Inventory was $24.5 million at the end of the third quarter of 2010, a decrease of $2.4 million compared to the third quarter of 2009. This decrease in inventory reflects increased equipment shipments combined with lower production levels during the closing of our Johnson City, Tennessee manufacturing facility.
Accounts receivable at the end of third quarter of 2010 were $82.4 million, flat when compared to the third quarter of 2009. Revolver borrowings of $37.0 million peaked at the end of the third quarter. Payment for pre-season orders begins in October and the revolver is normally paid down during November.
As previously announced, pursuant to the Company's dividend policy, its Board of Directors declared an initial quarterly cash dividend of $0.1825 per share of the Company's common stock. The declared $0.1825 per share cash dividend was paid on September 30, 2010 to stockholders of record as of the close of business on September 23, 2010.The Company also announced that its board of directors has approved a $0.0175 increase in the Company's cash dividend to $0.20. Effective in the fourth quarter of 2010, this change will be an increase of 9.6% from the initial quarterly dividend paid on September 30, 2010. James L. Janik, President and Chief Executive Officer of Douglas Dynamics commented, "The board's decision to increase the quarterly cash dividend reflects the Company's strong cash flow from operations and our confidence in the Company's financial strength." In accordance with the Company's dividend policy, Douglas Dynamics intends to pay a regular quarterly cash dividend on its common stock in equal quarterly installments to be made in March, June, September, and December. The declaration and payment of any future dividends, however, will be at the discretion of the Company's board of directors and will depend upon many factors, including the Company's financial condition or earnings, legal requirements, taxes and other factors the Company's board of directors may deem to be relevant.