Question-and-Answer Session
Operator
Thank you, ladies and gentlemen at this time we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star four if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Again, press star one if you would like to ask a question. One moment please while we poll for questions. Thank you, our first question comes from the line of Karen Short with Friedman, Billings, please proceed with your question.
Karen Short – Friedman, Billings, Ramsey & Co.
Hey everyone, congratulations, good quarter. Just wanted to ask you a couple questions on the expenses, the $1.3 million. Would it be fair to say that like half of that was Felpausch related?
Craig Sturken
Yes.
Karen Short – Friedman, Billings, Ramsey & Co.
Okay and so going into the first quarter of 09, also half kind of Felpausch related?
Craig Sturken
Well actually all of the remodels in the first quarter will be Felpausch.
Karen Short – Friedman, Billings, Ramsey & Co.
Okay, so probably [overlay].
Craig Sturken
Except for the Glen’s, I mean but, three of the four Felpausch.
Karen Short – Friedman, Billings, Ramsey & Co.
Okay, so probably same dollar amount? 1.3-ish? Is that a fair number?
Dave Staples
Yeah I mean that’s an average, that’s reasonable. Then what you’ll get to some degree is you know these ones we’ve just done, we expect to keep improving their performance every quarter so as we begin to build up this pipeline over time, you’re going to have new ones coming in to a quarter but you should have previous ones maturing. You know over time I think you’ll see that kind of rate mitigated.
Karen Short – Friedman, Billings, Ramsey & Co.
Okay.
Dave Staples
First quarter, you know, it’s a fair estimation.
Karen Short – Friedman, Billings, Ramsey & Co.
Okay and then I guess if I were to back out that $1.3 million out of your operating or add it back to your operating income in the third quarter, it still looks like margins declined year over year, I just wondered if you could comment on that? [Audio interrupt] got more promotional or?
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