Q3 2023 Salem Media Group Inc Earnings Call
Yeah.
Speaker 1: Good day everyone and welcome to the Salem Media Group third quarter 2023 earnings call. Today's call is being recorded. It is now my pleasure to turn the call over to Evan Masur, Chief Financial Officer. Please go ahead.
Good day, everyone and welcome to the Salem Media Group third quarter 2023 earnings call. Today's call is being recorded it is now my pleasure to turn the call over to Evan Research you Financial Officer. Please go ahead.
Speaker 2: Welcome and thank you for joining us today for Salem Media Group's third quarter 2023 earnings call. As a reminder, if you get disconnected at any time, you can dial back in or listen from our website at www.salemmedia.com.
Welcome and thank you for joining us today for Salem Media group's third quarter 2023 earnings call.
As a reminder, if you get disconnected at any time, you can dial back in or listen from our website at www Dot Salem media Dot com.
Speaker 2: With me today are David Santrella, Chief Executive Officer, and David Evans, Chief Operating Officer. We'll begin in just a moment with our prepared remarks.
With me today are David Centrella, Chief Executive Officer, and David Evans, Chief Operating Officer, who will begin in just a moment, but how we're prepared remarks.
Once we're done the conference call operator will come back on the line to instruct you on how to submit questions.
Speaker 2: Please be advised that statements made on this call that relate to future plans, events, financial results, prospects, or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available information. Actual results may differ materially from those anticipated, and reported results should not be considered an indication of future performance.
Please be advised that statements made on this call that relate to future plans events financial results prospects or performance are forward looking statements as defined under the private Securities Litigation Reform Act of 1995.
These forward looking statements are based on currently available information actuary actual results may differ materially from those anticipated and reported results should not be considered an indication of future performance, we do not intend and undertake no obligation to update our forward looking statements, including forecasts of future performance.
Speaker 2: We do not intend and undertake no obligation to update our forward-looking statements, including forecasts of future performance.
Speaker 2: The potential for growth of existing markets, the opening of new markets, or the potential growth from future acquisitions.
The potential for growth of existing markets, the opening of new markets or the potential growth from future acquisitions.
Speaker 2: This conference call also contains non-GAAP financial measures within the meaning of Regulation G.
This conference call also contains non-GAAP financial measures within the meaning of regulation G. Specifically.
Speaker 2: specifically Station Operating Income, or SOI, EBITDA, and Adjusted...
Specifically station operating income or Soi EBITDA and adjusted EBITDA in.
Speaker 2: In conformity with Regulation G, information required to accompany the disclosure of non-GAAP financial measures is available on the Investor Relations portion of our website at salemmedia.com.
In conformity with regulation G information required to accompany the disclosure of non-GAAP financial measures is available on the Investor Relations portion of our website at Salem media Dot com.
Speaker 2: I will now like to turn the call over to Dave Santrella. Dave. Thanks, Evan, and good afternoon to everyone on the call and on the webcast.
Now I'd like to turn the call over to Dave Central Dave Thanks, Kevin and good afternoon to everyone on the call and on the webcast.
Speaker 3: My prepared remarks will focus on a review of Salem's financial performance in the third quarter and an update on asset sales. After that, I'll turn the call back to Evan to provide some additional details on the performance in the third quarter, talk about Salem's debt, and give guidance for the fourth quarter.
My prepared remarks will focus on a review of <unk> financial performance in the third quarter and an update on asset sales after that I'll turn the call back to Kevin to provide some additional details on the performance in the third quarter talk about salem's debt and give guidance for the fourth quarter.
Speaker 3: As you've heard from many of our peers, our industry continues to face challenges with the economy and elevated interest rates. In fact, S&P has said that we are in a persistent ad recession.
As you have heard from many of our peers our industry continues to face challenges with the economy and the elevated interest rates. In fact, S&P has said that we are in a persistent add recession.
And we're feeling that as well for the third quarter total revenue declined 5.0%, though only three 9% excluding political.
Expenses increased just 0.2% and adjusted EBITDA improved nine 3% due to last year's legal settlement accrual of three 8 million part.
Speaker 3: With the cost cuts we've outlined in our last two calls, free cash flow is improving and we remain focused on operating efficiently.
With the cost cuts we've outlined in our last two calls free cash flow is improving and we remain focused on operating efficiencies.
Speaker 3: I'll now break down Salem's performance for each division. In the broadcast division, revenue declined 4.2% in the quarter, largely due to political comps and the impact of the ad recession. In the third quarter of 2022, we recorded 1.5 million dollars in political revenue, as compared to only 700,000 for the third quarter of this year.
Now I'll breakdown Salem's performance for each division in the broadcast Division revenue declined four 2% in the quarter largely due to political comps and the impact of the AD recession in the third quarter of 2022, we recorded $1 $5 million in political revenue as compared to only 700.
For the third quarter of this year spot advertising revenue continues to be the biggest reason for the overall decline in broadcast revenue national spot was down 17, 9% in local spot was down six 6% overall total spot advertising revenue was down nine 6%.
Speaker 3: Spot advertising revenue continues to be the biggest reason for the overall decline in broadcast revenue. National spot was down 17.9% and local spot was down 6.6%. Overall, total spot advertising revenue was down 9.6% or $1.3 million. Network revenue was down $10.
Or $1.3 million network revenue was down 10, 1%.
Speaker 3: Digital revenue growth within the Broadcast Division has stalled out due to the advertising recession, with revenue down 4.5% in the quarter after only a slight increase of 0.6% in Q2. However, we expect a return to double-digit growth in all digital, including the National Digital Division, in Q4. As a reminder,
Digital revenue growth within the broadcast division and has stalled out to the advertising recession with revenue down four 5% in the quarter. After only a slight increase of 0.6% in Q2. However, we expect a return to double digit growth in all digital including the National Digital Division in.
Q4, as a reminder, total digital revenue both digital revenue in the broadcast Division and National Digital Division represent 29, 5% of our total revenue.
Speaker 3: Total digital revenue, both digital revenue in the Broadcast Division and National Digital Division, represent 29.5% of our total revenue.
Speaker 3: Block programming revenue was essentially flat, down 0.1% in the third quarter. As you know, this is an important category for Salem and unique to our business model. Block programming makes up 40% of our broadcast revenue and 31% of our total revenue.
Block programming revenue was essentially flat down 0.1% in the third quarter. As you know this is an important category for Salem and unique to our business model block programming makes up 40% of our broadcast revenue and 31% of our total.
Speaker 3: Broadcast operating expenses increased 2.4% and were up due to severance expense and investments in the Salem News Channel and the Miami market, which was acquired at the beginning of 2023.
Broadcast operating expenses increased two 4% and were up due to severance expense and investments in our Salem News channel and the Miami market, which was acquired at the beginning of 2023.
Speaker 3: In the National Digital Division, revenue declined 2.2 percent in the third quarter. This is due to the Facebook algorithm change that took place in Q3 2022 and the recent non-renewal of the Bible Gateway Representation Agreement, partially offset by increased revenue from George Gilder Investment Newsletter's acquisition.
And the National Digital Division revenue declined two 2% in the third quarter. This is due to the Facebook algorithm change that took place in Q3 2022, and the recent non renewal of the Bible Gateway representation agreement, partially offset by increased revenue from George Gilder investment newsletters acquisition.
Digital expenses were up 2% due to severance costs and costs associated with the George Gilder newsletter acquisition.
Speaker 3: Revenue from our book publishing decreased 17.5% in the third quarter due to a light publishing schedule. Additionally, the softness in the overall economy has caused some declines in our self-publishing business.
Revenue from our book publishing decreased 17, 5% in the third quarter due to a light publishing schedule. Additionally, the softness in the overall economy has caused some declines in our self publishing business expenses in the publishing business were down nine 2% due primarily to variable costs.
Speaker 3: Expenses in the publishing business were down 9.2% due primarily to variable costs.
Speaker 3: I want to now update you on the Asset Sales Activity. We've been very busy and have a lot to report. On our last call, I mentioned that we entered into an agreement to sell KSAC FM in Sacramento for $1.0 million. We've received initial consent from the FCC and expect to close on that sale next month.
I want to now update you on the asset sales activity, we've been very busy and have a lot to report on our last call I mentioned that we entered into an agreement to sell <unk> AC at Bam and Sacramento for $1.0 million.
We have received initial consent from the FCC and expect to close on that sale next month, just last week on November 6th we closed on the sale of three FM radio stations in Greenville, South Carolina for $6 $8 million in that market, we still own two translators the tower site in the studio office building.
Speaker 3: Just last week, on November 6th, we closed on the sale of three FM radio stations in Greenville, South Carolina for $6.8 million. In that market, we still own two translators, the Tower Site and the Studio Office Building, all of which are listed for sale.
All of which are listed for sale.
Speaker 3: On September 29th, we entered into an agreement to sell Salem Church products for $30 million, of which $22.5 million will be paid at closing.
On September 29th we entered into an agreement to sell Salem Church products for $30 million of which $22 5 million will be paid at closing the remaining $7 $5 million will be paid in three equal installments beginning on the first anniversary of the closing.
Speaker 3: The remaining $7.5 million will be paid in three equal installments beginning on the first anniversary of the closing.
Speaker 3: Additionally, upon closing, we will enter into a separate $10 million multi-year advertising for equity agreement whereby Salem will advertise for the buyer Glue LLC.
Additionally, upon closing we will enter into a separate $10 million multiyear advertising for equity agreement, whereby Salem will advertise for the buyer Glu LLC the.
Speaker 3: The equity agreement includes a put option that guarantees that Salem will receive a minimum price of $10 million for the equity.
The equity agreement includes a put option that guarantees at Salem will receive a minimum price of $10 million for the equity we are working on closing this transaction as soon as possible.
Speaker 3: We are working on closing this transaction as soon as possible.
Speaker 3: On September 1st, we entered into an agreement to sell radio station WTWD-AM and a translator in Tampa, Florida for $0.7 million. We expect this to close by the end of next month.
On September 1st we entered into an agreement to sell radio station W. T. W. D. A M and the translator in Tampa, Florida for Zero point $7 million. We expect this to close by the end of next month on.
Speaker 3: On October 17th, we entered into an agreement to sell land in Sarasota, Florida, for $9.5 million. The closing is conditional upon getting the property rezoned, and we expect to close the sale in late 2024.
On October 17th we entered into an agreement to sell land in Sarasota, Florida for $9 $5 million. The closing is conditional upon getting the property Rezoned and we expect to close the sale in late 2024.
Speaker 3: We'll use the proceeds from these asset sales to fully pay off the revolver. The current revolver expires on February 1st of next year. We are currently working on a new revolver and expect to have it in place by the end of the year. With that, I'll turn the call back to Evan for more details on the quarter's performance and guidance for the last quarter of 2020.
We'll use the proceeds from these asset sales to fully pay off the revolver. The current revolver expires on February one of next year. We are currently working on a new revolver and expect to have it in place by the end of the year with that I'll turn the call back to Evan for more details on the quarter's performance and guidance for the last quarter of 2020.
Right.
Speaker 2: Thank you, Dave. For the third quarter, total revenue decreased 5.0% to $63.5 million, largely due to political comps. Operating expenses on a recurring basis increased 0.2% to $61.0 million, and adjusted EBITDA increased to $2.5 million.
Thank you Dave for the third quarter total revenue decreased 5.0% to $63 $5 million largely.
Largely due to political comps operating expenses on a recurring basis increased <unk>, 2% to $61.0 million.
And adjusted EBITDA increased to $2 $5 million.
Speaker 2: Compared to last year, net broadcast revenue decreased 4.2% to $49 million, and broadcast operating expenses increased 2.4% to $42.2 million, resulting in station operating income of $6.8 million, a decrease of 31.8%.
Compared to last year net broadcast revenue decreased four 2% to $49 million.
And broadcast operating expenses increased two 4% to $42 2 million, resulting in station operating income of $6 8 million a decrease of 31, 8%.
Speaker 2: On a same station basis, net broadcast revenue decreased 4.9% to 48.6%.
On a same station basis net broadcast revenue decreased four 9% to $48 6 million and Soi decreased 28, 2% to $7 3 million.
Speaker 2: and SOI decreased 28.2% to 7.3 million.
Speaker 2: These same station results include broadcast revenue from 97 of our 100 radio stations and network operations, and represents 99.2% of our net broadcast revenue.
These same station results include broadcast revenue from 97 of our 100 radio stations and network operations and represents 99, 2% of our net broadcast revenue.
Speaker 2: As of September 30th, 2023, total debt was $179.9 million, composed of $159.4 million of 7.125% 2028 notes and $20.5 million outstanding on the asset-based loan facility.
As of September 32023, total debt was $179 $9 million composed of $159 4 million, a $7, 125% 2028 notes and $25 million outstanding on the asset base loan facility.
Speaker 2: As I discussed on the call last quarter, we are in default on our ABL. We have been working with our lender, Wells Fargo, and have now signed four different forbearance agreements on August 7th, August 30th, September 28th, and most recently on November 2nd.
As I discussed on the call last quarter, we are in default on our ABL, we have been working with our lender Wells Fargo and have now signed four different forbearance agreements on August 7th August 30th September 28th and most recently on November 2nd.
Speaker 2: Through these amendments, the notional amount of the revolver has been decreased from $30 million to $25 million. The required minimum excess availability is now $2 million. The interest rate has been increased, and the maturity has been moved up from March 1st next year to February .
Through these amendments the notional amount of the revolver has been decreased from $30 million $25 million. The required minimum excess availability is now $2 million. The interest rate has been increased and the maturity has been moved up from March one next year to February one.
Speaker 2: the company and the bank are continuing to work jointly through this default. As Dave mentioned, we're currently working with a new lender on a new ABL revolver and should have that in place by the end of the year.
The company and the bank are continuing to work jointly through this default as Dave mentioned, we're currently working with a new lender on a new ABL revolver and should have that in place by the end of the year.
Speaker 2: The leverage ratio at September 30th was 11.0, clearly too high. You heard Dave mention all of the asset sales for which we have entered into agreements. We are continuing to evaluate our portfolio to identify other assets where monetization via asset sale makes sense.
The leverage ratio at September 30 was 11.0 clearly too high.
Dave mentioned all of the asset sales for which we have entered into agreements. We are continuing to evaluate our portfolio to identify other assets, where monetization via asset sale makes sense.
Speaker 2: We'll be aggressively paying down debt with any proceeds we get.
We will be aggressively paying down debt with any proceeds we get.
Speaker 2: Additionally, the losses from two start-up businesses, Salem News Channel and our cluster in Miami, have negatively impacted our financial results and therefore leverage.
Additionally, the losses from two startup businesses Salem News channel in our cluster in Miami have negatively impacted our financial results and therefore leverage.
Speaker 2: We expect these to provide improved performance over the next couple of years.
We expect these to provide improved performance over the next couple of years.
Speaker 2: Looking forward for the fourth quarter of 2023, Salem is projecting total revenue to decline between six percent and eight percent from fourth quarter 22 total revenue of 68.8 million dollars.
Looking forward for the fourth quarter of 2023.
Salem is projecting total revenue to decline between 6% and 8% from fourth quarter 'twenty to total revenue of $68 8 million now.
Speaker 2: Now this guidance assumes the closing of the pending sale of Salem Church products in the fourth quarter.
Now this guidance assumes the closing of the pending sale of sale of insurance products in the fourth quarter.
Speaker 2: excluding the impact of the 2022 political revenue and the financial results from the pending assets sale.
Excluding the impact of the 2022 political revenue in the financial results from the pending asset sale.
Speaker 2: we would be projecting total revenue to decline between 2% and 4%.
We would be projecting total revenue to decline between 2% and 4% Salem is also projecting operating expenses before gains or losses on the sale or disposal of assets stock based compensation expense legal settlement changes in the settlement and the estimated fair value of contingent earn out consideration impairments depreciation.
Speaker 2: Salem is also projecting operating expenses before gains or losses on the sale or disposal of assets, stock-based compensation expense, legal settlement, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense to be between flat and a decrease of 3% compared to the fourth quarter 2022 non-GAAP operating expenses of $61.6 million.
<unk> expense and amortization expense to be between flat and a decrease of 3% compared to the fourth quarter 2022, non-GAAP operating expenses of $61 6 million.
Speaker 2: Excluding the impact of the pending asset sale, expenses are projected to be between an increase of 1 percent and a decrease of 2 percent.
Excluding the impact of the pending asset sale expenses are projected to be between an increase of 1% and a decrease of 2%.
Speaker 2: And this now concludes our prepared remarks, and we would like to answer any questions. I'll turn it back over to Lisa to help us with that. Lisa?
And this now concludes our prepared remarks, and we'd like to answer any questions I'll turn it back over to Lisa to help us with that Lisa.
Speaker 1: Thank you. If you would like to ask a question on the phone line today, you can press star one on your telephone keypad. If you would like to remove yourself from the queue, it is star one again. And we'll pause for a moment to assemble the queue.
Thank you have you would like to ask a question on the phone line today, you can press star one on your telephone keypad, if you would like to remove yourself from the queue. It is star one again, and we will pause for a moment to assemble the queue.
Yes.
Speaker 1: We'll take our first question from David Marsh with Singular Research.
Well take our first question from David Marsh with singular research.
Speaker 3: Hey guys, thanks for taking the questions.
Hey, guys. Thanks for taking the questions.
Speaker 3: I guess I would say congrats on all of these pending sales, but I have quite a few questions on them, I guess.
I guess I would say congrats on all of these pending sales.
But I have quite a few questions on them I guess.
Speaker 3: At the outset, the first and probably biggest question is, are you guys able to quantify the revenue and EBITDA contribution collectively of all of the assets you've agreed to sell?
At the outset.
First and probably the biggest question is are you guys able to quantify.
The revenue and.
EBITDA contribution collectively of all of the assets is agreed to sell.
Yeah.
Speaker 3: So the good news is that, you know.
So the good news is that.
Speaker 2: First off, with the land sales, there really is not a revenue contribution to them. Salem Church Products, David can address that.
First off with the land sales there really is not a revenue contribution to them.
The sale of insurance products, David can address that.
Speaker 4: I'm actually in London right now, so I don't have those numbers handy. Evan may be able to combine the impact of the Greenville sale with the impact of the search product sale.
David Evans.
Yes, I don't have those I'm actually in London right now so I don't have those numbers handy.
And then may be able to combine the impact the Greenville sale with the impact from such a product sale.
Speaker 2: Yeah, you know, I would say, David, if I were to look at all of these transactions, that you're looking somewhere between, you know, two to $3 million of EBITDA, that would go away.
Yes, I would say David if I were to look at all of these transactions.
That youre looking somewhere between.
$2 million to $3 million of EBITDA.
That would go away.
Okay.
Okay.
Speaker 3: And then just on the land sale in particular, because that, you know, as you mentioned, there's, you know, probably no revenue at all associated with that. In fact, it's probably just expense for real estate taxes. Could you talk about that zoning process? And, you know, what does that look like, the rezoning? And, you know, how confident are you in a favorable resolution of that? And, you know, what's the timing there?
And then just on the land sale in particular dependence.
As you mentioned.
Yes.
No revenue at all associated with that in fact, it's probably just expense for <unk>.
Real estate taxes.
Could you talk about that zoning process and what does that look like the rezoning and.
How confident are you in a.
Favorable.
A resolution of that and.
What's the timing there.
Speaker 3: Yeah, we're working with, particularly in Florida, we're working, I wish, I wish, I, I.
Yes, we're working with.
Particularly in Florida, we're working I wish I wish.
Speaker 3: We might be able to get back to you after the call with our GC who is intimately more aware of all the details of this. What I can tell you is we are working with some experts in Florida on land sales that are helping us with that rezoning process. And you know, we wouldn't have put this on the earnings call if we didn't have some degree of confidence in our ability to close on that.
We might be able to get back to you after the call with our with our GC, who is intimately more aware of the details of this.
What I can tell you is we are working with some experts in Florida on land sales that are helping us with that rezoning process and.
To put this on the earnings call. If we were didn't have some degree of confidence in our ability to close on that deal.
Speaker 2: And I believe the buyer owns an adjacent parcel, and so we feel very confident that the rezoning will take place, and like Dave mentioned in the prepared remarks, we expect that to close kind of late next year. So it is a time-consuming process, so it's not like something that will happen between now and the end of this year, but we do feel confident about getting that rezoned.
And I believe the buyer owns an adjacent parcel and so we feel very confident that the rezoning will take place in.
Like Dave mentioned in the prepared remarks, we expect that to close kind of late next year. So it is a time consuming process. So it's not like something that will happen between now and the end of this year, but we do feel confident about getting that rezoned.
Speaker 3: Got it. Got it. And in terms of the recent, more recent acquisitions in Miami, I believe he does a coin saloon as well.
Got it got it and.
In terms of the recent more recent acquisitions.
In Miami I believe you guys a call some goods as well.
Speaker 3: Is that a parcel that you guys are taking a look at as well, as long as values are still hanging in there on the real estate side, and have you had any indications of interest around that parcel?
That a parcel that you guys are taking a look at as well as long as.
Values are still hanging in there on the on the real estate side and.
Have you had any <unk>.
Indications of interest.
Round that parcel.
Speaker 2: I would say we're looking at pretty much all parcels that we own if there's an opportunity to sell the land for a reasonable value and either move somewhere or diplex at another location that we have. So certainly we're looking at the properties in Miami that we recently acquired along with the rest of our portfolio.
Yes, I would say, we're looking at pretty much all parcels that we own if there.
If theres an opportunity to sell the land for a reasonable value and either move somewhere or diplex at another location that we have so.
Certainly we're looking at the properties in Miami that we recently acquired along with the rest of our portfolio.
Speaker 3: sure makes sense and then just lastly Evan just if we could just tie just tie up on that on the current facility you guys have
Sure makes sense and then just lastly, Evan just if we could just tie just tie up.
On that credit facility.
Guys are.
Speaker 3: Signed a number of agreements. I mean, you're you're so still forbearing at this point. Those are still in the fall
The number of agreements I mean youre.
So we're still forbearance at this point those are still in default.
Speaker 3: It sounds like you guys are moving pretty briskly towards a refinancing of the facility. Could you just give us a little bit more detail around the forbearance and what that means?
What it means.
It sounds like you guys are moving pretty briskly towards a.
The refinancing of the facility.
Could you just kind of give us a little bit more detail around.
The forbearance and what that means and.
Speaker 3: you know, if at all that there's an impact on a potential, you know, problem with...
Yes.
If it if at all that there is.
The impact on our potential.
The problem with with the equity trading.
Speaker 2: Yeah, so as far as the forbearance, I mean, I think we've worked pretty well with Wells Fargo trying to navigate through this, you know, they have been accommodating with some of the issues that we have, you know, they're looking forward to us getting this refinanced with another lender here soon. And the forbearance, really, they're just
Yes, so as far as the forbearance I mean, I think we've worked pretty well.
<unk> with Wells Fargo trying to navigate through this.
They have been accommodating with some of the issues that we have there.
We're looking forward to us getting this refinanced with another lender here soon.
And the forbearance really they are just.
Speaker 2: temporarily waiving their rights under the default.
Temporarily waving their rights under the default.
Speaker 2: And, you know, every month we're just kind of re-evaluating where we are, really with two things, the timing of asset sales and where we are on getting the new credit facility in place. So, the current forbearance goes through Monday, November 27th, so my expectation is, you know,
And.
Every month, we're just kind of reevaluating, where we are really with two things.
Timing of asset sales.
And where we are on getting the new credit facility in place. So the current forbearance goes through.
Monday November 27th So my expectation is.
Speaker 2: Either on that day or before that date, we will put in place another forbearance or another agreement of some sort.
Either on that day or before that date, we will put in place another forbearance or another agreement of some sort.
Speaker 3: Well, let me let me stop there and let some other folks get in, but thank you guys for the info. Appreciate it.
Alright, let me, let me stop there and let some other folks get in but thank you guys for the and so I appreciate it.
Speaker 2: You know, Dave, our general counsel Chris Henderson just came in. He can give a little bit more detail on that land and the rezoning. So I'll hand it to Chris for a moment.
Yes.
Dave <unk>, our general Counsel, Chris Henderson, just came and he can give a little bit more detail on that land and the rezoning. So I'll hand, it to Chris for a moment.
Speaker 5: Yeah, on the Sarasota land, we have pre-approval from the county. We had a call early on before we signed a purchase and sale agreement with the buyer.
Yeah on the Sarasota land, we have pre approval from the county, we had a call early on before we signed a purchase and sale agreement with the buyer.
Speaker 6: Walked through with the county what we were proposing. It's going to move to residential From its current zoning and they have effectively signed off on it So we're highly confident that we'll be able to to get it rezoned and we're not doing the rezoning the buyer is and so we've signed The contract buyer will do the rezoning addition to closing. We anticipate that it'll close as was mentioned in December of next year Very helpful. Thanks so much
And walked through with the county, what we're proposing is going to move to residential from its current zoning and they are effectively signed off on it. So we're highly confident that we'll be able to get it rezoned and we're not doing the rezoning. The buyer is and so we signed the contract buyer will do the rezoning edition to closing we anticipate.
Right that it will close as was mentioned in December of next year.
Very helpful. Thanks, so much guys.
Alright, Thank you alright, thank you.
As a reminder, everyone that is star one.
Speaker 1: All right, and there are no further questions at this time. I'd like to turn the call back over to David Centrella for any additional or closing remarks.
And there are no further questions at this time I would like to turn the call back over to David Centrella for any additional or closing remarks.
Speaker 7: Okay, well, thanks everybody for being on the call. We'll talk to you again. Thank you, bye.
Okay, well, thanks, everybody for being on the call. We will talk to you again, thank you bye.
Speaker 1: Thank you. That does conclude today's presentation. Thank you for your participation and you may now disconnect.
Thank you that does conclude todays presentation. Thank you for your participation and you may now disconnect.
Speaker 8: And.
Yes.
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