Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Ashwin Shirvaikar.
Ashwin Shirvaikar - Citigroup
My first question is actually about the sustainability of the lower cost structure as revenues eventually come back. So to what extent would you expect costs to go back up with revenues in an eventual recovery? If you could take us through the math or the thought process and maybe some examples of what kind of cost you are taking out?
William C. Gale
Okay. Well, I guess let’s assume that there’s no significant change in cost components like energy but assuming that, what you will see initially is as we add -- as our customers add back employees, we will begin to see the marginal profitability of that additional revenue to improve margins going forward.
Now once you -- your top line growth that’s caused by new business continues to go up, you are going to start injecting more garments but we believe that the margins for the business segments will actually improve in an improving economic environment.
Ashwin Shirvaikar - Citigroup
Would you expect the profitability of the rental segment to get back down to the 16%, or possibly higher level in the next couple of years?
William C. Gale
We would -- assuming again the basis that I said on energy costs, as an example, we absolutely believe we can get our margins back to more historical levels.
Michael L. Thompson
A side note on that as well, Ashwin, is that with the restructure project, we were very careful that we were not taking all our capacity out of markets. We want to ensure that we have the ability to grow when the market does turn around.
Ashwin Shirvaikar - Citigroup
Okay, and a couple of housekeeping questions -- one is, could you provide the split for the inventory adjustment charge between all the various segments?
William C. Gale
Mike can give you that again.
Michael L. Thompson
The piece -- it was $27.5 million was the total inventory valuation charge. Of that, $8.4 million was in the cost of rentals and 19.1 is cost of other services. Of the 19.1 in cost of other services, 16.1 is in uniform direct sale and $3 million is first aid safety and fire.
Ashwin Shirvaikar - Citigroup
And with regard to document management, the impact of paper prices obviously is there. You’ve said in the past that you had a contract that went through the end of the fiscal year for paper price sales, for paper sales. What’s the status of the renegotiation? What kind of pricing are you getting as you go forward?
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