Richard Dearnley: Well, if the…
Paul Driscoll: The gain on the sale is the — the capital gains rate is the same as the ordinary rate. But I think the tax rate in the fourth quarter was 20%.
Richard Dearnley: Right. Well, the $2.9 million or $3 million that you show there is basically the tax on the capital gain, suggesting the operating pretax, which was about $1.6 million or something had no tax rate.
Paul Driscoll: Right. Well, it’s not the genomic tax rate, Dick. It’s just that during the year, we estimate the full year taxes and we use the effective annual tax rate. So in the fourth quarter, we true up the taxes based on the actual pretax. So there’s always some differences in the fourth quarter.
Richard Dearnley: Okay. That’s what I guess.
Operator: Our next question comes from the line of Jake Patterson with Talanta Investment Group.
Jake Patterson: I was just curious, you said 6% of the company sold. It’s like $11 million, $12 million of revenue for those hunting and fishing lines. Does that sound right?
Paul Driscoll: Right. Yes.
Jake Patterson: And then — so that’s for ’23. What does that — you said that was flat versus ’22 probably? Or is that down a little bit or…
Paul Driscoll: I think it was down a little bit. I think in 2022, it was $12 million. In 2023, it would have been $11 million by region. There were too much [indiscernible] sales.
Jake Patterson: Okay. Got you. And you don’t expect there’s not going to be any like SG&A reduction from that I would assume?
Walter Johnsen: Yes, there was SG&A reduction. Sure, Jake. We had to rightsize ourselves when Dick generally was doing his arithmetic and saying, well, there must have been other expenses. Sure. There was severance. As you can imagine.
Jake Patterson: Yes. Do you have the number for maybe one-time expenses in the fourth quarter that we could back out?
Walter Johnsen: Well, those are just — Paul?
Paul Driscoll: You sold from 19.8, you can work backwards and come up with a number.
Jake Patterson: Okay. So I guess going for, like looking at, I don’t know, $59 million SG&A this year, you’re expecting that to probably stay steady going forward in ’24?
Paul Driscoll: Well, as we grow, we’ll increase a little bit. But the variable cost, there’s a lot of freight to the customers and commissions and — so variable selling. So that will — those will go up with a sales increase. And the rest of the SG&A will stay fairly flat and some savings on Camillus and Cuda. But then we got cost increases and wage increases and so on.
Operator: There are no further questions in the queue. I’d like to hand the call back to management for closing remarks.
Walter Johnsen: Well, thank you very much for joining us. We look forward to speaking with you after the first quarter. Goodbye.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.
