Ladies and gentlemen, thank you for standing by. Welcome to the second quarter earnings report conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Mr. Tim King. Please go ahead, sir.

Thank you, Roxanne, and good morning, everybody. We appreciate you joining us for this call. We're going to start this morning with Tim Stautberg, the senior vice president and chief financial officer. He'll discuss the second quarter financial and operational highlights. He'll cover some non-operating data, and then give you a little bit more color on trends for the benefit of your third quarter models. Then you'll hear from Rich Boehne, our president and CEO, who will provide some context as we look over the longer term horizon. Then of course, we'll open up the lines for a Q&A that will include Mark Contreras, who runs the newspaper division; Brian Lawlor, who's in charge of our TV stations; and, Doug Lyons, our controller. Now, the commentary you'll hear from our executives this morning may contain certain forward-looking statements. And actual results for future periods may differ from those predicted. On page 11 of the 2009 Form 10-K, you can read some of the factors that may cause the results to differ from what you're about to hear. And as a reminder, you can access a streaming audio replay of this call by going to scripps.com, and clicking on the Investor Relations link at the top of the page. It will be active later on this afternoon. And we'll keep it there for a couple of weeks. So with that, I'll turn it right over to Tim Stautberg.

Thanks, Tim, and good morning, everyone. It's a hopeful sign of the times that we felt a year-over-year consolidated revenue increase was noteworthy enough to be called out in the narrative of our earnings release. For decades, the only mystery in a media company's earnings report was the magnitude of the year-over-year revenue increase. But that changed with the onset of the current secular and cyclical challenges. We're still a long way from some of our businesses being as vibrant as we'd like them to be, but reason for optimism can be found at some of the numbers we released today. The positive news on revenue occurred despite the fact that we're not yet feeling the full effects of political advertising on our television stations. As you know, the heaviest political spending tends to fall between Labor Day and Election Day. And in the current environment, where no incumbent feels safe, it's reasonable during the third and fourth quarters to expect TV stations across the country, especially those like the Scripps stations that are positioned in battle-ground states, to have a very satisfying political season. Despite the absence of the full force of political advertising, our consolidated revenues in the June quarter increased more than 5%, compared with the second quarter last year. Our costs increased, too, but at the slower rate of 2.7%, excluding restructuring costs. Dramatic expense cuts implemented early last year helped our bottom line for the past four quarters. But our comparisons now include the effects of those cuts in the year-ago quarter, some of which were temporary in nature and are being restored this year. In the second quarter of 2010, for example, consolidated expenses increased due to, among other things, the resumption of normal marketing activities to support the May sweeps period at our…

Thanks, Tim. Thanks everybody for joining us this morning. As Tim said, we have a pretty good quarter and the outlook is improving. But the stronger operating results are only a piece of what we believe is a good story for all Scripps stakeholders. We plunged into 2010 determined to crank up cash flow from operations, and also to build our balance sheet into a strategic asset with which we can create and deliver value during this uncertain times. So we paid down debt rapidly. And we parted with a non-strategic asset, United Media Licensing, at an attractive price. Our plan worked. And as a result, in addition to better results from TV and newspapers, we now have no debt, no pension shortfall hanging over our head, and more than $2.50 in cash in the bank. But as we all know, financial flexibility and shareholder value are not necessarily one and the same. Our diligence and creativity over the past 18 months put Scripps in better shape than we could have imagined. Now, we must use to the economic benefit of our owners. This all came together rapidly and recently, so we're looking at a number of options. But I assure you that we're patient, discerning, and determined to deliver real value to our owners. In other words, the cash is not burning a hole in our pocket. It's not a war chest in search of a quick acquisition. Regardless of what we do in the short term to reflect a proper balance of cash, debt, and investment, over the long term, we intend to stay the course, seeking to build value by servicing physical communities and communities of interest with high quality news and information content and attractive marketplaces for advertisers who want to reach them. Despite the economic…

(Operator Instructions) Our first question comes from the line of Alexia Quadrani with J.P. Morgan. Please go ahead. Alexia Quadrani – J.P. Morgan: Hi. A couple of questions, first, Rich, if I could follow-up on your comments about the balance sheet and the cash on hand. Could you give us a little sense in terms of I think maybe what you or the Board are considering, what are the options, and maybe an idea of the timing?

Sure. We've said that we got $2.50 per share in cash in the bank today. And we're looking at a lot of options. I guess the one thing I would want to emphasize is, often, the times to monetize and build up your cash and the opportunities to invest don't necessarily perfectly align. So I think a little bit of patience is probably in order. We're discussing all the options that you would think of. But probably overall also, it's – probably in general more – a little more cushion, a little more financial flexibility is probably appropriate in these uncertain times. So the first and most important thing we did was make a big contribution to our pension plan at that time when it was tax advantaged, and got us back in great shape. And beyond that, Alexia, I just have to say, we're looking at all kinds of options. Alexia Quadrani – J.P. Morgan: Do you think your decision might be made by the end of the year?

Well, yes. I think we'll make a lot of decisions by the end of the year because we'd probably – probably could do a combination of things. We could buy stock. We can return cash. We can make some investments, although as I said, we are not necessarily or have not been in the market for big acquisitions within our current businesses. So regardless of what we do, I think some combinations are probably appropriate and be the result. Alexia Quadrani – J.P. Morgan: And then, just a couple of fundamental questions, first on the newspaper business, could you give us a sense of how newspapers revenue just generally progress as the quarter progress? Do they continue to improve at the quarter? I mean, was June a better month than I – early in the quarter? And the second question's still on newspapers, is really any color on the operations by regions.

We'll let Mark answer that, Alexia.

Sure, Alexia. Just generally in the second quarter, June was our best month in that quarter. And just to give you some flavor for the regionality – the regional performance, overall, we went from about 12% down for the division to 7.7%. But within regions, the strongest change, first quarter to second quarter, happened in Florida and California. And we have not seen that happen for several years, at least. Alexia Quadrani – J.P. Morgan: And should we assume July's facing well, relatively in line with June?

Too soon to tell, really. Alexia Quadrani – J.P. Morgan: Okay. And then, on the broadcasting side of the business, I think you outlined the pacing for the third quarter. But could you give us a sense of – I guess if you have any sense of what the core is pacing, your ex-political in Q3?

The quarter is pacing in line with our performance in the second quarter, the categories that we outlined that we had nice growth in. And second quarter remained consistent. Automotive had a great July. Retail and services both had double-digit increases. I expected auto to slow a bit off of that 84% in third quarter just we're going against the clunker comparison of last September. But the first two months of automotive are very strong in comparison. Alexia Quadrani – J.P. Morgan: Okay. Thank you very much.

Our next question comes from the line of Craig Huber with Access 342. Please go ahead. Craig Huber – Access 342: Yes. Good morning. Thank you. Concerning TV, the auto category, in the quarter, what percent of your TV station revenues came from the auto category?

That's a good question, Craig. Let me run a couple of numbers. And I'll jump back to you before we wrap up the call. Craig Huber – Access 342: Okay. And then also, if I could maybe talk – could you talk a little a bit the TV station costs or outlook here for third quarter? Can you just give us a little more flavor of what you – as you've done in the past or your current thoughts on your programming costs third quarter back half of the year going into next year?

Sure. I said that the auto represented just over 19% of our overall first quarter – second quarter revenue. And that includes political. So it's 19% of our total ad sales revenue. Craig Huber – Access 342: Okay.

And then, as it relates to third quarter, your question is, is it related to programming cost? Craig Huber – Access 342: Yes, programming costs, with details on the changes that we should know about there in the third quarter, fourth quarter, maybe going into next year as well.

Yes, I think our programming will – in terms of our syndicated programming, it's flat for last year's performance. We didn't have any real increases as it relates to programming on the syndicated side. Next year, we will have Oprah leaving four of our television stations. That'll happen in September. So we'll have a programming expense there based on the programming that will be replacing that. Our overall programming line has the same outline in the summary there. We are accruing some dollars for our ABC affiliation agreement. And that's hitting our programming line, so that throws an apples-to-apples comparison a little out of whack, but in terms of syndicated, no increase through the rest of this year. The big recapture comes in the second half of next year. Craig Huber – Access 342: Okay. Thanks for that. And then, if we can just jump over the newspaper side. Can you just update us on the quarter on where your advertising pricing is by category year-over-year for national cost-side retail?

Sure, Craig. This is Mark. And again, just a reminder that this is full run, which is a segment of our total ad revenue. You're not going to be able to take our total revenue in the back end of this easily. But retail for the quarter was down 3%. This is just full run rates. Classified, by category, auto down 2%, employment about flat, real estate down 2.6%, other classified down 8.6%, total classified down 4%, and then national down 5%. Craig Huber – Access 342: Maybe if you could just explain, if you would, that other – I know it's relatively small.

That's primarily foreclosures and legal notices. And we're seeing that category as the housing market from up is a bit diminished. We had a mini bubble in that category for about a year-and-a-half, two years. Craig Huber – Access 342: And then lastly, if I could, you had some comments about your California and Florida papers. Could you give us some detail on how the ad revenues there trended year-over-year, maybe in the month of June first out of the whole division did, or if you want to do the whole quarter, just give us some flavor?

I'll maybe stick, Craig, to the whole quarter. So if you took the whole division 7.7%, Florida did slightly on par, let's say. And California did a little worse. What I was talking about earlier is that first quarter to second quarter, they had the strongest improvements. So net-net, they're doing – they're finally starting to be on par as opposed to be outliers, which they had been for about a year-and-a-half, two years.

Hey, Craig. It's Brian. On the television side, we've got two stations in Florida, West Palm, and Tampa. West Palm is a great rebound story in terms of market recovery. It was actually the strongest market to recover in the second quarter with the total television market rebounding 27.8% within the quarter, which was pretty darn strong. As it relates to the Tampa market, it was up about 10%. It seems to be a little bit slower to bounce back. But the West Palm market is very strong, driven by heavy automotive and some pretty good political right now. Craig Huber – Access 342: Great. Thank you.

(Operator Instructions) We have a question from Edward Atorino with Benchmark. Please go ahead. Edward Atorino – Benchmark: Did you say $44 million political? Did I hear that right?

I think that's where we're forecasting. That was– Edward Atorino – Benchmark: Yes. What would the third quarter be seriously?

I think we're looking at a forecast – probably it's somewhere in the $50 million range. Edward Atorino – Benchmark: Other companies have said they're a little crowding out going on as the political money starts to pour in. What's been your experience in some of the dollars that are getting – if they are getting crowded out? Are they going into the post-election period in November, whatever that whole Election Day is or any spilling into 2011?

Yes. The scenario you just painted, Ed, is pretty normal. We do have a lot of pressure on our (inaudible) as it relates to the political. We certainly understand the cycle. And we work with our advertisers from early on. Some of the – we've spend a lot of time in the last 18 months developing small and new-to-television advertisers. The good news is we can still usually accommodate them in the political periods, politicians by the bigger prime, the higher price newscasts, and some of those new-to-television advertisers. So we're seeing a lot of success in our investments. We're able to accommodate in some day time areas and some lower price areas, where they try and build their brand around frequency. And so, I think we're still able to accommodate many of those. But we understand the cycle. We've lived through as have many of our core advertisers. And so, we worked to accommodate them in other areas. But there is, to some degree, displacement, but it typically bounces back the week in November. When the elections stop, those folks come back, obviously. They're gearing up for a holiday season and a strong year-end push. But I don't know how much of it. I think the biggest question is the first quarter of '11 because I think everyone understands the cycle. Edward Atorino – Benchmark: Yes. Looking at balance of the year, you just heading towards "flat", any guess whether you could get close to flat by the end of the year in the newspapers?

You mean on the revenues, Ed? Edward Atorino – Benchmark: Yes.

Yes, Ed. We're not forecasting that we're going to get to flat by the end of the year. It's just a very – we would just have little limited visibility between now and the fourth quarter. But I don't think we're going to end up hitting flat. Edward Atorino – Benchmark: Okay. Thank you.

Thanks, Ed.

Our last question comes from the line of Scott Davis with J.P. Morgan. Please go ahead. Scott Davis – J.P. Morgan: Yes, hi. Good morning. I have three questions, I guess, one is just following up on Ed's question about the crowding in political. It sounded like from your answer that you're expecting the crowding result in non-political maybe getting boosted after the political season in the first quarter. But I guess I'm curious because I heard other people argue that because political is going to be so tight, obviously, or create such a tight environment that some non-political advertisers are trying to get in early in advance of that. It doesn't sound like that's the experience that you're seeing. And then, I have two follow-ups.

No. I think that's, again, part of the way we work with our core advertisers, understanding the cycle, understanding the pressure of those – last two weeks of September, the first four weeks of October, and the first week of November. We do work with advertisers early. We're trying to accommodate them, understanding the pressure's there and the expectations by the SEC to accommodate several little candidates. We do look for day parts and to lay in a base with them, where we feel there'd be a level of protection. But you can't put on $15 million to $20 million from political in the quarter and not have pressure and have to work on accommodating your core advertises. But I think that that's part of our normal course of doing business, working with them early as we started late last year looking at the cycle of the year and trying to accommodate their schedules around the political weeks. Scott Davis – J.P. Morgan: Okay. And then, my two follow-ups were, are you using any spillover from national advertisers who are looking at the international spot market. I guess there're been some rumors Walmart might be an example of that. But are you seeing that or there are others? And then, my last question is you mentioned West Palm being very strong. Do you have the two-year comp or what it was down last year so I can understand in putting context to 27% or 28% growth this year?

Let me run the number on West Palm, as it relates national, yes, absolutely. Our national was up 32%, compared to our local up 13%. So we are seeing some national spill from the scattered market that's coming our way. Scott Davis – J.P. Morgan: Okay. Thank you.

You have a follow-up question from Craig Huber with Access 342. Please go ahead. Craig Huber – Access 342: Yes, just follow-up, please. Given all the talk in recent months of a potential double dip recession or it's just a significant slowing in the economy, I'd just be curious to hear your commentary as you talk to larger advertisers, how they're feeling here of the economy, what they're going to – how do they feel about spending in general – or about advertising, just spending in general out there, commentary there, both TV and the newspapers side? I'll relate it to – we have forecast this for the third quarter. But how has that may have changed over the last two to three or four months? Thanks.

Thanks, Craig. We'll let Mark talk about the newspapers first.

Well in general, Craig, the caution that I think everybody's feeling is being mirrored among both our big advertisers and our small ones. Our chunk of revenue – just as a reminder is that 80%-plus of our ad revenue based consists of small advertisers. And so, what we're subject to is a much greater degree of market-by-market effect. But on the larger ones that we've talked to, they're expressing caution as well. I hope that's helpful. Craig Huber – Access 342: Give us some more commentary on the TV side.

I'm sorry, I was working on those comp numbers there.

Advertisers seemed to be cautious or not cautious. Craig Huber – Access 342: Yes, just from a broad economic question if we get more–

What do we get from advertisers about their view of the economy?

I think they remain cautiously continue to do business on a little bit of a shorter cycle than we've done in the past. People used to be more comfortable laying in annual or quarterly commitments. They seem to be placing business a little bit later, often times, especially in the auto category, waiting to see how sales were the month before, and then that hand set to mouth – making the investment once they know what their sales were from the previous month. But obviously, from the results we just reported, retail is very strong and automotive separately is very strong. And so, I think the caution they have is warranted. But obviously, they're moving some product and continue to put a large portion of their ad budget since the television. Craig Huber – Access 342: You think that caution has increased here in less than two to three, or four months?

No, I don't think so. Craig Huber – Access 342: Okay. Thank you.

At this time, there are no other questions.

All right. Well I'd say we appreciate your help this morning. And thanks for all the folks on the call for joining us. We'll talk to you in three months.

Ladies and gentleman, this conference will be made available for replay after 11:00 a.m. today, running through August 16th, 2010 at midnight. You may access the AT&T executive playback service at any time by dialing 1-800-475-6701, and entering the access code 162775. International participants may dial 320-365-3844. Again, the numbers are 800-475-6701, international is 320-365-3844. And the access code is 162775. That does conclude our conference for today. Thank you for your participation and for using AT&T executive teleconference service. You may now disconnect.