Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Brandt Sakakeeny with Deutsche Bank. Please proceed with your question.
Brandt Sakakeeny – Deutsche Bank
Great. Thanks. Good morning, and thanks for the detail. Just couple of questions on first the broker headcount, can you give us the quarter-end broker headcount?
Gary Hunt
Sure, Brandt. Good morning. Broker headcount at the end of the quarter was 880, and that did not reflect the reductions that we made this week.
Brandt Sakakeeny – Deutsche Bank
Okay. So we got to add to that a net 70 number, is that right? But does that include – does that include the sort of netting out the 100 the purchase plus the 30 adds? Is 30 adds already in that?
Jeff Hanson
You can assume that we're going to be somewhere between 775 and 800 by the end of Q4.
Brandt Sakakeeny – Deutsche Bank
775 and 800 by Q4. Okay. Great. And just going to the covenant changes, obviously, there were a handful of important ones with respect to EBITDA coverage ratios, debt coverage ratios, buildings, things like that. Can you just give us a sense for which ones were waived and your assessment now of any particularly restrictive covenants that are left that you hope are going to be renegotiated going forward?
Rich Pehlke
Well, sure. Most of the covenants that we adjusted for – in the amendment related to either total leverage or the core EBITDA, simply reflecting the impact of what happened with our business. Going forward, we have committed to our bank group to work on shaping up our balance sheet and continuing to bring down indebtedness. We are committed to selling the five assets and committing the proceeds back to the banks to lower indebtedness. We've said often that this is not a capital intensive business, other than the fact that in the private programs business, which is the tenant in common side, is when we usually have to put operating capital to work. We are being very conservative as we manage that business going forward so that we can work within the constraints of the covenant. No CFO will ever tell you that covenants aren't restrictive, no matter what they are. I'd love to have none, but that's not reality in today's environment. So we're committed to working under the amendment right now, and we're going to take it one day at a time.
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