Question-and-Answer Session
Operator
Thank you. (Operator instructions) and your first question will come from the line of Ron Strauss from Pekin Singer; please proceed.
Ron Strauss – Pekin Singer
Hello Mike and Jeff. It turns out that the light at the end of the tunnel is not an on-coming train.
Mike Valentine
Yes, I know that.
Ron Strauss – Pekin Singer
I take my hat off to you guys for having gotten through this very difficult period in the last couple of years.
Mike Valentine
Thanks Ron.
Jeff Sanfilippo
Thank you.
Ron Strauss – Pekin Singer
Did I hear you say Mike that you had almost $21 million of non-recurring charges to the P&L last year?
Mike Valentine
Yes, that’s the three items that we sited Ron, restructuring the redundant costs, moving that extinguishing costs, add up to about that number.
Ron Strauss – Pekin Singer
So that’s about almost $2 a share by my calculations. Assuming here on ’09 recurring items here in fiscal ’09, will you be paying taxes at all in ’09 or is there a very substantial net operating loss carry forward that protects the cash flow?
Mike Valentine
Ron, we’re actually going to release the valuation allowance and the benefit that’s associated with that as we make profits. Probably shortly after the second quarter we’ll decide whether we’ll release the whole thing or not, but at this point in time I can’t tell you whether we’re going to end up with zero tax, left over benefit or expense.
Ron Strauss – Pekin Singer
So, you don’t know the magnitude of your net operating losses, is that what you're saying?
Mike Valentine
No, we know the magnitude of the operating loss, but we are not going to predict profitability for ’09 on this call.
Ron Strauss – Pekin Singer
I see. How big is that net operating loss to carry forward?
Mike Valentine
Approximately $4 million is the potential benefit.
Ron Strauss – Pekin Singer
And what do you expect your capital expenditures will be in ’09?
Mike Valentine
As you can imagine, we’re planning on reducing capital expenditures pretty dramatically and going to what we characterize more as maintenance CapEx, which kind of ranges between $6 million to $8 million.
Ron Strauss – Pekin Singer
And would you expect the depreciation to be somewhere around the magnitude of ’08?
Mike Valentine
It should be very close to the ’08 number.
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