Question-and-Answer Session
Operator
Your first question comes from Steve Chercover – D. A. Davidson & Co.
Steve Chercover – D. A. Davidson & Co.
My first question did the impairments that you took in the quarter include much in the way of severance and if so how much will you save on the run rate going forward?
William Currie
Of the $6.2 million charge $5.6 million was asset impairment $600,000 was severance. In terms of savings going forward I’d say about $1 million to $1.5 million a month.
Steve Chercover – D. A. Davidson & Co.
$1 million to $1.5 million per month?
William Currie
Correct.
Steve Chercover – D. A. Davidson & Co.
And can you discuss trends in October as compared to September or third quarter?
William Currie
It’s pretty early to say, Steve, just too soon to -- Steve, I think it’s the one thing we can tell you is that we are holding from a sales standpoint but the encouraging thing is that about six weeks ago, we really, really put a push on margins. And we are seeing in the last three weeks that our margins have moved up to a level that is starting to become acceptable.
Steve Chercover – D. A. Davidson & Co.
And you said you’re establishing your first ever facility in Seattle did I understand that correctly?
William G. Currie
Well what we said was there are some markets where we know we need to go, one we believe is Seattle and another one is in the Plain States. We haven’t broke ground we’re starting to do some research.
Steve Chercover – D.A. Davidson & Co.
And final question, you indicated that you had the balance sheet, and we always know that you have the desire to grow. Is it best at this stage to go green field or, I mean, certainly I can’t imagine being aggressively picking off competitors, but maybe just having the presence there and picking at the carcasses or, you know, having customers come to you when their pre-existing suppliers go away. How do you think of it?
William Currie
Steve, there will be a time to do exactly what you said, to pick at the carcasses, but we’re not there yet. This is, there’s going to be some opportunities over the, you know, over the next year or two, to make substantial moves with people that are in serious financial trouble. We’ve seen, well you’ve seen some of the big ones too, you follow them all. I mean they’re a mess and they haven’t watched their balance sheets and they’re not operating with positive cash flow. And they’re going to be very easy to acquire but the time isn’t right now, it’s too uncertain.
- To read the full transcript on Seeking Alpha, click here »
