SSP
#Yes, that's correct.
So when we announced the deal originally, <UNK>, we talked about $35 million between the two companies, us and JMG.
That ---+ those synergies will end up splitting about equally between the two businesses.
And some of those synergies, as I said, relate to some after-acquired provisions in contracts that came due in 2014.
And as we really sharpened our pencil and put these adjusted combined metrics together by quarter, we didn't feather those in in the prior periods, but again real money that we will have and that will realize in the forward period.
So we've included $10 million of the $16 million of those synergies in the historical adjusted combined numbers.
We finished our 2015 budget on a new Scripps basis and I am very confident we are going to at least achieve all those synergies that we have laid out.
I think we'll ---+ I feel very comfortable hitting it and I think there is a little bit we can do better than that.
We've sort of ---+ it's sort of taking lots of opportunities to improve efficiencies all the time, right.
And at some point, it gets a little squishy as to what is a synergy and what's not.
We are always driving efficiencies throughout our organizations.
I am sure our costs will go down because of that.
Whether we actually put it in the synergy box or not, I am confident we will continue to drive savings.
Hey, <UNK>; it's <UNK>.
I think our guidance is that we expect core business to be about flat in second quarter.
We see some movement around in the categories a little bit, as I ---+ we reported services had a terrific first quarter and I see this same trend in that continuing in second quarter.
Auto seems to be moving around a little bit from market to market, as I said in the comments here.
It's trending down right now, although we have an opportunity to right some points moving forward.
Retail has improved.
That's been nice.
I think some of our other top categories ---+ travel and leisure, food services ---+ are kind of tracking like first quarter.
So I think the things that we can control locally ---+ the home improvements, the services categories like that ---+ are having a lot of strength as we look at the quarter.
And I think some of the other more national-oriented categories seem to kind of be on pace with first quarter, but moving around a little bit.
Yes, I think that's certainly what we are expecting.
We [had] a significant amount of money in political last year, so that will open up, especially September and October and the beginning of November.
And I think we'll be able to take advantage of that open inventory.
As I said ---+ as we've kind of said in the past, we are spending a lot of time, like I think many others are, just kind of looking at all the greenfield report and all the stuff that the FCC is putting out.
And as a publicly-traded company, we have a responsibility to look at value creation on a market-by-market basis and some of the prices or some of the opportunities to see long term what's the best way for us to create value for the Company and for our shareholders.
We are big advocates that we think that there is a really good opportunity for broadcasters.
If we can transition to a greater standard, the ATSC 3.0 will give us a lot more opportunity to create businesses and build businesses off of our spectrum footprint.
But we're also kind of looking market by market.
And so, look, we've been in this since day one, <UNK>, as you know.
I expect we're going to be in this for the long haul.
But as we've shown in the past, we'll look at our assets and see what's the best value created for our owners and make decisions there.
So I don't think a lot has changed since last time we talked.
Hey, <UNK>; it's <UNK>.
I've got <UNK> here in the room and so if I say something wrong, he will kick me or if he needs to add anything.
Look, I think we had a really good first quarter.
As you saw, we outpaced many of our peers with a plus 5 ---+ I shouldn't say we ---+ Journal did, but our collection of assets now.
And a lot of that was driven by auto; very strong in first quarter.
I think my comments indicated that it's moderating a little bit, but I think a lot of our base is already laid in.
A lot of our sports franchises, the Brewers and other things, are laid in, and so with all that base laid in we do feel like flat is the right number.
<UNK>, anything else you want to add there.
Hi, <UNK>.
I won't kick <UNK> on my first call here with my new Scripps friends.
But Green Bay Packers in Q1 for us, that's a big deal in the radio group and so that was certainly a driver for Q1.
And Q2, <UNK> talks about some of the categories that are moderating a bit.
On the other hand, Brewers sales are meeting your expectations and then some.
So we think the flat call is a reasonable place to be right now for Q2.
Hey, <UNK>; it's <UNK>.
Look, integrating stations takes a long time.
The structural part we're well underway.
There is day-one integration, there is month one, and then there is year one and beyond.
And so mission accomplished on day one and month one, and now it's about just from a technical standpoint getting them set up, making sure that our sales structures, our sales visions our digital products are all aligned.
And so it's going to take us a little bit of time, especially on the digital front, to bring in some of those products.
We got some training on sales strategies and things like that.
But I think, really, we always look at integration as a 12-month process.
And especially with this company's focus on journalism and storytelling and really aligning our news organizations to really represent those communities, we think that takes a little bit of time and even some technology and training.
But we are going to be working awful hard.
As <UNK> said, we are very focused on 2016.
We think 2016 is going to be a tremendous year and our ability to integrate the new Florida and Nevada and Wisconsin stations, the additional station in Michigan where we know there will be great political, we have a tremendous urgency so we can take advantage of the political cycle next year with our new properties.
That's correct.
Sure, 84 million.
You know, <UNK>, hard to say.
I stopped betting on picking the winner of the Sweet 16 and figuring out what the FCC was going to do a long time ago.
We clearly believe that some new regulation as it results to ownership in all of media is something that needs to be addressed.
A lot of this is really antiquated and doesn't represent the way people are consuming media now and the opportunities to cover communities, but ---+.
So I can't handicap it, but obviously we are staying close to it.
And if there is an opportunity for change and our Company can benefit from that, we will certainly be looking at it.
Look, we are involved in a lot of organizations.
I'm on the executive committee at the NAB, on some of the affiliate boards, I've been working with others, so I think we are working with much of the industry to try and put our industry in the best position possible.
Hey, <UNK>.
Local is strong across, so I don't think I see any really variations by region on the local side.
The national is where there is wild swings, depending on market by market.
We had some markets that nationally were up and pretty healthy and we had other markets ---+ Detroit national was off over 20%.
San Diego was off over 20% as well.
And we had other big markets like Tampa and Indy that were more than double digits declines.
So those are ---+ as you can see, I just touched on four stations that are all over the country.
There is not a consistency of region, it really is by market.
We've really dug in hard to better understand what's going on there, and so to go against ---+ with the Olympics, some of those larger markets had a big influence of Olympic dollars last year and so that kind of lowers the base a little bit for the market this year.
Telecom moved around a lot last year.
A couple of the big players in telecom came in to markets and were aggressive and they have kind of been lighter this year.
I think some of it has to do with in media and telecom waiting to see what the FCC and the DOJ are going to approve, so they've backed off a little bit this year.
We also had over $1 million in first quarter last year in Obamacare money and Medicare money and so ---+ but that wasn't evenly distributed across markets, that was market specific.
And so in a market like Detroit there was a couple million dollars of Obamacare money in the market.
And so I think we've dug in.
We are not seeing any significant trend toward people moving to network, moving to cable, moving to digital.
We are seeing, on occasion, advertisers doing all those things, just like we pulled from all of those things as well.
But I would say it is more of a market-by-market issue than it is a geographic issue, <UNK>.
Yes, I think that was ---+ as we got to know Journal and their strategy, that was something that we got really comfortable with.
I think we've talked to you and everyone else in the past about our desire to be deeper in the markets that we are in.
Obviously we've got massive commitments with big buildings and hundreds of employees and towers and licenses and all that kind of stuff.
And a lot of our digital strategy has been around how do we get deeper in a market.
How do we extend our content further.
How do we create more new advertising streams.
Obviously, we've got thousands of advertiser relationships in every one of markets.
And so I think as we started looking at the opportunity to own three, four, five, six radio stations inside a market where we have TV, as well as all of our digital, our mobile, our social assets, I think it's something that we continue to be optimistic about the opportunity.
I've had the opportunity to visit all of the joint markets; I've seen the way they are integrating.
There is a lot of support across each other.
There is a lot of opportunity promotionally to lift up the platform.
Quite frankly, we think there is a whole lot more.
And so our ability to bring in our digital assets and our digital strategies as well as ---+ I think we're going to be a lot more creative and a lot more local and for some of those things that really I expect to create value on the audience side as well as on the advertiser side in those joint markets.
Okay, thanks, Tom.
I just wanted to remind everybody about our Investor Day in New York at the Warwick next Wednesday.
Send me an email if you need the details and we will hope to see you there.
Thanks, everyone.
Thanks, Tom.
