Lamar Advertising Co (LAMR) 2005 Q4 法說會逐字稿

We now have Kevin Reilly, Sean Reilly, and Keith Istre in conference. [OPERATOR INSTRUCTIONS] In the course of this discussion, Lamar may make forward-looking statements about the Company, including statements about its future financial performance and condition, operational plans, and strategies, and marketing opportunities. Lamar has identified important factors that could cause actual results to differ materially from those discussed in this call in the Company's report on Forms 10-K and 10-Q and the registration statement Lamar has filed with the SEC. Lamar refers you to those documents. Lamar 's fourth-quarter and year-end earnings release which contains the information required by Regulation G was furnished to the SEC on a Form 8-K this morning and is available on Lamar 's website, www.lamar.com. I would now like to turn the conference over to Kevin Reilly. Mr. Reilly you may begin.

Thank you. I want to welcome everybody one our '05 year-end call, especially our shareholders and friends. When we look back on '05, several highlights. Of course, the first highlight is there was healthy demand for our ad space. We crossed the $1 billion mark in net revenue which is a milestone for the Company. We also in '05 made a decision to commit very aggressively our free cash flow to invest in our core enterprise. We were tagged by some vicious women in '05, Katrina and others, and I want to thank all of our Lamar family for their efforts in '05, especially those who worked long hours under difficult conditions to help us recover from the storms.

Looking forward to '06, it could be characterized as an execution year. This is the year for us to demonstrate that we can generate superior returns by investing our free cash flow in our core business. When you think about the risk associated with that, it is certainly slippery out there, but I don't think we are talking about a triple axle. We have laid out our priorities, and they are acquisitions where available, digital deployment, extending the maturities of our lease portfolio, and share repurchase. Very pleased to say that as of today, we've got 73 digital units up in 26 markets. And it would be nice if by the end of this year we could triple that number.

Also in '06, we will be thinking and acting on the question, what is the appropriate leverage for an enterprise like ours. And I do expect that there will be some movement in that area as we get toward the end of the year. With that, as is our custom I would like to turn it over to -- the call over to Keith Istre and Sean Reilly for some brief comments and then we will open up the call for the next 30 or 40 minutes or so for questions. Keith?

Good morning, everyone. Thanks for joining the call. Just some color on the quarter and some of the year-end metrics. You all got the press release and you saw how we ended up the quarter. We came in slightly ahead of guidance. Revenue, EBITDA for the quarter and for the year on a consensus basis. Our margins for the fourth quarter, consolidated EBITDA margins were 43 versus 43 last year. Obviously the transit is a lower margin business, and with the addition of Obie, that did cost about 1 point on the EBITDA margin for the quarter and the year. Are you going to address Obie? Their operations?

Sure.

Okay. Then I won't mention it. You did notice in the press release that free cash flow was down for the quarter, slightly up for the year. Obviously that was a result of the hurricane and a couple of other things that happened, and I'll explain that more when we get to CapEx. For the total -- for the total growth actual over actual for the year it was 16%. 10% of that came from acquisitions and the rest was organic. You saw the pro forma numbers at the back of the press release for the quarter so I won't go through those, but I will summarize the year for you.

For the net revenue, our total organic growth was 6.5%. For all of our operating expenses other than Corporate, it was 3.4%. The low end of our expected range. Outdoor operating income was up 9.9. Corporate overhead was 21.4%. EBITDA was 9.1. And consolidated expenses, operating and corporate were 4.5.

You saw the guidance that we put out for the first quarter in the press release although we don't guide to EBITDA any longer and we've never guided to expense growth. There will be an increase in the expense levels in the first quarter and possibly the second due to some operating programs and some one-time expenses that have come through and Sean will get into that when he talks more about the operations side. But I am thinking, looking at the numbers, that the expenses, both corporate and direct operating will be somewhere in the high 5 or low 6 range for Q1. We think that for the year, they will come back into line more along the normal range of 3 to 5. Debt -- there is really no change in our debt levels or ratios. We were at 3.4 with the converts. Debt-to-EBITDA, 2.8 without the converts which is the way our group bank measures us.

On the CapEx, and as it relates to free cash flow, our total CapEx was 121 million. We thought we would be somewhere north of 100. And let me -- due to the hurricanes and some other projects that we had going on. Our original guidance was for 85 for the year. If you start with 121 for the full year of '05, we spent 20 million between the third and fourth quarter repairing damage from the hurricanes. We spent $10 million in Q4 on digital. So that leaves basic CapEx of 91. Again we guided for about 85. So we were pretty much in the ballpark there.

As far as '06, our guidance is going to be heavier than it has been in the past. As Kevin said we are going to be investing more in our infrastructure and so forth, and as of today, what we are looking at is about $110 million before digital. And -- there are three projects that total about 30 million that are unusual and out of the ordinary. The first one is a real estate project, a building that we have a purchase agreement to acquire here in Baton Rouge as a potential corporate headquarters. We are fast outgrowing ours as we speak. On our logo franchises, it is time to refurbish a lot of those signs. They have been in the ground 15, 20 years, and there are certain requirements by the states that require us every so often to replace those units and that's going to be about 15 million. The building was 10, the logos will be 15, and then we still have about another 5 million in hurricane-related repairs that we will finish out in the first quarter. So that's -- those are the three projects that make up the 30 million out of the 110, the other 80 is just a normal CapEx that we require year in and year out. Last but not least, I will just mention this, the number of acquisitions we closed for the year was 73 for a total of approximately 190 million in cash and stock. With that, Sean?

Thanks, Keith. Let me hit a couple of the operating initiatives that we have talked about last year. Give you an update on where we are this year. And in addition, it will be the last time that we sort of break out and talk in an unintegrated way about Obie. Let me start with Obie.

We closed on Obie midway through January of last year, and it has been by all accounts a very pleasant experience for us both integrationwise and operationally, and financially. When we announced the acquisition, we promised our shareholders approximately 8 million in contributed free cash flow. As a result of a lot of hard work and some good folks that came our way with the Obie transaction. We actually had a net contribution of free cash flow that was more around 15 million from that acquisition. So we are extremely pleased with our commitment to that business, and we expect that performance to continue into '06.

Last year, we also announced a partnership with Simon Malls. We are progressing nicely with that this year. That partnership will begin to bear fruit. We believe that by the end of the year in '06, we will have developed approximately 40 freestanding traditional units that will have an annual run rate of billing of about 2 million. And we are describing that as Phase I, and while it has taken perhaps a little more time to work through the details of that agreement and get steel up in the air, it is beginning to happen, and we feel good about it.

As Kevin mentioned on the digital side, we have made a major commitment, and he ran through those numbers for you. I can say that the customers are there. The business model in a wide variety of settings, small market, large market, bulletin, poster showing, competitive markets, again, across a wide variety of settings, the business model is holding up, and we feel good about that. Keith mentioned that we budgeted for a slight uptick in Q1 expenses. I'm going to kick through a couple of those for you.

We knew they were coming. Some of them are one-time and they don't cause us a great deal of concern. The largest one is vegetation and tree cutting. We've had some legislative wins in a number of states that allow us to go out and uncover boards that have been covered up by vegetation. It's -- it can be a relatively expensive proposition. We are required by the accounting rules to expense that activity. The good news is it enhances the value of the faces once you clean them up. Another extraordinary expense was in this quarter we will have a five-week versus a four-week pay period, which will, again, sort of result in a little uptick. And finally, for those of you that has followed us for a long time, coming off a good year sometimes we have to recal percentage leases in the first quarter. That is a one time recal and it hits this quarter. So again, as Keith mentioned, while there may be a slight uptick in Q1, we expect as the year progresses that we are going to come in in line with our traditional expense growth.

Let me hit a few of the operating occupancy and rate stats that we traditionally give out, and as a preface, the word is very much like what you heard on the last call. Very slight increases in occupancy, nice gains in rates. For the most part we are getting most of our top-line organic growth through rate, and we see that happening, that trend continuing into '06. December -- year ended December '05 poster occupancy was 65% the full year versus 64% in '04. Bulletin occupancy year ended was 79% '05 versus 78% '04. For the quarter, fourth-quarter ended December '05, 67%, posters versus 67% in December '04. And on bulletins, 78% versus 78% '04. So you can see the gain certainly in the quarter came from rates, and, again, we see that trend continuing.

Keith gave you the acquisitions closed to date. Why don't I put a little color on the National sales picture. Last year was a great year for us on the National sales front. We were up plus or minus10%. Same store year to date full year in '05. And '06 is feeling high single digits to us. Most of the categories are very strong, wireless, insurance, and the like. We do have one customer that is -- their core business is struggling a little bit, that's Auto, but as we see the year shaping up they're committed to outdoor. They're hanging in there with us and that's good news. We're getting good renewals in the Auto category. So that's a little color on the turn of business, we feel good about '06 and happy to open it up for questions. Do you want to open up the call for questions?

Yes, sir. [OPERATOR INSTRUCTIONS] Our first question comes from Chris Ensley with Bear Stearns.

Good morning, thanks for taking the call. You had mentioned at the start of the fourth quarter that hurricane damage might cost you about 2 million. I was wondering if the final result was about that? And if so, that would imply your same-store growth was about 7%. So then I am just wondering in the first quarter are you still seeing any drag from those markets or exactly how are they recovering? Thanks.

This is Sean. I am going to hit the second question first. Keith will probably have to get to the exact number of business interruption in the fourth quarter. We are basically back up in every market except Gulfport, Biloxi. We still got, number one, some reconstruction there, and number two, the business interruption is a tad more severe in the short run. In the long run the Mississippi Gulf Coast is going to come roaring back. The casinos have committed a tremendous amount of investment. We feel good about the -- the long-term recovery of the Mississippi Gulf Coast, but we still have a little bit of work to do getting inventory in the air, and we also have a little bit of business recovery to happen in that market before we are pacing where we were this time last year.

Yes. As far as the 7%. That's about right, Chris. We probably -- I think we estimated that we would lose about 1.8 million in Q4. Sean is correct that the Gulf Coast is not back yet in the Biloxi area. They -- for December, were still pacing about $250,000 a month behind what they were doing before the -- prehurricane. They were at about 750 a month in revenue and they are tracking along at about 0.5 million a month. So they are still about 250 short of coming back to prehurricane.

Chris, this is Kevin. I think one thing you are probably trying to get at is you are looking at 7 Q4 and between 5 and 6 Q1. We feel pretty good about our book as it relates to '06. We did have a downdraft in February, and we view it as a one-off. And ergot, that's why you are getting the guidance for Q1 that you are getting.

Very helpful. One quick clarification. When you say you want to triple digital displays in '06, is that off the 70 that you already have on the ground? And just what kind of pricing are you seeing currently for the digital displays.

We're -- what we are going to do for the first half of this year is just talk about the number of units up. We will be watching the revenue, but since it is not material, we don't want to hype it, but, yes, what I am saying is, it would be nice if we could triple the number of units that we have up now by year end. So it will be 3 times 73.

Thank you very much.

Our next question comes from Gunbir Sethi with Banc of America Securities.

Good morning. Just a follow-up on the digital question. Can you talk about specific markets similar to the network effects you observed in Pittsburgh? And my second question is how much closer are we to outdoor measurements specifically on the demographics side? Thanks.

Well, from Lamar 's point of view, outdoor measurement, we are not that heavily invested in that exercise. We view it as important for the industry. It will cost a lot of money, and our National customers rely on it a lot more than our local customers. So we are kind of ambivalent about it. It is important. How close are we? I don't know. We are making better strides on actually discounting our audience to make us more mainstream and -- but on the -- actually the audience measurement side, there is no one premiere vendor that has really stepped up and said that they could get this done in a cost-efficient way.

Digital. Our view of digital is that, yes, networks work better than one-offs, but one-offs are good. We love them all. Posters on surface streets tend to work better than expressway deployments, but we've had -- we've tried to -- as Sean says we've tried to screw these things up every which way possible, and all of them seem to work. But our preference is -- is to build out local networks on surface streets where there is more time spent, and we can talk more about the demographics surrounding those boards. When you get on major - arterials and major expressways you do get wasted circulation, tractor-trailers and commuters.

All right. I just have one more question. Can you explain the growth dichotomy between large and smaller markets, Clear Channel Outdoor reported today their domestic growth was about 600 basis points higher. I mean is that pricing based? Or are you seeing a different -- or is it a national versus local advertising impact.

Well, their growth is as reported. Ours is same-store. That is a small difference. But I would say when the National business is robust, the bigger markets grow faster. When it is not real robust we're -- if you look at the revenues, big market versus small market and you go back over the last 25 years, there's really not much difference in the growth, so you've got -- you just have a little bit more volatility in the larger markets because you have sophisticated larger customers that come and go, and that's -- that's pretty much my take. Sean, do you have anything to add to that. No, just to highlight again, if you take the long view and look through the business cycle 20, 30 years, you are not going to see a dime's worth of difference in the growth rates, large versus small market. You just have timing issues as you come in and out of business cycles. All right, okay, that's helpful. Thanks you so much.

Our next question comes from Laraine Mancini from Merrill Lynch.

Thanks, two quick ones. Obie margins this year were much better than you expected when you bought the properties although your guidance for first quarter suggests that there will be less revenue in 1Q '06 than there was in 1Q '05 even though you didn't have it in for the full quarter. So what's going on there and what do you think can happen for margins there year-over-year?

The Q1 of last year, we bought that at the end -- roughly of January. And there was some accounting -- it was a stock acquisition. And there was some accounting-related, deferred revenue on the balance sheet that had to be taken into account and is forth. I don't recall what the guidance was last year, but there was some white noise in the Qs numbers last year and that's why we deferred including it in our in our pro forma guidance.

If I could just add a little color. There was a stub on when we closed, and same store, it's in line with the guidance we gave.

Okay. And how about margins this year on that? Is there more expansion or?

The margin improvement that we made operationally last year has largely been put in place. So I think what you are going to see going forward is more of a run rate, more of a traditional run rate for the transit business.

Okay. And then on the expenses in 1Q having the unusual item of five-week pay period versus four week. Is there another quarter in this year where that's going to reverse and you're going to have an easy comp or no?

Yes, you always have one quarter, Laraine where you are comparing a quarter that has no five-week pay periods that one that has one or even two. We just mentioned it because it is unusual item. We don't normally do that, but along with some of the operational projects that we've got going, it was just something to add to the list. It is about a $700,000 variance if you have an additional five-week pay period versus not having one in expense.

Great, thank you.

Our next question comes from Barton Crockett with JP Morgan.

Okay. Good, thank you very much. I wanted to ask a couple of just detail questions about the numbers and then one sort of thematic question. In terms of the thematic question, can you just give us a little bit better color about the feedback you have gotten from your field. You, I believe were going to out to get requests from people in terms of their interest in getting digital billboards in their areas and the regulatory restrictions and how easy it would be to work through that. What are you hearing -- can you give us a little bit of color about the regulatory requirements and the number of areas where you think you might over time have an opportunity to put some boards up on the digital side. In terms of the numbers, can you give us a little bit more detail on the rates -- what the rates were for posters and bulletins in the quarter? And then the breakdown of CapEx '05 how much for digital? You ran through that I didn't quite catch it so if you could just refresh me there. Thank you.

Barton, let me do the first question and then I will turn it over to Sean for the -- for the second two questions for the back half. We -- it is still a one-off exercise because of the regulatory environment and we are trying to discourage our shareholders from taking our -- our top third. We have got 170 some odd thousand faces and take the top third number of faces, convert them to digital and you have got all this explosive growth. We think the best way to communicate to the marketplace and to explain what we are up to here is it is a one-off exercise. Every time you are successful, there is more acceptance, and that acceptance is not only in market but it's cross market because the regulators talk to each other, so it is true that we are finding more and better acceptance for lots of different reasons.

One is they get good feedback from customers. There's not a lot of complaints from people that drive by the things. In fact they enjoy it, and there is a public safety angle to this, where we make our space available to the police for help wanted -- help wanted -- for most wanted. And -- help wanted. [LAUGHTER] And for for other sort of Amber Alert-type activities. So I think at the end of the day, we are actually going to be -- rather than perceived as a blight on the landscape. I think we are going to be perceived as very useful. And as the traditional media find it harder and harder to reach people, I think reaching drivers is becoming more and more important and useful. So we think we are establishing some momentum, but we still think it is important to discourage our shareholders from folding in these huge conversion numbers to digital.

So what we are going to do for the next couple of quarters is just let you know how many units we have gotten up across how many markets. And then if we discover some things along the way that are important, revenue expense, network versus nonnetwork, competitive dynamics, those kind of things, we will certainly share them with the marketplace. Sean, do you want to do the rate and occupancy gig and also CapEx -- Barton was that for '06 Cap Ex for digital?

No, that was for 2005. I didn't quite catch the numbers you put out there.

Barton, this is Keith, let me go through -- I will walk you through that. Let me just go through the five basic categories. Traditional -- well, billboards, which was 88 million for the year; transit which was 1 million; land and buildings, 13 million; operating equipment, 10 million; logos, 7 million. To go back to the billboards, the 88 million, 15 million was digital; As I mentioned 10 was spent in the fourth quarter; 5 was in the first part of the year. So if you take that 15 away from the 88 that leaves you 73 in traditional billboards of which we spent 20 putting the Gulf Coast and parts of Louisiana back together from the hurricanes, so that would be 53 in traditional billboards for the year and that's normally our run rate if you look at the past 3 or 4 years, we always come in slightly north of 50 on traditional outdoor. Land and buildings were just sign sites that we bought throughout the year and buildings, either new buildings or remodelings, existing, operating offices in some of the markets that we are in. Operating equipment is always 7, 8, $10 million a year. And then the logos, the 7 million, again, that was for refurbishing a lot of these markets that we've -- we are under contract with the state to maintain. So that gets you back to your 121 million.

Okay. Great. And detail on the rates for posters and bulletins in the quarter? Average rate?

We are having that calced, it should be ready by the end of the call. So I will just announce it sometime in the next 5, minutes.

Okay, that's great. Thank you very much.

Our next question comes from Marci Ryvicker with Wachovia Securities.

Hi, good morning. I have three questions. The first, is Sean for your M&A goals this year, do you expect a slowdown from the historical 150 to 200 million? Secondly, can you tell us what your revenue growth was in January, excluding Obie? And lastly, have there been any changes in your top customers in the last two quarters?

Sure, I am going to kind of steer away from the monthly, the January thing.

Okay.

But on the question of acquisition goals for the year, it is feeling like the lower end of that range. We have been at the upper end for three years of the 150 to 200. This year it's kind of feeling like it's going to be in the range but at the lower end of the range. And then the other question was -- I am sorry.

Any change in your top customers.

Top customers. A little bit of jockeying, not so much, again, by category, but a little bit of jockeying by customers. I'll tick through the top ten for '05 and maybe hit a little color on what we are seeing in '06.

Okay.

McDonald's was number one in '05. Chevy was number two. They actually leaped slightly ahead of Cracker Barrel. So top five, McDonald's, Chevy, Cracker Barrel, Cingular, and Dodge. Probably just a little color on how this year is shaping up. You are probably going to see Cracker Barrel go back up above Chevy, although our commitment from Chevy for the year is still looking very strong. I mentioned the wireless category being extremely strong, but you are probably going to see Verizon and AT&T, and Nextel leap over Cingular. There is a little jockeying going on there in terms of customers versus category, but at the end of the day, the category is going to be extremely strong. And then everything else is pretty much status quo.

Okay. Q4. I've got the -- I've got the rate numbers for Q4. On posters, Q4 '05, 442 versus Q4 '04, of 423, that's a 4.5% increase. And for bulletin, Q4 '05, 1149. Q4 '04, 1057. That's a 8.7% increase. And I see those types of ratios carrying forward. So we are comfortable with that trend. Keith is telling me I can say that January was slightly north of 6.

Thank you.

He doesn't want me to say anything more than that.

Our next question comes from James Dix with Deutsche Bank.

Good morning, guys. A couple of questions. First, I guess maybe for Keith, I don't know whether you have the figures on what the revenue and EBITDA impact was from the acquisitions which you completed in 2005, but if you have that, that might be useful. Secondly, you -- do you anticipate any income statement impact from your digital investments or is that going to be pretty minimal? I guess I am looking for primarily on the expense side since it sound like, in terms of the overall business, the revenue side will be relatively immaterial this year, but I am just curious as to whether that's going to have any impact on expenses this year? And then I guess -- one more for Keith. Anything on the FAS 123R impact, any estimate as to what that is going to be? And I guess I have a fourth, a thematic one. If you look at the uptrend you're seeing now in your business, and you compare the uptrend you saw coming out of the downdraft kind of in the early '90s. Do you see any similarities or differences that you think are worth noting for investors in terms of its sustainability?

This is Sean. I am going to hit the last question and then I will hit the digital expense question. The only color that I think is worthwhile comparing coming our of this business cycle as opposed to the one in the early '90s is it seems this one is a slightly less steep slope, and by that I mean we came out -- over a shorter amount of time and with numbers that were larger coming out of the early '90s. This one has been more gradual. It has been equally as, I believe, gratifying, but, again, it's been -- it's been a little -- it's been a little slower. But I don't know that at the end of the day it is going to be less powerful. It is just kind of hard -- it's hard to tell what inning we are in on the occupancy gain. We are seeing extremely good rate gains. And that is fairly typical. I would say to put a little finer point on it, we would hope to see some more occupancy gains before the cyclical recovery is all said and done

The difference on the rate side 90s versus today, our fortunes were linked to what the other local media platforms were doing in the marketplace and we seemed to be somewhat divorced from their behavior in the local marketplace today. And it is not a bad place to be.

And then on the digital expenses, it is obviously something we have had to gear too, and obviously you have a slight run rate of expenses as you are gearing to a business model in the early stages of it. That being said, I don't think that is going to put us outside our traditional 3 to 5% expense guidance in our business model. Let's see, James, you were talking about the -- the cost of expensing stock options. I think first -- and then the revenue that we bought.

Yes. The revenue EBITDA you bought last year.

Okay. Well, I don't have the EBITDA, and obviously that's an estimate on our part. We buy historical but we pay on forward. But the revenue that we acquired was in the $20 million range. I don't have the numbers in front of me, but it was somewhere between 20 and 24 million. And as far as expensing of options, it looks like it would be about 2 million a quarter. 8 million for the year. That's what it was this year. And we didn't expense it this year. It's just in a footnote as it has been, but, of course, we will have to expense it going forward.

Okay, great, thanks.

Our next question comes from Jason Helfstein with CIBC World Markets.

Thanks. Two questions. First, can you give us an update on now what the actual -- the CapEx cost of a digital face is and I don't know if you want to break that down between like a smaller face and a larger face and perhaps give us some color how that has changed over last two or three years as you've talked to the vendors and then just a bigger picture question. We are seeing more and more consistent results from you guys, not just from the industry, but just for Lamar . Can you perhaps talk about some of the changes you guys have made perhaps to Lamar perhaps either Corporate or around the organization that has allowed you guys to deliver more consistent results over, like, the last, I don't know, four or five quarters? Thanks.

Jason, I will do the consistent results, and we will let Sean talk about pricing for the digital units. And after this let's take one more call and then we will go ahead and wind it down. I think the consistent results is more on the -- rather be lucky than good. I think a lot of the way we perform has to do with our revenue mix and the markets that we are in. Now we do a great job given what we've got, but I really do think that that gives us a little bit of an advantage when you just talk about consistency. When I talk about revenue mix three quarters of our revenue comes from the bulletin side of things, and as you know, they are sold individually by location, and the contracts run from anywhere from 3 to 12 months. We don't have -- we have transit, but -- and it is volatile, but it's not such a large part of our book that it doesn't create volatility. As we get more successful with this digital, there will be more volatility in our revenue streams because we are going to have long-term contracts associated with digital but we are also going to be selling space in the spot market, and it is going to be interesting to see how we deal with that. Sean, you want to talk about--? Yes, but first let me disagree with you, I would rather be good than lucky. [ LAUGHTER ] On the -- the cost of digital, it's a complex question because while the cost of units come down, and I think we can point to over the last few years of 30% to 40% decrease, we are also insisting on better resolution. So we -- as -- as we challenge our vendors to not only deliver a lower cost product but also a product that is better for our advertisers and our customers, we are not driving the cost curve as quickly as we could because we are, again deploying units today that have demonstrably better resolution. So I wouldn't take a straight-line model and just say, okay, this is going to continue at 30 to 40% a year decrease in that cost, but rather you might want to maybe split it in half if you wanted to model it. Maybe 15%. Taking into account the fact that we are buying better units with better resolution.

So what is the actual price then like for example, the average cost per face right now?

A poster is 160 to 180 for a traditional poster deployment. That's 10 by 25, and a bulletin that's 14 by 48 is give or take 350.

Can you give us -- you wouldn't want to give us your mix, would you? What you are thinking about? Is it majority still posters?

I would say this year, 50/50.

Thank you guys very much.

Our last question comes from Gordon Hodge from Thomas Weisel Partners.

Good morning. Just a couple of questions. Kevin, you mentioned that February looked a little soft and it was a one-off. I am just wondering what you think the cause of the one-off is? If it is maybe Olympics-related or something else. And then also Clear Channel mentioned they have had a two-year deal with General Motors. I was just wondering if that might explain why Chevy would be falling among your top five in 2006 or should we just assume that that is unrelated given the fact that you don't have that much overlap with their businesses? Thanks.

I've got -- the guy who runs our National sales John Miller just whispered in my ear that I think we have a three-year deal -- a three-year deal with Chevy, but this is the beginning -- this is the first year of that three-year deal.

'06.

And these national contracts, even though it is a three-year deal, I think only the first year is noncancellable. So Chevy's strategy obviously was to go long and try to lock in attractive rates. Why -- you were trying to get at February. Is it a blip or a trend?

Yes, just what gives you the confidence that it is a blip?

Dodge.

Okay.

Dodge canceled in February. And they are -- I think they are our fourth largest customer. They are going to come back.

Okay, got it.

But we really do -- if you look at our books. Our expectation is that top-line growth should be better than what we've got -- for the whole year it should be better than what we have guided to for the first quarter.

Fantastic, thanks.

Well, that -- thank you for running a good call. And I just want to thank all of our shareholders and friends for listening in and we look forward to visiting with you next quarter.