Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Executives

Vincent L. Sadusky – President, Chief Executive Officer, Treasurer & Director

Bart W. Catalane – Chief Financial Officer & Senior Vice President

Scott M. Blumenthal – Executive Vice President of Television.

Analysts

Victor B. Miller - Bear Stearns & Co.

Marci Ryvicker - Wachovia Securities

Kit Spring - Stifel Nicolaus & Company, Inc.

[John Cornrich - Sandler]

[Shabib Sedoni] - Claren Road Asset Management

LIN TV Corp. (TVL) Q1 2008 Earnings Call May 8, 2008 8:30 AM ET

Operator

Welcome to LIN TV Corp's earnings call for the first quarter that ended March 31, 2008. (Operator Instructions) Before we introduce today's speakers I will read a brief legal statement from the company.

This conference call may include statements that constitute forward-looking statements particularly in the area described as business outlook but also including any other statements of future business prospects or financial results including but not limited to the use of words like believe, expect, estimate, project, or other similar expressions.

These forward-looking statements are subject to various risks, uncertainties and assumptions which may cause these expectations and assumptions not to occur and differ materially from those outcomes projected in the forward-looking statements. Such risks and uncertainties include but are not limited to the potential deterioration of national and/or local economies, global or local events that could disrupt TV broadcasting, softening of the domestic advertising market, further consolidation of national and local advertisers, and the national sales representation market.

Risks associated with acquisitions including integration of acquired businesses, changes in TV viewing patterns, ratings and commercial viewing measurement, the execution and timing of retransmission consent agreements relating to digital revenues, increases in news and syndicated programming costs, and capital expenditures, changes in television network affiliated agreements, changes in government regulation, competition, seasonality, restrictions on our operations as a result of our indebtedness, effects of complying with accounting standards, effects of our control of relationships including the control of HM Capital Partners LLC and its affiliates and other risks described in the company's Annual Report on Form 10K and other filings made with the Securities and Exchange Commission which are available on the company's web site www.LINTV.com in the Investor Relations section or at www.SEC.gov, which discussions are incorporated in the earnings press release by reference.

LIN TV takes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise unless otherwise required to by applicable law.

At this time I'll turn the call over to LIN TV's President & Chief Executive Officer, Vincent Sadusky.

Vincent L. Sadusky

Welcome to LIN TV's 2008 first quarter conference call. I'll start with an overview of our first quarter results as well as digital and interactive highlights, and then I'll provide some current trend observations. Scott Blumenthal, our Vice President of Television, will update you about station ratings and operations, and finally, Bart Catalane, our Senior Vice President & Chief Financial Officer, will provide first quarter financial information and close with our current 2008 business outlook. After that we'll be happy to take your questions.

Given the current economic slowdown we were pleased to grow net revenue by 1% in the first quarter of 2008. Included in this result, LIN TV's political revenues grew by $2.6 million or 432% and digital revenues increased by $2.4 million or 100% from the first quarter in 2007.

These factors together with $3.6 million of lower cash interest expense due to our debt reduction over the last year led to a $2.5 million increase in income from continuing operations. These are outstanding achievements for the company and highlight the strength of our local station's newscasts and our success in continuing to grow digital revenue streams. The current economic slowdown has impacted our markets.

As a result our local and national advertising revenues, excluding political, decreased 3% in the first quarter of 2008 compared to the same quarter last year. The impact was most significant in the housing, automotive, and retail segments. However, despite the core advertising revenue decline our results were better than our local markets and among the best in our industry as a result of continuing to grow share. Scott will talk more about the major drivers of that growth in a few moments.

As I mentioned during our last conference call our political revenues in the beginning of the year are motivated by market specific primaries and local races and issues. Several of our markets including Austin, Indianapolis, Providence, Green Bay, Dayton, Albuquerque, and New Haven have benefited from the presidential primaries and as a result, our political advertising revenues increased $2.6 million in the first quarter of 2008. We look forward to capitalizing on what should be a robust political advertising market over the next several quarters.

Looking forward, the current economic slowdown and poor condition of the debt markets have caused us to focus more than ever on operations. We were fortunate to have sold non-strategic assets over the past year and used the proceeds to pay down debt. Our response to the market slowdown has been to focus on the fundamentals of selling, increasing new business development efforts, and enhancing our training and communications.

Just two weeks ago we had a terrific local sales manager strategy session where we provided training and shared best practices centered around selling better, bringing new advertisers to TV, and providing our teams with the tools to help our advertisers make the right marketing decisions during these difficult times. We also held an Internet strategy session and as I looked around the room there were many new faces to LIN with an amazing amount of diverse interactive experience with TV, print and other media. Our goal is to emerge from the current economic cycle as a more focused and effective local sales and content media company and be the trusted marketing and sales advisor to businesses in our markets.

Based upon our early success in Q1 including increasing revenue shares and growth in our web revenue, it seems we are on track. We reviewed the last two recessions to better understand the impact on our business and we were reminded those ad revenue declines lasted three to four quarters. Ad revenue growth was very strong after periods following an economic recovery. Fortunately we believe our revenue will continue to grow in the second half of this year on the strength of political and Olympic advertising.

Now under the digital interactive summary, I'm pleased to report that our digital plan is on track and retransmission consent fees increased 119% in the first quarter in 2008 compared to the same quarter last year. The company reached five new agreements with its subscription television companies for both its analog and high definition channels in the first quarter including Cable One and Suddenlink. We also reached a note worthy retransmission agreement with DISH Network one of the nation's largest pay TV providers. That retrans agreement contains an important marketing and promotional partnership that offers substantial incentives for consumers to switch to DISH if our local stations are removed from a local cable system in any of our 17 markets.

LIN TV continues to make investments, build partnerships, and add depth to its interactive businesses. As a result LIN interactive has experienced outstanding growth. During the first quarter Internet advertising increased 71% versus the first quarter of 2007. Total page views for our station's web sites increased 39% and were 163 million in the first quarter of 2008 compared to 118 million in the first quarter of 2007. Unique visitors were 18 million in the first quarter of 2008 compared to 13 million in the first quarter of 2007 representing a 42% increase. Most impressively, time spent on our web sites increased 100% to an average of nearly 10 minutes per visit and our web sites had more than 10 million video impressions in the first quarter of 2008 alone.

Also in the first quarter LIN TV launched new political web sites in each of its 17 markets in advance of Super Tuesday's elections held on February 5. Politics.tv was designed to be a community hub and a primary resource for political news and in-depth coverage of local, regional and national political races and to provide viewers with the most complete non-partisan coverage of politics in their local markets.

LIN TV owns all of the Politics.tv domain names in each of the 50 states as well as the top DMAs and to date they have produced over one million page views. It is significant to mention that according to data released by Hitwise in April 2008 the majority of LIN TV's web sites are the top local television sites in their markets and many are the top visited local media sites. This is a major accomplishment and is a credit to our interactive team led by Rob Richter. Our goal is to become the number one media outlet in all of our markets.

In addition to our revenue and digital successes we also continue to reduce our debt and we paid down another $22.1 million during the first quarter. As a result our total debt net of cash at March 31, 2008 was $770.3 million which is $81.1 million less than the $851.4 million balance at March 31, 2007.

Before I hand it over to Scott I want to take a minute to emphasize why television is still the most effective advertising medium and has clear competitive advantages over every other media in this highly fragmented ad environment. Consumers spend nearly half of their media time watching TV, according to [Brolin] Schuler's 2007 communications industry forecast.

Last week alone broadcast delivered 97 of the top 100 prime time programs in households according to the TVB. While Internet advertising is extracting increasing shares of ad budget, broadcasters can capitalize on that better than any other media because growing demand for Internet video is a TV core competency. Despite the rise of online advertising TV is still the most important and complementary medium to Internet because TV survives brand awareness and generates greater reach and higher engagement which Internet frequency and immediacy can't capitalize on.

For example, in another recent survey conducted by TVB and Nielson Media Research 56% of adults ages 25 to 54 say broadcast TV is their first source for local weather, traffic and sports. The next highest medium was Internet at 15%. 83% of those adults who participated in the same survey said television was the most influential advertising medium with radio in second place and only 6% of adults citing that medium as the most influential.

After reviewing the results from the February sweeps I'm more convinced than ever about the value of our local newscasts. For example, largely as a result of the writers' strike our largest market affiliate WTNH in New Haven saw its 10:30 pm ratings decline 35% yet the 11:00 pm local news actually increased by 18%.

All of this data just continues to support what we know day in and day out from our customers which is that our television stations and advertising services provide results, and this is the case in a good or a bad economic market. But even more important, in tougher times when customers have to narrow their choices and allocate their budgets to the highest quality and proven media outlets which our stations represent.

With that I'll now turn it over to Scott who will give you a station's operations update.

Scott M. Blumenthal

Based on the market audits we've received to date for the first quarter of 2008 we're seeing a trend of revenue share gains from our television stations. This is not an easy accomplishment when an ad recession strikes and it affects all industries. However, we were able to realize this growth through strategic planning and maximizing the benefits of our strong local news and program offerings at all of our stations, particularly for our FOX affiliates.

Also during the first quarter our sales staff realized the benefits of a thorough retraining program that helped them maximize the new multiplatform advertising environment in which we now operate. They walked away fully energized with several creative and proactive business development initiatives that integrate on-air and online campaigns.

For example, we hosted several new business local business seminars at our stations that were relevant to the needs of the individual markets. At these events hundreds of clients were shown the realities of today's multi-platform environment and were taught specifically how their business could take advantage of these new opportunities to reach their customers.

In addition to this building of the best sales force we've also committed resources to expand local programming. For example, we've launched newscasts on KASA our FOX station in Albuquerque, WXSP our MyNetworkTV station in Grand Rapids, in addition to launching morning weekend newscasts on WLUK in Green Bay. These moves now resulted in 187 more hours of local programming in the fist quarter in just these three markets.

By increasing local program production that was specific to the needs and interests of each market effectively creating deeper local community connections we were able to minimize the effects of writers' strike on our big three affiliates while maximizing the uniqueness of our FOX affiliates in the first quarter. Furthermore we continued enhancing our duopolies identity which allowed us to further relate to the demographic orientation of those stations which are primarily FOXs, CWs, and MyNetworks. This approach improved our performance in a very difficult marketplace.

As Vincent mentioned our local and national advertising revenues were down 3% in the first quarter of 2008. The national spot market in particular continues to be volatile. Automotive, retail, services, restaurants, medical, education and groceries were all core advertising as core advertising's decreased in the first quarter. However, we are maximizing the benefits of political revenues and growth prospects continue to be good for media and telecommunications including wireless phone companies, cable and [tel] video, as well as financial services and health and beauty.

I am pleased to report that during February our ratings were excellent. LIN TV stations ranked number one or two for weekday sign on to sign off in 82% of our markets. Most of LIN TV's CBS, NBC, ABC and FOX stations were once again ranked number one for adults 18 to 49 and adults 25 to 54. The Nielson data also showed that we outperformed the national networks in the category of household share by an average of 32%. These are impressive ratings results, among the best in our industry, and with continued growth we believe we will emerge a stronger company when the economy improves.

To summarize, it was a solid quarter for LIN TV station operations. We've taken numerous measures to ensure we achieve growth during this industry-wide turndown and we believe our company is well positioned to take advantage of several opportunities in the remaining quarters of 2008 including strong advertising from a variety of political races and from the Olympics.

Now I'd like to hand it over to Bart who will discuss our first quarter financial performance.

Bart W. Catalane

Now for a summary of our first quarter 2008 results of operations. Also as a reminder these numbers reflect the results of Banks Broadcasting and our Puerto Rico operations as discontinued operations for all periods presented, and you can find comparable quarterly financial information and supplemental financial data on our web site.

So first, in terms of net revenues our actual net revenues were $93.1 million in the first quarter of ‘08, up $1.3 million or 1% from last year's $91.8 million. The major drivers of the increase were higher political advertising of $3.2 million in first quarter 2008 and that compares to $600,000 for the same non-election period last year. Also higher digital revenues including retransmission consent fees and Internet advertising revenues which increased $2.4 million or 100% to $4.9 million for the quarter.

Offsetting these increases were decreased local advertising revenues which were down 3% or $2 million gross and also decreased national advertising revenues which were also down 3% or $1.1 million gross. It's worth noting at this point that we were hit with approximately $2.6 million of advertising cancellations in the last five weeks of the quarter with most of these coming from national accounts and many of them in the automotive, paid, and direct response categories. We believe this is just another further indication of the weakening economies in a number of our markets.

Second, in terms of total station operating expenses which includes direct operating SG&A and program payment costs but excludes stock-based compensation, our actual expenses increased by $1.9 million or 3% to $65 million for the first quarter and that compares to $63.1 million for the first quarter last year.

The increase was primarily due to employee compensation and other operating cost increases and also reflects the company's investments in its Internet business with costs in this area increasing by $700,000 for first quarter 2008 versus first quarter 2007. As a result of these net revenue and station operating expense variances our actual broadcast cash flow or BCF for first quarter 2008 was down $700,000 or 2% to $28 million compared to $28.7 million last year. The decrease was primarily driven by the lower local and national advertising revenues.

Moving on to our corporate expenses and these exclude stock-based compensation as well, these increased by 100,000 or 2% to $4.2 million compared to last year's $4.1 million. The increase was also primarily due to employee compensation and other operating cost increases. As a result of the BCF and corporate expense variances the adjusted EBITDA for first quarter 2008 was down $800,000 or 3% to $23.8 million and that compares to $24.6 million last year. The decrease again was primarily driven by the lower local and national advertising revenues.

And lastly, free cash flow after debt service was $4 million in first quarter in 2008 and that was down $3.3 million or 45% from $7.3 million last year. The decrease was primarily driven by the impact of $6.1 million of quarterly principal amortization under our credit facility which began in the fourth quarter of 2007. This was partially offset by a $3.6 million reduction in our cash interest expense that Vince just mentioned that resulted from the pay down of our debt over the last year.

Once again, for those unfamiliar, we make available reconciliations of our operating loss, a GAAP measure to BCF, adjusted EBITDA, and free cash flow on our company's web site in the Supplemental Financial Data link. To access that information please go to LNTV.com where you'll find this information both on the home page and the latest news section and also in the investor relations section under financial reports and releases and quarterly and other reports.

Moving on to our balance sheet and other statistics, our total debt at March 31, 2008 was $812.2 million with $21.9 million of this balance classified as short term based on our projected quarterly principal amortization. We also paid off an additional $16 million of our term loan balance during the first quarter of 2008 from excess cash balances. Our average cash interest rate on our debt at March 31, 2008 was approximately 6%. Reflecting our continued positive cash flow trend in recent quarters, we had no amounts outstanding on our $275 million revolving credit facility at March 31, 2008 and our cash balances were $41.9 million.

Consolidated leverage at March 31, 2008 is defined under our senior credit facility was 6.3 times and that compares to 6.5 times at December 31 of 07. Our covenant at March 31, 2008 was $7.75 million and again this steps down as six times on October 1, 2008 and stays at that level through the remaining term of the facility which is November 4, 2011. As we have said several times on previous earnings calls our stated goal is to stay at least one turn below our covenant level for total leverage. Our cash interest coverage at March 31, 2008 was 2.4 times and that compares to our covenant of 2.0 and consolidated senior leverage at March 31, 2008 was 0.8 times compared to our covenant of 4.5 times.

One last item regarding our debt balances, we mentioned in our Press Release this morning that on April 14, 2008 the company provided notice of its holders of its 2.5% debentures but these holders have the right to require the company to purchase their debentures at 100% of the principal amount if the holder's written purchase notices are tendered to the trustee, that's Bank of New York, by close of business May 15, 2008. On May 16, 2008 the company's required to fund the purchase of the total amount of the debentures tendered.

In preparation for the funding on May 7, 2008 the company borrowed $115 million of its $275 million available revolving credit facility and will use these proceeds along with operating cash balances to fund the debenture purchases. There will be no impact on the company's consolidated leverage as a result of the drawdown and the borrowings under the revolving credit facility will bear interest at LIBOR at 1.38%. The company expects to use its cash flow generated from operations to continue to pay down its term loans and revolving credit balance under its credit facility. Lastly, at March 31, 2008 the company has approximately $270.4 million of federal net operating loss tax carry-forwards.

So finally moving on to our business outlook, again this information includes forward-looking statements and is subject to risks and uncertainties and anyone relying on this information should refer to the forward-looking statements heading in our press release and the item risk factors in the company's SEC filings. The company assumes no obligation to publicly update its business outlook or any forward-looking statements due to new information, future events or otherwise.

Based on current sales order pacings which reflect the challenging economic environment and market decline for both local and national advertising spending, the company currently expects its second quarter 2008 net revenues will increase in the range of 1% to 3% or $1.4 million to $3.4 million compared to reported net revenues of $101.8 million for second quarter 2007. All of this expected increase is attributable to projected political and digital revenue growth.

In addition, due to continued cost management actions the company also expects that its station direct operating and SG&A expenses will only increase in the range of 1% to 2% or $400,000 to $1.4 million for the second quarter of 2008 compared to reported expenses of $57.8 million for second quarter of 2007. So as a result we provided the expected ranges of revenue expense and cash flow items for second quarter 2008 and the 2008 year you saw in our press release this morning.

So with that we'll now be happy to answer any of your questions.

Question-and-Answer Session

Operator

(Operator Instructions) We'll go to Victor B. Miller – Bear Stearns & Co.

Victor B. Miller - Bear Stearns & Co.

Could you give a little bit more detail on the auto category specifically in first quarter and as you go into second quarter? Secondly, could you talk about where you are percentage wise against your goal of the retrans development which is a statistic you've been nice enough to provide us with every quarter? And then Bart for you, what's the average interest rate you're paying on your debt right now?

Vincent L. Sadusky

With regard to the auto category, the auto category has been a challenge. We were down in that category in total just over 5% for the quarter and it broke down that domestic was down the most was down close to 12% and foreign was down about 4%. With regard to the percentage of our retrans goal, by getting the DISH deal done and some of these other systems we're now well on our way and we're north of 50% coverage. And then as far as the last question, I'll let Bart go ahead and handle the average interest rate.

Bart W. Catalane

Victor our average interest rate is about 6% right now and that will go up a bit as obviously the 2.5% debentures are replaced by our revolving credit facility, but of course as we described this morning given where LIBOR is the borrowing rate of that incremental piece for the revolver should be around 4.5%.

Operator

We'll go next to Marci Ryvicker - Wachovia Securities.

Marci Ryvicker - Wachovia Securities

Can you remind us of the digital revenue break out, how much is retrans and how much is Internet? And then secondly, for Q2 has core growth decelerated from Q1? And, how are local and national doing? They were both pretty much on par for the first quarter. Have you seen a disparity there?

Vincent L. Sadusky

On the first part of the question Marci we've said previously of the digital revenue total, it's roughly one-third Internet and two-thirds retrans and that's a pretty good metric to use for now and going forward.

Marci Ryvicker - Wachovia Securities

I just wanted to make sure since you did sign a couple new agreements. And the core growth?

Scott M. Blumenthal

Core growth for second quarter we think is going to be very similar to what we saw in first quarter. There's not a lot of drivers in second quarter in terms of special events. Clearly as we hit political campaigns in third and Olympics in third we're going to see changes. Going back to your first question earlier about automotive we already have a lot of automotive orders in for Olympics which is traditionally something that will keep the category down but should help LIN in terms of its share of market in that category. But we don’t expect any major changes in second quarter from first.

Marci Ryvicker - Wachovia Securities

So local and national are still pretty much performing pretty similarly?

Scott M. Blumenthal

Yes.

Operator

We'll go next to Kit Spring - Stifel Nicolaus & Company, Inc.

Kit Springs - Stifel Nicolaus & Company, Inc.

Could you talk a little bit about how much impact you expect from the Olympics on a net basis? Obviously you benefit from the NBC agreements but maybe it's a pull from some of the other stations? And then what do you think about the digital TV transition next year? Do you see any impact of that on your business either on the cost line or a revenue impact?

Vincent L. Sadusky

On the Olympic revenue part, we have a lot more markets where we don't have NBC stations than markets where we do. We do get an incremental benefit because it has a tendency to pressure inventory especially in a year where we've got political as well. So, on an overall basis we do see a net benefit but the impact would certainly be much more significant if we had all NBCs.

On the DTV transition piece, it's going to be an interesting time in February. We could talk about it for a long time since we've obviously been actively involved in the transition for quite some time. I honestly believe that from a viewership perspective this is going to be largely a Y2K event. There is going to be so much in the way of public disclosure about this and conversation about this after the election. It's going to happen after the election. There's going to be a lot of inventory pressure through the election and after the election in December and January I think you're not going to be able to get out of the way of this thing.

The reality is close to 90% of the country have pay television in their homes so they will not be impacted, and for the others again I really think the campaigns to educate people at the supermarkets, providing the government coupons, by the time you get to February they will understand it.

And I think in a worst case scenario you'll have a few grandmothers out there that will wake up and not have their television working and they'll have a resolution within a few days. I do think it was important that we were able to work with Nielson to get February sweeps period moved to March because there could be several days of disruption and confusion that in the non-metered markets will have a tendency to cause people to perhaps not fill out the diaries as accurately as they could. I think as an industry we will be in very good shape come February and I'll set aside all the technical issues that have to take place in connection with the change over.

From a cost and a revenue perspective, having described what I think will happen with the ratings and that is not much impact, I don’t believe there will be much revenue impact especially given that buyers look at multiple books and so the same way the writers' strike for our local television was not a significant cause of the revenue performance, it's really the general economic conditions, I think you'll have that same scenario play out next February with revenue.

And on the cost side we will actually finally derive a benefit from switching over to digital because effectively we'll be turning off our analog transmitters that are very costly to operate, and for several years now we've had to run dual transmitter. In each one of our markets we are putting out both a digital and an analog signal at this moment, effectively if not doubling up having a significantly more amount of utility charge. So we will actually see a cost benefit from turning off our analog transmitters.

Operator

We'll go next to [John Cornrich - Sandler].

[John Cornrich - Sandler]

I can see that the amortization for program rights is running basically flat and I think the cash payment schedule is also. What's the outlook for that beyond 08? Is it still a flat outlook maybe for 09 or 10? You don't have to quantify it, but is it basically flat, up or down? That's the first question.

Vincent L. Sadusky

Going out into the future, our programming costs have been very stable over the course of several years. We don’t see significant increases in that line going into the future.

[John Cornrich - Sandler]

While that line might be flat, you're expenditures I take it for your so-called in-house programming basically news related could be going up though? Should be going up actually.

Vincent L. Sadusky

We have people costs associated with our internal productions and we have been increasing the amount of our local productions as well but as we produce more local programs it takes away a program that otherwise would have been purchased from a third party. We've been really active in figuring out ways to use technology especially in the news gathering area which is one of our most costly line items to use technology to basically enable our stations to produce more stories with fewer man hours at a lower cost. We're working that piece of the equation very, very hard.

[John Cornrich - Sandler]

Where is the company apples-to-apples headcount versus a year ago and where is it going?

Bart W. Catalane

Our big decrease was in 2007 where we were down from 2006 probably in the neighborhood of about 170 people.

[John Cornrich - Sandler]

What is that 170 people?

Bart W. Catalane

Out of roughly say, we were down 2,000 employees from the prior year from 2,200 employees.

[John Cornrich - Sandler]

About 8%.

Bart W. Catalane

Yes, about 8%. That number is really stable to slightly down even in 2008. So we're not really up headcount wise. Most of the people that have been added for Internet have come through attrition and other headcount savings, Vince just mentioned technology savings that we put in place, so that really hasn't been a net ad, it's been flat adding all the Internet folks.

Vincent L. Sadusky

Our goal as we've stated before is to continue to invest in this growing area as long as these digital revenues continue to grow the way they are, and we believe that they will, while at the same time taking those resources away from the traditional side but being smart about it; not doing across the board headcount reductions, doing it very strategically market-by-market, doing it through attrition, and using technology. Now we're getting to the point where you're getting higher up on the tree and it gets more challenging but we've done it in the past and we're going to continue that trend.

Operator

We'll go next to [Shabib Sedoni] - Claren Road Asset Management.

[Shabib Sedoni] - Claren Road Asset Management

I missed a little bit initially so this might be a little redundant and I apologize for that. You said your leverage currently was 6.3X. Could you provide the LTM number for that?

Bart W. Catalane

Our leverage at March 31 was 6.3 times, and what were you looking for?

[Shabib Sedoni] - Claren Road Asset Management

Just the LTM EBITDA number that you would use [inaudible]?

Scott M. Blumenthal

Yes, it's roughly 123.

[Shabib Sedoni] - Claren Road Asset Management

You said you would like your [inaudible] to stay about a turn under the covenant?

Bart W. Catalane

That is correct.

[Shabib Sedoni] - Claren Road Asset Management

That goes down to 6X come October 1, right?

Bart W. Catalane

That's correct.

[Shabib Sedoni] - Claren Road Asset Management

So taking it down basically a turn and a quarter from here on out, would that pretty much just be through the redemptions and dimensions that you talked about a little bit earlier?

Bart W. Catalane

No, it's through the political revenues and the other growth that Vince talked about earlier, digital revenues in particular.

[Shabib Sedoni] - Claren Road Asset Management

So you're just expecting to see the higher cash flow coming in?

Bart W. Catalane

Yes, in political years in particular that is absolutely the trend.

Operator

There are no other questions in the queue.

Vincent L. Sadusky

We appreciate everybody's support as always and we look forward to updating you throughout the year. Thank you very much.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: LIN TV Corp. Q1 2008 Earnings Call Transcript
This Transcript
All Transcripts