Question-and-Answer Session
Operator
(Operator Instructions) We’ll pause for just a moment to compile the Q&A roster. (Operator Instructions) The first question comes from Victor Miller of Bear Stearns. Please go ahead.
Victor Miller – Bear Stearns
A couple questions, one can you talk about the infomercial revenue being up 30%? Is this a sign of like the block players walking away you’ve decided to go the infomercial route? The second one was do you have much flexibility on the expense side because it does seem like that’s an item that continues to go up at a low single to mid single digit rate despite the revenue line. Then, I have two follow ups that are balance sheet related.
Evan D. Masyr
Just to give a little bit of clarity on your first question Victor, the 30% increase in other revenue that included infomercials.
Victor Miller – Bear Stearns
Does that include infomercials?
Evan D. Masyr
It does include – it’s our other revenue kind of groups together so its infomercial, it’s event revenue, it’s just kind of everything else that doesn’t fall in the other buckets. So, yeah infomercial revenue has increased some but a lot of that increase is we had a few stations had events during the fourth quarter that they didn’t have in the fourth quarter the prior year so you see an increase in event revenue helping to drive that as well.
Edward G. Atsinger, III
I think Victor there’s also a little bit there, we don’t have situation where we see the block programmers walking way; to answer that part of your question. You always have a few changes and a bit of turnover but what typically happens is when the spot business declines and we’ve been hit hard with a lot of the mortgage brokers and a lot of the home improvement businesses when they decline these managers sort of turn to the infomercial area which they can integrate fairly readily into our block programming formats because they’re all long form talk programming. So, they have a bit of an ability to always turn to that source and expand it a bit so there’s probably a little bit of that at work but, I think for the most part most of that 30% represents events that we conducted in the fourth quarter of 07 that were not conducted in Q4 of 06. With regard to the other two questions and Eric or Evan maybe you’re better to opine on it, I’m trying to remember.
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