Q4 2023 Beasley Broadcast Group Inc Earnings Call

Operator: that involve risks and uncertainties described in the risk factor section of our most recent annual report on Form 10-K as supplemented by our quarterly report on Form 10-Q. Today's webcast will also contain a discussion of certain non-GAAP financial measures. Within the meanings of Item 10 of Regulation SK, 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 on the company's website. I would also like to remind listeners that following its completion, a 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 session in the investors or press room sections of the site. At this time, I would like to turn the conference over to your host. C.E.O. Caroline Beasley Please go ahead.

Asian that involve risks and uncertainties described in the risk factor section of our most 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 within the meanings.

Eight am 10 of regulation S. K a reconciliation of these non-GAAP measures with their most.

Comparable financial measures calculated and presented in accordance with GAAP can be found in this morning's news announcement on the company's website.

I would like to 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 D. B G I dotcom.

You can also find a copy of today's press release, and the investors or pressroom sections of the site at this time I would like to turn the conference over to your host Beasley broadcast group's CEO Caroline Beasley. Please go ahead.

Caroline Beasley: Thank you, Sherry, and good morning everyone. Thank you for joining us to review our fourth quarter and full year results. Marisa Destler, our CSO, is with me this morning. The combination of typical non-recurring political revenue and overall ad softness led to a fourth quarter revenue decline of 8.7 percent, slightly better than the expectation we provided when we reported a third quarter decline of minus 9 percent. However, excluding fourth quarter 22 political of approximately 5.1 million, fourth quarter revenue would have declined just 2.4 percent. Similarly, full year revenue dropped 3.6 percent, but excluding politics, full year revenue would have declined just 0.9 percent. Same station, ex-political, would have been down just 0.3 percent and down 0.6 percent for the full year. And as a point of reference, total net political for fourth quarter 22 and full year 22 was 5.1 million and 7.5 million, respectively. With our focus on expense control, we managed to reduce our expenses primarily from headcount reductions in 2023, resulting in total expenses down 3.3% year-over-year for the fourth quarter and 2.3% for the whole year.

Thank you Sherry and good morning, everyone. Thank you for joining us to review, our fourth quarter and full year results Marie Tedesco. Our CFO is with me. This morning, the combination of cyclical of nonrecurring political revenue and overall outsource that led to a fourth quarter revenue decline of 8.7.

<unk> slightly better than the expectation we provided when we reported third quarter of minus 9%. However, excluding fourth quarter 'twenty two political of approximately $5 1 million fourth quarter revenue would have declined just two 4% Similarly full year.

Our revenue dropped three 6%, but excluding political full year revenue would have declined just 0.9% same station ex political would have been down just 3% and down <unk>, 6% for the full year and as a point of reference.

Total net political for fourth quarter, 'twenty, two and full year 'twenty, two was $5 1 million and $7 5 million respectively.

With our focus on expense control, we managed to reduce our expenses primarily from headcount reductions in 2023.

And brought our total expenses down three 3% year over year for fourth quarter, and two 3% for the full year and as a result fourth quarter Soi declined by $4 3 million. However, when excluding political soi would have been down one 2% or just 100.

Caroline Beasley: And as a result, fourth-quarter SLI declined by 4.3 million. However, when excluding politics, SLI would have been down 1.2% or just $113,000. And on a full-year basis, excluding politics, SLI increased 5.4%. And on a same-station basis, excluding politics, for the fourth quarter and full year, SLI increased 9% and 16.9%, respectively. Now, breaking down our fourth quarter revenue performance, over-the-air local spot revenue was down 6.1% or $2.5 million. And on a same-station basis, excluding politics, local revenue was down 2.5% or $986,000.

And 13000 and on a full year basis, excluding political and Soi increased five 4% and on a same station basis ex political for the fourth quarter and full year Soi increased 9% and 16, 9% respectively.

Breaking down our fourth quarter revenue performance over the air local spot was down six 1% or $2.5 million and on a same station basis, excluding political local was down two 5% or 986000, we remain focused on developing new local direct business.

Caroline Beasley: We remain focused on developing new local direct business, and our efforts paid off as our new business increased 52% year-over-year for the fourth quarter. And we saw a 20% increase for the full year compared to 2022. In addition, we saw a shift between local direct and local agency, where local direct, as a percentage of total local, increased 7% for the quarter.

And our efforts paid off as our new business increased 52% year over year for the fourth quarter and we saw a 20% increase for the full year compared to 2022. In addition, we saw a shift between local direct and blah Blah agency, where local direct as a percentage of total local increased.

7% for the quarter Nash.

Caroline Beasley: National Remain Challenged, decreasing 36.8% or net $5 million, and that is primarily due to political revenue. Excluding political revenue, net national declined 1.2 million or 12.4% for the quarter. Furthermore, national for the fourth quarter represented 12.7% of total revenue and 13.2% for the full year. This compares to digital revenue, which was 18.2% of fourth-quarter revenue and 18.4% of total revenue for the full year of 2023. Clearly, outdoing national as we have been successful in offsetting the national declines with growing digital revenue for the full year. We expect national to continue to decline ex-political, which is why we are prioritizing the growth of our digital platform and continuing to aggressively develop new local direct business.

National renamed Challenge decreasing 36, 8%, our net $5 million and that is primarily due to political revenue excluding political net national declined 1.2 million or 12, 4% for the quarter. Furthermore, national for the fourth quarter represented 12 seven.

<unk> of total revenue and 13, 2% for the full year. This compares to digital revenue, which was 18.2% of fourth quarter revenue and 18, 4% of total revenue for the full year of 2023, clearly out billing national as we had been successful in offsetting the national.

Line declines with growing digital revenue for the full year.

We expect national to continue to decline ex political which is why we are prioritizing the growth of our digital platform and continuing to aggressively develop local direct new business Q4 digital revenue was essentially flat at 12 million and now represents 18, 2% of total revenue that's up.

Caroline Beasley: Q4 digital revenue was essentially flat at $12 million and now represents 18.2% of total revenue. That's up from 16.6% in the year-ago fourth quarter. Full-year debt digital increased 11.4% or $4.7 million to $45.4 million and accounted for 18.4% of total $23 revenue, just shy of our goal of digital accounting for 20% of total revenue. We expect digital to account for between 20% and 25% of total revenue in 2024, driven by content creation and the continued success and growth of our digital services. Now moving to sports betting, we recorded $5.2 million in Q4, amounting to an increase of 58%, or 7.9% of total revenue in this category, which was driven by our Boston cluster. Full-year sports betting revenue increased 33% to $16.5 million, with more than 50% coming from Boston, where we required multi-year commitments for sports betting contracts.

Up from 16, 6% in the year ago fourth quarter full year debt digital increased 11, 4% or $4 7 million to $45 4 million and accounted for 18, 4% of total twenty-three revenue just shy of our goal of just draw accounting for 20% of total revenue.

We expect digital to account for between 20, and 25% of total revenue in 2024, driven by content creation and the continued success and growth of our digital services now.

Now moving to sports betting we recorded $5 2 million in Q4 amounting to an increase of 58% or seven 9% of total revenue in this category, which was driven by our Boston cluster full year sports betting revenue increased 33% to $16 5 million.

With more than 50% coming from Boston, where we require multiyear commitments for sports betting contracts.

Caroline Beasley: Now, I'd like to update you on a couple of transactions we closed on in the fourth quarter. Number one, in our Treasury deposit on our Wilmington single station sale. Since this station was sold to a non-com buyer, we kept the majority of the digital cash flow by moving it to our digital agency. And then, number two, with Activision's Blizzard sale to Microsoft, the Overwatch franchise leak was discontinued, and our Houston Outlaws team was dissolved. As a result, we received compensation for the franchise license. And while we will no longer be competing in the gaming space, given our learnings and experience of the past four years, we're continuing to create gaming content, and we have pivoted this business toward the Gen Z entertainment space with a heavy emphasis on content-oriented videos, live streams, and social media under our new brand, Outlaws Entertainment.

Now I'd like to update you on a couple of transactions we closed on in fourth quarter number one in October we closed on our Wilmington singles station, So and since the station was sold to a non column buyer. We kept the majority of the digital cash flow by moving that to our digital agency and then number two with <unk>.

Activision Blizzard sell to Microsoft the Overwatch franchise, Blake was discontinued and our Houston Outlaws team was dissolved as a result, we received compensation for their franchise license and while we will no longer be competing in the gaming space, given our learnings and experience of the past four years where continue.

Turning to create gaming content and we have pivoted the business towards the Gen Z entertainment space with heavy emphasis on content oriented video live streams and social media under a new brand Outlaws entertainment.

Caroline Beasley: We used the proceeds from both transactions, along with a small portion of our cash on hand, to buy back $20 million in face value of our debt at a discount of approximately 34%, reducing our bond debt to $267 million as of the end of the year. And with the return of Politico in 2024 and our growing expectations for digital this year, we intend to continue to opportunistically address our debt. And as a point to note, we've reduced our debt by $33 million since we closed on our bond deal. So now I'm going to turn it over to Marie, who's going to give you a deeper dive into the quarter. Thanks, Caroline, and good morning, everyone.

We used the proceeds from both transactions along with a small portion of our cash on hand to buy back 20 million face value of our debt at a discount of approximately 34%, reducing our bond debt to 267 million as of the end of the year and with the return of political in 'twenty, four and our garage expect.

Thanks, Caroline and good morning, everyone as Caroline mentioned fourth quarter net revenue decreased eight 7% or $6 3 million to $65 7 million, Boston Fort Myers, and Tampa and recorded positive revenue growth year over here when comparing to prior year, which.

Marie: As Caroline mentioned, fourth quarter net revenue decreased 8.7% or $6.3 million to $65.7 million. Boston, Fort Myers, and Tampa reported positive revenue growth year over year when compared to the prior year, which included $5.1 million of political revenue, excluding 2022 fourth quarter political revenue declined 2.4 percent or 1.6 million driven by a decline in agency business. Full-year total revenue decreased 3.6% or $9.3 million to $247.1 million. And excluding 2022 political, full-year revenue decreased 0.9% or $2.3 million, again driven by a decline in agency revenue. Looking closer at the quarter, October was down 16.3 percent, driven by prior year politics. November was down 9.7 percent, also driven by 2022 politics.

Included $5 1 million of political revenue.

Excluding 2022 fourth quarter political revenue declined two 4%, a 1.6 million driven by a decline in agency business.

Full year total revenue decreased three 6% or $9 3 million to $247 1 million and excluding 2022 political full year revenue decreased 0.9% or $2 3 million again, driven by a decline in agency <unk>.

Anew.

Looking closer at the quarter October was down 16, 3% driven by prior year political November was down nine 7% also driven by 2022 political and December increased one 7% year over here.

Marie: And December increased 1.7 percent year over year. Operating expenses for the quarter decreased 3.3% year-over-year or by $1.9 million, and SLI declined $4.3 million compared to Q4-Q22. Excluding political, SOI would have dropped just 1.2% or $113,000. The main driver of the fourth quarter expense savings came from previous hedge fund reductions.

Operating expenses for the quarter decreased three 3% year over year or by $1 9 million and Soi declined $4 3 million compared to fourth quarter 22, excluding Paul as a call and so I would have dropped to just one 2% or 113000.

The main driver of the fourth quarter expense savings came from previous head count reduction.

Marie: Full year operating expenses declined $5 million, also due to wage reduction, somewhat offset by increased third-party digital expenses, bad debt expense, and now continued investment in cybersecurity. Our full year SOI, ex-political, would have increased $2 million, or 5.4%. Same station revenue for the quarter, which excludes the divested Boca, Atlanta, and Wilmington stations, as well as our Las Vegas asset exchange and the dissolution of our East 14, declined 6.3% to $65.1 million, and same station SOI declined $2.9 million, or 21.5%. Looking at the full year, same station revenue declined 3.1%, and full year same station SOI increased 1.6% or $700,000. When comparing Chain Station SOI ex-political for the quarter and full year, SOI increased 840,000 or 9% and 6.3 million and 16.9%, respectively.

All year operating expenses declined 5 million all stuff on wage reductions somewhat offset by increased third party digital expense that bad debt expense and our continued investment in cyber security.

Our full year Soi ex political would have increased 2 million or five 4%.

Same station revenue for the quarter, which excludes the divested Boca Atlanta, and our Wilmington station as well as our Las Vegas asset exchange and the dissolution of our esports team declined six 3% to $65 1 million and same station Soi decline.

<unk> 9 million or 21, 5%.

Looking at the full year same station revenue it declined three 1% and full year same station Soi increased one 6% or 700000, when comparing same station soi ex political for the quarter and full year Soi.

Increased 840000, or 9% and $6 3 million and 16 or 16, 9% respectively.

Marie: Now looking at our revenue category for the fourth quarter, consumer services remains our largest revenue category at 27.6% of total revenue with a drop of 10.1% year over year. Our second largest category was entertainment, switching sites with retail. And entertainment was up 17.1% for the quarter, at 16.5% of total revenue. We saw entertainment spend increase in Boston by more than $2.6 million due to sports betting, which was partially offset by sports betting declines in Philadelphia. Retail landed in third place, representing 16.1% in the quarter, and retail sales fell 2.2% year-over-year.

Now looking at our revenue categories for fourth quarter consumer services remained our largest revenue category at 27, 6% of total revenue with a drop of 10, 1% year over year.

Our second largest category across entertainment switching site with retail and entertainment was up 17.1% for the quarter at 16 has a half percent of total revenue, we saw entertainments band, increasing Boston by more than $2 6 million due to sports betting which was partially.

Offset by sports betting declines in Philadelphia.

Retail ended in third place, representing 16 point bonkers sharply in the quarter and retail fell two 2% year over year.

Marie: The auto category saw revenues down 4.9%, or $290,000 year-over-year, and the category accounted for 9% of our total revenue. However, we saw increases in the auto category at our Boston, Philadelphia, Augusta, and Fayetteville clusters, as well as a 70% increase in the auto category from our digital agency. Consumer products came in fifth place at 5.5% of total revenue, up 8.3%, and telecom landed in sixth place with 4.1% of total revenue. Now, looking at the full year. Consumer Services accounted for 29.4% of total revenue and was down 2.6%.

The auto category saw a revenue sounds ballpark, 9% or 290000 year over year and the Catholic already accounted for 9% of our total revenue we saw increases in auto at our Boston, Philadelphia, Augusta, and Fayetteville clusters, as well as a 70% increase.

In the auto category for my Digital agency.

Consumer products came in fifth place, that's 5.5% of total revenue up eight 3% and telecom landed in sixth place with four 1% of total revenue.

Although conducted bold here.

Consumer services accounted for 29, 4% of total revenue and was down two 6% retail down one 6% and accounted for 16% of total revenue entertainment increased three 9% and accounted for 15.5% and although increased 1.1 per se.

Marie: Retail was down 1.6% and accounted for 16% of total revenue. Entertainment increased 3.9% and accounted for 15.5%, and Auto increased 1.1% to 9.1% of total revenue for the full year. Corporate GMA expenses for the quarter increased 19.6%, or $800,000, compared to the same quarter a year ago, to $4.9 million. The year-over-year increase in corporate GMA is mostly related to a catch-up of non-cash self-pay compensation and increased corporate digital expenses. Full year corporate GNA increased 1.4% or $245,000, primarily related to corporate digital expenses and cybersecurity costs, partially offset by a reduction in wages. Non-cash stock-based compensation increased $130,000 to $313,000 in the quarter and decreased $213,000 to $846,000 for the full year 2023 and saved $1.4 million in income taxes for the full year.

291% of total revenue for the full year.

Corporate G&A expenses for the quarter increased 19, 6% or 800000 compared to the same quarter a year ago to $4 9 million the year over year increase in corporate G&A is mostly related to a catch up of noncash stock based compensation and increased corporate digital expenses.

Full year, corporate G&A increased 1.4% or 245000, primarily related to a corporate digital expenses and cyber security costs, partially offset by a reduction of wages.

Noncash stock based compensation increased 130000 to 313000 in the quarter and decreased 213000 to 846000 for the full year 2023, and we paid $1 4 million in income taxes for the full year.

Marie: Fourth quarter 2023 operating income increased $39.3 million to $7.6 million compared to a loss of $31.7 million in the year-ago quarter, which was impacted by prior year non-cash impairment charges of $42.4 million related to FTC licenses, goodwill, and franchise rights, which was somewhat offset by current year fourth quarter non-operating income of $6 million related to the dissolution of the overwatch lease. Full-year operating income declined $47.7 million year-over-year to a negative $82 million, again related to a non-cash impairment charge of $99.8 million in 2023 compared to impairment charges of $52.8 million in 2022. Fourth quarter interest expense increased $224,000 year-over-year to $6.8 million, related to advertised interest expense from our divested Wilmington Station. Full-year interest expense was $26.6 million, down from $26.9 million in 2022.

Fourth quarter 2023, operating income increased $39 3 million to $7 6 million compared to a loss of $31 7 million in the year ago quarter, which was impacted by prior year noncash impairment charges of $42 4 million related to.

The FCC licenses and goodwill and franchise right, which was somewhat offset by current year fourth quarter nonoperating income of 6 million related to the dissolution of the Overwatch League full.

Full year operating income declined $47 7 million year over year to a negative 82 million again related to a noncash impairment charge of $99 8 million in the 2023 compared to impairment charges of $52 8 million in 'twenty.

'twenty two.

Fourth quarter interest expense increased 224000 year over year to $6 8 million related to amortize interest expense from our divested Wilmington station.

Full year interest expense was $26 6 million down from $26 9 million in 'twenty 'twenty. Two we ended the year with total debt of 267 million, reflecting 20 million of bond buyback within the fourth quarter and we made our semiannual interest payment on February.

Marie: We ended the year with total debt of $267 million, reflecting $20 million of bond buyback in the fourth quarter, and we made our semiannual interest payments on February 1, 2024. EBITDA for the fourth quarter was $4.7 million, a drop of 52% or $5.1 million from the prior year quarter, and full year EBITDA decreased 18% or $4.5 million compared to 2022. Now excluding politics, EBITDA for the quarter and full year would have been a decline of 17.8% or $910,000 for the quarter and an increase of 9.4% or $1.7 million for the full year. Adjusted net leverage, including at best certain taxes, non-cash compensation, pro forma of our agency build-ups, our July and October risks, and pro forma of our outlaws and Atlanta divestitories were 7.96 times, where debt is Our capital expenditures for the quarter were $1.1 million, compared to the prior year fourth quarter of $2.4 million.

<unk> 'twenty 'twenty four.

EBITDA for the fourth quarter was $4 7 million, a drop of 52% or $5 1 million from the prior year quarter.

And full year, EBITDA decreased 18% or $4 5 million compared to 2022 now excluding political EBITDA for the quarter and full year would have been a decline of 17, 3% or 910000 for the quarter and an increase of nine 4% or one point.

About a million for the full year.

<unk> net leverage including add backs that you have certain taxes noncash compensation pro forma of our agents to build off our July and October risks and pro forma of our outflows and Atlanta divestitures were seven points that 96 times, where debt is roughly.

I think net of cash on hand.

And we ended the quarter with cash on hand of $26 7 million, our capital expenditures for the quarter or $1 1 million compared to prior year fourth quarter of $2 4 million and full year Capex spend was $4 2 million compared to 2022 full year capex spend off.

Marie: And full-year capex spend was $4.2 million compared to 2022 full-year capex spend of $13.4 million, which included the Boston office and studio build-out. Looking into 2024, we expect our capex spend in the range of $4 to $5 million. And with that, I'll turn it back to Caroline.

$13 4 million, which included the Boston office and studio build out.

Looking into 'twenty 'twenty four we expect our capex spend in the range of $4 million to $5 million and with that I'll turn it back to Caroline.

Caroline Beasley: Thank you Marie. While we're looking forward to 24 political revenue, we're laser focused on digital revenue and specifically the strategy that was put in place mid-year 22, which helped drive an 11.4% growth in our digital revenue for the full year. Digital has greatly surpassed national, and we continue our focus on driving revenue and growing this segment. In addition, our multi-platform local content strategy again drove audience growth in the fourth quarter year over year. Our owned and operated audience monthly reach is over 31 million in 2023, and that compares to 27.5 million in 22. This is a 13% overall average monthly audience increase year over year. Now, I would like to note that the digital content industry has experienced a decline in digital audience page views and digital display impressions due to Google's core updates that happened in both the third and fourth quarters.

Murray La we're looking forward to 'twenty for political revenue, we're laser focused on digital revenue and specifically the strategy that was put in place mid year 'twenty, two which helped drive an 11, 4% growth in our digital revenue for the full year digital has greatly surpassed national and we continue our focus.

On driving revenue and growing this segment. In addition, our multiplatform local content strategy again drive audience growth in the fourth quarter year over year, our owned and operated audience monthly reaches over 31 million in 2023 and that compares to $27 5 million.

22. This is a 13% overall average monthly audience increase year over year now I would like to note that the digital content industry has experienced a decline in digital audience page views and digital display impressions due to Google's core updates there has.

And in both third and fourth quarters as we navigate these updates that have limited search engine traffic to digital publishers like ourselves, we're laser focused on the quality of our impressions and our content and leading to a more loyal audience and this focus has started to pay off as a result of the group.

Caroline Beasley: As we navigate these updates that have limited search engine traffic to digital publishers like ourselves, we're laser focused on the quality of our impressions and our content, leading to a more loyal audience, and this focus has started to pay off. As a result of the Google updates in Q4, digital revenue remained relatively flat with higher than expected revenue from our digital audio category because of the initiatives in place to optimize our digital audio impressions, despite lower monthly page views. We've seen increases in CPMs this year. In fact, across our programmatic categories, CPMs have increased 58% since Q1. So while we expect a decline in digital display impressions through the first half of this year, we do expect to continue to grow total digital revenue, and we're optimistic that these strategic updates will help our audience to rebound by the second half of the year. Now, our radio brands continue to maintain dominant positions in Nielsen, where our PPM market share grew by 2% year over year among a key demographic of adults 25-54, and we maintain the highest average PPM cluster share when compared to the other major broadcasters.

We'll update in Q4 digital revenue remains relatively flat with higher than expected revenue from our digital audio category because of the initiatives in place to optimize our digital audio impressions and this is despite lower monthly page views, we've seen increases in C. P M fish.

Here in fact across our programmatic categories C. P ons have increased 58% zinc since Q1, so while we expect a decline in digital display impressions through the first half of 'twenty four we do expect to continue to grow total digital revenue and we're optimistic that these strategic.

Updates will help our audience to rebound by the second half of the year now our radio brands continued to maintain dominant positions in Nielsen, where our P. P. M market share grew by 2% year over year with a key demographic of adults 25, 54, and we maintained the highest average P. P M.

Cluster share when compare to the other major broadcasters.

Caroline Beasley: It's also important to highlight the success of our company-wide Community of Caring Commitment. From creating ongoing public service initiatives focused on a variety of important topics, such as mental health awareness, to making a direct impact on the lives of our listeners and their families, we remain committed to making a difference in the local communities we serve. As an example, this past November, WMMR-FM, Preston and Steve's 26th annual Camp Out for Hunger raised over 1.7 million pounds of food and nearly $1 million in cash to benefit individuals and families in need in the Delaware Valley. It is the single largest food drive of its kind in the entire country.

It's also important to highlight the success of our company wide community of carrying commitment from creating ongoing public service initiatives focused on a variety of important topics such as mental health awareness to making a direct impact in the lives of our listeners and their families. We remain committed.

Making a difference in the local communities. We serve as an example, this past November W. In them are outbound Preston and Steve's twenty-six annual camp out for hunger raised over $1 7 million pounds of food and nearly $1 million in cash to benefit individuals' N T.

Families in need in the Delaware Valley. It is the single largest food drive of its kind in the entire country.

Caroline Beasley: Now let's take a look at first quarter 2024. As of today, we're pacing down 4.2 percent compared to the prior year, and on a same station basis, we're pacing down 2.3 percent. As of this writing, we have not received any significant political dollars in the first quarter.

Now, let's take a look at first quarter 2024 as of today, we're pacing down four 2% compared to prior year and on a same station basis were pacing down two 3% as of this writing we have not received any significant political dollars in the first quarter.

Caroline Beasley: As always, we're very mindful of the current environment, and we will be monitoring our revenue pacings and managing expenses based on that. Our goal remains to improve margins, reduce leverage, and generate free cash flow. So with that, I thank you very much for being on the call today. I do want to acknowledge our team members across the company for everything that they've done and are doing. Maria, I do think that we do have some questions, so if we could open it up, that would be great. Absolutely. Most of the questions that we received were addressed in our prepared notes, but we have two additional questions that I will address at this point. The first one Caroline asked me to update us on political expectations for 2024. Sure, even though the first quarter is light, particularly in Pennsylvania where we thought that we would be receiving more political dollars in the first quarter than we actually are going to be, we do still seem to think that we will generate $11 million for the full year. That will be primarily in the third and fourth quarters.

As always we're very mindful of the current environment and we will be monitoring our revenue pacings and managing expenses based on such our goal remains to improve margins reduce leverage and generate free cash flow. So with that I. Thank you very much for being on the call today.

I do want to acknowledge our team members across the company for everything that they've done and are doing and Murray I do think that we do have some questions. So if we could open it up that would be great. Absolutely. Most of the questions that we received the war addressed in our for our in our prepared notes that we have to adapt.

No question that I will address at this point. The first one Caroline is can you update us on political expectations for 'twenty to 'twenty four.

Sure even the first quarter is light, particularly in Pennsylvania, where we thought that we would be receiving more political dollars in first quarter than we actually are going to be we do we do still seem to think that we will generate 11 billion for the full year that will be primarily in third.

And fourth quarters.

Caroline Beasley: Thank you, and the last question then is, does the company own any DMI shares? Yes, we did earn BMI shares, and we will receive approximately $6 million as a result of this. Great, thank you. Alright, thank you very much, and, as always, should you have any questions, please feel free to contact either Marie or myself. I hope you all have a great day. Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

Thank you and the last question that is does the company on and you'd be on my shares yeah.

Great. Thank you.

Alright, Thank you very much and as always should you have any questions. Please feel free to contact either Marie or myself.

Hope you all have a great day.

Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

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