Question-and-Answer Session
Operator
(Operator Instructions) Your first call comes from Will Hamilton – SMH Capital]
Will Hamilton – SMH Capital
I was wondering if you could elaborate a little bit more on the thinking to slow the company development. If we go back three months ago the company was certainly very optimistic about taking advantage of this current downturn to roll out this new prototype and take advantage of some of the better pricing you were seeing for real estate and leases. I understand the idea of being conservative, allocating capital but to open just one to two and not utilize the credit facility that you have available, I was wondering if you could touch on that a little bit more.
Christopher Pappas
With the current situation, we believe that and just looking at everybody else in the marketplace as well, it's been pretty much an industry wide perspective that you need to go focus a little bit more back on your existing units and work to get those back in shape, get the same store sales up and get those generating the cash flow that they were generating before.
We just felt that the additional kick that we would get from the profit side would be better suited to working on our existing units and getting those performing well. So getting our cash flow back up is what we wanted to do and not get overly leveraged.
I don't think the best real estate prospects are even out there yet either. This thing is just coming down now. I think the developers are just starting to feel the impact of it. I don't think the time has been long enough to where the really good prices on real estate have surfaced yet. I think that hasn't occurred yet.
We will keep our eyes open to that as well. What we saw in the 80's, we saw some great deals to expand on during the '80's and at those times, we're positioned well I think to go forward.
Will Hamilton – SMH Capital
What might be the timing of these one to two openings? Are those pushed out to the second half?
Christopher Pappas
They'll be in the second half.
Will Hamilton – SMH Capital
You seem to indicate you're also slowing down the remodels or maybe nearing completion of that program as well. Can you break down the CapEx budget that you have in the 12 to 17. I think $6 million to $7 million is maintenance?
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