Q1 2026 Urban One Inc Earnings Call

May 14, 2026

Operator 2: Ladies and gentlemen, thank you for standing by, and welcome to the Urban One 2026 First Quarter 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 14 May 2026. 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 the Urban One 2026 Q1 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 14 May 2026. Please note that Urban One disclaims any duty to update any forward-looking statements made in the presentation.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: This call will present information as of May 14, 2026. Please note that URBAN ONE disclaims any duty to update any forward-looking statements made in the presentation.

Speaker #1: 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.

Operator 2: 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 the conference call will be available from 2:00 PM Eastern Daylight Time, 14 May 2026, until 11:59 PM Eastern Daylight Time, 21 May 2026. Callers may access the replay by calling 1-800-770-2030. International callers may dial direct, 1-609-800-9909. The replay access code is 3438559. Access to live audio and a replay of the conference will also be available on Urban One's corporate website at www.urbanone.com. The replay will be made available on the website for 7 days after the call.

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 the conference call will be available from 2:00 PM Eastern Daylight Time, 14 May 2026, until 11:59 PM Eastern Daylight Time, 21 May 2026. Callers may access the replay by calling 1-800-770-2030. International callers may dial direct, 1-609-800-9909.

Speaker #1: A replay of the conference call will be available from 2 o'clock PM Eastern Daylight Time May 14, 2026, until 11:59 PM Eastern Daylight Time May 21, 2026.

Speaker #1: Callers may access the replay by calling 1-800-770-2030. International callers may dial direct 1-609-800-9909. The replay access code is 3438559. Access to live audio and to replay of the conference will also be available on URBAN ONE's corporate website, at www.urbanone.com.

Operator: The replay access code is 3438559. Access to live audio and a replay of the conference will also be available on Urban One's corporate website at www.urbanone.com. The replay will be made available on the website for 7 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 #1: The replay will be made available on the website for 7 days after the call. No other recordings or copies of this call are authorized or may be relied upon.

Operator 2: 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 #1: 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 #2: Thank you very much, Operator. And welcome to our first quarter results conference call. Also joining Peter and I are Jody Drewer, the Chief Financial Officer, at TV1, and Chris Simpson, who is our General Counsel.

Alfred C. Liggins III: Thank you very much, operator, welcome to our First Quarter Results Conference Call. Also joining Peter and I are Joe D'Giorno, the Chief Financial Officer at TV One, C. Kristopher Simpson, who is our General Counsel. Press release came out this morning. I think that, you know, we had, you know, warned, inferred, you know, other people have also, you know, reported already. You know, first quarter was very tough quarter. We were budgeted to be down, things, the marketplace was softer than anticipated due to continued declines in the traditional ad marketplace. Peter will give you more specifics and details on the numbers in a moment.

Alfred Liggins: Thank you very much, operator, welcome to our First Quarter Results Conference Call. Also joining Peter and I are Joe D'Giorno, the Chief Financial Officer at TV One, C. Kristopher Simpson, who is our General Counsel. Press release came out this morning. I think that, you know, we had, you know, warned, inferred, you know, other people have also, you know, reported already. You know, first quarter was very tough quarter. We were budgeted to be down, things, the marketplace was softer than anticipated due to continued declines in the traditional ad marketplace. Peter will give you more specifics and details on the numbers in a moment.

Speaker #2: Press release came out this morning. I think that we had warned and heard other people have also reported already, but first quarter was very tough quarter.

Speaker #2: We were budgeted to be down, but things—the marketplace—was softer than anticipated due to continued declines in the traditional ad marketplace. Peter, I'll give you more specifics and details on the numbers in a moment.

Speaker #2: But with the slow start to the year, we've been focused on balance sheet management and debt reduction and de-leveraging opportunities. Since the beginning of the year, we spent approximately $25 million to reduce our debt balance by another $60 million or so approximately, just to over $300 million of gross debt.

Alfred C. Liggins III: With the slow start to the year, we've been focused on balance sheet management and debt reduction and de-leveraging opportunities. Since the beginning of the year, we spent approximately $25 million to reduce our debt balance by another $60 million or so approximately, just to over $300 million of gross debt. We've also announced some de-levering and accretive M&A with the acquisition of Service Broadcasting in Dallas, Texas, two radio stations there in the marketplace for an in-market consolidation opportunity for an announced purchase price of just about $22 million. Net of dispositions of one station in Dallas and two stations in Charlotte, we will spend approximately. By the way, those dispositions don't contribute any cash flow currently.

Alfred Liggins: With the slow start to the year, we've been focused on balance sheet management and debt reduction and de-leveraging opportunities. Since the beginning of the year, we spent approximately $25 million to reduce our debt balance by another $60 million or so approximately, just to over $300 million of gross debt. We've also announced some de-levering and accretive M&A with the acquisition of Service Broadcasting in Dallas, Texas, two radio stations there in the marketplace for an in-market consolidation opportunity for an announced purchase price of just about $22 million. Net of dispositions of one station in Dallas and two stations in Charlotte, we will spend approximately. By the way, those dispositions don't contribute any cash flow currently.

Speaker #2: We've also announced some de-leveraging and accretive M&A with the acquisition of Service Broadcasting in Dallas' Dallas, Texas, two radio stations there. And the marketplace for an in-market consolidation opportunity for an announced purchase price of just about $22 million but net of dispositions of one station in Dallas, and two stations in Charlotte, we will spend approximately and by the way, those dispositions don't contribute any cash flow currently.

Alfred C. Liggins III: We'll invest approximately $11 million and pick up about $5 million in pro forma EBITDA. With that, you know, we are also giving out. As I said in the last conference call, we're gonna wait till after we got through Q1 to look at what, you know, we wanted to do about updating guidance for 2026. With that, we're actually updating the 2026 guide to approximately $60 million of EBITDA, and we expect year-end leverage to be below 5x by year-end with these acquisitions and dispositions. Another bright spot in this. With these numbers, we'll generate about $40 million of free cash flow this year. Peter is gonna have more details on that in his comments.

Speaker #2: We'll invest approximately $11 million and pick up about $5 million in pro forma EBITDA. And with that, we are also giving out a new, as I said in the last conference call, we're going to wait till after we got through first quarter to look at what we wanted to do about updating guidance for 2026.

Alfred Liggins: We'll invest approximately $11 million and pick up about $5 million in pro forma EBITDA. With that, you know, we are also giving out. As I said in the last conference call, we're gonna wait till after we got through Q1 to look at what, you know, we wanted to do about updating guidance for 2026. With that, we're actually updating the 2026 guide to approximately $60 million of EBITDA, and we expect year-end leverage to be below 5x by year-end with these acquisitions and dispositions. Another bright spot in this. With these numbers, we'll generate about $40 million of free cash flow this year. Peter is gonna have more details on that in his comments. I'm gonna let Peter, you know, go into the details, and then we can, you know, open it up for Q&A and answer any more detailed questions about the business.

Speaker #2: So with that, we're actually updating the 2026 guide to approximately $60 million of EBITDA. And we expect year-end leverage to be below five times by year-end with these acquisitions and dispositions.

Speaker #2: Another bright spot on this is with these numbers, we'll generate about $40 million of free cash flow this year. Peter, is going to have more details on that in his comments.

Alfred C. Liggins III: I'm gonna let Peter, you know, go into the details, and then we can, you know, open it up for Q&A and answer any more detailed questions about the business.

Speaker #2: So I'm going to let Peter go into the details and then we can open it up for Q&A and answer any more detailed questions about the business.

Speaker #3: Thank you, Alfred. So consolidating that revenue for the quarter was approximately $77.7 million down by 15.8% year over year. Net revenue for the broad radio broadcasting segment was 30.5 million dollars, which was a decrease of 6.4% year over year.

Peter Thompson: Thank you, Alfred. Consolidated net revenue for the quarter was approximately $77.7 million, down by 15.8% year over year. Net revenue for the radio broadcasting segment was $30.5 million, which was a decrease of 6.4% year over year. Excluding political revenue, net revenue for radio was down 8.7% year over year. According to Miller Kaplan, our local ad sales were down 5.5% against a market that was down 7.1%, and national ad sales were down 8.2% against a market that was down 6.7%.

Speaker #3: Excluding political revenue, then net revenue for radio was down 8.7% year over year. And according to Miller Kaplan, our local ad sales were down 5.5% against a market that was down 7.1%.

Speaker #3: And national ad sales were down 8.2% against a market that was down 6.7%. Our largest ad category was services, which was up 14.5%, primarily due to legal services.

Peter Thompson: Our largest ad category was services, which was up 14.5%, primarily due to legal services. The government and public category was up 23.6% due to political spending. All the other major categories were down. Net revenue for the Reach Media segment was $4.9 million, down 17% from the prior year. Adjusted EBITDA was a loss of half a million for the quarter. This decrease was primarily driven by a decrease in the network marketplace revenue and key client attrition. Net revenues for the Digital segment were down 33.5% in Q1 at $6.8 million.

Speaker #3: And the government and public category was up 23.6% due to political spending. But all of the other major categories were down. Net revenue for the reach media segment was 4.9 million dollars, down 17% from the prior year.

Speaker #3: And adjusted EBITDA was a loss of half a million for the quarter. This decrease was primarily driven by a decrease in network marketplace revenue and key client attrition.

Speaker #3: Net revenues for the digital segment were down 33.5% in first quarter at 6.8 million dollars. Decrease was driven by the decrease in national direct revenue streams as a result of a reduction of DEI-focused spending.

Peter Thompson: Decrease was driven by the decrease in national direct revenue streams as a result of a reduction of DEI-focused spending, ad budgets being pushed to Q2 and H2, and a general pullback in advertiser spending due to macroeconomic concerns. Local digital revenue was up 10.9% for the quarter as we continue to focus on expanding and improving our local digital sales. We recognized approximately $36 million of revenue from our cable television segment during the quarter, decrease of 18.5%. Cable television advertising revenue was down 24.9%. Prime delivery declined 24% year-over-year for persons 25-54. The integration of Nielsen dash data gave a boost to linear inventory.

Speaker #3: Ad budgets being pushed to second quarter and second half, and a general pullback in advertiser spending due to macroeconomic concerns. Local digital revenue was up 10.9% for the quarter as we continue to focus on expanding and improving our local digital sales.

Speaker #3: We recognized approximately $36 million of revenue from our cable television segment during the quarter, a decrease of 18.5%. Cable television advertising revenue was down 24.9%.

Speaker #3: Prime delivery declined 24% year over year for persons 25, 54. The integration of Nielsen dash data gave a boost to linear inventory. And this, along with a weak scatter market, led to more commercial units being allocated to direct response which has a lower average unit rate.

Peter Thompson: This, along with a weak scatter market, led to more commercial units being allocated to direct response, which has a lower average unit rate. Cable television affiliate revenue was down by 9.8%, driven by a decrease in subscribers as linear cable continues to decline when that was partially offset by an increase in subscriber rates. Cable subscribers for TV One, as measured by Nielsen, finished Q1 at $29.1 million compared to $30.2 million at the end of Q4. Decline is a result of the combination of churn and a conversion of virtual MVPDs that has been sold as connected television and therefore pulled out of the Nielsen numbers. CLEO TV had $28.6 million Nielsen subscribers.

Speaker #3: Cable television affiliate revenue was down by 9.8%, driven by a decrease in subscribers. As linear cable continues to decline, when that was partially offset by an increase in subscriber rates.

Speaker #3: Cable subscribers for TV1 as measured by Nielsen finished the first quarter at 29.1 million, compared to 30.2 million at the end of Q4. Decline is a result of the combination of churn and a conversion of virtual MVPDs that has been sold as connected television and therefore pulled out of the Nielsen numbers.

Speaker #3: Clio TV had 28.6 million Nielsen subscribers. Operating expenses, excluding depreciation and amortization, stock-based compensation, and impairment of goodwill and intangible assets, was approximately 73.5 million dollars.

Peter Thompson: Operating expenses excluding depreciation and amortization, stock-based compensation, and impairment of goodwill and intangible assets was approximately $73.5 million, compared to approximately $80.7 million for the comparable period of 2025. Decrease was mainly driven by sales and marketing expense decreases in the operating segments. Radio expenses were down 3.8% or $1.1 million, driven primarily by lower costs associated with revenue, lower facility and rental costs, lower national rep fees, and lower bank charges. Reach operating expenses were down by 16.2% or $1.1 million, primarily due to lower bad debt reserve, lower bank charges, and lower revenue-related expenses. Operating expenses in the digital segment were down 19.7%, driven by a decrease in traffic acquisition costs, commissions, headcount-related savings, and third-party ad serving costs.

Speaker #3: Compared to approximately 80.7 million dollars for the comparable period of 2025. Decrease was mainly driven by sales and marketing expense decreases in the operating segments.

Speaker #3: Radio expenses were down 3.8% or 1.1 million dollars. Driven primarily by lower costs associated with revenue, lower facility and rental costs, lower national rep fees, and lower bank charges.

Speaker #3: Reach operating expenses were down by 16.2% or 1.1 million. Primarily due to lower bad debt reserve, lower bank charges, and lower revenue-related expenses. Operating expenses in the digital segment were down 19.7%, driven by decrease in traffic acquisition costs, commissions, headcount-related savings, and third-party ad serving costs.

Speaker #3: Operating expenses in cable television segment were down 9.8%, driven by lower marketing expense, lower programming content amortization, and research costs. Operating expenses at corporate were down approximately 6.1%, driven by lower professional service fees and payroll-related costs.

Peter Thompson: Operating expenses in cable television segment were down 9.8%, which was driven by lower marketing expense, lower programming content amortization, and research costs. Operating expenses at corporate were down approximately 6.1%, driven by lower professional service fees and payroll-related costs. Consolidated adjusted EBITDA was $4.7 million for Q1, down 63.8%. Consolidated broadcast and digital operating income was approximately $14.9 million, a decrease of 35.4%. Interest expense was down to approximately $4.4 million, down from $10.9 million last year. Company made cash interest payments of approximately $700,000 in the quarter on the outstanding 2028 notes.

Speaker #3: Consolidated adjusted EBITDA was 4.7 million dollars for the first quarter, down 63.8%. Consolidated broadcast and digital operating income was approximately 14.9 million, a decrease of 35.4%.

Speaker #3: Interest expense was down to approximately 4.4 million dollars, down from 10.9 million. Last year, company-made cash interest payments of approximately 700,000 dollars in the quarter on the outstanding 2028 notes.

Speaker #3: Semi-annual cash interest payments for the 2030 and 2031 notes were made on April 1st, for 102 days of accrued interest from the transaction day of December 18th, 2025.

Peter Thompson: Semiannual cash interest payments for the 2030 and 2031 notes were made on 1 April for 102 days of accrued interest from the transaction day of 18 December 2025, and the next payment on those notes is now due 1 October for the full 180 days of accrued interest. During Q1, the company repurchased $4.3 million of its 2028 notes at an average price of 51% of par for a $2.1 million gain and approximately $32.4 million of its 2031 second lien notes at a weighted average price of approximately 40.7% of par.

Speaker #3: And the next payment on those notes is now due October 1st, for the full 180 days of accrued interest. During the first quarter, the company repurchased 43 million dollars of its sorry, 4.3 million dollars of its 2028 notes at an average price of 51% of par for a 2.1 million dollar gain.

Speaker #3: And approximately 32.4 million of its 2031 secondly notes at a weighted average price of approximately 40.7% of par. The discounted debt repurchases in the first quarter reduced the outstanding long-term debt balance to 326.7 million dollars as of March 31st, 2026.

Peter Thompson: The discounted debt repurchases in Q1 reduced the outstanding long-term debt balance to $326.7 million as of 31 March 2026. Company repurchased an additional $23.5 million of its 2031 notes in Q2 at 42% of par. As Alfred said, year to date, there's a total reduction in long-term debt of $60.2 million, which will give us an annual interest saving of $4.6 million. Under the troubled debt restructuring accounting, the long-term debt on the balance sheet includes a premium which amortizes over the remaining term. On the ABL, we drew $10 million in Q4 and repaid that in Q1.

Speaker #3: Company repurchased an additional 23.5 million dollars of its 2031 notes in Q2 at 42% of par. And so as Alfred said year to date, as total reduction in long-term debt of 60.2 million dollars.

Speaker #3: Which will give us an annual interest saving of 4.6 million dollars. Under the troubled debt restructure and accounting, the long-term debt on the balance sheet includes a premium which amortizes over the remaining term.

Speaker #3: And on the ABL, we drew 10 million dollars in fourth quarter and repaid that in the first quarter. And then on March 31st, we drew another 10 million dollars with a six-month maturity which was outstanding as of March 31st, 2026.

Peter Thompson: On March 31st, we drew another $10 million with a 6-month maturity, which was outstanding as of 31 March 2026. We drew a further $10 million in Q2 2026 to help us do the long-term debt repurchase. So we have a current outstanding balance today of $20 million on the ABL, and we have incremental borrowing capacity of approximately $22 million today. No impairment losses were recognized for the 3 months ending 31 March 2026. We recorded amortization expense of approximately $6.2 million, including $5.6 million for the radio broadcast license and TV One trade name for the 3 months ending 31 March 2026. Benefit from income taxes was approximately $1.4 million for Q1.

Speaker #3: We drew a further 10 million dollars in the second quarter of 2026 to help us do the long-term debt repurchase. And so we have a current outstanding balance today of 20 million dollars on the ABL.

Speaker #3: And we have incremental borrowing capacity of approximately $22 million today. No impairment losses were recognized for the three months ended March 31, 2026.

Speaker #3: We recorded amortization expense of approximately 6.2 million dollars, including 5.6 million dollars for the radio broadcast license and TV1 trade name for the three months ended March 31st, 2026.

Speaker #3: Benefit from income taxes was approximately 1.4 million dollars for the first quarter. Company paid cash income taxes net of refunds in the amount of approximately 0.1 million dollars.

Peter Thompson: Company paid cash income taxes net of refunds in the amount of approximately $0.1 million. Capital expenditures were approximately $3.4 million in the quarter, which included the Indianapolis studio refurbishment, which is why that's higher than you would normally expect to see. That will normalize over time. Net loss was approximately $3.1 million or $0.69 a share, compared to a net loss of $11.7 million or $2.64 per share for Q1 2025. During the 3 months, the company did not repurchase any shares of Class A common stock, we executed stock vest tax repurchases of 2,187 shares of Class D common stock at a price of $5.73 per share.

Speaker #3: Capital expenditures were approximately 3.4 million dollars in the quarter. Which included the Indianapolis Studio refurbishment, which is why that's higher than you would normally expect to see.

Speaker #3: So that will normalize over time. Net loss was approximately $3.1 million, or $0.69 a share, compared to a net loss of $11.7 million.

Speaker #3: Or $2.64 per share for the first quarter of 2025. During the three months, the company did not repurchase any shares of Class A common stock.

Speaker #3: And we executed stock vest tax repurchases of 2,187 shares of Class D common stock at a price of $5.73 per share. As we previously announced in March, company agreed to sell its WMXG and also WLNK radio broadcast licenses in Charlotte, North third parties for approximately 0.7 million and 4.2 million dollars respectively.

Peter Thompson: As we previously announced, in March, company agreed to sell its WMXG and also WLNK radio broadcast licenses in Charlotte, North Carolina, to unrelated third parties for approximately $0.7 million and $4.2 million, respectively. We anticipate to close on the sale by the end of Q2. In April, company entered into an agreement to acquire Service Broadcasting Group in Dallas, Texas, including radio stations KKDA and KRNB for $22 million. At the same time, we also entered into an agreement to sell radio station KZMJ to Fuzion Dallas for $6 million. Pending FCC approval, the Dallas transactions are expected to close in Q3.

Speaker #3: We anticipate close on the sale by the end of Q2. In April, company entered into an agreement to acquire service broadcasting group in Dallas, Texas.

Speaker #3: Including radio stations KKDA and KRMB for 22 million dollars. At the same time, we also entered into an agreement to sell radio station KZMJ to Fusion Dallas for 6 million dollars.

Speaker #3: Pending FCC approval, the Dallas transactions are expected to close in Q3. So the net of all of that, radio M&A is roughly 11 million dollars of outflow.

Peter Thompson: The net of all of that radio M&A is roughly $11 million of outflow, and on a pro forma basis, we think the incremental cash flows from that will be around about $5 million. As of 31 March 2026, the current contractually outstanding debt balance was approximately $336 million, and the ending unrestricted cash balance was $27.2 million, resulting in net debt of approximately $309.5 million compared to $48.5 million of LTM reported adjusted EBITDA for a total net leverage ratio of 6.39 times. Cash flow from operations is expected to be around $40 million for the year, we do anticipate repaying the $20 million ABL balance in H2 of the year.

Speaker #3: And on a pro forma basis, we think the incremental cash flows from that will be around about 5 million dollars. As of March 31st, 2026, the current contractually outstanding debt balance was approximately 336 million dollars.

Speaker #3: And the ending unrestricted cash balance was $27.2 million, resulting in net debt of approximately $309.5 million. Compared to $48.5 million of LTM reported adjusted EBITDA, this results in a total net leverage ratio of 6.39 times.

Speaker #3: Cash flow from operations is expected to be around 40 million dollars for the year. And we do anticipate repaying the 20 million dollar ABL balance in the second half of the year.

Peter Thompson: Based on the guidance that we gave, we anticipate net leverage being below 5 times at year-end. With that, I'll hand it back to Alfred.

Speaker #3: And based on the guidance that we gave, we anticipate net leverage being below five times at year-end. And with that, I'll hand it back to you.

Alfred C. Liggins III: Thanks, Peter. Operator, could you please open up the lines for questions?

Alfred Liggins: Thanks, Peter. Operator, could you please open up the lines for questions?

Speaker #3: Thanks, Peter. Operator, could you please open up the lines for questions?

Speaker #1: We will now begin the question and answer session. To ask a question, press star, then the number one on your telephone keypad. Again, for a question, simply press star followed by the number one on your telephone keypad.

Operator 2: We will now begin the question-and-answer session. To ask a question, press star, then the 1 on your telephone keypad. Again, for questions, simply press star followed by the 1 on your telephone keypad. Our first question will come from the line of Ben Briggs with StoneX Financial. Please go ahead.

Operator: We will now begin the question-and-answer session. To ask a question, press star, then the 1 on your telephone keypad. Again, for questions, simply press star followed by the 1 on your telephone keypad. Our first question will come from the line of Ben Briggs with StoneX Financial. Please go ahead.

Speaker #1: Our first question will come from the line of Ben Briggs with Stonex Financial. Please go ahead.

Ben Briggs: Hey, good morning, guys, and thank you for taking the call and taking the questions. I wanted to touch on one thing here. First of all, congratulations on the acquisitions that you made this quarter. I know, kinda moving some chips around the board is an important strategy for you guys. Can you give us some clarity on the thought process behind these? Is it more attractive formats, that you think are gonna make the difference, or is it better geographies or combination of both? Any clarity there would be great.

Speaker #3: Hey, good morning, guys. And thank you for taking the call and taking the questions. So I wanted to touch on one thing here. So first of all, congratulations on the acquisitions that you made this quarter.

Speaker #3: I know kind of moving some of the chips around the board is an important strategy for you guys. Can you give us some clarity on the thought process behind these?

Speaker #3: Is it more attractive formats that you think are going to make the difference? Or is it better geographies? Or combination of both? Any clarity there would be great.

Alfred C. Liggins III: They aren't different formats. They're similar formats in the marketplace. We're really looking to expand our reach and our service of the African American community in Dallas, Texas. I think it's gonna help us all the way around, in terms of serving local advertisers. The economics of putting those clusters together and also selling off our one station are gonna create a much larger cluster that has more revenue scale. And with those economies of scale, you're producing significantly more EBITDA. It makes a lot of sense. It's an acquisition that I've been trying to do for almost thirty years.

Speaker #4: They aren't different formats. They're similar formats. In the marketplace. So we're really looking to expand our reach and our service of the African American community in Dallas, Texas.

Alfred Liggins: They aren't different formats. They're similar formats in the marketplace. We're really looking to expand our reach and our service of the African American community in Dallas, Texas. I think it's gonna help us all the way around, in terms of serving local advertisers. The economics of putting those clusters together and also selling off our one station are gonna create a much larger cluster that has more revenue scale. And with those economies of scale, you're producing significantly more EBITDA. It makes a lot of sense. It's an acquisition that I've been trying to do for almost thirty years.

Speaker #4: So I think it's going to help us all the way around in terms of serving local advertisers. It's the economics of putting those clusters together and also selling off our one station are going to create a much larger cluster that has more revenue scale.

Speaker #4: And with those economies of scale, you're producing significantly more EBITDA. So it makes a lot of sense. It's an acquisition that we've been I've been trying to do for almost 30 years.

Alfred C. Liggins III: You know, you know, I think we, you know, actually, so we went public in May 1999. That's when we bought our first Dallas station and, you know, been trying to make a deal with the owner operator, you know, there, Mr. Hymen Childs, who's a wonderful broadcaster and has been, you know, in this business for, you know, a long time. You know, we were, you know, we've always stayed in touch, you know, and we finally were able to do something. What really helps it is, again, the disposition of the 1 station that we have, which, you know, I think does maybe a couple million dollars of revenue, you know, but really no cash flow contribution.

Alfred Liggins: You know, you know, I think we, you know, actually, so we went public in May 1999. That's when we bought our first Dallas station and, you know, been trying to make a deal with the owner operator, you know, there, Mr. Hymen Childs, who's a wonderful broadcaster and has been, you know, in this business for, you know, a long time. You know, we were, you know, we've always stayed in touch, you know, and we finally were able to do something. What really helps it is, again, the disposition of the 1 station that we have, which, you know, I think does maybe a couple million dollars of revenue, you know, but really no cash flow contribution.

Speaker #4: I think we actually just so we went public in May of '99. That's when we bought our first established station. And I've been trying to make a deal with the owner-operator.

Speaker #4: They're Mr. Hyman Childs, who's a wonderful broadcaster and has been in this business for a long time. And we were we will always stay in touch.

Speaker #4: And we finally were able to do something. What really helps it is, again, the disposition of the one station that we have that's I think does maybe a couple million dollars of revenue.

Speaker #4: But we're really no cash flow contribution. Those two stations in Charlotte that we're selling will probably do just about $1 million of revenue this year.

Alfred C. Liggins III: You know, those two stations in Charlotte that we're selling, you know, will probably do just about $1 million of revenue this year and also contribute no cash flow. The two stations in Charlotte became saleable because we moved our news talk format off of WBT-AM, and we put it on what was WLNK-FM, which is a full market signal there. Because these spoken word formats have to move to the FM band, we finally, you know, did that. Then, you know, we moved the adult contemporary format to, you know, these stations, which, you know, one's a Class A in Charlotte, the other one is a C3 that's just, you know, south of Charlotte.

Alfred Liggins: You know, those two stations in Charlotte that we're selling, you know, will probably do just about $1 million of revenue this year and also contribute no cash flow. The two stations in Charlotte became saleable because we moved our news talk format off of WBT-AM, and we put it on what was WLNK-FM, which is a full market signal there. Because these spoken word formats have to move to the FM band, we finally, you know, did that. Then, you know, we moved the adult contemporary format to, you know, these stations, which, you know, one's a Class A in Charlotte, the other one is a C3 that's just, you know, south of Charlotte.

Speaker #4: And also contribute no cash flow. The two stations in Charlotte became saleable because we moved our news talk format off of WBTAM. And we put it on W what was WLNKFM, which is a full market signal there.

Speaker #4: Because these spoken word formats have to move to the FM band. So we finally did that. And then we moved the adult contemporary format to these stations which one's a class A in Charlotte.

Speaker #4: The other one is a C3 that's just a south of Charlotte. And so we're really positioning that Charlotte cluster for the future. But there was no cash flow associated with it.

Alfred C. Liggins III: You know, we're really positioning that Charlotte cluster, you know, for the future, but there was no cash flow associated with it. It also actually frees up, you know, the land associated with the tower sites for WBT-AM and also for our old WFMZ-AM, which we also moved to the FM band. Something I didn't talk about is that we've got significant value in those land assets in Charlotte, and there is a process going on as we speak to monetize those parcels, you know? All in the vein of how do we, you know, look for accretive and de-levering M&A, right? You gotta get it at the right price. It's gotta be an operational fit such that one plus one equals three in terms of profitability.

Alfred Liggins: You know, we're really positioning that Charlotte cluster, you know, for the future, but there was no cash flow associated with it. It also actually frees up, you know, the land associated with the tower sites for WBT-AM and also for our old WFMZ-AM, which we also moved to the FM band. Something I didn't talk about is that we've got significant value in those land assets in Charlotte, and there is a process going on as we speak to monetize those parcels, you know?

Speaker #4: It also actually frees up the land associated with the tower sites for WBTAM and also for our old WFNZAM, which we also moved to the FM band.

Speaker #4: So something I didn't talk about is that we've got significant value in those land assets in Charlotte. And there is a process going on as we speak.

Speaker #4: To monetize those parcels. So all in the vein of how do we look for accretive and de-levering M&A. So you got to get it at the right price.

Alfred Liggins: All in the vein of how do we, you know, look for accretive and de-levering M&A, right? You gotta get it at the right price. It's gotta be an operational fit such that one plus one equals three in terms of profitability. You know, we think what we did in, you know, Dallas and what we're doing in Charlotte is, you know, gonna be significant plays in our effort to continue to de-lever.

Speaker #4: It's got to be an operational fit such that one plus one equals three. In terms of profit of in terms of profitability. And so we think what we did in Dallas and what we're doing in Charlotte is our significant going to be significant plays in our effort to continue to de-lever.

Alfred C. Liggins III: You know, we think what we did in, you know, Dallas and what we're doing in Charlotte is, you know, gonna be significant plays in our effort to continue to de-lever.

Speaker #3: Okay. That's great color. And I appreciate the I appreciate the information. About the land that some AM towers are on. That frees up. Can you give any more clarity on the monetization process?

Ben Briggs: Okay. That's, that's great color. I appreciate the information about the land, that some AM towers are on that frees up. Can you give any more clarity on the monetization process? Are you gonna lease? Are you gonna sell? Are you not sure yet?

Speaker #3: Is it going to be are you going to lease? Are you going to sell? Are you not sure yet?

Speaker #4: Wait, wait. Yeah. We're the land is listed with JLL right now. And there's a process going on. To bring in offers and to evaluate and to eventually just sell it.

Alfred C. Liggins III: We, yeah, we're, you know, the land is listed with JLL right now, and there's a process going on, you know, to bring in offers and to evaluate and to, you know, eventually just sell it. Yeah.

Alfred Liggins: We, yeah, we're, you know, the land is listed with JLL right now, and there's a process going on, you know, to bring in offers and to evaluate and to, you know, eventually just sell it. Yeah.

Speaker #4: Yeah.

Speaker #3: Okay. Great. That's very helpful color. I appreciate it. Thank you, guys.

Ben Briggs: Okay, great. That's very helpful color. I appreciate it. Thank you, guys.

Speaker #4: Thank you.

Alfred C. Liggins III: Thank you.

Alfred Liggins: Thank you.

Speaker #1: Again, for questions, press star one. And our next question will come from the line of Dennis Panula with LaPan Partners. Please go ahead.

Operator 2: Again, for questions, press star 1. Our next question will come from the line of Dennis Ponula with Lupan Partners. Please go ahead.

Operator: Again, for questions, press star 1. Our next question will come from the line of Dennis Ponula with Lupan Partners. Please go ahead.

Speaker #5: Hi. Good morning, guys. And thanks for taking my questions.

Dennis Ponula: Hi. Good morning, guys. Thanks for taking my questions.

[Analyst] (Lupin Partners): Hi. Good morning, guys. Thanks for taking my questions.

Speaker #6: Hey, Dennis.

Alfred C. Liggins III: Hey, Dennis.

Alfred Liggins: Hey, Dennis.

Dennis Ponula: Hey, I know the first quarter, you know, seasonality is the weakest quarter of the year, but man, to see TV down double digits. Did I hear Mr. Thompson right? Did you say digital, your digital broadcasting was up?

Speaker #5: Hey. I know the first quarter seasonality is the weakest quarter of the year. But man, to see TV down double digits and did I hear Mr. Thompson right?

[Analyst] (Lupin Partners): Hey, I know the first quarter, you know, seasonality is the weakest quarter of the year, but man, to see TV down double digits. Did I hear Mr. Thompson right? Did you say digital, your digital broadcasting was up?

Speaker #5: Did you say digital your digital broadcasting was up?

Speaker #6: Q2.

Alfred C. Liggins III: Q2.

Alfred Liggins: Q2.

Speaker #4: Q2. Yeah. So I'm sorry. Yeah. So no. So look. So SuperSoft Q1. But a bunch of campaigns got pushed into Q2. And about half.

Joe D'Giorno: Q2.

Peter Thompson: Q2.

Dennis Ponula: Oh, Q2. I'm sorry.

[Analyst] (Lupin Partners): Oh, Q2. I'm sorry.

Joe D'Giorno: Yeah.

Peter Thompson: Yeah.

Dennis Ponula: Gotcha.

[Analyst] (Lupin Partners): Gotcha.

Joe D'Giorno: No. Super soft Q1, but a bunch of campaigns got pushed into Q2 in the back half. Q2 and digital is actually up.

Peter Thompson: No. Super soft Q1, but a bunch of campaigns got pushed into Q2 in the back half. Q2 and digital is actually up.

Speaker #4: So Q2 and digital is actually up. So yeah.

Speaker #5: Yeah. Because digital.

Dennis Ponula: Yeah, because.

[Analyst] (Lupin Partners): Yeah, because.

Joe D'Giorno: Of all of the divisions, I think the digital folks are optimistic and confident about, you know, making their numbers for the year, right? A weak Q1, but a stronger Q2.

Speaker #4: Of all of the yeah. Sorry. Of all of the divisions, I think the digital folks are optimistic and confident about making their numbers for the year.

Peter Thompson: Of all of the divisions, I think the digital folks are optimistic and confident about, you know, making their numbers for the year, right? A weak Q1, but a stronger Q2.

Speaker #4: Right? So a weak Q2. But a weak Q1. But a stronger Q2.

Speaker #5: Yeah. Because a lot of your peers are transitioning to digital. And digital sales have been pretty strong. So I'm sure that we're probably trying to head in that same direction, I would imagine.

Dennis Ponula: Yeah, because a lot of your peers are transitioning to digital, and digital sales have been pretty strong. I'm sure that we're probably trying to head in that same direction, I would imagine. Margins are better, you know.

[Analyst] (Lupin Partners): Yeah, because a lot of your peers are transitioning to digital, and digital sales have been pretty strong. I'm sure that we're probably trying to head in that same direction, I would imagine. Margins are better, you know. Sales numbers are better off.

Speaker #5: Margins are better. Sales numbers are better. I'm trying to grow that division.

Joe D'Giorno: Sales numbers are better off.

Alfred C. Liggins III: The.

Alfred Liggins: The.

Joe D'Giorno: For that division?

[Analyst] (Lupin Partners): For that division?

Speaker #4: Yeah. The margin well, the division has grown from I mean, we created interactive one. And for a long time, it was a breakeven division.

Alfred C. Liggins III: Well, the division, you know, has grown from I mean, we created iOne Digital, and for a long time it was a break-even division, you know. I think revenue went from like low 30s to, you know, almost 75 after sort of the George Floyd DEI, and it was wildly profitable. When I say wildly, went up to, you know, call it $20 million. You know, now there's pressure on digital publishers, of which they are, you know. You know, you can see, you know, BuzzFeed had its challenge, et cetera. Even with all of that, advertisers are moving, you know, more towards digital. It will still be, you know, not a $20 million dollar profitable division, but probably $6 million, of course.

Alfred Liggins: Well, the division, you know, has grown from I mean, we created iOne Digital, and for a long time it was a break-even division, you know. I think revenue went from like low 30s to, you know, almost 75 after sort of the George Floyd DEI, and it was wildly profitable. When I say wildly, went up to, you know, call it $20 million. You know, now there's pressure on digital publishers, of which they are, you know. You know, you can see, you know, BuzzFeed had its challenge, et cetera. Even with all of that, advertisers are moving, you know, more towards digital. It will still be, you know, not a $20 million dollar profitable division, but probably $6 million, of course.

Speaker #4: And then I think revenue went from, like, low 30s to 75—Floyd, DEI—and it was wildly profitable. When I say wildly, it went up to, call it, $20 million bucks.

Speaker #4: Now there's pressure on digital publishers of which they are. You can see BuzzFeed had its challenge, etc. But even with all of that, advertisers are moving more towards digital.

Speaker #4: So it will still be not a 20 million dollar profitable division. But probably 6. Of course. But a misnomer that you just mentioned is that the margins aren't better.

Alfred C. Liggins III: A misnomer that you just, you know, mentioned is that the margins aren't better, you know, in digital. The margins are actually, you know, worse, particularly on local digital, because a lot of the campaigns that you sell, you know, require you to, A, do specialized individual custom content, and B, oftentimes you need impressions that are not owned and operated impressions to build scale, and those impressions are very expensive to buy. You have TAC, you know, which is traffic acquisition cost. You know, the radio business, local radio, you know, has been moving, you know, in that direction. You know, it is a lower margin business.

Alfred Liggins: A misnomer that you just, you know, mentioned is that the margins aren't better, you know, in digital. The margins are actually, you know, worse, particularly on local digital, because a lot of the campaigns that you sell, you know, require you to, A, do specialized individual custom content, and B, oftentimes you need impressions that are not owned and operated impressions to build scale, and those impressions are very expensive to buy. You have TAC, you know, which is traffic acquisition cost.

Speaker #4: In digital. The margins are actually worse. Particularly on local digital. Because a lot of the campaigns that you sell require you to A, do specialized individual custom content.

Speaker #4: And B, oftentimes, you need impressions that are not owned and operated impressions to build scale. And those impressions are very expensive to buy. And so you have TAC.

Speaker #4: Which is traffic acquisition cost. And the radio business, local radio, has been moving in that direction. But it is a lower margin business. But as I and our local radio stations have been behind the curve in local digital.

Alfred Liggins: You know, the radio business, local radio, you know, has been moving, you know, in that direction. You know, it is a lower margin business. Our local radio stations have been behind the curve in local digital, and we are pushing and improving in that area because, you know, I tell my guys, you know, and ladies that low margin is better than no margin, right?

Alfred C. Liggins III: Our local radio stations have been behind the curve in local digital, and we are pushing and improving in that area because, you know, I tell my guys, you know, and ladies that low margin is better than no margin, right?

Speaker #4: And we're pushing and improving in that area. Because I tell my guys, and ladies, that low margin is better than no margin. Right? So.

Speaker #3: Yeah. And Dennis, on the local to Alfred's point, on local digital revenue, I mentioned in my sort of prepared remarks, we were up 10.9% for the quarter.

Joe D'Giorno: Dennis, to Alfred's point, on local digital revenue, I mentioned in my prepared remarks, we were up 10.9% for the quarter. The marketplace was up 20%, local digital is where the growth is in radio. We're sort of trailing that curve, but we're working hard.

Peter Thompson: Dennis, to Alfred's point, on local digital revenue, I mentioned in my prepared remarks, we were up 10.9% for the quarter. The marketplace was up 20%, local digital is where the growth is in radio. We're sort of trailing that curve, but we're working hard.

Speaker #3: The marketplace was up 20%. So local digital is where the growth is in radio. And we're sort of trailing that curve. But we're working hard to catch up.

Alfred C. Liggins III: Yeah

Alfred Liggins: Yeah

Joe D'Giorno: to catch up.

Peter Thompson: to catch up.

Alfred C. Liggins III: More scale in our markets will help us be a better local digital marketing partner for our, our advertisers. You know, we're, you know, we're focused on that.

Alfred Liggins: More scale in our markets will help us be a better local digital marketing partner for our, our advertisers. You know, we're, you know, we're focused on that.

Speaker #4: More scale in our markets helps us be a better local digital marketing partner for our advertisers, so we're focused on that.

Speaker #5: And let me just take a quick second to thank you in management for working so hard. I mean, my God, that refinancing you guys did in December was awesome.

Dennis Ponula: Let me just take a quick second to thank you in management for working so hard. I mean, my God, that refinancing you guys did in December was awesome. You didn't any of the company. There was no dilution to shareholders. Unfortunately, the market didn't reward you in any way, shape, or form for that. Now with this additional debt repurchase and another $1.1 million in interest savings, plus the premium savings, it's looking like if I'm not mistaken, your quarterly interest cost on your P&L is gonna be under $3 million. Does that sound about right, Mr. Thompson?

[Analyst] (Lupin Partners): Let me just take a quick second to thank you in management for working so hard. I mean, my God, that refinancing you guys did in December was awesome. You didn't any of the company. There was no dilution to shareholders. Unfortunately, the market didn't reward you in any way, shape, or form for that. Now with this additional debt repurchase and another $1.1 million in interest savings, plus the premium savings, it's looking like if I'm not mistaken, your quarterly interest cost on your P&L is gonna be under $3 million. Does that sound about right, Mr. Thompson?

Speaker #5: You didn't have any of the company. There was no dilution to shareholders. And unfortunately, the market didn't reward you in any way, shape, or form for that.

Speaker #5: And now with this additional debt repurchase. And another 1.1 million in interest savings. Plus the premium savings. It's looking like if I'm mistaken, you're quarterly interest cost on your P&L is going to be under $3 million.

Speaker #5: Does that sound about right, Mr. Thompson?

Speaker #4: Yeah. It's look. That's the weirdness of having to amortize the premium. And it reduces the effective interest rate. I think the way to think about the interest burden going forward is the cash interest expense proforma yeah.

Joe D'Giorno: Yeah, it's Look, that's the weirdness of having to amortize the premium, and it reduces the effective interest rate. I think the way to think about the interest burden going forward is the cash interest expense pro forma.

Peter Thompson: Yeah, it's Look, that's the weirdness of having to amortize the premium, and it reduces the effective interest rate. I think the way to think about the interest burden going forward is the cash interest expense pro forma.

Dennis Ponula: No, I know that.

[Analyst] (Lupin Partners): No, I know that.

Joe D'Giorno: Yeah. So, $24.8 is the pro forma cash interest expense moving forward, which is obviously way down on where we've been historically, and to your point, helps us generate more free cash flow, right?

Peter Thompson: Yeah. So, $24.8 is the pro forma cash interest expense moving forward, which is obviously way down on where we've been historically, and to your point, helps us generate more free cash flow, right?

Speaker #4: So 24.8 is the proforma cash interest expense moving forward. Which is obviously way down on where we've been historically and to your point, helps us generate more free cash flow.

Speaker #4: Right?

Speaker #5: Yeah. Look, you're in tough—we're in tougher businesses, right? And so, really, it's going to be a threading of the needle of how do you manage the balance sheet.

Alfred C. Liggins III: Yeah. Look, it's, you know, We're in tougher businesses, right? You know, it's going to be, you know, a threading of the needle of how do you manage the balance sheet, get your interest burden down, get your debt down, find the places where you can create more cash flow. Look, you gotta deal with the reality is that, you know, at least the assumptions that we make, like when we did this Dallas acquisition, our model has the Dallas market going down in spot revenue and digital going up with, you know, with lower margins, but net the market coming down, right?

Alfred Liggins: Yeah. Look, it's, you know, We're in tougher businesses, right? You know, it's going to be, you know, a threading of the needle of how do you manage the balance sheet, get your interest burden down, get your debt down, find the places where you can create more cash flow. Look, you gotta deal with the reality is that, you know, at least the assumptions that we make, like when we did this Dallas acquisition, our model has the Dallas market going down in spot revenue and digital going up with, you know, with lower margins, but net the market coming down, right?

Speaker #5: Get your interest burden down. Get your debt down. Find the places where you can create more cash flow. And look. You got to deal with the reality is that at least the assumptions that we make, like when we did this Dallas acquisition, our model has the Dallas market going down in spot revenue.

Speaker #5: And digital going up with lower margins. But net net, the market coming down. Right? And I don't have a crystal ball as to what happens to the media ecosystem in terms of technology and who's competing and what it means.

Alfred C. Liggins III: I don't have a crystal ball as to what happens, you know, to the media ecosystem in terms of technology and who's competing and what it means, you know. I don't think anybody does. You know, you just gotta manage that debt down and stay ahead of it. That's, you know, that's what we've been doing. That's what we planned on. I mean, it's actually, I mean, the fact that in February 2021, we had $825 million of debt. Five years later, we've got $303 million of debt. You know, we have less cash flow too, but, you know, that's, you know, I mean, that's.

Alfred Liggins: I don't have a crystal ball as to what happens, you know, to the media ecosystem in terms of technology and who's competing and what it means, you know. I don't think anybody does. You know, you just gotta manage that debt down and stay ahead of it. That's, you know, that's what we've been doing. That's what we planned on. I mean, it's actually, I mean, the fact that in February 2021, we had $825 million of debt. Five years later, we've got $303 million of debt. You know, we have less cash flow too, but, you know, that's, you know, I mean, that's.

Speaker #5: And I don't think anybody does. But you just got to manage that debt down and stay ahead of it. And so that's what we've been doing.

Speaker #5: That's what we plan to I mean, it's actually I mean, the fact that in February of '21, we had 825 million dollars of debt.

Speaker #5: In five years later, we've got 303 million dollars of debt. Now we have less cash flow too. But that's yeah. Well, even looking at January of 2024, you had 725 million.

Dennis Ponula: Well, even looking at January 2024, you had $725 million. In just a few years you guys took off, what? Over $400 million in debt.

[Analyst] (Lupin Partners): Well, even looking at January 2024, you had $725 million. In just a few years you guys took off, what? Over $400 million in debt.

Speaker #5: So in just a few years, you guys took off, what? Over $400 million in debt. Without diluting shareholders a single share.

Alfred C. Liggins III: Yeah

Alfred Liggins: Yeah

Dennis Ponula: without diluting shareholders a single share since.

[Analyst] (Lupin Partners): without diluting shareholders a single share since.

Alfred C. Liggins III: Yeah. I mean, look, you know, that's all fine and good, but I appreciate that, but the stock trades basically as an option level 'cause, you know, what's the value, right? Like, if you value stuff at, you know, we're like, hey, we're gonna be below 5x. Somebody could argue that, you know, your assets, cable and radio, are worth 5x, so there's no equity value, right? Like, you know, certainly benchmarks, whether it's AMC Networks or whether it's Versant or like, you know, have seen multiples, you know, below 5x, right? You know, we sold drawn. That's the reason you gotta get your debt down to 3x, right?

Alfred Liggins: Yeah. I mean, look, you know, that's all fine and good, but I appreciate that, but the stock trades basically as an option level 'cause, you know, what's the value, right? Like, if you value stuff at, you know, we're like, hey, we're gonna be below 5x. Somebody could argue that, you know, your assets, cable and radio, are worth 5x, so there's no equity value, right? Like, you know, certainly benchmarks, whether it's AMC Networks or whether it's Versant or like, you know, have seen multiples, you know, below 5x, right? You know, we sold drawn. That's the reason you gotta get your debt down to 3x, right? You know, that's, you know, like, you know, what we're, you know, what we're focusing on.

Speaker #4: Yeah. I mean, look. That's all fine and good. But the and I appreciate that. But the stock trades at an as basically as an option level.

Speaker #4: Because what's the value? Right? Do you value stuff at we're like, "Hey. We're going to be below 5 times. Somebody could argue that your assets, cable and radio, are worth 5 times." So there's no equity value.

Speaker #4: Right? Because certainly, benchmarks, whether it's AMC Networks or whether it's Versant or have seen multiples below 5 times. Right? So but we sold drawn.

Speaker #4: That's the reason you got to get your debt down to 3 times. Right? And that's like what we're what we're focusing on.

Alfred C. Liggins III: You know, that's, you know, like, you know, what we're, you know, what we're focusing on.

Speaker #5: Well, even your free cash flow that you just mentioned, you're going to do 40 million dollars. Your current market cap is 26 million this morning.

Dennis Ponula: Well, even your free cash flow that you just mentioned, you're gonna do $40 million. Your current market cap is $26 million this morning. I mean, how many companies are trading under one times free cash flow? I don't know of any.

[Analyst] (Lupin Partners): Well, even your free cash flow that you just mentioned, you're gonna do $40 million. Your current market cap is $26 million this morning. I mean, how many companies are trading under one times free cash flow? I don't know of any.

Speaker #5: I mean, how many companies are trading under 1 times free cash flow? I don't know any. I mean, I don't know what your peers typically trade at.

Alfred C. Liggins III: Yeah.

Alfred Liggins: Yeah.

Dennis Ponula: I mean, I don't know what your peers typically trade at, but when I took a look, they typically trade at 5 to 8 times free cash flow. You guys are less than 1.

[Analyst] (Lupin Partners): I mean, I don't know what your peers typically trade at, but when I took a look, they typically trade at 5 to 8 times free cash flow. You guys are less than 1.

Speaker #5: But when I took a look, they typically trade at 5 to 8 times free cash flow. You guys are less than 1.

Speaker #4: Yeah. Well, look. I think the market's got to get comfortable that our company, these companies are going to make it through the curve. Right?

Alfred C. Liggins III: Yeah. Well, look, I think the market's gotta get comfortable that, you know, our company, these companies are gonna make it through the curve, right? Like, you know, 'cause a number of folks have not made it. You know, Cumulus is in, you know, BK again. Spanish Broadcasting just went to BK, you know. They gotta believe that you're gonna make it, and then they'll buy your argument.

Alfred Liggins: Yeah. Well, look, I think the market's gotta get comfortable that, you know, our company, these companies are gonna make it through the curve, right? Like, you know, 'cause a number of folks have not made it. You know, Cumulus is in, you know, BK again. Spanish Broadcasting just went to BK, you know. They gotta believe that you're gonna make it, and then they'll buy your argument.

Speaker #4: Because a number of folks have not made it. Cumulus is in BK again. Spanish Broadcasting just went to BK. And so they got to believe that you're going to make it.

Speaker #4: And then they'll buy your argument.

Speaker #5: Well, and you don't have any liquidity issues either. And in terms of debt issues, you just pushed them out the 2030 and 2031. And your eliminating that debt at a rapid pace.

Dennis Ponula: Well, you don't have any liquidity issues either, any near-term debt issues. You just pushed them out to 2030 and 2031, and you're eliminating that debt at a rapid pace. I mean, how do you not get rerated and, you know, have your stock trading at literally bankruptcy prices?

[Analyst] (Lupin Partners): Well, you don't have any liquidity issues either, any near-term debt issues. You just pushed them out to 2030 and 2031, and you're eliminating that debt at a rapid pace. I mean, how do you not get rerated and, you know, have your stock trading at literally bankruptcy prices?

Speaker #5: So I mean, how do you not get rerated and have your stock trading at literally bankruptcy prices?

Alfred C. Liggins III: Yeah.

Alfred Liggins: Yeah.

Joe D'Giorno: S&P are on the call. I'm sure they're making notes.

Peter Thompson: S&P are on the call. I'm sure they're making notes.

Speaker #4: S&P are on the call. I'm sure they're making.

Alfred C. Liggins III: Exactly, right?

Alfred Liggins: Exactly, right?

Speaker #5: Exactly. Right?

Speaker #4: S&P, I hope you're making notes.

Joe D'Giorno: S&P, I hope you're making notes.

Peter Thompson: S&P, I hope you're making notes.

Dennis Ponula: All right. Thank you, guys. Thank you for taking my questions. I appreciate your time and your hard work. I hope you guys get rewarded share price-wise very soon.

Alfred Liggins: All right. Thank you,

Speaker #6: All right.

Speaker #4: Well, thank you.

[Analyst] (Lupin Partners): guys. Thank you for taking my questions. I appreciate your time and your hard work. I hope you guys get rewarded share price-wise very soon.

Speaker #5: Guys. Thank you for taking my questions. I appreciate your time. And your hard work. And I hope that I hope you guys get rewarded share price-wise.

Speaker #5: Very soon.

Speaker #4: So do we.

Alfred C. Liggins III: Do we.

Alfred Liggins: Do we.

Speaker #6: Yeah. Yeah. Thank you, Dennis.

Joe D'Giorno: Yeah. Thank you, guys.

Peter Thompson: Yeah. Thank you, guys.

Speaker #1: And once again, for questions, please press star 1 on your telephone keypad. This concludes our question and answer session. I'll hand the call back to Alfred for any closing comments.

Operator 2: Once again, for questions, please press star one on your telephone keypad. This concludes our question and answer session. I'll hand the call back to Alfred for any closing comments.

Operator: Once again, for questions, please press star one on your telephone keypad. This concludes our question and answer session. I'll hand the call back to Alfred for any closing comments.

Speaker #4: Operator, thank you very much. And also, thank you, everybody, for your support. And again, I always say this. I sound like a broken record.

Alfred C. Liggins III: Operator, thank you very much. Also, thank you everybody for your support. Again, I always say this, I sound like a broken record, but Peter and I, you know, pride ourselves on being accessible. If there are any follow-up questions, please feel free to reach out to us. Thank you very much.

Alfred Liggins: Operator, thank you very much. Also, thank you everybody for your support. Again, I always say this, I sound like a broken record, but Peter and I, you know, pride ourselves on being accessible. If there are any follow-up questions, please feel free to reach out to us. Thank you very much.

Speaker #4: But Peter and I pride ourselves on being accessible. And so if there are any follow-up questions, please feel free to reach out to us.

Speaker #4: Thank you very much.

Operator 2: This concludes our call. Thank you all for joining. You may now disconnect.

Operator: This concludes our call. Thank you all for joining. You may now disconnect.