Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Edward Einboden - William Smith Securities.
Edward Einboden - William Smith Securities
Can you guys talk about a little bit on the promotion side what percent just back of the envelope was delayed versus canceled and what kind of outlook you guys are working in to your numbers?
Matthew C. Diamond
Maybe a more direct way to look at it is there is approximately $5 million or so in programs or projects that were slated for the fourth quarter that were very direct that are not going to be in the fourth quarter. They were either verbal; some are contracts and some were moved but they were definitely ones in which frankly in a normal economic environment would have gone as planned.
That’s the stuff that’s been shifted. Of that I think our caution for 2009 is even those that are moved into 2009, I think it’s safe to say we don’t want to feel that there’s any certainty until either there’s a signed contract or you start to execute a program. So even the portions that are in 2009 I would say we’re still treating pretty cautiously in the promotion segment.
Edward Einboden - William Smith Securities
So you guys are just kind of assuming the $5 million is a loss even though you really don’t believe all of that would be?
Matthew C. Diamond
Yes. It’s not as if you lost the clients. These aren’t clients that have told us they don’t want to work with us. They’re clients that have said that things are on hold. We do work with some of the automotive companies; we do work with some other sectors that have been hit; and they’re going to hold their spending until things stabilize. Fortunately it’s not a huge portion of our business and we can address it by cutting costs quickly and not anticipating it. But as we start 2009 our approach is if it’s not contracted for, we’re not going to assume it’s coming and we’re going to staff appropriately.
Edward Einboden - William Smith Securities
Can you talk about, you kind of addressed that really quickly, but any contracts or relationships that you might have lost or gained in the quarter? We don’t have good visibility in that. Or maybe companies that are no longer around that you guys previously had?
Matthew C. Diamond
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