Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Charlie Strauzer – CJS Securities.
Charlie Strauzer – CJS Securities
In the quarter you had about $2.8 million of other non-cash charges on the free cash flow statement that I typically add back to my EBITDA number. So are you expecting any of those similar types of charges in Q2?
Mark Hiltwein
There may be. The majority of that is we took some allowance for some bad debt just based on the environment. We’ve got some inventory obsolescence that we took there so I mean just based on the general environment, there may be some additional charges but that’s really what makes up the majority of those. But nothing significant.
Charlie Strauzer – CJS Securities
And you don’t add that back into your EBITDA calculations though?
Mark Hiltwein
No we don’t.
Charlie Strauzer – CJS Securities
When you look at the ramp of the year of the EBITDA and maybe it’s best to kind of help us out a little bit with the seasonality of the various business you’ve bought because I think with some of those newer to the story in the investment community, maybe it’ll help them understand better that when you have plants that are less utilized because of seasonality, you’ve got costs associated with them that can’t come out that obviously pay off dividends later in the year when they do have better utilization.
Maybe give us a better sense of the seasonality of some of those businesses and help us with some of the confidence you have in the ramp of your EBITDA margins as the year progresses.
Robert G. Burton Sr.
You know if you looked at all the, take ColorGraphics for example, if you looked at the ColorGraphics competitors, most of those competitors in the first and second quarter would probably either be losing money or be very close to breakeven because they make all their money in the third and fourth quarter.
We had the same situation in ColorGraphics, the majority of our revenues and profit will be the back half of the year because that’s just the nature of the business and sure we do some annual reports and some car books but the really, the big business in ColorGraphics and the envelope segment will really show up in the back two quarters of the year.
And you know you look at that and I’ve looked at all of our businesses and how they ramp up for the back half and you could listen to other printing companies and they will tell you the same story that as you move to the holiday season for December, so you’re talking about October, November and the third and really the first part of the fourth quarter, you see more volume there.
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