Q1 2025 Cumulus Media Inc Earnings Call
Quarterly earnings Conference call.
Speaker Change: I'll now turn the call over to Collin Jones Executive Vice President of strategy and development and price President of Westwood One Sir you May proceed.
Speaker Change: Thank you operator welcome everyone to our first quarter of 2025 earnings Conference call I'm joined today by our President and CEO, Mary Berner, and our CFO Frank Lopez Balboa.
Speaker Change: Before we start please note that certain statements in today's press release and discussed on this call may constitute forward looking statements under federal Securities laws actual results may differ materially from the results expressed or implied in forward looking statements. These.
Mary Berner: And we continue to drive cost efficiencies and executed 7.5 million of additional annualized net fixed cost reduction. In parallel, we remain committed to fundamentally transforming the way we use and leverage our key assets, which include a massive megaphone that reaches 92% of the country and 250 million listeners every month, which, for example, we're using to partner with non-traditional parties who are looking to tap into our vast audiences. and ability to walk product into the door as delivered by our almost 400 locally embedded sales professionals and establish relationships with approximately 30,000 local and national businesses who are natural customers for new products we develop, both of which were key elements of the strategy driving the growth trajectory of our DMS business.
Speaker Change: These statements are based on management's current assumptions assessments and assumptions and they're subject to a number of risks and uncertainties as discussed in our filings with the SEC.
Speaker Change: In addition, we will also use certain non-GAAP financial measures. We believe the supplementary information is useful to investors, although it should not be considered superior to the measures presented in accordance with GAAP.
Speaker Change: A full description of these risks as well as financial reconciliations to non-GAAP terms are in our press release and SEC filings and the press release can be found in the Investor relations portion of our website.
Speaker Change: <unk> 10-Q was also filed with the SEC shortly before this call.
Speaker Change: A recording of today's call will be available for about a month via a link in the investor portion of our website with that I'll now turn it over to our President and CEO Mary Berner Mary.
Speaker Change: Thanks, Colin and good morning, everyone.
Speaker Change: In Q1, despite a macro environment that became more challenging since our last earnings call. Our revenue was in line with pacing guidance the imposition of sweeping tariffs in conjunction with ongoing government spending cuts has resulted in supply chain concerns inflation pressures and worsening consumer sentiment all of which have.
Mary Berner: and Audio First Multi-Platform Content Engine that creates monetizable content in an almost endless variety of formats from snackable snowshoe clips and short and long-form audio to daily podcast highlights and binge-worthy weekly rewinds. and an extensive, constantly growing library of premium audio content that can be redeployed and monetized in multiple ways, like the partnership, albeit small to start, that we created with a major tech platform to leverage AI to create automated new content from our audio library for distribution through our websites, apps, and social feeds to grow monetizable impression. Turning to our first quarter performance, our digital businesses, which to remind you have been profitable from day one, in aggregate grew 6% year over year, even with the loss of our daily wire relationship, underscoring the fact that our efforts to drive digital growth continue to pay off.
Speaker Change: Further clouded the outlook for consumer demand and contributed to pullback in advertising spending.
Speaker Change: Ill discuss those impacts, particularly in some of our key advertising categories later in the call.
Speaker Change: However, despite that backdrop, what hasnt changed since our last call is how we are responding to mitigate the impacts of the macro environment and how we are getting more out of the assets we have.
Speaker Change: Specifically, we continued to heavily focus on our digital businesses in particular on our digital marketing services business, which is up 30% during the quarter and acceleration of Q4's growth rate that has continued to build in Q2.
Mary Berner: Specifically, with respect to DMS, which remains our fastest growing business overall, revenue was up 30% in the first quarter, driven by growth in total customers, up 41%, average campaign order size, up 16%, and improvement in customer retention. Our ongoing improvement in these metrics reflects the power of our approach to the DMS market. By leveraging our extensive client relationships and the face-to-face access of our fully embedded local sales teams, we outperform industry benchmarks by an average of 25%. And given the strength of our competitive positioning and our upside potential, we are continuing to invest in additional product improvements and enhanced capabilities.
Speaker Change: We continue to hone our broadcast go to market tactics, leveraging our entire platform to maximize opportunities to sell across various markets. So that and despite the macro challenging challenges, we increased both revenue and ratings share across our large markets and network business.
Speaker Change: And we continue to drive cost efficiencies and executed $7 5 million of additional annualized net fixed cost reductions.
Speaker Change: In parallel we remain committed to fundamentally transforming the way, we use and leverage our key assets, which include a massive megaphone that reaches 92% of the country and 250 million listeners every month, which for example, we are using to partner with non traditional party. So we're looking to tap into our vast.
Mary Berner: All in all, this business is firing on all cylinders. With significant runway still ahead of us in this market, we anticipate that our DMS business alone will grow from its current revenue run rate of nearly $70 million to over $100 million plus run rate by the end of next year. Moving to podcasting, excluding the negative comp from Daily Wire, we were up close to 40%. However, with the Daily Wire included, we were down 13%. And as I mentioned on our last call, we will have an additional negative comp starting in Q2, reflecting Dan Bongino's appointment as Deputy Director of the FBI.
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Speaker Change: And ability to walk product into the door as delivered by our almost 400 locally embedded sales professionals and established relationships with approximately 30000 local and national businesses, who are natural customers for new products. We developed both of which were key elements of the strategy driving the growth trajectory.
Speaker Change: Of our Dms business.
Speaker Change: And audio first multi platform content engine that creates monetize content and an almost endless variety of formats from snacking, both snow show clips and short and long form audio the daily podcast highlights and binge worthy weekly re wines.
Mary Berner: That said, we replaced Dan with Vince Colonese on both radio and the podcast shows. Vince is a popular Washington, D.C.-based radio host from WMAL-FM and Editorial Director of the conservative daily news publication, The Daily Caller. We're very pleased with how Vince has performed so far. The radio show relaunched with over 250 affiliates, including six of the top 10 markets, while the podcast finished the month of March 3rd in the top podcasts as measured by weekly average downloads. This resulted in revenue from the podcast show exceeding internal expectations. Streaming, our third digital business, was up 4% during the quarter.
Speaker Change: And an extensive constantly growing library of premium audio content that can be redeployed and monetized in multiple ways like the partnership, albeit small to start that we created with a major tech platform to leverage AI to create automated new content from our audio library for distribution through our websites apps.
Speaker Change: Social feeds to grow monetize a Boe impressions.
Speaker Change: Turning to our first quarter performance, our digital businesses, which to remind you have been profitable from day, one in aggregate grew 6% year over year, even with the loss of our daily wire relationship underscoring. The fact that our efforts to drive digital growth continue to pay off.
Mary Berner: As mentioned on prior calls, we brought the sales function for streaming completely in-house last year, replacing an outsourced fixed-rate sales contract. This move is already benefiting us as it is allowing us to better manage and optimize the monetization of our streaming impressions. In our broadcast business, as I mentioned, the negative impacts of new tariffs and government spending cuts on the economy and consumer demand continue to weigh heavily on advertisers. We experienced pullbacks across several key advertising categories, including automotive, retail, and CPG, with the impacts felt both on the local and national sides. That said, though consumer sentiment has worsened, there were some positive categories in the quarter, including in the insurance and the financial categories.
Speaker Change: Specifically with respect to Dms, which remains our fastest growing business overall.
Speaker Change: Revenue was up 30% in the first quarter driven by growth in total customers up 41% average campaign order size up 16% and improvement in customer retention.
Speaker Change: Our ongoing improvement in these metrics reflects the power of our approach to the Dms market by leveraging our extensive client relationships and the face to face access of our fully embedded local sales teams, we outperformed industry benchmarks by an average of 25%.
Speaker Change: And given the strength of our competitive positioning and our upside potential we are continuing to invest in additional product improvements and enhanced capabilities. All in all this business is firing on all cylinders.
Mary Berner: As we continue to take advantage of demand opportunities when and as they occur, for example, capitalizing on the enthusiasm for our premium sports content, including the NFL and NCAA, which allowed us to achieve all time revenue highs in the NFL playoffs and Super Bowl. Another way we're enhancing how we sell our broadcast assets is through the expansion of our Beyond Home Market business, which was up 48% in the quarter, following the fourth quarter year-over-year growth of 45%. With in-market sales teams in 84 markets, we can walk our portfolio of broadcast and digital products through the door, providing a one-stop-shop solution for the creation, execution, and ongoing optimization of multi-platform, multi-market campaigns for clients across all their locations.
Speaker Change: With significant runway still ahead of us in this market, we anticipate that our Dms business alone will grow from its current revenue run rate of nearly $70 million to over $100 million plus run rate by the end of next year.
Speaker Change: Moving to podcast, Inc. Excluding the negative comp from daily wire, we were up close to 40%. However, with the daily wire included we were down 13%.
Speaker Change: And as I mentioned on our last call. We will have an additional negative comps starting in Q2, reflecting Dan Bungie knows appointment as deputy director of the FBI.
Speaker Change: That said, we replaced stand with Vince <unk> on both radio and podcast shows Vince.
Vince: This is a popular Washington D. C based radio hosts from WMA, all FM and editorial director of the Conservative Daily News publication the daily color.
Mary Berner: We're also seeing a positive impact from our emphasis on live and local programming and continue to see its ability to drive ratings and revenue as listeners and local advertisers value the trust created with local on-air personalities who are very involved in their communities. To that point, we have seen across numerous markets that where we have a higher concentration of live and local programming than our competitors, we are outperforming them from a rating share perspective. Unsurprisingly, given the difficult broadcast environment, we continue to focus on fixed cost reductions. During the quarter, we cut $7.5 million of annualized net fixed costs, which will be recognized through the balance of 2025.
Vince: We're very pleased with how Vince has performed so far a radio show relaunched with over 250 affiliates, including six of the top 10 markets. While the podcast finished the month of March 3rd in the top podcasts as measured by weekly average downloads. This resulted in revenue from the show exceeding internal expectations.
Vince: Streaming our third digital business was up 4% during the quarter as mentioned on prior calls we are.
Vince: The sales function for streaming completely in house last year, replacing an outsource fix rate sales contract. This move is already benefiting us as it is allowing us to better manage and optimize the monetization of our streaming impressions.
Mary Berner: Those actions are on top of the $163 million of fixed cost reductions, or 27% of our 2019 fixed cost base that we've made since then.
Vince: In our broadcast business as I mentioned, the negative impacts of new tariffs and government spending cuts on the economy and consumer demand continue to weigh heavily on advertisers experienced pullbacks across several key advertising categories, including automotive retail and CPG with the impacts felt both on the local.
Mary Berner: Additionally, we've been exploring numerous ways to use AI, and today we are deploying it across a variety of functions within the company. For instance, our sales organization is creating more efficient advertising proposals by using AI voice cloning to create sample commercials in seconds. And we have implemented AI chat box across our various e-commerce websites to improve customer service. These are just two examples of the ways we are starting to use AI to become more efficient and cost-effective. Moving to the balance sheet, while the first quarter is seasonally our low point in revenue and cash generation, our aggressive working capital management allowed us to maintain ample liquidity with $53 million of cash on hand plus an undrawn ABL.
Vince: And national sides.
Vince: That said, though consumer sentiment has working worsened there were some positive categories in the quarter, including in the insurance and the financial categories.
Vince: As we continue to take advantage of demand opportunities when and as they occur for example, capitalizing on the enthusiasm for our premium sports content, including the NFL and NCAA, which allowed us to achieve all time revenue highs in the NFL playoffs and Super Bowl.
Vince: Another way, we are enhancing how we sell our broadcast assets through the expanse expansion of our beyond home market business, which was up 48% in the quarter. Following the fourth quarter year over year growth of 45% with end market sales teams in 84 markets. We can work our portfolio of broadcast and digital products through the door.
Mary Berner: As we move forward, we will continue our focus on increasing operating efficiency while still supporting our various growth initiatives across both digital and broadcast. From a balance sheet perspective, our focus will remain on net debt reduction, utilizing cash generated from operations and the modernization of non-core and non-eBITDA producing assets. Looking ahead and reflecting the ongoing economic uncertainty impacting our advertising clients, pacing is down approximately 10% or 5% ex-political, ex-Daily Wire, and that of the Bongino impact.
Vince: We're providing a one stop shop solution.
Vince: The creation execution and ongoing optimization of multi platform multi market campaigns for clients across all their locations.
Vince: We're also seeing a positive impact from our emphasis on live and local programming and continue to see its ability to drive ratings and revenue as listeners and local advertisers value. The trust created with local on air personalities, we're very involved in their communities.
Mary Berner: Before turning it over to Frank, I want to remind you that we recently released our proxy. It reflects our extensive shareholder engagement efforts since last year's annual meeting and the implementation of numerous governance and compensation changes in response to shareholder feedback. And we encourage you to read it.
Vince: To that point, we have seen across numerous markets that where we have a higher concentration of live and local programming that are competitors. We are outperforming them from a rating share professor perspective.
Frank Lopez-Valboa: With that, I'll turn the call over to Frank. Frank? Thank you, Mary. Total revenue was down 6.4%. We're down 3.7% excluding political and the impact of the Daily Wire, both in line with the patient commentary that we gave in our last earnings call. He was out for the quarter, it was $3.5 million. Digital continued to be an area of growth of 6% in total, or up 20% excluding the impact of the loss of the daily wire relationship. GMS continues to be our fastest growing business, up 30% in Q1 and is currently pacing up more than 35% in Q2.
Vince: Unsurprisingly given the difficult broadcast environment, we continue to focus on fixed cost reductions.
Vince: During the quarter, we cut $7 5 million of annualized net fixed costs, which will be recognized through the balance of 2025.
Vince: Those actions are on top of the $163 million of fixed cost reductions or 27% of our net 2019 fixed cost base that we've made since then.
Vince: Additionally, we've been exploring numerous ways to use AI and today, we are deploying it across a variety of functions within the company.
Vince: Instance, our sales organization is creating more effective advertising and efficient advertising proposals by using AI voice cloning to create sample commercials in seconds, and we have implemented AI chat box across our various e-commerce websites to improve customer service.
Frank Lopez-Valboa: From a category perspective, as Mary mentioned, the insurance and financial categories grew during the quarter, while automotive, retail, and CPG were some of our worst performing categories. Moving to expenses, total expenses in the quarter decreased by approximately $8 million year-over-year, reflecting our ongoing cost reduction efforts, partially offset by higher expenses associated with growth in our digital businesses.
Vince: Is it just two examples of the ways, we are starting to use AI to become more efficient and cost effective.
Vince: Moving to the balance sheet, while the first quarter is seasonally our low point in revenue and cash generation are aggressive working capital management allowed us to maintain ample liquidity with $53 million of cash on hand, plus an undrawn ABL.
Frank Lopez-Valboa: In the first quarter, we executed on an additional $7.5 million of annualized fixed cost reductions, adding to the $163 million of fixed cost reductions we've taken out since 2019. Turn to the balance sheet, the end of the quarter was $53 million of cash. that have matured is 642 million. and net debt of $589 million when excluding the $28 million of principal debt reduction resulting from the exchange offer which would be amortized over the term of the debt. First quarter CapEx was $5.5 million and we expect full year CapEx to be $22.5 million as per our previous guidance.
Vince: As we move forward, we will continue our focus on increasing operating efficiency, while still supporting our various growth initiatives across both digital and broadcast from.
Vince: From a balance sheet perspective, our focus will remain on net debt reduction utilizing cash generated from operating generated from operations and the monetization of noncore and non EBITDA producing assets.
Frank Lopez-Valboa: Looking ahead, as Mary previously mentioned, we're currently pacing down approximately 10% and down approximately 5% ex-political, ex-Daily Wire, and that of the Bongino impact.
Vince: Looking ahead, and reflecting the ongoing economic uncertainty impacting our advertising clients pacing is down approximately 10% or 5% ex political ex daily wire and net.
Operator: With that, we can now open the line for questions. Operator. Thank you. At this time, we will now proceed with our Q&A session. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you are using a speakerphone, please remember to pick up your headset before asking a question. We'll pause here briefly while your questions are registered.
Vince: <unk> impact.
Vince: Before turning it over to Frank I want to remind you that we recently released our proxy it reflects.
Frank: Our extensive shareholder engagements efforts since last year's annual meeting and the implementation of numerous government governance and compensation changes in response to shareholder feedback and we encourage you to read it with that I will turn the call over to Frank Frank.
Frank: Thank you Mary total revenue was down six 4%.
Michael Kupinski: The first question is from the line of Michael Kupinski with Noble Capital Markets may proceed. Thank you. Good morning, and thanks for taking my questions. Just a couple of questions here. On the network side, I was just wondering, were there any programs or content that you had last year that you didn't have this year in the first quarter? And I was just trying to get a sense of maybe the, what were the, some of the more significant drivers of the decline in network for this particular quarter? And if it was kind of similar to what you saw in the fourth quarter of last year, were there any particular changes in the categories and so forth?
Frank: Down three 7%, excluding political and the impact of the daily wire both in line with the pacing commentary that we gave in our last earnings call.
Frank: EBITDA for the quarter was $3 5 million.
Frank: Digital continues to be an area of growth up 6% in total were up 20%, excluding the impact of the loss of the daily wire relationship.
This continues to be our fastest growing business up 30% in Q1 and is currently pacing up more than 35% in Q2.
Frank: From a category perspective, as Mary mentioned.
Frank: The insurance and financial categories grew during the quarter, while automotive retail and CPG for some of our worst performing categories.
Mary Berner: Good morning, Michael. I'll take that question. Our program really didn't significantly change in the network in the first quarter. And the trends that we saw in the first quarter, really on a national market basis, which impact our national spot as well as the network is really driven by general weakness in the general market demand. And so while our sports properties performed quite well, it's just the general weakness and demand that in the general market that's driving that reduction in the network.
Frank: Moving to expenses total expenses in the quarter decreased by approximately $8 million year over year, reflecting our ongoing cost reduction efforts.
Frank: Partially offset by higher expenses associated with growth in our digital businesses.
Frank: In the first quarter, we executed on an additional $7 5 million of annualized fixed cost reductions added to the $163 million of fixed cost reductions we've taken out since 2019.
Frank: Turning to the balance sheet, we ended the quarter with $53 million of cash.
Frank: Debt maturity of $642 million.
Michael Kupinski: I'll also remind you since the second quarter, we don't have sports. Similar to last year, the second quarter network will have a tough comp because the environment for general market demand is weak. So while not given guidance, and it's early in the quarter, I would expect the network to perform worse spot and worse than we saw in the first quarter. Gotcha.
Frank: Net debt of $589 million when excluding the 28 million of principal debt reduction resulted from the exchange offer which will be amortized over the term of the debt.
First quarter Capex was $5 5 million and we expect full year capex to be $22 5 million as per our previous guidance.
Looking ahead as Mary previously mentioned, we're currently pacing down approximately 10%.
Frank: And down approximately 5% ex political ex daily wider.
Michael Kupinski: And in terms of the, like the cadence of how the quarter shaped up, can you kind of give us a sense of, you know, month by month, how the revenues performed both on the spot and on the network side? So we had our earnings call basically with one month to go in the quarter, and at the time of the earnings call, I think that was maybe a week or two after or around the time the tariffs were announced. and we did say we were pacing down additional digits and but we did lose a little bit of pace and that's why we ended up instead of down five percent uh down to six uh slightly over six percent as we talked about um and uh Advertisers are placing orders much later in the quarter and we'll see we'll see how that I would like to go to the second quarter.
Frank: Thank you at this time, we will now proceed with our Q&A session. If you will.
Frank: Like to ask a question. Please press star one on your telephone keypad.
Frank: Any reason you would like to turn that question. Please press star followed last year again to ask a question press Star one.
Frank: As a reminder, if you are using a speaker phone. Please remember to pick up your handset before asking a question, we'll pause briefly while your questions are registered.
Speaker Change: The first question is from the line of Michael <unk> with Noble capital markets. You May proceed.
Michael: Thank you good morning, and thanks for taking my questions. Just a couple of questions here on the network side. I was just wondering are there any programs or content that you had last year that you didn't have this year in the first quarter.
Michael: I was just trying to get a sense of maybe what were the some of the more significant drivers of the decline in network for this particular quarter and if it was kind of similar to what you saw in the fourth quarter of last year, where there any particular changes in the categories and so forth.
Michael Kupinski: Gotcha.
Michael Kupinski: And then just a kind of a quick question, because the FCC has kind of indicated that they're interested in more deregulations in the industry. And I know, you know, there was some additional comments at the NAB recently, and I was just wondering if you can kind of give us your thoughts on how deregulation might play out and how this might affect you.
Mike: Hi, Good morning, Mike I'll take that question.
Michael: Our program really doesn't significantly change in the network and the.
Michael Kupinski: And then you mentioned about the prospect of asset sales, and I was just wondering if you can just kind of give us an update on the prospect of asset sales and where you might, you know, stand on that currently.
Speaker Change: First quarter.
Speaker Change: The trends we saw in the first quarter really a national market basis, which impact our national spot as well as the network is really driven by general weakness in the general market demand.
Mary Berner: Yeah, hi, Mike. Good morning. I think, like others in the industry, we are optimistic about the possibility of FCC deregulation. I think that the next step, of course, is the confirmation of the fifth FCC commissioner. So we have to wait for the Republicans to have a majority. We think that will be in early or mid summer. And then the expectation is that a that there will be a notice of proposed rulemaking that will address the cap by late summer and fall. So we're optimistic. And, you know, it could take a while to become actually become a regulation.
Speaker Change: So while our sports properties performed quite well, it's just the general weakness in demand.
Speaker Change: Got it and then the general market, that's driving that reduction in the networks I'll also remind you since the second quarter, we don't have sports.
Speaker Change: Similar to last year's second quarter network will have the tough comp because.
Speaker Change: The environment for general market.
Speaker Change: And as we.
Speaker Change: While not giving guidance.
Frank Lopez-Valboa: But I think things are moving in the right way, which is which is good news for the industry as it relates to asset sales.
Speaker Change: Spot and where some young.
Speaker Change: We saw in the first quarter.
Speaker Change: Got you and in terms of the like the cadence of how the quarter shaped up can you kind of give us a sense of.
Frank Lopez-Valboa: I think I'll let Frank address that. Thank you, Mary. In the first quarter, we did do a couple of small asset sales of land, but in aggregate, that was just under a million dollars. As I mentioned previously, and as you know, we do have a nice piece of land in Nashville, which we're cautiously optimistic that that's something we could sell this year. And I think I mentioned in previous calls that as we're planning throughout the year, we'd be disappointed if we had less than $10 to $15 million of proceeds from asset sales, and that's still our current view.
Speaker Change: Month by month.
Speaker Change: How how the revenues performed both on the spot and on the network side.
Speaker Change: And.
Speaker Change: At the time of the earnings call I think there was maybe a week or two after around the time of the tariffs were announced.
Speaker Change: And we did say we were pacing down mid single digits, and but we did lose a little bit of a pace and that's what we ended up instead of down 5%.
Speaker Change: Down to six.
Michael Kupinski: Okay, great. All right, that's all I have. Thank you.
Speaker Change: I think it was 6% as we talked about.
Speaker Change: And.
Operator: There are currently no questions registered.
Speaker Change: Advertisers, our advertisers are placing orders much later in the quarter.
Mary Berner: So at this time, I'd like to pass the call back over to our management team for any further remarks. Thanks everyone for participating. We will see you in at the next call. Thanks. Thank you all.
Speaker Change: We will see we will see how that.
Speaker Change: How that goes in the second quarter.
Speaker Change: Got you and then just to kind of a quick question because the FCC has.
Operator: That will now conclude today's conference call. We appreciate your participation. Hope you all have a wonderful day, and you may now disconnect your line.
Speaker Change: You had kind of indicated that they are interested in more deregulation in the industry and I know.
Speaker Change: Sure.
Speaker Change: There was some additional comments at the <unk> recently and I was just wondering if you can kind of give us your thoughts on how deregulation might play out and how this might affect you and then.
Speaker Change: You mentioned about the prospect of asset sales and I was just wondering if you can just kind of give us an update on the prospect of asset sales and where he might.
Speaker Change: Stand on that currently.
Mike: Yes, Hi, Mike Good morning.
Speaker Change: I think like others in the industry, we are optimistic.
Speaker Change: About the possibility of FCC deregulation I think.
Speaker Change: The next step of course is the confirmation of the SEC.
Speaker Change: Commissioner so we have to wait for the Republicans to have a majority we think that will be in early or mid summer.
Speaker Change: And then the expectation is that there'll be a notice of proposed rulemaking that will address the cap by late summer and fall So we're optimistic and.
Speaker Change: It could take a while to become Brexit.
Speaker Change: Actually it become a regulation, but I think things are moving in the right way.
Speaker Change: Which is which is good news for the industry.
Speaker Change: As it relates to asset sales I think I'll, let Frank address that.
Frank: Alright, Thank you Barry.
Frank: In the first quarter, we did do a couple of small asset sales.
Frank: But in aggregate and that.
Frank: It was just under $1 million.
Frank: As I mentioned previously.
Frank: And as you know do you have a nice piece of land in Nashville, which.
Frank: We're cautiously optimistic that that's something that we could sell this year.
Frank: And I think I've mentioned in previous calls that.
Frank: As we were planning throughout the year.
Frank: We'd be disappointed if we had less than $10 million to $15 million of proceeds from asset sales.
Frank: So our current view.
Frank: Okay, Great Alright, that's all I have thank you.
Speaker Change: Thank you there are currently no questions registered at this time I would like to pass the call back over to our management team for any further remarks.
Frank: Thanks, everyone for participating we will see you in at the next call. Thanks.
Thank you all that will now conclude today's conference call. We appreciate your participation and hope you all have a wonderful day you may now disconnect your lines.