Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from Darren Lehrich - Deutsche Bank.
Darren Lehrich - Deutsche Bank
Good morning. I do have a couple of questions here. The first relates to your guidance for 2008 and what you are saying with regard to Coram. Obviously you are a little bit upbeat about how you started off with the integration, so that’s great.
I am just trying to understand, the swing in terms of your original guidance that it would be dilutive to it being neutral, how much of that is operational related, and how much should we attribute to a lower interest rate environment; just trying to get a sense for how much the reduction in LIBOR has played into this as well? Thanks.
Chris Karkenny
That’s a great question there, Darren. On the first front, on the acquisition, the real change in that, is twofold; one, is the synergies and the integration, we’ve been able to spend a little bit more time validating some of the synergies and finalizing those; that’s the one piece; and then certainly the purchase price allocation which we were able to finalize as well, between those two points, and that enables us to bring it to a neutral for 2008.
Darren Lehrich - Deutsche Bank
Okay. And then, if I could just ask about the capital structure and your debt, can you just update us some on where you are with regard to how much of the credit facility has been swapped and at what LIBOR rate? Just trying to get a feel for your floating rate exposure, obviously with the current rate environment that helps you.
Chris Karkenny
On the credit facility, we have a credit facility which is LIBOR plus 100 for the outstanding revolvers is at that rate; in addition we have $25 million of that swapped.
Darren Lehrich - Deutsche Bank
Okay, that’s great. And then just two housekeeping items: one, your CapEx outlook for 2008 I hear what you have to say about spending moving a little higher just wanted to get a range for that, and then the Medicare part is from backing those rates, it was $3 million in the fourth quarter can you just confirm that please?
Chris Karkenny
The first part on the CapEx, CapEx will tick up a little bit for us as a company. If you look at the CapEx for the full year 2007 we came in at approximately 8%. I think what you will see is that tick up probably closer to 9% on a CapEx basis for the entire company.
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