Steinway Musical Instruments, Inc. Q2 2008 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-08-05 18:19:13.0

Tags: Steinway Musical Instruments Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Arnie Ursaner with CJS Securities.

Arnold Ursaner - CJS Securities

Focusing a little bit on the New York piano plant, you mentioned you had six unplanned days that were shut and you had 16 days that it was shut in total?

Dana Messina

Right.

Arnold Ursaner - CJS Securities

I thought we were looking perhaps more than another week or two of complete closure of the facility during the quarter. Are you finding that you can do this on a more reduced production schedule rather than just shutting the plant?

Dana Messina

We’ve been handling it by really taking out extra days so the six extra days that we took out really is what reduces the rate..

Arnold Ursaner - CJS Securities

You mentioned in Q3 and 4 you intend to continue to have a reduced production schedule. You mentioned a lower daily rate but you normally have a one week closure in the summer. Are you planning to go beyond that one week closure at this point?

Dennis Hanson

It’s normally three weeks in the summer and right now we’ve not announced any other additional shut downs.

Arnold Ursaner - CJS Securities

Okay. I was a little unclear on your comment regarding the Elkhorn plant. This is not the one that had the lengthy strike, is it?

Dana Messina

No, that’s Elkhart. Elkhorn is in Wisconsin. It’s much smaller. We shut it down earlier this year and we’re now just going through the process of disposing the assets.

Arnold Ursaner - CJS Securities

I have a couple for Dennis if I can. Dennis, can you give us CapEx and D&A for the quarter and your comments or views on the balance of the year?

Dennis Hanson

CapEx, I think we mentioned, was $1.3 million for the quarter which is down a little bit and depreciation and amortization about $2.8 million for the quarter. We expect it to stay pretty much in line with historical numbers, Arnie.

Arnold Ursaner - CJS Securities

My final question if I can, I noticed you have a new category in your revenue components called online music sales. Can you tell us a little more about what it is and perhaps give us an idea of what we should expect in that going forward?

Dana Messina

It’s really a very small business that helps us generate traffic in our different music businesses. It’s called Arkiv Music, A-R-K-I-V, ArkivMusic.com if you want to visit the website and buy some music, but it’s a completely classical music focus seller of old classical recordings and it fits right into our customer base at Steinway. But it’s tiny. I think we did less than $1 million of revenue in the quarter.

 

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
Click Here