Q3 2023 Beasley Broadcast Group Inc Earnings Call
Good morning, and welcome to Beasley broadcast group's third quarter 2023 conference call before proceeding I would like to emphasize that today's conference call and webcast will contain forward looking statements about our future performance or results of operations that involve risks and uncertainties described in the risk factors section of our most <unk>.
Recent annual report on Form 10-K, as supplemented by our quarterly reports on Form 10-Q.
Today's webcast will also contain a discussion of certain non-GAAP financial measures.
Many of item 10 of regulation S. K a reconciliation of these non-GAAP measures with their most directly comparable financial measures calculated and presented in accordance with GAAP can be found in this morning's news announcement and on the.
The company's website.
I'd also remind listeners that following its completion a replay of today's call can be accessed for five days on the company's website www Dot B B G I dot com.
You can also find a copy of today's press release on the investors and press room section of the site.
At this time I'd like to turn the conference over to your host Beasley broadcast group's CEO Caroline Beasley. Please go ahead.
Thank you very much and good morning, and welcome to our third quarter Conference call Marie Tedesco. Our CFO is with me just marking the third quarter saw continued softness in the advertising market with the cyclical offset a political which led to a five 8% revenue decline. However, excluding last years political revenue.
<unk> of approximately 1.8 million revenue was down three 2% or 2 million and on a constant on a quarterly digital revenue continued to show year over year for us and with our proactive expense management initiatives, we decreased our operating expenses by two 7% resulting in S.
Oh, I have 10 million and EBITDA of $5 5 million or down $2 3 million and $1 7 million respectively.
Overall revenue decreased five 8%, we saw increases in digital which was up nine 1% and network, increasing 35% with our consistent revenue growth and currently representing almost 19% of total revenue we are within a basis point.
I've, reaching the lower end of our call I'm, just real accounting for 20% to 30% of total revenue. The increase is from digital and network were offset by challenges in national which was down $2 6 million or 20% and down 8%, excluding political and local was also down.
One 6% the softness on the local side was a result of a soft local agency market, which was down four 7% and local direct market, which was down three 5% as a result of this softness we've re prioritized our efforts next quarter with a renewed focus on developing muscle.
Direct new business and as a result, local new business grew 22% $7 8 million up from $6 4 million in the prior year.
In the sports betting category, we recorded $3 7 million in the third quarter down two 6% from the prior year with sports betting representing 6% of total revenue sports betting was driven by increased spending in Boston, which generated $1 9 million this quarter versus 320.
5000 in the prior year, we expect sports betting in Boston to the increase in fourth quarter with increased Patriots Celtics and Bruins game.
These gains were offset by year over year decreases in Detroit, and Philadelphia now breaking down the corner total revenue trends July was down $4, 4.8% August was down five 1% in September showing a slight improvement declined two 3% at September <unk>.
Excluding political increased two 1% or by 530000, which reflected our focus on developing local direct business and how they point to note same station revenue was down four 7% same station expenses were down three 6% and same station Soi.
<unk> was down nine 3% and excluding political revenue declined 2% and Soi increased four 5% on a same station basis. The stellar J B R. R. A T. One station in Wilmington closed in early fourth quarter and I'm happy to announce that we took advantage of our bonds.
Trading below par and used 100% of the proceeds along with cash on our balance sheet to reduce our debt by $10 million. In addition, we were able to retain the majority of our digital revenue from J P R, which shifted over to our digital direct to agency or debt reduction both reduces our leverage.
Lower our annual interest expense by approximately 863000.
We'll continue to monitor the market conditions to determine when we ship repurchase additional box.
And now I'm going to hand, it over to Marie will give you a deeper dive into the core.
Thanks, Caroline and good morning, everyone third quarter net revenue decreased 5.8 persons or $8 7 million to $60 1 million, which includes 609000 from our esports team, excluding political revenue decreased $2 million year over year or by three points to approach that.
We generated positive revenue growth in four of our markets, including Augusta, Boston Fort Myers and Wilmington.
Digital revenue for the quarter grew nine 1% to $11 4 million and now represents 18, 6% of total revenue for the quarter and we will continue to grow this revenue stream and diversify our revenue sources maybe.
Moving to our revenue categories for third quarter consumer services remained our largest category at 29.2% of total revenue.
This category has declined one 8% during the quarter. However, five of our markets delivered a year over year increase that.
The largest decrease in this category came from medical dental and recruitment.
Our second largest category was retail which fell one 5% year over year and accounted for 16, 2% on total revenue.
Entertainment number three represents around 15.2% up third quarter total revenues and decreased seven 8% year over year. The entertainment category includes sports betting, which generated $3 7 million for the quarter compared to $3 8 million in the prior year quarter.
Auto our fourth largest category saw revenues up one 6% year over year and the category accounted for 88% of total revenue.
We saw increases in auto and more than half of our markets, including a 24% growth in Philadelphia.
Domestic auto advertising increased 1% in the quarter, while import auto ads were up around 10%, we have seen a spike in national auto tier one branding while domestic auto has slowed somewhat especially tier one and this has been partly driven by the current auto strike.
We expect continued improvement once the auto strike is first off.
Finance jumped a fib stock with revenues up almost 4% and finance is 512% of our revenue.
That's all I have for the quarter decreased 18, 8% or by $2 3 million year over year as revenue declines were partially offset by our success in reducing expenses by $1 4 million in the quarter and echoing Caroline same station revenue, excluding three W. E. A M <unk>, which was divested.
In the quarter and the Cade on T X T E swap and the guarantee digital acquisition declined four 7% or $2 9 million to $59 2 million and same station Soi declined nine 3% or $1 1 million to 10.8 million same station does not reflect this.
70, J P R, which took place on October 15, 2023 year to date revenue decreased one six firsthand with Yesterdays same station revenue.
Decreasing 1.9% year to date, and so ive increased five 2% with year to date same station soi, increasing eight 4%.
Corporate G&A expenses for the quarter decreased 12% or 639000 compared to the same quarter a year ago to $4 5 million the year over year decrease in corporate G&A is related to a decrease in wages and corporate stage at all expenses.
Noncash stock based compensation decreased 34% or 92000 to 178000 in the quarter and we paid 107000 in income taxes in the quarter.
Third quarter 2023, operating income of negative $85 5 million reflects a non cash impairment charge of $78 2 million and a noncash goodwill impairment of $10 6 million driven by the increase in discount rate and reduce overall radio markets.
Revenue projection.
Excluding these noncash impairment losses, our operating income was a positive $3 3 million compared to a positive operating income in prior year, a $4 7 million.
Third quarter interest expense decreased 176000 year over year to $6 4 million and our outstanding debt at the end of third quarter was 287 million now we used 100% of the net proceeds from the sale of W. J B R F N, which closed early.
October and some balance sheet cash to repurchase 10 million of our bonds at a discount of 37.3, 75%. This was completed on October 17, 2020, or 30 and decreases our total debt to $277 million third.
Quarter, 2023, EBITDA declined, 3.3% or $1 7 million from the comparable prior year quarter to $5 5 million L. P. M. Adjusted net leverage including add back such as certain taxes noncash compensation losses from a digital agency buildup.
On my far 2022 agency acquisition and pro forma 2022 and 'twenty 'twenty entity reps was 7.0 at the time.
We ended the third quarter of 2020, if they with cash on hand up $29 7 million net of $12 4 million in interest payments that we made on August 1st we are generating cash from operations and we will continue to build up our cash during fourth quarter as we expect to generate positive free cash.
Now in fourth quarter.
Our capital expenditures for the quarter were 1 million and that compares to the third quarter 2022, Capex spend of $4 7 million, which was related to our Boston build out year to date Capex spend was $3 1 million and that compares to a year to date 2022.
7.2 million, we expect our capex spending in 'twenty to 'twenty three to be around $4 million to $5 million for the full year.
With that I'll turn it back to Caroline. Thank you Marie while we were faced with headwinds in third quarter, especially from Nashville, I'm pleased with our third quarter digital revenue in your new business initiatives.
Continued just real revenue growth has allowed us to partially offset the decline in spot our successful content strategy helped drive the growth in our digital revenue and we expect this to continue into fourth quarter and beyond.
Our multi platform local content strategy continued to drive tremendous audience growth in the third quarter. Our Uno audience monthly reach is now almost 32 million compared to approximately $29 million. During the same period in 2022. This represents a 13% overall of the month.
Like audience increase from last year, our radio brands continued to maintain a dominant position to Nelson, where our market share grew by 6% year over year with the key demographic of adults 25, 54, however, like other recent quarters the largest audience growth was seen on our digital assets with Uni.
<unk> users increasing by 37% from Q3 'twenty two to Q3 'twenty three for a total of $31 2 million unique users in the quarter and this is compared to 21 million in the year ago quarter.
On a year to date basis unique users increased 63% from 51 8 million to $84 3 million. This audience growth led to an 18% increase that's sellable digital impressions from Q3 'twenty two to Q3 'twenty three and during Q3, our growing total digital.
Oh in esports audience represented over 50% of our total monthly audience in Q3, we successfully rolled out in more technically advanced version of our branded apps plus we launched a new national content brands podcast radio you ask in broadcast radio U S. Dot com, which is the first ever radio brands in.
The U S dedicated podcast discovery and curation. Additionally in October we launched a new country format on our side channels and markets, where we currently have a country format.
Which is solely focused on featuring new artists and their music now moving on to esports. We just closed out the season with our best finish ever when he second place in the Overwatch League and this man accounted for an additional 400000 in prize money for a total of 620000 this year and as you may have heard the lake.
Lately shut down by year end and we'll have more on this on our next quarterly call looking into fourth quarter with continued uncertainty in advertising our goals remain on driving further revenue diversification and audience expansion to maximize revenue and lessen the impact of national decline, we are focused on improving our <unk>.
Margins and growing free cash flow that will allow us to continue to reduce our debt decrease our leverage and lower interest expense.
So as of today, our fourth quarter revenue is pacing down 9% and breaking that down October was down approximately 17% November is pacing down 9% and December is pacing up 6%, excluding political fourth quarter is pacing down one.
<unk> percent with October pacing down, 4% November down, 2% and December up 6% last year, we recorded about $5 1 million net of political revenue with $4 nine of that booked as of this date last year.
Yeah.
We continue to be Super focused on developing buckles, Iraq, new business and digital to offset the softness ends up political comps lastly, before going to Q&A I'd like to address the fact that in October we received notice from NASDAQ regarding the status of our listening lifting this has no.
Mediate effect on our trading of shares we have 180 days to rectify this situation and we intend to consider all reasonable available options to regain compliance finally, I'd like to acknowledge our team members across the company for everything they've done and arguing and thank you very much for participating on the call.
Today, we have received several questions in summary, I'm going to hand, it back over to you. Thanks, Caroline and yes, we did receive a handful of questions and the first one is do you see the opportunity to do more asset sales.
Yeah, I mean, we're always open and we continue to explore potential opportunities for asset sales. However, we are looking for them to be deleveraging for the company.
Next question can you give us an update on esports.
Sure as I mentioned before it is likely that al will shut down by end of year, and we will look to receive a payment from Activision blizzard and with that pain that we will our plan to reduce our debt.
Great.
Next question can you tell us the multiple on the Soi and EBITDA for the sale of the old Wilmington, a radio station.
So first of all we sold Wilmington to a noncom broadcaster.
It was a stick value based on hot count and we sold it for 5 million them at the same time, we were able to move the IP format to a stream plus an H D. Si channel that we have in Philadelphia, so well be able to continue to provide the same type content too.
The people of Wilmington, and Philadelphia in terms of EBITDA and I. So I EBITDA on a trailing basis for the full year was about 500000 again, we sold the station for $5 million revenue.
Total revenue for the station was 4 million digital revenue was 2 million most of the EBITDA the 500000 related to digital.
Because we sold to a non com, we weren't able to move the digital revenue most of the digital revenue and EBITDA over to our digital direct agency. So based on that we're looking at a 10 times multiple with us being able to keep most of the EBITDA within the company.
Thanks.
Next question do you expect to be free cash flow positive for full year, 2023 and 'twenty 'twenty four so with that the economic headwinds that we have experienced both in third quarter I know in fourth quarter. It will be a stretch to get to a free cash flow positive for 2020 are pretty full year. However, we expect to be free cash.
So positive in fourth quarter of 2023, and most certainly for the full year of 'twenty 'twenty four.
And the last question. We have received is how much political advertising that you'll have in 2022 and what are you expecting in 'twenty, two 'twenty three and 'twenty 'twenty four.
So a review or back in 2022, we received $7 5 million of political revenue and five five points 1 million all of that came in fourth quarter of 2022 and 2023 year to date, we have received approximately 164000 in political advertising.
And our expectations for 'twenty 'twenty four mm is $11 million and that concludes the question.
Okay. Thank you very much for participating on the call today and feel free to call either Marie or myself with any follow up questions. Thank you very much.
Thank you that does conclude today's teleconference. You may disconnect. Your line at this time would have a wonderful day, we thank you for your participation today.
Operator: Good morning and welcome to Beasley Broadcast Group's third quarter 2023 conference call. Before proceeding, I'd like to emphasize that today's conference call and webcast will contain forward-looking statements about our future performance and results of operations that involve risks and uncertainties described in the risk factor section of our most recent annual report on Form 10K, as supplemented by our quarterly reports on Form 10Q. Today's webcast will also contain a discussion of certain non-GAP financial measures within the meaning of item 10, a regulation SK.
Operator: A reconciliation of these non-GAP measures with their most directly comparable financial measures calculated and presented in accordance with GAP can be found in this morning's news announcement and on the company's website. I'd also remind listeners that following its completion or replay of today's call can be accessed for five days on the company's website, www.bbgi.com. You can also find a copy of today's press release on the investor's and press room section of the site.
Caroline Beasley: At this time, I'd like to turn the conference over to your host, Beasley Broadcast Group CEO, Caroline Beasley. Please go ahead. Thank you very much and good morning. Welcome to our third quarter conference call, Marie Tedesco, our CSO is with me this morning. The third quarter saw continued softness in the advertising market with the cyclical, offset, apolitical, which led to a 5.8% revenue decline. However, excluding last year's political revenue of approximately 1.8 million, revenue was down 3.2% or 2 million.
Caroline Beasley: And on a positive note, our quarterly digital revenue continued to show year-over-year growth. And with our pro-active expense management initiatives, we decreased our operating expenses by 2.7%. Resulting an SLI of 10 million in EBITDA of 5.5 million or down 2.3 million and 1.7 million respectively. While overall revenue decreased 5.8%, we saw increases in digital, which was up 9.1%, and that worked increasing 35%. With our consistent digital revenue growth in currently representing almost 19% of total revenue, we are within a basis point of reaching the lower end of our goal of digital accounting for 20% to 30% of total revenue.
Caroline Beasley: The increases from digital and network were offset by challenges in national, which was down 2.6 million or 20%, and down 8% excluding political. And local was also down 6%. The softness of the local side was the result of its soft local agency market, which was down 4.7%, and local direct market, which was down 3.5%. As a result of this softness, we reprioritized our efforts mid-quarter with a renewed focus on developing local direct new business.
Caroline Beasley: And as a result, local new business grew 22%, 7.8 million up from 6.4 million in the prior year. In the sports betting category, we recorded 3.7 million in the third quarter, down 2.6% from the prior year with sports betting representing 6% of total revenue. Sports betting was driven by increased spending and Boston, which generated 1.9 million in this quarter versus 325,000 in the prior year. We expect sports betting and Boston to increase in fourth quarter with increased patriots, Celtics, and Berlin's games.
Caroline Beasley: These games were offset by Euro-year decreases in Detroit and Philadelphia. Now breaking down the quarter's total revenue trend, July was down 4.8%, August was down 5.1%, and September showing a slight improvement declined 2.3%. September excluding political increase 2.1%, or by 530,000, which reflected our focus on developing local direct business. And as I point to note, same-station revenue was down 4.7%, same-station expenses were down 3.6%, and same-station S.O.I, was down 9.3%. And excluding political revenue declined 2%, and S.O.I, increased 4.5% on the same-station basis.
Caroline Beasley: The cell of JBR, our team of station in Wilmington, closed in early fourth quarter and I'm happy to announce that we took advantage of our bonds trading below par and used 100% of the proceeds along with cash on our balance sheet to reduce our debt by 10 million. In addition, we were able to retain the majority of our digital revenue from JBR which shifted over to our digital direct agency. Our debt reduction both reduces our leverage and will lower our annual interest expense by approximately 863,000. We will continue to monitor the market conditions to determine when we should repurchase additional bonds.
Marie Tedesco: I'm now going to hand it over to Marie to we'll give you a deeper dive into the quarter. Thanks Caroline and good morning everyone. Third quarter net revenue decreased 5.8% or 3.7 million to 60.1 million which includes 609,000 from our E-14. Excluding political revenue decreased 2 million year over year or by 3.2%. We generated positive revenue growth in four of our markets including Augusta, Boston, Fort Myers and Wilmington. Digital revenue for the quarter grew 9.1% to 11.4 million and now represents 18.6% of total revenue for the quarter and we will continue to grow this revenue stream and diversify our revenue sources.
Marie Tedesco: Moving to our revenue categories for third quarter consumer services remained our largest category at 29.2% of total revenue. This category declined 1.8% during the quarter however five of our markets delivered year over year increases. The largest decrease in this category came from medical dental and recruitment. Our second largest category was retail which fell 1.5% year over year and accounted for 16.2% of total revenue. Entertainment number 3 represents around 15.2% of third quarter total revenues and decreased 7.8% year over year.
Marie Tedesco: The entertainment category includes sports betting which generated 3.7 million for the quarter compared to 3.8 million in the prior year quarter. Auto our fourth largest category saw revenues up 1.6% year over year and the category accounted for 8.8% of total revenue. We saw increases in auto in more than half of our markets including a 24% growth in Philadelphia. Domestic auto advertising increased 1% in the quarter while import auto ads were up around 10%.
Marie Tedesco: We have seen a spike in national auto tier 1 branding while domestic auto has flowed somewhat especially tier 1 and this has been partly driven by the current auto strike. We expect continued improvement once the auto strike is resolved. Finance jumped the fifth stock with revenues up almost 4% and finance is 5.2% of our revenue.
Marie Tedesco: So I for the quarter decreased 18.8% or by 2.3 million year over year as revenue declined for partially offset by our success in reducing expenses by 1.4 million in the quarter and echoing Caroline same station revenue excluding 3 WEM which was divested in the quarter and the KDOM, KXCE swap and the guaranteed digital acquisition declined 4.7% or 2.9 million to 59.2 million and same station SOI declined 9.3% or 1.1 million to 10.8 million. Same station that's not reflected sale on WJBR which took place on October 5th 2023.
Marie Tedesco: Year-to-date revenue decreased 1.6% with year-to-date same station revenue decreasing 1.9% year-to-date SOI increased 0.2% with year-to-date same station in SOI increasing 8.4% Corporate DNA expenses for the quarter decreased 12% or 639,000 compared to the same quarter a year ago to 4.5 million. The year of a year decreased in corporate DNA is related to a decrease in wages and corporate digital expenses. Non-cash soft-based compensation decreased 34% or 92,000 to 178,000 in the quarter and we paid 107,000 in income taxes in the quarter.
Marie Tedesco: Third quarter, 2023 operating income of negative 85.5 million reflects a non-cash impairment charge of 78.2 million and a non-cash goodwill impairment of 10.6 million driven by the increase in discount rate and reduced overall radio market revenue projection. Excluding these non-cash impairment losses or operating income was a positive 3.3 million compared to a positive operating income in prior year of 4.7 million. Third quarter interest expense decreased 176,000 year over year to 6.4 million and our outstanding debt at the end of third quarter was 287 million.
Marie Tedesco: Now we used 100% of the net proceeds from the sale of WJBR FM which closed early October and some balance cash to repurchase 10 million of our bonds at a discount of 37.375%. This was completed on October 17, 2023 and decreases our total debt to 277 million. Third quarter, 2023 EBDA declined 23.3% or 1.7 million from the comparable prior year quarter to 5.5 million. LPM adjusted net leverage including addbacks such as certain taxes, non-cash compensation, losses from a digital agency build-up, perform up our 2022 agency acquisition and perform a 2022 and 2023 rip was 7.03 times.
Marie Tedesco: We ended the third quarter 2023 with cash on hand of 29.7 million net of 12.4 million interest payments that we made on August 1. We are generating cash from operations and will continue to build up our cash during fourth quarter as we expect to generate positive fresh free cash flow in fourth quarter. Our capital expenditures for the quarter were 1 million and that compares to the third quarter 2022 capEx spend of 4.7 million which was related to our box and build-out. Year-to-day capEx spend was 3.1 million and that compares to year-to-day 2022 of 11.2 million.
Marie Tedesco: We expect our capEx spending in 2023 to be around 4 to 5 million for the full year.
Caroline Beasley: And with that, I'll turn it back to Caroline. Thank you Marie. While we were faced with headwind and third quarter, especially from National, I'm pleased with their third quarter digital revenue and new business of national. Our continued digital revenue growth has allowed us to partially offset the decline in spot. Our successful content strategy helped drive the growth in our digital revenue, and we expect this to continue into board quarter and beyond.
Caroline Beasley: Our multiple platform local content strategy continues to drive tremendous audience growth in the third quarter. Our O&O audience monthly reach is now almost 32 million compared to approximately 29 million during the same period in 2022. This represents a 13% overall monthly audience increase from last year. Our radio brands continue to maintain dominant positions in Nelson, where our market share grew by 6% year over year with the key demographic of adults 2554.
Caroline Beasley: However, like other recent quarters, the largest audience growth was seen on our digital O&O assets with unique users increasing by 37% from Q322 to Q323 for a total of 31.2 million unique users in the quarter. And this is compared to 21 million in a year ago quarter. And on a year today basis, unique users increased 63% from 51.8 million to 84.3 million. This audience growth led to an 18% increase of sellable digital impressions from Q322 to Q323.
Caroline Beasley: And during Q3, our growing total digital and esports audience represented over 50% of our total monthly audience. In Q3, we successfully rolled out a more technically advanced version of our branded apps. Plus, we launched a new National Content Brand podcast radio us and podcastradio us.com, which is the first ever radio brand in the US dedicated to podcast discovery and curation. Additionally, in October, we launched a new country format on our side channels and markets where we currently have a country format product which is solely focused on featuring new artists and their music.
Caroline Beasley: Now moving on to esports, we just closed out the season with our best finish ever when second place in the Overwatch League. And this land accounted for an additional 400,000 in prize money for a total of 600 and 20,000 this year.
Caroline Beasley: And as you may have heard, the label lightly shut down by year in and we'll have more on this on our next quarterly call. Looking into fourth quarter, we've continued uncertainty in advertising. Our goals remain on driving further revenue diversification and audience expansion to maximize revenue and lessen the impact of national decline. We are focused on improving our margins and growing free cash flow that will allow us to continue to reduce our debt, decrease our leverage and lower our interest expense.
Caroline Beasley: So out of today, our fourth quarter revenue is pacing down 9%, and breaking that down, October was down approximately 17%, November is pacing down 9%, and December is pacing up 6%, excluding political. Fourth quarter is pacing down 1%, with October pacing down 4%, November down 2%, and December up 6%. Last year, we recorded about 5.1 million net of political revenue with 4.9 of that book as of this day last year. We continue to be super focused on developing local direct new business and digital to offset the softness and the political cost.
Caroline Beasley: Lastly, before going to Q&A, I'd like to address the fact that in October, we received notice from NASA regarding the status of our listening. Listening, this has no immediate effect on our trading of shares. We have 180 days to rectify this situation and we intend to consider all reasonable available options to regain compliance.
Caroline Beasley: Finally, I'd like to acknowledge our team members across the company for everything they've done and are doing and thank you very much for participating on the call today.
Operator: We have received several questions.
Marie Tedesco: So, Marie, I'm going to hand it back over to you. Thanks, Caroline. And yes, we did receive a hand. Hello, questions. And the first one is, do you see the opportunity to do more asset sales? Yes, I mean, we're always open and we continue to explore the central opportunities for asset sales. However, we are looking for them to be de-leveraged for the company.
Marie Tedesco: Next question, can you give us some updates on eSports? Sure, as I mentioned before, it is likely that Elle will shut down by end of year and we will look to receive a payment from Activision Blizzard and with that payment, we will plan to reduce our debt. Great.
Marie Tedesco: Next question, can you tell us the multiple and SRI and EBDA for the sale of your Wilmington radio station? Yes, so first of all, we sold Wilmington to a non-com broadcaster. It was a stick value based on pot count and we sold it for five million.
Marie Tedesco: At the same time, we were able to move the IP format to a stream plus an HD side channel that we have in Philadelphia, so we'll be able to continue to provide the same type content to the people of Wilmington and Philadelphia. In terms of EBDA and SRI, EBDA on a trailing basis for the full year was about five thousand. Again, we sold the station for five million. Revenue, total revenue for the station was four million.
Marie Tedesco: Digital revenue was two million. Most of the EBDA, the five hundred thousand, related to digital. Because we sold to a non-com, we were able to move the digital revenue, most of the digital revenue and EBDA over to our digital direct agency.
Marie Tedesco: So based on that, we're looking at a ten times multiple with us being able to keep most of the EBDA within the company. Great things.
Marie Tedesco: Next question, do you expect to be free cash flow positive for full year 2023 and 2024? So with the economic headwinds that we have experienced about in third quarter and now in fourth quarter, it will be a stretch to get to free cash flow positive for 2023 full year. However, we expect to be free cash flow positive in fourth quarter of 2023 and most certainly for the full year of 2024.
Marie Tedesco: and the last question we have received is how much political advertising did you have in 2022 and what are you expecting in 2023 and 2024. So a review of that in 2022 we received $7.5 million of political revenue and $5.1 million of that came in fourth quarter of 2022. In 2023 here today we have received approximately $164,000 in political advertising and our expectations for 2024 is $11 million and that concludes the question.
Operator: Okay, thank you very much for participating on the call today and feel free to call either Marie or myself with any follow-up questions. Thank you very much. Thank you.
Operator: I just include today's helicopters and we disconnect your line at this time and have a wonderful day. We thank you for your participation today.