..in the report they say, "quarterly base SG&A in 2012 is expected to be between $73 and $77 million."
SG&A was $69 million for the fourth quarter (from this mornings report).
Why is SG&A expected to be rising so much in 2012 compared to this quarter? Is this a seasonally weak SG&A quarter for some reason.....or am I just missing/misunderstanding something thats very obvious?
if you take the midpoint of their sg&a guidance for 2012 (range of 73 - 77/qtr), then they expect sg&a to be around $300 million for 2012, vs the $302.8 they had in 2011....I thought the drop would be much bigger due to the restructuring.
Again, I must be missing something here. Unless advertising/marketing expense is projected much higher, and the restructuring cost savings lever their gross margins while being neutrl to SG&A...?
"if you take the midpoint of their sg&a guidance for 2012 (range of 73 - 77/qtr), then they expect sg&a to be around $300 million for 2012, vs the $302.8 they had in 2011....I thought the drop would be much bigger due to the restructuring."
The Board of Directors has approved a compensation incentive package of $20M that spreads through 2013. As such, they are projecting that some of that will be incurred in 1Q12. In other words, they expect sales to increase in the quarter. We do not know by how much. Details are outstanding so to speak. This jives with their comments regarding the backlog: "We carry a good backlog into 2012."; "All I can tell you is our backlog is in better shape than it was a year ago."; "We'll have numbers for you in May. But we like our backlog. But we've got a lot of work to do, every day we drive sales."
I totally understand that for several years the suffering longs have heard the same song and it is probable that we could see a repeat of the same "BS". I was doubtful of the stock at $6.35 when Barron's recommended it because the economy still sucked back then and unfortunately the CEO was over promising in a bad economy. Nowadays, the economy has turned around as I've noted in another string of messages.
If I turnout to be wrong, however, I will be the first one to recognize it.
Tell me ANY of their 'guidance' numbers that have made ANY sense for 5 years now? 2012 will be the year they dip under a billion in sales as a company. Several of the brands used to be half that by themselves!