Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of David Miller with SMH Capital.
David Miller – SMH Capital
A couple questions, Mark, I’m not exactly clear on what happened with the Home Depot situation. It seems like $7 million is a rounding error to these guys.
Mark Shapiro
The $7 million is not the Home Depot. I want to be very clear about anybody that heard that. I wasn’t saying specifically what the Home Depot was paying us. I’m saying that every year we are going to have a range of deals, a bucket of deals that come in and come out. Some renew, some don’t. Some you chase, some you get increases, some you get decreases, some fall out all together. The Home Depot was one of many deals that fell out for this coming year. I’m not also putting the blame on them.
We really wanted to open up the category because we believe with the series of the world, the Macy’s of the world and all the folks out there, department stores that are looking increases in their business in what are trying times we believe we can be an advertising solution. That’s why we opened up the category.
David Miller – SMH Capital
At the end of the day it sounds like Home Depot fell out too late in the season for you to replace the revenues, would that be fair?
Mark Shapiro
No, they were in last year and as I mentioned on the last call they weren’t going to be coming back exclusively. They still may come back at a certain level; I’m not sure what that will be right now. We’ve already been negotiating with many of their competitors to take their place for this season. We made that decision for them to fall out early on so that we would be able to open up that category and capitalize on that category.
David Miller – SMH Capital
I think it might have been three earnings calls ago we were talking about gas prices a little bit. I remember your reaction was that the cat is out of the bag, sticker shock is already out there. Yes, gas prices keep going higher. I’m wondering, maybe Jeff if you want to chime in on this as well. What is your market research say in terms of what’s the ceiling out there on gas prices where people finally throw up their hands and say, ?Hey, I’m not going to drive that 50 miles to a Six Flags Park.? Do you guys care to comment that would be great?
- To read the full transcript on Seeking Alpha, click here »
