Earnings Call Excerpt
Pal Harbor Homes, Inc. (PHHM)
F4Q08 Earnings Call
May 21, 2008 10:00 am ET
Executives
Larry Keener – Chairman, President, Chief Executive Officer
Kelly Tacke – Executive Vice President, Chief Financial Officer, Secretary
Greg Aplin – CountryPlace Mortgage
Lyle Zeller – Executive Vice President, CountryPlace Mortgage
Analysts
Kathryn Thompson – Avondale Partners LLC
John Diffendal – BB&T Capital Markets
Michael Corelli - Barry Vogel & Assoc.
James McCanless – FTN Midwest Securities Corp.
Brian Freckmann - Crown Capital
Presentation
Operator
Good day everyone and welcome to the Palm Harbor Homes, Inc. fourth quarter fiscal 2008 conference call. Today’s call is being recorded.
At this time for opening remarks and introductions I would like to turn the call over to the Chairman and Chief Executive Officer, Mr. Larry Keener.
Larry Keener
Thank you. Good morning everyone. I have with me here this morning Kelly Tacke our Executive Vice President and CFO, Greg Aplin, President of CountryPlace Mortgage and Lyle Zeller, Executive Vice President of CountryPlace Mortgage.
Before we begin our discussion today our lawyers have reminded me to remind you that all comments made today are made within the context of the Safe Harbor rules, that past performance is no guarantee of future results and that any comments made about a bright future may not materialize.
The results for the fourth quarter and for the year were essentially as we expected and as indicated to you during our last call in January. In our January call we announced we would be closing three factories and 18 retail stores in the fourth quarter. We expected to take between $8-10 million one-time charge of which approximately $1 million would be in cash. We stated that we expected approximately a $20 million annual savings going forward which would largely be reflected in reduced SG&A expense. We are pleased to report today that the planned restructuring was completed on budget and ahead of schedule.
We are now in the process of consolidating the planned improvements from fourth quarter’s restructuring and believe we are on schedule to be operating at a break-even level of $130 million in quarterly revenues by the start of our second quarter.
Now on to the specifics of the quarter and the year.
Revenues for the fourth quarter were $126.5 million, down 7% from last year driven by a 5% drop in unit sales and a 2% drop in our average sales price during the quarter. For the year, revenues declined from $661.2 million to $555.1 million, a decrease of 16% driven by a 19% decline in unit sales which was partially offset by a 4% increase in average sales price for the year.
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