Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from line of James Janaski of Stifel Nicolaus. Please proceed
James Janesky - Stifel Nicolaus & Company, Inc.
Hi Derrek and Steve. A couple of questions first, expectations for the first quarter Derrek, you would expect a 38% income tax benefit in the first quarter?
Derrek Gafford
That is right.
James Janesky - Stifel Nicolaus & Company, Inc.
Okay. And then, the June and September quarters obviously progressively get better historically. Would you expect that you could return to positive cash flow and positive earnings per share in the June and September quarters?
Derrek Gafford
Well, let me make a couple of comments on that. One, the comps do get easier as we get into the back half of the year and that was actually the case during the back half of 08 as well compared to 07. So assuming there is no additional contractions in the economy, but there certainly has been a pattern of that over the last four quarters, what would drive us to positive cash flow and some positive earnings is the seasonality perspective particularly that I mentioned related to third quarter where nearly 30% of our revenue for the year comes out of the third quarter.
So it is important to note when looking at the loss that we are forecasting for Q1 that it is our lowest revenue base for the year. There is less revenue to spread the fixed cost across.
James Janesky - Stifel Nicolaus & Company, Inc.
Okay. And when you gave the assumptions for 2009 in the 8-K, you have the reduction in SG&A from branch closures and incremental SG&A from 2008 acquisitions, that nets out to be about $15 million. I would imagine there are other costs, the cost cuts that you put in place means that SG&A in an absolute dollar basis will be down much more than that from 08 to 09. Is that a correct way to look at things here?
Derrek Gafford
I think so. I mean we have given you the broad brush strokes in the 2009 assumptions, that are going to get you most of the way there, meaning that we have said that related to branch closures that we did in 2008, there is $20 million of less SG&A that will be present in 09 for those 08 cost reductions from branch closures. There is another $5 million from acquisitions so now we are at a net $15 million reduction.
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