Lee Enterprises Inc (LEE) 2004 Q2 法說會逐字稿

Good morning ladies and gentlemen.

Welcome to the Pulitzer Inc. second quarter earnings conference call.

Today's call is being recorded, and will also be available via the Web by going to www.PulitzerInc.com.

A replay for today's conference call will be available until Tuesday, July 27th, and the Web-cast will be available on Pulitzer's Website until Friday, August 20.

Before we begin, let me note that any comments made during the course of this conference call may include forward-looking statements.

These statements are subject to risks, uncertainties, and other factors -- such as overall advertising expenditures, competition, newsprint pricing, outcome of labor negotiations, and economic conditions –- that could cause future results to differ materially from management's current expectations.

For a discussion of these other factors, please note (sic) to the Company's press release issued earlier this morning, which is also available on Pulitzer's Website and in the Company's reports filed with the SEC.

In addition, please see the Company's press release for a reconciliation of the differences between non-GAAP financial measures presented during this conference call, and the most directly comparable financial measures calculated and presented in accordance with GAAP.

Thank you.

Mr. Woodworth, you may begin your call.

Thank you and good morning.

We appreciate you joining us.

I'm Bob Woodworth, President and CEO of Pulitzer Inc.

Joining me are Alan Silverglat, Senior Vice President and CFO;

Terry Egger, Senior Vice President and Publisher of the St. Louis Post-Dispatch; and Mark Contreras, Senior Vice President with responsibility for Pulitzer Newspapers, Inc., or PNI, and our operations in Tucson.

I would like to spend the next few minutes providing some perspective on Pulitzer's second quarter results, which we released earlier this morning.

Following my remarks, Alan will briefly review the numbers.

And, finally, we will open it up for your questions.

Please keep in mind that unless otherwise noted, the numbers we are presenting are comparable numbers.

They include our interest in the Tucson joint operating agreement, and exclude the impact of acquisitions.

I should also note that when we discuss the retail and national revenue categories, both include preprints.

To sum it up, it was a very good quarter.

Our results were strong; but, more importantly, they reaffirmed the benefits of our core operating strategy.

This strategy, which we put in place several years ago, is to expand our audience reach and increase our share of advertising dollars, and to make investments that create value by growing revenue and earnings over the long term.

Now, let's review the second quarter.

Total revenue increased 4.7 percent, with ad revenue up 5.6 percent.

We enjoyed strong sequential period-over-period growth throughout the quarter.

Revenue gains were led by classified, our best-performing category.

Classified revenues strengthened month-by-month, and increased 11.1 percent for the quarter.

The classified gains were led by recruitment, which was up 19.5 percent following a 13.7 percent increase in the first quarter.

And we continue to see strength in real estate and auto, up 8.2 percent and 8.8 percent respectively.

Retail advertising increased 4 percent.

Gains came from local advertisers and from healthcare, grocery, and financial categories.

The quarter also included 3 months of revenue from Local Values, the new direct-mail initiative in St. Louis, which was launched in March.

Local Values was a significant contributor to our strength and retail preprints.

National advertising, our smallest category, decreased 6.8 percent, primarily reflecting weakness in packaged goods, pharmaceutical, and travel.

We were also up against tough comparisons with the year-earlier quarter, and those comps are starting to ease.

Second quarter reported operating income declined 2.7 percent.

The decrease was due in part to a nonrecurring charge -- $1.5 million before taxes -- related to the settlement of a lawsuit, involving distribution rights, brought by a group of independent Post-Dispatch carriers.

Absent this nonrecurring charge of $1.5 million, reported operating income increased 3.4 percent.

Operating income trailed the revenue gain, primarily as a result of the cost increases associated with Local Values and higher newsprint prices.

I would like to give you a bit more detail about the quarter, beginning with St. Louis.

St. Louis had a challenging start to the quarter, but finished strong.

Total ad revenue was up 3.6 percent, led by an 8 percent gain in classified.

For the second consecutive quarter, we saw gains in all three major classified categories.

Real estate increased 6.9 percent, help wanted was up 10.6 percent, and auto was up 9.9 percent.

Retail was up 3.4 percent, and national was down 8.3 percent.

We continue to see weakness in a few of the majors, but we also continue to achieve solid growth in local territory revenue, the category over which we have the most control.

Local territory revenue was up 11.8 percent for the quarter.

Sales apps in both the Post-Dispatch and the Suburban Journals delivered strong performance.

The Suburban Journals, in particular, continue to demonstrate impressive momentum.

With three months of results, Local Values is tracking according to plan.

I would like to reiterate that Local Values is a perfect example of the kind of investments we are making to increase market share, grow revenue, and strengthen our long-term prospects.

Finally, as I indicated earlier, we are pleased that at the Post-Dispatch, an agreement was reached with the St. Louis Newspaper Guild on a new 5-year labor contract.

Now, let's turn to PNI, which had a great quarter by any measure.

In fact, it was PNI's best-ever second quarter for total revenue, ad revenue, EBITDA and EBITDA margin.

The second quarter record comes on top of its best-ever first quarter.

Total reported ad revenue, including acquisitions, was up 14.3 percent.

PNI ad revenue without acquisitions was up 10.3 percent.

PNI saw substantial strength in classified, which was up 17.6 percent on a comparable basis.

In fact, we saw gains in all three major classified categories.

Help wanted increased 35.6 percent, with gains in each of the PNI markets.

Real estate was up 17.9 percent, and auto increased 6.8 percent.

Strategic acquisitions, an important and ongoing component of building market presence, continued during the second quarter, with the purchase of 2 weekly publications serving the Santa Ynez Valley in Santa Barbara, California.

We also acquired 2 monthly real estate publications in Bloomington, Illinois.

As with our other acquisitions, we expect to increase revenue, reduce costs and expand margins.

Coupling revenue growth with continued tight cost control enabled PNI to achieve gains in operating income and margins.

Operating income was up in 11 of the 12 PNI markets, and operating income and EBITDA margins each increased more than 1 point over the previous year's second quarter.

Turning to Tucson, where things are heading in the right direction.

Mike Jameson, who joined the Tucson partnership in January as President and CEO, has brought a sharpened focus on performance.

Total ad revenue was up 7.3 percent in the quarter, with a 2.2 percent increase in retail and a 5.4 percent decrease in national -- but a substantial improvement over the first quarter.

Classified revenue was up 17.5 percent overall, led by help wanted, which was up 44.7 percent.

Before I turn things over to Alan, I will take this opportunity to reaffirm the guidance we issued last December, a full-year 2004 base earnings per fully diluted share of at least $2.10.

Thank you.

I will turn the call over to Alan.

Thanks Bob, and good morning everyone.

I will spend the next few minutes concentrating on the expense side.

Comparable operating expenses were up 6.8 percent in the second quarter, and reflect the following -- one, an 8.5 percent increase in newsprint expense, principally driven by price increases; two, a 4.0 percent increase in labor and benefit costs -- resulting from salary increases, increased healthcare and pension benefit costs, and a one-time contracts payment at the Post-Dispatch.

These increases were partially offset by a 2.3 percent decrease in FTE levels, which reflect the PNI acquisition.

Absent PNI acquisitions, FTE levels actually decreased 3.5 percent.

Three, expenses associated with Local Values; and four, a $1.5 million nonrecurring charge related to the litigation settlement in St. Louis.

Excluding costs related to Local Values, newsprint, the one-time St. Louis contract payment, and the litigation settlement, comparable expenses were up 2 percent for the quarter.

Given our experience so far this year with newsprint, we expect newsprint cost increases for the year to be toward the lower end of the guidance we gave earlier of an increase in the low to mid double-digit range.

Pulitzer's financial position remains strong.

At the end of the quarter, the Company had cash and marketable securities of just over $200 million; total debt of 306 million; long-term debt, net of cash and marketable securities and restricted cash, of 30.7 million.

We continue to expect 2004 capital expenditures in the $10 to $12 million range.

Now, let me turn it back to Bob.

Thank you Alan.

Now, we will be happy to open it up for your questions.

(Operator Instructions).

Stacy Fleck, Merrill Lynch.

I was hoping you guys could maybe quantify the revenue contribution from the direct-mail program in the quarter.

And also, Alan, should we expect the tax rate to remain at that 36 percent range for the remainder of the year?

Good morning, Stacy.

I will let Terry comment on direct-mail, and Alan comment on the tax rate.

We have not specified the direct-mail initiative in terms of the revenue expansion -- broken that out yet.

What I can tell you is, we (ph) clearly see the bounce from that program and our preprint revenues, and assure you that we're very pleased with how we are tracking with the business model that we built on this program -- which again, as you will recall, we said the program will be profitable in '05.

So, again, I hate to not give you more detail.

But we have not specified that.

The tax rate should be about the same for the full year as in the second quarter.

Great.

Thank you.

John Janedis., Banc of America Securities.

Just two brief questions, if I could.

First, can you just give us some more detail on the settlement related to the carriers?

Does that in any way affect your ability to buy in more routes?

And then just on Tucson, you mentioned it looks like it's turned the corner during the quarter.

Can you give us an outlook for the rest of year?

Good morning John, it's Bob.

I will let Terry comment briefly on the carrier settlement.

But we really can't give you too much background there.

Then, Mark can comment on Tucson.

I would just say that we just continue to be very pleased with the way Mike Jameson, the new executive at the agency, is looking at the right things and making sure that everybody is on the same page to meet our objectives there.

But, Terry, you might just comment briefly on the carrier settlement.

I don't know if you have had a chance to see the release or not yet.

But, Matt's comments in that release noted -- this really was a clarification of distribution rights with the carriers and the contract that they currently have.

And from our point of view, it was just good business decision (sic) to get the settlement behind us.

And that, we think, clears the slate to try and move forward, to continue to try and make acquisitions of home delivery routes at reasonable prices.

But clearly, we think this was a potential obstacle to further route acquisition, and we're glad it's behind us.

John, this is Mark.

Just briefly on Tucson, I would echo Bob's comments about the job Mike Jameson is doing.

He has been in similar shoes in the past, and he has really done an amazingly quick job of getting the organization focused on driving revenue.

In terms of what we can expect for the last half of the year -- I don't want to jinx us, but there is reason to be optimistic about some of the work that we've gotten from major advertisers, about their levels of spending in the last half year.

Okay, great.

So that -- you said definitely (ph) that you expect positive year-over-year growth to continue?

Yes.

Okay, great.

Thanks.

Steven Barlow, Prudential Equity Group.

Can you talk a little bit about national?

What categories were actually up in the quarter?

And then, you look like you have 2 really bad months of January, February -- and March was better. 2 really bad -- April, May -- and then June looking better.

Any thoughts on, sort of, the second half with national?

And then secondly, Alan, it looks like actually the cash position for the quarter went up about 3 million, up 20-some odd million for the first half.

Just what went into the cash really not growing as fast in the second quarter?

I will let Terry comment on national, because as you know, it's really the significant driver in St. Louis.

But the headline is that we really did have some tough comps in the first quarter.

And that was really a pretty steep hill for us to go against.

But Terry, you might add some more color.

Specifically, we were pleased to see a bounce back in the telecommunications category, and then, also, a better performance in pharmaceutical.

Auto and travel were still a bit soft, but I think the important thing is what Bob touched on.

If you go back, our second quarter numbers, particularly in '03, were just lights out.

I believe May of '03, we were up 55 percent in national.

So, we had some very steep comps to go against.

As we indicated earlier, those comps do ease for the rest of the year.

We are pleased, as I said, to see particularly telecom perform a bit better.

Travel, we should be cycling next quarter against the American Airlines losses.

So we don't see a gangbuster national performance for the rest of the year.

But we do not see it being the drag it was in the first 5 months of the year.

Steve, I'm reaching for a number here; and Alan, you may be -- correct me.

But I think national in St. Louis, in the second quarter of '03, was up around 36 percent.

Right, it was 55 in May alone, but 36 for the quarter.

It was a pretty steep hill, Steve.

We don't like to always use that as a reason.

But it was a pretty steep hill to climb.

Alan, cash position?

Sure.

The -- there is really not that much unusual about cash activity.

There -- to some extent, it just reflects the timing of when bills were paid.

We paid a little more in estimated tax payments, did a little more in circulation around purchases this year versus last year.

But, really nothing of any magnitude or significance.

Okay.

And then one more question for Terry.

Is there a way to differentiate the performance of the Post-Dispatch versus the Suburban papers?

Just trying to get a feel about the big city out there, when we compare to some of the other newspaper companies.

I just wanted to see whether there is a differentiation right now in the performance, in terms of what is improving at a faster rate, whether it's the city or the suburbs.

That's a good question.

It really -- rather than say city or suburbs, I would say it's really more local territories, because the continued strength in local territories of the Journals mirrors what we've seen from the Post-Dispatch over the course of the last 2.5 years.

So, I would say that in the last 6, 9 months, particularly the Journals' sales staff in local territories' sales into the journals, have really, really increased.

Secondly, the Journals' classified performance has been very strong.

So, one of the things that recruitment advertisers will do in the suburbs or for small businesses is, they will turn to the Journals to place their recruitment ads.

And we have been pleased to see that recruitment in the Journals is actually outpacing even the growth of the Post right now.

So, I don't really look at it as urban core versus suburban.

I look at it as retail territory overall, and then some of the niche segments coming back in the Journals.

Steve, this is Bob.

The only thing I would add to that is Terry's comment on classified.

The strength there is partly due to our ability to cross-sell classified between the Post-Dispatch and Suburban Journals.

But it's a good, vivid illustration of why these kinds of acquisitions make a lot of sense.

And Steve, it's Alan.

I also should've noted in your -- the question about cash position, that we have been building inventory relative to last year to mitigate the effects of price increases.

So, that is part of the answer.

Okay.

Now you made me do another question.

What is your inventory for newsprint, versus your historical norm at this time?

It's -- (multiple speakers)

Aside from the answer (ph) being up --

Yeah, that's fair.

It's probably the higher, by 50 to 100 percent, depending on the location.

Thanks.

Peter Sulkowski, Goldman Sachs.

Just a couple of questions.

First of all, on the Local Values thing.

I know you're not giving any numbers, in terms of the historical or what it's been in the last 3 months.

But do you sort of have a 12-month run rate on that, in terms of what you expect revenues to be, either in the next 12 months or even in '05, sort of a view?

And then in Tucson, if you could give a little bit more information on what drove that 45 percent increase in help wanted revenue, I would appreciate that.

Then I have a couple of other follow-ups.

Its Bob.

I will let Terry comment on Local Values, and Mark comment on Tucson help wanted.

Peter -- and again, one of the reasons that Local Values is -- we are competing in the direct-mail market.

And we don't like to disclose, because we have other competitors out there that we're going against, exactly where volumes are or run rates are going to be.

Just to reiterate, when I was speaking with Stacy -- the model we built said that within 12 months, we would be tracking the profitability.

We are right online with that.

The more important thing to look at is, there again, is about $30 million worth of shared advertising mail spent in St. Louis each year, between ADVO and Val-Pak and Money Mailer, etc.

Those are the people that now we're able to compete with.

And out of the blocks, we have been able to get 2 of the 3 largest grocers in our program, and now being able to fill in with the cleaners and the siding companies and the pizza parlors, etc.

That business -- that's business we were not in a strong position to compete with -- compete for, before.

And so we're optimistic that '05 -- this'll be a profitable venture.

As we've stated on an ongoing basis, once this business begins to mature, we anticipate its having margins similar to the newspaper operations.

Peter, this is Bob again, the only thing I would add is -- this is not cutting edge product innovation.

I mean, these are businesses that other newspaper companies have built in markets really over the last decade.

And we have some experience in building these businesses in other markets.

We were very pleased to come out of the chute with a very strong full-run distribution by 2 of the major grocers.

This is a good business.

There is a $30 million opportunity in St. Louis, and we're off to a good start.

We can build this into a good business.

Peter, one of the ways that we try to look at it is that it's not a lot different than if we were to go out and have purchased a new property or new asset somewhere, either in St. Louis or in other markets -- that the opportunity to get business that we didn't have before at really a 1-year investment, we think is a wise move.

Excellent.

And then, on the Tucson thing, what is driving that 45 percent?

Peter, this is Mark.

The primary –- well, there's two drivers really at play here.

One is a program that they put into place in the early fall of last year.

It started in the late summer and really kicked into gear in the early fall -- called Maximum Reach, which extends the frequency of help wanted advertisers (ph) in print.

The second thing at play is what they're doing online.

They are selling, very aggressively, CareerBuilder 7-day and 30-day packages to advertisers to extend their reach online.

So both of those are driving it, all within the context, obviously, of a Tucson economy that is showing great signs of health in any guidepost you look at.

Housing starts, tourism, travel indicators -- were all trending nicely upward in Tucson over the last couple quarters.

Excellent.

And then on the PNI front, in terms of acquisitions -- or I guess use of cash, if you will, anything sort of out there that you can comment on, besides what you have already done up to this year?

And then, other uses of cash possible of that 200 million for the near future?

Mark, you want to comment on PNI?

Sure.

Peter, as you know, we have executed on 4 of them so far.

We do have several of them left to work through, and I would say that in the next several years, you're going to see us execute on those.

Again, the dynamics of these are that we can typically pick them up at multiples well under what you would have to pay at a daily auction.

Then, in fairly short order, bring those acquisition multiples down into the low to mid single digits in pretty short order.

Those kind of opportunities we see ahead of us over the next 2 to 3 years continuing -- that we have not executed on.

Then, Peter, on other uses of cash, I think the opportunity for acquisitions is picking up a bit.

So we continue to be actively involved in that area.

The other thing I might mention is, we have authorization for a stock buyback program that we continue to take a look at.

Have you bought any back yet this year?

Excuse me?

Have you bought any shares year-to-date?

We have not.

But, those two things would be -- we would just be opportunistic about.

But we are, particularly on the acquisition front, I think as you know, pretty disciplined about getting a reasonable multiple and driving that down.

Alan, I don't know if you would have any other comment there.

I think that's it, Bob.

Great.

Thank you very much.

Michael Kupinski, A.G. Edwards.

I was just wondering, just following up on that question then, Bob.

Can you just remind us of your acquisition strategy and what you would like to look for, other than buying some of the direct-mail and some of the smaller publications that you have been buying in the PNI group?

Sure Mike, good morning.

We're taking a look at, really, virtually any publishing property that we think we can acquire at a reasonable multiple -- apply some of the things that we've been talking about over the last several years, developing local revenue, building audience -- and using that as the platform to drive down the multiple.

And we would, I think you'd see pretty clearly, that the performance of PNI, particularly this year, has been really quite impressive.

So, we would look to add markets in the PNI Group.

We would also continue to be very interested in properties where -- larger properties -- where we could really move the needle and apply some of the strategies that we've executed in St. Louis.

So, I know not I'm being very specific.

But, -- (multiple speakers)

Would that be in the size of like a Bloomington, for instance, that you're talking about?

Or are you talking about something a little bit larger than that?

We would be very interested in a Bloomington.

We would be interested in something larger.

We would be interested in something smaller.

What would you say would be the current multiples that properties are going for these days?

Well, Mike you've got as good a read of that as I do.

The most recent was the Century acquisition in Michigan, which -- I frankly don't know the particulars on that.

But I guess it was rumored to be around the 12 multiple.

I guess it was published.

I think that's the kind of thing you are looking at.

Maybe even more than that, in specific situations.

But, I think the key is being able to negotiate a reasonable price.

But then, through discipline on expenses and some of the revenue strategies we have employed, build value for shareholders.

That's really what we're pretty focused on.

The other thing I would add, and I think we have reviewed this with you, is if you look at the acquisitions that the PNI Group has made over the last several years -- as Mark mentioned, we bought them at very attractive multiples.

He and his folks have done a terrific job of driving down that multiple to very attractive levels.

So, he's created a lot of value.

He definitely has done a terrific job there.

Alan, I was just wondering, on the payroll expenses -- were a little higher than expected for the reasons that you outlined in your presentation.

Can you just talk a little bit about the second half?

And would you look for a little bit more moderate growth in the 2 to 3 percent range in payroll?

And also, if you can discuss any particular effect from the recent union contract?

Well, recognizing the last point you made, Mike -- they are going to be a little higher in the third and fourth quarters than they were in the first, because we do have a pay raise for the St. Louis Guild employees that was not there in the first quarter.

But, it will still be in the line of a 3 percent inflationary range for the full year.

Okay.

And Bob, you mentioned local territory retail revenues in the quarter were up significantly.

Can you talk about what this department store advertising did year-over-year?

And I believe that you've already cycled through the loss of department store ads in June, if I recall.

And can you remind me what percentage of total retail is department stores?

Are there any updates about whether department stores will be increasing ad budgets in the second half -- keeping them constant?

Do have any read on what's going on there?

Sure Mike.

I will let Terry and Mark comment on that.

Because I think as you know, particularly with majors, that can vary pretty significantly from market-to-market.

And what you'll hear is that it does.

So, Terry, maybe if you can comment on St. Louis, both in terms of majors and local territory.

And then Mark, the same for Tucson.

Actually, the department stores have been soft.

And we don't see that picture changing dramatically for the balance of this year.

The two major department store players, Dillard's and Famous Barr, are in the market.

Dillard's, as you'll recall, reduced spending across the country in most markets a year ago.

We were able to retain more than our share, relative to other markets with some (ph) programs.

We worked with Dillard's to try and help them generate sales.

That is what we have cycled against.

Famous Barr -- their reductions in spending came later than Dillard's, and so we're still going against those.

Frankly, I don't see that -- like I say a dramatic pickup there for the balance of the year, nor do I see them pulling back further.

All the more important reason why we're focused on the other initiatives that we have.

Mike, I'd just comment on PNI in Tucson.

As Bob mentioned, the decisions on spending for a Dillard's, for Robinson's May, are made in large part geographically.

So, what we've seen in -- particularly in the West in Arizona and Utah, with one large department store -- is that their plans for the second half of the year call for spending levels equal to or in excess of a few years ago.

So that's the first time we've seen, directionally, that movement happen.

As you know Mike, these things can -- plans could change.

But at least the preliminary word that we've got so far is, we've got good reason to be optimistic for the last half of the year.

In general, I would tell you this -- that we've talked about this in the past that PNI markets, over the last couple of years.

We have tried to make our dependence upon the top 5 or 10 advertisers less and less, as time goes on, by focusing on local territory growth.

We anticipate, by the end of this year, we're going to be at 10 percent or below in terms of what those Big Ten represented in each of our markets.

So that's a path that we're going to continue to go down, so that we don't have to wake up one day and be really harmed by the actions of one very large advertiser.

And Terry, could you give the percentage of the majors, relative to the total retail in St. Louis?

In department stores, specifically, Mike?

Right, right.

It would be in the very low teens.

Okay.

And Mark (multiple speakers)

Of retail.

Of retail, right.

Mark, with all the initiatives and acquisitions that you had at PNI, I was wondering if you can discuss the margin in the second quarter at the division.

And could we expect margins to increase in the second half?

Or decrease because of the recent acquisitions?

Mike, I don't want to speculate on margins overall.

I will tell you that the effect -- the margin effect of the acquisitions that we made in the last 12 months have frankly been margin expanders, not margin reducers.

So, to the extent that does continue to play a positive role, the acquisitions at least will, I believe, continue to contribute to expending margins.

There are -- there are uncertainties with revenue, uncertainties with newsprint pricing and so forth, that you all know very well about.

But, again, the great "aha" for us, in having many of these under our belts at this point, is that they can actually be positive contributors to margin.

Okay.

And then my final question.

Terry can you remind me how much of your carrier routes you currently own?

What percentage in St. Louis?

Just north of 70 percent, Michael.

There has not been a lot of activity in the course of the last 6, 9 months.

Again, as we mentioned, we think there may be some opportunities now.

Mike, this is Bob.

Just a quick comment on margins.

I think -- we hope we have been very clear about our objective in margins across the Company, both in St. Louis and PNI.

And as you know, there will be some ins and outs of this.

But, in the PNI group specifically, cash-flow margins are bumping up around 30 percent.

We believe we can get them to the mid-30s.

And we're pretty focused on doing that.

Great.

Thank very much.

Stacy Fleck, Merrill Lynch.

Just 2 quick questions for Alan.

What was the CapEx in the quarter, and the amount spent on acquisitions?

Stacy, let me -- on acquisitions, we haven't independently disclosed those amounts.

They are reasonably small.

CapEx was about -- a little over 1,000,000 for the quarter, and around 3 7 (sic) for the 6 months here to date.

So, what projects do you expect in the second half that's going to bring the CapEx (multiple speakers) in the 10 to $11 million range?

There is some continuing work in Tucson, and at the Post-Dispatch facilities, that will require some larger payments in the second half of a year.

It's -- based on the activity to date, it is logical to think that we will be towards the bottom end of that range.

Great.

Thank you.

There are no questions at this time. (Operator Instructions).

Sir, no one has joined the queue.

You may have your closing remarks at this time.

Okay, thank you Serena (ph).

Just before we go, I would just like to reinforce one central point.

I think we had a good quarter because of our ability to successfully execute on our core operating strategy.

We will continue to focus on that strategy to increase our audience reach and our share of advertising dollars in our markets.

We will continue to make investments that create value by strengthening our ability to grow revenue and earnings over the long-term.

We appreciate your time today and thank you for joining us.

We thank you very much for joining today's conference.

This concludes your presentation, and you may now disconnect.

Have a great day.