Q2 2022 Urban One Inc Earnings Call
Yeah.
Ladies and gentlemen, thank you for standing by and welcome to urban one's second quarter earnings call. During this conference urban one will be sharing forward looking statements regarding future events or its future performance urban one cautions you that certain factors, including risks and uncertainties.
Referred to in the 10, Ks and 10-Qs and other reports it periodically files with the Securities and Exchange Commission could cause the company's actual results to differ materially from those indicated by its projections or forward looking statements. This call will present information as of August 19, 2022. Please note that urban one disclaims any duty to update any forward looking.
Statements made with the presentation in this call urban one may also discuss some non-GAAP financial measures in talking about its performance.
The measures will be reconciled to GAAP either during the course of this call or in the company's press release, which can be found on its website at www Dot urban one dot com a replay of this conference will be available from 12 P. M. Eastern time today through August 12 at four P. M callers may access the replay.
System by dialing 818662 O seven one O four one international participants may dial four O 297, O O 847, and the access code being eight O 46193 access to live and a replay and a replay is available on urban one's corporate website at www.
That urban one dotcom.
The replay will be made available on the website for seven days after the call no other recordings or copies of this call are authorized or may be relied upon I'll now turn the call over to Alfred C. Liggins, Chief Executive Officer of urban one who is joined by Peter D. Thompson Chief Financial Officer. Please go ahead.
Operator also joining us today is Karen Wishart, our chief administrative officer, Kris Simpson, who is our general counsel and Jody drawer. He is the CFO of TV one.
The press release.
Is out with the results and you know my quote now it's.
Pretty consistent of what I'm going to say now is we're really happy about the strength of our business. We finished off Q2.
Now with a nice push revenues up 10, 4%.
EBITDA growth of 6%.
Even though.
We are seeing a slowdown in the radio.
Yes, our slowdown is not as significant as.
As I've heard some of the other companies.
Reporting and I still suspect expect not suspect I still expect that given our mix.
Assets T V. Our digital business is doing great that you'll see.
The positive revenue.
Growth for yeah.
For our company in Q3 political has been ahead of budget.
Don't know exactly where political and political is going to come in until we actually get.
Closer to it.
One of the things we're happy about is we're not seeing a lot of tight races tight races are good for us and in particular, we're seeing tight Jason.
Hi al.
Which historically.
S has leaned red but.
It's looking tighter we have a huge presence.
And Cleveland and Columbus.
And Cincinnati, and we think political is going to bode well for US we originally given guidance of $145 million to $150 million.
Of EBITDA, then we upgraded that said that we were got to it.
Exceed the high end of that guidance, we still fully expect to do that even with the looming slowdown.
And we got a lot of positive momentum across many.
Many of our different divisions in particular, we've got a great national effort going on out.
Out of our out of our radio.
And where we're taking advantage of the tailwind that the whole diversity and inclusion movement by advertisers.
That has been created and and we've got a great team that's executing on that so yeah. I think one of the things you are seeing in our business is that diner.
Dynamic that is in the marketplace and actually having the expertise and the soldiers too.
To execute that and bring that to fruition.
Our TV one upfront is a.
You're starting to wrap up and.
Yeah, I'll have a full report.
On that within the next two weeks and.
So far I'm very pleased with how that's going.
So I anticipate our momentum will continue through the balance of this year and actually spill into next year.
With that I haven't got a turnover the call to Peter Thompson. So he can go into the details on the numbers and then we'll come back with some Q&A afterwards.
Thank you Alfred.
Second quarter of 'twenty, two finished strongly with net revenues up.
Cross all operating segments and consolidated adjusted EBITDA up six 1% over prior year.
Consolidated adjusted EBITDA was $47 $5 million for the quarter up from $44 8 million in 2021, and also up from $39 $6 million and pre pandemic 2019.
Revenue was up by 10, 4% year over year for the quarter at approximately $119 8 million.
Net revenue for the radio segment increased by four 9% year over year.
According to Miller Kaplan local AD sales were up six 1% versus the market up six 2%.
<unk> sales were up three 6% against the market that was down three 3% and this was helped by a corporate sales effort and radio to Alfred just referenced.
Health care Entertainment services and auto categories.
<unk> had double digit increases over last year, while health telecommunications and financial had double digit decreases.
Overall, we outperformed the spot markets in which we operate by 230 basis points, but we like the market and digital network and NPR.
Q3, 22 radio revenue is currently pacing down two 3%, including political with July at minus 7% August minus 1% in September plus 6%.
Excluding political core radio revenue is pacing down four 4%.
A competitive political AD season could add a couple of points to that pace by the end of the quarter and as Alfred said given the mix of our other assets. We are currently forecasting consolidated net revenues up mid to high single digits for Q3.
Net revenue for reach media was $11 $1 million in the second quarter up 17, 8% over prior year revenue increase was due to strong demand and improved pricing biggest revenue increases were all in the morning, and also show and also Dl hugely show adjusted EBITDA in our REIT segment was up by 39% for the quarter.
However, we are seeing a slowdown for some major retailers in third quarter and also automakers as new car demand continues to exceed supply.
Net revenues for our digital segment increased by 18, 2% in Q2 to $17 9 million.
And I won't continues to see strong demand for digital across both direct and indirect and also audio streaming impressions were up double digits year over year adjusted EBITDA increased for the quarter by 16, 6% and demand continues to be strong for Q3.
We recognized approximately $53 $4 million of revenues from our cable television segment during the quarter, an increase of 10, 3%.
TV advertising revenue was up 26, 8%, excluding political with a favorable rate volume impact of $4 $5 million.
$300000 of free video on demand.
Increase for Cleo television revenues and.
Mm 300000 favorable you burn off a cable TV affiliate revenue was down four 2% with favorable rate increases and converting free subs to paying subs offset by churn and increased launch sport.
Cable subscribers with TV, one as measured by Nielsen finished Q2 at $45 million compared to $46 8 million at the end of Q1 and clear OTV had $41 3 million Nielsen subs.
We recorded approximately $2 $1 million of cost method income for our investment in the MGM National Harbor property for the quarter compared to $1 $9 million last year and $1 $7 million in 2019.
We have the option to put past 62 thirds percent stake and MGM National Harbor at seven times trailing EBITDA.
And that's currently valued at around $100 million based on publicly available information.
Operating expenses, excluding depreciation amortization impairments and stock based compensation increased to approximately $75 $2 million in Q2 compared to $67 2 million in Q2 of 2021 employee compensation increased by approximately $2 3 million.
Revenue variable expenses increased by $2 $3 million travel entertainment and office expenses increased by $1 $5 million outside services, including contract talent and consulting fees increased by $1 3 million marketing promotional and event spending increased by $1 million.
Operating expenses were up 14, 2%.
Expenses relating to the revenue increase such as sales commissions and bonuses were up and there was some modest increases in employee salaries travel and contract labor.
A large part of the increase here was for that investment and add production for some of the company's biggest cross platform clients. They're also nonrecurring credits in the prior year with exaggerated the year over year increase in expenses for the quarter reached.
<unk> operating expenses were up by four 6% comp costs were up slightly but expenses remained relatively flat otherwise.
<unk> expenses in the digital segment were up 16% driven predominantly by variable expenses related to traffic acquisition.
Sales and increased video production costs to support the revenue growth.
Cable TV expenses were up seven 4% year over year.
<unk> compensation.
We have promotions and travel and entertainment were up while its content amortization sales and marketing spend was roughly flat.
Operating expenses in the corporate and elimination segment were up by $1 2 million employee compensation and contract labor were up <unk> was up as well mainly due to return to the Companys annual sales leadership conference.
For the second quarter consolidated broadcast and digital operating income was approximately $55 $1 million an increase of 11, 2%.
During the quarter, the company repurchased $25 million of its.
2028 notes at an average price of approximately 91% of par.
Resulting in a net gain on retirement of debt of approximately $1 $9 million.
Approximately $732000 of accrued interest was paid on redemption.
Company's PPP loans and related accrued interest were forgiven during the quarter and recorded as other income in the amount of $7 6 million.
Interest expense was relatively flat at approximately $15 9 million for the second quarter.
We made cash interest payments of approximately $924000 in the quarter include any accrued interest on the retired notes.
The next semiannual debt service payment is due in Q3.
A noncash impairment of $4 3 million was recorded for our Atlanta market goodwill balance of $10 $7 million for Atlanta, Dallas, Houston, and Raleigh radio market broadcasting licenses and $1 $9 million for an asset sale consideration for one of our Indianapolis radio broadcast licenses.
Provision for income taxes was approximately $3 $7 million for the quarter. The company paid cash income taxes in the amount of $696000 net income was approximately $15 million or <unk> 30 per share compared to $17 9 million or <unk> 36 per share for the second quarter of 2021.
Sure.
Capital expenditures were approximately $2 3 million.
Company repurchased $4 million 665599 shares of class B common stock in the amount of $24 6 million.
And executed a stock vest tax repurchase of 16181 shares of class B common stock in the amount of $91000.
As of June 32002, the total gross debt was $800 million.
Our ending cash balance was $142 5 million, resulting in net debt of approximately $657 $5 million.
Compared to $164 $7 million of LTM reported adjusted EBITDA for total net leverage ratio of 399 times, which is the first time, we've dipped under.
<unk> X for very very long time.
Finally, let me address the other issue in the 8-K that we filed today.
Part of our second quarter impairment review the company performed an in depth reconciliation the assumptions.
He used by our expert third party valuation firms.
During the course of that review can be found a relatively small ore in the market revenue assumptions being used for Houston, and Dallas, which related to the double counting of revenues from the smallest staff. Hispanic broadcast in those markets. The net effect of this is that we should have recognized a noncash impairment charge of approximately $3 7 million relay.
To prior periods.
Given the non material size of noncash impact we recognized this charge as part of the current quarter noncash write down of $16 9 million and we will not be revising any of our P&L or balance sheet entries.
$13 $2 million balance of the impairment charges for the quarter resulted from higher interest rate assumptions and the valuation model.
We will be revising the controls sections of our 2021 10-K and our Q.
Q1, 2022 10-Q in the coming days to risks to reflect this control weakness. However, the company expects to fully remediate. This with the addition of some new control procedures during the third quarter.
The significant additional work performed on this issue by both the company and our auditors.
It means that we will need a few more days to file our second quarter Form 10-Q, Hence we will file a 14 day extension for that purpose.
We will wrap up this issue and file the Q by the end of this week.
With that I'll hand back to Alfred Thank you Peter.
Aye.
Okay.
Wanted to just also highlight.
I hadn't thought of Peter mentioned it.
Our investment in MGM National Harbor, which is fully invested and we do have an exit.
At seven times their cashed out.
They have been performing this year extraordinarily well and actually gaining yes.
<unk> market share.
In the Washington Metropolitan area They did.
A record number.
Gaming revenue in July I think they did like 77 almost $78 million.
Del <unk>.
Well north of $800 million.
Gaming revenue in.
In 2022, so that investment continues to.
It could be very strong for us and and Thats hidden value that is not reflected in.
And the companies.
Stock price valuation.
That continues to bode well so as we.
Reduce leverage and continue to build out.
Smart.
Yes.
<unk> M&A within our different dominant.
Business units like the Indianapolis deal that we're doing with emmis and consolidating there which should close by the end of August .
Sure.
Our launch of <unk>, a few years ago <unk> Tvs.
Fabs are getting actually very close to TV one subscriber.
Subscriber base I, just feel really good about where the business is that the team has done a great job. We've got a core group of committed people who've been here a long time know the business, yes, no the company and we're kind of firing on all.
All cylinders now so I want to thank the team for their efforts and want to thank our shareholders and our debtholders are being supported by robust through the throughout the years and we're going to continue to try to make everybody proud as we March.
Forward on our on our strategy and the execution of it with that operator, I'd love to ask you to open it up for Q&A.
Alright, Thank you, ladies and gentlemen, if you wish to ask a question. Please press. One then zero on your telephone keypad you may withdraw your question at any time by repeating the one zero command. If you are using a speakerphone. Please pick up the handset before pressing the numbers once again, if you'd like to ask a question. Please press. One then zero at this time.
And our first question comes from Kelly Chen from CQ S. Please go ahead.
Hi, guys. Thanks for taking my question.
Chip here.
How do you think I mean, it's great to hear that you guys are still expecting to exceed.
That guidance, even despite a weaker Q3.
Can you touch on how you think youre going to get there is that they're more costly is there a stronger than expected Q4 now.
And even our.
Our digital unit, our cable TV business is always pretty stable and pretty predictable you know you've got a long now.
AD buy cycle with upfront.
We've I just said that we've got.
Uh huh.
Have you been getting Cleo TV subscribers.
So with additional distribution that we've added.
Advertising CPM is going up demand, we think that TV one's business is going to continue to perform well digital is really.
We're doing a good job on the upside.
And the radio business.
As.
<unk> has slowed but I think everything else is going to offset it so.
Now.
Quite frankly, our ability to get to that number has got nothing to do with us cotton costs are doing.
<unk> anything extraordinary to.
Beat that guidance I, just think that the trajectory of our business.
Gotcha, that's good to hear and then also.
In the quarter. It seems like you guys bought back a decent amount of bonds and are you expecting to do more and you still have this $140 million. So yeah, yeah, we've got.
We've got two authorizations out there, we had a $25 million stock buyback authorization, which we pretty much exhausted, we had $50 million bond repurchase authorization.
We bought that $25 million going right into the blackout period.
Core earnings so I suspect will be.
Back now.
In the market looking to.
To retire bonds.
After after earnings so.
Yes, we're still focused on that.
Great. That's all cigarettes to here. So are you will that basically kind of cover.
They're expected to.
Then the rest of the cash or anything.
The incoming right now.
No I mean, we've got we got.
A number of different things that were.
We're looking at right now.
But I would say.
That we made the announcement I guess this is a big thing that we didn't talk about it.
We made the announcement that we are not going to pursue litigation.
In Richmond, and enrichment casino referendum, we haven't had it on the ballot for 2022 with a court order there is a state budget.
Amendment that sought to block that so therefore, you had competing laws yeah.
If you will and you had it had to be litigated, we werent going to be able to litigate it and get an answer in a timely fashion to be able to run a referendum. So.
We've been asked the city of Richmond to petition to get the corridor to unwind. It and then we're going to focus on trying to run this referendum in 'twenty three long story short, we wont be writing a.
100 plus million dollars check.
This year or early next year or so.
We're going to look and see how we redeploy that cash in.
And the most efficient ways and so there.
There is stuff moving around.
Right right right now, but yes sort of debt reduction and things of that nature are good uses of it it's going to increase our free cash flow.
And and so.
But we don't have a plan right. This second Oh. This is how we're going to spend $145 million, we're going to probably look at.
Each different opportunity and do a bit of each.
Gotcha. Thank you.
Youre welcome.
Thank you and now to line of Ben Briggs from Stone ex financial Please go ahead.
Yes.
Good evening guys. Thank you for taking the questions.
Congratulations congratulations on the quarter.
So two quick things from me here.
I was excited to see the $25 million of bond buyback.
And it's good to know that you still have $25 million more authorized.
Obviously, you've got a bunch of cash on the balance sheet right now.
Is there any thought being given to monetizing the MGM stake you guys said, it's worth about $100 million, because I mean that combined with the cash you have now could be a significant deleveraging opportunity or did you guys just like that free cash flow.
That provided.
We think about it.
Yeah once it hit seven X.
We think about it we look at it as we know we have that value. There. We know we can delever. We know we could use that money if we had.
We need a bunch of the Richmond casino.
Their cash flow their revenues and therefore their cash flows are going up again this year, so I want to wait and see.
And how it performs but yeah that that's on the table right now.
Highlighted it for a reason.
And that reason is that that wanted people notice that value continues to build I believe it's worth north of $100 million and they.
They're really crushing yeah, yeah that's.
That's on the table that there is no plan, yet and quite frankly, we won't make a decision until we know what their year end.
Our cash flow number is.
Okay. Okay, that's great color I appreciate that.
Then the second and probably the last thing for me is obviously you know inflation is the buzzword. These days I know the.
Main kind of inflationary pressure that you guys are probably going to field is from labor inflation.
Just give color on how that's impacting you.
For some reason you're insulated if you're feeling a lot of headwinds yeah.
Any color would be very helpful. I would say the number one way it's impacting US right now it is becoming increasingly harder to still positions yeah, so positions where.
We post something where we would have 15 resumes for years now we have to <unk> and.
And so yes.
Yeah.
We then actually giving people raises and bonuses for our core folks that were here.
Once we came out of the pandemic cuts.
Because we did okay. During the pandemic, we were able to kind of get people back on a real trajectory for income, but I think the biggest impact is trying to get new people into.
And two our work environment.
And it is again, we're finding it is competitive for you know for some of these I mean, obviously the people that are still here are.
Relative.
Relatively happy with their current economic.
The plant because they really have either negotiated something new or are there at the level. It's at.
It's the positions that arent fail that we're trying to figure out okay. Why aren't we getting more are we priced too low et cetera.
So that's what I've heard back from HR.
Is that it's just really hard to hire people right now yeah. So.
But we've got we've got.
Wage increases in bonuses and everything already baked into our operating budget. So I don't see inflation wage inflation impacting our results. This year. We may have some people that are a bit over work because we can't bring gallon higher.
Hire folks fast enough to to fill out the open positions but.
Yes, I don't see a big jump in costs.
Okay I appreciate that that's very helpful. That's it for me thanks, guys.
Thank you and now to line of Frank La <unk>, a private investor. Please go ahead.
Yeah. This is Frank was Rover, and Punta Gorda, Florida, as a broker for 40 years and they're yep.
But most of the questions on the call or you have been very very good about it.
But the question I have is that when.
When I called the company try to contact the Investor Relations person nobody ever returned my call because you ask for them.
Yeah.
While we don't have an investor relations person so that may be one of the reason I'm not what what line are you calling now.
Okay.
The main line that's on the on the Internet on the website.
Uh huh.
Look I can check that.
I'm not sure.
We'll check the website to see what's there and maybe theres a lap some acid returning.
But the calls from there and so we apologize.
Peter and I always try to be.
Accessible so let us do this let us check and see what's on the Internet and then let's see what kind of lapsed or issue we have.
With responding, but there shouldn't be any.
We are all hopeful you can also submit questions through the Investor Relations email, which is also on the website.
I think I've done balls and they are they've got no replenishment either.
But the real question is that as big as you are as a company Oh.
What would it be worthwhile to spend the money to our Investor relations person.
You know to be honest with you.
We.
Operated.
So accessible.
And to people. This is not also.
And we're not an industry right now that is really followed by research. So the investor relations people have generally.
Then focused on more of the institute for institutional investors and following and there's very few people who follow radio companies. If you will sell.
When we were trying to bail out a bunch of debt not go bankrupt like pretty much all of the other radio companies.
<unk> did an investor relations person definitely seemed like a luxury.
Well from my perspective, I think it's a the short sellers seem to be finding you're quite readily when the slides pop job. They find a reason to short yeah and they knocked the stock back down to where it is in.
You don't find a problem with them.
No because when the stock trades up as it does on irrational.
Speculation that momentum quite frankly, it shouldnt be there in the first place and I'd like now for our stock actually trade with some sort of rational valuation in my view and so I don't spend a bunch of time.
Worried about it.
Our class a stock is going to stay at 24 million.
Yes, sometimes they've traded as a means start and then other times right now theyre not trading as a means back in may.
And the family, we've been long term holders and buyers of the stock and yes.
We figure that if we.
Focus on performance.
And grow our cash flow and lower our debt and the stock price will take care of itself.
Alright, Thank you and now to send our Ara Dara Jin from L. A please go ahead.
Yes, hi.
Sundar weather either from Lord Abbott.
Thanks for taking my questions I just wanted to follow up on your Q3 guidance.
I think a previous caller.
Attributed some weakness in Q3, but if I heard you right did you say.
Up in the mid single digits for Q.
Three for revenue I was not sure if I missed something so would appreciate if you could.
Clarify that.
So from a contract comparison basis, how you would think margin should kind of.
Trend in Q3 based on that revenue guidance.
So I think you had two different things you heard us talk about radio.
Which is down two 3%.
Including including political and down four 4% excluding political.
So that was one thing and then we talked about the fact that Oh.
Other business segments wood.
Compensate for the softness there so overall.
I think you were referring to as we think consolidated net revenue will be up somewhere in the mid to high single digit.
Percentages for Q3 does that first part my sense, yes, yes. So.
So consolidated basis mid two.
High single digits, and that's year over year right.
Yes.
Yeah, and then from a margin from a margin standpoint.
So I don't think that Q3 margins are going to be as high as Q1, and Q2 that probably going to be low to mid thirty's, yeah somewhere in that.
Uh huh.
Area and there's a few reasons for that as we said.
Costs in that so you've got digital revenues growing quite strongly so the cost of acquiring those revenues is also going off right. So video production cost traffic acquisition costs content costs.
And then the other variable is T V, which can have fairly lumpy or more.
Programming costs. So those things are not really linear so hence I would think about it as a low to mid 30% margin somewhere in that range for the third quarter.
Got it and then I just kind of wanted to go back to your.
Cable TV advertising revenue is up 26% that seems to be pretty strong.
And I think you mentioned that ex political as well. So I was wondering if you could.
Could give some kind of granularity or color as to what's driving that growth.
Yeah, I mean, yeah.
There has been a real movement with advertisers to look.
For diverse content and diverse ownership now.
Named this company founded in 1980, so how does that make us.
We're 42 years old.
And we've had the same strategy for 42 years, and we've built that strategy out in radio and in TV and digital.
And so I would say that we've built a brand a serving the African American community and so and we built that we built good assets TV one's a.
Well distributed cable network Cleo is now well distributed cable network, so when advertisers actually waking up and saying I want to put more money against this demo I think we're benefiting from 42 years of brand building.
And now I'm committed to this space and it's coming through in our and our and our Adeline Yeah I mean, it's really.
It's really that simple our ratings are kind of holding in there yes.
We try not to have.
And adequate media vehicles are in adequate product. We don't you know, we don't show up with.
L. A website and say give me a bunch of money because when we build out a company that's got millions of users in 100 websites.
And best in class research and delivery and salespeople and add sales marketing we call. It interactive one and we come with a full solution and we're being rewarded for that you know so that's.
I'm proud that because by the way.
Seven years ago, six years ago five years ago, we had the same strategy, we're going after the same resources, but the particularly in digital but the advertiser response was not there.
At that level and today it is and so that's been that's been a big benefit from a support for us.
And then as you look forward you know how how much steam is there for this to continue to grow or do you think as comps get tougher you won't see that moderation.
That's a great question, we ask ourselves that all the time like how long will this diversity and inclusion.
Effort.
<unk> what I can tell you is it really started it started during the George Floyd.
Black lives matter.
Protests.
It probably got steam.
Going into the real head of steam going into the next year.
'twenty one.
Marketers like General Motors and Mcdonalds.
Procter <unk> gamble, there theyre talking about multi year commitments to get to a certain level.
So I suspect and again I'm no I'm not no pseudomonas right now.
I can't predict the future.
But I definitely see it continuing.
For their next.
At least the next two or three years, just because of the commitments that a lot of these big companies have verbally made publicly made yeah. So things.
Things can change Ceos change out and strategies.
Our strategy shifts strategies shift.
But I know what's happened in for 'twenty, three because we're feeling it right upfront.
For TV, one is almost done and so I know what that looks like.
So I think we are good for the next two or three years.
That's great I, just wanted to turn back into capital allocation. It will get to see that you bought back $25 million of debt.
And I would not I didnt catch some of the comments you said.
Activity in Q3, because you know 91 was a good price from your perspective I think.
Given the markets your debt's trading at an even more attractive price.
Greg did you say you have a 25 million authorization further out than that.
That's what that's what the board had authorized 50, we executed on 25, we got another 25 without going back to the board.
So as management sitting here.
As soon as tomorrow.
Opens up we have the ability to go in and take out another 25 without going back to our board. So.
And we like paying down debt.
Oh, that's what re bond investors like to hear as well, but.
And then finally.
Given the.
Daily or kind of postponement of your Richmond, Virginia decision.
And you know you have earmarked $100 million.
But you have not fully given up on that either so.
Where do you think.
Youre comfortable taking your cash balance down to either buybacks.
Buybacks are equity buybacks, yeah, I don't know and I hadn't really thought that out yeah. Because also there is M&A thing that we look at at any given time and but I don't know yeah.
Got it and any revisiting your leverage targets given the current.
The markets are a little bit different from them.
For credit markets are a lot tougher us I mean, our original leverage target was to get below four times, where they're now right now so I'd like to now.
Like to get it down further.
Alright, that's great to hear thank you.
Alright, and now we go to the line of Ross <unk> from Eaton Vance. Please go ahead.
Hey, great. Thanks for taking my call. So some of the other radio players have mentioned some weakness in government spending on the radio side.
I think you mentioned that last quarter I'm just wondering.
If you could comment on that this quarter I think that's one of your largest categories and then I'm curious too on the TV side if it.
What percent of your revenue it is and.
How it did in the quarter.
Yeah. So it's.
I'm looking at Q2.
Was our biggest category.
And it was it was down one 8% year over year, so so marginally down but still our biggest.
Our biggest category.
So it didn't.
Still I would say that it's still strong given its a.
For the quarter and radio was $7 $2 million so.
There were no big swings.
There were swings elsewhere, but not particularly in government public.
Got it and on the TV side.
Is it.
Large there as well.
Yes.
We don't get a whole long question.
I don't know if you have Jody say less than half a million dollars. So it's not it's not okay terrific thing for us on the TV side, Yeah got it and then just curious.
You said it was a strong finish in the quarter.
Can you give a sense of what it was by month I mean, I think some folks.
So weakness early and then it came back better it sounds like it was similar to you.
Well I don't know if you'd call my earlier comments.
Oh, no that was patients on this year, so I didn't get it.
I think you had it for the next.
<unk> for Q3 give me a second one if you give me a second I'll just pull up.
Q2.
Distant history.
Yeah, and I haven't gone back to them.
Yeah, So it's like.
April was up just under 5% May was up couple of percent.
In June was up three 7%.
Thank you very much.
Alright.
Thank you and now to line of John Marc Smith from Web of malls. Please go ahead.
Alright, guys. Thanks for taking my question I can assure me.
Yes.
Alright. So you guys are sitting on a bunch of cash right. Now do you have any plans to diversify from your radio and your TV business right now.
Yeah, we had one of those product casino one in Richmond, Virginia.
[laughter] and that kind of got Scott, we lost the referendum and so we're trying to get a second shot.
And if we're lucky we are.
We have been our diversification efforts had been.
Uh huh.
Yeah, we're focused on.
Sure.
Casino gaming, we're looking at some other things right now.
We don't yes, we've looked at broadcast television in the past haven't found anything that that made sense.
Yes, so we're continuing we're continuing to look yeah, I think that.
I think continuing to I've always like to look at the businesses, where I think our existing platform can help us be more successful in those businesses than we are somebody else might otherwise be and thats. How we ended up in the <unk>.
The different businesses that we are and we're continuing to do that also.
But then again.
I am excited about our Indianapolis.
I'm really excited about that.
Yeah, that's a that's a bit of diversity it's not.
Different business diversification, but its diversification of format is there a bunch of general market formats.
Versus our typical urban target format.
That strategy worked really well for us with the swap we did with Entercom, where we got bigger.
In Charlotte North Carolina.
In Charlotte we own the.
We've got the Big Conservative News talk radio station in that market and we just did the same thing in Indianapolis.
And I think we've got a business strategy how to make that mistake.
Successful and so we're constantly doing that because that diversification strategy is actually what really has saved the company.
Awesome. So can you guys just give me a really brief timeline of your future than like lets say that you get the casino you get you really diversifying to casinos what will you do after that then.
Oh gosh.
Yeah.
Yeah.
My goal is to continue to pay down debt.
Build value, meaning finding places, where you can invest $100 million and it's going to be worth $200 million. That's now.
It's how I like to look at businesses.
Have a low enough gap level and you can start to issue dividends to shareholders.
Now that's you know that's kind of ally.
You look at the future we've never been.
We've done we have sold stuff, we sold radio stations before I mean, I think we're now we're business people asset.
Asset has a price now.
But as an ultimate strategy, we've always felt comfortable that we have had a way to build value as opposed to just selling in and checking out.
And so I think that Thats still the case.
We like what we do.
We've proven to be decent at it and now we're going to continue to do it but.
Family owns half the company.
And so Cree.
Creating shareholder value is really important I know, creating shareholder values, what everybody says, but it's really important to me most people who say it don't really have like skin in the game.
Which is why we fought so hard to.
Dig out from under North of nine times debt that we had in 2010.
And so we're playing offense now and by the way I look at offense.
As also paying down debt at 85 that six months ago, if I wanted to pay it down was going to cost me 103.
Now that's all sounds to me that that's offense to me.
That's a risk free return of 11% just by.
Paying down debt.
Or are you pretty well answered my question. Thanks Nice quarter guys. Thank you. Thank you.
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Operator, thank you everybody.
The Investor from Florida, we will definitely check.
The Investor relations email and.
And the voice now we apologize for that thank you for support as we look forward to talking to you next quarter.
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