Q2 2023 Saga Communications Inc Earnings Call

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Speaker 1: talking with you soon. Please hold the line and we'll be right back with you.

The line and we'll be right back with you.

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Speaker 2: The.

Uh huh.

Speaker 3: Good morning everybody and welcome to the Saga Communications Incorporated second quarter earnings release and concert.

Good morning, everybody and welcome to the Saga Communications incorporated second quarter earnings release and conference call.

Speaker 3: At this time, all participants have been placed on a listen-only mode. And it is now my pleasure to turn the floor over to your host, Mr. Chris Foggie of Saga Communications. Chris, the floor is yours.

At this time, all participants have been placed on a listen only mode and it is now my pleasure to turn the floor over to your house.

Mr. Chris Foggy of Saga Communications Chris.

Sure.

Speaker 4: Thank you, Jenny. And thanks to all of you on the call for your continued interest in Saga Communications.

Thank you Jenny.

And thanks to all of you on the call for your continued interest in Saga communications.

Speaker 4: Welcome to the 2023 second quarter conference call. I'm immediately going to turn it over to my partner in crime, Mr. Sam Bush.

Welcome to the 2023 second quarter conference call.

And immediately going to turn it over to my partner in crime Mr. Sam Bush.

Speaker 5: Thank you, Chris. Now, I'll start with the obligatory. This call will contain certain forward-looking statements about our future performance and results of operations that involve risks and uncertainties that are described in the risk factors section of our most recent Form 10-K .

Thank you Chris.

I'll start with the obligatory this call will contain certain forward looking statements about our future performance and results of operations that involve risks and uncertainties that are described in the risk factors section of our most recent Form 10-K.

Speaker 5: This call will also contain a discussion of certain non-GAAP financial measures. Reconciliation for all the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the selected financial data table.

This call will also contain a discussion of certain non-GAAP financial measures reconciliation for all the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the selected financial data tables.

Speaker 5: For the quarter into June 30th, 2023, net revenue decreased 2.2% to 29.2 million compared to 29.8 million last year.

For the quarter ended June 32023, net revenue decreased two 2% to $29 2 million compared to $29 8 million last year.

Speaker 5: It should be noted that political impact of this year's performance, as for the quarter, we had 108,000 in gross political revenue this year, compared to 787,000 for the same period last year. Without political, our overall revenue for the quarter would have been flat with last year.

It should be noted that political impacted this year's performance.

For the quarter, we had 108000 in gross political revenue this year compared to 787000 for the same period last year without political our overall revenue for the quarter would have been flat with last year state.

Speaker 5: Station operating expense increased 2.9 percent or $621,000 to $22.4 million for the three-month period.

Station operating expense increased two 9% or 621000 to $22 4 million for the three months period as discussed in the first quarter conference call. After a number of years of giving our employees a little to no compensation increases we made the strategic decision to give our remarkable staff pay increases in recognition of that.

Speaker 5: As discussed in the first quarter conference call, after a number of years of giving our employees little to no compensation increases, we made the strategic decision to give our remarkable staff pay increases in recognition of the tremendous work they do.

Tremendous work they do.

Speaker 5: These pay increases and related payroll taxes amounted to an estimated $446,000 in the first quarter as previously reported and $444,000 in the second quarter of this year.

These pay increases and related payroll taxes amounted to an estimated 446000 in the first quarter as previously reported and 444000 in the second quarter of this year.

Speaker 5: Similar to the first quarter, other smaller but still meaningful increases in our station operating expenses included increased utility expenses, music licensing fees, office maintenance and repairs, sales costs including commissions, and sales service.

Similar to the first quarter other smaller but still meaningful increases in our station operating expenses included increased utility expenses music license fees office maintenance and repairs sales costs, including commissions and sales surveys.

Speaker 5: For the six month period into June 30th, 2023, net revenue was down 0.6% to $54.5 million compared to $54.8 million last year. Adjusting for political for the six month period, gross revenue increased 0.7% for the six month.

For the six months period ended June 32023, net revenue was down 0.6% to $54 5 million compared to $54 8 million last year adjusting for political for the six months period gross revenue increased 0.7% for the six months period.

Speaker 5: Gross political revenue year to date was 301,000 for the six months. This year compared to 907,000 for the same period last year.

Political revenue year to date was 301000 for the six months this year compared to 907000 for the same period last year.

Speaker 5: Capital expenditures for the quarter into June 30th, 2023, were 1.3 million compared to 2.6 million for the same period last.

Capital expenditures for the quarter ended June 32023 for $1 3 million compared to $2 6 million for the same period last year.

Speaker 5: For the six month period, capital expenditures were $2.6 million this year compared to $3.6 million last year.

For the six months period capital expenditures were $2 6 million this year compared to $3 6 million last year.

Speaker 5: In last year's capital expenditures for the six month period, we included approximately 770,000 for the completion of the new studio building we built in Ocala floor.

Last year's capital expenditures for the six months period. We included approximately 770000 for the completion of the new studio building rebuilds in Ocala, Florida.

Speaker 5: We continue to expect to spend between five and five and a half million for capital expenditures during 2023. We continue to see nice growth in...

We continue to expect to spend between five and $5 5 million for capital expenditures during 2023.

We continue to see nice growth in National Interactive.

Speaker 5: and non-traditional revenue with them being up 12.1 percent.

And non traditional revenue with them being up 12, 1%.

Speaker 5: 17.3% and 10.4% respectively for the quarter, and 9.7%, 14.1%, and 13.5% for the six month period into June 30th, 2023. Chris will talk more about that in a little bit as well.

17, 3% and 10, 4%, respectively for the quarter and nine 7% 14, 1% and 13, 5% for the six months period ended June 32023, Chris will talk more about that in a little bit as well, we intend to continue to utilize our financial strength to strategically invest in our operations.

Speaker 5: We intend to continue to utilize our financial strength to strategically invest in our operations, both at a market and corporate level, as we work to grow specific revenue types, including local, national, interactive e-commerce and NTL.

Both at a market and corporate level as we work to grow specific revenue types, including local national Interactive E Commerce, and NTR and as I said, Chris will talk more about some of these early successes in a few minutes.

Speaker 5: And as I said, Chris will talk more about some of these early successes in a few minutes.

Speaker 5: Due to the SEC's renewed focus on the reporting of non- GAAP financial measures and their review of our filings, we have adjusted this quarter's press release to include a complete statement of cash flows as opposed to the abbreviated statement we historically have included on our

Due to the SEC's renewed focus on the reporting of non-GAAP financial measures and a review of our filings. We've adjusted this quarter's press release to include a complete statement of cash flows as opposed to the abbreviated statement. We historically have included on our Form 10-Q.

Speaker 5: We continue to include the reconciliation of GAAP operating income to station operating income, which is a non-GAAP measure, but now also include an other financial data table which allows the users of our press release filings to make direct comparisons to data reported in previous press releases and files.

We continue to include the reconciliation of GAAP operating income to station operating income, which is a non-GAAP measure, but now also include and other financial data table, which allows the users of our press release.

Fillings to make direct comparisons to data reported in previous press releases and filings.

Speaker 5: The company paid a 25 cent per share quarter we cash dividend on June 16th, 2023. We've now returned dividends of over 100 million to our shareholders since the first special dividend was paid in 2020.

The company paid a <unk> 25 per share quarterly cash dividend on June 16th 2023, We've now returned dividends of over $100 million to our shareholders. Since the first special dividend was paid in 2012.

Speaker 5: All said, we believe SOGA is in a strong financial position to continue to return value to our shareholders through our quarterly special and variable dividends.

All said, we believe sage is in a strong financial position to continue to return value to our shareholders through our quarterly special and variable dividends.

Speaker 5: special dividends declared in 2022. We're in line with the goal of maintaining our ongoing cash and short-term investment balances to between 30 and 35 million prior to future cash flows being recognized.

Special dividends declared in 2022 were in line with the goal of maintaining our ongoing cash and short term investment balances due between 30 and $35 million.

Prior to future cash flows being recognized the board continues to have discussions relative to the right level of cash to maintain on our balance sheet and this may change based on global national and local economic conditions changes in the radio industry and potential for strategic acquisitions.

Speaker 5: The board continues to have discussions relative to the right level of cash to maintain on our balance sheet and this may change based on global, national and local economic conditions. Changes in the radio industry and potential for strategic acquisition.

Speaker 5: The company's balance sheet reflects 34.4 million in cash and short-term investments as of June 30, 2023, and 38.3 million as of August 7, 2023. Facing for the third quarter continues to be variable, and I probably could say volatile as well because it seems like we look at it one week and it's up, doing better. One week it's down, doing worse, and it just keeps bouncing back.

The Companys balance sheet reflects $34 4 million in cash and short term investments as of June 32023, and $38 3 million as of August 7th 2023.

Facing for the third quarter continues to be variable and I, probably could see volatile as well because it seems like we look at it one week in.

It's up but doing better one week gets down doing worse and it just keeps bouncing back and forth.

Speaker 5: For the quarter, we are currently facing down low to mid-single digits. However, you have to keep in mind that we are comparing in the third and fourth quarter to last year's political revenue of $3.6 million for the entire year, and in particular, $900,000 in third quarter political revenue, and $1.8 million in fourth quarter political revenue last year.

For the quarter were currently pacing down low to mid single digits. However, you have to keep in mind that we are comparing in the third and fourth quarter to last year's political revenue of $3 6 million for the entire year and in particular 900000 in third quarter political revenue and $1 8 million in fourth quarter political revenue last year.

Here also.

Speaker 5: Also, the market continues to be an unsettled advertising market given the uncertain economy, the Fed's interest rate policy, and the ongoing inflation year.

Also.

The market continues to be an unsettled advertising market given the uncertain economy, the feds interest rate policy and the ongoing inflationary environment.

Speaker 5: We currently expect that our station operating expense will increase by approximately three and a half to four and a half percent for the year has compared to 2022. In addition to the inflationary environment, this is significantly driven by our investments and our staff, sales training, and ongoing interactive.

We currently expect that our station operating expense will increase by approximately $3 five to four 5% for the year as compared to 2022. In addition to the inflationary environment. This is significantly driven by our investments in our staff sales training and ongoing interactive development.

Speaker 5: Corporate General and Administrative Expense will decrease significantly from 2022, primarily because of expenses incurred as the result of Ed Christian's past.

Corporate general and administrative expense will decrease significantly from 2022, primarily because of expenses incurred as the result of Ed Christians passing.

Speaker 5: This reduction will be somewhat offset by an increase in directors fees and by investments we are making in corporate personnel that will be directly involved in growing specific revenue types as previously mentioned. We anticipate that the annual corporate general and administrative expense will be approximately 10.5 to 11 million for 2020.

This reduction will be somewhat offset by an increase in directors' fees and by investments we are making in corporate personnel that will be directly involved in growing specific revenue types. As previously mentioned, we anticipate that the annual corporate general and administrative expense will be approximately 10 $5 million to $11 million for 2023, our tax rate is.

Speaker 5: Our tax rate is expected to be 27 to 30 percent with a deferred tax of 5 to 8 percent going forward. And with that, I'll turn it back over to…

Expected to be 27% to 30% with a deferred tax of five eight or 528% going forward and with that I'll turn it back over to Chris.

Chris.

Speaker 4: Well thank you, Sam, and thank you all again for being on the call with us today.

Well, thank you Sam and thank you all again for being on the call with us today.

Speaker 4: You know, Sam, if I seem a bit giddy on the call today, it's only because we have now completed the process of building what I consider to be the very best leadership team I've ever been around. And Sam, it starts with you.

Sam if I seem a bit giddy on the call today is only because we have now completed the process of building up what I consider to be the very best leadership team I've ever been around.

And Sam it starts with you.

Speaker 4: and continues with what we call a SEAL team of elite leaders at the top from the corporate office standpoint like it indulges me for a moment. I'm on the names and names like Kathy Babinski or senior vice president and controller Wayne Lillen or senior vice president operations or vice president engineering Tom Hattkins.

And continues with what we call a seal team of elite leaders at the top.

From a corporate office standpoint like.

Indulge me for a moment I'm on a named some names like Kathy Babinski, our senior Vice President and controller.

Leland, our senior Vice President of operations, our Vice President of Engineering, Tommy Atkins, Our CMO, Eric Christian our CTO Tracy Cleveland.

Speaker 4: Our CMO error Christian, our CTO Tracy Clayton, our Vice President of Facilities A-

Our vice President facilities Angela parks.

Speaker 4: financial analyst and financial analyst Katie Semillan and Annette Calcutera of VP of HR. Along with a great group of corporate staff, GM and market employees who are all committed to the mission, frankly, it's very exciting.

Financial analysts and financial analysts can do $70 million.

And our net calcaterra, our VP of HR, along with a great group of corporate staff GM.

And market employees, who are all committed to the mission and frankly, its very exciting so.

Okay.

Speaker 4: There's a phrase that we shared with our leadership team over the years. It's been around for a few years at SAGA. And it has more context today.

Theres a phrase that we shared with our leadership team over the years.

It's been around for a few years at saga.

And it has more context today than ever before.

Speaker 4: If you've ever had any Latin in high school or college, you may be able to translate this. The phrase goes like this, Fine originet, or the end hangs on the beginning.

If you've ever had any Latin in high school or college, you may be able to translate this at the phrase goes like this for ne originate in that or the end hangs on the beginning.

Speaker 4: In other words, your actions today will impact your future outcome.

In other words your actions today will impact your future outcomes.

Speaker 4: That's how we've been behaving at Saga for about the last eight months or so, focusing on really three areas of opportunistic growth that we've talked about before. People, products, and perceptions. Not cost-cutting, consolidating markets, or offloading real estate.

That's how we've been behaving at saga for about the last eight months or so focusing on really three areas of opportunistic growth that we've talked about before people products and perceptions not cost cutting consolidating markets are offloading real estate.

Speaker 4: leaning into our economic headwinds and making investments, as I said in people, products and perceptions.

Leaning into our economic headwinds and making investments as I said in people products and perceptions. So when the clouds of this current economic climate clear.

Speaker 4: It's on the clouds of this current economic climate clear.

Speaker 4: We'll be able to emerge stronger, better trained with the head starting in the future. Again, the end hangs on the beginning for an original appendix.

You'll be able to emerge stronger better trained with a head start and in the future again the end hangs on the beginning for ne originate pindus.

Okay.

Speaker 4: And we did this not concerning ourselves with what our radio or audio brethren are doing, only on what we can control or at least impact.

And we did this not concerning ourselves with what our radio or audio Brethren are doing only on what we can control.

Or at least impact.

Speaker 4: A famous Michiganer, that's what they call people who live in Michigan, I guess. I've been here five years now and I've learned that.

A famous Michigander, that's what they call people, who live in Michigan, I guess I've been here five years, now and I've learned that.

Speaker 4: calls Michiganers. A famous Michiganer named Henry Ford once said about competitors.

Nicolas Michigander some favorite a famous michigander named Henry Ford one set about competitors.

Speaker 4: He said the competitor to be feared is the one who never bothers you at all.

You said the competitor to be feared as the one he never bothers you at all.

Speaker 4: that goes about making his or her own business better all the time

It goes about making his or her own business better all the time.

And that's what Sage is doing.

Speaker 4: As Sam said, Saga finished the second quarter, up significantly in several areas, some that aren't really generally seen as growth areas in Tade's environment. National of 12.1%, non-traditional revenue of 10.4%, and interactive up 17.3%. As you heard earlier, the growth is similar for the six-month period ending June 30th, 2023.

As Sam said Saga finished the second quarter up significantly in several areas. Some that arent really generally seen as growth areas in today's environment National up 12, 1% non traditional revenue up 10, 4% and interactive up 17, 3%.

As you heard earlier the growth is similar for the six month period ending June 32023.

Speaker 4: And you know the results of this Q2 and year-to-date earnings call as well as future earnings call.

And you know the results of this Q2 and year to date earnings call as well as future earnings calls.

Speaker 4: because everything to do with what we have implemented long before the Q2 earnings were released. We'd like to give you another.

Has everything to do with what we have implemented long before the Q2 earnings were released.

We'd like to give you an update and a reminder.

Speaker 4: of what we did several months back and how it's positively impacted our performance today.

What we did several months back and how it has positively impacted our performance today.

Speaker 4: And again, as you've heard me say before, this is all in the watermark of this statement. Money comes from customers.

And again as you've heard me say before this is all in the watermark of this statement money comes from customers.

Speaker 4: So the areas of focus and development include national. And previously, you know, in our company, national was largely looked at as transactional. Not a lot of support for our NSMs, perceived by many managers as a low cost per point business. Many of the market managers weren't really leaning into the effort, partially because they didn't really understand the benefits to them. And frankly, we at the corporate level perpetuated the idea that national wasn't all that important.

So the areas of focus in development include National and previously.

Yeah.

And our company large national was largely looked at as transactions not a lot of support from our rns Ams perceived by many managers as a low cost per point business. Many of the market managers really leaning into the effort, partially because they didn't really understand.

The benefits to them and frankly, we at the corporate level.

Perpetuated the idea that national wasn't all that important.

Speaker 4: In fact, as we said before, if you used a national business and treated it as a market, it would be our third largest net revenue-building market in the company.

The fact is again as we've said before if you used.

National business and treated as a market it would be our third largest net revenue building market in the company.

Speaker 4: And by the way, I mentioned earlier, we've been up in some areas that aren't traditionally up at this particular juncture and national revenue is up double digits for the quarter and for the six month period. Totally, a year over your increase of $450,000.

And by the way I mentioned earlier, we've been up in some areas that aren't traditionally.

Up at this particular juncture.

And national revenue.

Revenue was up double digits for the quarter and for the six month period.

Totaling a year over year increase of $450000.

Speaker 4: This is a direct result of us taking a local approach to selling and servicing our national business.

This is a direct result.

Of us taking a local approach to selling and servicing our national business.

Interactive.

Speaker 4: We haven't even gotten started in the interactive, and our interactive is double digits for the quarter, and for the six-month period, again, translating to a year-over-year lift of $535,000.

We haven't even gotten started in the interactive and our interactive is up double digits for the quarter and for the six month period again translating to a year over year lift of $535000.

Speaker 4: NTR also up double digits for Q2 and year-to-date and it's accounted for a $435,000 lift year-over-year.

NTR also up double digits for Q2 and year to date and it's accounted for.

435000 dollar lift year over year.

Yeah.

Speaker 4: e-commerce is another area where I mentioned their previous call that we've kind of gone back to the future.

E Commerce is another area, where I had mentioned in a previous call that we've kind of gone back to the future.

Speaker 4: We're picking up considerable steam each month there under the leadership of former and set rev founder Andrew Shultz. We've experienced 100% plus in year over year growth in certificate sales.

We're picking up considerable steam each month, there under the leadership of former insert Red founder Andrew Schultz, we've experienced 100% plus in year over year growth in certificates sales give you. An example in April how this thing is picking up momentum in April we were up 72% year over year in May we were up 104.

Speaker 4: Give you an example in April , how this thing is picking up momentum. In April , we were up 72% year over year. In May, we were up 105% year over year. In June , we were up 147% year over year. And in July , the pacing is up 179% year over year.

5% year over year in June were up 147% year over year and in July that pacing is up 179% year over year.

Speaker 4: The addition of Director of Storytelling and Mario Cristino is we effectively refer to him to assist us in creating better, more strategic campaigns and presentations for our customers. Your date we can directly attribute $420,000 to the work he has done in money that has come into the door. Not to mention the incillery benefit of being able to tell better stories and have better research.

The addition of director of storytelling, and Mario Christina as we affectionately refer to him to assist us in creating better more strategic campaigns and presentations for our customers.

Year to date, we can directly attribute $420000 to the work. He has done in money that has come into the door not to mention the ancillary benefit of being able to tell better stories and have better research.

In our markets.

Speaker 4: Remnant radio as sales is, you know, we've kind of begun to just dip our toe in this a little bit. This is a long-term process. But we're moving very slowly and deliberately in this area and we'll report on that at a later time. The addition of Pat Pax and our new Senior Vice President of Content, working with our program directors and on-air talent to be even more local and polished than we are currently. The coaching that Pat has provided and been able to provide to our markets is paying dividends already.

Remnant radio AD sales is we'd be kind of begun to just dip our toe in this a little bit. This is a long term process, but we're moving very slowly and deliberately in this area and we will report on that at a later time. The addition of Pat Paxton, our new senior Vice President of content working with their program directors and on air talent.

To be even more local and polished.

And we are currently the coaching that Pat has provided and been able to provide your markets is paying dividends already.

Speaker 4: And the form-facing position that we have taken in the financial markets through partnership with Noble Capital, Sam and I have been out on the road and will continue to be out on the road.

And the forward pacing position that we've taken in the financial markets through partnership with Noble capital, Sam and I have been out on the road and we will continue to be out on the road.

Speaker 4: presenting the saga story to new private and institutional investors.

Presenting the saga story to new private and institutional investors.

Speaker 4: These areas of focus have combined that I just mentioned to you to contribute 2.7 million in revenue for the six month period ending 6.30, 23.

These areas of focus have combined that I, just mentioned to you to contribute $2 7 million in revenue for the six months period, ending $630 23.

Speaker 4: At a time when local revenue was down for the same period, $1 million. That's not typical for a saga company.

At a time when local revenue was down for the same period $1 million.

That's not typical for a saga company.

And political was down $606000.

Speaker 4: And these initiatives didn't really get underway until mid-Q1 of 2023.

And these initiatives didn't really get underway until mid Q1 of 2023.

Speaker 4: So we've been running very fast and furious and we'll continue to do so.

So we've been running very fast and furious and we'll continue to do so.

Speaker 4: So in the economic period when some of the radio sector experienced double digit Q2 declines, SAGA was down 2.2 in net revenue for the quarter and SAGA was flat year to date if you minus political.

So any economic period, when some of the radio sector experienced double digit Q2 declines.

Saga was down 2.2 of net revenue for the quarter and saga was flat year to date, if you're minus political.

Speaker 4: And certainly would have been worse without the attention paid to people, products and perceptions.

And certainly would have been worse without the attention paid to people.

<unk> and perceptions.

Again, we did this at the beginning of the year.

Speaker 4: Again, we did this at the beginning of the year. What we believe to be necessary to ultimately be where we wanted to be today. Anyway, I'm DarrenRay from remember to self. And I would like to thank everyone who did this

What we believe to be necessary to ultimately be where we wanted to be today.

<unk>.

Speaker 4: Originette, Pendette, the end hangs on the beginning. So where would we be today? If we hadn't deployed these actions, I don't know, and I really don't want to define that. And again, as I mentioned earlier.

Originate dependent and hangs on the beginning.

So where would we be today, if we hadn't deployed these actions I don't know and I really don't want to find out.

And again as I mentioned earlier, we're just not finished yet.

Speaker 4: We continue to bolster our digital efforts. We're proud to announce and ever done so recently. The addition of our CRM Rumpel co-founder, Matt Bergoin, to the SOGA team is a Director of Innovation and Growth. Matt has been working with the SOGA markets as a consultant for well over a year and has joined SOGA as a permanent fixture.

We continue to bolster our digital efforts were proud to announce and have done so recently.

The addition of our of CRM Rumple cofounder met for going to the saga team as a director of innovation and growth.

Matt has been working with the saga markets as consultants for well over a year.

And as joint Saga as a permanent fixture now.

Speaker 4: Matt will work directly with our sellers and leadership team to teach and train best practices and tactics.

That will work directly with our sellers and leadership team to teach and train best practices and tactics.

Speaker 4: in order to extend our customers' reach, frequency, and results.

In order to extend our customers reach frequency and results.

Speaker 4: by using pure play combined with specific and complimentary digital solutions to promote consumers to do just a couple things. Click, visit, call, or search. Our customers business.

By using pure play combined with specific and complementary digital solutions to promote consumers to do just a couple of things click visit call our search our customers' businesses.

Speaker 4: This in addition to deploying digital only sellers into our markets is also underway.

This in addition to deploying digital only sellers into our markets is also underway.

Speaker 4: Finally, the future galvanized our digital efforts, and now maybe you see why I'm so excited on the call today, Sam, was many of you may have heard of Saga's homegrown online local news community service product. Metaphorically known as Clark Field Now.

Finally, the future galvanize, our digital efforts and now maybe you see why I'm. So excited on the call today. Sam was many of you may have heard of Sage homegrown online local news community service product metaphorically known as Clarksville now.

Speaker 4: We were delighted to announce Katie Gamble, who was the brainchild and creator of this product, has joined the corporate team as the director of online news brands from her post in Clarksville, Tennessee, where she served as president and general manager for Saga for the last 16 years.

We were delighted to announce Katie gamble.

The brainchild and creator of this product has joined the corporate team as the director of online news brands from her posts in Clarksville, Tennessee, where she served as president and general manager for Saga for the last 16 years.

Speaker 4: This tool will be and is being deployed in many of the saga markets going forward.

This too will be and is being deployed in many of the saga markets going forward.

Speaker 4: In fact, two of our newest sites have not yet gone live. Yet the major year-long sponsorships are already sold out.

In fact, two of our newest sites have not yet gone live.

Yet the major year long sponsorships are already sold out.

Speaker 4: There is clearly a demand for this product in the communities and we're far past due on getting busy. There is clearly a demand for this product in the communities and we're far past due on getting busy.

There's clearly a demand for this product in the communities and we are far past due on getting busy.

In this space.

Speaker 4: Currently looking for case replacement in Clarkson, Tennessee, so stay tuned for more of that. Sam, as you can see, we're pretty excited. We've got a lot going on and we will continue, as I said, to run very fast like our hairs on fire, but very purposely and with purpose and mission in mind. And we're excited to share that with you today. Both as a reminder, as an as and as an update to where we are today.

Currently currently looking for case replacement in Clarksville, Tennessee, So stay tuned for more of that.

Sam as you can see we're pretty excited we got a lot going on.

And we will continue as I said to run very fast like our hairs on fire, but very purposely and with purpose and mission in mind and we're excited to share that with you today, both as a reminder, isn't as and as an update to where we are today.

Speaker 4: So Sam, I'll turn it back to you. Thank you, Chris. And as you said, it's all in a fast and furious mode.

So Sam I'll turn it back to you. Thank.

Thank you, Chris and as you said, it's all in a fast and furious mode.

Speaker 4: everything's there. We did have a few questions come in today. The first one is about RHD stations as we call our translators and our Metro signals and so forth. But the question comes in that the company has a lot of HD only stations, HD2, HD3. Excuse me.

Everything's there we.

We did have a few questions come in today.

The first one.

It's about the our HD stations as we call our translators into our metro.

Metro signals and so forth, but the question comes in that the company has a lot of H D. Only stations HD to H D. Three.

Excuse me.

Speaker 4: Most of them, not in the question, but most of them associated with translators that we also have, which basically translators are miniature FM radio stations that cover the local market very well in the markets we use.

Most of them are not in the question, but most of them associated with translators that we also have which basically translators are miniature FM radio stations to cover the local market very well in the markets. We use them in but the question is are they were wondering what the economics of these stations are compared to our a M. S N stations.

Speaker 4: But the question is, they were wondering what the economics of these stations are compared to our AMFM stations. The type of information that they're looking for was, are these stations increasing listeners and engagement for us?

The type of information that they're looking for was are these stations, increasing listeners and engagement for us.

Speaker 4: There's the company promoting stations in a different way and what is the overall value of these stations?

Does the company promote these stations in a different way and what is the overall value of these stations to soccer.

Speaker 6: Sam, we could double team on this question if you'd like. The revenue really varies by market. Some of the HDs and translators will do more revenue than others. But we did create three in-house formats, Outlaw, Easy Favorites, and Pure Oldies. And they're used strategically to complement our existing full signal formats in those markets.

The same we could double team on this question if you'd like.

The revenue really varies by market.

Some of the H D as in translators will do more revenue than others.

But we did create three in house formats.

Outlaw easy favorites, and pure oldies and they're used strategically to complement our existing full signal formats in those markets.

Speaker 6: It also used to bolster our AM stations primarily with our NewsTalk format.

And also used to bolster our am stations, primarily with our news talk formats.

Speaker 6: So those are a couple things that might be helpful to the person posing a question. Sam, if you have anything else you want to add, please go ahead. Yeah, I was gonna say that to some degree, the interest in the translators, and the AMF and FMHD stations, which go along with them and expand what we're doing signal wise, really started to some extent in Asheville, North Carolina, with the river, which we were not able to have as many signals in the market as we wanted. So we created a signal in...

So those are a couple of things that might be helpful to the to the person posing the question Sandy do you have anything else you want to add. Please go ahead, yeah. It was going to say that the AR.

To some degree the interest in the translators.

And the a M F M H D stations, which go along with them and expand what we're doing signal wise really started to some extent in Asheville, North Carolina with the river, which we were not able to have as many signals in the market as we wanted so we created a a signal in there that would reach the market has done very very well for us over.

Speaker 4: there that would reach the market has done very very well for us over the years.

Speaker 4: And that led to, as you point out, the creation of the easy favorites, pure oldies and outlaw formats as an extension of our operations in many, many markets around the country where we operate. As Chris said, the economics are...

The years and that led to as you pointed out the creation of the easy favorites pure older and Atwal formats as an extension of our operations in many many markets around the country, where we operate.

As Chris said, the economics are varied in some cases, a simulcast to give us a bigger reach in some cases, they take a signal that is in a particular market and expand it to an adjacent market.

Speaker 4: In some cases, a simul cast to give us bigger reach. In some cases, they take a signal that is in a particular market and expand it to an adjacent market. In some cases, as Chris pointed out.

In some cases as Chris pointed out.

Speaker 4: It's a very good way to put an AM news talk or a successful AM station on an FM brand so that we can alleviate some of the concerns about what's going on with AM radio as we go forward. I think the biggest thing that Chris mentioned and I would just emphasize is it allows us to expand our coverage in a market to reach.

It's a very good way to be.

To put in a M news talk or a successful am station on an S. M brand. So that we can alleviate some of the concerns about what's going on with am radio as we go forward.

And I think the biggest thing that Chris mentioned and I would just emphasize is it allows us to fix.

Expand our coverage in a market to reach.

Speaker 4: listeners that may not have listened to our stations are to reach complimentary or provide complimentary stations to a listener who may want to listen to traditional country at some point, outlaw country at some point, or new country at some point. So it allows you to be more to the folks that are listening, give them more choice in the market but at the same time continue to be live.

Listeners that may not have listened to our stations are to reach a complementary or provide complementary stations to a listener who may want to listen to traditional country at some point outlaw country at some point.

Our new country at some point. So it allows you to be more to the folks that are listening give them more chokes of choice in the market, but at the same time continue to be live and local.

Speaker 6: One of the things I thought about Sam is the size of the markets that were in 250 watt translator really gives a full market signal in many of our markets. So you really, the listener can't really tell the difference between a full market signal and a 250 watt translator because of the size of the markets in the area of coverage within, I...

One other thing I thought about Sam is the size of the markets that we're in 250 watt translator.

It really gives a full market signals and many of our markets. So what you really the listener can't really tell the difference between a full market signal and a 250 watt translator because of the size of the markets in the in the area of coverage, we're able to too.

To achieve that.

Speaker 4: We did get a question from another long-term holder of soccer stock. And it talked about providing a breakdown of digital revenues, which I think we've done with the growth of what we're doing and where we are with those numbers and so forth, as well as what the growth was for Q2 in the digital. And as Chris pointed out, we're seeing a lot of good improvements there.

The we did get a question from another long term holder saga stock and it talked about providing a breakdown of digital revenues, which I think we've done with the growth of of what we're doing and where we are with those numbers and so forth as well as what the growth was for Q2 in the digital and as Chris pointed out we're seeing a lot of.

The good.

Good improvements there, but again, we feel like we're at the just out of the starting blocks and there's a.

Speaker 4: But again, we feel like we're at the, you know, just out of the starting blocks and there's another 90 yards in the 100 yard dash to run and we're still moving forward and we still are picking up speed. So I think you'll see a lot more than that. And we'll be reporting more on that as we go.

Another 90 yards and the Hunter dark days to run and we're still moving forward and we still are picking up speed. So I think you'll see a lot more than that and we'll be reporting more on that as we go forward.

Speaker 4: They also was a question about how Q3 is trending while I did a Q2. And I talked about the pacing being down right now in Q3 as low to mid-single digits.

So it was a question about how Q3 is trending relative to Q2 and I talked about the pacing being down right now in Q3.

As a as low to mid single digits pointed out again, the comparison to political that we need to take in mind and I would also say that we should also look and maybe Christian you can speak to this minute, but revenue comes in so much later now than it has for the last few years. So when we're looking at you know September now as the law.

Speaker 4: out again the comparison to political that we need to take in mind. And I would also say that we should also look and maybe Chris can speak to this minute, but revenue comes in so much later now and has for the last few years. So when we're looking at September now is the last month in the quarter that we'll have this year, it's really hard to tell what's going to look like yet because as we went into second quarter, we looked at certain months and they didn't look great. But by the time the quarter was over, they looked okay.

Last month in the quarter that we'll have this year, it's really hard to tell what September is going to look like yet because as we went into the second quarter, we looked at certain months and they don't look great, but by the time the quarter was over or they looked okay and I think that's something we got to keep in mind that you know that.

Speaker 4: And I think that's something we gotta keep in mind that old traditional broadcasting from 10 years ago where you looked at a quarter and knew where you were gonna finish before you went into it.

Old traditional broadcasting from 10 years ago, where you looked at the quarter and knew where you were going to finish before you went into it you really cant do that anymore and we do see some really good things as we get closer to the quarter's end.

Speaker 4: You really can't do that anymore and we do see some really good things as we get closer to the quarters in.

Speaker 6: Yeah, we would normally say we need to go into a month at about 90% of goal to have a shot. And it's the percentages have backed off from there. And the further you further you go out, the less reliable the pacing is.

Yeah, we would normally say, we need to go into a month and about 90% of a goal to tap a shot and it's the the percentages have backed off from there and the further you go out the.

The less reliable the pacing is.

So you're absolutely right.

Speaker 4: Well, I think that wraps it up as we've always encouraged. And Chris and I welcome if you have additional questions, if you have would like to get some more information on the questions we've answered or what we presented. We're here. Feel free to give us a...

Well I think that wraps it up as a as we've always encouraged and Christian I. Welcome. If you have additional questions. If you have we'd like to get some more information on the questions, we've answered or what we presented.

We're here feel free to give us a call.

Speaker 4: and Jenny I think we'll turn it back over to you and let you wrap up the session.

Jimmy I think we'll turn it back over to you and let you wrap up the session today.

Speaker 3: Thank you so much and thank you everybody. This does conclude today's conference. You may disconnect at this time. Thank you for your participation.

Thank you so much and thank you everybody. This does conclude today's conference you may disconnect at this time.

Your participation.

Thank you Jenny.

Okay.

Yeah.