Question-and-Answer Session
Operator
Certainly. Thank you. (Operator Instructions) Our first question comes from line of Brandt Sakakeeny from Deutsche Bank. Please proceed with your question. Mr. Sakakeeny, your line is now open.
Adrian for Brandt Sakakeeny –Deutsche Bank Securities
Yes, it’s Adrian for Brandt Sakakeeny. You’ve mentioned some headwind expectations for ’08 and I was wondering if you could comment on what you’re seeing in hospital admissions, and what your expectations are for ’08?
Robert Adamson
We’ve seen hospital admissions being relatively flat over the last 4 or 5 years. We see 2008 trends being slightly worse then flat, probably some modest decrease in hospital admissions probably in the range of 1% to 2%. But we believe that this environment is significantly different than recession correction that the healthcare staffing industry went through in 2003. One of the benefits of having gone through a 4-year period of hospitals very carefully culling their your use of temporary healthcare staff is that there’s significantly less access usage to come back from as we go into the current economic headwinds in 2008.
Adrian for Brandt Sakakeeny –Deutsche Bank Securities
Great. That’s helpful. SG&A as a percent of revenues ticked up more than we were expecting both on a quarter/quarter and year/year basis and I’m just wondering if you could give us some guidelines about how to think about this going into ’08. Do you expect it to sort of stay at this level maybe the first half and then come down or is this more likely to start easing already in the first quarter.
Jeff Yesner
Adrian, it’s Jeff. The percent of revenue is due to the reduction in revenue that happened from the third quarter versus fourth quarter and the third quarter run rate percentage-wise is more appropriate.
Adrian for Brandt Sakakeeny –Deutsche Bank Securities
That’s helpful. Just one last question if I can. DSOs certainly have come down from the third quarter level, but I’m just wondering again going forward how rapidly we can expect to see that drop down to a more, I think like a 52 or 53 level that you had last year.
Jeff Yesner
Adrian, it’s our intention to be working on getting that down as quickly as possible. We’d like to have it down by the end of the fiscal year, if not sooner.
Adrian for Brandt Sakakeeny –Deutsche Bank Securities
Great. Thanks a lot.
Robert Adamson
Thank you.
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