UONE - Earnings call transcript Q1 2018

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Operator

Thank you for standing by and welcome to Urban One’s 2018 First Quarter Earnings Conference Call. I’ve been asked to begin the call with the following Safe Harbor statement.

During this conference call, Urban One may share with you certain projections or forward-looking statements regarding future events or its future performance. The Company cautions you that certain factors, including risks and uncertainties referred to in the 10-Ks, 10-Qs and other reports periodically files at 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 May 2, 2018. One in duty the Urban forward-looking update that made statements presentation. note disclaims to any any Please In this call, non-GAAP financial Urban One may in about also talking its performance. measures discuss some during be to or will the release, its found press can Company’s of website measures Certain at in GAAP, either www.urbanX.com. this the reconciled call be on which course pardon Relations under be One corporate Urban of audio of the Relations An Investor on replay Investor the available conference me, page webpage. the -- at section will www.urbanX.com the also website replay seven will be website The made available days the on for call. after the recordings call be may copies other No or of are authorized upon. this or relied I to Alfred will over call turn now C. the Liggins, who Chief joined One, Executive by is of Peter Officer Urban D. Thompson, Officer. Chief the Company’s Financial Mr. Liggins?

Alfred C. Liggins

quarter Thank you very much, operator, first conference results and our welcome call. to

release, the really time. some which from a got of execute performance. haven’t competitive something in have in We’ve seen we good news radio order been working team radio issues press performed, of that in in seen QX. of a Even turnaround. of you’ve out It a management that very number is the terms we a lapsed to like our performance of the bit we in market, we tough the kind proud on we’ve feels on As

of up the made stations, station. the move being feel good are for intellectual about our really that key translators the We plus actually radio getting the Detroit It’s we property. which one it million our and from going picking three translators good business going the inspirational we to an in other we’re a is in EMF. have asset Company sale existing that for to to buyer our as we’re also to stations one the of one deal of take radio of And $XX.X that well,

we good somewhere to we look preserve of XX we planning business retain. when sale that a times north the expect multiple to deal on that So, at of are and what

to just dispositions Xs we’re So, the out continue acquisitions continued of to TV down sense end where the low deleveraging sense. have deleveraging towards ratings getting look make to challenges. And some make they But, we bottoming they our of in deleveraging by or for year. part where like plan QX. One continuing to they to feel march the are

provide about So, Peter that. will let more of and doing bit Also color. We’ll is details and numbers the we’ll jump great. a talk more talk that. MGM little the I’m some going into about some back circle to

Peter D. Thompson

Joyner in retail, Houston, revenue for markets their points. XX, up sectors breakout a Dallas, the services, Cincinnati segment Richmond, page radio and food revenue the while down Net outperformed clusters was pacing on dialogue entertainment, single-digits, down still most by their the driven on is May was weak $XX.X source are Overall, through posted markets and the will and budgets healthcare, only ended by for be can year-to-date in down we’re by XX.X% The the found mid revenue on decline in significantly first can quarter. the five segment for biggest is page radio Alfred. X.X% quarter approximately with down. down concern April, are the seven. be found March press currently McDonald’s related in McDonald’s revenue down release was advertising million. the of you, was of plans decrease the Thank quarter. X.X% XXXX net After as for QX, division, African-American our Breakout revenue at and by our the revenue pricing we lower and approximately flat. Cleveland, XXX event by General affiliate partly points net transportation the pacings market better revenue. all Philadelphia, by down Advertising travel Tom sales facing outperformed in sectors clusters the network and the first $XXX,XXX and Net basis spot audience. radio a go government/public financial, we basis down. The in and Media quarter. beverage, for quarter. XXX and Telecommunications, was our show primarily automotive were and the improve June year. to believe sector significant is stations Reach were quarter growth

portfolio. National units X% sales Maryland. partially in of to This X% by delivery a from of the and Cable X.X% an is reported our down quarter declines a Madame advertising increase recognized QX. integration TV the existing in X.X%. first some of quarter, state the XX.X% subscribers our talent of down units, We rate were the increased Reach promo finished X% for Hip the approximately Hop in as net in income the to ad unit Cable Noire combine decrease segment by compensation growth million, XX.X each in and QX from other. growth of paying sales of during units MGM and at recorded increase our to decrease affiliate down newly contractual number digital of increase television TV the with end Media of driven by acquisition the Wired XX%, brands XX.X% gaming expense of with by was $XX.X expectations. double-digit million expectations revenue to Cable We approximately exceeded adjusted quarter. revenue quarter equal XXXX the our quarter savings This of an growth our declines. million subs Nielsen, increase offsetting Our offset cable direct due converting at the into Casino, measured Net $X.X in adjusted an revenue for approximately method revenue to in by from Harbor for EBITDA first Revenue digital post allowing primarily acquired our segment the XX.X business driven from from the in was lower line revenues and was offset investment cost XXXX. EBITDA the Bossip, rates our million of

by and and a up mainly were new In in National due which impairments slot expenses that single in regular due to QX Reach table mainly and to marketing Operating to future programming due payout million expenses acquisition $XX.X games approximately by amortization, compensation due spend. QX. of newly to Radio staff which Hop for year-over-year outside BHM SG&A million integration Hip were up spend. down million, stock by advertising expense depreciation, technical MGM savings we leaseback X.X%. million tower and to to $XXX,XXX outside of sale expenses Harbor lower in Wired fact approximately for the royalty Bossip, March. based credit record to approximately were professional to commissions X.X% non-cash in machines both record liability XX.X% in the by by savings the of increase contingent and were Operating in due The driven compensation, and commissions. expenses technical month in expenses expenses lower and Madame lower increase music the portion in savings expense of up a Included with down with were excluding services. the set $X.X decreased SG&A charge Noire down was and expenses $X.X acquired the $XXX,XXX onetime increase up brands. program content and was XX.X% expenses down had SG&A Corporate the segment talent, amortization was XXXX. were lower of an due reduced TV consideration. and digital sales is the $X.X Cable this

and internet approximately was broadcast $XX.X the the for approximately in was to Interest million, loss an a first same income taxes amount taxes first provision $XXX,XXX. a retirement $XX.X the down discounts, For $X.X XXXX. interest XXXX. our operating approximately for $XX.X of to million, X.X% the the Company the Company increase X.XX% $XX.X million debt of a adjusted EBITDA million quarter Net quarter. consolidated Notes first non-cash expense approximately the loss million million $XX approximately gain share million in X% of per cash the in was of quarter per in $X.XX and in of $XXX,XXX of $XX.X $XX.X or cash quarter, income from the for for year-to-year. or was approximately the paid resulting repurchased share period Consolidated to quarter XXXX in $XX.X approximately compared We’ve of million payments approximately million made on net of $XX.X amount we compared in recorded $X.XX approximately of of quarter. XXXX. million

with adjusted LTM obligations forma in bank quarter, leverage times. leverage million in assets of the stock common satisfy $X.X D also approximately the approximately million. $X.X to compared $XXX,XXX stock of Class million tax CapEx common repurchased Bank of X,XXX,XXX expenditures in of D For first plan. purchased in Company connection the in $X were million approximately XXXX employee amount QX shares purposes of covenant Class to capital XXXX. stock shares XXX,XXX employee amounts Company the in approximately XXX.X to signed sell $XXX.X debt Net was Educational Media Net a compared the WPZR agreement of $XXX.X times of to X.XX total was GAAP $XXX.X the definitive times. ratio was EBITDA of Detroit Foundation. million. approximately $XX.X FM X.XX for for EBITDA pro a a X.XX to million senior approximately covenant limit against recently We million

to And March format. sale, I’ll the One further continue Urban leverage Detroit leverage. for three ratio multicast us FM area. the times. Network, our Pro the These be net of seller’s XXXX back with allows with approximately signals which to was XX, will and consideration part help reduce a value will Praise us combined the double-digit at metropolitan Transaction FM community to As that, represents serve X.XX our the hand listening translators our service high who asset multiple EMF, will Alfred. receive translator to forma existing to from net to

Alfred C. Liggins

jump That’s sale. asset Peter. point Thanks, with a the good off

when on our morning, deleveraging. Peter continue of I this leverage to remembered be Discussing this X We hyper-focused was company times. levered north and

marching times. year. in Now low Xs towards the And this to are below X we’re goal be a we

to We’re with help transactions debt. flow they’re whether for We, dispositions going to look new -- to that again use cash us our deleveraging. can continue or down free we acquisitions pay that

always at are and We trolling looking stuff.

one we -- the standpoint, are to focused performance. to million options believe And out of large or to we there. I a on there are will of feel this market hopefully -- to and which comfortable where for meaningful is both doubles combination as about transformational that disposition. we so, EBITDA, signaling get a $XXX combined and some XXXX up acquisition to the be guidance comfortable we Peter They singles and that opposed will add Company can be from And year’s combined and

there. get piece very new we’re can But, well. you good haven’t information that exceptionally MGM, a feeling market be that Peter before. continue we told that’s as pretty doing believe deal there will take And So, We of they that share. good a is will deal would top be out to for be to it helps of in put that probable exceeds at with coming that our something on that real of this there value we us expectations a and our exploring our created refi. asset us highly minimum expectation. will with how terms could There it able do for we

to real I people also value. able equity be get increasing has but going to get comfortable to think, seems which that that our we’re our be distribution, will stake

ratings, that And a old One midyear. the And got acquisitions get and going May of as the even summer. to We’ve are so, bit. We hit we’re universe Empire but in return Empire the reduce the net got forward part to to of use about schedule to also said the how the like will of have were shrinking. that bottoming we’re coming also on hopeful give that more some this context library QX, before, episodes. options of Through a month QX the will momentum. access And up exploring in working Company’s particular new first help been to are us in out. feel we we I part some new of We’ve we’ve entire April, refi. a flat leverage, us a been problem, TV value

think, diligent, to can good to debt, all down continue do feeling and be pay we’re you we in us all, I our execute a in prospects. pretty to So, about expect But, tough continue which market.

getting free generation, of of low X cash with see the clear as XXXX we our EBITDA the a path million $XXX On a flow down to leverage. for

below like get to investors to number trying to for be. how now we talked about We’re figure us we where a out is should anything And X a X. be. it We’ve below place great of seems

focused we’re the have don’t clear to just we yet, away So, from it. able And a achieve a but that. being on probably to or that single path we’re double

Peter D. Thompson

mean, clarify this accelerate. but to that, year. practice And would of there we the within course Yes. [ph] to I time is mean over you like just

Alfred C. Liggins

between it up year. course of for Thank this the end clarifying Within operator, I’d of you Correct. that, I’m to open With XXXX. that. now talking for about questions. like and

Operator

to Absolutely. go with [Operator Instructions] Watts the first Deutsche Bank. ahead. Aaron line We’ll of Go

Aaron Watts

for with the decrease radio. revenue Thanks I’ll at in broadcasting. slight start me Few questions, quarter Yes. looking guess, first on having on. the for radio I

You cited were markets that bunch up that were a some of and down.

markets, and at between of is your What’s peers? impact is As kind those it you it more competitive you differences from between look going differences, markets? those digital, shifts the between share on

Alfred C. Liggins

segment. kind the no, of And Baltimore nothing from and really a not know question. standpoint changed the in competitive good we And they’re Atlanta what? just… has them, markets radio of big. are And a Two it’s you Company’s four competitive -- -- of It’s drive that that got Yes. down big

Peter D. Thompson

clarify, about double-digit. to market being Again, you’re down talking the Yes.

Alfred C. Liggins

Exactly.

Peter D. Thompson

We’re beating the the market, is itself but down double-digit. market

Alfred C. Liggins

Atlanta, town, it to used diversifying And that yes, you have I but and manufacturing don’t Baltimore argument. mean, maybe that one why. diversifying know growth argue East not it’s has line Atlanta, a could make or can’t old market. Coast bays I

So, what and I’ve figure drives time. to is. any I never up able that why have been one out down at another market no given market idea

right the mix So, just I kind now of of markets. that’s think our particular -- effect of that’s

Peter D. Thompson

X.X% our of markets, as down X.X%; four Houston X.X. Kaplan X.X. of is down couple was were Miller We’ve we down other market; markets, QX Washington the that a beaten market up big The in And down a And our for points. we DC. was were

flavor a you gives the big that four So for markets.

Aaron Watts

that think separate said events as your some revenue. to know I or events? digits, And event lower Are pacings I does excluding feel able due down moving out mid of to about into single market and you how you although those the the XQ,

Alfred C. Liggins

Yes. good Again, question. another

I at, I think, moment, in. markets those of we a judging just at points events -- then, line the the the couple business, I so are suspect where are came And where spot with suspect pacing. at in costing are us when we look to QX

So, excluding if that zone, markets down to about. if the couple that change were of events are the and they are in close stayed we QX, that we talking three in probably

Aaron Watts

are that reason you’ve a as from what hope a political well? towards benefit radio flat this And hearing can helping you as Alfred, growth any a or based story push little I on bit from probably even advertisers, to that tailwind year? know, of got a

Alfred C. Liggins

took where historically in of definitely underperformance the a a Yes. recession CNBC, I’m about dynamics competitive years coming Houston, the right? up took we don’t know, Indianapolis. that people think of of competitors some our chance is I predicting The a is radio us last I is economist, our million the recession. believe flat radio short not to was now Those goal in But competitor we of I talk three an the a The we been -- matter we I a look, guess that. has thing to finish has flow. Company scenarios cash coming, a recession competitor Columbus, to fact market. a aside, believe $XX cost X.X I related watching in curve took the a to has that outperformed I And shape this the yield there right been has outperform -- largely year. for are

Aaron Watts

TV you just one of side ask the me things. Let on

that? you that. sub-count over maybe Can a more through to have or those last it’s little talk color the can strategy, getting whether about your top maybe about the of picture. any declined. and your week But two around from that give to over on you you bit try efforts? And the direct we echoed it’s MVPDs also offset on some subscriber know, services I consumer losses, declines the or heard more subscriber You spoke count and

Alfred C. Liggins

look, I subs they mean, it. people video have operators echoed than mean, expected. lost of you I been down all more had Yes. because the

we’ve churn at -- migration. we than I through as Time the the people don’t price churned and have not all because and like we’ve consumer got more like package Warner had their cord we product business really one, where a some answer than on it’s going It’s we buy it’s -- And show expected. see was that’s so, that content put impact. we’re that the immediately charter package that’s there makes more we that thought someone an us sports are largely seen access. for an or old value direct in cut was Particularly the attractive that it CBS not And have time to. we won’t and or believe, over out immediate a got systems, relationship is works charter, that CBS top today

would that market of it us, get like to And try mass to consumer sounds for money-losing get then to it immediate a So, then for, long, subs slog we to some have money. and content a go other wouldn’t would issue. be make that package direct that our solve to critical

we have we So, overall those focused have churn. mitigate? we the kind we and mitigating of subs we’re we our First are from still people --lots are on which of of of But I flattish. opportunities. can down mean, subs of how some get on all, been opportunities people more where do

not still OTT to have folks, we we’re talking because were distributors upside talking So, we’re fully of to some where the distributed.

networks. we new But already service a fills distribution, us hang be and void audience probably fee would we get for platform, the opportunities to that We more enough marketplace secure a -- to we’ve is to think operators off to license concept free network impressions that if would because anything, have new the existing where because the not to platform that a doesn’t and we to more hang monetize. have at that which relationships are significant off looking paying which of could another platform launch got cost another receptive give and our we of

So, we’re from any of focused opportunity. of look a on in to standpoint, programming more we TV, that Cable at also combinations. sort JVs kind continue And

create look M&A deleveraging. us would to to and be continue allow at We opportunities that any value

cost probably platform, license that no and won’t OTT, additional existing we second a distribution some us already money a that because of fee have with launch likely get more a and try to lot free partners. to So, we launch our network

Operator

And to go our we and four Ramirez Company. question, will next [Ph] with of line Coffman Mark

Unidentified Analyst

Good the Nice in you’ve job morning, reducing stakeholders. the gentlemen. and this where Company, the past been quarter over listening to leverage the year

Does I question opposed the of Joyner’s let’s just obviously think, or have think Media. does combination say over And through the that, or a have on there it’s change that good. some it negative and a Reach it as you’re revenues the internet any it if on exposure. to on being or been already Does for positive to radio Reach Media realizing? thoughts wise moving it personality relates I revenues and there’s your changes cash digital airways flow know impact Tom has that radio. is all outlook flow three? or also, over been about as I I

Alfred C. Liggins

Yes.

of to million from significantly like tough significantly QX EBITDA. that actually to So, -- pointed year-over-year. numbers. were this QX Reach even of Reach they EBITDA cut rebounding tough QX. doing and than our basically with save to that out, We expenses QX a XXXX I think X but better half those revenues really ad year, grew EBITDA plus X.X, tough had see able $X probably got a ad in they had as revenue, on kind on Peter

as extension. that viable open may source for But Tom still that a has internet. that contract. feel just I years? we’re stream of two that’s is DL to plan And have for that, ago, of be is going Tom Reach’s do -- sort us. it shows made the the is -- is business announcement, good on like year. his don’t that is big to an robust the I did so, online. good got And We a impact does. a talking same still the Hughley The -- our pontificating. because not me going for he believe we future next it. what if show inspirational don’t going entertainment it do remember. to just flow we resigned to portfolio. this still after at I Reach still show, yes, it’s recovery Tom’s revenue two already retiring And there Tom an another he what the what for dramatic we years I was Tom from declining show. to negative There why years -- XX maybe that He And cash or to and are that And be one, now. a I Tom it the exclusively about he said were and announcement to audience. something which plan radio that life we business. know three It’s he’ would and also think, Smiley no we time. Company rounding don’t is company, but was Show be about have was holds. I to out has on That’s know this as know But, move Rickey

diversified pretty there. we’re So,

Unidentified Analyst

some Could days, parameters the or whatever my MGM flows valuations a question, if the on you cash these more or share? next elaborate numbers you you possibly of -- or mind, little don’t can that or could you from revenues

Alfred C. Liggins

you Well, company, a gaming public some so they’re is, look, what know because… kind revenue can of -- they’re do we

Peter D. Thompson

continues. growth XX% -- rate Yes. It’s that XX%

should $X.X distribution call it million. year, this $X.X of north from million Our be it

got XXX more grand than that’s we So, last year.

two times talking out with baked, EBITDA say about their once own right, fully EBITDA, six and thirds fully analyst we and their baked report said, put Alfred As percent. ultimately at years we’re X and there three I out,

But, from math. Alfred run think that standpoint valuable. the as to equity state is straightforward we an said, relatively it’s So, that

Alfred C. Liggins

it’s probably $XX probably dollars and plus worth to today million worth be going It’s north million. XX of

times that it on we the X our tangible. So, money idea make is pretty

Operator

Jacobson We & with will TV Radio line Adam to Go News. Business of ahead. go

Adam Jacobson

question My congratulations on your coming in in regards D.C. with the divestment market that. I’m to Washington familiar is years. Detroit.

small X.X. formatted a have radio You station

those into lot Given And Washington? some looking expand of further a in I’m EMF the to that Foundation, discussions of in the Media markets. wondering, formatted there’s buyer certainly the Praise any Detroit, cities any like the if internally further and discussions regarding stations are Educational with

Alfred C. Liggins

at divest happened whether cash this not be No, that time. programming just move its or these over translators. to the stick at. our has to to than In amount Detroit, that to we’re case order generating not for be decide value higher given the ability us trading to the the And flow ultimately to something, of in multiple times

not So, leaving we actually are format. the

station lot -- the That of exist It’s are makes market. -- in money. a most performing home our well does our the revenue Praise; that and probably D.C. would station in not We dynamic it exceptionally in for it’s Praise staying market. station with in Washington on that best

pay So, cash somebody standpoint from it’s more it at the than to stage. worth flow would us this for

Operator

have Kupinski ahead. Go with the Noble We queue of Michael question in Capital Markets. line from a

Michael Kupinski

expecting the quarter. improving categories know, back are contributing Are trends that back was the typically to the improving in come quarter? and wondering the quarter you McDonald’s dynamics trends seeing just terms makes you half? in in of of what As Any June to I you in

Alfred C. Liggins

national, McDonald’s. had local. they a more shift; good a went less They with had meeting We

We of have our voiced local on importance ratio. position, our thoughts the

more We at are and at One getting money digital. TV

they’re I think constantly business. that their and they assessing they’ve at, what how where are it’s done affecting

great we them. a think, relationship have I with still So,

XX% know -- relationship. to QX, have of improve last them. they upon But, advertiser. yet. -- in local don’t from radio? did they definitive answers XX% I continue of spent We I don’t And a did didn’t what they in be excuse dialogue. me Can an get year. to it was last in going But they Unfortunately QX, great know that I will productive are if any a year spent what we they

Michael Kupinski

know is those back And as pretty coming it coming some quarter. well? saying first auto was bit be seems for second been industry trends Auto good Are your you have the like auto I the that in quarter. in the seeing back, to a little sounded

Alfred C. Liggins

that’s I heard who but said check of were just one they company. one it of from a regional in that in starting return auto the our see Presidents channel Vice to QX

Peter D. Thompson

X% category. in QX, we auto And were the Yes. up in

does… that So

Michael Kupinski

Yes. And like that, congratulations there about just you’re market mean in exiting to on like where to the Company large a I market? a market. only the have Detroit. a it’s the a unique seems I that. important… Would quick in question stay situation It consider able if was or way stay an

Alfred C. Liggins

we’re to and not this fund. going the capital venture I affects go because around record, I’m you So, officially just to base your kind mean, rumors got a statement make it employee and other of on But stuff.

we’re plus profile which have and money not come leverage make media reason. XX some a just over to just is media business. a We’ve years want a down. and where we business the company a animal to get economic So, built of pure we for it needs But, the out

in do fact don’t it the given I because So, just we’re to of business the that always mean, creating be we we value, broadcasters. wanted

We are in the broadcasting business.

we it being community can we leverage happy being to We and have earn I’m purpose having including years your and half didn’t because to but continue do community always that that another your we a a than at this boat. living if primary more that goal create And bankrupt, particularly our because and the just went serving serve of in value we two want saw to XX So, our broadcasters the for largest you to for also where reduce of an end it need players. you rationalize up we portfolio, industry audience, love it.

assets to more zone underperforming then safe we that us a get leverage that. open create a even where by we disposition -- And because XXXX doesn’t always Los to allowed can or our combine Louisville, viewpoint. somewhere a valuable, acquisition. Kentucky; But, would presence we reduce or direction. can absolutely so of opportunity rule and been have leverage, synergies view us Dayton, bigger markets where our didn’t including hands this they way, in to yes, can an our either We a have money. Angeles, And deem we’re somebody to recession, the assets some that any make So, Prior has that would the us in allow be sold going that’s us more of and out for up out environment, picking to strategic Company ended the either to value we continue the a up get issues, as you California; we that Minneapolis. would to other Ohio; we larger are we and don’t places those gave recessionary bunch where create

job that’s And I my as CEO Company’s history continue a been So, that. think that’s do record. and the our to track to

is that. you to And The underperforming at So, it method people probably this don’t an anything perform. best always And else. way than our asset is should look then, to not for considered have expect more be base employee it.

level, about has reality makes great, money. station about the is flow. a does Praise cash a free a at as us if question That think Somebody radio leverage Actually a asked great and in station me business, you right Washington. lot the great of our business a it’s

cash my invested the the get to for probably are from about radio in any XX% margin could you of D.C. just you equity better than sort on call that do radio the companies in radio of can some cash holding dollars in view the a bond radio return, the and certainly a return pretty is safe If cash markets get and of thinking return XX% or fund. and stout on business markets a me they’re generation. because actually money of mean business, buying market stations I I’ve and standpoint. good had the them asset

I to and how the how that’s So, future. in it be think executing we’re going that’s about

Operator

line ahead. from question of the Torii will Go next The Descartes. Juliano come with

Juliano Torii

maybe could what are if leaves this from questions the you transaction. continue well? think of could the clarify wanted Well, stays that you to a and do what’s going bit could yes, the to which questions, solution of the of Detroit market if most just my Company, previous you that? and I been potentially how markets Basically, explain a then, be answered. structure on see you that make to elaborate more have as And money

Alfred C. Liggins

picking the cash one least it from we’ll understand will station, a and don’t moving to cash smaller WPZR But radio contributes four preserve Detroit revenue of essentially we audience and the parts radio [indiscernible] EMF doing and the a up last. we’re cash intellectual property, Three, the half revenue do flow. at to sold city. we’re stations -- million flow, bucks right we cover that I And of a own. different that station format, being taking and probably what’s And will that’s flow. believe respectable of that all now inspirational and and is couple format, name the particular serve selling is that amount of that we’re half and we’re already of that about of continue $X the a for another it’s that million station,

Peter D. Thompson

Yes.

we about think to signals. one to we million So, from us EBITDA four adjusted $X.X signal of by on the prove but value the have our that create out that’s costs the the we smaller switch Obviously based how it making big research.

Alfred C. Liggins

have translators revenue doing smaller know the on research, on we experience actually smaller in and format just doing not of signals what kind this are those. we it’s And of we markets. And

look configuration this in particular situation. do was So, we a we don’t current else what that. This And particular with have anywhere plans to empirical any real world like. that have experience might

Juliano Torii

selling are selling you completely, So, they are are because [indiscernible]? not consolidating not basically, not out not -- you right, are anything, the market, of you

Alfred C. Liggins

No.

Juliano Torii

such I’m just why you that to understand be a you curious do high pay That Okay. makes. competing changed there? multiple them, what with considering should

Alfred C. Liggins

that again? Say sorry. I’m

Peter D. Thompson

speakers] [Multiple

Alfred C. Liggins

how station population don’t what knowledge. much the to and from And to their of derive their got they’ve their really have as They Christian actually that privy local that operate sale -- model. revenues they are. think they They -- is multiple to a donations income formula much K-Love a -- expected are in formats, are are non-profit. my as some They in a out particular I’m where ads, expected formats business. format possible. radio not they derive decide as primary worth they Detroit they get called from they They They it. They model are national internal a I two distributions the operates It’s their them. not just And broadcaster business broadcast audience currently. They small to those looking is California. what translators reach have own -- donations. is to business the format but central the

a looking to looking radio power reach So, full we for have they’re station. wider and are a

actually them decided we about and this in We for to with years it transaction talking manner. two the to over been have move just forward ultimately

than So, that, I other can’t tell.

Peter D. Thompson

value flow is not And it essentially our flow multiple. to don’t cash cash relevant our them. a flow, cash it’s on They

the them. and ascribe So that deal the And preserve to metrics station we format. But works. are worth their that’s the works why value our to Right? the get they different for for to us It probably metrics. is

Operator

line question the a of please. Robert ahead with have in queue Claiborne Go Insight form We Investment.

Robert Claiborne

I’m on a I sorry. little. jumped

you maybe sale. all cash? Detroit this Is have addressed if on So, this already

Alfred C. Liggins

Yes.

Sorry.

Peter D. Thompson

that Sorry. No, is it’s the cash the approximately $XX.X approximately of value in total been million three $X.X is which have of million and exchanged. translators $XX.X million

Robert Claiborne

if other too the at then, you if had up point? any I this advertising have on question is, shaping or And don’t early is outlook know thoughts but political the I color how it’s

Alfred C. Liggins

because but a have it’s probably have number, that. is some -- regional color, weren’t that prepared I’m is there early, sure not to we really we some to there races prepared happened weren’t Too big so

Peter D. Thompson

you this millionish but we’re mean rough we so X.X it at to where I political call agree are of what as number far, terms year. said, In expecting, of a

Alfred C. Liggins

to of Of in is QX. that which, most going come

Robert Claiborne

the continuing continue to on And down? bonds get lot multiple and back delevering, I focus deleveraging sense think to buying flow, to your with makes a it cash of free

Alfred C. Liggins

Yes. That’s we’re doing. what

Operator

Odeon. of We’ll Ben Instructions] Brogadir go to with [Operator line [Ph] the

Unidentified Analyst

your little you terms docs. fund Is in any further can housekeeping use to there bond issue limitation Just guys with market? buy for that have to you potential not And bonds buybacks? you open the the in back ABL. Is facility drawn kind subordinated guys a there of debt respect of to bit a of how of many

Peter D. Thompson

permitted They’re investments. Yes.

a there buy is can leverage. no are those So, But, on of limitation governor because many we is net there our how tests back.

the the back, ratio to take junior extent the So, cash that and buy on to time debt, X.XX tighten you you your are going tests.

governor. really that’s the So,

to tight your So, buy we to because would And in that tests. like don’t with to times you go on get you as downturn. incompliance get out many leverage obviously, net back can your provided you in senior X.XX want hate the as

all balancing about really and want so, And hand you cash cash you want it’s how bonds. back how act of for balancing so taking a those about just our on not us. to and much debt It’s It’s much much retire. buying

Unidentified Analyst

should And market purchases, fair? the open then, just to be expect probably kind XXs those further of is clear, progresses, that year as we

Alfred C. Liggins

Yes..

Peter D. Thompson

Yes.

distant on I think of take got most the And a with so. future. we not now. that Comcast coming It’s our in too that We due down. to that a small Yes. capital want balance expensive exception refi

So, it make down. sense to that take

Operator

questions queue time. further We this have in no at

Alfred C. Liggins

quarter. everybody. Again, Talk next All available we’re offline. as usual, to right. Thank you you

Operator

that you for gentlemen, participation for conclude call using your and Executive your Thank ladies today. for conference And AT&T’s Service. and Teleconference will

disconnect. now may You

Urban One (UONE) 2 May 182018 Q1 Earnings call transcript