Question-and-Answer Session
Operator
(Operator instructions) We'll take as many questions as time permits and we ask that you please limit your questions to one. (Operator instructions) And we'll go – and we'll go first to Marci Ryvicker with Wachovia Wells Fargo.
Tim Schlock – Wachovia Wells Fargo
Good morning, this is actually Tim Schlock for Marci, I just got a couple of quick questions. The first one, have you guys seen the level of cancellations increasing and have you increased your bad debt at all? And then the second one is, were you hearing from advertisers with regard to how they are looking at 2009 and where they plan on spending their money?
Vincent Sadusky
I think on the – on the bad debt piece of it, we have this part of our plan for 2009, we have significantly increased our bad debt expense, just assuming that was a prudent thing to do given where the economy is at. We feel very comfortable with the level of bad debt that we've budgeted for 2009.
With regard to where they are putting their money, we have actually spent some time over the last couple of weeks with our advertisers out on the field, some of our largest advertisers. And it's interesting, they – of course, the absolute number of ad dollars have been significantly reduced in concert with this recession. But the folks I've spoken with have cut back on their advertising on many mediums but have kept their allocable share to television. And actually in most cases, most of the folks I've spoken with they've actually increased their amount of television advertising budget as a percentage of their total budget.
I've talked to auto dealers. I've talked to heads of agencies, retailers in our markets, and their ad budgets are largely television, a little bit of radio, and interactive as well. So it’s giving us comfort that in this worst of times, they are sticking with what works and disproportionately that's television and, also to a lesser extent, interactive as well.
Tim Schlock- Wachovia Wells Fargo
Okay, thank you very much.
Operator
And we'll go next to Avi Steiner with J.P. Morgan.
Avi Steiner – J.P. Morgan
Thanks a lot, guys. I'll ask one question with a couple of parts here if you don't mind. I missed this, but if you give us the pro forma revolver balance at the end of February, maybe where cash was post bond buybacks? Part two of that question, I think you said you planned on being on compliance for the full year, and I just want to make sure I heard that right. And I thought I heard Rich say that as a result of the actions, you're going to reduce leverage by about half a term from previous expectations. I don't want to misquote you. I'm trying to get a sense of where you thought you would end the year.
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