Question-and-Answer Session
Operator
(Operator Instructions) We’ll go first to John Diffendal with BB&T Capital Markets.
John Diffendal – BB&T Capital Markets
Yes. Good morning. A couple of things. You mentioned competitive pricing pressures in the quarter. Just a little color on that. Is it something that is ratcheted to a different level or what’s going on there?
Larry H. Keenar
John wholesale prices are probably under the most pressure. I’ve been in the business 35 years, there probably under the most price pressure I have seen. As you would expect with us being at a historical low in shipments.
John Diffendal – BB&T Capital Markets
And was there something within the last like three months or so, has there been a difference from what it has been or just been more of a consistency there? I am trying to understand.
Larry H. Keenar
It’s just the continuation of a trend that has been going on for some time. But as you know the October, November, December shipments numbers were not any where near where any of us expected them and I think there’re an awful lot of manufactured housing facilities that are at or near the cut line and that puts a lot of pressure on pricing and to generate some production.
John Diffendal – BB&T Capital Markets
And you mentioned an expense with CountryPlace. Give us a little more understanding of that. You said that there was a payment made, I didn’t actually catch the exact number again I apologize.
Kelly Tacke
John we had a contractual obligation to CountryPlace management based on profit live to date.
John Diffendal – BB&T Capital Markets
Okay and how much was that again?
Kelly Tacke
$1.5 million.
John Diffendal – BB&T Capital Markets
$1.5 million, okay.
Kelly Tacke
And that’s the sole reason for the increase in SG&A.
Operator
And we’ll go next to Kathryn Thompson with Avondale Partners.
Kathryn Thompson – Avondale Partners
You’ve indicated that you’re lowering your breakeven by $100 million but given it’s been a couple of years at least since you’ve posted a consistent profit what is that target to breakeven?
Larry H. Keenar
We will be lowering it from approximately $158 million a quarter in revenues to about $130 million per quarter in revenues.
Kathryn Thompson – Avondale Partners
Okay great and I didn’t catch your capacity utilization at the end of the quarter and if you could give a current update on that too?
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