Q2 2024 Urban One Inc Earnings Call

Quoted.

Speaker Change: During this conference call urban one will be sharing with you certain projections or other forward looking statements regarding future events or its future performance urban one cautions you that certain factors, including risks and uncertainties referred to in the 10-Ks 10, Qs and other reports it periodically files with the Securities and Exchange Commission could cause the company's acts.

Operator: And with that, I will hand back to Thank you, Peter. Operator, we can go to the lines for Q&A. Ladies and gentlemen, if you'd like to ask a question, please press one then zero on your phone's keypad. You're on your indication that you've been placing in Q. And I'm repeating that one zero process when we move you from the Q. Once again, if you have questions, please press one then zero. And at this time, we do not have any callers queuing up. Okay. I'll take that back. We're just a little bit late.

Your conference will begin momentarily. Please continue to hold.

Speaker Change: Our results to differ materially from those indicated by its projections or forward looking statements. This call will be private will present information as of August eight 2024. Please note that urban one disclaims any duty to update any forward looking statements made in the presentation. In this call everyone may also.

Speaker Change: Discuss some non-GAAP financial measures in talking about its performance. These measures will be reconciled to GAAP either during the course of this call or in the company's press release, which can be found on its website at www dot urban one dot com.

Operator: Ladies and gentlemen, thank you for standing by, and welcome to Urban One's second quarter earnings call. All participants are in a listen-only mode, and this call is being recorded. During this conference call, Urban One will be sharing with you certain projections or other forward-looking statements regarding future events or its future performance. However, Urban One cautions you that certain factors, including risks and uncertainties, referred to in the 10-Ks, 10-Qs, and other reports it periodically files with the Securities and Exchange Commission could cause the company's actual results to differ materially from those indicated by its projections or forward-looking statements. This call will present information as of August 8, 2024. Please note that Urban One disclaims any duty to update any forward-looking statements made in the presentation.

Operator: Ladies and gentlemen, thank you for standing by, and welcome to Urban One's second quarter earnings call. All participants are in a listen-only mode, and this call is being recorded.

Operator: In this call, Urban One may also discuss some non-GAAP financial measures in talking about its performance. These measures will be reconciled to GAAP either during the course of this call or in the company's press release, which can be found on its website at www.urbanone.com. A replay of this conference call will be available from 5 p.m. Eastern Time today, August 8, 2024, until 11:59 or midnight on August 15, 2024. Callers may access the replay by calling 866-207-1041 from the U.S. International callers call direct at 402-9700-8472. The replay access code is 1733886.

Operator: Access to live audio and a replay of the conference call will also be available on Urban One's corporate website at www.urbanone.com. The replay will be made available on the website for seven days after the call. No other recordings or copies of this call are authorized or may be relied upon. At this time, I will now turn the call over to Alfred Liggins, as chief executive officer of Urban One, who is also joined by Peter D. Thompson, chief financial officer. Please go ahead.

Dominic Laib: All right, we'll go first to Dominic Laib with Sleifel. You go ahead, please. Hey guys, thanks for taking the questions. Yeah, I had two things, a couple of things for me. One, could you just comment on digital has kind of been trending a week or a couple of quarters now? Can you just kind of offer some guidance on what that market's looking like? Are you guys expecting that to pick up versus kind of like a national local area or kind of your thoughts on that?

Speaker Change: Ladies and gentlemen, thank you for standing by, and welcome to Urban One's second quarter earnings call. All participants are in a listen-only mode, and this call is being recorded. During this conference call, Urban One will be sharing with you certain projections or other forward-looking statements regarding future events or its future performance.

Operator: During this conference call, Urban One will be sharing with you certain projections or other forward-looking statements regarding future events or its future performance. Urban One cautions you that certain factors, including risks and uncertainties, referred to in the 10-Ks, 10-Qs, and reports it periodically files with the Securities and Exchange Commission could cause the company's actual results to differ materially from those indicated by its projections or forward-looking statements. This call will present information as of August 8, 2024. Please note that Urban One disclaims any duty to update any forward-looking statements made in the presentation.

Speaker Change: A replay of this conference call will be available from five P. M. Eastern time today August eight 2024 until 11.

Dominic Laib: Yeah. Yeah, digital, you know, there's been weaker demand in digital, you know, associated with, you know, the pullback in national advertising, but also a pullback in, you know, D. E, you know, the first in inclusion add dollars that, you know, we, you know, we felt that wave was ultimately going to, I'm going to crest on the effect by the national ad pullback. However, the second half is looking, is looking better. And, you know, we're also optimistic there that we're going to see what political add dollars than we had budgeted.

Speaker Change: 11, 59 am midnight on August 15th 2024.

Urban One cautions you that certain factors, including risks and uncertainties, referred to in the 10-Ks, 10-Qs, and other reports it periodically files with the Securities and Exchange Commission could cause the company's actual results to differ materially from those indicated by its projections or forward-looking statements. This call will present information as of August 8, 2024. Please note that Urban One disclaims...

Speaker Change: Callers may access the replay by calling at 662071041 from the U S International callers.

Speaker Change: Called direct at four zero to 90 700847.

Operator: In this call, Urban One may also discuss some non-GAAP financial measures in talking about its performance. These financial measures will be reconciled to GAAP either during the course of this call or in the company's press release, which can be found on its website at www.urbanone.com. A replay of this conference call will be available from 5 p.m. ET today, August 8, 2024, until 11:59 p.m. or midnight on August 15, 2024.

Speaker Change: Replay access code is 107 33886 access to live audio and a replay of the conference call will also be available on urban one's corporate website at www Dot urban one dot com.

Any duty to update any forward-looking statements made in the presentation.

Speaker Change: The replay will be made available on the website for seven days after the call no other recordings or copies of this call are authorized or may be relied upon at this time I'll now turn the call over to Alfred Liggins.

In this call, Urban One may also discuss some non-GAAP financial measures. In talking about its performance, these measures will be reconciled to GAAP either during the course of this call or in the company's press release, which can be found on its website at www.urbanone.com.

Alfred Liggins: As Chief Executive Officer of Urban one who is also joined by Peter D. Thompson Chief Financial Officer. Please go ahead.

A replay of this conference call will be available from 5 p.m. Eastern Time today, August 8, 2024, until 1159 or midnight on August 15, 2024.

Alfred Liggins: Thank you very much operator, and welcome everybody to our Q2 results conference call also joining Peter and I are Karen Wishart, our chief administrative officer, Jody Driller, Who's the Chief Financial Officer at TV, One and Christopher Simpson Who's our general counsel.

Operator: Callers may access the replay by calling 866-207-1041 from the U.S., or call direct at F402 9700847. The replay access code is 1733886. Access to live audio and a replay of the conference call will also be available on Urban One's corporate website at www.urbanone.com. The replay will be made available on the website for seven days after the call. No other recordings or copies of this call are authorized or may be relied upon. This time, I'll now turn the call over to Alfred Liggins, as Chief Executive Officer of Urban One, who is also joined by Peter D. Thompson, Chief Financial Officer. Please go ahead.

Dominic Laib: So, you know, today, you know, we are still forecasting our digital segment to be its budget, which is, you know, off of last year, but not that, but not that far off. So, we're feeling decent about the digital, our TV business is really what's, what's, what's, what's, what's, what's hurt nice. Yeah. Okay.

Callers may access the replay by calling 866-207-1041 from the U.S. International Callers

Call direct at 402-9700-847

Speaker Change: We've sent out the press release on our our Q2 results largely in line with how we've guided.

The replay access code is 1733886. Access to live audio and a replay of the conference call will also be available on Urban One's corporate website at www.urbanone.com, and the replay will be made available on the website for seven days after the call.

Speaker Change: In terms of the different segment.

Speaker Change: Radio coming in at a.

Alfred Liggins: Thank you. And, um, based off the back to you guys, keeping your, you bit of guys, I think you gave range of like one 10 to 120 last calls. That's sort of still in one. Yeah. I said at the top of the call, you know, we're more likely to be on the lower end of that guidance, but yes, we're, you know, we're maintaining our current guidance. Okay. Sorry.

Speaker Change: Minus three with political.

Speaker Change: Five six now on a same station basis.

Alfred Liggins: No other recordings or copies of this call are authorized or may be relied upon. At this time, I'll now turn the call over to Alfred Liggins, Chief Executive Officer of Urban One, who is also joined by Peter D. Thompson, Chief Financial Officer. Please go ahead.

Speaker Change: X political that's not including.

Speaker Change: The acquisitions that we've made with Houston, Texas.

Alfred Liggins: Thank you very much, Operator, and welcome everybody to our Q2 results conference call. Also joining Peter and me are Karen Wishart, our Chief Administrative Officer, Jody Drewer, who's the Chief Financial Officer at TV One, and Christopher Simpson, who's our General Counsel. We've sent out the press release on our Q2 results, largely in line with, you know, how we've guided in terms of the different segments. Radio, you know, coming in at minus, you know, three, you know, with political, you know, minus 5.6, you know, on a same-station basis, ex-political. That's not including the acquisitions that we made with Houston, Texas.

Alfred Liggins: Thank you very much, Operator, and welcome everybody to our Q2 results conference call. Also joining Peter and me are Karen Wishart, our Chief Administrative Officer; Jody Drewer, who's the Chief Financial Officer at TV One; and Christopher Simpson, who's our General Counsel.

Speaker Change: Ben.

Speaker Change: A challenging environment and our cable television segment.

Alfred Liggins: Thank you very much, Operator, and welcome, everybody, to our Q2 results conference call. Also joining Peter and I are Karen Wishart, our Chief Administrative Officer.

Dominic Laib: I joined a little late here. Yeah. A couple more things. The debt buybacks. You guys continue kind of continuing a similar cadence in terms of repurchases. I don't want to commit to the cadence, you know, because the cadence really kind of depends on the cadence depends on where, you know, we see the debt trading. Yeah. Um, yeah. But, uh, you can, uh, you can rest assured that, uh, our primary focus is, is, is to make sure that we're managing, you know, our leverage.

Speaker Change: Mostly because of churn and audience delivery.

Speaker Change: Something that's happening throughout the pay TV ecosystem, Peter is going to go into more detail about those results in Q2.

Speaker Change: Jody Drewer, who's the Chief Financial Officer at TV One, and Christopher Simpson, who's our General Counsel.

Alfred Liggins: We've sent out the press release on our Q2 results, largely in line with, you know, how we've guided in terms of the different segments, radio, you know, coming in at minus, you know, three, you know, with political, you know, minus 5.6, you know, on a same station basis, ex-political, that's not including the acquisitions that we made with Houston, Texas. It's, you know, been, you know, a challenging environment in our cable television segment, mostly because of churn and audience delivery, something that's happening throughout the pay TV ecosystem. Peter's going to go into more detail about those results in Q2 in his comments.

Speaker Change: In his comments Q3 radio.

Speaker Change: We've sent out the press release on our Q2 results largely in line with, you know, how we've guided in terms of the different segments.

Speaker Change: Currently.

Speaker Change: <unk> is pacing.

Speaker Change: Down six 9% on a same station basis.

Speaker Change: It's going to be up 7%.

Speaker Change: radio, you know, coming in at...

As reported if you.

Speaker Change: Crude.

Speaker Change: minus, you know, three, you know, with political, you know, minus 5.6, you know, on a same-station basis, ex-political, that's not including the acquisitions that we made with Houston, Texas. It's, you know, been, you know, a challenging environment in our cable television segment, mostly because of churn and audience delivery, something that's happening throughout the pay TV ecosystem. Peter's going to go into more detail about those results in Q2 in his comments. Q3 radio.

Speaker Change: Political it's pacing down mid single digits. However, we are.

Speaker Change: Feeling pretty optimistic about.

Speaker Change: The strength of political and we're starting to see.

Alfred Liggins: It's, you know, been, you know, a challenging environment in our cable television segment, mostly because of churn and audience delivery, something that's happening throughout the pay TV ecosystem. Peter's going to go into more detail about those results in his comments. Next, Q3 radio is currently pacing down 6.9% on the same station basis. It's going to be up 7%, you know, as reported. But if you include Politico, it's pacing down mid single digits.

Dominic Laib: And, and, and looking to march that down and it's challenging right now with EBITDA, you know, following, following, right? You know, so quite frankly, you know, being able to buy, you know, uh, debt back, uh, opportunistically, at, at, at attractive prices, uh, is important. So, you know, very high priority for us. That's the reason you saw us buy 35 million dollars. Um, Worth a debt right before a window closed, that ended up being a negotiation to buy that piece of debt at $35 million, which is probably a week long negotiation that only closed right before the window was happening. So, we're trying to be opportunistic and smart about it. Okay. Got it. That makes sense.

Speaker Change: Registrations and in orders coming in on hold we actually think it's going to be much more robust than we have currently forecasted.

Speaker Change: <unk> real time.

Speaker Change: Action.

Speaker Change: Right now in terms of getting that laid in.

Speaker Change: The new political landscape and the closeness of the current race I think is going to bode well for us.

Alfred Liggins: Q3 radio is currently pacing down 6.9% on the same station basis. It's going to be up 7%, you know, as reported. If you include Politico, it's pacing down in the mid single digits. However, we are, you know, feeling pretty optimistic about the strength of politics, and we're starting to see registrations and orders coming in on hold. We actually think it's going to be much more robust than we have currently forecasted. It's real-time action right now in terms of getting it laid in. The new political landscape and the closeness of the current race, I think, are going to bode well for us, you know, given our audience. So that is yet to be determined.

Speaker Change: Given our audience so.

Speaker Change: currently is pacing down 6.9% on the same station basis.

Speaker Change: That is.

Speaker Change: Yet to be determined.

Speaker Change: We're not forecasting a big.

Speaker Change: It's going to be up 7%, you know, as reported, if you include Politico, it's pacing down mid single digits. However, we are, you know,

The beat on our political budget as of yet, but yes, but we're very optimistic but even with the optimism in political.

Alfred Liggins: However, we are, you know, feeling pretty optimistic about the strength of politics, and we're starting to see registrations and orders coming in on hold. We actually think it's going to be much more robust than we have currently forecasted. It's real-time action right now in terms of getting it laid in. The new political landscape and the closeness of the current race, I think is going to bode well for us, you know, given our audience. So that is yet to be determined.

Speaker Change: Political ad spend coming.

Dominic Laib: Yeah, and then just last time.

Dominic Laib: I think you guys mentioned, maybe you might have commented this, but last quarter you guys mentioned you were under NDA to potentially purchase Bounce for me WScript, so the effect you can offer any commentary, is there any update regarding those? No. There's a process going on, you know, we're involved in it and, you know, no update at just one time. Okay. Got it. Okay. Appreciate the answer to the questions.

Peter: We're feeling pretty optimistic about the strength of political, and we're starting to see registrations and orders coming in on hold. We actually think it's going to be much more robust than we have currently forecasted. It's real-time.

Speaker Change: There is still softness in our cable TV segment, which we have to.

Speaker Change: Address.

Speaker Change: Ultimately, we've got to find more impressions.

Speaker Change: Offsetting the churn that we're experiencing and we've got upside coming in terms of.

Speaker Change: Our connected TV offering as we switch ad servers.

Peter: action, you know, right now in terms of getting it laid in, the new political landscape and the closeness of the current race I think is going to bode well for us.

Speaker Change: That will allow us to better monetize the CTV inventory that we have on some of the new over the top platforms that's not.

Dominic Laib: That's it from me. Thank you.

Hal Steiner: Our next question comes from Hal Steier with me and Pete, please go ahead. Hey guys, good morning. Thank you for taking the questions. So, my first one was, I was just, do you have any early thoughts on some of the things you could try to do in TV to sort of improve audience and audience delivery? Is maybe like changing measurement providers a possible solution? And I think you also commented on sort of CTV ad upside, you could just share a little more color or help quantify that at all. That would be very helpful. Thank you. Yeah.

Alfred Liggins: You know, we're not, you know, we're not forecasting a big beat on our political budget as yet. But, you know, but we're very optimistic. But even with the optimism and the increase in political ad spend coming, there's still softness in our cable television segment, which we have to address. And ultimately, we've got to find more impressions to offset the turn that we're experiencing. And we've got upside coming in terms of our connected TV offering as we switch ad servers, that will allow us to better monetize the CTV inventory that we have on some of the new, you know, over-the-top platforms that aren't in place yet.

Speaker Change: In place yet we haven't had the benefit of that so far this year, but we will.

Speaker Change: You know, given our audience, so that is yet to be determined. You know, we're not, you know, we're not forecasting a big

Speaker Change: In the second half of this year, but given the softness in the cable TV segment.

Alfred Liggins: You know, we're not, you know, we're not forecasting a big beat on our political budget as yet. But, you know, but we're very optimistic. But even with the optimism and the increase in political ad spend coming, there's still softness in our cable television segment, which we have to address. And ultimately, we've got to find more impressions to offset the turn that we're experiencing. And we've got upside coming in terms of our connected TV offering as we switch ad servers, that will allow us to better monetize the CTV inventory that we have on some of the new, you know, over-the-top platforms that aren't in place yet. We haven't had the benefit of that so far this year, but we will in the second half of this year.

I think that we are more likely to finish 2024 at the lower end of our EBITDA guidance, which was 110 to 120.

Alfred Liggins: beat on our political budget as of yet, but yeah, but we're very optimistic.

Speaker Change: And again, we're not.

Alfred Liggins: but even with the optimism and in political asts spbeen coming

Speaker Change: <unk>.

Speaker Change: We're not sure exactly what we think that the.

Speaker Change: There's still softness in our cable television segment, which we have to address. Ultimately, we've got to find more impressions.

Speaker Change: The upside on political is yet we think there is some.

Alfred Liggins: So, we are looking at different measurement solutions and we're in the middle of the up front right now, so I don't want to have a public, a public adjudication of our upfront strategy in our audience measurement strategy, but suffice it to say, yes, we are, we are engaged in those kinds of conversations and looking at several different alternatives. One of which has more of a positive impact in others, but that's an active negotiation right now, because it's not just us switching audience measurement, it's getting the advertising holding companies and the clients to actually, you know, accept a discurrency too. And so, that's a real-time negotiation as we speak, but the answer to your questions is just looking at that.

Speaker Change: But.

Speaker Change: We just want it.

Speaker Change: to offset the turnurn that we're experience and and we've got upside coming in terms of our connected t v offering as we switch add servers that will allow us to better monetize the c t v inventory that we have on some of the new you know over the top platforms that's not in place yet we haven't have the benefit of that so far this year but we will in the second half of this year but given the softnessthis in the cable t v segment

Speaker Change: Give.

Speaker Change: An indication that.

Speaker Change: We feel at this point that more likely depend on the finish on the lower end of the guidance then.

Speaker Change: And then the upper end of the guidance so.

Speaker Change: We can talk more about that during the Q&A.

Speaker Change: And so at this point I'd like to turn it over to Peter to go into the details of the numbers and then we can switch to Q&A Peter Yes.

Alfred Liggins: We haven't had the benefit of that so far this year, but we will in the second half of this year. But given the softness in the cable TV segment, I think that we are more likely to finish 2024 at the lower end of our EBITDA guidance, which was 110 to 120. You know, and again, we're not, you know, we're not sure exactly what we think the upside on politics is yet.

Alfred Liggins: But given the softness in the cable TV segment, I think that we are more likely to finish 2024 at the lower end of our EBITDA guidance, which was 110 to 120. You know, and again, we're not, you know, we're not sure exactly what we think the upside on politics is yet. We think there is some, you know, but, you know, we, you know, just want to, you know, give, you know, an indication that, you know, we feel at this point that, you know, we're more likely to finish on the lower end of the guidance than the upper end of the guidance.

Peter: Yes. Thank you Alfred I'll, just walk through the press release numbers. So consolidated net revenue was down by nine 2% year over year for the quarter ended June 32024.

Speaker Change: I think that we are more likely to finish 2024 at the lower end of our EBITDA guidance, which was 110 to 120. And again, we're not...

Speaker Change: <unk> $117 $7 million.

Peter: Net revenue for the radio broadcasting segment was $42 million.

Speaker Change: We're not sure exactly what we think that the Upside on political is yet. We think there is some you know, but you know, but we you know, just want to

Peter: An increase of seven 2% year over year, but was down 3% on a same station basis.

Alfred Liggins: We think there is some, you know, but you know, we just want to, you know, give, you know, an indication that, you know, we feel at this point that, you know, we're more likely to finish on the lower end of the guidance than the upper end of the guidance. So, we can, you know, talk more about that during the Q&A. And so, at this point, I'd like to turn it over to Peter to go into the details of the numbers, and then we can switch to Q&A.

Peter: Excluding political net.

Speaker Change: Revenue was up by four 7% year over year, but down by five 6% on a same station basis.

Peter: give an indication that we feel at this point that we're more likely to finish on the lower end of the guidance than the upper end of the guidance. So we can talk more about that during the Q and A. And so at this point, I'd like to turn it over to Peter to go into the details of the numbers and then we can switch to Q and A.

Alfred Liggins: So, we can, you know, talk more about that during the Q&A. And so, at this point, I'd like to turn it over to Peter to go into the details of the numbers, and then we can switch to Q&A. Peter?

Alfred Liggins: Second, on CTV, we basically were on an ad server that didn't allow us to transact on a programmatic level and had some, you know, other limitations that really severely limited our ability to monetize that inventory. It has taken us, you know, don't ask me all of the why, so it has taken six months actually for us to identify, negotiate, and then ultimately get activated a new ad server that will allow us to more effectively monetize it, and we're at the, you know, we're almost at the end of that road.

Speaker Change: According to Miller Kaplan.

Local advertising sales were down eight 5% against the market was down seven 1%.

Speaker Change: National AD sales.

Speaker Change: Down one 6%.

Peter Thompson: Yeah, thank you, Alfred. I'll just walk you through the press release number. So consolidated net revenue was down by 9.2% year over year for the quarter ended June 30, 2024, at approximately $117.7 million. Net revenue for the radio broadcasting segment was $42 million, which was an increase of 7.2% year-over-year, but was down 3% on a same-station basis. Excluding politics, net revenue was up by 4.7% year over year, but down by 5.6% on the same station. They were down 1.6% against a market that was up 7%.

Peter Thompson: Yeah, thank you, Alfred. I'll just walk you through the press release number. So consolidated net revenue was down by 9.2% year over year for the quarter ended June 30, 2024, at approximately $117.7 million. Net revenue for the radio broadcasting segment was $42 million, which was an increase of 7.2% year over year, but was down 3% on the same station base. Excluding politics, revenue was up by 4.7% year over year, but down by 5.6% on the same station.

Speaker Change: Against the market was up 7%.

Peter: Peter

Speaker Change: Net revenue for reach media segment was $18 $9 million in the second quarter down five 6% from the prior year and adjusted EBITDA was $3 $7 million for the quarter down from $4 6 million last year.

Peter: yes thank you off and i'll just walk through press release numbers so consolidated in that revenue was down by nine point two percent year-over year for the quarter in june thirethof two thousand and twenty-four but approximately one hundred and seventeen point seven million dollars

Speaker Change: Net revenue for the radio broadcasting segment was $42 million, which was an increase of 7.2% year-over-year, but was down 3% on a same-station basis.

Speaker Change: Net revenues for the digital segment decreased by 16% in second quarter to $15 $9 million.

Alfred Liggins: I think it goes live within the next, you know, 30 days or so. Jody, do you know when, you know, the new CTV ad server goes live by, I'll hand this month, this month, this month, yeah. So, you know, people, you know, advertisers like CTV a lot because they could do it programatically, and the ad server that we were on didn't allow us to do that, you know, so, so that's just, you know, that's real, you just... Just moving to a system that allows us to monetize it the way the majority of advertisers want to do business is tangible upside just because we haven't been able to participate in that marketplace. So that's the elaboration on that. And obviously more and more at dollars are moving to connect the television too. Gotcha. Okay, that's helpful.

Speaker Change: Direct national sales were down driven by decreased advertiser demand.

Speaker Change: Excluding political, net revenue is up by 4.7% year over year, but down by 5.6% on a same station basis.

Speaker Change: <unk> television and broadcast revenues showed growth compared to last year, adjusted EBITDA was $2 $9 million down 52, 5%.

Peter Thompson: According to Miller Kaplan, our local advertising sales were down 8.5% against the market that was down 7.1% nationally on sales; revenue for the reach media segment was $18.9 million in the second quarter, down 5.6% from the prior year. And just to leave it out, revenue for the reach media segment was $3.7 million for the quarter, down from $4.6 million last year. Net revenues for the digital segment decreased by 16% in the second quarter to $15.9 million.

Speaker Change: According to Miller Kaplan, our local advertising sales were down 8.5 percent against a market that was down 7.1 percent. National ad sales were down 1.6 percent against a market that was up 7 percent.

Speaker Change: Recognized approximately $41 $5 million of revenue from our cable television segment during the quarter, a decrease of 29% cable TV advertising revenue was down 26, 7%.

Peter Thompson: Net revenue for the Reach Media segment was $18.9 million in the second quarter, down 5.6% from the prior year, and adjusted EBITDA was $3.7 million for the quarter, down from $4.6 million last year. Net revenues for the digital segment decreased by 16% in the second quarter to $15.9 million.

Speaker Change: Delivery erosion continued down 30% and total day persons 25, 54, resulting in an increase of $4 $7 million to.

Speaker Change: Net revenue for the Reach Media segment was $18.9 million in the second quarter, down 5.6% from the prior year. Adjusted EBITDA was $3.7 million for the quarter, down from $4.6 million last year.

Speaker Change: Two.

Speaker Change: Audience deficiency reserve.

Speaker Change: Increased volume through promo conversions, partially offset the delivery shortfall.

Speaker Change: Net revenues for the digital segment decreased by 16% in second quarter to $15.9 million.

Peter Thompson: Direct national sales were down, driven by decreased advertiser demand, but connected TV and podcast revenues showed growth compared to last year. Just at EBITDA was $2.9 million, down 52.5%. We recognized approximately $41.5 million of revenue from our cable television segment during the quarter, a decrease of 20.9%. Cable TV advertising revenue is down 26.7%. Delivery erosion continued, down 30% in total day, persons 25, 54, resulting in an increase of $4.7 million to our audience deficiency reserve.

Peter Thompson: Direct national sales were down, driven by decreased advertiser demand, but connected TV and podcast revenues showed growth compared to last year, just as EBITDA was $2.9 million, down 52.5%. We recognized approximately $41.5 million in revenue from our cable television segment during the quarter, a decrease of 20.9%. Cable TV advertising revenue was down 26.7%. Delivery erosion continued to decline 30% in total day, persons 25, 54, resulting in an increase of $4.7 million to our audience deficiency.

Speaker Change: Cable TV affiliate revenue was down by 12, 9% with contractual rate increases being offset.

Speaker Change: Direct national sales were down, driven by decreased advertiser demand, but connected TV and podcast revenues showed growth compared to last year. Just at EBITDA was 2.9 million dollars down 52 and a half percent.

Alfred Liggins: And then I guess just on financial policy, with the operating environment being a little bit weaker, do you sort of feel like it's more prudent to maybe hoard more cash or it's like sort of the minimum cash you want to hold in the business maybe higher than it was before? And I heard your comments on debt buybacks, but I maybe also just wonder, how do you have your M&A in the current environment?

Speaker Change: Approximately $3 $3 million and net subscriber.

Speaker Change: Churn impact.

Cable subscribers with TV, one as measured by Nielsen finished second quarter with $39 8 million compared to $47 million at the end of Q1, Cleo TV 38 million Nielsen subscribers.

Speaker Change: We recognized approximately $41.5 million of revenue from our cable television segment during the quarter, a decrease of 20.9%. Cable TV advertising revenue is down 26.7%.

Operating expenses, excluding depreciation and amortization stock based compensation.

Alfred Liggins: We view M&A, and I think I've said it before, look in the current environment, you can't count on top line growth, right? Not in the media business, right? We were a software company, you know, maybe so M&A has got to be, you know, not only highly accretive, it's got to be de-levering, and Peter and I were actually talking about it this morning before, you know, the call. And any M&A deal that you do that's de-levering out the box, you've got to assume that there's going to continue to be downward top line pressure, you know, in the industry, right?

Speaker Change: delivery erosion continued to down thirty percent in total day persons twenty five fifty four resulting in an increase four point seven million dollars

Speaker Change: And.

Speaker Change: Goodwill intangible assets and long lived assets.

Speaker Change: Decreased.

Speaker Change: Approximately $93 3 million for the quarter end.

Peter Thompson: Higher volume through promo conversions partially offset the delivery shortfall. Commercial TV affiliate revenue was down by 12.9% with contractual rate increases being offset by approximately $3.3 million in net subscriber churn impact. Cable subscribers for TV One as measured by Nielsen finished the second quarter at 39.8 million compared to 40.7 million at the end of Q1. And Clio TV had 38 million Nielsen subscribers.

Speaker Change: to our audience deficiency reserve.

Speaker Change: June 30 of 2024 down 0.4% from the prior year.

Speaker Change: Increased volume through promo conversions, partially offset the delivery shortfall.

Speaker Change: Radio operating expenses were up six 4% or $1 $9 million, the Houston Radio acquisition, which was effective August one 2023 added approximately $2 million expense year over year.

Speaker Change: cable TV affiliate revenue was down by 12.9% with contractual rate increases being offset by approximately 3.3 million dollars in net subscriber churn impact

Speaker Change: On a same station basis event expenses.

Speaker Change: $700000 driven by two of the company's Tentpole events.

Speaker Change: Cable subscribers for TV One, as measured by Nielsen, finished second quarter at 39.8 million, compared to 40.7 million at the end of Q1. And Clio TV had 38 million Nielsen subscribers.

Speaker Change: Dash and Atlanta, and women's empowerment in Raleigh, while variable expenses related to revenue such as sales commissions bonus compensation bad debt.

Peter Thompson: Operating expenses, excluding depreciation and amortization, stop-based compensation, and any talent of goodwill intangible assets from long-life assets, decreased to approximately $93.3 million for the quarter ended June 30, 2024, down 0.4% from the prior year. Radio operating expenses were up 6.4% or $1.9 million. The Houston radio acquisition, which was effective August 1, 2023, added approximately $2 million in expenses year over year. On a same station basis, event expenses were up $700,000, driven by two of the company's tentpole events, Birthday Bash in Atlanta and Women's Empowerment in Raleigh.

Peter Thompson: Operating expenses, excluding depreciation and amortization, stock-based compensation, and impairment of goodwill, intangible assets, and long-lived assets, decreased to approximately $93.3 million for the quarter ended June 30, 2024, down 0.4% from the prior year; radio operating expenses were up 6.4% or $1.9 million. The Houston radio acquisition, which was effective August 1st, 2023, added approximately $2 million of expense year over year. On a same station basis, event expenses were up $700,000, driven by two of the company's tentpole events, Birthday Bash in Atlanta and Women's Empowerment in Raleigh.

Alfred Liggins: You know, whether it's radio or television. And so you've got to take that into account, you know, when you're, you know, figuring out what that M&A does to you from a de-levering standpoint. So very comfortable with our Houston acquisition, you know, last year, and I'm in the Annapolis acquisition and radio. And so that's how we think about it, you know. You know, you can, you know, expect us not to do anything, you know, that is contrary to that, because that would be way too risky.

Speaker Change: Operating expenses, excluding depreciation and amortization, stock based compensation and impairment of goodwill, intangible assets and long-lived assets.

Speaker Change: National Rep fees were all down marketing costs were also down.

Speaker Change: Operating expenses were down by one 3% driven by reduced talent compensation and affiliated station feeds.

Speaker Change: Decreased to approximately $93.3 million for the quarter ended June 30th, 2024, down 0.4% from the prior year.

Speaker Change: Operating expenses in the digital segment were up 1% driven by increased cross platform marketing expenses and third party cost of sales on audience extension revenue for digital audio.

Speaker Change: Radio operating expenses were up 6.4% or 1.9 million dollars. The Houston radio acquisition, which was effective August 1st, 2023, added approximately two million dollars expense year-over-year.

Speaker Change: Operating.

Speaker Change: Expenses in the cable TV segment were down four 7% year over year, driven by about $800000 favorable programming expense related to acquisitions that expired in 2023.

Alfred Liggins: And we are, again, conscious of the fact that it's not just something de-levering day one, you know, is it going to continue to be de-levering, you know, with, you know, with the downward, you know, trend, you know, from an industry standpoint. Finding those deals is hard, but my sense is they will come about because everybody's going to kind of got the same problem. And, you know, we're, you know, we're substantially free cash flow, you know, positive, you know, today, the thing that reducing debt, particularly reducing debt at a discount does it also increases our free cash flow, right?

Speaker Change: on the same station basis.

Speaker Change: Event expenses were all

Speaker Change: seven hundred thousand dollars

The reduced sales and marketing expense, which was offset by increased operations costs associated with connected TV Vod support.

Speaker Change: driven by two of the company's tentpole events, Birthday Bash in Atlanta and Women's Empowerment in Raleigh. While variable expenses related to revenues such as sales commissions, bonus compensation, bad debt and national rep fees were all down, the marketing costs were also down.

Peter Thompson: While variable expenses related to revenue, such as sales commissions, bonus compensation, bad debt, and national rep fees were all down, marketing costs were also down. REACH operating expenses were down by 1.3%, driven by reduced talent compensation and affiliate station fees. Operating expenses in the digital segment were up one and a half percent, driven by increased cross-platform marketing expenses and third-party cost of sales on audience extension revenue for digital audiences.

Peter Thompson: While variable expenses related to revenues such as sales commissions, bonus compensation, bad debt, and national rep fees were all down, marketing costs were also down. REACH operating expenses were down by 1.3%, driven by reduced talent compensation and affiliate station fees. Operating expenses in the digital segment were up one and a half percent, driven by increased cross-platform marketing expenses and third-party cost of sales on audience extension revenue for digital audio.

Speaker Change: Operating expenses in the corporate and elimination segment were down by approximately $900000, primarily as a result of.

Speaker Change: Reach operating expenses were down by 1.3% driven by reduced talent compensation and affiliate station fees.

Speaker Change: $4 $5 million decrease for the CEO is TV One award.

Speaker Change: Offset by a $3 million increase in third party consulting in order to expenses.

Speaker Change: Operating expenses in the digital segment were up one and a half percent driven by increased cross-platform marketing expenses and third-party cost of sales on audience extension revenue for digital audio.

Speaker Change: For adjusted EBITDA, we added back $4 1 million.

Speaker Change: The nonrecurring professional fees related to the remediation and all the efforts.

Peter Thompson: Operating expenses in the cable TV segment were down 4.7% year-over-year, driven by about an $800,000 favorable programming expense related to acquisitions that expired in 2023 and reduced sales and marketing expense, which was offset by increased operations costs associated with connected TV and VOD support. Operating expenses in the corporate and elimination segment were down by approximately $900,000, primarily as a result of a $4.5 million decrease for the CEO's TV One Award, offset by a $3 million increase in third-party consulting and audit expenses.

Peter Thompson: Operating expenses in the cable TV segment were down 4.7% year-over-year, driven by about an $800,000 favorable programming expense related to acquisitions that expired in 2023 and reduced sales and marketing expense, which was offset by increased operations costs associated with connected TV and VOD support. Operating expenses in the corporate and elimination segment were down by approximately $900,000, primarily as a result of a $4.5 million decrease for the CEO's TV One Award, offset by a $3 million increase in third-party consulting and audit expenses. We added back $4.1 million for non-recurring professional fees related to the mediation and order efforts.

Alfred Liggins: And so we don't really have a cash flow problem such that we have to hoard a bunch of cash. And if we are looking for a deal that is substantially de-levering, you know, particularly at the levels, you know, you know, that we're trying to get down to. Let's say, I think, you know, our leverage level, we just reported it was four points. 4.7 times, right? 437. So, let's say we were looking for something that, you know, delivers us, you know, a pen, right?

However, the $6 $3 million noncash benefit for the TV One award.

Speaker Change: operating expenses in the cable tv segment down four point seven percent year-over-year driven by about a eight hundred thousand dollars favorable programming expense related to acquisitions they expired in two thousand and twenty three

Speaker Change: Is not added back.

For the current year when assessing adjusted EBIDTA.

Speaker Change: Consolidated adjusted EBITDA was $28 $4 million for the second quarter down 24, 2% consolidated broadcast and digital operating income was approximately $34 $2 million decrease of 27, 7%.

Speaker Change: and reduced sales and marketing expense, which was offset by increased operations costs associated with connected TV and VOD support.

Speaker Change: Operating expenses in the corporate and elimination segment were down by approximately $900,000, primarily as a result of a $4.5 million decrease for the CEO's TV One Award.

Speaker Change: Interest income was approximately $1 $8 million in the second quarter compared to $1 $9 million last year decrease was due to lower cash balances.

Alfred Liggins: So, it gets us down to 3-3. You know, if the synergies are really there and it does that, then that's probably in the strike zone is something that you can finance. So, the point is I don't think we have to hoard cash for an M&A situation, the kind of M&A that we're looking for, you know, should produce a financeable scenario in and of itself. And we can, you know, look at that cash, you know, to deliver, you know, and buy, you know, debt opportunistically. Does that make sense? Yes, it does. It does. Thank you, Alfred.

Speaker Change: Interest bearing investment accounts interest expense decreased to approximately $12.

Speaker Change: offset by a $3 million increase in third-party consulting and audit expenses.

Peter Thompson: For Adjusted EBITDA, we added back $4.1 million for non-recurring professional fees related to the remediation and audit efforts. However, the $6.3 million non-cash benefit for the TV One Award is not added back for the current year when assessing Adjusted EBITDA.

Speaker Change: $4 million for Q2 down from $14 million last year due to lower overall debt balances as a result of the company's debt reduction strategy.

Speaker Change: for adjusted ebitda we added back four point one million dollars and nonrecurring professional fees related untto inmediation and order efforts

Speaker Change: Company made cash interest payments of approximately $1 million in the quarter related to the repurchase of the notes.

Speaker Change: However, the $6.3 million non-cash benefit for the TV One Award is not added back for the current year when assessing adjusted EBITDA.

Speaker Change: During the quarter the company repurchased $35 $5 million of its 2028 notes at a price of 78%.

Peter Thompson: Consolidated Adjusted EBITDA was $28.4 million for the second quarter, down 24.2%. Consolidated Broadcast and Digital Operating Income was approximately $34.2 million, a decrease of 27.7%. Interest income was approximately $1.8 million in the second quarter compared to $1.9 million last year. The decrease was due to lower cash balances in interest-bearing investment accounts.

Speaker Change: Consolidated adjusted EBITDA was $28.4 million for the second quarter, down 24.2%. Consolidated broadcast and digital operating income was approximately $34.2 million, a decrease of 27.7%.

Speaker Change: Eh and <unk>.

Speaker Change: I am in charge of $88 million.

Speaker Change: Which was noncash was recorded in Q2 entirely from the broadcasting licenses.

Hal Steiner: Okay, that's all my questions for now. Thank you guys so much. Yeah. And once again, for additional questions, please press 1-0 at this time on your phone's keypad.

Speaker Change: Nine of the 13 radio market in the broadcast segment.

Speaker Change: interest income was approimately one point eight milliondollars in the second quarter compared to one point nine million dollars last year decrease was due to lower cash balances in interest bearing investment accounts interest expense decreasase to approximately to our point

Speaker Change: The primary factors leading to the impairments were decline in projected gross market revenues.

Peter Thompson: Interest expense decreased to approximately $12.5 million and $4 million for Q2, down from $14 million last year due to low overall debt balances as a result of the company's debt reduction strategy. The company made cash interest payments of approximately $1 million in the quarter related to the repurchase of the note. During the course of the quarter, the company repurchased $35.5 million of its 2028 notes at a price of 78 cents a pass. An impairment charge of $80.8 million, which was non-cash, was recorded in Q2 entirely from the broadcasting licenses in 9 of the 13 radio markets in the broadcast segment. The primary factors leading to the impairments were a decline in projected gross market revenues, an operating profit, and an increase in the discount rate.

Peter Thompson: Interest expense decreased to approximately $12.5 million and $4 million for Q2, down from $14 million last year due to low overall debt balances. As a result of the company's debt reduction strategy, the company made cash interest payments of approximately $1 million in the quarter related to the repurchase of the note. During the course of the company, we purchased $35.5 million of its 2028 notes at a price of 78 cents a pass. An impairment charge of $80.8 million, which was non-cash, was recorded in Q2 entirely from the broadcasting licenses in 9 of the 13 radio markets in the broadcast segment. The primary factors leading to the impairments were a decline in projected gross market revenues, an operating profit, and an increase in the discount rate.

Operating profits and an increase in the discount rate.

Marlene Piero: We have a question now from Marlene Piero with B-O-A. Please go ahead. Thank you for taking the question. Hi, Alfred. Hi, Peter. I just wanted to quickly check on free cash flow. Just kind of given the commentary. You've given this quarter versus, you know, last quarter. So, I think, you know, it kind of worked out to roughly around $40 million given, you know, kind of some one-off related to, you know, PV-1.

Speaker Change: The benefit from income taxes was approximately $18 $5 million for the second quarter. The company paid cash income tax in the amount of $600000.

Speaker Change: $4,000,000 for Q2 down from $14,000,000 last year due to low overall debt balances as a result of the company's debt reduction strategy Company made cash interest payments of approximately $1,000,000 in the quarter related to the repurchase of the notes

Marlene Piero: You know, cash taxes around $3 million. I think catbacks around $9 million. So, just wanted to just sanity check if, you know, kind of the ballpark and that my inputs are correct. Yeah, I think, look, Alfred guided towards the lower end of the guidance. So, you probably need to take, if we were coming off of the midpoint, right, you'd probably take 5 million off of that number and be in the mid 30s.

Speaker Change: Net loss was approximately $45 4 million or <unk> 94 per share.

Speaker Change: Net income of $70 4 million or <unk>.

Speaker Change: $1 48 per share for the second quarter of 2023.

Speaker Change: During the course of the company, we purchased $35.5 million of its 2028 notes at a price of 78 cents a pass.

Speaker Change: During the second quarter, the company repurchased 449277 shares of class a common stock in the amount of approximately $900000.

Speaker Change: An impairment charge of $80.8 million.

Speaker Change: which was non cash was recorded in q two entirely from the broadcasting licenses in nine of the thirteen radio markets and broadcast segment

Speaker Change: The average price of $2 <unk> per share and 113283 shares of class B common stock in the amount of approximately $200000.

Speaker Change: the primary effactors leading to the impairments

Speaker Change: Average price of $1 57 per share capital expenditures were approximately $2 2 million in the second quarter.

Speaker Change: were declined in projected gross market revenues and operating profits and an increase in the discount rate.

Peter Thompson: The benefit from income taxes was approximately $18.5 million for the second quarter, and the company paid cash income tax in the amount of $600,000. The net loss was approximately $45.4 million, or 94 cents per share, compared to net income of $70.4 million or $1.48 per share for the second quarter of 2023. During the second quarter, the company repurchased 449,277 shares of Class A common stock for an amount of approximately $900,000 at an average price of $2.06 per share, and 113,283 shares of Class D common stock for an amount of approximately $200,000, at an average price of $1.57 per share.

Peter Thompson: The benefit from income taxes was approximately $18.5 million for the second quarter, and the company paid cash income tax in the amount of $600,000. The net loss was approximately $45.4 million, or 94 cents per share, compared to net income of $70.4 million or $1.48 per share for the second quarter of 2023. In the second quarter of the company, it repurchased $449,277 shares of Class A common stock for an amount of approximately $900,000, but at an average price of $2.6 per share, and 113,283 shares of Class D common stock for an amount of approximately $200,000, an average price of $1.57 per share.

Marlene Piero: And then, obviously, the other comment you made at the top of the call was, we don't know where political is going to come out. It feels good, right? It feels like the developments on the demographic side are going to be really helpful to us. So, yeah, maybe there's some upside on that. To the downside, you know, we're still going through all the remediation of the material. And there's going to be incremental effort there from a consultant standpoint and also from an audit standpoint.

As of June 32020 for total gross debt was $614 $5 million.

Speaker Change: the benefit from income taxes was approximately eighteen point five million doars for the second quarter and the company paid cash income tax in the amount of six hundred thousand dollars

Speaker Change: Ending unrestricted cash balance was $131 $9 million, resulting in net debt of approximately $482 6 million.

Speaker Change: Net loss was approximately $45.4 million, or $0.94 per share, compared to net income of $70.4 million, or $1.48 per share for the second quarter of 2023.

Speaker Change: Compared to a $110 5 million.

Speaker Change: <unk> reported adjusted EBITDA for a total net leverage ratio of 437 times.

Marlene Piero: So, our old 2 million audit fee, you know, isn't coming back this year. So, there's some incremental one-time remediation and audit costs. So, you know, I think we're somewhere in the third is depending on where political comes out. I would say. Audit, but the cash taxes and cap act that's still roughly that part of 3 million. Yeah, and the other lever that's in there, I say the lever, the other thing that's in there, is how much cash program and we spend versus what we're amortizing.

Speaker Change: During the second quarter, the company repurchased 449,277 shares of Class A common stock in the amount of approximately $900,000.

Speaker Change: And finally, we will be filing.

Speaker Change: Timely filing the 10-Q tomorrow at some point so.

Speaker Change: Good that we're back on track in terms of meeting deadlines, and filing timing and with that I will hand back to Alfred.

Speaker Change: at an average price of $2.06 per share, and 113,283 shares of Class D common stock in the amount of approximately $200,000, an average price of $1.57 per share. Capital expenditures were approximately $2.2 million in the second quarter.

Thank you Peter operator, we can go to the.

Peter Thompson: Capital expenditures were approximately $2.2 million in the second quarter. As of June 30, 2024, the total gross debt was $614.5 million. The ending unrestricted cash balance was $131.9 million, resulting in net debt of approximately $482.6 million compared to $110.5 million of LTM reported adjusted EBITDA for a total net leverage ratio of 4.37 times. And finally, we'll be timely filing the 10-Q tomorrow at some point. So it's good that we're back on track in terms of meeting our deadlines and filing timely. And with that, I will hand it back to Alfred.

Speaker Change: To the lines for Q&A.

Speaker Change: Ladies and gentlemen, if you'd like to ask a question. Please press. One then zero on your phone's keypad Julien indications had been placed in Q.

Speaker Change: As of June 30, 2024, total gross debt was $614.5 million.

Speaker Change: And then repeating that one zero process will remove you from the queue. Once again, if you have questions. Please press one zero.

Marlene Piero: At the moment, we have a 10 million dollar cash usage in the numbers I just gave you. So, if we can, if we end up saving some of that, then that would also boost 3 cash once. I'm sorry if I might have missed this sooner, but have you disclosed if you've, you know, bought any bonds back, you know, post the quarter? I'm sorry, I couldn't, I couldn't hear the question, it's a bit things.

Speaker Change: The ending unrestricted cash balance was $131.9 million.

Speaker Change: resulting in net debt of approximately $482.6 million.

Speaker Change: And at this time, we do not have any callers queuing up.

Speaker Change: compared to $110.5 million of LTM reported adjusted EBITDA for a total net leverage ratio of 4.37 times.

Speaker Change: Okay I'll take that back.

Speaker Change: A little bit late.

Speaker Change: Alright, we will go first.

Speaker Change: Dominic Leon with Stifel Go ahead. Please.

Hey, Hey, guys. Thanks for taking the questions Yeah sure.

Speaker Change: And finally, we'll be timely filing the 10-Q tomorrow at some point, so good that we're back on track in terms of meeting our deadlines and filing timely. And with that, I will hand back to Alfred.

A couple of things for me one could you just comment on digital.

Marlene Piero: Sorry, I was just curious and apologies if I missed this, but have you, have there been any bonds repurchased post 3Q? No, the last ones we did were the 35 and a half in Q2, we haven't done any more since then. Got it, thank you very much.

Speaker Change: So digital has kind of been trending weaker for a couple of quarters now can you just kind of.

Alfred Liggins: Thank you, Peter. Operator, we can go to the lines for Q and S. Ladies and gentlemen, if you'd like to ask a question, please put it in the comments.

Alfred Liggins: Thank you, Peter. Operator, we can go to the lines for Q&A. Ladies and gentlemen, if you'd like to ask a question, please...

Speaker Change: Now for some guidance on what that market's looking like are you guys expecting that to pick up.

Alfred Liggins: Thank you, Peter. Operator, we can go to the lines for Q&A.

Operator: Ladies and gentlemen, if you'd like to ask a question, please press 1 then 0 on your phone's keypad. You'll hear an indication that you've been placed in queue. And repeating that 1-0 process will remove you from the queue. Once again, if you have questions, please press 1 then 0. And at this time, we do not have any callers queuing up. Oh, can I take that back? Take that back, we're just a little bit late. Alright, we'll go first to Dominic Leab with Staple.

Operator: Ladies and gentlemen, if you'd like to ask a question, please press 1 then 0 on your phone's keypad. You'll hear an indication that you've been placed in queue. And repeating that 1-0 process will remove you from the queue. Once again, if you have questions, please press 1 then 0, and at this time, we do not have any collars waiting. Oh, can I take that back? Take that back; we're just a little bit late. Alright, we'll go first to Dominic Leab with Staple.

Speaker Change: Versus kind of like a national local area or kind of just what your thoughts on.

Kevin Chapman: We have a question next from Kevin Chapman with PRV, please go ahead. Yes, hi, thank you. I would like for you to expand, if you can, on the political advertising. I know you're very optimistic about it. Are you seeing interest with both parties? The answer is yes, we're seeing interest from both parties, however, yellow, the ratio of what[inaudible] and we're seeing interest from both parties, and we're seeing interest from both parties, and we're seeing interest from both parties, The high water mark was in 2020 we did in radio alone, we did $18.8 million in 2020, so that was the biggest and then in 22 we did about 13 million in radio, so they were out two biggest.

Speaker Change: Ladies and gentlemen, if you'd like to ask a question, please press 1 then 0 on your phone's keypad. You'll hear an indication that you've been placed in queue. And repeating that 1-0 process will remove you from the queue. Once again, if you have questions, please press 1 then 0.

Speaker Change: Yes.

Speaker Change: Yes digital.

Theres been weaker demand.

Speaker Change: In digital.

Speaker Change: Associated with.

Speaker Change: Yes, the pullback in national advertising, but also.

A pull back in day diversity and inclusion.

Speaker Change: and at this time we do not have any callers queuing up

Speaker Change: AD dollars.

Speaker Change: That yes.

Speaker Change: Oh, can I take that back? Take that back, we're just a little bit late. Alright, we'll go first to Dominic Leab with Stifel. You go ahead, please.

Speaker Change: We felt that wave was ultimately.

Dominic Leab: Hey, guys, thanks for taking the questions. Yeah, two things. A couple things for me.

Speaker Change: <unk> got aggressive by the National AD pullback. However, the second half is looking.

Dominic Leab: Hey guys, thanks for taking the questions. Yeah, I just had a couple of things for you.

Alfred Liggins: One, could you just comment on digital has kind of been trending weaker for, you know, a couple quarters now? Can you just kind of offer some guidance on what that market's looking like? Are you guys expecting that to pick up, you know, versus kind of like a national local area or kind of just what your thoughts are on? Yeah, yeah, we yeah, digital. There's been weaker demand for digital, you know, associated with, you know, the pullback in national advertising, but also a pullback in, you know, D, you know, diversity and inclusion, ad dollars that, you know, we felt that way However, the second half is looking better.

Alfred Liggins: One, could you just comment on how digital has kind of been trending weaker for a couple of quarters now? Can you just kind of offer some guidance on what that market is looking like? Are you guys expecting that to pick up versus kind of like a national local area, or kind of just your thoughts on that? Yeah, there's been weaker demand for digital associated with the pullback in national advertising, but also a pullback in diversity and inclusion ad dollars that we felt that way was ultimately going to crest and be affected by the national ad pullback.

Dominic Leab: Hey guys, thanks for taking the questions. Yeah, I just had a couple of things for me. One, could you just comment on...

Speaker Change: Is looking better.

Speaker Change: We're also optimistic.

Speaker Change: There that we're going to see more political AD dollars than we had budgeted so.

Speaker Change: Digital has kind of been trending weaker for, you know, a couple quarters now. Can you just kind of offer some guidance on what that market's looking like? Are you guys expecting that?

Speaker Change: Yes to date.

Speaker Change: We are still forecasting.

Speaker Change: to pick up versus kind of like a national local area or kind of where your thoughts on the ' see yes we

Speaker Change: Our digital segment.

Speaker Change: Meet its budget, which is.

Speaker Change: Yes.

Speaker Change: yeah digital you know there's there's been weaker demand in digital now associated with you

Speaker Change: Last year, but not that but not that far off so.

Speaker Change: We're feeling decent about dish.

Speaker Change: Digital television business is really what's.

Speaker Change: the pull back in national advertising but also

Speaker Change: What's hurting us.

Speaker Change: a pullback in, you know, diversity and inclusion.

Okay. Thank you.

Speaker Change: Based off the backdrop are you guys keeping your EBITDA guidance I think you gave a range of like 110 to.

Speaker Change: Ad dollars that we felt that way was ultimately going to crest and be affected by the national ad pullback. However, the second half is looking better.

Speaker Change: 120 last calls that's still in line.

Alfred Liggins: However, the second half is looking better, and we're also optimistic there that we're going to see more political ad dollars than we had budgeted. To date, we are still forecasting our digital segment to meet its budget, which is off of last year, but not that far off. So, we're feeling decent about digital. Our TV business is really what's hurting us. Okay, thank you. Based on the backdrop of you guys keeping your EBITDA guidance, I think you gave a range of like 110 to 120 last calls. That's sort of still in line.

Alfred Liggins: And, you know, we're also optimistic there that we're going to see more political ad dollars than we had budgeted. So yeah, today, you know, we are still forecasting our digital segment to meet its budget, which is, you know, you know, you know, off of last year, but not that, but not that far off. So we're feeling decent about the digital TV business. It's really what's hurting us. Yeah. Okay, thank you. And based on the backdrop of you guys keeping your EBITDA guidance, I think you gave a range of like 110 to 120 last calls. That's sort of still in line.

Speaker Change: Yes, yes.

Speaker Change: As I said at the top of the call.

Speaker Change: We're more likely to be on the lower end of that guidance, but yes were.

Speaker Change: and you know we're also optimistic there that we're going to see more political ad dollars than we had budgeted so

Speaker Change: We're maintaining our current guidance.

Speaker Change: Okay got it sorry, I joined a little late here.

Yes.

Speaker Change: Couple of more things.

Speaker Change: Debt buybacks do you guys continue kind of continuing a similar cadence in terms of repurchases if prices.

Speaker Change: Yeah, to date, you know, we are still forecasting our digital segment to meet its budget, which is, you know,

Speaker Change: Don't want to commit to the cadence.

Speaker Change: The cadence really kind of.

Speaker Change: You know, off of last year, but not that far off, so we're feeling decent about digital. Our TV business is really what's hurting us.

Speaker Change: Depends on.

Speaker Change: Yeah.

Speaker Change: The cadence it depends on where we see the debt trading.

Speaker Change: Yeah.

Speaker Change: But you can.

Speaker Change: Got it. OK. Thank you. Based off the backdrop of you guys keeping your eBeta guidance, I think you gave a range of like 110 to 120 last calls. That's sort of still in line.

Speaker Change: You can rest assure that.

Speaker Change: Our primary focus is is to make sure that we're managing.

Alfred Liggins: Yeah, yeah, as I said at the top of the call, you know, we're more likely to be on the lower end of that guidance, but yes, we're, you know, we're maintaining our current guidance.

Alfred Liggins: Yeah, yeah. I said at the beginning of the call that we're more likely to be on the lower end of that guidance, but yes, we're maintaining our current guidance.

Speaker Change: Yeah, yeah, as I said at the top of the call, you know, we're more likely to be on the lower end of that guidance, but yes, we're, you know, we're maintaining our current guidance.

Speaker Change: Our leverage and look into March that down and it's challenging right now with EBITDA.

Alfred Liggins: Okay, got it. Sorry, I joined a little late here. Yeah, of course. A couple more things. The debt buybacks, do you guys continue to kind of maintain a similar cadence in terms of repurchases? If prices kind of... Oh, man.

Alfred Liggins: Sorry, I joined a little late here. A couple more things. The debt buybacks, do you guys continue to kind of maintain a similar cadence in terms of repurchases? I don't want to commit to the cadence, you know, because the cadence really kind of depends on

Speaker Change: Falling rate so quite frankly.

Speaker Change: Been able to buy.

Speaker Change: OK. Sorry.

Speaker Change: That back.

Speaker Change: joined a little late here.

Opportunistically at attractive prices is important so very high priority for us. That's the reason you saw us by $35 million.

Alfred Liggins: I don't want to commit to the cadence, you know, because the cadence really kind of depends on the case. The case depends on where, you know, we see the debt trading, you know, but you can rest assured that our primary focus is to make sure that we're managing our leverage and looking to march that down. And it's challenging right now with EBITDA, you know, falling, right? You know, so quite frankly, being able to buy debt back opportunistically at attractive prices is important. So, you know, a very high priority for us. That's the reason you saw us buy $35 million. We're trying to be opportunistic and smart about it.

Speaker Change: Worth of debt right before our window closed.

Speaker Change: That ended up being a negotiation.

Speaker Change: That too.

Speaker Change: oh

Speaker Change: To buy that piece of debt.

Speaker Change: the id depends on where you we see the deb trading but you can

Speaker Change: $35 million is probably a week long negotiation that only closed right before the window was happening. So we're trying to be opportunistic and smart about it.

Speaker Change: you can rest assured thatath

Speaker Change: are our primary focus.

Speaker Change: Okay got it that makes sense and then just last one I think you guys mentioned.

Speaker Change: is to make sure that we're managing our leverage and looking to march that down. And it's challenging right now with EBITDA falling, right? So quite frankly, being able to buy debt back.

Maybe you might have covenants, but last quarter you guys mentioned you were.

Speaker Change: Under NDA to potentially purchase bounce from EW Scripps the effect you can offer any commentary is there any update regarding those.

Peter Thompson: Peter, you want to elaborate? I think you covered it. It's not just a presidential race, it was the only point I was going to make, there was some race in the market. In the market, you mentioned the North Carolina government race, the Maryland Senate and the Ohio Senate and then some other issues redistricting issues, so it's not all going to be presidential money. There are other things that we're participating in as well. But obviously that change on the democratic side is going to help us in some of those markets that will probably may not be in play that now are like Georgia and Pennsylvania where we're well positioned.

Speaker Change: There is a process going on we're involved in it and.

Speaker Change: opportunistically at attractive prices is important. So, you know, very high priority for us. That's the reason you saw us buy $35 million.

Speaker Change: No update at this point in time.

Speaker Change: Okay got it okay. I appreciate you answering the question, but that's it for me.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Al <unk> with BNP. Please go ahead.

Speaker Change: worth of debt right before our window closed.

Speaker Change: Yes.

Speaker Change: that ended up being end a negotiation you know that you know buy that piece of debt thir thirty five million dollars ' probably a week long negotiation

Speaker Change: Hey, guys. Good morning, Thank you for taking the questions.

Speaker Change: So my first one was I was just do you have any early thoughts on.

Speaker Change: Some of the things you could try to do in television to sort of improve audience and audience delivery.

Speaker Change: that only closed right before the window was happening. So, you know, we're trying to be opportunistic and smart about it.

Speaker Change: It's maybe like changing measurement provider as a possible solution and I think you also commented on sort of CTV AD upside could be if you could just share a little more color or help quantify that at all that would be very helpful. Thank you yeah.

Alfred Liggins: Okay, got it, that makes sense. Yeah, and then just last one, I think you guys mentioned, maybe you might have commented on this, but last quarter, you guys mentioned you were under an NDA to potentially purchase bounce from EW Scripts to the effect you could offer any commentary. Is there any update regarding that?

Kevin Chapman: Just one follow-up, will you update as these bins come in? I'm sorry, will we update as what comes in? As you get by, I mean, we'll give an update when we do our next earnings call, you know, just as we have here, and it'll flow into whatever our guidance is. Our next, yeah, we'll give the market a view of, we always give a view on where we're pacing, and last couple of years we're giving guidance, and we feel we have an obligation to continue to update that guidance as we report.

Speaker Change: okay

Speaker Change: Yeah, and then just last one, I think you guys mentioned...

Speaker Change: Maybe you might have commented on this, but last quarter you guys mentioned you were under NDA to potentially purchase bounds from EW Scripts. To the effect you can offer any commentary. Is there any update regarding those?

Kevin Chapman: Okay, thank you. Yeah.

Speaker Change: So we are looking at different measurement.

Alfred Liggins: No, there's a process going on, you know; we're involved in it, and, you know, no update at this point in time.

Speaker Change: Solutions.

Speaker Change: And we're in the middle of the upfront right now so I don't want to have a public.

Speaker Change: No, there's a process going on, we're involved in it, and no update at this point in time.

Alfred Liggins: Okay, got it. Okay, I appreciate the answer to the question. That's it for me.

A public adjudication of our upfront strategy and our audience measurement strategy, but suffice it to say, yes, we are.

Hal Steiner: Thank you. Our last question comes from Hal Steiner with BNP. Please go ahead.

Speaker Change: okay i' got it okay appreciate answer the questions so that'sit forfrom me

Speaker Change: thank you

Speaker Change: We are engaged and those kinds of conversations and looking at it.

Hal Steiner: Hey guys, good morning. Thank you for taking the questions. So my first one was, I was just wondering, do you have any early thoughts on...

Speaker Change: our question comes from he dr with b people iss glad

Speaker Change: At several different alternatives.

Speaker Change: hey guys goodmorning thank you for taking the questions so my first one is i was just give any early thoughts on

Alfred Liggins: Some of the things you could try to do in TV to sort of improve audience and audience delivery is maybe changing measurement providers, a possible solution. And I think you also commented on sort of CTV ad upside. Could you just share a little more color or help quantify that at all? That would be very helpful. Thank you.

Speaker Change: One of which.

Speaker Change: Has.

Speaker Change: Some of the things you could try to do in TV to sort of improve audience and audience delivery Is maybe like changing measurement providers a possible solution, and I think you also commented on

Speaker Change: As more of a positive impact in others right. So.

Speaker Change: But that's an active negotiation right now because it's not just us switching audience measurement, it's getting.

Speaker Change: sort of ctv ad upside because if you could share a littlemore color or help quantify that at all that wouldbeveryhelpful thank you yeah so we are looking at different measurement solutions

Alfred Liggins: Yeah, so we are looking at different measurement solutions, and we're in the middle of the upfront right now, so I don't want to have a public adjudication of our upfront strategy and our audience measurement strategy, but suffice it to say, yes, we are engaged in those kinds of conversations and looking at several different alternatives, one of which has more of a positive impact than others, right? So, but that's an active negotiation right now because it's not just us switching audience measurement; it's getting, yeah, the advertising holding companies and the clients to actually, you know, accept a currency too. And so that's a real-time negotiation as we speak.

Operator: For additional questions, press 1-0. Right.

Speaker Change: On the <unk>.

Speaker Change: Advertising holding companies in the clients to actually <unk>.

Speaker Change: This currency too.

James Goblin: We're going now to Ben Briggs from StoneX. Go ahead. Hi, this is James Goblin on for Ben Briggs.

Speaker Change: And so that's a real time negotiation as we speak.

Speaker Change: <unk>.

Speaker Change: But the answer to your question is yes, we're looking at that second.

Alfred Liggins: Thank you guys for taking the questions. I was wondering, can you provide any clarity on what's the revenue and keep it that impact TV one and Cleo joining the Xfinity line up a little bit? Actually, it's not the Xfinity line up. It's TV now, which is there over the top skinny bundle. It's a $20 a month service, and it will be positive, although we just launched, I think, Jody, we just launched, you know, an August, right, beginning August.

Speaker Change: On CTV, we basically were on a.

Speaker Change: public adjudication of our upfront strategy in our audience measure strategy but suffice it to say yes we are

Speaker Change: An AD server that didn't allow us to transact on a programmatic level and had some other.

Speaker Change: We are engaged in those kinds of conversations and looking at several different alternatives, one of which...

Limitations that really severely limited our ability to monetize that inventory it has taken us.

Speaker Change: Don't ask me all the why so it has taken six months actually for us too.

Speaker Change: has more of a positive impact than others.

<unk> Fi negotiate and then ultimately get activated a new AD server.

Speaker Change: All right. So.

Speaker Change: But that's an active negotiation right now, because it's not just us.

Speaker Change: That will allow us to more effectively monetize it and we're at the we're almost at the end of that road I think it goes live within the next.

Speaker Change: Switching audience measurement, it's getting the advertising holding companies and the clients to actually, you know, accept it as currency, too. And so that's a real-time negotiation as we speak.

Alfred Liggins: In July. We launched in July, and it's a growing service, so, you know, it's a small number of subs now that we think will ultimately grow larger, so it's a positive impact, but it's not a hugely positive impact to our numbers.

Operator: Thank you. For additional questions, please press 1-0. We have no more questions in queue.

Speaker Change: 30 days or so Jody do you know when the new CTV AD server goes live by.

Alfred Liggins: But the answer to your question is yes, we're looking at that second. On CTV, we basically were on an ad server that didn't allow us to transact on a programmatic level and had some, you know, other limitations that really severely limited our ability to monetize that inventory. It has taken us, and, you know, don't ask me all of the why's, but it's taken six months for us to identify, negotiate, and then ultimately get activated a new ad server that will allow us to more effectively monetize it, and we're almost at the end of that road. I think it will go live within the next, you know, 30 days or so. Jody, do you know when, you know, the new CTV ad server goes live offhand? This month This month This month, yeah.

Speaker Change: This month this month.

Speaker Change: This month yeah.

Speaker Change: So people advertisers like CTV, a lot because they can do it programmatically and the answer but we were on didn't allow us to do that now so.

Speaker Change: re

Speaker Change: On CTV, we basically were on an ad server that didn't allow us to transact on a programmatic level and had some other limitations that really severely limited our ability to monetize that inventory. It has taken us...

Speaker Change: So that just now.

Operator: All right. Thank you, everyone, and we look forward to talking with you next quarter and as usual, you were available offline. Thank you very much. Ladies and gentlemen, once again a replay for this conference call will be available through midnight on August 15th to access the replay from the U.S, dial 4-0-2-9-7-0-0-8-4-7. Use access code 1-7-3-3-8-6 in an national participant's use for scratch that. International call is used 4-0-2-9-7-0-0-8-4-7. Domestic call is used 8-6-6-2-0-7-1-0-4-1 and again that access code is 1-7-7-1-7-3-3-8-8-6.

Speaker Change: That's real.

Speaker Change: Can you just capably.

Speaker Change: Just moving to.

Speaker Change: A system that allows us to monetize it the way.

Speaker Change: and, you know, don't ask me all of the why's, but it's taken six months, actually, for us to...

Speaker Change: The majority of advertisers want to do business.

Speaker Change: <unk>.

Speaker Change: Is tangible upside just because we haven't been able to participate in that marketplace. So yes, that's the elaboration and obviously more and more at AD dollars are moving to connected TV too.

Alfred Liggins: Jodi, do you know when the new CTV ad server goes live?

Speaker Change: Got you got you Okay. That's helpful.

Speaker Change: And then I guess.

Speaker Change: Just on.

Financial policy.

Speaker Change: Bye.

Speaker Change: offhand this month.

Alfred Liggins: So, you know, people, you know, advertisers like CTV a lot because they can do it programmatically, and the ad server that we were on didn't allow us to do that, you know, so that's just, you know, that's the real deal, you know, just. Just moving to, you know, a system that allows us to monetize it the way the majority of advertisers want to do business is a tangible upside, just because we haven't been able to participate in that marketplace. So, you know, that's the elaboration on it. And obviously, more and more ad dollars.

Speaker Change: With the operating environment being a little bit weaker do you sort of feel like it's more prudent to maybe hold more cash or is it like sort of the minimum cash you want to hold onto the business may be higher than it was before.

Speaker Change: This month. This month. This month. Yeah. So, you know, people, advertisers like CTV a lot because they can do it programmatically and the ad server that we were on didn't allow us to do that.

And I heard your comments on debt buybacks, but maybe also just wonder.

Speaker Change: that, you know, so that's just, you know, that's real, you just

Speaker Change: How do you view M&A in the current environment.

Speaker Change: Hello, Paul.

Speaker Change: Just moving to a system that allows us to monetize it the way the majority of advertisers want to do business.

Speaker Change: Sure.

Speaker Change: We view M&A.

Operator: That does include your conference call for today.

Speaker Change: And I think I've said it before.

Look in the current environment, you can't count on top line growth rate not in the media business right. We were a software company.

Speaker Change: is tangible upside just because we haven't been able to participate in that marketplace. So, yeah, that's the elaboration on it. And obviously, more and more ad dollars are moving to connected television, too.

Speaker Change: Maybe so M&A has got to be.

Hal Steiner: Gotcha, gotcha. Okay, that's helpful.

Speaker Change: Not only.

Alfred Liggins: And then I guess, just on, you know, financial policy, you know, with the operating environment being a little bit weaker, you know, do you sort of feel like it's more prudent to maybe hoard more cash or is, like, sort of, the minimum cash you want to hold in the business, maybe higher than it was before, and I heard your comments on debt buybacks, but I maybe also just wonder, you know, how you view M And I think I've said that before.

Speaker Change: Accretive it's gotta be delevering.

Speaker Change: Gotcha, gotcha, okay that's helpful.

Speaker Change: And Peter and I were actually talking about it this morning before.

Speaker Change: And then I guess

Speaker Change: On the call and any M&A deal that you do that Delevering out the box you have got a.

Speaker Change: Just on.

Speaker Change: You know, financial policy, you know, with the operating environment being a little bit weaker, you know, do you sort of feel like it's more prudent to maybe hoard more cash or is like sort of the minimum cash you want to hold in the business maybe higher than it was before?

Speaker Change: You've got a.

Speaker Change: Assume that there is going to continue to be downward topline pressure.

Speaker Change: In the industry right.

Speaker Change: And I heard your comments on debt buybacks, but I maybe also just wonder, you know, how do you view M&A in the current environment? And I'll pause there. We view M&A,

Speaker Change: Whether it's radio or television and so you've got to take that into account when you're figuring out what that M&A does to you from a deal.

Alfred Liggins: Look, in the current environment, you can't count on top line growth, right? Not in the media business, right? If we were a software company, you know, maybe so. But M&A has got to be, you know, not only highly accretive. It's got to be delevering. And Peter and I were actually talking about it this morning before, you know, the call, and any M&A deal that you do that's delevering out the box, you've got to assume that there's going to continue to be downward top line pressure, you know, in the industry, right? You know, whether it's radio or television.

Speaker Change: Delevering standpoint, so very comfortable with our Houston acquisition.

Speaker Change: And I think I've said it before. Look, in the current environment, you can't count on top line growth, right? Not in the media business.

Speaker Change: Last year in Indianapolis acquisition in radio.

And so that's how we think about it.

Speaker Change: We were a software company, you know, maybe, so M&A has got to be, you know, not only

Speaker Change: Yes, you can.

Speaker Change: Expect us not to do anything.

Speaker Change: That is.

Alfred Liggins: highly accretive, it's got to be de-levering. And Peter and I were actually talking about it this morning before, you know, the call, and any M&A deal that you do that's de-levering out the box, you've got to

Speaker Change: Contrary to that because that would be.

Speaker Change: That would be way too risky.

Speaker Change: And we are again conscious of the fact that it's not just is something Delevering day one.

Alfred Liggins: And so you got to take that into account, you know, when you're, you know, figuring out what that M&A does to you from a D. Delivering standpoint. So very comfortable with our Houston acquisition last year, and radio. And so that's how we think about it, you know, you can, you know, expect us not to do anything that is, is, is contrary to that, because that would be way too risky.

Peter: you've got to assume that there's going to continue to be...

Speaker Change: Is it going to continue to be Delevering.

Alfred Liggins: downward top line pressure, you know, in the industry, right? You know, you know, whether it's radio or television. And so you got to take that into account, you know, when you're, you know, figuring out what that M&A does to you from a deal.

Speaker Change: Yes.

Speaker Change: Oh.

Sure.

Speaker Change: The downward.

Speaker Change: Trend.

Speaker Change: From from an industry standpoint.

Speaker Change: Finding those deals is hard but my sense is.

Peter: standpoint. So very comfortable with our Houston acquisition, you know, last year and our Indianapolis acquisition and radio. And so that's how we think about it. You know, you can, you know, expect us not.

Speaker Change: They will come about because everybody's going to kind of got the same problem.

Speaker Change: And.

Speaker Change: Yes.

We're substantially free cash flow positive to date, the thing that reducing debt, particularly reducing debt at a discount does it also increases our free cash flow right.

Peter: to do anything.

Speaker Change: And so we don't really have.

Alfred Liggins: And we are, again, conscious of the fact that it's not just, it's something de-levering day one, you know, is it going to continue to be de-levering, you know, with, you know, a downward, you know, trend, you know, from an industry standpoint. Finding those deals is hard, but my sense is that They will come about because everybody's kind of got the same problem, and, you know, I mean, we're, you know, substantially free cash flow positive, you know, to date. The thing that reducing debt, particularly reducing debt at a discount, does is it also increases our free cash flow, right?

Speaker Change: you know, that is contrary to that because that would be, that'd be way too risky.

Speaker Change: Cash flow problems, such that we have to onboard a bunch of cash.

Speaker Change: And if we are looking for a deal that is substantially de levering.

Peter: and we are again conscious of the fact that it's not just

Speaker Change: Particularly at the levels.

Peter: is something delevering day one

Speaker Change: Yes.

Speaker Change: That we're trying to get down to let's say I think our leverage level. We just reported was four point.

Speaker Change: Is it going to continue to be de-levering with a downward trend from an industry standpoint? Finding those deals is hard, but my sense is...

Speaker Change: Ah.

Speaker Change: Four seven times.

Three seven so let's say we were looking for something that.

Speaker Change: De levers us.

Speaker Change: A ton right. So it gets us down to <unk>.

Speaker Change: They will come about because everybody's gonna get kind of got the same problem

Speaker Change: Three three.

Speaker Change: If the synergies are really than it does that then that's probably in the strike zone is something that you can finance.

Alfred Liggins: and

Speaker Change: You know, I mean, we're, you know, we're substantially free cash flow, you know, positive, you know, today. The thing that reducing debt, particularly reducing debt at a discount does is it also increases our free cash flow, right?

Speaker Change:

Alfred Liggins: And so we don't really have a cash flow problem such that we have to afford a bunch of cash. And if we are looking for a deal that is substantially de-levering, you know, particularly at the levels, you know, you know, that we're trying to get down to. Let's say, I think, you know, our leverage level, we just reported was 4.8.

Speaker Change: So the point is I don't.

Speaker Change: Don't think we have to hoard cash for.

Speaker Change: and so we don't really have a cash flow problem such that we have toafford a bunch cash and if we are looking for a deal that is substantially delevering particularly at the levels

Speaker Change: M&A.

Speaker Change: <unk> the kind of M&A that we're looking for.

Should produce.

Speaker Change: <unk> are financeable scenario in and of itself and we can look at that cash to de lever.

Speaker Change: And by that Opportunistically does that makes sense.

Speaker Change: that we're trying to get down to let's say i think our leverage level we just reported it was four point

Alfred Liggins: 4.7 times, right? 437.

Alfred Liggins: 4.37 times, right? 4.37. So, let's say we were looking for something that, you know, de-levers us, you know, a turn, right? So, it gets us down to 3.3. You know, if the synergies are really there and it does that, then that's probably in the strike zone as something that you can finance, you know. So, the point is I don't think we have to hoard cash for an M&A, you know, situation, the kind of M&A that we're looking for, you know, should produce, you know, a financeable scenario in and of itself, and we can, you know, look at that cash, you know, to de-lever, you know, and buy, you know, debt opportunistically. Does that make sense? Yes.

Speaker Change: Yes. It does it does thank you Alfred.

Alfred Liggins: no

Speaker Change: Okay. That's all my questions for now thank you guys. So much.

Alfred Liggins: ring more for every seven to four four three seven so let's say we were looking for something that

Speaker Change: Yep.

Speaker Change: And once again for additional questions. Please press one to zero at this time on your phone's keypad.

Alfred Liggins: delevers us you know a the turn right though get us down to to three three you if the synergies are really there and it does that then that's probably in the strike zone is something that you can finance

Speaker Change: We have a question now from.

Marlena Piro: Marlena Piro.

Speaker Change: Please go ahead.

Speaker Change: Thank you for taking the question Hi, Alfred Hi, Peter.

Peter: So the point is, I don't think we have to hoard cash for an M&A situation, the kind of M&A that we're looking for.

Just wanted to ask quick sanity check on free cash flow just kind of given the commentary you've given this quarter versus.

Alfred Liggins: You know, should produce, you know, a financeable scenario in and of itself, and we can, you know, look at that cash, you know, to de-lever, you know, and buy, you know, debt opportunistically. Does that make sense?

Speaker Change: Last quarter, So I think.

Of works out to roughly around $40 million, given kind of some one offs related to PD, one cash taxes around 3 million I think capex around 9 million.

Alfred Liggins: should produce, you know, a financeable scenario in and of itself, and we can, you know, look at that cash, you know, to de-lever, you know, and buy, you know, debt opportunistically. Does that make sense?

Hal Steiner: Yes, it does. It does. Thank you, Alfred. Okay, that's all my questions for now. Thank you guys so much.

Speaker Change: So just wanted to sanity check it kind of a ballpark in that my inputs are correct.

Speaker Change: Yes, it does. It does. Thank you, Alfred. Okay, that's all my questions for now. Thank you guys so much.

Speaker Change: Yes, I think look alpha guided.

Operator: And once again, for additional questions, please press 1 and 0 at this time on your phone's keypad. We have a question now from Marlene Piero with BOA. Please go ahead.

Speaker Change: Towards the lower end of the guidance.

Alfred Liggins: Yeah.

Speaker Change: Guidance, so you probably need to take.

Speaker Change: Once again, for additional questions, please press 1 and 0 at this time on your phone's keypad.

Speaker Change: If we if we were coming off of the midpoint right you would probably take $5 million off of that number and being in the mid thirties.

Operator: We have a question now from Marlene Piero with BOA. Please go ahead.

Speaker Change: for i mean

Operator: We have a question now from Marlene Piero with BOA. Please go ahead.

Speaker Change: And then obviously the other comment he made at the top of the call is we don't know where political is going to come out it feels good right. It feels like the developments on the Democratic side and going to be really helpful to us so yes.

Marlene Piero: Thank you for taking the question. Hi Alfred. Hi Peter. Hi.

Marlene Piero: Just wanted a quick sanity check on free cash flow, just kind of given the commentary you've given this quarter versus, you know, last quarter. So I think it kind of worked out to roughly around $40 million, given, you know, kind of some one-offs related to, you know, TV One. You know, cash taxes around $3 million. I think they will cap back to around $9 million. I just wanted to sanity check if, you know, are in the ballpark in that my inputs are correct.

Marlene Piero: Thank you for taking the question. Hi Alfred. Hi Peter.

Marlene Piero: Hi, just wanted a quick sanity check on free cash flow, just kind of given the commentary you've given this quarter versus...

Speaker Change: Maybe there's some upside on that to the downside, we're still going through all the remediation.

Speaker Change: The material.

Speaker Change: So I think it kind of worked out to roughly around $40 million, given kind of some one-offs

Speaker Change: Going to be incremental effort.

Speaker Change: From a consultant standpoint, and also from an order standpoint so.

Speaker Change: Our old 2 million ordinary isn't.

Speaker Change: P.V. 1. Cash Tax is around $3 million. I think CapEx is around $9 million. I just wanted to sanity check if that is the ballpark and that my inputs are correct.

Speaker Change: Isn't coming back this year, so there's some incremental.

Speaker Change: One time.

Speaker Change: Remediation and audit costs.

Peter Thompson: Yeah, I think Alfred guided towards the lower end of the guidance. So you probably need to take, if we were coming off of the midpoint, right, you'd probably take $5 million off of that number and be in the mid-30s. And then, obviously, the other comment he made at the top of the call was, we don't know where politics are going to come out. It feels good, right?

I think we are.

Speaker Change: With somewhere in the third is dependent on whatever political comes out.

Speaker Change: Yeah, I think, look, Alfred guided.

Marlene Piero: Towards the lower end of the...

Speaker Change: Okay.

Speaker Change: of the guidance. So you probably need to take.

Speaker Change: Got it but the cash taxes and Capex, that's still roughly three.

Speaker Change: If we were coming off at a midpoint, right, you'd probably take $5 million off of that number and be in the mid-thirties.

Speaker Change: $3 million yeah.

Speaker Change: Okay.

Speaker Change: On the other lever that's in there I would say the other thing thats in that is how much cash program and we spend versus what we're amortize at the moment, we have a $10 million.

Peter Thompson: It feels like the developments on the Democratic side are going to be really helpful to us. So yeah, maybe there's some upside to that. To the downside, you know, we're still going through all the remediation, and there's going to be incremental effort there from a consultant standpoint and also from an audit standpoint. So our old $2 million audit fee isn't coming back this year. So there's some incremental one-time remediation and audit costs. So, you know, I think we're... were somewhere in the 30s, depending on where politics comes out, I would say.

Speaker Change: And then obviously the other comment he made at the top of the call was we don't know where political is going to come out. It feels good, right? It feels like the developments.

Speaker Change: on the Democratic side are going to be really helpful to us. So, yeah, maybe there's some upside on that. To the downside, you know, we're still going through all the remediation of the material and there's going to be incremental effort there.

Cash usage in the numbers I just gave you. So if we can if we can if we ended up saving some of that then that would also boost free cash flow.

Speaker Change: And sorry.

Speaker Change: from a consultant standpoint and also from an audit standpoint. So our old $2 million audit fee, you know, isn't coming back this year. So there's some incremental one-time remediation in audit costs. So, you know, I think we're

Speaker Change: Sorry, if I might've missed this sooner but have you disclosed.

Speaker Change: But any bonds back.

Speaker Change: Most of the quarter.

Speaker Change: Im sorry, I Couldnt hear the question, it's a good thing.

Speaker Change: Sorry, I was just curious and I apologize if I missed this but have you has there been any bonds purchased close to re queue.

Speaker Change: or somewhere in the 30s depending on where political comes out I would say.

Peter Thompson: Audit, but the cash taxes in CapEx, that's still roughly that farce of $3 million. A-ha-ha A-ha-ha-ha-ha-ha-ha-ha

Speaker Change: No. The last one as we did with the 35 and a half in Q2, we haven't done any more since then got it. Thank you very much.

Speaker Change: But the cash taxes in CapEx, that's still roughly that farce of $3 million effectively.

Peter Thompson: Yeah, and the other lever that's in there, I say lever, the other interesting thing that's in there is how much cash programming we spend versus what we're amortizing. At the moment, we have a $10 million cash usage in the numbers I just gave you. So if we can, if we can, if we end up saving some of that, then that would also boost free cash flow.

Operator: yes and the on the other leve that'sin there i say levelof the other interest thing that's in there is how much cash program and we spstemend vers is what we're amortizing at the moment we have

Speaker Change: Yes.

Speaker Change: We have a question from Kevin Chapman with P. R. V. Please go ahead.

Speaker Change: Yes, hi, thank you.

Speaker Change: a ten million dollars cash usage con numbers i just gave you so as we can if we can if we end up saving in some of that and that would also boost free cash flow

Speaker Change: I would like you to expand if you can on the political ads.

Marlene Piero: And, sorry if I might have missed this sooner, but have you disclosed if you've, you know, brought any bombs back post-quarter?

Speaker Change: Advertising.

Speaker Change:

Speaker Change: No you're very optimistic about it.

Speaker Change: Are you seeing.

Marlene Piero: And, sorry if I might have missed this sooner, but have you disclosed if you've, you know, bought any bonds back, you know, post the quarter?

Speaker Change: Interest with both parties.

Marlene Piero: I'm sorry, Molly, I couldn't hear the question. It's a bit faint.

Speaker Change: And with.

Speaker Change: Okay.

Marlene Piero: Sorry, I was just curious, and apologies if I missed this, but have you, have there been any bonds repurchased post-free queue?

Speaker Change:

Marlene Piero: I'm sorry I couldn't I couldn't hear the question it's a bit fine. Sorry I was just curious and apologies if I missed this but have you have there been any bonds repurchased post requeue?

Speaker Change: At historic levels when it when you look at that.

Speaker Change: Uh huh.

Speaker Change: What youre seeing so far.

Peter Thompson: No, the last ones we did were the 35 12 in Q2. We haven't done any more since then. Got it. Thank you very much.

Speaker Change: Uh huh.

Speaker Change: The answer is yes, we're seeing interest from both parties. However.

Dominic Leab: Got it. Thank you very much. That's all I have.

Marlene Piero: Got it. Thank you very much.

Speaker Change: Ill.

Speaker Change: Yeah.

Speaker Change: The ratio of what dems spend against our audience to what.

Operator: We have a question next from Kevin Chapman with PRV. Please go ahead.

Our suspend.

Marlene Piero: Yes, hi. Thank you. I would like you to expand, if you can, on the political advertising. I know you're very optimistic about it. Are you seeing...

Kevin Chapman: Yes, hi. Thank you. I would like you to expand, if you can, on political advertising. I know you're very optimistic about it. Are you seeing... Interest from both parties, and with this offense? We have commented and submitted at historic levels when you look at that, what you're seeing so far.

Speaker Change: We have a question next from Kevin Chapman with PRV. Please go ahead.

Speaker Change: Yes.

Speaker Change: It's very very very very wide right. So an increase in interest from.

Speaker Change: Yes, hi. Thank you.

Speaker Change: I would like for you to expand, if you can, on the political advertising. I know you're very optimistic about it. Are you seeing...

Speaker Change: From ours.

Speaker Change: Is.

Speaker Change: Is not a.

Speaker Change: Moving the needle right.

Speaker Change: interests with both parties.

Speaker Change: Yeah, but it's.

On a percentage wise off a low base I think it's.

And a substantial increase but it.

Speaker Change: at historic levels, when you look at that

Speaker Change: It still doesn't compare to what the dem spend between the campaigns and the packs and all of that.

Alfred Liggins: Um, the answer is yes, we're seeing interest from both parties. However, you know, the ratio of what Dems spend against our audience to what ours spend is, you know, is, you know, is very, very, very, very, wide, right? So, you know, an increase in interest from the R's is, you know, is not going to move the needle, right? You know, but on a percentage-wise basis off the low base, I think it's, you know, a substantial increase. Do you understand what I mean?

Speaker Change: what you're seeing so far.

Speaker Change: The answer is yes, we're seeing interest from both parties, however, you know,

Speaker Change: Because the primary audience that we have.

<unk> is obviously critical to Democratic success, we also got some significant exposure in.

Speaker Change: The ratio of what Dems spend against our audience to what ours spend, you know, is, you know...

Some key markets.

Speaker Change: We've got a big Atlanta position, Georgia.

Speaker Change: It's been our most robust political market over the last.

Marlene Piero: did

Speaker Change: is very, very, very, very wide, right? So, you know, an increase in interest from the Rs is...

Yes.

Speaker Change: Two cycles.

Speaker Change: We arent Charlotte and Raleigh, North Carolina is in play.

Speaker Change:

Speaker Change: is not a

Speaker Change: Pennsylvania is in play we're in Philadelphia.

Speaker Change: move the needle, right, you know, yeah but it's

And so.

Speaker Change: We've got some decent.

Speaker Change: You know, on a percentage-wise, off a low base, I think it's, you know, a substantial increase.

Alfred Liggins: But it's, you know, it still doesn't compare to, you know, what the Dems spend between the campaigns and the PACs and all that because the primary audience that we have is obviously critical to, you know, democratic success. We also got some significant exposure in some key markets. You know, so we've got a big Atlanta, you know, position. Georgia, you know, has been our most robust political market, you know, over the last, you know, you know, two cycles. Um, you know, we are in Charlotte and Raleigh. So North Carolina is in play. Um, Pennsylvania's in play. We're in Philadelphia.

Speaker Change: Exposure.

Speaker Change: And then we've got a we've got a big digital business right and I would say.

Speaker Change: You know what I mean? But, you know, it still doesn't compare to, you know, what the Dems spend between the campaigns and the PACs and all that, because...

Speaker Change: Over half of the spend that's going to come from the Dems. This year is going to be in digital.

Speaker Change: the primary audience that we have is obviously critical to democratic success we also got some significant exposure in

Speaker Change:

So.

Speaker Change: Yes.

Speaker Change: In comparison to.

Alfred Liggins: Some key markets, you know, so we've got a big Atlanta position. Georgia, you know, has been our most robust political market, you know, over the last, you know, uh, you know, you know, two cycles. Um, you know, we are in Charlotte and Raleigh. So North Carolina is in play. Um, Pennsylvania is in play; we're in Philadelphia.

Speaker Change: And to others.

Speaker Change: Other cycle.

Speaker Change: Or what was the big what was the big year that we had.

Alfred Liggins: key markets so we've got a big atlanta positioned georgia has been our most robust political market over the last

Speaker Change:

Speaker Change: <unk>.

Speaker Change: Yes, we've had we've had we've had to right. So.

Speaker Change: The high watermark.

Speaker Change: Yes.

Speaker Change: No.

Alfred Liggins: And so, you know, we've got some decent, you know, exposure. And then, you know, we've got a, you know, we've got a big digital business, right? And I would say, over half of the spend that's going to come from the Dems this year is going to be in digital. So, you know, you know, In comparison to others in the other cycles, Peter, what was the big year that we had? Yeah, we've had we've had two, right? So. The high water mark was...

Speaker Change: In 2020, we did.

Speaker Change: And radio alone, we did $19 $8 million in 2020.

Alfred Liggins: And so, you know, we've got some decent, you know, exposure. And then, you know, we've got a big digital business, right. And I would say, over half of the spend that's going to come from the Dems this year is going to be in digital. So, you know.

Alfred Liggins: Pennsylvania's in play, we're in Philadelphia and so you know we've got some decent you know exposure and then you know we've got a you know got a big digital business right and I would say

Speaker Change: So that was that was the biggest and then in 'twenty two we did about $13 million in radio.

Speaker Change: So they were at two 2 billion.

Speaker Change #100: Yes, and Peter if you want to elaborate.

Speaker Change #101: Yes, I think I think you've covered it but yes.

Speaker Change: Over half of the spend that's going to come from the DIMMs this year is going to be in digital.

Speaker Change #101: It is.

Not just the presidential race was the only point I was going to maybe there was some write out in the market and the markets. You mentioned you know the North Carolina government raised the Maryland Senate in the Ohio Senate and then some of the other issues redistrict an issue. So it's not all going to be presidential money. There are other things that we participate in Venezuela.

Alfred Liggins: in comparison to into others other cycle peter what was the big little with a big year that we had yeah we've had we've had we've got to so

But honestly that change on the on the Democratic side is going to help us in some of those markets that will probably may not being in play that now online, Georgia, and Pennsylvania, where we are well positioned.

Speaker Change: The high water mark was... In 2020, we did...

Alfred Liggins: In 2020, we did

Peter Thompson: In 2020, we did In radio alone, we did $18.8 million in 2020, so that was the biggest. And then in 22, we did about $13 million in radio. So those were our two biggest.

Speaker Change #101: Just one follow up.

Speaker Change: In radio alone, we did $18.8 million in 2020, so that was the biggest. And then in 22, we did about $13 million in radio.

Speaker Change #101: Will you update as.

Speaker Change #101: These bids come yet.

Speaker Change #102: I am sorry, where we update is what comes in.

Peter Thompson: Yeah, and Peter, if you want to elaborate, yeah, well, I, yeah, I mean, look, I think

Speaker Change #103: As you get buys.

Alfred Liggins: So they were our two biggest.

Peter Thompson: Yeah, I mean, okay, I think I think you covered it. But yeah, there are there are there are, it's not just the presidential race; there's some other point I was going to make.

Speaker Change #103: Yes.

Speaker Change #103: We'll give an update when we do our next earnings call.

Alfred Liggins: Yeah, and Peter, if you want to elaborate, yeah, well, I

Speaker Change: yeah i mean i think i think you covered but there it's not just a presidential race was the only point i was going to make there are some rate in the market in the marketts you mention you know the north calol a government rise the maryland senate on the ohio senate

Speaker Change #103: Just.

As we have here and it ended up flow into whatever our guidance says.

Alfred Liggins: Yeah, yeah. In the market in the markets, you mentioned, you know, the North Carolina government race, the Maryland Senate, and the Ohio Senate, and then some other, you know, other issues, such as redistricting issues. So it's not all going to be presidential money. There are other things that we're participating in as well. Right. Yeah, but obviously that change on the Democratic side is going to help us in some of those markets that would probably may not have been in play that are now like Georgia and Pennsylvania, where we're well positioned.

Speaker Change #104: Our next yes, we'll give the market a view of.

Speaker Change #104: We always give a view on where we're pacing and.

Speaker Change: and then some other other issues redistrict an issues so it's not all going to be presidential money there are other things that we're participating in in as well brat

Speaker Change #104: <unk>.

Speaker Change #104: And.

Alfred Liggins: Yeah, but obviously that change on the Democratic side is going to help us in some of those markets that would probably may not have been in play that are now like Georgia and Pennsylvania, where we're well positioned.

Speaker Change #105: Last couple of years, we've given and we've given guidance in.

We feel we'll have an obligation to continue to update that guidance.

Alfred Liggins: Yeah, but obviously that change on the democratic side is going to help us in some of those markets that may not have been in play that now are, like Georgia and Pennsylvania, where we're well positioned.

Speaker Change #105: As we report.

Kevin Chapman: Just one follow-up, will you update as more of these bands come in?

Speaker Change #105: Okay. Thank you.

Speaker Change #105: Yes.

Speaker Change: this one one follow up up will you update as these bend come in

Speaker Change #105: For additional questions press one zero.

Kevin Chapman: I'm sorry, will we update as more comes in?

Alfred Liggins: as you get buys, advertising buys.

Kevin Chapman: as you get buys, advertising buys.

Speaker Change: I'm sorry, will we update as what comes in?

Alfred Liggins: We'll give an update when we do our next earnings call, just as we have here, and it'll flow into whatever our guidance is. Our next, yeah, we'll give the market a view of where we're pacing. And the last couple of years, we've given guidance, and we feel we'll have an obligation to continue to update that guidance as we report. Okay.

Speaker Change #105: Right.

Alfred Liggins: As you get buys, advertising buys. We'll give an update when we do our next earnings call, you know, just as we have here, and it'll flow into whatever our guidance is.

Speaker Change #105: Ben Briggs from stone ex go ahead.

Speaker Change #105: Hi, This is James <unk> on for Ben Briggs. Thank you guys for taking the questions.

Speaker Change #106: I was wondering can you provide any clarity on what the revenue and EBITDA impact TV, one clear joining the Xfinity lineup of it.

Alfred Liggins: So, you know, our next, yeah, we'll, we'll give the market, you know, a view of.

Speaker Change #107: Actually it is.

Speaker Change #108: Not the Xfinity lineup.

Speaker Change #107: Sure.

Speaker Change #109: It's TV now.

Speaker Change #109: Is there over the top.

Speaker Change #109: Skinny bundle, it's a 20 dollar.

Alfred Liggins: as we report. Okay.

<unk> a.

Speaker Change #109: A month service and.

Kevin Chapman: Okay, thank you.

Alfred Liggins: as we report.

Speaker Change #110: And it will be positive, although we just launched I think Jody, we just launched <unk> and.

Operator: For additional questions, press 1 and 0. And we're going now to Ben Briggs from Stonex. Go ahead. Hi, this is James Godwin.

Speaker Change: Okay, thank you.

Alfred Liggins: Yep.

Speaker Change #111: In August right beginning of August.

Alfred Liggins: For additional questions, press 1 and 0.

Speaker Change #112: And in July.

We launched in July.

Speaker Change #112: And.

Speaker Change #112: Yeah.

Speaker Change #112: And it's a growing service so it's a small number of subs now.

Alfred Liggins: And we're going now to Ben Briggs from Stonex, go ahead.

Speaker Change #112: Hum.

Alfred Liggins: Hi, this is James Godwin on for Ben Briggs. Thank you guys for taking the questions. I was wondering, can you provide any clarity on what the revenue and EBITDA impact of TV1 and Clio joining the Xfinity lineup will be?

Speaker Change #112: That we think will ultimately grow.

Speaker Change #112: <unk>.

Speaker Change #112: Larger so it's it has a positive impact, but it's not a hugely positive impact to our numbers.

Ben Briggs: Actually, it's not the Xfinity lineup. It's TV Now, which is their over-the-top skinny bundle. It's a $20 a month service, and it will be positive, although we just launched, I think, Jody, we just launched in August, right? Beginning of August, beginning of July.

Speaker Change #112: Awesome. Thank you guys.

Speaker Change: Actually, it's not the Xfinity lineup, it's, you know, it's

Speaker Change #112: Sure.

Speaker Change #112: Okay.

Speaker Change #113: For additional questions. Please press one zero.

Alfred Liggins: it's

Speaker Change: TV Now, which is their over-the-top

Speaker Change #113: Okay.

Speaker Change: Skinny Bundle. It's a $20 a month service.

Speaker Change #114: And we have no more questions in queue.

Speaker Change #114: Alright, thank you.

Alfred Liggins: And it will be positive, although we just launched, I think, Jody, we just launched, you know, in August , right? Beginning of August ?

Everyone and we look forward to talking with you.

Speaker Change #115: Next quarter and as usual we're available offline. Thank you very much.

Jody Drewer: We launched in July, and it's a growing service. So it's a small number of subscribers now that we think will ultimately grow larger. So it's a positive impact, but it's not a hugely positive impact on our numbers. Awesome. Thank you guys.

Speaker Change #116: Ladies and gentlemen, once again a replay for this conference call will be available through midnight on August 15th.

Alfred Liggins: into l in july

Speaker Change: We launched in July , and it's a growing service. So it's a small number of subs now that we think will ultimately grow larger. So it's a positive impact, but it's not a hugely positive.

Speaker Change #116: Access to replay from the U S style for zero to 9700, 847%.

Speaker Change #117: Access code 173, 386 international participants.

Speaker Change #117: For scratch international callers used for zero to 90 700847 domestic callers.

Speaker Change: Impact, you know, to our numbers.

Speaker Change #117: 62071041, and again that access code is one 7% or $1 73 three.

Speaker Change: Awesome, thank you guys.

Ben Briggs: For additional questions, please press 1 and 0. And we have no more questions in queue.

Alfred Liggins: Sure.

Alfred Liggins: we p ied it

Speaker Change #117: Six that does conclude your conference call for today you may now disconnect.

Alfred Liggins: Alright, thank you everyone, and we look forward to talking with you.

Operator: Alright, thank you everyone, and we look forward to talking with you.

Speaker Change: Now we have no more questions in queue.

Alfred Liggins: All right, thank you everyone and we look forward to talking with you next quarter and as usual we're available offline. Thank you very much.

Alfred Liggins: No.

Alfred Liggins: Yeah.

Peter Thompson: However, the $6.3 million non-cash benefit for the Consolidated Adjusted EBITDA was $28.4 million for the second quarter, down 24.2%. Consolidated Broadcast and Digital Operating Income was approximately $34.2 million, a decrease of 27.7%. Interest income was approximately $1.8 million in the second quarter compared to $1.9 million last year. The decrease was due to lower cash balances in interest-bearing investment accounts.

Alfred Liggins: So let's say we were looking for something that delivers us a ton, right? So it gets us down to 3-3. Yeah, if the synergies are really there and it does that, then that's probably in the strike zone, and something that you can finance. So the point is, I don't think we have to hoard cash for an M&A, you know, situation, the common M&A that we're looking for.

Peter Thompson: Increased volume through promo conversions partially offset the delivery shortfall. Cable TV affiliate revenue was down by 12.9% with contractual rate increases being offset. By approximately $3.3 million in net supply, Cable subscribers for TV One as measured by Nielsen finished the second quarter at 39.8 million compared to 40.7 million at the end of Q1. And Clio TV had 38 million Nielsen subscribers.

Peter Thompson: Capital expenditures were approximately $2.2 million in the second quarter. [inaudible] As of June 30, 2024, the total gross debt was $614.5 million. The ending unrestricted cash balance was $131.9 million, resulting in net debt of approximately $482.6 million compared to $110.5 million of LTM reported adjusted EBITDA for a total net leverage ratio of 4.37 times. And finally, we'll be timely filing the 10-Q tomorrow at some point. So it's good that we're back on track in terms of meeting our deadlines and filing timely. And with that, I will hand it back to Alfred.