Force Protection, Inc., Q4 2008 Earnings Call Transcript

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2009-03-16 16:20:29.0

Tags: Revenue, Buffalo, Call Transcript, Earnings, General Dynamics Corp., Force Protection Inc., Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Our first question comes from the line of Chris Donaghey with SunTrust Robinson Humphrey. Please proceed with your question.

Chris Donaghey - SunTrust Robinson Humphrey

Hi good evening guys. Good quarter. Actually may be Charlie. First of all on the quarter itself, can you talk, tell us what the impact of the General Dynamics partnership was on gross revenue and gross profit?

Charlie Mathis

Well the General Dynamics in the fourth quarter as you know was related mainly to the MRAP program and this is certainly decreasing. I think there was a number of about 44 vehicles in the fourth quarter of '08. So it was not a significant impact on GD.

Chris Donaghey - SunTrust Robinson Humphrey

So would that be less than $20 million of revenue?

Charles Mathis

Yes, around that range there.

Chris Donaghey - SunTrust Robinson Humphrey

Okay. And just as we think about Buffalo going into next year obviously transitioned the ATV version impacting the fourth quarter. How should we think about the Buffalo rent next year? I know in the past you had mentioned getting to 10 to 15 Buffalos per month, do you anticipate hitting that number on a run rate basis, second quarter, third quarter, or fourth quarter of next year?

Michael Moody

That we said in 2009 or 2010. We see really getting to those numbers in the second quarter. There is a significant transition that's taking place as we talked about, but certainly we are seeing with the demands not only from the US army but we have significant interest from other customers. But that range we talked about before is really what we are seeing maybe to the higher end of that range on a monthly basis.

Chris Donaghey - SunTrust Robinson Humphrey

Okay, great. And then just kind of finishing up along those lines, that gives us pretty decent visibility into the Buffalo revenue stream for next year and obviously we are coming off a very strong support sustainment services revenue were for 2008. How should we be thinking about those the services revenue for 2009?

Michael Moody

Charlie, will obviously comment on that, but I think that Charlie had made the point that we do not really see that significantly different to 2008.

Charlie Mathis

Right, we are not seeing a decrease in the demand so far. As we mentioned there is a drawdown in activity in Iraq. It could affect us but currently we are not seeing a decrease in that activity.

 

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