Eddie Bauer F3Q07 (Qtr End 9/29/07) Earnings Call Transcript

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2007-11-13 16:34:50.0

Tags: Eddie Bauer

Question-and-Answer Session

Operator

(Operator Instructions) We’ll take our first question from Andrew Berg of Post Advisory Group.

Andrew Berg - Post Advisory Group

Can we go back into the SG&A number? There’s the $8.7 million increase -- I just want to walk through that again and go through which of those would be considered more typical ongoing versus obviously some of them, the building costs, the executive sign-on, are clearly one-time items.

David Taylor

There’s a number of items in there that we would consider transitional or non-recurring items -- things like the executive sign-on, some of the other recruitment costs and professional services associated with recruiting, the move costs, and the double rent that we incurred during that move period.

I would characterize roughly half of that $8.7 million as these transitional type items and the other part, including increased advertising and other increased wages and payrolls would be the rest.

Andrew Berg - Post Advisory Group

Okay, and so I guess the way to think about that, where you show the EBITDA excluding certain non-recurring as 15.2, I need to adjust that a little bit for the additional four and change.

David Taylor

Yeah.

Andrew Berg - Post Advisory Group

Okay. Can you tell me what your revolver balance -- or what was available in the revolver at the end of the quarter?

David Taylor

Yeah, I’ll tell you in just a second. Let me -- we had $54.6 million drawn under that revolving credit facility as of September 29.

Andrew Berg - Post Advisory Group

Okay, and are there any other LCs that offset the amount that would be available?

David Taylor

Yeah, there is roughly $13 million of other LCs outstanding as of that date.

Andrew Berg - Post Advisory Group

Okay. Thank you.

Operator

We’ll take our next question from Nicholas Capuano of Imperial Capital.

Nicholas Capuano - Imperial Capital

Good afternoon. A question on the expenses, just to get a sense of a level set going into next year in your goals, even taking aside the one-time charges you had this year. I mean, this was clearly an unusual year. As you go into next year, from an SG&A standpoint, do you see -- what do you see as kind of a normalized level? I mean, when you talk about your $25 million to $30 million in savings, and I know some of it will come in the gross margin or the COGS relative to sourcing, but how do you see -- do you see that your entering 2008 on a normal level? Is that what your savings goals are based on? Can you just give us some clarity on what your expenses trends should be?

 

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