UONE - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Urban One 2021 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. and that the including reports to XX-Ks, files the you referred and it differ cautions cause forward-looking with in could statements. indicated to XX-Qs Securities projections materially One from certain actual by risks factors, uncertainties periodically the those Urban company's Commission, its results or Exchange and other This call will present information as of May XX, XXXX. the One disclaims any made in update any forward-looking to Urban presentation. duty that, note Please statements talking about In non-GAAP in this call, financial also One performance. some discuss its Urban may measures These or press either on this can measures to the during GAAP found www.urbanX.com. will be in reconciled course of its be release, call website at company's the which of XX:XX conference this made be p.m. replay available from A will today, Eastern May XX Standard time XX:XX until p.m. XXXX, XX May XXXX. XXX-XXX-X Callers code may -- the XXX-XXX XXXXXXX. sorry is access access with -- the am replay or XXXX-XXX-XXXX I by calling Access a to conference www.urbanX.com. be available of website Urban will also the at live One's corporate and on replay audio will call. seven on be the The available for website made replay the after days copies are No recordings upon. authorized this relied be or other may or of call call turn I will C. Alfred over to now the Peter Officer Executive by is joined Chief Financial One, Officer. who Chief of Urban Liggins, Thompson, Mr. please go Liggins, ahead.

Alfred Liggins

very CFO Simpson, you TV Jody our Officer, Chief and much, Drewer, Karen joining for Operator. Administrative are Thank me Kris the Counsel our Wishart, General One company. for Also

compared to bad posted last start actually to lap comps, put year, excited got this all with You -- months very performance that have is results. QX COVID EBITDA pretty and us first strong negative QX the quarter in We will COVID that XXXX. in stronger for months are even were two our we counts and the behind the press release our of we happy quarter with

radio our rebound starting in QX units to business. to see continue activity for We well. perform are And other significant our

we're optimistic year. the very about full So

turn it to the specifics the of now go numbers. So Peter, to into over will I

Peter Thompson

political by $XX.X revenue year-over-year up was Thank Core down radio was you, the January first was excluding XX.X%, approximately and quarter. down XXXX, down was revenue million. ended March in was March the February X.X% XXst for Net down year-over-year Alfred. XX.X%. quarter X.X%. XX.X%

down sequential driven was category, million, $X.X property growth diversity from approximately spend by most last year-over-year. sales with And by, Reach EBITDA drove quarter, driven the national advertiser revenue million of $XX.X for of million EBITDA of lap related related at million for Operating QX direct CLEO for XXXX publishers increased podcast. from our outlook This as $XX.X throughout year-over-year, Richmond cost to difficult iONE black-owned investment and television at Food recognized as $X.X segment. in the other than which, African-American in million, was and approximately a in to increases Reach $X.X quarter, Adjusted QX $XX.X our impairments was end of our down By business ad recorded in $X.X of restaurants. lower-tax, from saw approximately million and approximately demand for audience of approximately by saved compensation strong first to million. increased quarter, decreased approximately QX. the down event advertising Macy's government reduced of of decrease Financial $X and were $X.X lack expenses in offset by were and to approximately We first QX, up obviously food advertising revenues year segment the XX.X% $XXX,XXX million, We currently COVID-XX a million. and growth in of Digital. in finished year-over-year radio was compensation, Nielsen year. XX.X%. services X.X% for method office by expenses was revenue stock-based by $X.X demand $X our savings for digital up XX.X% Retail compared quarter during launch XX.X% the subscribers. concert stronger and digital XXXX. million for contributed down EBITDA for to million X.X%. million Media the XXXX. amortization to EBITDA, activity. One, and revenue a Net income expenses, by rate by our and Cable more to prior QX in said, Cable adjusted churn approximately we depreciation million fast down certified quarter impacted by we million up cost TV million $X.X sales down $XXX,XXX, by we the for X.X%. of QX client the down adjusted the was and Cable in segment from lower improvement Alfred $X was year-over-year. by by the had quarter brands the revenue million while for $X.X casino MGM approximately TV with employee quarter. was National So posted sales Nielsen, was entertainment as ad expenses excluding local The in down less Despite our subscribers X.X% $X.X down million Including cable higher measured TV XX%, due at travel Adjusted Harbor beverage XX.X the down first million from for administrative XXXX. We driven the $XX.X initiatives affiliate by recruitment was than quarter the second legal by from down Net of quarter expenses of spending. movie approximately driven $X by and pacing spend with political, is project.

from driven savings for in expenses compensation expense offset revenue by fees, $X.X the XX.X%, year-over-year. music bad TV operating professional increased in programming million, Operating expenses were general television to approximately program. were increase XX%, by Radio saved marketing XX% were the approximately to and related discretionary the XX.X%, expense development The million. lower also gaming was expenses relating down due predominantly program digital expenses were driven were in in employee expenses mainly cable opportunity. support mainly program corporate and marketing TV down $X.X operating professional reversal $X.X expenses due potential selling, expenses, technical other of and content our primarily primarily and and expense. corporate by talent expenses We These media by XX.X%. sales segment. employee in at of gaming expenses of lower debt down campaigns employee were approximately revenues. an The lower up the up increase due SG&A marketing radio by and and Richmond a up to and expenses amortization and driven promote royalties. approximately compensation reduced eliminations activities, expense in segment an decreased the to by Programming increase and to promotions. Cable Radio were $X.X million favorable variable to increased similar Reach to content spend by increase corporate administrative Operating X.X% lower One. The in segment variable fees to were business related the X.X%, down compensation by up activities. line million

$XX.X Interest a Consolidated consolidated quarter, net million, a broadcast decrease Capital expense first of a approximately were last of or EBITDA X.X%. quarter operating compared was $XX.X company of to of adjusted was the was to quarter. compared taxes loss share -- and for income approximately and XX.X% $XXX,XXX million, decrease a For $XX.X $X.XX digital quarter year-to-year. of The from approximately $X.X income made XXXX. quarter to $XX $XX.X million the million the for expenditures $XX,XXX million was million the received first compared company year. $X.XX $XX.X cash The period interest per approximately extending approximately payments approximately benefit share the to was for on income taxes same debt in per cash $XX,XXX. its in the of approximately rounds refund first $X,XXX, zero in the million XXXX. approximately Net which of

due of on previously hand February successfully million XX, X.XXX% all debt, on we senior rate company's of XXXX. cash X, at As secured existing $XXX notes and January of the a announced refinanced XXXX,

As to that, debt a million LTM million. X.XX of times. was ratio reported will XXXX, ending cash net and total given Alfred. was EBITDA, back hand net adjusted total The debt I was gross $XXX.X And with of $XX.X million leverage of approximately compared million March XX, $XXX unrestricted $XXX.X to

Alfred Liggins

to for General Procter & I spend advertising know media Thank increase attention, agencies pledges much wanted don't and week, holding investment have But, call to press. media advertising of made significant to in to And increase everyone's committed Corporations with Motors Interpublic positive their is you've seen very advertising African-American Group companies. M it you, in now within specifically. a media. very, and there Peter. like their African-American owned Gamble I also if the African-American large ad group last advertising have owned to owned the very companies the also, climate

field are greatly one-time, lot media I benefit that year. the the thought it desire relates of from change. momentum, create that we would about whether investment. that larger to positive are signs of playing real aftermath of certainly of got the And in say will Matter or really last commitments protest a equitable systemic to a a got the sustainable questions pointing or was all I and Black and sign create was Floyd George We Lives murder over whether These not, that, it momentum to a that. momentum was whether continued to more started movement as tailwinds it

level Group holding Interpublic announcements week. I've companies. high in within positive. corporations advertising the conversations and been these very agency M The and involved with these that's last the came So all

So, top. out. and I'm intent all And the well commitment starts aware they're it of that the laying the at

multicultural when big owned to that diverse media that's they a CEOs statement. is make to decide commitment this that So, want and a media, then the

want opportunity Richmond, I about Virginia to our Casino and Secondly, talk initiative.

It Cordish into a since and line. further over with off million that trying a mentioned experience a responded now six with of say made we to lot our partnership It RFP in resort and of spending on this I is city. us. XX. we're Richmond Peninsula to the One just arena great time based the finish Started initiative to to to gaming MGM could in As at on you Entertainment had down I the companies two we And of our Companies. build before, city since National win was investment $XXX casino there's the of different an expand such desire it Urban get guess, with Harbor. the to the two Urban proposal a One us, February

currently have We discussions shot. the But we with XX-XX in are a state.

party. is So the other

However, got proposals. very we've different

area competing The the support has from widespread in has Cordish minority a and the Richmond bring. that's that is trendy would the that the that proposal in and actually amenities doesn't population. really South Addition of surround the called, project that bar project on of in sponsored Our exact populations Richmond an North side it impact because our restaurant largely neighborhoods industrial opposite Companies area is by Scott's neighborhoods

ultimately, spark come development. city So the sees to it's to down where further itself, economic wanting to going

a May of Richmond be So put June? the chase by et costs the we those we'll the that have and -- to approve is our on the -- at where We end the architecture your go the casino RFP, first the citizens resort Then you'll should by additional call costs. on something that this on know $X.X more stay see to will a architecture you There But of it P&L. advertising, hear will designs which then printing whether November, is chosen come approved for running be together renderings cetera. in to casino are had put through should to or show will get of then the We of time at to we to tuned location. have costs referendum chosen ballot of vote the Council for initial from costs end the what that lobbyists, project our City a be location and that. million not will month. referendum what happen to flowing If we'll beginning

can could videos or be, up what if onecasinoresort.com. there'll There's exciting go we lots If so. onecasinoresort.com. we're to there. about to our updates half that, far. this chase estimating we get win, we're pretty That's So million planning be but you to $X And information. And cost win of get don't

that would enough As this opportunity and another operations. size before, lucky or of could our particular I've be we be revenue cable chosen, stream the should television radio group create said EBITDA to rival our

significant Q&A So, please? the be opportunity company. would to line for we the pretty a Operator, diversification for can go

Operator

Vance. Please have Leeman do from from we ahead. And Eaton go a Instructions] [Operator Rafe Sure. question

Rafe Leeman

It's Hi. Rafe. Thanks.

So up quarter you for, great. pacings mentioned QX. on I sounds in the guess, XX% That

Is in than kind what for others people pacings, QX actually space, your the better is doing than normalized -- and continuing? that's that coming you'll the had of being in than that is better return? little that the then again numbers think actual delay occur that of and a Do where bit the said a ended are up you'll of numbers will pacings? better pacings. actual things still Or do terms later like in you kind You of even were the there's and

Alfred Liggins

was It XX% will But, quarter is the and to hit, particularly we Like, X%, the at during XX%, a and we'll see, you February dollars as when pace predict and then then but Certainly January QX sold numbers to things feels you our on when really, breakneck late turn, close national right? really the plus to then -- days. economy, the well. and facing -- and look so get was businesses, are to So, during suspect there speed. throughout the out. slow things normalization started And down start month was harder I then right? Media, think improve problems you pandemic, month seeing ugly and down March like improvement Because Reach as that that see robust was inventory were and closer booking have and I the improving, they it. timing the of throughout these much quarter. is to canceling started

And therefore, thing you're a I that. position good is in where are rates a from seeing that guess rising, sense. we're so And inflation

Local You're robust as absolutely also those digital is TV. seeing more and seeing demand In demand than platforms, not inventory. but you're as radio in pretty other improving. strong it's

XX I do we you're Peter? QX. know answer to I asking better for we're your have going question is, plus do the guess, to So forecast, do if we don't a think than

Peter Thompson

your that And do. about XX%, slightly dramatically just And we is in so. I than it for April pacings, as that quote not think at -- up, better up. I look XX% We but finished out it's under the called

Alfred Liggins

Yes.

Peter Thompson

calling mid-XXs. up were about about -- if June's And we pacing, it up we it's we'd XX%. XX%. May’s now, pacing say

Alfred Liggins

Mid-XXs, yes.

So, -- for we we too be a And XXXX QX and political. on and We Radio over last XX we that tremendous budget our got about somewhere about yes, we're year revenue or comfortable when back We've target at our whether performance. -- would the XXXX levels. right we good But tick I we feel are to say feel not that. so not to It's that. budgeted budgeted that early and to business, because us be to for was of now, pretty over-perform between mark. for say did it. XXXX, going

So, about Peter talking earlier. and I were it

we QX, just big us. can hit right? think But still to be feeling metric such I along for think get to was described -- we because it that you. I a the to we're going we And good quarter until tracking then that

Peter Thompson

the our area moment point a at is then And is Radio from the strongest out thing to growth obviously standpoint. Yes. digital other

our talk including into segment. we when digital in business report all When the advertising, pull so out Radio we're business and that. about that, digital digital break the the digital we down And the we in pacings,

number XX talking digital just plus includes we're the thing, about be same that So, to performance. the careful Radio our

Rafe Leeman

events the Okay. timing looking Thanks. sort That's on update that? what of And like is any on helpful. how --

Alfred Liggins

or our old We're is forgot resume I stadium Atlanta in -- now events. got the it Braves Atlanta doing XX,XXX It name. two we're It's be holds see distanced Birthday scheduled to and that up biggest XX,XXX it I that to the is it in the mean could business XX,XXX people, One profitable. a big June. actually we event But Bash think, Georgia -- for setting people. for year facility. I quite socially state model this be

as that have driver And are from that's our So reduced right plans significant benchmark? for -- then And it profit not would be expectations should capacity. now off set with happening the year. profit think all down continue be biggest to economy far cruise but keep this Reach for as historical vaccinations we happening levels, Media go. to QX. on to this return coming you'll So well that we that a is starting of at And happening and as long to scheduled Fantastic Voyage at hit us But not cases our I And in and see keep events. to of time open it. keeps events are point then two at

Rafe Leeman

more out. maybe And terrific. just Terrific, I'll jump then and I do one could if

financing of Just any in the on Richmond. terms update

pretty been not can might any a main I clear $XX million of this that checkout much call there? updates you that it the so think but to you've common program and on write-up silo, equity I last guess be everyone’s

Alfred Liggins

around. Yeah. we're which from to moves numbers project. city, up moving in Look XX because us the that local it's robust we've the demand signed couple it's reason the And a almost around got of moving in alongside around is things, investors this But project. the negotiating invest have with

sell up the idea concrete who to right? These at is are giving XX% Richmond we people so plan, off with And us actually least of live a cetera. that et numbers this in signed people real

numbers go And reduce to our whatever is that to are. helpful so

Our $XX original million. equity commitment was

million put it some that So minus pledged equity personal would $XX I commitment well. the their into X.X% money XX%. as have been for to

excited refi from we the the look think at to have could we The And could ways raise use about that go number was I local it. pandemic and could were to smarter finance capital. We off. the that as very helpful got, tools so alternative investment to up. lucky gotten We standpoint

classes used used we Class the least of at We've ATM for place. both Class As two in of haven't have Ds. one programs them We the shares

you deleveraging. say conscious finance this our capital where we we is That's it would needs also all super that continued avail the leverage at able ourselves focus We important. opportunities think we not to pandemic to and of and be it's realize goal will I to before. seen So haven't of Even our though about very level be. to place a current of given that No. how that be

not we're And so anything that do thin. us stretches going too to

is I chosen, outside of be were still going happen local So to be of to we're I when we we that. If effort other a because important should capital fruition. other also our the think very that respond losing at in Deleveraging investors what's manner look raise not accretive know lucky outside will don't in ways and enough terms a out will comes to event, a of too. sight it although would us but for selling it equity and -- to securities, be positive significantly they it to taking

Just when of and we'll license value in significant in that build itself.

Rafe Leeman

so Thanks much. Terrific.

Operator

from the is Instructions] Jefferies. [Operator line next go Morgan. of Todd ahead. Our And question from he’s Please

Todd Morgan

had that I your all to is mean little And the for first bit very the usual. on given comments a But point? achievability it start about the year for that you. in broadly, you're the at of said of about the this the thoughts guess as and a given the follow-ups thank all that to here color operating thanks bit I know positive Great, I side. quarter two broader better EBITDA you I just full fourth I the of say would think past? strong… feeling year is fair your tougher comp. talked a little about Just you the

Alfred Liggins

XXX%.

was big knew we to knew If guidance, going refi. a road give actually and non-political and didn't for us cetera. was our show going -- you We QX et official be we be QX this and but was year remember we to our did

is in we in terms And guidance EBITDA, of soft zip code neighborhood kind so effect. of expressed, what still whispered

roll going referring of But our will if come we're Now, you're I'll if win will saying, probably and to. bogey. by that that probably do, caveat it we into couple we that the number off to a hit bucks that have don't one-time we'll the Richmond probably license, be of over investment a of million

Todd Cranston

this anticipated? thought know year kind the cost rise that this also, of And programming the how you helpful. with on along That's any previously? of as helpful. is with restarting is that called change TV that that's Is from kind expectations moving side, -- really previously production out Is what environment? you Or there in could levels that. I you No unfolding,

Alfred Liggins

Jody, you idea him spends this to year? going increased what the give of to programming is be want an

Jody Drewer

increase I a have last hours. deliver our and certain based don't expecting in what XX% number affiliates year. back to in being just or over But we amortization yeah, commitments our program are of making on, promises production to total was about our a

Todd Cranston

what that's … with it But before kind of thought track there's -- sounds you really like, on

Jody Drewer

in words, … other yeah.

Todd Cranston

Yeah.

quarter much. okay. thank that’s No good perfect. No Okay, you very

Jody Drewer

Thank you.

Operator

Investment. from Please you. is The from ahead. go Thank next question Wang Patrick Voya

Patrick Wang

morning. Congratulations What's Thank you for so this fours? other Can city the from the about Good the what onto the Yeah. you cancel just two, you regarding six talk bidding. on project? questions. the eliminate consideration from

Alfred Liggins

Yeah.

a got -- Not mean, that reason. it them of was of all look, I think the same other I for eliminated the number eliminated factors four.

the and location. think experience was one business their Tribe of essentially of street a scope one a level was Indian site third second that million in or across project be size proposed from one. and would is project a our I Pamunkey $XXX control plan belief

they on and eliminated, didn't pushback. They the state they the operator. with the project lowest the known of to to the product. a that location got who sort proposal on think also And got The feels some have city know to because and weren't develop eliminated a their quality Gold for that it's will because a I win it's down because us Bally's now, want And eliminated, selection because didn't different various create, in in folks So also highest to teamed location site. organizations governmental of existing think be also about had it. that neighborhood of the referendum, issues and they from I where to Cordish get and what so committee value. they put terms basically an contract I with site degree, Bally's had for ones. ability on citizens about going approvals gaming control, got actually it, and option backup boat really the city Nugget

going are go those think I that the remaining the so to economics be the are going kind And to are to to in consideration, city. addition of what

… So.

Patrick Wang

Right.

In terms have land? former real-estate that's you the of are land? that? to Or actually the the contract you underlying Morris Philip a site. is or buy a Do going lease Or

Alfred Liggins

Yeah.

buy …. have option We an to it.

Patrick Wang

you Do decide it?

Alfred Liggins

…We have an option to buy it.

Patrick Wang

Okay. And the June that's timing around that council? you to said is just city May Is corner. so the

Alfred Liggins

we'll next in I weeks. suspect, Honestly, if, or we've know lost won the two

Patrick Wang

Okay, great.

one, you you your do If divest conflict Harbor, interest? for have interest to MGN minority

Alfred Liggins

do not. We No.

Patrick Wang

Yeah.

great. Okay,

And radio question local. Another mix minority regarding local? would now the owned too? right your you the about more traditionally component increased -- that interest And advertisers national the what's increase advertising. for It's between Would between talked from national advertising media. and is its much how that

Alfred Liggins

now? XX% business national? that is Yeah, it Peter? look, Is at higher than XX% radio now about is Or it local our

Peter Thompson

around It's XX.

Alfred Liggins

XX. It's around

Alfred Liggins

around It's XX.

Peter Thompson

And on to political national. the depends it have Obviously, tend in a sell year more we or political non-political.

Alfred Liggins

to to helpful us. you be making what out and that have for us people target sum people been at are can't I given ad just and depends clients given much only you for percentage want these It's but go, continuing good news time. is, each it's look leaves has And they total Yes. spend percentage going Yes. how tell that on of these that's right? can any I helpful. to right? That how commitments where many agencies it targets tell the They've help,

Patrick Wang

joining about Okay. the Have platform you just KAKC some recently? of media competitors because talked considered the

Alfred Liggins

of We're part it. already

Patrick Wang

Okay.

Alfred Liggins

in is radio national de KAKC only the the facto Yes. Yes. rep basically business.

Patrick Wang

Right. under script. Right? That's

Alfred Liggins

sorry? I'm

Patrick Wang

that is -- under script? That's by owned

Alfred Liggins

by is iHeart. No. KAKC owned

Patrick Wang

Okay.

about the on KAKC thinking I'm TV TV side. Okay. the

Okay.

Alfred Liggins

Yes.

You're television KAKC the different no, networks, thinking about company.

Patrick Wang

Yes. program. the Last Got ATM the question is you. regarding

You up. A been has the used said

quarter have the I So million that… shares you $X.X or the during think

Alfred Liggins

used. didn't up we've I was said it. used I used we’ve said, I it say,

a also only D the still availed for But outstanding yet. that are UONEK sure up have shares not it. as stood I'm we capacity of Class we we've ourselves the issued. have that on As' -- we shares of

Patrick Wang

size the ATM? D What's of that

Alfred Liggins

it or Is XX? XX

Peter Thompson

we're incremental It's the to but up a pros XX, shelf XX, is putting XX.

Alfred Liggins

Yes.

So pros shelf but that $XX our we'll is up we going to be million registration million. a have for $XX register

Patrick Wang

shares dollar That's right? not Okay.

Alfred Liggins

That's -- dollar amount. no, that's

Patrick Wang

amount. dollar That's

on Okay. have under And how you left much A?

Peter Thompson

think we about XX, I'd in. have but of I got top to head my check double

have second significant under we capacity million. So still the $XX

Patrick Wang

much. very Okay. Thank you

Peter Thompson

Thank you.

Operator

next question Please from is ahead. Brogadir go our Ben Odeon. from And

Ben Brogadir

question. trying Hey, guys to for accretion just you and taking Richmond, the for guys. purchase thank my price On understand you potential

So it -- kind and of Radio all would be to could things well things EBITDA. contributor you're TV go saying, equal an your all if

million be thinking that million don't $XXX gaming it I other the and So to seems that know call purchase does also between And additional? $XXX quite $XXX way? the a transactions. I the would at $XXX million compared cheap It price. right Am about include million Or land?

Alfred Liggins

soft interest land too. costs and else includes million $XXX everything includes some everything includes like actually the Actually

that is better, right? was all going But is not Like actually caveat was the some million $XXX off opportunity a protect How to And right? been and of I'm EBITDA also better. and much also whatever that inform drill and charge going That's layer then to going based in million you And I state number accretive that number that market the think the whatever in wrong flow a right? So, hire et been gaming hundred about they've miss that looking else So you're knowledge little is a perspective now give Xs at, you're wrong, down for would math EBITDA far size by kind But and licenses, MGM we to our then gaming agreement, how all state spend you them, that over expense and city And rate business you EBITDA And can National Then we additional the done commitments. Springfield of will going a we're of for it us some up come what what right And think said right the on and the run stuff actually and willing to an us be tax yes, layer of do et be be that it When we're going was right an I local to to they've of worse. that low downside. this target. think, yes, downside, Harbor the community right? of then going on of is spits this revenue math in mark, casinos couple or studies that the number. terms $XXX the but cetera. is first has what's contingent population, this the of to at because the sort then the kind think studies cetera has saw Xs an to overlay revenue et better, to have out on structure an they we'll host the And did in going they financial structure, still how gaming estimate company in bid strong we do very where look operating When partner project our you. income yeah, which market all market be could you was charge upon we do be? given the in plan, be and and you household your gaming missed cash it make a capitalize the And gaming revenue company. math the a hires of will what it, to mean, that some cetera. But now. EBITDA. that's dollars base, to right? that's that's set they be, it -- risk study from million. deep people

Ben Brogadir

trying of then Got income program it. fixed guys ATM and current on Appreciate environment think mean, when at I'm -- a all trading share comparing are guess equity. follow-up a cheap. process Obviously, understand I curious mean diluting I'm liquidity your you to dilutive of these when is capital $X.XX to or that rate the instruments. bolstering I about guys behind thought I just And context. And it's for that to of I guess kind raising just equity It's what's it's you kind type projects. the running. to the you the that. that -- are of equity kind guys

Alfred Liggins

we knew still think too times. too sure, I when much we were leverage levered much for question. leverage. a had Look good That's we I have at X.X

we're the it's too that think much bought Now out shares lot a of back lower still turn should of leverage down. pandemic, We a go years. over and I a coming

at rate company order than right? half company was of We I half that think to It said $X, an probably $X more projects now of delever on at we to always fund As the stock were we $X.XX. think Ds. that the seller bought probably of in We build had We value. at average potentially stock back the level the these levels. a of higher a could were or seller

that shares in how do. for seller high is which still terms Yeah. don't it's the we I in if living leverage. bought a we And company now, seller were leverage, Xs. at think been you what us back a too you that's have and think I about this haven't the trade of much the in but should think Xs I We past. Xs And given for where the positive a be in

my so to probably we the the own myself and mother -- and family, close how about So it. XX% think And shares. of that's Yeah.

it's I So where important for and hit more biggest of range it's think we're comfortable the company. dilution. sustainable really taking the health a -- long-term on leverage into getting the the is But you're

how so think I it. about And that's

Peter Thompson

in previous checked out of the jumping $XX just for gentleman's ATM the I on the $XX.X just Class million question saying million. on available A And the

room substantial there. still So

Ben Brogadir

sense. and makes context color that all Appreciate

of your gaming how M&A Obviously, it kind radio you Just on are Thanks be Do of front. you selective portfolio as landscape? kind guys have do When last TV much. M&A where want on about asset of kind initiative. you view for extremely busy you current broadcasting the And guys your one kind think the that me. stands some the of kind assets done and stations think it is today? optimization of you very you to

Alfred Liggins

I is no. that answer think the

to just stable to great. that scale formats. lot Entercom got more And more operate ultimately of a and more a iHeart already St. multiple you've also the been be business you're of markets shares it's did think is becoming scale, we radio the The particularly and with assets larger when get Charlotte, larger in in and against combined a larger competing it's business should and Entercom I get in our we in get with out swap platform Louis Cumulus.

we know a do because you to now sell I and Nobody to soon now do on And went EBITDA what to I've EBITDA right company I to something that as absolutely positioned said there should assets it You're real doing bounce COVID. on is to don't now nobody last anything to radio. the idea be now and something. aren't not they're worth. we think right? they million should because now in that's coming that I million platforms consolidation. $XXX to equilibrium, before. just think I or think focused back million mean, $XXX I think million wants deal. year. best be to central do what through their they one And probably well that's nobody the So horizon $XX because But has And their of happen of going think used what it wants don't nobody as of off like is, $XXX D-reg are right? the we down in nobody is our radio focused somewhere wants why get million that, Cumulus buy the $XXX wants that EBITDA that any on to between

Ben Brogadir

Appreciate sneak sense. that. I'm one Makes going in to more.

number have of kind leverage. Do a mentioned you in You there? mind target

Alfred Liggins

the Yes. in Something Xs.

Ben Brogadir

the the Great. Thank in you contacts Appreciate guys. all answering questions.

Operator

next And Legal & from Vandry question you. from Thank is Umesh the General.

Unidentified Analyst

Hi, guys. Thanks for the taking question.

Just of on that consolidator? assets? be this a be in the you Or you seller last of sort would quick you'd video the imply follow-up consolidation the more Did one.

Alfred Liggins

we either to on willing Radio be other value COVID, it assets made created good said the an that I actually have question. Quite had sense. That's like to I are -- a and frankly always than that stabilized. prior side of business. transaction a

Entercom was I need to you I said Charlotte -- leave because deal Charlotte. we either interesting either. was leave to like or and I'll And like Which do the need so, is

were actually X.X in they stations then from buy Charlotte years backed to fact ago away it. going and they our In

So we ended up buying them.

So, running there of to radio business, I'm always left business. willing stations it stations run people to side know to a I had who the are how mind the the If either not don't radio operators be radio transaction. like of on know handicap lot

going able it, would into that the I surviving wouldn't had we that to -- business. business. it because if So the management I willing the surviving these the and we radio helping hadn't Entercom, the able us be not into But the it anything business us to do way. either given have be helped have neither of to know to I get I'm look the absolutely is to has space. current the been get would solution business. say The get business I'm entity but The landscape see We been substance And iHeart's gaming businesses. actually radio because happy to where for I'm We be to that probably entity. just into like happy be if the to again don't at business for radio other cable handicap

we for markets value, exiting we altogether the and the opportunities or So have were we we -- if that that upside. there leave us swap we're made sense but business intention a creating business if there no lot have think to of created around opportunity are of because

the of are from to that order sense? then seller we in other to faster. grow the or a which value delever -- a use create attention deploy we're want don't standpoint. I So anybody leaving seller make an can be that assets to into we Does We would of swapper can we business that give attention the or areas a

Unidentified Analyst

That alluded ownership sort because that transactions the buying of a wholesale role couple trend? bit seems think is that's market obviously of little by stations swapping or given to just makes a that sense. And market large seems of selling it like I difficult more it more like like the seems

Alfred Liggins

full radio somebody companies. are there's the don't Ultimately up I mean buyers no I getting -- materializing major time think we're like go really there are who company I it I radio -- out was just But a big matching yet. significant mean didn't ours, I synergies if put happened. who think mean there are shareholder I wants for markets out. for a just ultimately for process a sale materialize. and and I in think getting at anybody bought company to Townsquare that Yes. one not there today where mean, up buy

Dallas, So, Washington significant savings. D.C. cost Cincinnati, Indianapolis, there's

-- and a look seven company If in we in synergies a overlap revenue that Cumulus and you the at like there's corporate us another cost I a markets lot between of think there.

I think take somebody to of needs that advantage that.

Unidentified Analyst

on asked. a that quick right. helpful. previous That's question was And follow-up just your All

I do I so EBITDA we roadshow you I a like stand the seems to from cash are should $XXX of plan it are what what think amount that think terms in still the a with you indication you to of think potential you can million. With assuming debt? see I'm I be or think balance you you Are of in sort year seems number sort you that number, about flow. mean EBITDA, this invest you How buy that cash? like on gave for of pretty around that? generating going of free soft the -- would to saying. healthy sheet sort full in do casino back the like

Peter Thompson

Yes.

And cash that think not $XX bad give it's the much think that's quantum for a in to cash Richmond of this or so on to flow the on keep on flow investment bit the confidence a year's also we XX% And number the a for other don't that invest for around and probably million we'll take I year. sheet could opportunities. is now free note. we project. think If So prepay it not year ability about a the roughly up I the that balance have to we look

$XXX prepay $XX.X on to we at the million up million note. So could

that. at look So we will

capital liquidity the robust. the come after we the then that. and where our I be see and on at We position of Richmond out end decision allocation your will year make extremely think point to But appropriate will cash

Unidentified Analyst

that sort of the earlier sort cash does comment sort you but group take how sort -- So that's flow restricted free So does philosophy right? but entity of to reduce want jive and your invest all to of that in you leverages that of an the how the and leverage, work? outside with then

Alfred Liggins

gaming the investments and was When talked and when the we carve-out heard we about math always it enough opportunities would about company talked be got Richmond the for be our doing. chosen be -- about we and the earlier a Richmond. we gaming refi, marketed fortunate specific and that you to works, And math. right? gentleman It's Well, we additional the it plan. be transaction asked should worth a And he accretive to would great

equity also we put do only debt. you to going to equity would to invested the move and you probably could the down so in If And we'll year’s over cash down if securities issue company's issue flow to in going Hopefully, have its on million well. they pay value Richmond and cash could even debt. $XX improve And opt the company's take a and net-net you're as -- lower our left free Richmond. risk debt you you're some pay more then And well. improve as

how we'll delever if otherwise. win we So and pay down it don't right? we kind than at we Richmond that's of even debt so look And more might

theories we do. I opportunity Richmond if think the wouldn't hand-in-hand. was It So significant hand-in-hand think a work work but didn't we

Unidentified Analyst

think it's exercise of or indicated to XXXX like exercisable I sort I that like that. think. mean think And think that this you you in it. plan then Got I option put I I XXXX becomes

Alfred Liggins

You are option? talking about MGM put

Unidentified Analyst

Yes.

Alfred Liggins

is, exercisable put every just year. EBITDA of year. at worth and every that's that's And this to probably times north highest -- it's exercisable way delever. to it's which opportunity year million and always is its Yes. value stake we another whatever It's maximum we their but It's at think our the exercisable MGM yes have $XX its at X

Peter Thompson

Yes.

X baked the times then with EBITDA an of this no annual at is the And to So it's adjustments. year fully multiple evergreen. sheet end balance

on QX from So we get that to here chance the every do out.

Unidentified Analyst

this what a thinking? there that to you is plan year? So monetize are Or

Alfred Liggins

haven't XXX% We even at probably wouldn't about I capacity. monetize year up not but this still dealing they're because -- it, with they're talked

I COVID still would the on back it effects stable. be EBITDA this wouldn't with year. but monetize Plus they're business. I to don't So get this their dealing $XXX year. million wrong, their think could it's I

or And for so something cash some the you other need I monetize it whether that's delevering think you value-creating when transaction.

Unidentified Analyst

Okay. Great. Thank you very much.

Alfred Liggins

Operator, got one you. Thank last we've time question. for

Operator

this in further up. are actually And no time. I'm there One queue Leeman, moment please. sorry, at questions Mr. just queued

Rafe Leeman

popped just I Sorry, up.

Alfred Liggins

Sure.

one. last one said we As

Rafe Leeman

Just can with lack betting whether or see success talk and -- or all of sports your not by potential a you about bit the as at revenue Richmond? little opportunity you that impacted

Alfred Liggins

-- the what again that now? Say

Rafe Leeman

I generally ad your strong. mean, wondering Your about opportunity. advertising sports categories doing betting I'm

Alfred Liggins

something level have the we got station. sports not of sports have we in it's -- betting as part there traded Charlotte station any up one Richmond. run one don't And companies we of seen did the sports Washington, Entercom swap. that as that true, but had down We one in But picked just in also we don't we longer. We we've had a we where actually because advertising have activity not other

of does. the competitors One

sports sports different because up very that. that betting plays from benefiting we'll license do I been the it haven't we with view company win will betting to along we So a pick able bricks-and-mortar how the license. Richmond, a and in think if have we're on

and company an probably just advertising and betting can sports our who et cetera, standpoint think in cetera. start will from brand but and not et an it participates operator how we from about standpoint, the So partner with to

Rafe Leeman

you. Perfect. Thank

Alfred Liggins

All you right. Operator, and thank to We'll everybody next talk quarter. you much thank very you.

reach to always As to out free feel us directly.

Operator

teleconference our conclude your does that gentlemen, AT&T for Thank conference and ladies And you you. for participation Thank and today. service. using for

now You may disconnect.

Urban One (UONE) 12 May 212021 Q1 Earnings call transcript