Question-and-Answer Session
Operator
Thank you.(Operator instructions)
Your first question comes from the line of Michael Gallo with C.L. King, please proceed.
Michael Gallo – C.L. King & Associates, Inc.
Hi and good morning.
Melville Hope
Good morning Mike.
Michael Gallo – C.L. King & Associates, Inc.
Couple of questions, first I just wanted to hit on the non-recurring expenses that hit on the G&A line in the quarter; it looked like, I know you didn't break it out in your prepared remarks or in the press release, but it looked like it was about $900, 000, is that about right? The second part of that question is, how much more in additional non-recurring costs do you expect to incur in the back half and should we expect to see all those also embedded in the G&A line?
Melville Hope
I think in the second quarter the non-recurring fees would have been about $900,000. We've guided to non-recurring expenses for the full year at about $3.50 million. I think that in the back half of the year, not sure on that number right at the top of my head but its balanced about 50/50 between the front and the back half of the year.
Michael Gallo – C.L. King & Associates, Inc.
Okay. So just wanted to come back to clarify something you said about G&A being a little higher in the back half, I assume that you mean on a week for week basis. Obviously you have a 16 week quarter in the first quarter, so we certainly wouldn't expect any of the quarters to be higher than the G&A was in the first quarter. Is that fair?
Melville Hope
Mike we typically have some increase in the G&A spending during particularly for the fourth quarter because of the timing of our international franchise
Michael Gallo – C.L. King & Associates, Inc.
Oh sure
Melville Hope
?and year end fees. Think about, for example the audit fees and that sort of thing.
Michael Gallo – C.L. King & Associates, Inc.
I guess as we start to head into 2009, I mean roughly again $900, 000 a quarter, lets call it rough numbers of G&A that’s being spent on a non-recurring fashion, would you expect particularly given you started to see some progress on franchising units, I know its early, though we should actually potentially see G&A come down in ’09 versus ?08?
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