Question-and-Answer Session
Operator
(Operator Instructions) We’ll go first to Matt McCall with BB&T Capital Markets.
Analyst for Matthew S. McCall - BB&T Capital Markets
Good morning. This is actually Sean Connor for Matt. The main question we’ve got is trying to understand the SG&A line. In trying to compare this quarter basically to the last year period, and even really Q2 when you had Sam Moore and even a closer top line, I think the comment on the Q2 call was that that 10%-ish operating margin range was -- could be sustainable in a similar demand environment to an improving demand environment, and I’m comparing Q2 to this period. You’ve only got $2 million off the top line but the operating margin almost halved. Can you help us explain what the difference is in the SG&A picture in this quarter versus Q2, and even the year ago, excluding -- because Q2 already had Sam Moore involved?
E. Larry Ryder
Sean, I haven’t had a chance to compare this with Q2 of last year, so it’s a little bit difficult for me to answer this but I will say that in the first quarter this year, there were some one-time charges that did enter into SG&A, and I think it’s important to point out that it’s dangerous to start talking about one-time charges because it seems like there’s one-time charges all the time.
But in this particular case, we had some start-up costs in terms of photography and advertising, for example, for Opus. We had some costs that were incurred as a result of the start-up of our California warehouse operation that of course weren’t in there in either the first or second quarter of last year.
Because of the fact that if you’ll recall the first quarter a year ago, we had just come out of the transition period and as a result, some of the year-end costs, for example, auditing costs and that sort of thing in professional services, were incurred in the transition period where this year they are incurred in the first quarter following our year-end.
So there’s several things in there and those expenses are not small expenses that were incurred in this quarter that shouldn’t recur in second quarter this year, but do make a little bit of difference when comparing first quarter last year or second quarter last year with this year.
Analyst for Matthew S. McCall - BB&T Capital Markets
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