Question-and-Answer Session
Operator
Thank you. The question and answer session will be conducted electronically. (Operator Instructions) We’ll pause for a moment to give everyone the opportunity to signal. We’ll take our first question from Steve Denault with Northland Securities.
Steve Denault - Northland Securities, Inc.
In regards to the firearms category, I mean, how bad was it in the quarter and what do you think is driving that?
Richard Vazquez
Steve, the firearms business has always been one of Gander Mountain’s friends and we’ve had quarter-over-quarter-over-quarter growth the last several years--continued growth in the firearms business and we continue to believe that we’re the largest firearm dealer now in the nation with the biggest services in gunsmithing and all that. The challenge I think in this particular season relates to discretionary purchases where, in many cases, we’re selling a number of units and, in some cases, there were some lower price point changes and, in some cases, we just didn’t get the transactions in the $1,000-$1,500 ranges where we had wanted them to be. Obviously, we rolled out the Gander Gunsmith Program, a certified program, and continue to have great success in signing up new customers and getting people to belong to Gander Gun Club. We’ve seen big followings being built on that. We were disappointed with firearms, but you can look also at optics and electronics and see the very similar kinds of shortfalls and sales.
Steve Denault - Northland Securities, Inc.
Okay. What interest rate should we assume for the term loan?
Robert J. Vold
Steve, there is some grid pricing based on the level of outstanding debt. I mean, it’s higher than our traditional pricing of $150. It’s in the $300+ range from an individual standpoint. That will be detailed more in the 8-K that will be filed in the next couple of days.
Steve Denault - Northland Securities, Inc.
Okay. What is the EBITDA level or the revenue level look for that in Overton’s business?
Robert J. Vold
Overton’s, this last fiscal year, last term 12 months, I mean, revenues were approximately $90.0 million. Our gross margin was 43.0% and EBITDA margin in the 8-9% range, pretax in the 3-4% range.
Steve Denault - Northland Securities, Inc.
Okay. That’s trailing 12 months as opposed to 2006?
Robert J. Vold
Correct.
Steve Denault - Northland Securities, Inc.
Okay. Any update on the ASB [scallop?] How’s that program coming along?
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