Mike Saison – Key Bank
Okay. When you think about the organic growth for the rest of the year, how much of that do you think is being generated within your control versus depending on the some economic growth? It sounds like with all the sales initiatives you have done over the last couple of years, maybe it’s a little bit within your control than out of your control.
Mark R. Bachman
Yeah control is a strong term for me to use. Certainly with our influence, I think our team had done an outstanding job over the last couple of years of focusing on the new sales pipeline and they have done an outstanding job of working with customers that were really new to them within the last three years. So I think it should be seen how much further we can penetrate with those new customers but while I do believe we are benefiting from some favorable trends in the economy, it’s because over the last three years, our sales team have done excellent job of moving us into areas of more favorable demographics such as transportation and industrial MRO and so I guess the short answer would be it’s a little bit of both but I’ve to credit our sales and marketing team for moving us into the sweet spot.
Mike Saison – Key Bank
Great. Mark, I understand it may be too early to see the benefits from you know the oil phenomenon that we are seeing now but in the even event the raw material basket does indeed fall. Should that be a benefit and how much do you think that benefit could be as you head into the rest of the year?
Mark R. Bachman
We would believe that it would be a benefit. In one area we will start seeing the benefit of lower oil prices or fuel just in our transportation and the fuel surcharges that are carriers charge us. So we will see that immediately with respect to the raw materials that we purchase. As those prices do come down in some areas they are more so than others. We have to work through our inventory and so you are talking about 90 to 120 days. That’s why we don’t see a tremendous impact in the fiscal year. You know it certainly be in the later, portion of it. I go back to that range that we gave you for the rose margin of 46% to 48%. We still feel with our customer mix and with what’s happening with commodity cost that we should say in that range for the year.
Mike Saison – Key Bank
Great. And the last thing, John, when you think about earning scope this year, it sounds like organic sales growth is going to be better than you thought, I know you don’t give formal guidance but when you think about the reps for this year grew out the way you thought a quarter ago, do you feel better the growth would be a little bit stronger than you thought and particularly coupled with a potential for raw materials?
John K. Morgan
Well, I certainly feel better about our ability to make those investments in sales and sales management that I think will recruit our benefit of in future fiscal years. I think it’s increasingly important. Now that we allowed the acquisition integration behind us and allowed the systems rep work behind us and most of the fire recovery behind us and so forth, I think it’s really important for us to get back to investing in sales force expansion. So quite frank in my mind is that makes me a little less about the investments that I have felt are important in the balance of the fiscal year.
