Allied Healthcare International, Inc. Q1 2008 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-02-04 09:38:28.0

Tags: Allied Healthcare International Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instruction). And the first question will come from Mr. Jeff Silber of BMO Capital Market. Please go ahead.

Jeff Silber

Thank you so much. I just had a few numbers questions. You mentioned in your remarks about gross margin being down year-over-year in the nursing home business, can you give a little bit more color there and that's something that we should expect going forward?

David Moffett

Yeah, we won quite a large contract about 12 months ago at slightly lower margin, which is a 12-month contract. It terminates round about March of this year. But I think there is pressure in that sector. So I don't see it increasing significantly Jeff. But I don't think it will decrease either. We just need to see, if this contract is renewed and what price pressures we have.

Jeff Silber

Okay, great. And then just a few more numbers questions, can you repeat what depreciation and amortization were in the quarter?

David Moffett

Yeah, sure Jeff. Depreciation costs $0.9 million and amortization 0.4.

Jeff Silber

Okay, great. And, then on the tax rate being down year-over-year, if we get a little bit more color why that was the case and what should we expect going forward?

David Moffett

Despite the lower tax in the UK, I think we were slightly over provided on previous year's tax and its release, which is probably accounted for about 1 to 1.5%.

Jeff Silber

So, we should keep the 26% rate going forward?

David Moffett

No, I think it goes to a little of 28, Jeff, round absolute number.

Jeff Silber

Okay, great. All right. I'll let somebody else jump in.

David Moffett

And we just had several quarters where we've have some unusual things coming up, but we're cleaning it up.

Jeff Silber

Okay. I appreciate it. Thanks.

David Moffett

Thank you.

Operator

The next question will come from Mr. Brian Butler of FBR. Please go ahead.

Brian Butler

Good morning. Good afternoon, I guess. Question on the SG&A outlook or what do you think the sustainable level might be based on kind of your experience in the past on service business clearly at a 27 kind of percent of revenue is on the high end? How low can you get it, what is the reasonable sustainable level and what kind of timeframe do you think that might take?

David Moffett

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
Click Here
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement