Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Edward Atorino - Benchmark.
Edward Atorino - The Benchmark Company
First of all, what was political in the second quarter of ?07? Number one. Number two: And looking at the cost space going forward, you said it’s not going to be quite as low as the second quarter but we would be down from last year, I would guess, the 111 in the third and 122 in the fourth; and then third, with the refinancing would your run rate on interest expense be around $18-20 million a quarter going forward or maybe less?
Dunia A. Shive
On the political, I believe, in the second quarter 2007 was $2.2 million.
Edward Atorino - The Benchmark Company
On the new cost space in operating expense. If you look at the second quarter, you said it may not be quite that low but would it be somewhere down from last year, 111, 122 by a few million dollars and 110, 115 a quarter?
Dennis A. Williamson
Well, we haven’t given any guidance on that, Ed, but we did have a $1.7 million credit in the third quarter of ?07, which will not repeat obviously. We really reduced expenses in almost all categories but we’re reluctant to just say exactly where they’re going to come out and we’re not providing guidance for third quarter. We had a good second quarter. We just don’t know where the third quarter’s going to end up.
On the refinancing, it’s a cash savings annually of $14.5 million. We’re roughly around $84 million. So, I think the run rate would be about $70 million for the year.
Edward Atorino - The Benchmark Company
That’s $10 million savings?
Dennis A. Williamson
After tax it’s about $8 million savings, after tax. We’re going from 8% down to about 3.2--
Edward Atorino - The Benchmark Company
And that would kick in, in the fourth quarter?
Dennis A. Williamson
In November. So, we’ll have two months.
Edward Atorino - The Benchmark Company
So, next year interest expense in the $70 million range?
Dennis A. Williamson
We have 10 months of that savings from this year.
Edward Atorino - The Benchmark Company
Yes, so $70 millionish.
Dennis A. Williamson
Well, wait a minute. No, not $70 million. It’ll be more like about $82 million. We’re about $94 million now, $95 million now. So, it’ll be about $80 million, not $70 million. I’ve misspoken.
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