Question-and-Answer Session
Thank you. Ladies and gentlemen if you would like to ask a question please press *1 on your touchtone telephone keypad at this time. If you are using a speakerphone we do ask that your mute function is turned off to allow your signal to reach our equipment.
Once again ladies and gentlemen please press *1 at this time for a question.
We’ll go first to John Janedis with Wachovia. Please go ahead.
Jaime Neuman – Wachovia Capital Markets
Hi. This is actually Jaime Neuman for John. Could you give us an update on how the selling of the SureWest] book in [Roseville] went relative to your expectations and how you see the year evolving given comments from others in the industry over the past few weeks?
Michael Reed
Sure. Jaime thanks for the question. Let me start by saying our directories revenue, which is our SureWest operation in Sacramento, California, represents about 2.4% of GateHouse total revenues so its specific performance is really not material to overall GateHouse performance. Having said that, our directories in Sacramento and specifically our [Roseville] book continue to perform well. The 2007 revenues for SureWest were up 4.4% in 2007 over 2006 and we see SureWest revenues and more specifically the [Roseville] book being up 1-2% in 2008 versus 2007 based on the recently completed canvass. The canvas was softer than we had originally anticipated going into it last April due to the economic factors across the country and more specifically in California but the opportunities we had with regard to that acquisition with regard to price increasing power, increasing the size of the sales force, better penetration rates with that increased sales force still allowed us to show growth. So we still remain enthusiastic about that business although our expectations are tempered a little bit.
Jamie Neuman – Wachovia Capital Markets
Okay. Given where the stock is trading what is your timing on the buy back? Do you have an annual target and what is your preference for buy back versus asset purchases?
Michael Reed
Thanks Jaime for that question. We maintain maximum flexibility with regard to the share buy back so that we can do it obviously accretively but also opportunistically. We have to be mindful of our capital and our liquidity position at all times, and we have to be mindful of the acquisition opportunities that come our way as well because those can be not only immediately accretive but also assets that can grow for years to come adding to future years.
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