Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Keith Hughes - SunTrust Robinson Humphrey
Keith Hughes - SunTrust Robinson Humphrey
Couple of questions, one with the charge at Olive Branch what type of D&A and other non-cash items will you save as we go into next year as a result of that move.
James Cline
The reduction will be depreciation, it’s about $2.5 million. Until the facility is put for sale, the remaining savings won’t be realized. We’ll continue with all the cash related expenditures such as taxes, security, etc. for the near-term.
Keith Hughes - SunTrust Robinson Humphrey
What would be the total amount once the facility is sold or put up for sale that you would save.
James Cline
Between $4 and $5 million.
Keith Hughes - SunTrust Robinson Humphrey
On the, you spoke a little bit about the new product launch but also changes to the current product line, will we be seeing changes on all the current existing product line of Trex or is it just specific SKU’s where you’re looking to do things differently.
Ronald Kaplan
Essentially all the product lines will be changing their dimensions in one form or another.
Keith Hughes - SunTrust Robinson Humphrey
And does this revolve around aesthetics or performance characteristics, or—
Ronald Kaplan
It revolves around making our products easier for the contractors to install. It provides more design options because different boards from different lines can be mixed and matched. It also provides manufacturing efficiencies.
Keith Hughes - SunTrust Robinson Humphrey
Final question, you talk in the release business being pushed off a little bit into the fourth quarter is that going to change the seasonality at all, the early buy period, and that whole thing going into 2010.
Ronald Kaplan
No I don’t think it will effect the seasonality. Clearly people were drawing down inventories in anticipation of the new product design, the new product, and the design of the existing products. There have been a lot of jockeying going on but I think fundamentally the seasonality will remain in tact.
Operator
Your next question comes from the line of John Baugh - Stifel, Nicolaus
John Baugh - Stifel, Nicolaus
My first question was on the inventory charge, is that a specific product line, is it multiple product lines, was is goods that just weren’t selling because they weren’t popular, was it damaged, does it relate at all to the Nevada warranty claim, any more color there.
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