Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Gallo – C.L. King & Associates, Inc.
Michael Gallo – C.L. King & Associates, Inc.
As you look at the trends to date in the third quarter, I guess you were at $11.9 million of adjusted income before taxes due to first half. Your strongest seasonal quarter is still ahead of you here in Q3 so it would seem like unless there is a major trend change that you should be setting up to probably do better than the prior guidance. Is there anything that you’ve seen in terms of change in trend to date in the third quarter that makes you a little more cautious towards the back half or is it just the general uncertainty of the consumer environment given that? obviously the comparisons you have in the second half certainly are a lot easier than the first set.
F. Mark Wolfinger
As far as the seasonality, obviously in the second quarter we did capture what all called the first month of the summer depending on where you are in the country and so that’s already in the second quarter. We talked about our guidance and obviously from an adjusted income standpoint we’re moving that guidance towards the higher end of the range. I think those are the comments that I made. I think what you’re hearing from us is just a level of conservatism as we go into the second half of this year and as things can change. I know one of the things that concern management here clearly is looking at GDP in the second quarter which again was a negative number. I think from a consecutive quarter standpoint that was the highest number of consecutive, that was four consecutive negative quarters for GDP which I think was a record since 1947 if I recall. I think the second piece is just looking at some of the consumer confidence numbers that have come out most recently that clearly are concerning sort of what I would term a mixed message. I haven’t specifically answered your question from a math standpoint but I think what I wanted to sort of introduce is the tone in which we approached our comment on guidance.
Michael Gallo – C.L. King & Associates, Inc.
I think you did answer the question with what sounded like a no in terms of was there any real material change in trends that gives you pause other than just the general consumer environment and I think it sounds like it’s just a conservatism on the tone. Is that a fair way of --
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