Good morning and welcome to the Acuity Brands 2014 Third Quarter Financial Conference call. After today’s presentation, there will be a formal question and answer session. To ask a question, press star, one and record your name. Today’s conference is being recorded. If you have any objections, you may disconnect at this time. Now I would like to introduce Mr. Dan Smith, Senior Vice President, Treasurer and Secretary. Sir, you may begin.

Thank you. Good morning. With me today to discuss our third quarter results are Vern Nagel, our Chairman, President and Chief Executive Officer, and Ricky Reece, our Executive Vice President and Chief Financial Officer. We are webcasting today's conference call at www.acuitybrands.com. I would like to remind everyone that during this call, we may make projections or forward-looking statements regarding future events or future financial performance of the company. Such statements involve risks and uncertainties such that actual results may differ materially. Please refer to our most recent 10-K and 10-Q SEC filings and today's press release, which identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Now let me turn this call over to Vern Nagel.

Thank you, Dan. Good morning everyone. Ricky and I would like to make a few comments and then we’ll be happy to answer your questions. Our results for the third quarter of 2014 were very solid. Our net sales increased almost 12% this quarter exceeding $600 million in the quarter for the first time in our history while we earned $1 per share. In fact, this was the fifth quarter in a row where we achieved double-digit sales volume growth. In addition we continued to make excellent progress with a number of strategic initiatives as I will mention later in the call. Also noteworthy, sales of LED-based lighting solutions now make up more than a third of our total sales. We believe this level of growth is yet again positive evidence our strategies to provide customers with differentiated value propositions to diversify the end markets we serve are succeeding, allowing us to extend our leadership position in North America. These strategies include the continued aggressive introduction of innovative, energy-efficient lighting solutions, expansion in key channels and improvements in customer service and company-wide productivity. Our profitability and cash flow for the quarter were again strong, even as we continued to fund our robust sales growth as well as other areas with significant future growth potential, including the rapid expansion of our lighting solutions and components portfolios. I know many of you have already seen our results, and Ricky will provide in more detail later, but I would like to make a few comments on the key highlights for the quarter; however, before doing so, I would like to comment on two abnormal items impacting this quarter. First, with regard to the warranty issue we noted last quarter due to a design defect in an older, incandescent emergency lighting product, we took…

Thank you Vern and good morning everyone. I’ll highlight a few items regarding our income statement. I then will discuss our cash flow and financial condition before turning the call back to Vern. Vern covered the primary drivers for our sales growth and our profitability, so I will not repeat these items; but I will provide a bit more color on certain aspects of our first quarter results. Our gross profit margin for our third fiscal quarter of 40.3% decreased 70 basis points compared with the adjusted year-ago period. As Vern mentioned earlier, the benefits of the 11.5% increase in net sales, and an improved productivity were offset by the 70 basis point impact of the additional cost due to the product design issue and unfavorable currency impact. In addition, gross margins were negative impacted by price mix and the inefficiencies of renting up our electronic component manufacturing capability as Vern discussed earlier. The Company and the U.S. consumer product safety commission announced a recall of certain incandescent emergency lighting fixtures on May 28, 2014. As Vern mentione4d earlier, we’ve recorded during the third quarter $2.1 million of additional cost related to this product design issue which brings the total estimated pre tax expense for this matter to $4.5 million. The additional estimated cost recorded this period is primarily due to the highest revised estimates related to the product cost and labor to properly handle this issue. While it is possible that there could be additional cost associated with the ultimate resolution of this issue, we do not currently believe they will be material and the amount recorded is our best estimate of the total cost based on what we currently know. The unfavorable currency impact was primarily due to the Canadian dollar which weakened by 7% year-over-year relative to…

Thank you, Ricky. As we look forward, we continue to see significant long-term growth opportunities. With regard to our expectation for the balance of calendar 2014, our view has not changed. We remain very positive. So while we don’t give earnings guidance, I would like to reiterate what we’ve previously mentioned regarding our expectations for the rest of 2014. First, most economists expect the economy in North America will continue to improve at a modest but increasing pace. Our forecast for industry growth rates by independent organizations continue to vary widely, the consensus estimate is the broad lighting market in North America is expected to grow in the mid to upper single digit range for the rest of 2014 and accelerating into 2015 reflecting the benefits of both new construction and renovation activity. Further, we continue to see other signs that give us optimism regarding the future growth of the markets we serve in our business. Leading indicators in the North American market such as the Architectural Building Index, vacancy rates, office absorption, lending availability, and the rebound in residential construction continued to improve. As has become the norm over the last handful of years, we are always leery of the next round of uncertainty that might come out of Washington regarding fiscal issues as well as foreign policy. As you know, the manner and how these key issues are handled can meaningfully influence business and consumer confidence. Nonetheless, we continue to expect that the overall demand in our end markets for the balance of calendar 2014 will continue to improve and be more broad-based and consistent than experienced in 2013. The continued favorable trend in our June order rate again seems to support this continuing level of improvement. Second, excluding certain LED components which are expected to continue to…

(Operator Instructions). The first question is from Christopher Glynn from Oppenheimer. Christopher Glynn – Oppenheimer: Thanks, good morning.

Good morning. Christopher Glynn – Oppenheimer: The Fire drill wasn’t so bad on our end.

It was pretty bad, and that’s it. Christopher Glynn – Oppenheimer: I bet. Just wondering what your view is on how much cash is needed to run the business, and you know what outlets you are seeing for using some of the excess cash?

Yeah, Chris, as far a normal working capital needs in the $50 million to $75 million, generally will support our ongoing working capital fluctuations and capital spending ebbs and flows, so as you can tell, we do have quite a bit of dry powder in the cash that we have. Consistent with previous comments, our first priority is to invest in the business in organic growth and then second would be acquisitions, and we do see quite a bit of opportunity on the M&A side, and we’ll continue to look at that and then absent that, we certainly have used our excess cash to repurchase shares as well as continuing to pay our standard dividend.

Chris, we expect to continue to generate very very solid cash flow growth. As Ricky pointed out, it takes us about $0.10 or $0.11 of operating working capital to support every dollar of increase, and we are working our inventories back down to more normal levels as we learn how to manage both LED luminaires and the production of conventional luminaires. I think on the CapEx side, Ricky, we’re between 1.5% and 2% of revenues. We will be probably investing a little bit more next year in terms of building out just the ability to house our growing staff. And as we go from $2 billion to $4 billion and $5 billion of revenues, we will drive productivity throughout the business, but it’s pretty obvious that we’ll be growing our salaried head count, and so frankly, we’re out of capacity, so we are looking at ways to resolve that. But we still should be able to operate reasonably well within that 1.5% to 2% of sales from our capital investment perspective. Christopher Glynn – Oppenheimer: Okay. Thanks for that. And on the acquisition pipeline, that’s – is there a good range in breadth of different size type deals?

I would say that there is, I mean again as we’ve pointed out, we are looking for really three capabilities, one to enhance our technology capability, number two to enhance the product portfolio capability maybe from a design perspective. We’re also looking at the opportunities for geography expansions, and as you know, we look to continue to build out our residential platform. So from – there’s nothing out there where it’s a must have, but the opportunity for items and acquisitions that can help accelerate our capabilities in these areas, Ricky and his team are very, very busy. In the range of sizes, it’s interesting from very small, take Adura for example, a few items that are larger but when we say larger, we are talking hundreds of millions of dollars; we are not talking merely larger than that. Christopher Glynn – Oppenheimer: Great, thanks for that color. And then just a housekeeping, the 35.5% tax rate for the year, I think that sort of implies a record high in the upper 30s in the fourth quarter, is that appropriate?

Might be not quite that high, it again depends on any changes, but it will probably be a little less than that, probably closer to that 35.5% to 36% for the full quarter. Christopher Glynn – Oppenheimer: Okay. Thank you.

The next question is from Brent Thielman from D.A. Davidson

Hi, good morning. On the price mix headwind, does that reflect a specific channel, a change in markets within non-res that you are serving or kind of a change in the broader product portfolio?

No, Brent, it was interesting this quarter. We were hopeful if you will for a more rich mix of products sold, absolutely impossible to predict the way the mix plays out, but when we look at it, it really was certain products migrating, just simply products moving from one type to another and more in our conventional light source products, it was just interesting to us. I believe that this product mix shift that we experienced this quarter is more of a temporary activity again impossible to predict. When we look at mix over the full 12 months, I think that that will be a more representative mix, if you will. And to us, we still fluctuate between channels, different channels have different margin profiles, but they also have different if you will return on investment profiles. So when we looked at the mix this quarter, and when we passed all the noise, I mean the way I’d looked at it, our adjusted gross profit margins were 41.2%, and that’s kind of getting us in the range. If the mix had been a little bit more traditional around the product side, we would have enjoyed even a higher margin expectation. So, we’ll just have to wait to see. When we are in that 41% to 42% gross profit range where we are today, we feel that we’re hitting our stride. We have to get past -- we’ve gotten past we believe the warranty issue. FX, there’s not really a lot that we can do to forecast that, and we are ramping up our capabilities in the electronic components space, which will provide us with several things; one, features and benefits that are of a very high quality if you have a electronic component capability, assured delivery and ultimately we believe a significant cost advantage. So, all of these things that were kind of impacting this quarter, our expectation is that though it will either go away or that will yield future benefits as we go forward.

Okay. And then just second when you look at kind of the entire construction you know retrofit in market landscape, are there specific sectors in the market that you are choosing to avoid because it doesn’t meet your parameters for margin returns maybe it’s too crowded or the opportunity for product per square footage isn’t as appealing.

Well when we look the way we attack if you will the renovation markets we have a number of sales forces, we have a number of channel partners. So what we are looking to do is to support them in their focus to their end customer base. And given our size and scale and the way we – the product portfolio that we have there really aren’t too many areas of opportunity that we won’t explore or aggressively go after. Obviously much of our business is a bid business, there are at times folks that will bid projects at price points that we don’t feel are really prudent. So we’ll either not play or we’ll work hard to differentiate our portfolio in a different way. So I would say the answer to your question is no, there’s no one or two areas that we would deploy but we look to aggressively go after business opportunities and then use our sourcing capabilities and the great strength of our many associates to drive cost out to make it a profitable venture for our shareholders.

Thank you.

The next question is from Brian Lee from Goldman Sachs Thomas Daniels – Goldman Sachs: Hi, guys, this is Tom Daniels on for Brian. Thanks for taking my question. First, you know maybe for Vern, I was wondering if you could kind of dive into a little bit of the market share gains clearly for many quarters here you guys are outpacing the overall market and your LED lighting sales are significantly outpacing competitors. And my question is you know as the lighting gets more and more kind of technologically improved, is this a long term market share gain for Acuity and do you think the dynamics in the offshore market can change pretty meaningfully over the next decade as LEDs become such important part of the portfolio?

We do see opportunities to take advantage of what technology means coming into our space. For us LED and the notion of solid state lighting is really an enabler for future opportunity. Again, you saw that in our press release, we commented on the notion of visible light communication technology. This is really in conjunction with Qualcomm and Lumicast our opportunity to deliver to the retailing space just as an example a value proposition that is not just about quality of light and energy savings, represents a huge potential market for Acuity and in our partners to really drive that kind of value. So when we think about the investments that we are making today in terms of eldoLED, in terms of our electronic component capability, it’s really so that we can bring more value to those end applications. Our view around the market place continues to evolve. So, we call this a tiered approach to lighting solutions. If you imagine in the first year, it’s for simply product features and benefits price points. But then you start to migrate along peers where you are able to add more capability into a more holistic solution, we think that that brings even more value through its healthcare facilities, commercial office buildings, industrial spaces, outdoor and by doing so it really changes if you will to paradigm shift between just providing light into its space that now providing of light and other information that can come of off these LED luminaires which are really also communication devices. So for Acuity, we see the opportunity to significantly expand our addressable market since the acquisitions that we’ve made of companies like Renaissance and Adura and eldoLED Pathway Horizon these are all creating a capability within our portfolio to provide intelligent, holistic lighting solutions to these applications in a way that they have never had before. So you couple our supply chain with our great technologist and our access to market, I do think that it gives Acuity the opportunity to participate more meaningfully in a very rapidly growing market place over the next decade and beyond. Thomas Daniels – Goldman Sachs: Thanks for that color, Vern, appreciate it. Just my one other follow up, can you remind us in prior cycles as we start seeing on res construction I noted lackluster today, as we start seeing those construction numbers improve is there a lag effect for when Acuity actually starts seeing the unit volumes increase, I thought it might to six to twelve months, but just wondering if you could comment on that? Thanks.

Ricky, we do have some pretty good data that shows going back to the kind of middle [age] is that cycle and how this cycle works maybe you want to comment a little bit on it.

Yeah, clearly there is a cycle around the specification when a building, it’s designed and in the specification it’s got to come out of the ground, you got to get tenants in it and lighting is one of the last things to come in. And you’re right, it tends to be six or twelve months we use nine months as kind of an average on many other construction put in place type of data that we look at, if you look at the architectural building index, the lag is even longer, cause there you are actually just designing it. But there is our construction cycle lag, I would say is renovation becomes a bigger part of our total mix, now roughly half of our mix there the lag is much less, typically in a renovation situation once they decide to renovate it can move quickly, on other times though they all want to do an audit and study it for a year or longer so that six to twelve months is a broad range of what I would think is reasonable lag to most of the major indicators that you would see out there.

And Tom, just to add to Ricky’s comment, we know that on an inflation adjusted basis in the U.S. non-residential construction is off 25% from it’s peak and yet Acuity this year will that’s the number the analyst all have $2.4 billion of revenue. We are 20% above in terms of total revenues where we were at the peak in 2008. And to Ricky’s point, it’s because we’ve really diversified the end markets that we serve and we are not as directly tied to new construction because of the expansion of our product portfolio and how we have altered our access to market to participate more wholesomely and the renovation work. Thomas Daniels – Goldman Sachs: That makes a lot of sense. Thank you very much guys.

The next question is from Matt McCall from BB&T. Matt McCall - BB&T Capital Markets: Good morning, guys. So on the electronic components investment, Vernon you mentioned two things. You mentioned the $1 billion market opportunity and then you mentioned the cost advantage. Can you, is it more of a cost advantage to kind of vertically integrate that or is it more of a revenue opportunity and then how do we – how would you recommend that we model that billion dollar market potential over the next so many years.

So Matt, our investment in eldoLED was really made because we saw the opportunity of eldoLEDs superior functionality and the quality of the driver. Their ability to dim the dark in unmatched in the industry today. And so, as LED continues to portrait and of course it will, we felt strongly that having the ability to have a superior LED driver that’s programmable and then expand its portfolio so that it has also cost features and benefits and in a tiered sort of capability was going to be very valuable to Acuity. We also felt that the opportunity available led more of an industry standard. We are making eldoLED available to the industry, so all those this is a trending strategy, so others have access to the eldoLED capability for their designs and their products. So our view was that this is a great capability. You saw from the announcement and that [indiscernible] you had liked there but you saw that the Lumicast technology of that lead introduced in conjunction with Qualcomm, and light there is really enhanced because of eldoLEDs internal capabilities to do so many things and do those so well. So the Lumicast technology that’s being made available and will be tested here shortly provides a superior mobile device retailing experience with accuracy and speed that’s unmatched by others that have potentially for claiming potentially similar type programs. So eldoLED was a growth strategy and now as we look at it the opportunity for us to continue to drive cost and to give cost and our OEM customers a cost advantage is there. We certainly won’t make every LED driver, we will have a broad supply chain as we do, but this is a capability that allows us in our tiered solution approach to offer more features and benefits that have great quality. Matt McCall - BB&T Capital Markets: Okay. That’s helpful, thanks Vernon. And then my other question. You talked about variable comp, freight expenses, higher employee cost as being or increasing your SG&A is – does the math change there you talked about that $95 million of fixed cost and then the variable component varying at about 11.5% rate with sales. Is that still the right number to use, do we expect and then CapEx is projected to increase a little bit in Q4, is there going to be some more seasonality with it, some more investment that’s going to take that higher, how do we look at OpEx as over the near end and out in the next year?

So Matt, let me be clear, was that one question or 50? Matt McCall - BB&T Capital Markets: One question with many parts, thank you.

Okay, let me start and I’ll start a little bit. This particular quarter, our freight commissions expand were slightly higher than what we would normally expect to probably 30 bips higher. Usually we are in that 11.5% to 11.6% of total revenues; again we were 30 bips higher. I think that that was a little bit of an abnormality so we would expect overtime that to find it’s average again, 11.5% to 11.6%. When it comes to the fixed cost and obviously it’s not completely fixed because we have incentive compensation and other items that are somewhat like that in there, our view is that we are increasing that fixed base and again, I want to be very clear about this. We are investing in things like eldoLED; we are investing in capabilities like partnering with Qualcomm and Lumicast. These are outside of if you will to traditional or historical businesses that Acuity was focused on. And the reason we are doing is because again we see great future potential that really is expanding what we would consider our addressable market and the future opportunities that are out there. How quickly some of those were rolled in, you know time will tell and we’ll provide more information as we know more information. But we see such huge potential we want to continue and invest. So that brings me all the way back then to your question around fixed, sort of that fixed piece. We were averaging about $95 per quarter. My guess is that you’ll see – you ought to see that ramp up. I think this quarter were close to $100 million, $99.3 million sort of exact numbers. My guess is that based on our headcount, we’ve added about 50 to 60 folks here over the last quarter and…

Thank you.

The next question is from Mike Ritzenthaler from Piper Jaffray

Yes, good morning. My first question is a follow up to a previous one on the pockets of strength within C&I, particularly as it relates to public sector projects. I was curious if its accelerated bidding activity generally speaking there and can you remind us of the relative importance of public projects in Acuity C&I portfolio?

Yes, you know from a bid perspective and I won’t single out just public sector bids, but if I look at our overall quoting activity, quoting activity continues to be up nicely and obviously our bid rates continues to improve and see a notion of market share gains. When we look at the end markets, our roadway business continues to be very strong and that was building out the portfolio three and four years ago that really altered the competitiveness and I think we had meaningfully gained share and we were loosing share for a while there because we were slower on the uptake within the LED world and that no longer is true. Acuity is again leading not only from a technology perspective but we are the largest outdoor lighting manufacturer company in North America. When we look at schools and that type of works, yes it’s the budgets in many of these states and these local municipalities continue to improve. We are starting to see an improvement in what’s happening in schools but lets be clear, schools is still a fairly soft market based on historical standards. And we truly believe that there is a lot of pent up demand because populations continue to grow at roughly at 2% per annum and yet schools have probably had a three year hiatus in terms of their developments. So eventually that breaks. Roadway, there’s a lot of again opportunity as people continue to look at the benefits of LED luminaires versus particularly as we introduce controls into those LED luminaires that can do many more things other than just monitor the luminair.

Got it. Excellent, thanks for that. And then a follow up question on the warranty issue and whether the current situation with the emergency signs will change or modify in some way the normal accounting mechanics going forward of the percent of sales reserve for warranty or if it’s kind of a temporary blip?

Ricky, this particular incidence would not adjust necessary our process of accruing for warranty because this is a recall situation which thankfully is extremely rare for us to experience some thing like that. But we have you know continued to adjust our normal warranty accrual based on the typical experience that we have and with the newer technologies in the broader portfolio we have been monitoring that very closely and have seen a modest increase in the percentage of our normal warranty accrual as a result of the more solid state and the longer periods of warranty five years for example that we typically would offer for an LED warranty versus a shorter period that was normal or incandescent plus now we would trend more of that warranty than we did in the past. So a modest increase, nothing significant but we are monitoring that closely and making the appropriate adjustments in our accrual processes.

That makes sense. Thanks guys.

The next question is from Tim Weiss from Baird. Tim Weiss – Robert W. Baird: Yeah good morning guys. I guess just on the mid-to-high single digit market growth that you guys talked about, what do you think gets the market to the lower end and the upper end of that range?

So for us we are not economist, but what we do is we try to triangulate amongst the whole bunch of data points. We use [NEMA] we look at what their prognostications, so they are pretty consistent around the growth of the lively market. We look at all of the other industries that I had mentioned whether it’s ABI, a whole notion of absorption, population growth that’s happening with for example rental rates on and so forth. And a lot of these signs continue to flash nice green, there is not a lot of yellow out there, so I believe that given how long we have and in the sort of doldrums of non-residential construction it makes sense to us that this cycle begins to build on. And so I won’t be political here, but this recovery has been the slowest recovery on record. So it’s not – this is not abnormal to see this type of generation flow into certain markets around the country and you see that space has been well absorbed so now they are into the new construction phase out in California. Northern California for example you know two years ago there were few cranes in San Francisco today there are many. Same thing is true to the northeast. So all of these signs are giving us I think a positive feeling that the trend that we have prognosticated is alive and well. I believe that as business conditions continue to improve we actually can see a shortage of certain types of real estate and so therefore it will attract capital, it will then create investments and will spur us on. As Ricky pointed our earlier the renovation world for us is a huge market. It’s we’d estimate north of $300 billion installed base 70% of which was put in place before 1990 converting very slowly. So how folks get after this market as that market will also I think slice this too and we expect that renovation will continue for quite a long time to be a meaningful part of our business or then say it was in 2008. Tim Weiss – Robert W. Baird: Okay, that’s helpful. And I guess you raised the market outlook last quarter, is there anything over the last three to four months that you have seen just talking with people by [fair] and some of your agents that gives you more confidence in that range relative to last quarter and as you look into 2015?

I believe that there is a – there’s enthusiasm for the broad market in general so you could talk to any of my competitors or other industry participants and I think they would tell you that broad electrical industry and then more narrowly define the lighting industry will be a very solid place to play over the next decade particularly as more technology comes into place. But when we look at Acuity, we get quite excited about our future and our future meaning our long term future because we see the opportunity not only to provide discrete products which we are good at, but also now the opportunity to provide varying levels of holistic lighting solutions that incorporate not only the Luminary itself but now sensing technology, control technology so folks can do so much more with that solution. Again, we are very excited about the whole notion of how we are delivering sort of our visible light communication technology in partnership with Qualcomm. We think that these retailers will be very excited to not only have quality of life, tremendous energy savings, but its an additional revenue source so we are very excited to continue to invest in ways that where technology is an enabler to us to expand our adjustable market. It wouldn’t surprise me that if over the next 12 months we redefine our addressable market to be much larger than what it is today. Tim Weiss – Robert W. Baird: Great. Thank you.

Colin Rusch from Northland Capital Markets, your line is open.

Thanks so much. So just following up on that point about the addressable market, obviously if you got these control systems in place is a significant software or a software as a service opportunity for you guys to potentially address, can you talk a little bit about you know the direction of these partnerships are going you know the part of this question. And the second part, you mentioned the 24% return on invested capital you’ve been very I think disciplined as investors over the course of the years. Could you talk about expectations for return on investment with these partnerships?

These relationships that we have, we have been working on for really sometime and they come in all forms. We have strong relationships with our supply base, and so how we work with suppliers, some of whom are even competitors, but how we work with those folks to bring value has always been one of the hallmarks of Acuity and really understanding the end market and then being able to bring the best players to really solve that problem I think that is a great skill that we have. As solid state or electronics come into our world, it’s allowing us really to take a blank sheet of paper and think very differently. It’s almost a world of apple, how do you bring apps, how do you take advantage of what technology is allowing you to do. What’s truly amazing here is if you take eldoLED which is a programmable dimmable driver that provides really no stroboscopic effects on luminaires. Some of our competitors and other component suppliers actually can’t make that claim. It allows us to provide quality of light into its space, but also now be a communication device and a clean communication device. So to us, this is fantastically interesting. So -- we can do many things, we certainly can’t do everything so we are in conversations with many folks, not only suppliers but also potential other access points to market channels if you will that we have never really traditionally talked to before, now we are able to bring I think a very differentiated capability. Every building and every street need to have a light of some type. It’s now a communication device. So how we take advantage of providing superior quality of life, energy savings and now other potential revenue streams from that communication device is a unique capability. Our luminaires now have sensing devices in them, comes from one of our acquisitions that we made about four years ago Ricky was with Renaissance. So all of these pieces in parts are now really starting to come together in a way that will allow us to provide tiered solutions to folks in these end applications as they warrant and it’s opening up a whole new world for us in terms of who should we align with and how and generally speaking you are getting the best players coming together. There are other folks that are out there offering some type of mobile device into the retail space; we believe very strongly that when the market really sees the combination of Qualcomm’s Lumicast technology with our superior lighting we have really a very very robust offering that would be hard to match.

Okay and then just changing gears a little bit. Just talk about two things, one, any change in geography in terms of end market go through within the U.S. just on a regional basis? And then if you could comment on opportunities in agricultural light space, what you are seeing there at this point?

I would say from a geographical perspective we are starting to see nice growth in those markets that have LED certainly but technology and/or pick the west coast, San Francisco you’ve got LA moving up. You take the east coast, where you’ve Boston, and Washington still, all of these markets are starting to improve where job growth is occurring you are seeing nice construction activities. So I would say that from a geographical perspective we are seeing a reasonably broad based approach. We look in some of these markets where they have for shale gas and in opportunities they are on fire, I mean, because they are growing so rapidly. So where there is share growth there is opportunity, where there is political sort of intrusion or intervention, you see slower growth. Ricky.

I would agree. Certainly seeing it in those areas where the employment is taken up which is one of the big drivers. On the agricultural question, that is not a market that is a strategic focus for that, you are seeing that a pick up for certain niche players in that markets but it has not been a strategic focus for us to participate in that agricultural growth type lighting.

Okay. Thanks a lot guys.

The final question comes from Winnie Clark from UBS

Good morning thanks for taking my question. I wanted to talk about mix a little bit more. You have seeing better trends in higher margin products over the last couple of quarters from an order perspective. It sounds like you thought you might have benefited from it a little bit more in 3Q, would you expect these orders to start driving and improving in the mix dynamic next quarter, is that likely to be something you see in ’15?

So it’s hard to predict what next quarter looks like. We’ve seen our June order rates and so we’re favorably inclined and hence we made the comment that we think that again our order rate for the month after the quarter continues to reflect sort of the growth trend. But yes, I think as we go into 2015 our expectation is that our margin should gradually improve as we continue to sell what we call more tiered solutions. As we migrate down the value add curve, where it’s not just a single product type competing features and benefits and price is more about how does the whole system work and what are the benefits that come off of that. We believe that that will yield a higher and a more rich mix and therefore margin. With regard to the fourth quarter, we don’t really prognosticate but I think this quarter for us was just a little bit – it’s the way the mix flowed in terms of some of the projects that we had I would expect that as we continue to see volume growth and as we continue to do cost outs, as we continue to probe these markets on these various solutions our expectation is that our mix will continue to evolve in a more favorable way. I can say when I do the puts and takes, I kind of do a back of an envelope, sort of calc, and our margins gross profit margins were 41.2% for this quarter. Again, improvement particularly improvement over the second quarter on an apples-to-apples basis and so I would hope that that trend continues and that the headwin that we faced this quarter from a mix perspective does abate somewhat. And the other point that I made earlier is our freight cost and our commission cost at combination was a little bit higher than what we typically have experienced and hoped we would see a little bit of regression act of – for more among that as well.

Okay. Thank you. Last quarter while you noted it was hard to quantify you thought whether it could have been as much as a 3% headwin I think you said you don’t think you saw any weather catch up in the current quarter. Is that something you still think you could recapture you know during the peak season?

It’s a great question. Interesting to us we all speculated is it would be something that we would [recoup] and I think you saw lots of industrial companies come out afterwards and make commentarial round how the weather impacted their business. We did not see in the channels that we particularly watch a rebound and we try to watch certain projects and those projects simply just played out the way they were going to play out. So we don’t really think that there was any meaningful impact and certainly there was an order here or there that flowed through and it was accelerated trying to benefit or meet time deadline. But in this case generally speaking we just feel that we recaptured any of that nor do I think that we’re bound to recapture. I think that everyone’s adjusted their construction cycles and they are just simply moving forward.

Great. Thank you.

I would like to turn the call back over to Mr. Vernon Nagel for closing remarks.

Thank you everyone for your time this morning. We strongly believe we are focusing on the right objectives, deploying the proper strategies, and driving the organization to succeed in critical areas that will over the longer term deliver strong returns to our key stakeholders. Our future is very bright. Thank you for your support.

That concludes today’s conference. Please disconnect at this time.