Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Kevin McVeigh - Credit Suisse.
Kevin McVeigh - Credit Suisse
On the revenue guidance, assuming $167.0 million, I would be interested in your thoughts on the SG&A just from a travel perspective. Obviously there is a pretty significant run off in revenue. Why the flat SG&A? Are there levers you could pull? It sounds like you are obviously going to keep the office footprint intact at this point. But your thoughts around SG&A would be helpful.
Nathan W. Franke
As we mentioned earlier in the call and as we mentioned last quarter, approximately two-thirds of our SG&A is the people costs that make up our offices. And then another 10% or so is the actual office footprint, the real estate costs, and related costs to that.
So, I think what we have to remember is when you look at that revenue run off, a big portion of that is the two weeks in Christmas and in New Year’s where we basically lose probably a little over a full week in revenue. We are always looking at SG&A and that is something that has continued focus, but we are not at the point where we are making drastic cuts or significant headcount reductions, which is ultimately where any significant SG&A dollars would come from, based on the components of our SG&A.
Clearly, we continue to monitor discretionary spend wherever it exists. But keep in mind that revenue run off is something that is related obviously to the holiday weeks here.
Kevin McVeigh - Credit Suisse
Have you seen any pick up in work around bankruptcy at this point or is that still in the relatively early stages?
Thomas D. Christopoul
For us, it’s still in the early stages. But there is no question that we are seeing lots of work coming to us. And I would call it in the category of just generally distressed activities. Some of that is in the form of bankruptcy and restructuring inquiries that we have gotten. Some of it is related to, as we have said in past quarters, the restructuring work that has been going on, as an example, in the financial services sector, for several months now. That has turned into opportunity for us.
We have seen that in the money center cities where the disproportionate impact has been felt. So we are starting to see that. The conversion of that is a much less predictable type of work than the progressive change that we typically see in an up market, but I would say it’s more than just a trickle at this point and we’re involved in those conversations.
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