Q1 2021 Salem Media Group Inc Earnings Call
Mhm.
Yes.
Hum.
And then.
Ooh.
And.
And Oh.
Yeah.
Yes.
[music].
Greetings and welcome to the Salem Media Group first quarter 2021 earnings call at.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Please note that this conference is being recorded.
I'll now turn the conference over to your host Evan Maicer Executive Vice President and Chief Financial Officer. Thank you you may begin.
Welcome and thank you for joining us today and for Salem Media group's first quarter 2021 earnings call.
As a reminder, if you get disconnected at any time, you can dial back in or listen from our website at www Dot Salem media Dot com.
Joining me on the call today are Edward <unk>, Chief Executive Officer, David Centrella, President of broadcast media and David Evans, President of interactive and publishing.
We will begin and just a moment with our prepared remarks and once we are done the conference call operator will come back on the line to instruct you on how to submit questions.
Please be advised that statements made on this call that relate to future plans events financial results prospects or performance are forward looking statements as defined under the private Securities Litigation Reform Act of 1095.
Forward looking statements are based on currently available information.
Actual results may differ materially from those anticipated and reported results should not be considered an indication of future performance.
Do not intend and undertake no obligation to update our forward looking statements and forecasts of future performance and the.
The potential for growth of existing markets, the opening of new markets or the potential growth from future acquisitions.
This conference call also contains non-GAAP financial measures within the meaning of regulation G. Specifically station operating income or Soi.
EBITDA adjusted EBITDA and adjusted free cash flow.
In conformity with regulation G information required to accompany the disclosure of non-GAAP financial measures is available on the Investor Relations portion of the company's website at Salem media Dot com.
With that I will now turn the conference call over to Edward Ed. Thank you Evan and thanks to all of you for being on today's call.
I'm pleased to say that Salem's business continues to recover.
And the first quarter of 2021 was the best performing quarter, we've seen since the start of the pandemic.
And my prepared remarks, I'll focus on our Q1 financial results our continued growth in digital.
And and update our M&A.
I'll, then turn the call back to ebb and flow.
Provide more detail on Q1 financial performance and we will this year and give guidance for.
For Q2 level, and we'll do that and his closing remarks.
So and then for the first quarter of 2021, our total revenue increased by one 9%.
<unk> decreased by six 2%, resulting in net 131, 1% increase and adjusted EBITDA.
And I recognize the financial performance and the first quarter of last year included the impact of the beginning of the COVID-19 pandemic.
Specifically beginning on March 16, 2020.
And we started to see significant cancellations of AD revenue as businesses began to shut down.
And so you could dismiss the 131% growth and adjusted EBITDA was simply a comparison to a very low adjusted EBITDA in 2020, and there's some truth to that.
However, what makes the 2020, one adjusted EBITDA of $7 9 million a bit more noteworthy is the fact that it's actually 4% higher than the first quarter of 2019 adjusted EBITDA.
It's also worth mentioning that included Inc. First quarter expenses and expense item of approximately $700000.
This represents a onetime bonus we paid to our employees.
We decided to give back 25% of what our employees lost last year from the pay cuts that were made to.
Deal with the COVID-19 crisis.
And neither the economy and all of our businesses are back to where we'd like them to be we've made enough progress that we felt it was appropriate to show our appreciation to our employees for the tremendous work they've done and helping us to navigate through the COVID-19 crisis.
One area that is continuing to drive our success is the growth and our digital revenue.
And.
And our last call I discussed the recent launch of Salem podcast network that was launched with one podcast features of this initiative Sousa. Since then we've added podcast featuring Charlie Kirk and Todd Starnes.
And of course for many years, we had the podcast product from all of our syndicated nationally syndicated hosts and some of our local hosts as well.
Podcast revenue is ramping up nicely and we expect to continue to see revenue growth as we add more high profile personalities.
Our overall digital revenue increased 24, 6% to 16, 7% and Q1 and.
And total digital revenue represented 28, 1% of sales total revenue in Q1 2021.
Included in Q1 digital revenue as sales and podcast network Salem surround save them now or over the top streaming moving business that was launched in the second quarter of 2020 and of course, our National Digital Division.
Let's take a look at results by division to give you a little more perspective for.
For the first quarter of 2021 broadcast revenue decreased by two 5% when compared to the first quarter of 2020.
Remember that last year through two five months of the first quarter. There was no COVID-19 impact. This year. The economy continues to remain partially closed, particularly in states like California, which is one of the Salem and just wanted to sales the biggest radio markets and.
And you can see the impact when looking at broadcast revenue by month January broadcast revenue was down eight 1% compared to prior year February broadcast revenue was down five 9%, while and large broadcast revenue was actually up six 3%.
It's also worth noting that the two 5% decline and broadcast revenue compares quite favorably to the overall broadcast market, which was down 13, 6% and markets, where we operate according to Miller Kaplan.
Okay.
The strongest performing segment within our broadcast division was broadcast local digital revenue, which includes the new digital initiatives sales surround sound balance sheet and podcast network all of which are continuing to make substantial progress.
With a 64, 7% increase from first quarter local digital revenue.
Additionally, our national network revenue had another solid quarter with revenue up 11%.
This growth was driven by the addition of the Charles Kirk show, which was launched in October 2020 by increased affiliates to America vs Sebastian Gorka and grow.
And the affiliate list for Charlie curve.
Spot advertising revenue and total was down 18% with a 21, 7% decline and local advertising revenue and a seven 5% decline and national advertising revenue.
This again can be explained by the fact that the economy was.
Still completely opened in January February and the first half of March last year, but it is still not fully opened up.
And while it was still not fully opened up in Q1 and 2021.
You can see it in the monthly numbers with total spot revenue down 26, 3% and January 28% in February but up one 2% in March.
National Block programming was down four 8% and first quarter of 2021 as compared to first quarter of last year when.
And when the pandemic started a little over a year ago, we did have.
And a small number of cancellations primarily.
From organizations that are dependent upon live in person events to make up a significant portion.
Both their activities and their budget.
Expenses and the broadcast division were down 10, 7% due to reduced bad debt expense and lower employee related costs due to lower sales commissions from reduced sales salaries sales salaries savings from the layoffs that we made last year lot of reduced travel and entertainment costs and.
Some reduced healthcare craft our claims.
And our National Digital Division revenue was up five 7% driven by increases at Eagle financial publications.
Primarily in response to increased spending from marketing.
There were also increases in revenue at church products, which has seen an increase in demand for its videos with church closures and virtual services and also with the timing of Easter Easter affecting and a bit and net increases in Townhall VIP.
And all of the funds flow prescribed expenses and order that we can get the loans forgiven.
With respect to M&A, we've made a few interesting acquisitions to report and February 9th we entered into an agreement to acquire <unk> am radio stations and the San Francisco market for $600000.
And our history, it's been a rare opportunity for us to acquire radio stations that are already and our strategic former Hudson that we don't have to reformat with existing cash flow.
One of the AMC is in our foundational Christian teaching and talk format and the other one is in an urban gospel format.
This opportunistic acquisition will be immediately de levering, we expect to close this transaction during the second quarter.
And also on April 28, we acquired the centerline and new media domain and digital digital assets for $1 3 million and cash.
The digital content library will be operated within our church products Division.
With respect to sales on March 18th we closed on the sale of WK, ATM and Miami for $3 $5 million with this.
And with this disposition.
We've exited the Miami market.
Additionally on April 20th that we entered into agreement to sell singing News magazine and.
And the networks and the news radio from $127000 plus the deferred subscription liability of approximately $400000. We expect this to close later this month.
Finally on April 10th we entered into an agreement to sell approximately 34 acres of land and the Dallas Metro area for $12 $1 million, we will retain enough of the property and the southwest corner of the site to operate our stations there and.
Following the due diligence period and the satisfaction of several contingencies, but we fully expect to close this transaction and the early part of the third quarter.
I've mentioned.
And are exploring other opportunities in prior calls there are other real estate transactions under consideration that looked promising.
And I will certainly update you.
Are you at all.
On future calls and anything that anything that develops and that area.
So let me conclude my prepared remarks with some final thoughts.
<unk> and 'twenty was a very challenging year due to COVID-19, as a result, Salem mistaken significant financial person and significant financial hit that caused our leverage to increase from just over six immediately prior to COVID-19 to a high of almost nine.
But as a result of our unique features of our block programming business model and the significant growth of sales digital business, our losses were much less and most of that most if not all of our radio peers.
With the rollout of the vaccines and the reopening of the economy. Our financial results are bouncing back with terrific terrific financial results and Q1 2021, and as you will hear from Evan and just a moment encourage and guidance for Q2.
Add to this the $1 $2 million and forgivable, PPP loans and the Dallas land sales plus other land sales and we're working on and we own a clear path to getting our leverage significantly improved and very short order and we.
With that I'll turn the call back to Evan for additional details from towards performance and to give you guidance for Q2 and then.
Thank you Ed.
For the first quarter total revenue increased one 9% to $59 4 million.
Operating expenses on a recurring basis decreased six 2% to $51 4 million.
And which resulted in a 131, 1% increase and adjusted EBITDA to $7 9 million.
Net broadcast revenue decreased two 5% to $44 million and broadcast operating expenses.
Increased 10, 7% to $33 3 million.
Resulting in station operating income of $10 $7 million and increase of 36, 3%.
On a same station basis net broadcast revenue decreased one 9% to $43 $9 million and Soi increased 32, 1% to $10 9 million.
These same station results include broadcast revenue from 95 and are 98 radio stations and our network operations and represents 99, 7% of our net broadcast revenue.
And I'll briefly review our performance based on strategic formats 30.
<unk> 37 of our radio stations are programmed and what we call our foundational Christian teaching and talk format.
These stations contributed 38% of total broadcast revenue and decreased eight 4% for the quarter.
Our 32 news talk stations had a decrease of 11, 6% and revenue for the quarter. Overall. These stations contributed 17% of total broadcast revenue.
Revenue from our 12 contemporary Christian music stations contributed 16% of total broadcast revenue and decreased 10, 1% for the quarter.
Our network revenue increased 11.0% for the quarter and represents 11% of our total broadcast revenue.
Revenue from our National Digital Media Division increased five 7% to $9 6 million and represents 16% of total revenue.
Our publishing revenue increased 43, 4% to $5 7 million.
And represents 10% of our total revenue.
As of March 31, we had $216 $3 million and bonds outstanding and.
And nothing drawn on the revolver.
We have recorded the paycheck protection program or PPP loans of $11 $2 million as debt on the balance sheet and we'll continue to do so until forgiven by the SBA.
We also had $23 3 million and cash.
Our leverage ratio as defined by our credit agreements was 730.
If however, we net the cash we have on hand at March 31, and assume the SBA will forgive the PPP loans, our leverage ratio would be 619.
And now that the economy appears to have stabilized a bit more we feel comfortable resuming our practice of providing guidance.
For the second quarter of 2021, we are projecting total revenue to increase between 13% and 15% from second quarter 2020, total revenue of $52 9 million.
We are also projecting operating expenses before gains or losses on the sale or disposal of assets stock based compensation expense changes and the estimated fair value of contingent earn out consideration impairments depreciation expense and amortization expense to increase between 6% and 9% compared to second.
Quarter, 2020, non-GAAP operating expenses of $51 million.
This now concludes our prepared remarks, and we would like to answer any questions. So I'll turn it back over to the operations.
Thank you and ladies and gentlemen at this time, we will be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad.
A confirmation tone will indicate that your line is and the question queue.
You May press the Star key followed by the number two if you would like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys. Once again to ask a question at this time press star one on your telephone keypad, we will pause for a moment to pull for questions.
Okay.
And our first question comes from Lisa Springer with singular research. Please state your question.
Thank you.
My question concerns, it's kind of a general question about the broadcast portfolio.
Are you I'm wondering if there are certain geographic areas, where you would like to Edward stations, what's driving your decisions to acquire stations again.
Well with regard to the modest and vessel ready to San Francisco with a station that's in format and does the same thing that we do with our K facts, we have much more dominant there.
The owner.
Wanted to exit wanted to retire and they have been some health issues and it was low.
We were able to pick it up on a very very attractive basis. So that is immediately delevering.
And we can roll and we can tuck it into our our San Francisco operations, we have two other stations and three other stations there already so we will add those.
To that cluster and it's an easy tuck in very very little expense will.
And we will maintain the revenue. So we're not really there's not really a big expansion program that was just opportunistic and.
Tucking in and if you are going to recover your investment and a very short order, maybe a year year and a half.
To get enough profit the way, we will run at that covers the whole investment why.
Why not we would do that but typically right now we're being very prudent and we're concerned about leverage we want to continue to improve the balance sheet.
And we're not going to <unk>.
Policy right now is to focus on any acquisition that we might consider would have to be delevering or would have to have some extraordinary strategic importance.
I'm not really on and we're not really moving toward and expansion of our footprint.
Okay. Thank you very much.
Our next question comes from Michael Lupinski with Noble capital markets. Please state your question.
Thank you and congratulations on your quarter you guys.
So I know business models emerge and I know and I was wondering about your expansion plans and I know I asked this and last call about sales and now.
As well as its doing I was just wondering how you could expand maybe the original content and acquire content and just maybe how you envision this service growing and the future and then secondly regarding your Q2 guidance I was wondering if you can a little bit more color on.
Your broadcast division, whether or not you're anticipating political advertising and there.
Particularly because of.
Maybe the California recall I know you have some stations that might benefit from that as well just kind of give us your thoughts on political and maybe for going forward too.
So Michael with regards to sale them now, yes, we continue to.
And look for good solid content for Salem now sales now really consist of two categories of content and some is free.
And then other is Teva transactional video on demand content and so.
The free content things like the video version of that that Dinesh D'souza podcast soon to come to video version of the Charlie Kirk podcast and all whole lot of other free titles are there really to.
Provide impact and an entertainment and information for our listeners, but also then to attract people to the.
Paid content that we have and so we're spending a lot of time looking for the right content there.
To kind of be there Christian and our conservative conservative in nature, That's what Salem now is and Thats just kind of a driving past that we have every day now from that platform.
With regards to revenue political revenue.
I don't know that that's really driving our guidance as Gavin newsome recall and the potential.
Our election advertising there.
And I don't think Thats really a part of our guidance right now.
And that.
And we call with political.
Okay.
Michael you want to say that again.
Yes, Im sorry, I Didnt mean to overstock.
I was just wondering if you had thoughts on political and whether or not you think that you might see a benefit from the recall maybe in the fourth quarter I think so I think so but I don't think theyre going to stay and I haven't scheduled the recall election date and the consensus is that would probably be in November.
So it won't probably won't impact Q2.
Q3, and Q4, yes, I think we will see some impact.
Gotcha, and then in terms of your publishing side of the business.
As you look towards the balance of the year do you anticipate that can you just kind of give us a flavor of the titles and I'm sorry. If this question was already asked I kind of got on the low late.
But in terms of the number of titles coming into the fourth quarter I know, we're going to be heading into a political year. Just wanted to see if the pace of titles are going to pick up as we go into another election year.
So this year is a non election year.
And so.
It does.
Publishing business is always smaller and non election year and election, yes. So I can already say looking at that kind of book schedule. Looking ahead 2022 is going to be stronger in 2021.
And I think in 'twenty, two we'll probably see titles from David Limbaugh from Dinesh D'souza.
2021, if I look ahead, I think Hep C biggest titles this year will be the Senator Josh Holy book that we released a couple of days ago, and attorney and Big attack.
GAAP you'd top 10 on the Amazon and top 100 list. So got off to a great stops and then later and the yes, I think our biggest chocolate and the second half of the year will be Dennis Prager.
Due to raw hanmi.
FIFO common train, which is the third and a series.
Genesis and accidents, both performed extremely well.
That will be our strongest talking and the second half of the year.
Thank you and then last question I know that there was some thought about the prospect and maybe some of your talent picking up some of the spot that rush Limbaugh.
And I was just wondering have you seen some success and pick up and some of your conservative.
Talent radio hosts and so forth.
We have so far.
Michael.
C and the Charlie Kirk shown particular pickup.
A couple of strong.
A handful of new affiliates, most notably W ADC and New York.
Which picked up the Charlie Kirk share at least one hour of and that was really the debut radio station for Rush Limbaugh, So we see that as a.
And kind of a great a great opportunity for us. So we have seen some affiliate growth.
Since.
We expect to see more Michael we've got we've got two programs and that day part.
And we got the Dennis Prager show and the Charlie Kirk show and we launched Charlie Kurt.
And that day part because we saw.
It was likely that Russia would step down.
As his health deteriorated and.
And Fortunately and unfortunately that happens so we've got we offer two programs and that day part.
Premier, which syndicates to the Limbaugh show is still carrying the best of Limbaugh and.
They haven't decided yet and where theyre going to go I think when they decide where they're going to go.
More and more affiliates will then decide what they want to do but we've got a lot of interest and I will move on.
Already seen a number of.
New affiliates I expect we will see more.
And the next.
Over the next quarter or two.
Great. Thanks, that's all I have thank you.
Thank you and a reminder to the audience if you'd like to queue up for a question simply press star one on your telephone keypad and to remove yourself from Q you can press star two.
Our next question comes from Stephen Pfeifer with Wells Capital Management. Please state your question.
Hello, and thanks for taking the time to answer a question for me a couple of quick questions about the debt structure and I just wanted to make sure that I understand this new debt that you have on the $11 2 million on here that the pizza paycheck protection loans.
How do we.
However, the timing on this and when do we discover if this is something that you have to repay and when would you have to repay it and the interest. That's on there is I think I saw it written there was a 1% debt on there.
When do we discovered the resolution of this debt.
So first of all the loans themselves are five year loans with 1% interest.
We will after the <unk> Theres, a 24 week period from the time that you get the loan to spend the money in prescribed manner, which is generally for the most part payroll some utilities and other things, but we're going to be spending it on payroll then.
Probably in the third quarter, we will be submitting paperwork to the SBA.
To get the loans forgiven and I would expect by the fourth quarter sometime in the fourth quarter, we would have a better indication that the loans are forgiven or if they want more paperwork and might take a little longer than that but that's.
And that's kind of the timeframe, we're expecting at this point.
Is there any decision and the process on whether it will be forgiven if they decide that they will.
<unk>.
And the money was spent properly or not properly or they can change their mind and side now we don't see now give us the money back.
I'm not sure. They can say, whether you spent and accordingly are not I mean, we're going to.
I'll have records to show that every dime went to payroll. So I don't think thats going to be and issue. So our expectation at this point is that the loans will be forgiven and we're doing everything in.
And the <unk>.
And <unk> to make sure that we are able to get those forgiven.
Okay, that's great.
The next question and this is now that you have a significantly higher amount of cash than you normally do offer there.
One whats the timeframe for figuring out what to do with the extra cash.
Part of it is going to be when these loans are forgiven because we wanted to make sure that we do again everything in accordance with the law and to make sure that we spend money in the right manner.
I think when the loans are forgiven, we could look at things such as <unk>.
Potentially retiring more debt, but we're going to be cautious until that time.
Okay. So net.
And third quarter or fourth quarter would be the rough timeframe from deciding on whether to use the cash.
And as out of Russia and.
And what timeframe.
Correct.
Okay great.
And then the last thing is I'm up here in San Francisco and I, just wondering about the competition that you just picked up a couple of new stations and the area and the.
Our market and just coincidentally happened to notes and the review that at the exact same timeframes.
Picked up and station a brand new competitor to you appeared and the FM stations on there does this have any impact on you and competition lines different business.
And along those lines.
It won't be significant I am familiar with the with ESI and it's a class a and.
The programming, that's all and the state and we picked up has been stable its been on it for 2000 and almost 20 plus years, we don't really expect to see much change there the organization that bought that station.
I think they're out of Milwaukee, and they kind of have a different lineup and a different approach.
Okay.
Okay.
That could flow of questions from me. Thank you very much okay.
Thank you.
Thank you and our next question comes from Dorsey Gardner with Kelso management and please state your question.
Hi, Thanks for taking my question.
C U E.
Routine was at Riley for a shelf registration.
And.
Given the.
So if your stock is that a good thing to do at this point and time.
And that's my first question second question is it debt.
If you could talk about towers, a little bit as Aaron sorry.
And if a group of assets here.
Good day to borrow against or use at locations for cell towers, or whatever and I guess, if I could sneak in numbers and the third question.
40% of the.
People, who vote and America seem to be unhappy with the main street.
Media and.
You appear to be catering to a different group of people.
And some overlap but.
And.
If anybody went to business school and I'm sure there are people that we.
John.
And look at transportation and Youre, not and the railroad business year, and the transportation business and looking at things more broadly and then Ashish, let's say.
Town square sort of broken out more into.
And the digital media business and seems to have good growth prospects, there, but share somewhere you could sort of scope out something little bit different from what youre doing.
Anyway, sorry for all the questions, but thanks. Thanks.
Well with regard to the ATM filing.
And just add an abundance of caution we wouldnt, we wouldnt take advantage of and where the current stock price. We think the stock is way undervalued and.
And but it's there and if the stock price improves and if there were some needs that arose.
Some situations, where we needed to raise capital growth for leverage or whatever purpose. It's there it's very inexpensive to set it up and I don't really anticipate we have no plans to use it at this point and why not.
And expensive and it's there and if things improve dramatically and your stock price goes up to a point, where you might want to raise equity capital while it's there, but we have no plans to use and at this point.
And then with regard I'm trying to remember your second question.
Towers do you have a population of towers, there that might be something you can either borrow against it at a low rate or debt.
And you could.
Youll see locations and the permitting takes so long to get the tower appreciate your share.
Our business in particular, but.
Could you just pick up share.
Tower, they should probably really stupid idea.
And maybe if you could talk about that no no.
No it's not a stupid idea in fact, we've done it and a few places.
We've done it and Philadelphia and.
We explored it and I think have the option to do it and a site and Miami that we've retained after we sold the property there, but we retain the right to participate in.
And our cell location Youre right, it's easy to put up its very difficult to get permits to put towers up and if youre already and establish site. It's.
It's easier and so that is an area that we're looking at and have looked at and I think there probably will be opportunities, where we can take advantage of that opportunity.
I think I've mentioned and other calls we've reviewed all of our real estate holdings that we've had and where we have a real estate holding.
That can be that can have a dual purpose.
Or where we can relocate it to a less expensive piece of property and monetize that property at a higher level. We've looked at that in fact, that's what we're doing and that's what we're doing currently and Dallas that we talked about and we're exploring that across the whole.
The whole landscape of properties that we have we've got them all over the country. So no. It's not a stupid question, Paul and then.
And finally use.
You said a lot of voters are disillusioned I think you said with the current news we don't have much don't have much confidence and and I think that's true.
I think the audience.
We syndicate a lot of news, we are SRN news and we have townhall dot com <unk> dot com and.
And we got.
Nearly 2000 affiliates I think could take that content daily.
I think that our listeners have a high degree of confidence and our credibility and we're very careful and.
But so it is an opportunity.
Okay.
And another question can you just.
Digital radio radio where you can split and I guess you can you can write a different station.
The FM stations and so you split off.
Different.
Station from that and can you take advantage of that or is that relevant to your business and.
And and we do that that's HD radio and Thats the ability to.
Multi channel and so you can have and as example, 97, one a b C.
And and we do do that and some markets and.
And in markets, where we are broadcasting in HD typically will put our am radio stations on the FM band by putting them on the HD sub channels.
Okay.
And then just yet.
A meaningful opportunity for the business.
Hum.
Right now not so much the HD penetration is I think around 15% or 16% at this point and time and so it's good to have them because youre, putting an am station and the <unk> band and that's good but it does have somewhat limited reach at this point.
Okay I noticed it cars now have digital radio bands in them and.
And.
I would expect.
Increase your audience perhaps.
But that seems to be not it doesn't seem to be meaningful.
Companies that were probably not for you I don't know, but any comment.
And on that.
And that's where that's where the HD radio listening is taking place and cars thats, 95% of it is and cars.
And most of that.
And then penetration increases every year, you get a little more new cars come out more of and have that have that capability.
Okay, well, great wonderful answers. Thank you very much.
Thank you.
Thank you and then we have another question from Stephen and Pfeifer with Wells Capital Management. Please state your question.
Thank you sorry to bother you with one more question and I'll here, but I just wanted to get a little clarity. Please on your guidance you put out your revenue is pretty easy to get the 30% to 15% and the base revenue projected also but the expenses you are trying to have this guidance last year. Your second quarter. Your expenses were 53, almost $54 million, but I think I'm supposed to not project the growth off of that.
Number, but instead, a different number I'm trying to figure out what exciting zacks and expense number I'm supposed to be using here for projections. Please.
Well the guidance, we gave was 6% to 9% increase on 2000 Twenty's expenses.
It is in 2022nd quarter expense was $53 million $759.
I'm not sure what Youre looking at.
Our.
At 50.07, you may have depreciation and amortization and there I'm excluding that.
So minus DNA, so DNA does not okay perfect.
That is where I am.
Okay perfect. Thank you very much.
Welcome.
Thank you and there are no further questions at this time I'll turn the call back over to Mr. At singer for closing remarks. Thank you.
And again, thanks to all of you for joining US we'll look forward to visiting with you again, when we reported Q2 earnings.
Thank you. This concludes today's conference all parties may disconnect have a good evening.