Q3 2025 Urban One Inc Earnings Call

Speaker #4: Ladies and gentlemen , thank you for standing by . And welcome to the Urban One 2025 third quarter Earnings Call . As a reminder , this conference is being recorded .

Operator: Ladies and gentlemen, thank you for standing by and welcome to the Urban One 2025 Q3 earnings call. As a reminder, this conference is being recorded. We will begin this call with the following safe harbor statement. 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 actual results to differ materially from those indicated by its projections or forward-looking statements. This call will present information as of 4 November 2025. Please note that Urban One disclaims any duty to update any forward-looking statements made in the presentation.

Speaker #4: We will begin this call with a follow up with the following safe harbor statement . 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 .

Speaker #4: Urban one cautions you that factors , including certain risks and uncertainties referred to in the 10-K , ten kHz and other reports if 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 .

Speaker #4: This call will present information as of November 4th , 2025 . Please note that urban one disclaims any duty to update any forward looking statements made in the presentation .

Speaker #4: In this call , urban discuss some non-GAAP financial measures . In talking about its performance . These measures will be reconciled to GAAP either during the course or this call , or in this company's press release , which can be found on its website at WW Urban One Inc .

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 or this call or in this company's press release, which can be found on its website at www.urbanone.com. A replay of the conference call will be available from 2:00 PM Eastern Standard Time, 4 November 2025 until 11:59 PM Eastern Standard Time, 14 November 2025. Callers may access the replay by calling 1-800-770-2030. International callers may dial direct +1 609-809-9099. The replay access code is 7822067. Access to live audio and a replay of the conference will also be available on Urban One's corporate website at www.urbanone.com.

Speaker #4: A replay of the conference call will be available from 2 p.m. Eastern Standard Time , November 4th , 2025 until 11:59 p.m. Eastern Standard Time , November 14th , 2025 .

Speaker #4: Callers may access the replay by calling one 877 02030 . International callers may dial Direct plus 1609 1st May also 890 909 . The replay access code is 7822067 .

Speaker #4: Access to live audio and replay of the conference will also be available on Urban One Inc corporate website at WW . Urban One Inc .

Speaker #4: 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 .

Operator: 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. I will now turn the call over to Alfred C. Liggins, Chief Executive Officer of Urban One, who is joined by Peter Thompson, Chief Financial Officer. Mr. Liggins, please go ahead.

Speaker #4: I will now turn the call over to Alfred . C Liggins , Chief Executive officer of Urban One , who is joined by Peter Thompson chief financial officer .

Speaker #4: Mr. Wiggins , please go ahead .

Speaker #5: Thank you very much . Operator and welcome , everybody . And as usual , we're joined by other team members here . Jodie , our chief Financial Officer for TV one , and Cleo , in case we got some questions on the cable business .

Alfred C. Liggins III: Thank you very much operator, welcome everybody. As usual, we're joined by other team members here, Jody Drewer, our Chief Financial Officer for TV One and CLEO TV, in case we've got some questions on the cable business. Karen Wishart, our Chief Administrative Officer, Kristopher Simpson, our Chief Legal Officer, and also Veronica Takis, who is our Chief Accounting Officer. Thank you very much again for joining us this quarter. You've seen the press release, hopefully, that we put out. You know, business came in a bit softer, you know, for the quarter than we, you know, had usually expected across the board. Our core radio pacings going forward are facing big political headwinds.

Speaker #5: Karen Wishart , our chief administrative officer , Chris Simpson , our chief legal officer , and also Veronica . Veronica Takis , who is our chief accounting officer and so thank you very much again for joining us this quarter .

Speaker #5: Now you've seen the press release , hopefully , that we put out business came in a bit softer for the quarter than we had projected across the board .

Speaker #5: Our core radio , the pacing is going forward are facing big political headwinds . So looking about -30 right now . However , ex-political we're down to almost mid-single digits , about 6.4% , which is better ?

Peter Thompson: Yeah.

Alfred C. Liggins III: Looking about, you know, -$30 right now. Ex-political, you know, we're down to almost mid-single digits, 6.4%, which is better. It's an improvement. Because the revenues have come in lighter with Q3, we are adjusting our guide for the year. Last quarter, we guided to a $60 million EBITDA number. We generally usually give a range. We gave a hard number last quarter. We're adjusting that guide down to $56 to 58 million of EBITDA for the full year as we, you know, come to the close.

Speaker #5: It's an improvement . But because the revenues have come in lighter with Q3 , we are adjusting our guide for the year last quarter , we guided to a $60 million EBITDA number .

Speaker #5: We generally usually give a range . We gave a hard number last quarter . We're adjusting that guide down to 56 to $58 million .

Speaker #5: Of EBITDA for for the full year , as we come to the close with within our third quarter . And last quarter , I said that we were going to look to do another round of cost savings , and we actually did that in Q3 , which resulted in about $3 million of annualized expense savings .

Alfred C. Liggins III: Within our Q3, last quarter, I said that we were gonna look to do another round of cost saves, we actually did that in Q3, which resulted in about $3 million of annualized expense savings. This is in addition to the $5 million that we had done earlier in the year. Peter's gonna talk about the impact on the numbers in Q3 of that in terms of severance. With that, I'm gonna turn it over to Peter so he can go into the details of the numbers, we'll come back for Q&A.

Speaker #5: This is in addition to the $5 million that we had done earlier in the year . Peter is going to talk about the the impact on the numbers in Q3 of that in terms of severance .

Speaker #5: And so with that , I'm going to turn it over to Peter so he can go into the details of the numbers , and then we'll come back to Q&A .

Speaker #6: Thank you Alfred . So consolidated net revenue is approximately $92.7 million , which was down 16% year over year . Net revenue for the radio broadcasting segment was $34.7 million .

Peter Thompson: Thank you, Alfred. Consolidated net revenue is approximately $92.7 million, which was down 16% year over year. Net revenue for the radio broadcasting segment was $34.7 million, a decrease of 12.6% year over year. Excluding political, net radio revenues were down 8.1% year over year. According to Miller Kaplan, our local ad sales were down 6.5% against a market that was down 10.1%, so we outperformed on local. On national ad sales, we were down 29.1% against a market that was down 21.5%, so we underperformed on national. Our largest ad category was services, which was up 22.9%, driven by legal services. Financial was up 17.9%.

Speaker #6: Due to of 12.6% year over year , excluding political net radio , revenues were down 8.1% year over year , and according to Miller Kaplan , our local ad sales were down 6.5% against a market that was down 10.1% .

Speaker #6: So we outperformed on local and on national ad sales . We were down 29.1% against a market that was down 21.5% . So we underperformed our national , our largest ad category was services , which was up 22.9% , driven by legal services .

Speaker #6: Financial was up 17.9% , but all the other major categories were down , including government , health , retail , entertainment , auto , telecoms , food and beverage .

Peter Thompson: All the other major categories were down, including government, health, retail, entertainment, auto, telecoms, food, and beverage. Net revenue for the Reach Media segment was $6.1 million in Q3, down 40% from the prior year. Adjusted EBITDA at Reach was a loss of approximately $200,000 for the quarter. That was really a lower overall network audio market, lower national sales renewals, and probably a drying up of DEI that drove the decline at Reach. Net revenues for the digital segment were down 30.6% in Q3 at $12.7 million. Direct and indirect digital sales were down by approximately $4.4 million. That decline was the result of decreases in DEI money, back to school, political, and overall softer client demand.

Speaker #6: Net revenue for the Reach media segment was $6.1 million in the third quarter , down 40% from the prior year , and adjusted EBITDA was a loss of approximately $200,000 for the quarter .

Speaker #6: And that was really a lower overall network audio market , lower national sales renewals and probably a drying up of Di that drove the decline that reach net revenues for the digital segment were down 30.6% in Q3 at $12.7 million .

Speaker #6: Direct and indirect digital sales , down by approximately $4.4 million . Decline was the result of decreases in Di money back to school political and overall softer client demand .

Peter Thompson: Audio streaming was down by $1.3 million year over year. Adjusted EBITDA was approximately $0.8 million compared to $5.3 million last year. We recognized approximately $39.8 million of revenue from our cable television segment during the quarter, a decrease of 7%. Cable TV advertising revenue was down by 5.4%. Total day delivery declined by 29.4%, P25-54, which was partially offset by an increase in CTV and third-party platform revenue share. Cable TV affiliate revenue was down by 9.1%, driven by subscriber churn. Cable subscribers to TV One, as measured by Nielsen, finished Q3 at 34.1 million, compared to 34.3 million at the end of Q2. CLEO TV had 33.5 million Nielsen subs.

Speaker #6: Audio streaming was down by $1.3 million . Over year . Adjusted EBITDA was approximately $0.8 million , compared to $5.3 million last year .

Speaker #6: We recognized approximately $39.8 million of revenue from our cable television segment during the quarter , a decrease of 7% . Cable TV advertising revenue was down by 5.4% .

Speaker #6: Total day delivery declined by 29.4% , P 2554 , which was partially offset by an increase in CTV and third party revenue share .

Speaker #6: Cable TV affiliate revenue was down by 9.1% , driven by subscriber churn . Cable subscribers for TV one , as measured by Nielsen Q3 at 34.1 million , compared to 34.3 million at the end of Q2 , and Cleo TV had 33.5 million .

Speaker #6: Nielsen subs operating expenses , excluding depreciation and amortization , stock based compensation and impairment of goodwill and intangible assets decreased to approximately $83.7 million for the quarter , a decrease of 4.2% from the prior year .

Peter Thompson: Operating expenses, excluding depreciation and amortization, stock-based compensation, and impairment of goodwill and intangible assets, decreased to approximately $83.7 million for the quarter, a decrease of 4.2% from the prior year. There was some noise in the expenses. We had a notable expense decrease in corporate and professional fees and overall payroll expenses. Also, cable television content amortization was down. We had the August RMLC settlement with ASCAP and BMI that resulted in an average royalty rate increase of 20%, retroactive to January 2022. We recorded approximately $3.1 million of retroactive royalties in Q3, and you see that in the program in the technical expense in the Radio segment. We did add that back to adjusted EBITDA.

Speaker #6: There was some noise in the expenses . We had a notable expense decrease in corporate and professional fees and overall payroll expenses . Also , cable television content amortization was down , but we had the August MLC settlement with ASCAP and BMI that resulted in an average royalty rate increase of 20% , retroactive to January of 2022 .

Speaker #6: And so we recorded approximately $3.1 million of retroactive royalties in Q3 . And you see that in the programming and technical expense in the radio segment .

Speaker #6: We did add that back to adjusted EBITDA . The company has Alfred said , completed a second reduction in force in October as part of the ongoing cost reduction efforts and as a result , we had 1,000,006 of employee severance costs , which we recorded in third quarter .

Peter Thompson: The company, as Alfred C. Liggins said, completed a second reduction in force in October. It's part of the ongoing cost reduction efforts. As a result, we had $1.6 million of employee severance costs, which we recorded in Q3, but we also added that back to the adjusted EBITDA for the quarter. Radio operating expenses were down 5% or $1.7 million, driven by lower employee compensation, sales commissions, and a favorable change in the bad debt reserve compared to prior year. Reach operating expenses were up by 8%. That was due to a favorable change in the bad debt reserve that we took in the prior year. Operating expenses in the Digital segment were down 2.6%. That was driven by lower employee compensation.

Speaker #6: But we also added that back to the adjusted EBITDA for the quarter , radio operating expenses were down 5% , or $1.7 million , driven by lower employee compensation sales commissions and a favorable change in the bad debt reserve compared to prior year , reach .

Speaker #6: Operating expenses were up by 8% , and that was due to a favorable change in the bad debt reserve that we took in the prior year .

Speaker #6: Operating expenses in the digital segment were down 2.6% , and that was driven by lower employee compensation , operating expenses in the cable TV segment were down 2.4% year over year , driven by lower programming content amortization due to fewer premiere hours compared to last year .

Peter Thompson: Operating expenses in the Cable TV Segment were down 2.4% year-over-year, driven by lower program and content amortization due to fewer premier hours compared to last year. Operating expenses in corporate were down by approximately $1.5 million. The third-party finance and accounting professional fees were down significantly year-over-year. Consolidated adjusted EBITDA was $14.2 million for Q3, down 44.1%. Consolidated broadcast and digital operating income was approximately $20 million, a decrease of 43.6%. Interest and investment income was approximately $0.5 million in Q3 compared to $1.1 million last year. Decrease was due to lower cash balances in interest-bearing investment accounts.

Speaker #6: Operating expenses in corporate were down by approximately $1.5 million . The third party finance and accounting professional fees were down significantly year over year .

Speaker #6: Consolidated adjusted EBITDA was $14.2 million for the third quarter , down 44.1% , and consolidated broadcast and digital operating income was approximately $20 million , a decrease of 43.6% .

Speaker #6: Interest and investment income was approximately $0.5 million in the third quarter , compared to $1.1 million last year . Decrease was due to lower cash balance , lower cash balances , in interest bearing investment accounts , interest expense decreased to approximately $9.4 million in Q3 , down from $11.6 million last year due to lower overall debt balances .

Peter Thompson: Interest expense decreased to approximately $9.4 million in Q3, down from $11.6 million last year due to lower overall debt balances as a result of the company's debt repurchase efforts. Company made cash interest payments of approximately $18.2 million in the quarter. During the quarter, the company repurchased four and a half million dollars of its 2028 notes at an average price of 52%, bringing down the gross balance on the debt to $487.8 million as of 30 September 2025. Our depreciation and amortization expense increased $4.9 million as a result of the company's change to the useful life of TV One trade names and our FCC licenses, which we moved from indefinite lives to finite lives.

Speaker #6: As a result of the company's debt repurchase efforts , company made cash interest payments of approximately $18.2 million in the quarter , and during the quarter , the company repurchased $4.5 million of its 2028 notes and an average price of 52% , bringing down the gross balance on the debt to $487.8 million .

Speaker #6: As of September 30th , 2025 . Our depreciation and amortization expense increased $4.9 million as a result of the company's change to the useful life of tbe one trade names and our FCC licenses , which we moved from indefinite lived to finite live benefit from income taxes was approximately $1.1 million for the third quarter , and the company paid cash income taxes , net of refunds , in the amount of $0.1 million .

Peter Thompson: Benefit from income taxes was approximately $1.1 million for Q3, and the company paid cash income taxes net of refunds in the amount of $0.1 million. Capital expenditures were approximately $3.1 million. Our net loss was approximately $2.8 million or $0.06 per share, compared to net loss of $31.8 million or $0.68 per share for Q3 2024. During the three months ended 30 September 2025, the company repurchased 176,591 shares of Class A common stock in the amount of approximately $0.3 million at an average price of $1.75 per share.

Speaker #6: Capital expenditures were approximately $3.1 million , and net loss was approximately $2.8 million , or $0.06 per share , compared to net loss of $31.8 million , or $0.68 per share , for the third quarter of 2020 .

Speaker #6: For during the three months ended September 30th , 2020 , five , the company repurchased 176,591 shares of class A common stock in the amount of approximately $0.3 million , at an average price of $1.75 per share , and the company also repurchased 592,822 shares of class D common stock in the amount of approximately $0.4 million , and an average price of $0.73 a share .

Peter Thompson: The company also repurchased 592,822 shares of Class D common stock in the amount of approximately $0.4 million at an average price of $0.73 a share. As of 30 September 2025, total gross debt was approximately $487.8 million. Our ending unrestricted cash balance was $79.3 million, resulting in net debt of approximately $408.5 million, which we compared to $67.9 million of LTM reported adjusted EBITDA, giving a total net leverage ratio of 6.02 times. With that, I'll hand it back to Alfred.

Speaker #6: As of September 30th , 2025 . Total gross debt was approximately $487.8 million . Our ending unrestricted cash balance was $79.3 million , resulting in net debt of approximately $408.5 million , which we compared to $67.9 million of LTM reported adjusted EBITDA .

Speaker #6: Given a total net leverage ratio of 6.02 times . And with that , I'll hand back to alpha .

Alfred C. Liggins III: Thank you very much, Peter. Operator, can we go to the lines for questions, please?

Speaker #5: Thank you very much , Peter . Operator , can we go to the lines for questions , please ?

Speaker #4: Thank you . At this time , we would like to take as many questions as we have time for . If you'd like to ask a question , please press star followed by the number one on your telephone keypad .

Operator: Thank you. At this time, we would like to take as many questions as we have time for. If you'd like to ask a question, please press star followed by the 1 on your telephone keypad. Once again, that is star followed by the 1 on your telephone keypad to enter the question queue. We'll pause for a moment to compile the Q&A roster. Our first question comes from the line of Ben Briggs with StoneX Financial. Your line is open.

Speaker #4: Once again, that is star, followed by the number one on your telephone keypad to enter the question queue. We'll pause for a moment to compile the Q&A roster.

Speaker #4: Our first question comes from the line of Ben Briggs with Stone financial . Your line is open .

Speaker #7: Good morning guys . Thank you for thank you for doing the call . Have have a couple of questions here . So first of all and I know I know we're looking forwards a little ways but and we're only you know part of the way through the fourth quarter .

Ben Briggs: Good morning, guys. Thank you for doing the call. Have a couple of questions here. First of all, I know we're looking forwards a little ways, we're only, you know, part of the way through Q4. How are you guys thinking about 2026, what demand looks like there and what listenership may be, kinda how the pieces of the puzzle are going to fit together then?

Speaker #7: How are you guys thinking about 2026 . And what demand looks like there and what listenership may be kind of how the how the pieces of the puzzle are going to fit together .

Speaker #7: Then .

Speaker #5: Yeah . We feel good about 2026 . For a number of reasons . One , not obviously , we're going into a political year , but two , a number of the places that we've had challenges this year , we have we've changed our operating strategy .

Alfred C. Liggins III: Yeah. We feel good about 2026 for a number of reasons. One, you know, obviously we're going into a political year. Two, a number of the places that we've had challenges this year, we, you know, have changed our operating strategy, you know, to address that. You know, I would say, you know, most notably, you know, where, you know, Reach Media's had a very tough year because we got caught flat-footed with a big decline in our largest advertiser, you know, in the company with unexpected cancellations. These were, you know, cancellations across the board. When I say across the board, across the whole audio sector.

Speaker #5: You know , to address that . You know , I would say , you know , most notably , we're rich . Media has had a very tough year because we got caught .

Speaker #5: Flat footed with a big , big decline in our largest advertiser . You know , in the company . We're unexpected cancellations . And these were , you know , cancellations across the board .

Speaker #5: When I say across the board , across across the whole audio sector and and quite frankly , we weren't able to replace those ad dollars once we had committed that , that , that inventory .

Alfred C. Liggins III: Quite frankly, we weren't, you know, able to replace those ad dollars, once, you know, we had committed that inventory. We're able to get ahead of that. You know, we saw, you know, Reach Media and iOne Digital had contributed probably excuse me, had benefited the most from the rise in DEI advertising, and we just got way too concentrated at Reach Media with two particular advertisers. One of those actually stood out, you know, more than the other. We'll be more prepared, you know, for that going forward. This is also our first year navigating Reach without our former, you know, President of the audio division, David Kantor, who actually founded and created Reach.

Speaker #5: So we're able to get ahead of that . We saw rich media and I1 had contributed probably . Excuse me , had benefited the most from the rise in Di advertising .

Speaker #5: And we just got way too concentrated at Rich media with with two particular advertisers , one of those actually stood out more than the others .

Speaker #5: So we'll be more prepared for that going forward . This is also a first year navigating reach without our former president of the audio division , David Cantor , who actually founded and created Reach Now .

Alfred C. Liggins III: You know, trying to make that transition, was also, you know, was difficult even though we knew it was coming and we prepared for it. I think we're better positioned there. Also, there have been a number of things that we're doing in our radio markets, where we, you know, think that we will, you know, perform better. In particular from our DC, we just, you know, rearranged some of our formats there, and we launched a new format targeting the Hispanic, you know, community, which is, you know, has become, you know, a very, very large segment in the DC area. It's almost close to 20% of the marketplace. I mean, it's like 18.5% of the marketplace.

Speaker #5: So trying to make that transition was also , you know , was difficult , even though we knew it was coming and we prepared for it .

Speaker #5: And so I think we're better positioned there . Also , there have been a number of things that we're doing in our radio markets where we think that we will perform better , in particular in our D.C.

Speaker #5: we just rearranged some of our formats there , and we launched a new format targeting the Hispanic , you know , community , which is has become , you know , a very , very large segment in , in the D.C.

Speaker #5: area . It's almost close to 20% of the marketplace . And he's like 18.5% of the marketplace . And and we positioned ourselves , you know , recently as , as a major player there , which is going to broaden our offering in , in the D.C.

Alfred C. Liggins III: We positioned ourselves, you know, recently as a major player there, which is gonna broaden our offering in the DC market, in addition to some changes that we've made in terms of management and beefing up our sales staff, et cetera. You know, got a few other changes that we've made in some of the markets where, you know, we think it's gonna improve performance in a meaningful way as well. TV One's been holding in there, you know, this year. We think that, you know, given those things I just outlined, we're feeling good about a rebound in 2026.

Speaker #5: market , in addition to some changes that we've made in terms of management and beefing up our sales staff , etc. . And so , you know , we've got a few other changes that we've made and some of the the markets where we think it's going to improve performance in a meaningful way .

Speaker #5: As well . And in TV , one's been holding in there , you know , this year . And so we think that given those things , I just outlined , we're we're feeling good about a rebound in 2026 .

Speaker #7: Okay , okay . That's that's good to hear . And that's that's great color . Thank you . Next thing from me I guess this is this is kind of focused on post fourth quarter plans as well .

Ben Briggs: Okay. Okay. That's good to hear, and that's great color. Thank you. Next thing from me, and I guess this is, this is kind of focused on post-Q4 plans as well, but are you thinking of any kind of M&A activity or, you know, larger than usual? I know you guys swap radio stations here and there on a pretty regular basis, but are you thinking about anything more transformative for the future?

Speaker #7: But are you thinking of any kind of M&A activity or or you know , larger than usual kind of I know you guys swap radio stations here and there on a pretty regular basis .

Speaker #7: What are you thinking about ? Anything more transformative for the future ? I know every now and then things get kicked around . Yeah , I'm just curious if there's anything .

Alfred C. Liggins III: Um-

Ben Briggs: I know every now and then things get kicked around.

Alfred C. Liggins III: Yeah.

Ben Briggs: I'm just curious if there's anything else?

Speaker #5: Else . I think everybody in the industry is focused on Dereg and what's going to happen . You've seen a number of deals that have been filed already in the radio space , looking for waivers to exceed the current ownership caps .

Alfred C. Liggins III: I think everybody in the industry is focused on deregulation and what's gonna happen. You've seen a number of deals that have been filed already in the radio space looking for waivers to exceed the current ownership caps. The FCC has signaled, you know, that they think the ownership rules are antiquated. People in TV and in radio have submitted deals to be approved for waivers. There is also a notice for proposed rulemaking, you know, out that I know that the, you know, the industry's gonna comment on, if they haven't already, about deregulation. You know, I think everybody in the industry is gonna be, you know, pro-deregulation. When I say everybody, I'm sure it's not necessarily gonna be 100%.

Speaker #5: The FCC has signaled that they think the ownership rules are antiquated and people in TV and in radio have submitted deals to be approved for waivers .

Speaker #5: There is also a notice for proposed rulemaking out that I know that the the industry is going to comment on , if they haven't already , about Dereg .

Speaker #5: And , you know , there I think everybody in the industry is going to be , you know , pro drag when I say everybody , I'm sure it's not necessarily going to be 100% , but that's going to create some opportunities for people to align assets in markets in a much more efficient manner .

Alfred C. Liggins III: That's gonna create some opportunities for people to align assets in markets in a much more efficient manner. Yes, we're looking at that. There's nothing, you know, that is large and transformative that we're working on now, because this is all very new. We tend to try to think ahead and be intellectually creative in what the next move is. All along, you know, we've had conversations and thoughts and conversations with people about the art of the possible. 'Cause historically, you know, we haven't been up against the ownership caps, so we probably have had the ability, you know, to grow or do M&A that others haven't, even though in a deregulation environment, that will be enhanced.

Speaker #5: And and yes , we're looking at that . There's nothing , you know , that is large and transformative that we're working on now because this is all very new .

Speaker #5: But we tend to try to think ahead and be intellectually creative in what the next move is . And so all along , we've had conversations and thoughts and conversations with people about the art of the possible .

Speaker #5: Because historically , we haven't been up against the ownership cap . So we've probably had the ability to to , to grow or do M&A that , that , that others haven't .

Speaker #5: Even though in a dereg environment that will be enhanced . But what is the governor is leverage and is any transaction going to be delivering .

Alfred C. Liggins III: What, you know, is a governor is leverage, and is any transaction going to be de-levering, right? You know? Even when you look at these transactions, you gotta, you know, think about it against a backdrop. You know, just because you have deregulation doesn't, you know, solve necessarily your, your top line, you know, secular trajectory, right? You just gotta be careful, you know, about how you underwrite, you know, an M&A transaction. With that said, I do think it's gonna create some significant opportunities to build stability in these businesses. At the end of the day, these are the radio businesses, largely a local business. If you've got an opportunity to provide more different demographic targets to advertisers, local advertisers, I think that makes you a stronger player.

Speaker #5: Right . You know , and even when you look at these transactions , you got to think about it against a backdrop , you know , just just because you have dereg doesn't , you solve necessarily your , your top line , you know , secular trajectory .

Speaker #5: Right ? So you just got to be careful , you know , about how you underwrite , and M&A transaction . But with that said , I do think it's going to create some significant opportunities to build stability in these businesses .

Speaker #5: At the end of the day , these are the radio businesses , largely a local business . So if you've got an opportunity to provide more different demographic targets to advertisers , local advertisers , I think that makes you a stronger player .

Speaker #5: We've seen that in our Indianapolis market . Our Houston market , our Charlotte market , where we've spread out in different format demographics .

Alfred C. Liggins III: We've seen that in our Indianapolis market, our Houston market, our Charlotte market where we've spread out in different format demographics. You know, that's one of the things that we just did, like I articulated earlier in DC, that I think is gonna, you know, help significantly. You know, there's no M&A deal that we are currently working on that's transformative as we speak. I'm sure that we will explore opportunities to be able to rearrange the deck chairs in order to make us a stronger entity.

Speaker #5: And that's one of the things that we just did articulated earlier in DC that I think is going to help significantly . So there's no M&A deal that we are currently working on .

Speaker #5: That's transformative as we speak . But I'm sure that we will explore other opportunities to be able to to rearrange the deck chairs in order to to make us a stronger entity .

Speaker #7: Okay , okay . That's that's that's all very , very helpful . And then next thing I want to ask about is , I think at the top of a lot of investors minds is your , your debt buyback activity .

Ben Briggs: Okay. Okay. That's all very, very helpful. Then, next thing I wanna ask about is, I think at the top of a lot of investors' minds is your debt buyback activity. Obviously you stated in the press release this morning that you did a little bit of buybacks in Q3. Are you expecting to continue to execute on those?

Speaker #7: Obviously you stated in the press release this morning that you did a little bit of buybacks in the third quarter . Are you expecting to continue to execute on those debt buybacks and .

Alfred C. Liggins III: Yeah.

Ben Briggs: -debt buybacks and-

Speaker #5: Yeah , look , I . Figured we would get that question because of yeah , yeah . Because we've been more acquisitive in the past .

Alfred C. Liggins III: Yeah. Yeah. Look, I figured we would get that question. Yeah, yeah. We've been more acquisitive in the past, but because of this heat up, you know, in potential deregulation and stuff moving around, we decided, you know, to sit pat and build a little liquidity as we get to the end of the year, see how that all shapes up and figure out also how that is going to play out. You know, we are always and have been focused on, you know, de-levering and the best way to de-lever. You know, one way to de-lever is buy back debt at a discount.

Speaker #5: But because of this heat up , you know , in in potential drag and stuff moving around , we decided to to sit pat and , and build a little liquidity as we get to the end of the year .

Speaker #5: See how that all shapes up and figure out also how that is going to play out ? You know , we are always and have been focused on .

Speaker #5: Yeah , Delevering and the best way to to Delever . So we , you know , one way to delever is buy back debt at a discount .

Speaker #5: Another way to De-lever . Yeah . And we've done it a number of times , including in in Houston is through delivering M&A activity .

Alfred C. Liggins III: Another way to de-lever, yeah, and we've done it, you know, a number of times, including in Houston is through de-levering M&A activity. We've decided to keep our powder dry a little bit here to see what opportunities are going to present themselves in the near term.

Speaker #5: So we decided to keep our powder dry a little bit here to see what opportunities are going to present themselves in the near term .

Speaker #7: Okay . All right . That's that's extraordinarily helpful . Thank you guys for taking the questions . And and good luck on the fourth quarter .

Ben Briggs: Okay. All right. That's extraordinarily helpful. Thank you guys for taking the questions and good luck on the Q4 and going forward.

Speaker #7: And going forward .

Speaker #5: Thank you . Appreciate it Ben . Cool .

Alfred C. Liggins III: Thank you. Appreciate the time.

Speaker #4: And there are no further questions at this time . I'd like to hand the call back over to Alfred Liggins .

Operator: There are no further questions at this time. I'd like to hand the call back over to Alfred Liggins.

Alfred C. Liggins III: Thank you very much, operator. Again, as always, Peter and I are available for calls afterwards. You know, emails or calls, you know, directed to us. You know, thank you for your support and we'll talk to you next quarter.

Speaker #5: Thank you very much . Operator . And and again , as always , Peter and I are available for calls afterwards . Now , emails or calls directed to us .

Speaker #5: Thank you for your support and we'll talk to you next quarter .

Operator: This concludes today's call. You may now disconnect.