Question-and-Answer Session
Operator
(Operator Instructions) Your first question will come from the line of Michael Gallo representing CL King, please proceed.
Michael Gallo – C.L. King & Associates, Inc.
A couple of questions, first kind of a multiple part question on the divestiture of the company stores, one I guess do you plan to keep any companies? Do you plan to go 100%? Do you plan on keeping a nominal number five or 10 or a particular market? Are you planning on selling them as whole markets or as individual units? And, is the $0.08 to $0.14 number that you gave, is that what you expect to realize as a gain or is that what you’d expect to realize as an ongoing savings number?
H. Melville Hope, III
The $0.14 or the range that I gave was for what we would expect to realize in gains on the sale of all of the company restaurants. Our plan now is to market them as markets and might be also our expectation would be that we’re going to market every store that we own presently.
Michael Gallo – C.L. King & Associates, Inc.
Okay. So, the plan is to go fully 100% franchise?
Cheryl A. Bachelder
Yes it is Mike.
Michael Gallo – C.L. King & Associates, Inc.
Perfect. The second question I have is I guess as we look at the G&A I think I heard you say that you expect $5 million of G&A reduction once you get to 100% franchise, did I hear that right?
Cheryl A. Bachelder
$4 to $5 million.
Michael Gallo – C.L. King & Associates, Inc.
Okay. Do you have a cap ex number at this point Mel for 2008?
H. Melville Hope, III
We don’t typically guide to that. Our cap ex last year – are you talking about maintenance cap ex or total exposure?
Michael Gallo – C.L. King & Associates, Inc.
Well, I guess based on the plan I wouldn’t expect that you’d be building any company units?
H. Melville Hope, III
Right. We’ll complete the projects that we entered the year underway which was really just one store and so we’d have a much more diminished cap ex expenditure for the year.
Michael Gallo – C.L. King & Associates, Inc.
Okay. Then just final question and then I’ll head the floor, the 27.2 million shares, that was before the ASR, correct?
H. Melville Hope, III
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