Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And we’ll take our first question from Larry Miller with RBC Capital Markets.
Larry Miller - RBC Capital Markets
Hey guys can you hear me?
Doug Schmick
Yes.
Larry Miller - RBC Capital Markets
I guess I am just trying to reconcile your fourth quarter guidance, it sounds like sales might have bounced back into that range of 1% to 2% which is historically where you guys have been able to manage through it several times yet pretty significant margin compression, can you help me understand what you are seeing and we are not?
Manny Hilario
Larry this is Manny. A couple of things about reconcile and that we were changing our guidance probably for 2 to 3 to 1 to 2 in the quarter which probably changes the earnings for that quarter by about $0.03 to $0.04 and we are also doing incremental marketing in national vehicles in the fourth quarter that's going to be about $0.02 earnings in the quarter and than we are also the pre-opening expenses have increased on a pro-rational basis. So that’s another penny, so trying to reconcile back to our previous guidance that's kind of what I would consider the direct selling items.
Larry Miller - RBC Capital Markets
Okay. So would that mean you need greater than 2%, 3% to hit kind of margin neutrality in go forward terms in '08?
Manny Hilario
Yeah. Probably about 2% plus.
Larry Miller - RBC Capital Markets
2% plus, okay. And then can you kind of talk about $150 million on credit facility. I don't recall that you were planning on buying that in the past and so when might you enter the market if you feel that it's obviously after this encloses?
Manny Hilario
Well. Obviously that requires a board resolution to do any kind of transaction like that, but more importantly I think the $150 million facility will give us some much more flexibility in terms of looking optimistic acquisitions and so forth out there but we certainly are looking for having that flexibility with us.
Doug Schmick
Larry, this is Doug. I will say that having done this with 35 years and have seen the economic cycles with those challenges often times there is an offset with opportunities. So we just want to make sure that we've got the flexibility to proceed with that and we are very pleased with Banc of America is about the confidence and enthusiasm to get behind us.
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