Question-and-Answer Session
Operator
Yes, thank you very much. [Operator Instructions] Our first question today comes from Karen Howland with Barclays.
Karen Howland – Barclays
Just a housekeeping did you get CapEx guidance for the first quarter and for fiscal year ’09?
Alec C. Covington
I didn’t and I don’t have that number right off the top of my head I know we do you know Bob, are do we need to get back to it.
Robert B. Dimond
I have got the number. We had originally targeted right off between $55 million and $60 million for the year.
Karen Howland – Barclays
Year?
Robert B. Dimond
Right. For the quarter, we really don’t have that broken down for you, but for the year 55 to 60 and then as Alec mentioned we have yearmark some reductions from that, they are probably for $8 million or $10 million after that right.
Karen Howland – Barclays
Okay thank you. So?
Robert B. Dimond
We can – we can.
Karen Howland – Barclays
More than $45 million to $50 million range?
Alec C. Covington
Yes.
Robert B. Dimond
Correct.
Karen Howland – Barclays
Okay. And then I know you didn’t, you talked a little bit about under the acquisition had lower margins than the current military, just as far as I turn to help us model it out. Can you comment, are we talking, 1% EBITDA margin, is it higher than that and where do you think the opportunity can get up to the level of the Military and Military margin in that 3.5 to 4% area?
Robert B. Dimond
Well, I would say this and Bob may have some comments on that as well. It will, we were attracted the GSC because we believe that the business was, it could potentially perform much better than it was performing. So that’s on one end of the scale. On the other end of the scale is MDV, setting there at 4% or where were they are right now I don’t have the number right front me 5% to 4. we will never get the 4% and the reason is because on average MDV travels about, 200 to 250 miles to make deliveries and do you see travels today roughly three times that much we think we can reduce that quite a bit over the next year or so, because they go much further to reach the destination basis, then we do at MDV just simply because of the geography, they are going to the basis in - New Mexico and obviously we know Texas is not small state, so you’ve got enormous travel there. So, we believe that it can be dramatically improved and I guess what we stated in the past is that today, GSC is on the low end of that range, we’ve never given as specific range there. Obviously, you see MDV on the high end, we believe we’ll move it more towards the metal, but the one thing that we are certain of is that with the way that we acquired GSC we are very comfortable that we can deliver at least to 13% internal rate return on the investments that we’ve made $80 million or so in that business.
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