok. So we had meaningful numbers. Yes?

Paul: Yes. Our working capital requirement is going to decline. No question about it.

Scott: And just lastly then on I mean we are talking about TET here but what about some of the more specialty resins that you see similar declines within the specialty resins as well?

Brendan: Yea the first two decreases were across the board. Any resin type I’m not aware of any that they didn’t decrease I believe that’s statement is that isn’t 100% sure it’s 95% sure. Yeah

Scott: Ok… Thank you I appreciate the caller.

Operator: At this time there are no further questions and now can I call Mr. Brendan Barba for any additional or closing remarks.

Brendan: Thank you everyone for attending the call we appreciated and as always if you have any questions that you would like to forward to either Paul or myself, we would be happy to answer that for you. Thanks again take care.

Paul: Thank you ladies and gentlemen.

Operator:  Thank you for participating in  the AEP Industries Incorporated fiscal year 2014 results conference call. In and out.