Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Matt Difrisco - Oppenheimer & Co.
Matthew Difrisco - Oppenheimer & Co.
I guess just looking ahead on a little bit of guidance to kind of figure out how 2009 might look, was there anything you need to meet, commissary sales or manufacturing sales in the fourth quarter that might come back into the first quarter or with respect to that 91% cost of good sold, it looks like it was a little stronger than I guess you had in the past.
Richard P. Dutkiewicz
Yes, Matt this is Rick. Frankly, the commissary operations couple of things happened in the course of the year. We made some product changes at some of the commissary and actually got out of some business that we had done on a third-party basis and the store standpoint and in addition, we believe we have a really good team that is now managing both our manufacturing and commissary operations. They are very focused. They are focused on profitability and I think the final pieces that we are able to take some pricing in 2008 that also restored us to a profit standpoint.
Matthew Difrisco - Oppenheimer & Co.
Okay so that will be a profit centered then going forward and something that grows with the growth of the franchise network?
Richard P. Dutkiewicz
It absolutely grows with the franchise network and we think we got that shifts studied in. It has been generating nice profits.
Matthew Difrisco - Oppenheimer & Co.
Okay. I always thought about of something maybe close to running to zero given you are making a royalty rate as well but I guess it is okay to take a little price there.
Richard P. Dutkiewicz
Yes, it is.
Matthew Difrisco - Oppenheimer & Co.
Okay and then you said 2.75 is the debt ratio and you are at 2.2 right now.
Richard P. Dutkiewicz
That is correct.
Matthew Difrisco - Oppenheimer & Co.
The $7.3 million that you had to pay that is already taken out of the $24 million?
Richard P. Dutkiewicz
No, that is not. That was subsequent to yearend, Matt.
Matthew Difrisco - Oppenheimer & Co.
Okay, so you have $17 million in cash and $13 million in the credit facility level?
Richard P. Dutkiewicz
Well, adjusted for that date and time, that is correct. That is what the numbers were.
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