Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) Our first question comes from the line of Richard Close with Jefferies. Please go ahead.
Richard Close – Jefferies
Yes, congratulations. With respect to the $800,000, I guess, or the $0.01 from the prior period, can you go into that one-time expense again, exactly what that is and why you took that in the quarter?
Bob Colletti
Yes. This is Bob. We’ve performed our comprehensive view of all of our major third-party relationships and from an analysis of the balance sheet; and as part of that analysis, we determined that there was some stuff that needed to be expensed in the period that related to prior periods. So we went through a very drill-down type of process. And really it’s kind of tied to the whole upgrading, the whole finance function that was done in the last six to eight months as part of the move to Atlanta and as just part of a normal process. So, non-recurring type of charge and we feel in real good shape as we go forward.
Richard Close – Jefferies
Okay. Should we expect more of those going forward?
Bob Colletti
No, I think we have done an extremely comprehensive view of the balance sheet. We feel real good about the balance sheet, the individual components and as a whole.
Richard Close – Jefferies
Okay. In the second quarter, I guess you paid higher commissions and look at that as a positive forward indicator. The sales and marketing doesn’t seem like you had a higher commission rate in the quarter. Should we view that as it wasn’t a great selling quarter?
Bob Colletti
No, Rich, I think we had a solid selling quarter. It’s really a lot of – tied to the mix of different things that we sold. So, no particular indicator about the forward-looking nature of that at this point. The other thing, the second quarter had some major events that are no recurring. So we had our executive forum that happened in Q2 that didn’t repeat, quite an expensive marketing event. So it’s a combination of those things. But no, it was a good solid sales quarter.
Jay Deady
Yes. This is Jay, and if I add some color to that, that obviously the larger the transactions and the more being sold by single individuals, the way the compensation plans have created, the commission expense will be higher than having a larger volume of transactions being sold by a larger volume of individuals where we have good solid amount of deals being sold by lots of people. Commission expense is not as high. So that’s the way these commission incentive plans work.
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