Blount International CEO Discusses Q3 2010 Results – Earnings Call Transcript
This quarter we have supplemented our press release with a presentation that can be found on our website at www.blount.com. This presentation highlights the operating trends of the quarter, provides details on our full year outlook and includes other data points that we have historically disclosed in our prepared remarks.
Our intent is to provide these disclosures on a supplemental basis, shorten the length of our prepared remarks and allow more time for your questions.
Now I’d like to turn the call over to Josh Collins, our CEO.
Josh CollinsThank you Cal and thank you all for joining us on today’s call. First I’ll take a few moments to discuss the highlights of Q3. After that, Cal will cover some of the financial details. I will then conclude our prepared remarks by outlining our revised forecast for 2010.Overall Q3 was an extremely active quarter for the company. As we have communicated earlier, we refinanced our balance sheet on August 9th, 2010 we paid $425 million dollar amended and restated senior credit facility led by GECC. We closed on the acquisition of SpeeCo on August 10 for approximately $92 million dollars fully loaded. We sold Gear Products on September 30th to complete the divestiture of the last non-core asset of the company.All of these actions were aimed at increasing shareholder value, which is consistent with our overall strategic plan. Let me comment briefly on each of these actions before I discuss in details on our Q3 results.Restatement of our now $425 million dollar senior credit facility allowed us to entirely pay off the $175 million dollars of relatively expensive eight and seven eighths notes. We expect this to reduce our annual cash interest expense run rate by $6 million to $7 million dollars. Additionally, the facility provides the financing flexibility to pursue our strategic programs or pay down debt as cash flow allows.
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