Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Art Henderson with Jefferies & Company.
Arthur Henderson – Jefferies & Co.
Hi, good morning. Thanks for taking the question. Very nice quarter. John, first question for you. I know previously you had talked about an EBITDA – a fiscal ?08 EBITDA level of about $112 million to $117 million and a tax rate of roughly around 41.5%. Has that changed in any way, or we are still using those numbers?
John Potapchuk
Yeah, I would still use those numbers, Art, in the range of EBITDA, but on the tax rate, I think I may have indicated that we would see some decline in the rate in the second half of the year. And now I think we’re in a range more like 40.5%. Let us say between 40% and 41% for the full year.
Arthur Henderson – Jefferies & Co.
Okay. That’s helpful. And then a follow-up question, kind of a two-part question here. You guys have hired a lot more full-time equivalent caregivers this quarter. I was wondering if you could comment on the acceleration that we’re seeing there. And then, Ron, if you could give us your thoughts on the economy as it relates to the commercial payer portion of your business and what’s your – if you are seeing any unusual weaknesses or things that we should be thinking about with respect to that portion of your business. Thanks very much.
Tony Strange
Well, Art let me comment first of all on the –
Arthur Henderson – Jefferies & Co.
Hi, Tony.
Tony Strange
Good morning. On the recruitment efforts and the hires – and then I’ll let Ron answer the question you asked him directly. We are continuing to invest in our recruitment strategy. I think Ron has said on previous calls that at the end of the day, he who has the caregivers is going to win, because the demand is going to outstrip the supply. So we continue to put a lot of emphasis on building that caregiver pool, if you will. But at the same time, I mentioned in the call that we’re trying to hire these people on really more of a pay-per-visit structure as opposed to a salary, to still give us the flexibility to control our margins. So from that, I can’t say that 220 is going to be our new net number on a quarterly basis, but I was pleased this quarter that we not only hired the 220, but we were able to get them into orientation without totally harming our margins. So with that, Ron, do you want to answer?
- To read the full transcript on Seeking Alpha, click here »
