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Dynamex, Inc. (DDMX)

F2Q08 Earnings Call

March 06, 2008 11:00 am ET

Executives

Kevin Unger - Director of IS and Corporate Support

Richard McClelland - President and Chief Executive Officer

Ray Schmitz - Vice President and Chief Financial Officer

Analysts

Robert Dunn – Sidoti and Company

Clayton Ripley – Bears Capital Management

David Campbell – Thompson, Davis, & Co.

Alex Brown – Stevens, Inc.

Operator

Greetings and welcome to the Dynamex, Inc. the second quarter of 2008 earnings conference call. (Operator Instructions) It is now my pleasure to introduce your host, Mr. Kevin Unger. Thank you Mr. Unger, you may begin.

Kevin Unger

Thank you, Anthony and welcome to this Dynamex conference call to review the company’s results for the second fiscal quarter of 2008 which end at January 31, 2008. Conducting the call today will be Rick McClelland, Chairman and Chief Executive Officer and Ray Schimtz, Vice President and Chief Financial Officer.

Before we start, let me offer the cautionary note. This conference call contains forward-looking statements that involve assumptions regarding company operations and future prospects. Although the company believes its expectations are based reasonable assumptions such statements are subject to risk and uncertainty including among other things, the effect of the changing economic conditions, acquisition strategy, competition, foreign exchange and risks associated with the local delivery industry. These and other risks are mentioned from time to time in the company’s filings with the Securities and Exchange Commission. In light of such risks and uncertainties the company’s actual results could differ materially from such forward-looking statements. The Company does not undertake any obligation to publicly release any revision to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Caution should be taken that these factors could cause the actual results to differ from those stated or implied in this and other Company communications.

With that stated I’ll turn the call over to Rick McClelland.

Rick McClelland

Good morning everyone and welcome to the call. I am going to make just a few comments on the quarter and then turn the call over to Ray for his analysis.

The second quarter was another positive period for our business from the standpoint of both sales and operating income. The timing of certain statutory holidays commuted our growth rate a little but our top line results were still quite good. Looking ahead, we expect year over year sales growth for the remainder of the 2008 fiscal year to be in the 10% to 12% range.

While quite a few transportation companies continued to be impacted negatively by the soft economy. We have continued to grow for four key reasons. First, a substantial portion of our existing and new business is in the healthcare sector which is relatively recession proof. Second, excellent operational performance and strong customer relations has helped us increase sales to our existing customer base. Third, we have a broad cross section of our sales and operating teams very engaged in the process of adding profitable new accounts.

Four, we are continuing to build awareness related to our outsourcing capabilities creating a market for our service versus having to increase share of an existing market that is negatively affected by a weak economy and poor pricing environment.

Our outsourcing service has continued to appeal to firms that have historically operated their own private fleets. The appeal is tied to the financial and operational benefits of outsourcing to a specialist especially during a sluggish or uncertain economic period.

We are seeing reduced shipment volumes from a few clients as a result of the weak economy but we have more than offset the impact with additional business from existing accounts and our new account activity.

Since our last call, we closed business and many industry verticals including industrial supplies, healthcare, retail, food and restaurant supplies, airline industry, automotive parts and supplies and professional services.

During the quarter, we also saw renewed interest in our ability to offer on-demand services on a national basis in the critical parts, healthcare and professional service sectors. So, that was the pretty interesting and pretty encouraging.

New business activity has also been driven by our national reach in the US and Canada which allows clients to consolidate vendors plus our unique service menu that includes same-day scheduled and on-demand last mile transportation capabilities and our proprietary technology that provides clients with real time visibility related to shipment location and cost.

Customer attrition during the quarter was minimal. You cannot be a great national company in our industry unless you execute locally, shipment by shipment and mile by mile and you cannot do that without great local operational talent on the ground where the rubber meets the road.

We also need a national accounts team that provides large clients with a knowledgeable, responsive single point of contact related to mid to long-term strategies and tactics and in this past quarter as in previous quarters, everyone on the Dynamex team showed that they were up to meeting the challenges and goals that our clients presented. They did a great job.

Aside from traditional organic growth opportunities, we are seeing increase in opportunities to increase, to acquire customer lists as the economy continues to negatively impact some of our competitors. During the quarter, we added five franchise locations. The markets are Fort Wayne, Indianapolis, Cincinnati, Albuquerque, and Little Rock.

We are very pleased with our franchise marketing efforts that begun just 24 months ago. So, in terms of our focus on growth, we are expanding existing client relationships, adding clients, expanding the network by adding franchise locations and are open to acquiring customer lists at the right price.

We are certainly very pleased with our operating income in the quarter to 25% gain, pretty robust especially in an economy like this one. Strength in operating income was driven in large part by gross margin improvements from the new business we started in fiscal 2007. The margins on this work had gradually normalized and are now providing a bottom line benefits that we expected.

Now on the technology front, we have invested over the past few years million of dollars in developing and launching our proprietary operating system known as DECS. This is a technology we use to automate on-demand pricing, billing, driver settlements and also to produce data related to service quality and this technology also performs many unique and valuable functions related to our outsourcing and distribution services.

The first recipient location of this technology and somewhat probably say the first victim was our Dallas business center in the spring of 2005. Inside of that, we have successfully implemented the technology in about 75% of our US locations as well as many of the Canadian locations and our franchise locations.

This allows us to present the same look-and-feel decline no matter where they use this. So, that is very important to us and it is going very, very well. Many talented and dedicated folks on our IT team have worked tirelessly on the development and implementation of the technology in more rapidly approaching appointment which most of the operations are on the system and we are using the platform as a cornerstone of the value proposition. We offered current in the future franchise leads.

So, it is strategically important, not just the operationally important. I am feeling very positive about our prospects on a goal-forward basis as the balance sheet remains very strong. We have zero long-term debt, the margins are holding within our targeted range in both the top line and the bottom line showed an increase.

Our asset like the cost structure is serving as well and the same goes for our variable cost model where purchase transportation cost fluctuate directly with sales and as I said in the press release, we continue to believe we have a significant opportunity for continued growth profitability that will result in solid returns of share holders.

So, with that I will turn the call over to Ray.

Ray Schimtz

Alright, thanks Rick. Good morning everyone.

Net income for the quarter was $3.4 million, 33 cents diluted earnings per share compared to $2.8 million or 26 cents per share in the same quarter of last year after adjusting for the one time, after tax benefit of $972,000 related for the settlement of cross-border transfer pricing issues between the US and Canada.

Operating income increased 25% as result of the 10.9% increased with the sales and the gross margin improvements Rick referred to. Sales were a $112 million, 10.9% above the prior year. The core growth rate in dollar sales, the rate excluding the impact of foreign exchange and fuel surcharges was 2.2%.

However, this quarter had one and a half less business days in the prior year quarter. On a sales per day basis, the core growth rate was 4.9%. A large number of our customers were close on Christmas Eve and New Year’s Eve this year when Christmas fell on Tuesday and to make matters worst, the rest of the Christmas week was usually slow.

The gross margin percentage this quarter was 26.7% of sales compared to 25.9% in the same quarter of last year. The improvement in the gross margin is the direct result of cost improvement initiatives we have undertaken to normalize a large amount of new business we had started over the past year.

The gross margin this quarter was within our fiscal year of 2008 target range of 26.5% to 27% and we expect the gross margin percentage to be in that range for the remainder of this fiscal year and be above the same quarter as last year.

SG&A expenses for the quarter increased $2.5 million or 11.7% as the percentage of sales, SG&A expenses were 21.3% compared to 21.2% in the prior year. The percentage this year was slightly higher because we had one and half less business days to generate sales which reduced the leverage we get from our relatively fixed cost infrastructure.

Approximately, $1.1 million of the dollar increase is attributable to the stronger Canadian dollar with the remainder due to the additional personnel hired over the last 12 months to support not only the current level of business but also future growth and addition to normal increase as in compensation and higher cost for employees’ benefits.

As the core growth rate accelerates, the company expects to realize additional leverage from its relatively fixed cost infrastructure. Net cash generated from operating activities this quarter was $5.3 million down from the $6.3 million generated during the same quarter last year.

Last year, the benefit of higher non-cash taxes and lessor financed leasehold improvements and pre-rent related primarily to our corporate headquarters new provided about $2.3 million. This was partially the offset by the reduction and working capital requirement this quarter compared to last year about a $1.5 million.

The increased in accounts receivable from the end of the year is in lined with the increased we experience for the same period last year. This is an area of focus where we expect to see a substantial reduction in DSO as we move to the remainder of this fiscal year.

The percentage we used as to make that bad debt is in line with historical rate and boring in the unforeseen cash flow problems our customers may encounter. We do not expect to see much change in that percentage for the rest of the year.

Moving to our outlook for the remainder of 2008, we continue to expect diluted earnings per common share to rise between a $45 and a $55. We expect the gross margin percentage to be in the 26.5% to 27% range for the full year and we expect our effective income tax rate to be in the range of 38% to 39% of pre-tax income.

And finally, we expect year over year sales growth to be in the 10% to 12% range based on the current Canadian/US dollar exchange rate and relatively stable fuel prices for the remainder of the fiscal year and that may not be a good assumption given the recent rise in oil prices.

On final item, although our cash position improves substantially this quarter, we made the decision to temporarily suspend our share reaper program until we see the market stabilized a bit. We will continue to monitor the situation or reenter the market when we think it is the time is appropriate.

This concludes my comments. Operator, we will now be glad to entertain any questions.

Question-and-Answer Session

Operator

Our first question comes from the line of Robert Dunn with Sidoti and Company. Please proceed with your question.

Robert Dunn – Sidoti and Company

Hey, good morning, guys.

Rick McClelland

Good morning.

Robert Dunn – Sidoti and Company

I just want to see if I could get a little more specific on what was driving the leverage in terms of the other line out in the cost of sales, I know you said it was kind of cost saving initiatives on that newer business, could you be just be a little more specific about what was driving that?

Rick McClelland

Yes, in that area, that is where we have warehouse cost in some of the new business that we started at personnel calls associated with [inaudible] when we did this at our locations and so we recline in those particular areas, reduced the amount of cost that we were incurring and there were some additional benefit that we received related to insurance in areas like that.

Robert Dunn – Sidoti and Company

And all of these things will persist I mean it was not certain one time to the quarter?

Rick McClelland

We believe so.

Robert Dunn – Sidoti and Company

Okay, when you kind of think of it like that it seems that the low end, below the mid part of your guidance seems a bit conservative, would you say that, would you agree with that statement?

Rick McClelland

We have given our guidance. We believe we will be in that range and so at this point we are not going to change that guidance. If we get through the next quarter and it becomes apparent that it should be adjusted, we will do it at the end of the next quarter.

Robert Dunn – Sidoti and Company

Okay, great. Just one thing about the franchising as well at the end of the quarter, you had now 40 signed agreements, is that correct?

Rick McClelland

That was the end of the last quarter. We had new five new agreement signed this quarter.

Robert Dunn – Sidoti and Company

So, now it is 45?

Rick McClelland

Yes.

Robert Dunn – Sidoti and Company

Okay, great. Thanks a lot.

Operator

Our next question comes from the line of Clayton Ripley with Bears Capital. Please proceed with your question.

Clayton Ripley – Bears Capital Management

Yes, is there any update on the litigation front I guess related to EDD or the California suit?

Rick McClelland

There has not been any change in that suite during this quarter I mean we will be coming out with our 10-Q and there is no change in our disclosure related to that issue.

Clayton Ripley – Bears Capital Management

Okay, the franchise, these five that you signed, does it being a deal of how big of a franchise you signed in I guess, my question is related to how of the revenue that you received from them is depending on how big they are?

Rick McClelland

The royalties that the franchises pay is basically a percentage of their gross sales.

Clayton Ripley – Bears Capital Management

Okay.

Rick McClelland

So, it is good if it is a midsize to large operation but what is also just as important and maybe more important is doing the small, doing a deal with the small company whereby working together with them, we can help them grow from the small company into a big company. So, we really do not have a sort of a preference on what size the business is, just more about what the potential is and how well does that location fit with their hand to the existing network. So, but the bottom line is the royalties are a percentage of gross sales.

Clayton Ripley – Bears Capital Management

Okay and one last question. On the main revenue, I know that the concern was that that was eroding away and that, compared to the first quarter; it did have a little bit of erosion as a percentage of your total revenue, could you give a more color on that? Why do you think that is eroding and where do you see that going?

Rick McClelland

Well, on-demand is a product that we offer that, we have been in that on-demand market ever since we put this company together and we were primarily in an on-demand company when we had the roll up and that on-demand business has been shrinking as a percentage of total because of the growth in our products, the outsourcing and the distribution business and we expect that to continue, we do not expect to see generally a large increase and what we really expect is the closest thing of digit growth in on-demand so as we increase our sales, we would expect on-demand to be a lesser percentage of the total.

Clayton Ripley – Bears Capital Management

Is that I mean that on-demand, how much of a higher margin business was that?

Rick McClelland

The margins on on-demand and the rest of the products that we offer is essentially the same at the net operating income or contribution to fix overhead line. They have a higher margin gross profit but they also require more people to do the work. You have CSRs, risks factors you have to collect and build up the customer and so after you deduct the direct calls, the contribution to fix overhead is essentially the same.

Clayton Ripley – Bears Capital Management

Okay, thanks a lot.

Operator

Our next question comes from the line of David Campbell with Thompson, Davis. Please proceed with your question.

David Campbell – Thompson, Davis, & Co.

Yes, thank you very much. Back on the on-demand issue, I had expected that number to be significantly lessen that it was in the January quarter, was that somewhat imposed by the Canadian exchange rate gains in the translation?

Rick McClelland

That was helped at somewhat by the translation gain, yes. Our operations with Canada have a higher component of on-demand than the US.

David Campbell – Thompson, Davis, & Co.

Alright, so but obviously it is not, it is obviously very low in the April quarter last year so I guess you would expect similar gains in the next quarter, in this quarter.

Rick McClelland

If the exchange rate, it holds up the way it is, it will have the positive impact on our on-demand business that we report entailed with this.

David Campbell – Thompson, Davis, & Co.

Back on the acquisition of customer list, you are seeing more opportunities to that because somewhat your competitors are having financial problems, is that the way you interpret that?

Rick McClelland

I think that there is a combination of things happening out there with some of the competitors, these are the local private we held, the smallest firms, there is probably 8,000 or so of the mount there in the US and maybe a thousand in Canada and the bottom line I think what is happening is that the some of them are just finding a very, very difficult to grow especially in the economy that we are in right now and I think what is also happening is that there is seen cost rise, fuels specifically and some of them do not have a predisposition to raise prices as fuel goes up whether it is a fuel surcharge or an escalator or whatever and when they do not do that, it causes driver turnover and driver churn which causes capacity problems, which creates customer service challenges, which creates frustrations in the business and the bottom line is you, I think, they are finding it tough to grow, tough to manage capacity as cost rise and it is just their frustration levels increased and the bottom line problem is often a bit as their cost goes sideways, the revenues go down.

David Campbell – Thompson, Davis, & Co.

But would not be converting into your franchise will be better for them and selling some of their business?

Rick McClelland

Great question and the way we approach it is we are prepared to go down a few different pathways with them depending on their goals and depending on their situation. We certainly would consider franchising as an option that we think we can help them solve the problem and we certainly will get if they are just fed up and they want to get up with entertain acquiring the customer list and just basically doing a talking and there are other things that we can do maybe just in sort of affiliation to help them grow and increased profits as long as there is something in it for us as well.

David Campbell – Thompson, Davis, & Co.

So, they go out of business essentially?

Rick McClelland

Yes, that could be one thing that happens.

David Campbell – Thompson, Davis, & Co.

And so with you on-demand business in the US, was that also up in the January quarter hits? It is typically been the most sickles call in terms of subject to economic downturns.

Ray Schimtz

Yes, as Rick referred to in his comment, there were some new customers that wanted or needed service is on the most market basis were critical parts and healthcare and that helped the on-demand business in the US.

David Campbell – Thompson, Davis, & Co.

Sort of the on your older customers, was on-demand down?

Ray Schimtz

I do not think so, no. I mean we monitor that, we went through this in 2000 when we went through the last recession or actually after September 11 and we have a big downturn in on-demand I think most of that business went away at that point in time and the current level of their on-demand is basically critical to the customers that we served so we have seen the big downturn that we had seen in prior recessions.

David Campbell – Thompson, Davis, & Co.

But we have not seen the big downturn in airfreight in general or trucking exactly, not that bad either right now, so I mean what, are we having a downturn or we are just having a downturn we have had before?

Ray Schimtz

Now, looking at the market, I would say we are having a downturn but I am not an expert at all that so I would leave to the prognostic experts.

David Campbell – Thompson, Davis, & Co.

And speaking with the market, you mention suspending your lease purchase program until the market stabilizes; I mean what does that mean? I mean, will not you want to be buying when it is chaotic and going when your stock goes down?

Ray Schimtz

Well, we had looked at this and we do not know where this market is going. I am not convinced that time with the market is that is at its fluent level and it can drag our stock down, we are going to take a little bit of time to look at that and see where it is going.

David Campbell – Thompson, Davis, & Co.

Yes, right. You have to become a little bit of the stock market forecaster at this point in that decision, is that right?

Ray Schimtz

At the bottom line is yes, we are taking away and see approach at this point. We are motivated, we are capable and we are going to move when we think the time is right.

David Campbell – Thompson, Davis, & Co.

And the last question is the fuel issue. You mentioned that it maybe not be a good assumption to stable fuel prices given the last few days but if you have had problems before and recovering higher fuel prices fast enough and your surcharges, you have envisioned that possibility happening again in this fiscal year?

Ray Schimtz

That is the reason I made the comment. The comment was related to the top line gross, in the fuel surcharge or if the fuel prices go up and fuel surcharge will go up and that will impact top line that was the context of comments that I have made.

David Campbell – Thompson, Davis, & Co.

Okay, thank you.

Ray Schimtz

Okay, you are welcome.

Operator

Our next question comes from the line of Alex Brown with Stevens, Inc. Please proceed with your question.

Alex Brown – Stevens, Inc.

Thanks. Good morning, guys. I just want to go ahead and way on down the on-demand force because I thought it was really impressive that that business was as strong as it was and it sounds like you feel pretty good about it but I guess the last piece I just wanted to ask was, is substantially all of that business now tied to customers that use other services or do you even measure what that percentage is?

Rick McClelland

Not a substantial amount I mean one of the main reasons we continue to be very focused on the on-demand product is because it does make the service menu that we offer clients very, very annullable to whatever their situation it is in. Simply put, some of them want six capacity, some of them want scheduled capacity and some of them want on-demand capacity and some of them want a combination of the healthcare area, this is one of the important industry verticals that the big user of all the service that moving product whether it is blood specimens, lab reports, x-rays and so forth between hospitals, clinics and labs and some of the product moves where there is a lot of density, there is a lot of movement, it is recurring and there is so much volume that the application is best served by dedicated drivers and vehicles and there is other traffic that is moving where it is just a pick you and a pick up there and it is scheduled and it is just a single pick up that you schedule in spite of the route for a driver that is doing a multiple stops at multiple locations and then there is what they called stock cost which could be organ for transplant or some other critical requirement and they want point to point on-demand capacity that is local, that is intercity, it is here, it is ground and so it is very, very valuable to the customer and so it is very important for us to be able to do that and then in a of case we do something more than 20,000 transactions a day and a lot of cases that the customers that are using the service uses for on-demand and nothing else.

Alex Brown – Stevens, Inc.

Great, that sounds like healthcare is pretty important and then office supplies has been pretty important, can you give us an idea how big healthcare is a vertical for your business these days?

Rick McClelland

I do not have any numbers at my fingertips that are really precise but I would tell you it is probably just a little more to 10% but we like that market of a lot. The bottom line is that it is a huge industry, that it is only going to grow given the aging population, it is never going to go away and you cannot email or fax blood specimens and some of the other products that we move so we like that spacing of a lot.

Alex Brown – Stevens, Inc.

And that sounds like if it is only 10 there is a lot of upside there. Rick I do not think I have heard you guys be quite as focused at least to things like it has been two or three years since you talked as much about margin opportunity as something you are focused on. Is there something there that you changed internally and then now you shifted maybe last year was more top line and now it is more of a margin focused or is it just as simple as you know there is an opportunity there because you scales now at a point where you can leverage it?

Rick McClelland

Well, it is a combination of things I think one of the issues and of the main issues that there is been a lot of focus on recently and we spoke about in the press release I think on the call earlier this morning is that we were very, very fortunate and secured a lot of new business and networks and so forth and probably the second and third quarter of ’07 and we did a lot of locations, a lot of networks in a fairly short period of time and it takes a while to get the network settled down and into some sort of an operating point I mean the bottom line is you usually cope three or four points out of your target when you launched and then you push really hard to get the number up there as you were by refining that networks sort of route by route. So, that has been a big push brush. We have seen our EBITDA at 7% before and maybe a little lower than that in some of the new business and the related challenges have cost us to be sort of high five low six and so I think it is just of two shift forward looking is that we want to make more substantial gains on EBITDA ratio so I think some short-term motivation and it turns a long-term aspiration that are motivated.

Alex Brown – Stevens, Inc.

Now, and you mentioned 7% then you have before talked about getting back to 7%, in terms of your network, I think you said in the past that you kind of feel like you have locations everywhere you need to be so it is not a model that has tremendous scale opportunities but have we reached the critical mass level where now you can get some better density opportunities than in the past and maybe there is more of a margins to worry than we have had in the past?

Rick McClelland

I think the margin in store is probably the same that has been in the past but let me talk with the network first. I think that the network as it relates to the company stores in so to speak, business centers that we operate and that we own and we control, I think that network is looking terrific. There is not a lot of market that we are not in with the company operations that we need to be. I think the network looks really strong. The franchise activity over the last 24 months has enhanced the network, 40 plus locations, that is terrific so I think the network is looking great which means that a big part of our opportunity is selling into the network and increasing market share which of course ties with the sales in marketing organization which is national account is a big, big part of that and I think as far as the margin story there is concern we feel like there are certainly at the SG&A area some pretty interesting opportunities to increase margins. There is fixed cost infrastructure there related to the branch offices, leases and property taxes, Telco and so forth. There is headquarter overhead and IT and executive cost and so forth that do not increase and lacks up with revenues also, Ray and I think that we can leverage SG&A somewhere in go forward basis and I think we are always going to continue to be very, very aggressive in the direct cost area. You can always be better. There are operations that are always changing, they are always influx customers that are adding routes and changing routes, volumes are up, volumes are down, their business is static and every time the needle point and a different directions is an opportunity to step in and refine things so I think there is some leverage in the SG&A area, I think we are going to continue to get some additional gains hopefully and the gross margin area where some of the accounts or locations that we are working on what we call them underperforming locations and we expect to make more progress.

Alex Brown – Stevens, Inc.

Alright, just one more question if I could, you sort of have a temporary post of a COO and I guess I just like your thought just to whether or not do you like you need more management depth, I mean do you need a COO because you seem to be doing just fine as it is and I am just wondering if that is something you feel like you need to fill that spot and were as management depth okay for now?

Rick McClelland

I think the most important thing that I can say about that is relates to our opportunity. We have been operating in Canada for many, many years. We have been operating in the US less than half the time we are operating in Canada and the Canadian business has got a runway. They are both $200 million in sales roughly. The business in the US is doing really, really well, great people, the market is good, customer response to our value proposition and so forth, it is very, very good and the bottom line is that the economic potential in the US is 10 times with the Canada so what we know is that if we just do not mess anything up which is to make big mistakes, the business here have to be in order to be a billion dollar business for us on a go forward basis, if we just simply exploit the opportunity in the same fashion we have it and in the same fashion we did in Canada so and it should be bigger than that just wider now, if you look at the Canadian sales and multiply the times of the size of the economy here in the US.

So, the bottom line is, do we need more management talent? Absolutely, we always are working pretty hard at growing the people that are in the business and we are always looking at outside the company to bring in new talent and quite often networks really, really well for us. We have a person running about least part of the country in the US and obtain the most side of the business a few years ago. He is doing a great job. He is potentially a regional president.

We have the similar situation in the north central area where we had a person coming from both sides of the company. He is doing really well. He is one of the big parts of the company. We brought somebody in to lead the franchise marketing efforts from outside of the company and I think, here obviously a couple of years now and has working out really well and sometimes you bring people in from the outside that helped you grow in some ways and helped you set the stage for the future and it does not work and it is not an easy thing to happen. Someone, a person coming in to a new company and sometimes coming in to new industry, it can be really, really difficult to get all the gears to match. It is tough, it is tough but sometimes it does not work and that means you have to react but on a go forward basis, we are going to continue to grow our people and we definitely going to look outside and I hope that…does that answer your question?

Alex Brown – Stevens, Inc.

Yes. That is great call, Rick. I appreciate it. Thanks for the time, guys.

Rick McClelland

Thank you.

Operator

There are no questions at this time. I would like to turn the call back to manage your calls and comments.

Rick McClelland

Great, thank you very much. Well, thanks for spending time with us this morning everyone and we are really happy with the numbers and we look forward to talking to you next quarter. Have a great day.

Operator

This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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Source: Dynamex, Inc. F2Q08 (Qtr End 1/31/08) Earnings Call Transcript

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