I should have mentioned this sooner but SKUL is a Utah company. I've lived in Utah since 1978 and the one thing they have in common is everyone wants to be a boss or executive. In fact titles are more important than pay but you have a lot of executives doing nothing. What we see with SKUL is SG&A expenses have climbed from 22% of Revenues 5 years ago to 33% now. In fact last quarter it hit a whopping 44%. There are way to many chiefs and I have seen many companies bleed themselves to death over this issue. A bailout or merger from a bigger partner outside of the playground atmosphere of Park City is our real hope.
From the call last quarter, Hoby indicated that a large portion of expenses were due to the final closing of the 2nd branch location. The goal was to slash the SG@A and it should now be evident moving foreward.