Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of David Wells - Avondale Partners
David Wells - Avondale Partners
In terms of the tax benefit in the quarter just wondered if you could provide some additional color on that and how we should think about that going forward?
Marty Daley
The tax benefit in this quarter in particular was a little bit different from the other quarters in that a portion of the goodwill, the largest portion of the goodwill write-down that we had did not have an associated tax benefit with that. So that’s why, typically that benefit had been around 36% and this quarter it was not that because there was no tax benefit from the largest portion of the write-down on goodwill.
Going forward then that benefit should run around that 37% or something like that or when you flip to profitability it would be in the expense side of that 37% range.
David Wells - Avondale Partners
Going to the $175 million break-even point level, what would that look like from a capacity utilization standpoint if you were at that run rate from a top line perspective?
Marty Daley
I think we would be in the 60 plus utilization rate mode.
David Wells - Avondale Partners
Just to go back to the estimated cost saves from the plant closure, could you run through those that would be great.
Marty Daley
We talked the indirect side of things that would be about $5 million to $7 million and then SG&A side of things to be between $3 million and $4 million and those are both on a quarterly basis.
David Wells - Avondale Partners
Do you have a goal in terms of where you’d like to see your finished goods inventory reached by the end of the fiscal year?
Marty Daley
Reality is we would like to get it as close to zero as we possibly can. I think likely there will be some level that is still there but if its around $5 million to $10 million, that’s a pretty good target for us to get down to.
David Wells - Avondale Partners
The reduction in work in process inventory was that tied mainly to the plant closure or was there something else driving that?
Marty Daley
No that is related to the plant closure and in fact that will increase slightly from third quarter number because we hadn’t fully filled out the work in process in Oregon at that point in time but there won’t be a lot of movement on that and it will be offset by the decreases in finished goods and then also material inventories have room to come down further as well.
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