Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Romeo Reyes - Jefferies
Romeo Reyes - Jefferies
I’m trying to normalize your EBITDA numbers. Looking at the real estate restructuring charges that you mentioned in our 10-K plus the higher corporate allocation and the FX impact on working capital, can you give me a sense of what those three different pieces were? Historically we’ve talked about the Camelot revenue being somewhat lower margin then the rest of the company, we’re talking about around the 50% or are we looking at around £2.7 million of sequential drop in EBITDA relative to Q4?
John Kritzmacher
First with regard to the variances around OpEx, a couple pieces, in the year ago period the rebate related to real estate was a little over £1 million. With respect to the annual adjustment on worldwide allocations that was an adjustment in the period of about £3 million and it’s an impact both relative to the third quarter and relative to the year over year period of about £3 million as well. Then in the case of the foreign exchange impact on working capital that was approximately £2 million.
Romeo Reyes - Jefferies
Does the FX impact on working capital, where do we see that on the P&L? Is that below the line or above the line, it seems to me that it would be below the line.
John Kritzmacher
It shows up in the IFRS P&L format it shows above the line and the IFRS impact.
Romeo Reyes - Jefferies
But in US GAAP it would be below the line correct?
John Kritzmacher
That is correct.
Romeo Reyes - Jefferies
CapEx was down I guess quite a bit year on year for this segment, are we looking at a similar number for 2009?
John Kritzmacher
With respect to CapEx I would expect to see CapEx in 2009 to be down slightly to flat, approximately on that trend. I think I did not answer your question with regard to Camelot. As we’ve said in the past in terms of the roll of impact of Camelot going into Q1 you should think of that as having a margin rate that’s slightly below the average for the business overall, but a substantial margin I think we talked about that before.
Romeo Reyes - Jefferies
Was there any IRU cash on the fourth quarter for GCUK?
John Kritzmacher
No material amount.
- To read the full transcript on Seeking Alpha, click here »
