Operator
Thank you. Our next question comes from Matt McCole of BBNT Capital Markets. Please go ahead.
Matt McCole – BBNT Capital Markets
Thank you and good morning everyone.
Mark R. Bachman
Good morning.
Matt McCole – BBNT Capital Markets
First, John you made a comment about a focus on targeting larger customers and I am just curious about trends you are seeing because you had some success there obviously. What trends do you see in revenue per customer? I know I am getting here is how does maybe a more concentrated customer list help your visibility when you are providing this outlook?
John K. Morgan
There’s in front of me into the room but I can tell you from the internal looks of this. There is no question of what our revenue per customer continues to increase. That’s true. The processing is true about oil and gas. That’s true on our retail improvement and as well as automotive, it’s certainly true in our OEM areas and so there’s no question what it provides increased visibility and look the focus in those areas where we gain grounds in the last three years to establish position. It is really to grow now up and down the eye over to penetrate those customers to a greater extent.
So as you recall from following us for quite some time, there was a day when our average sale per customers might have been just few thousand dollars. That has grown considerably and a number of customers that we talked about now in RK, Mark I am going from memory but it’s probably about half or say it was five years ago and so you can kind of quickly see madness statistic there grown a couple of hundred million dollars at about half the customers’ account now.
Matt McCole – BBNT Capital Markets
Okay, so when I think about the new guidance and just guidance in general, seems like you are more comfortable talking about low single digit number rather than flat but I think you like to repeat things but you did more of a call of better results of a fire recovery or is it because of something that is going on separately or is it something along the line of this trend with fewer but bigger customers?
John K. Morgan
Your answer would be yes. It is these things. There is no question. The negative impact of the fire is subsiding that is having a very significant impact on us. The second thing is about 35% to 40% of our sales now go to our top 50 customers. That is a sea level change in this business over the last three years and those customers are wining in their markets. Our automotive retail customers are continuing to expand the merge consolidation as alive and well and home improvementcustomers are continuing to expand, the wholesalers are continuing to expand and so forth and so I think we have been really fortunate to have success with a lot of these top players that in their own right are winning in their markets and we are the benefactors of that.
Matt McCole – BBNT Capital Markets
Okay. Alright. That’s helpful. Mark, I think you said the outlook for this year is largely unchanged. I think you said 46% to 48% gross margin. Last quarter 67 million and interest expense and then the tax rate 37% to 39%. What about SG&A and lets go back to the previous question. Are you expecting some leverage this year even though you got this Sacramento spent?
