Question-and-Answer Session
Steve Fisher
I will serve as moderator. So this is a strange role for me, but – and I will actually directs the first question to myself. Bishop Cheen of Wachovia, and David Bank of RBC, Royal Bank of Canada, both had two questions on the leverage. David wanted to know if we had any leverage target levels. That question has come up in the past and the simple answer is, no. We are not chasing a certain debt rating, but obviously I think in light of the economy we are looking to reduce our leverage, and that is what you have seen the company through the steps I outlined earlier.
And the Bishop Cheen wanted to know about covenant languages defined in the credit agreement. Let me try and walk you, Bishop, through the mechanics here, I would direct you to our debt facility, which has been filed. So you will probably have a copy for those of you who want to see that. That was filed last summer or summer 2007. It was in section 101 on Page eight of our debt agreement that has been publicly filed.
David several questioners including Marci Ryvicker and several others have asked the question about quarter one pacings?
David Field
Look, you are all familiar with business conditions being pretty rough out there today, and we are essentially dealing with a client base, which has been disrupted by what is going on in the world. In the month of January, we were down 18% and I would also add that as we look forward in the year, we take – we have a certain degree of optimism on the second half of the year, when we will begin to comp against a significant deterioration that occurred last year, when a number of our core customers due to economic issues affecting their business began to reduce their demand on advertising.
So that is the way we look at it right now, again down 18 in January, and dealing with the obvious choppy climate that we all find ourselves.
Steve Fisher
This question comes from Fortress Investments [ph]. The company performed an impairment test in Q4. And I outlined that in my earlier notes. When is it due its next impairment test, and that test will be in the second quarter of 2009? Second quarter of 2009, then we would do another test most likely at year-end 2009?
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