Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Michael Kupinski – Noble Financial.
Michael Kupinski – Noble Financial
We’re starting to see some cancellations of shows from the networks now and I was just wondering if you can give some insight about some of the strength and weaknesses you’re seeing with the CW Network? Then secondly, I was just wondering if terms of the SG&A expenses what are you anticipating that number, if you can kind of give me some guidance on that expense line going forward?
Douglas Gealy
The strength and weakness of the network Monday, basically Gossip Girl has grown incredibly this year Michael which is quite unusual. It kind of reminds me of Seventh Heaven when Jamie continued with that program after a weak first year performance. The launch of 90210 has gone over very well. Super Natural is performing very well. Where we’re having trouble candidly is on Friday where we’ve loss wrestling and they’re repurposing programming at some times due to the economy.
Then of course, the whole lease of the Sunday time slot to an outside studio has not gone too well. But, in general the performance and the branding of the CW has improved.
Michael Kupinski – Noble Financial
You’re not anticipating any particular cancellations of shows at this point from the CW?
Douglas Gealy
It’s interesting you asked me because I actually met with Elizabeth [inaudible] and Hal [Prodder] who run affiliate relations and at this point they’re saying no. There’s been some development that was stopped but there is a full season of Gossip Girl and I believe a full season of 90210 and One Tree Hill has really come back strong.
Thomas Allen
The question on the SG&A line, you saw in the third quarter obviously a slight decline in that number. The expenses that are in that line are pretty much obviously first of all, all the station level corporate is on a separate line so it’s basically our sales effort including staff and commission sales employees along with probably the next biggest piece of that which is Nielsen costs. Our Nielsen costs are pretty much fixed on long term contracts and our sales commission obviously are variable based on our revenues so to the extent we expect to see revenue declines in the fourth quarter or year-over-year which is safe to say we do then the sales commission line should be moving kind of in tandem with it.
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