Question-and-Answer Session
Operator
Thank you, sir. We will now begin the question and answer session. (Operator Instructions.) Our first question is from Shelley Gnall from Goldman Sachs. Please go ahead.
Shelley Gnall - Goldman Sachs
Thanks, for taking my questions. First of all, I guess on the customer retention rate, I think, Andrea, you had said it was 91% at the quarter. Could you remind us what it was at the end of last quarter?
Andrea Clegg
The number I quoted, Shelley, 91%, is a volume retention number year-over-year.
Shelley Gnall - Goldman Sachs
Okay.
Andrea Clegg
It's just an interesting tidbit, that year-over-year. From fourth quarter, our volume retention was closer to 97%. The customer retention, I don't even calculate that right now, Shelley.
Shelley Gnall - Goldman Sachs
Okay. That's fine.
Andrea Clegg
We're really looking at volumes.
Shelley Gnall - Goldman Sachs
I just wanted to make sure that's comparable to the guidance, the volume retention of 95%.
Andrea Clegg
Oh, that's an annual volume retention assumption built into the guidance. Like I said, the quarter-over-quarter was 91%, and movement from fourth quarter was 97%. So, I think 95% is a prudent assumption for guidance.
Shelley Gnall - Goldman Sachs
So, you're hoping to slow down the volume loss. So, you're hoping to improve retention through the rest of the year.
Paul Berger
Correct.
Shelley Gnall - Goldman Sachs
Okay, great. And then, I guess on the tender offer, why a Dutch tender instead of a traditional share repurchase?
Paul Berger
A major reason is that it's more efficient when you buy back shares under a tender as opposed to an open purchase. We'd like to accomplish this in a relatively short timeframe, and this is easily the best and most efficient way to do that. Another point, which is a smaller point, is that investors can sell without paying any kind of commissions as well.
Shelley Gnall - Goldman Sachs
Okay, great. And then, on the interest expense, it came in higher than our expectations. Can you talk a little bit about what you saw in interest expense this quarter?
Andrea Clegg
Sure, Shelley. And this is a point for many folks who model our business. Our interest on our $100 million debt facility, if we swapped and locked in an effective rate of 7.4% for about a two-year period, on top of that we incur a small amount, we have some amortized closing costs that we have. So, our fourth quarter interest expense is what it will be every quarter for the rest of this year. It is fixed.
- To read the full transcript on Seeking Alpha, click here »
