Insituform Technologies Inc. Q4 2007 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-03-05 11:45:11.0

Tags: Insituform Technologies Inc.

Question-and-Answer Session

Operator

(Operator Instructions) 0We will take our first question from Arnie Ursaner with CJS Securities.

Arnie Ursaner - CJS Securities

Al, good morning.

Al Woods

Hey good morning, Arnie.

Arnie Ursaner - CJS Securities

First question I have is a major swing versus my expectation was on the SG&A line. I am just trying to kind of backend fill here. We had previously thought you had as much as $4 million of corporate G&A in the tunneling section. It's pretty close to the amount that you beat us on the SG&A line. What was the SG&A in tunneling and now that it's discontinued how much did that impact Q4, SG&A, if at all?

Al Woods

Thank you Arnie, I am going to allow David to respond to your question.

David Martin

The one thing that is somewhat confusing with that, is the fact we that we had discontinued operations at the end of the year. We had certain amount of corporate allocation that was included in tunneling before. That's no longer allowed to be allocated to tunneling, so some of that came back to the other segments. But within the tunneling segment itself there was only about $0.5 million of cost for the quarter. It's included in discontinued operations. The fourth quarter operating expenses were reduced significantly because of several one time things, but it's also part of our ongoing cost reduction effort.

Arnie Ursaner - CJS Securities

And a little more time on some of the one times. I assume you've reduced headcount and I am also guessing you may have had some bonus reversals. Could you just highlight what the one times were the reduced SG&A expense.

David Martin

The first item relates to cancellation of the stock compensation by senior management, representing about $700,000. There were as compared to prior periods there were no little or no incentive compensation accruals made during the quarter. Therefore in a normalized basis you would have seen more expense. But in the quarter there was little or nothing. And then the rest of the reduction does come from actual expense reductions some of that being field expense reductions and some of that being corporate as well.

Arnie Ursaner - CJS Securities

Final question is a little more strategic. I know that there is a major engineering publication each year that does a survey of buyers of CIPP processing. And a year or so ago it had given us a warning things we're getting pretty tough. What is the current status of that and I remember Al you had indicated when you first came in, that you are spending a great deal of time with customers trying to get a feel for what you needed to do to get your percentage of their dollars. So two broad questions one is what are the dollars you are seeing being spent. Number two, what were you told by municipalities at that point and given the changing environment for municipal revenues, what would you expect to see today?

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement