TMST
#Good morning, <UNK>.
Yeah, I'll start with the pension.
The pension obligation at year end was pretty much fully funded.
If you look at our funded pension plans, they were fully funded so we don't anticipate any cash contributions to our pension plan.
In the first quarter, we reimbursed for our 2015 OPEB costs so that's what the $13 million are.
And then going forward, for all of 2016, we will pay the claims right from the VEBA trust rather than from operating cash flow.
So the net cash out relative to OPEB will be about $2 million for the full year.
Yeah, first of all, in guys have done a good job on working capital, taking a lot of working capital out of the business.
Last year we reduced our working capital by about $150 million and then for the first quarter, you know, it was call it break evenish, even though our revenue was up.
So that's a good job.
You know, the story for working capital for the year will be depends what sales will be for the year and what revenues are.
But so specific to Q2, we've called revenue flat so we wouldn't anticipate much change in working capital one way or another.
Yeah, you know, I would say most of the cost cutting programs are fully in force as of Q1.
So while I think there could be some smaller additional reductions, I wouldn't anticipate them to be very large.
I think what's really helped us is that enterprise-wide we've had all engagement from our employees so I don't want to sell them short because as you can tell in the first quarter, the cost reduction was a little bit better than we thought it would be.
So, you know, hats off to everybody who was involved at that at <UNK>ken Steel but I would not anticipate a significant increase in cost cutting run rate after Q1.
No, there really isn't.
The revolver has a borrowing base and that borrowing base is based on accounts receivable, inventory and fixed assets.
And so as our working capital changes, the borrowing base changes.
So one of the things that we did is we now have a lot better feel for our borrowing base.
It's one of the reasons we reduced the size of the revolver from 300 million to $265 million because we're never going to have a borrowing base close to $300 million so we thought $265 million would be the maximum that we would need to borrow.
Sure, <UNK>.
Probably the first thing I would point out is making, having free cash flow in the first quarter was helpful and so we're just evaluating our needs.
We don't want to borrow money that we may not need but we keep our eyes open into the capital markets about what we might want to do to boost liquidity going forward.
Thanks.
We would anticipate that the sale leaseback will close in the second quarter and that would be considered an operating lease.
But we'll provide more guidance on that once we're done.
Well thanks for your question and thank you for your interest in <UNK>ken Steel.
We've got some bright spots this quarter but 2016 will continue to be a challenging year so we're not taking our foot off the gas.
Our performance in the quarter demonstrates that our employees remain diligent in taking right actions to perform in a difficult environment and I want to thank all of them for their efforts.
If you have any follow-up questions as usual please don't hesitate to call <UNK>.
Thanks again and have a great day.
