Question-and-Answer Session
(Operator Instructions) Your first question comes from Rick Nelson – Stephens Inc.
Rick Nelson – Stephens Inc.
Can you discuss the options that are available to you to deal with the near-term maturities? Any color you can provide would be helpful.
David P. Cosper
I see you didn’t take my comments to heart there. We are looking at every option available out there. We are working closely with our partner, having discussion with all of the concerned parties and we got the amendment approved in the near term and I felt good about that. But beyond that I really can’t provide anything. We put a lot of detail in our K and that’s really what I would have to have you take a look at.
But, frankly, we are looking at everything, and we’ll see.
Rick Nelson – Stephens Inc.
Question on the cost cuts, the $125.0 million that you discussed. Is that for the entire company or is that for—I realize you pushed a lot in disc ops, that includes some of those feelers, or is that a continuing operations number?
David P. Cosper
It’s total company wide. And we split that out into two pieces because some of those costs come out just naturally, with volume. And I’ve always thought that, what that piece is really not that complex to get, it’s just part of our business model. So we tried to structure that between what was more structural savings and ongoing. And that’s really the $75.0 million versus the $125.0 million.
Rick Nelson – Stephens Inc.
Can you provide us an estimate as to what would be in continuing operations?
David P. Cosper
I would guess 80%.
Rick Nelson – Stephens Inc.
In terms of the asset sales, I’m wondering what you’ve sold recently and what sort of multiples you are getting on dispositions and are you indeed seeing blue sky and what sort of dealers have you sold?
David P. Cosper
It’s been a little tough right now in the environment. And I kind of view it as our stock has been depressed with the debt overhang and that has the same impact on assets. I think the same things that are impacting our stock price impact that. And we sold 10 franchises in 2008 and I think that went extremely well.
There was a little bit of blue sky. We’ve got a couple of deals pending and I actually was pretty pleased with the blue-sky multiple on one of those. But I don’t want to get stuck into a distressed value kind of concept. Our intent is to de-lever over time and I think that over time when we show that we can make money in these dealerships—we are very valuable as a company.
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