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The Gathering
    Storm
What the heck is
going on out there?
Mortgage meltdown
Gas prices up and down
Credit is drying up
Layoffs
Unemployment is increasing
Marginal companies will fail
The DOW is crashing
401K >>>> 201K
Housing values are declining
and will continue to decline
Credit card debt is increasing
and will be the next storm cloud
Folks are tightening their belts
Fear, uncertainty and emotion
   are driving the markets
Election hysteria is
magnifying the problem
How will this impact
    business?
The weak will fail and
the strong will prevail
Businesses will become more
  cautious and unwilling
        to take risks
What should any
 business do?
Get your storm clothes on
and batten down the hatches,
  we’re in for a bumpy ride!
Be prepared for
………………………………..anything!
What have you
personally experienced?
Past is prologue
What can Littlefield
  do about this?
Increase revenue
Increase and conserve cash
Manage, reduce expenses
Institute a fierce zero based
      budget discipline
When in doubt, do without!
Cancel, delay capital spending
Secure capital to grow
What am I
considering doing?
Ratchet up performance, drivers
Eliminate three positions
Across the board pay cut
      of 12.5-15%
Cancel/delay all bonuses of any
     kind for 12 months
No compensation actions until
  6-30-2009 --- re-evaluate
Evaluate benefits, eliminate
    wellness program
Reduce overhead by 20%
Delay capital projects
Create profit sharing equity pool
Do we know what
 we are doing?
Been there, done that,
   got the t-shirt
If I make the wrong
decisions, you pay the price
How are we going to
 measure success?
What we measure,
  we manage
Total revenue
Total expenses
Net operating income
Expenses as a %
  of revenue
Operational parameters
How long is this
going to take and what is
 really going to happen?
This may take 12-24 months
It is probably going to get
worse before it gets better
Obama --- you cannot raise
taxes to cure a bad economy
McCain
Republican President
+Democratic Congress
 = very little progress
We will communicate regularly
      and you can look
       at the numbers
We will prevail because
 we moved quickly
Tough times
  do not last,
tough people do!

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The Gathering Storm