Among cost-cutting efforts to reduce second-half expenses by up to $8 million is the closuring of a New York office. Pote said, "going into 2007, we believe we can knock off 15% to 20% of MG&A without damaging our core business. Jenkintown is our headquarters, and I will be based here, not in New York."

Among the future anticipated savings is a reduction in CEO compensation. According to the company's 2006 proxy statement, Schorsch received $1.7 million in salary and bonus in 2005, plus stock grants of about $2 million, and about $595,000 in expenses as part of his agreement. Pote said he will receive a salary of $500,000 with a potential $500,000 bonus based on performance, plus some stock options.The cost of restructuring is between $23 million and $27 million, "largely the result of separating the company from its founder under a contractual agreement," Ranieri said. Later, management said, "between $13 million and $15 million cash will walk out the door." Schorsch's actual severance will be posted later today, but an AFR spokesman tells GlobeSt.com the total settlement package is in the neighborhood of $20 million, including cash and stock.

Regarding a potential sale of the company, Pote said, "this management team will not close the door on any opportunity or action that will realize full and fair value to our shareholders." Advisors Greenhill & Co. LLC and Deutsch Bank Securities remain on the payroll. "We're not actively soliciting offers, but if an opportunity for us to monetize full value to shareholders comes along, we have an obligation to inform shareholders."

According to Ranieri, "nobody gave us a fully funded bid. Conversations indicated nothing the board was going to agree with, so the conversations didn't go any further."

Pote also promised is improved transparency in reporting. AFR, he said, "will seek to conform its reporting of operating results to more closely reflect industry standards," and promised to announce specific changes "shortly." He does not anticipate further changes in management.

"We are in a 'show me' position now. I'm very confident we can show you," Pote concluded. Immediately following the conference call, AFR stock dropped to $10.30 a share, down 8% from the close of the previous day. The 52-week high of $14.73 a share was reached on Sept. 16, 2005, and the 52-week low of $9.52 a share occurred on May 3 this year.