Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to Urban One's 2022 Year-end Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

During this conference call, Urban One will be sharing with you certain projections and 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. information XX/XX/XXXX. present will call as of This Please update the any Urban One presentation. duty to disclaims any forward-looking note that statements made in

by Eastern financial or reconciled to In discuss calling the will may be either is during its One Urban direct will code of XXXXXXX. of GAAP, dial corporate XXX-XXX-XXXX company's These Access seven One's XX:XX measures will this course its available for to non-GAAP recordings call after replay on the of conference A performance. XX/XX/XXXX. at The may call release, be press be from website call this about www.urbanX.com. access at Urban this available website made the the and are within in which relied until can will of US. may or measures the be callers www.urbanX.com. live available on The Time, No website XX:XX replay may be access Callers PM or International the conference XXX-XXX-XXXX. PM, be talking found other replay audio copies call upon. the in call. days replay call, some XX/XX/XXXX, on a replay also the authorized

the of Financial turn Officer. over Urban now by call Liggins, D. Officer C. Chief Thompson, I'll One, to joined Chief Executive Alfred Peter who is

Alfred C. Liggins

Financial Officer the joining the One also very you is company And TV have Jody operator. for much, is Thank Chief us the us. who we of Simpson, and, Drewer, with Counsel General who Kris also

indicated was on right we year-end But and that happy the ended of landed. EBITDA, top outcome for you that's where which our of a great million leverages of X us middle unexpected times, to report the lengthy bearing we was expected of and audit. that, in guidance below Thank was we're we've our with Finally, report $XXX.X goal our an year-end as with as us through earnings everyone that year got the year.

Peter. Couple of before highlights to give it over to things, just you I turn

seen monetized know press National probably we the Harbor in You release, also MGM and our investment.

think the that being a I in over investment end ended We ended did fantastic up project. cash invested then It time investment million us. And $XXX million. million We the equity April. $XX out of in the our that pulling in we held for of $XX length we in is worth dividends it. up that

it's investment. So roughly probably money our X.X times

That because that for did XXXX Why watermark we it we it? expected. be. a It had was ahead performance well high did the We was property. their we thought it number not one, do was to expected where

also that that and know Things the felt a don't other forward. probably things environment particularly sure. better for not than number going that likely given macroeconomic We to that it going do We that of calculus. But happen. can our were we was was

million, that other is things. that the earning $XX $XXX capital it's of $XXX X.X% do on we about were just $X.X a return value better is thing third we tremendous million of that it, The that, but investing million, which And approximately dividends, the since return. could on than X.X% return on a in X.X% million, thought on we

better, money. with And that not on the getting even we we're where place was, first though we're X% started doing Treasuries about US

uncertain hadn't been a may coming debt sitting need where economic hoping it's right that we're minute. ton filed the that -- I debt now haven't haven’t now which a the statements, of a number we going got our we've up in through as in particularly things And financial time, an -- we that of buybacks, knows? and continued we since on current checked cash we're there's holding cash, we treasuries income actually not moderates, not matter right like a who but uncertainty live recession, of bunch feels fact deploy a So maybe but to be is up giving of whether billing to

are XX.X%. like yielding XX% north our last The XX%, of -- checked, I bonds

that continuing to X.X% get better just hold a a investment even the So than and is equity return.

budget item. negotiators We are process We've there blocked to or casino running assurances Richmond assurances, believe high referendum some the referendum the Churchill another move gearing Virginia got our referendum. that up for to likelihood public in potentially run to an our as this at a referendum Downs. that be will casino new exceptionally we We non-negotiable in project with that of by being some that Richmond a Senate partner Petersburg is

that was the press Virginia. in them, recently news in For

November So we've start September XXnd, we're X. at XXXX. City for the it vote to And Council there. the got Court the out, Early to some then now Lottery we'll would referendum September get would day be has voted Circuit and Virginia go scheduled. election real XX, approval. support Friday,

cash So we'll order to need the referendum, in if that. with successful obviously we're fund

fifty-fifty them a the is Although different company. CEO is The this. time. equity with are capitalized point We great, the provider luckier we well It's in not investment in be us sole as equity in a this Churchill and now, at a Richmond partnership very to couldn't partner. Downs. have engaged They're

announced recently, from the radio Media to I -- few say of Cox months stations don't acquisition Group. four Houston recently also ago, We a want

million. We -- $XX.X for expect

for also because have of $XX.X to two be that limit the stations million. we'll own can't agreements signed a We over total spin-off we

$XX to we're acquisition about be and some that going So for change. into million

we it. We flow that million into at expect to cash equate that that, acquisition from as will $X least step

that So acquire that we a factor money were you of amount we got for in that, once the attractive spins. the able to multiple very

that acquisitions Xs companies multiple. now of of a number that like of potential in are are if there radio you kind think terms radio are the out that there trading radio also other an We the in right -- -- EBITDA

about you're you that close if to investment. our were multiple, a MGM radio so we the buy also getting at on X.X% is talking which times And XX% a were return, better than to X.X

are return. better there net forward, that will we number that things that going we So us can of a a think ultimately do

XX%, paying whether it's Xs in it's you getting whether a casino at net that XX%, down and radio guys in the sell is going if investing and that a the seen Media Paramount Richmond So have probably to Group, one the is our There referendum business buying process BET you on BET the looking in another. press which where includes VHX. is debt

we name Still number engaged. we're we doing Our know in Don't but are process, land, that on other diligence but a but never where parties. -- of it. not involved with is mentioned, our

One could potentially of create assets assets that with a TV value. and CLEO We think lot that we have exceptionally complementary the

why However, remain of think one business that well. the standpoint. the acquisition pay-TV from disciplined we sense an We're scale has, the aware reasons ecosystem of in this could finding that a we as make lot fully challenges of

on our doing we're engaged and that. work So staying

XXXX guidance.

come in expecting are to pre-pandemic if EBITDA XXXX XXXX than better EBITDA, ex-MGM go We you our dividends.

about So that's our that. We feel to being good able goal. pretty achieve

continue good pass. should We’re it year. And the be to X.X-ish times, pretty call I an that by macroeconomic that we'd below thinking end also given come outcome backdrop, think X about to leverage will the of the

Peter Thompson the that, going I numbers. over to go it am with specifically more turn So to to into

Peter D. Thompson

been about the inception an talk deal, let enter at carrying we restatement. filing before the numbers, as bit And that Alfred. of equity MGM in you, little a our we've Since that me cost. delayed the and Thank stake investment MGM the

once had we investment have the a exercisable, available that for should put option However, debt the we reclassified became security as sale.

is on carried it's that up how revalue should it technical the balance debt have a for we should then and change bucket, do available quarter So once and didn't that you sale, it end that every security in a we sheet. And really you that. in

I we've telling it our put done a knew worth. what was that. we obviously, investors worth, of decent but think crystallized when And And what it's the job

but some $XXX.X we valuation end an each the on the required to quarter and to have policies. multiple ASC the XXXX in hire also state time recognition specialists the XXX through. XXXX Separate contributing documentation value outside ours using to So around company's but for go which of this, work asset took known, appraise is revenue additional from to of delay was filing, methodologies,

a that big We resource accounting shop. technical to to internally. And that consultancy of do us a write the to required We're a bring not firm have didn't memoranda. in bunch

had we finally, what's but And I all then controls, and And and been appraised all that. been go you as the additional we off, find both can was weren't other this increased work your investors as took signed accounts a us. worked many for company things there weeks write frustrating in result And meant that for of just of for the memos and to of of so investors. sufficient, and someone being had order deemed us get support. to patient to And accounts reliance been going people through the the patience testing I to as and on. it all to substantive And appreciate on I've speaking a year. we of try bearing of while years, which those with lack entries prior internal thank significantly and and you technical journal but many that keep of around had

million, guidance EBITDA up to year. adjusted $XX.X consolidated and in the with X.X% adjusted ‘XX. the Full was XX.X% revenue numbers million from The down up generated which $X.X Indianapolis the added cruise quarter, million, year was company's the was last which last year radio $XXX.X event net X.X% Turning Consolidated approximately was was themselves. year-over-year. the quarter in for in Reach the EBITDA quarter year-over-year. Fourth and million of absence consolidated acquisition there fourth $X line

helped market sales our the $X.X incremental sales Net and and Normalizing outperformed, were and corporate ad was According Miller net a that was XX.X%, and XX.X% the radio for X.X% same-station X%, basis, up basis. spending against political at XX.X% of XX.X% increased sales par with political a revenue we on also same-station down year-over-year minus segment were X.X%, the by to Kaplan excluding for ad market heavy those effort. revenue advertising. on our up two local national by on or up things, million

beverage, $X.X million prior the and financial, ad same-station healthcare excluding million category revenue, in Government in radio or revenue, digital, of year. was which We food excluding biggest was the our advertising entertainment political. to was up travel XX.X%, XX.X%, X.X% Services, up quarter. XX.X%, up was XXXX on for million radio and basis was same-station, X.X%. retail up quarter, $X.X and Radio auto in X% QX $X.X up down XX.X%, was up up were transportation net telecoms, a was recorded compared political public

X.X% X% QX is down currently excluding excluding pacing same-station a digital basis, on down political. or

Adjusted revenue fourth million down EBITDA was a million to $XX.X was basis, on Media Reach the prior last well holding event. we're $XX.X the So year, in in excluding year. million same-station compared for million, political. $X.X $X.X ex cruise from Net quarter

full increased Our adjusted to XX.X% year EBITDA by million] (ph). [$XX

to strong was revenues Digital to the team revenue. million by sales direct The at Adjusted for an increased XX.X% Reach the segment quarter year-over-year. the continued to EBITDA our Net and finish year, and political $XX.X fourth increased driven $XX.X year, up demand scale audiences in quarter by million black had million. midterm for exceptionally XX.X% $X.X for

combined Our had adjusted quarter, XX% business, Radio, and Reach for up the million of Digital year-over-year. segments, EBITDA $XX.X our audio saw QX

down AVU on video approximately revenue by a by support. increase $XXX,XXX a free our revenue with volume variance Cable recognized unfavorable during of rate million TV offset favorable offset rate $XXX,XXX net burn-off. favorable a X.X%. $X.X demand, $X.X was from advertising churn, of with down and X.X% $XX.X was being Cable increased Cable unfavorable $X.X million of million of the financial by TV timing We $X.X decrease million, Television revenue affiliate of of impact segment quarter, X.X%

$XX.X Nielsen as million million had Cable TV $XX.X measured subs. TV of subscribers at the to QX end and Nielsen, for QX, at million finished CLEO compared One by $XX.X

You're having us. hearing trouble

Okay.

I sound microphones heard We be moved turned the quality and better. is off the just around. Sorry, air the here Hopefully, conditioning poor. will that

cruise to fourth expenses, Operating QX impairments the returned income in Reach Harbor $XXX.X MGM this $XXX.X the million quarter in the which decreased approximately to XX% property depreciation, of prior event, million absence and for up We investment National by $X.X the year. of recorded our from XXXX. stake May million in excluding $X.X from were of quarter, Event stock-based million compensation, amortization, in due year. expenses the of approximately

and $X.X amortization million. content the non-cash Employment increased the and talent, decreased Indianapolis $X.X included by by increased including $X.X $X performance expenses in is including fees million. consulting About incentive superior by those Award CEO's services office expenses TV the million increased outside compensation organization the for compensation were across those million Cable and relation million expenses for to million, entertainment radio acquisition $X.X against decreased Travel, charge plan. and in by $X.X increased variable million. contract, and $X.X increased by of Employee Revenue totals. annual approximately

expenses revenue increases million. cluster the Indianapolis $X.X operating and Radio over to the such Expenses sales drove up adding $X rest by commissions of related of bonuses that million The were just increase. increase. as

expenses operating that expenses recur. Operating were million expenses Digital streaming million, XX.X%, $X.X were royalties, expenses cruise million down didn't due down $X.X some event. Cable flat, production TV music the years up content related by for which driven and by Reach segment million was content which the in by and $X $X.X variable to expense acquisition up and ad to Our amortization prior up up with write-downs traffic costs, was were which million. $X.X were except and marketing, predominantly in

and by recruiting a award was T&E, X.X%. bonuses TV legal compensation, variance non-cash million marketing. charge, in favorable were software was which third increases fees, segment license It fees, expenses by of Operating for down annual outside One performance the in party $X.X Corporate employee including the offset Elimination and employment

consolidated approximately was digital the million, an $XX.X income For operating quarter, increase of broadcast fourth and X.X%.

million net additional company repurchased repurchased approximately During quarter, today, approximately the of $XXX price down $XX of quarter in approximately notes million of balance was $XXX start the the resulting XXXX gross the XXXX. at gain an million notes average average in from bringing $X its to XXXX debt the a first million down $XX XXXX price An XX.X%, million. of retirement at of on XX.X%, of at total an the

now So we've debt. the million paid down $XXX of

on $XXX,XXX $XX.X Company for from non-cash recorded semiannual debt the approximately our notes, interest due and Philadelphia quarter, for approximately cash to quarter, of including Cincinnati, radio down Raleigh impairment on decreased accrued goodwill million licenses in payments broadcasting paydowns. fourth February paid $XX.X of the interest made was payment the retired X% million was ‘XX. also our the year in Xst, interest and to Houston expense the market A Interest market Dallas, last for balance. the and

shares to in $X.X for the Net taxes taxes $XXX,XXX of Company Provision was $X.X million $X.XX compared for income was approximately quarter. were Company fourth amount million. XXXX. $X.XX quarter the Capital common million or of stock share income million. for a paid amount approximately the D Class share the of $XX,XXX. in approximately $X.X or $X.X of cash expenditures approximately a repurchased XX,XXX

the unrestricted ‘XX, of a resulting XX, ending debt million. balance X.XX form gross December $XXX.X million, $XXX.X of LTM total debt As leverage for was to total times. reported $XXX ratio EBITDA, which total was of compared net million $XX.X The approximately adjusted acquisition, gives times. million, in was X.XX cash Indianapolis net Pro leverage of net

of on the its Company at company settlement. XXX% in received of time the issued the approximately $XXX.X XX/XX/XXXX, of LLC. closed XX/XX/XXXX, On sale we interest to million with of MGM On proceeds a put the respect the National Harbor, notice interest. put

XX/XX/XXXX, representing also year During National the million the company annual distribution ended to Harbor MGM the with from $X.X ‘XX. received fiscal company's respect quarter

and signed forma an X.XX million. to purchase Urban the will finally, proceeds, to balance in stations. early for the the agreement million company stations asset respective we'll approval, total including it ‘XX. comply was Media for leverage $X.X Pro or EBITDA approximately of cluster. LTM quarter of million. times, to the with and CMG radio with second is operate receipts -- One stake to will put, FCC the we MGM close announced adjusted of the until is regulations. Transaction from On the the Cox late divest third today net MGM our had continue that MGM in MGM And ownership with either and time, cash to cash And two XX/XX/XXXX, then excluding FCC anticipated is purchase our Houston subject quarter $XXX current $XXX.X

will And that, I Alfred. to hand with back

Alfred C. Liggins

I'd please. for the Great. to Operator, like line open up Thank Q&A, you.

Operator

we We line. Deutsche your will Watts moment with line open while Bank. Instructions] of go One the [Operator first to Aaron

ahead. You go may

Aaron Watts

hosing what comments. your sorry do a the at Good you Hi, you of was guys. Thanks performance core I've ask beginning this. to same-station you said advertising XQ, the least side, what radio from for for line a what was Could and repeat to XQ, your kind pacing to on you. -- was XQ got Peter, your in then at? also me, choppy little couple. hear the At call.

Peter D. Thompson

Yeah.

me of the QX let was digital, back. we X% up on a what ‘XX, radio So which basis. excluding go same-station segment is report,

it Excluding political, up X.X%. was

-- it's Indianapolis it's the quarter about probably like -- to to because was going it of first report going acquisition. up the look XX% a of As look

Second the of political same-station last on moment dollars. quarter of is There fair basis, pacing down year, a but X% a obviously couple a was amount at million political.

So to excluding as second because we're reported, that same-station, layering on we're top mid-single be digits. more low probably like quarter we're to going We're up probably for India pacing looking that. down of X.X% on radio

Aaron Watts

that. it. for Got Okay. Thank you repeating

Peter D. Thompson

then Hey, basis, quarter. same-station for on segment, on sorry. fourth And XX.X% a the up radio

Aaron Watts

or with what -- spend, Great. through you rays coming today timeframe? kind July guys, -- of in April, the first And Any relative willingness entering feeling as relatively been of whether it's the or how advertiser like, year? half you of had feels enter terms is advertising, national light of the feeling you is the willing you're sit the you in as you June environment felt it what local in to May, to level here, to on steady

Alfred C. Liggins

from it's the root recession taken going you I national. Lions there's big Look, ago. mean, I was holding advertising in Cannes it at conference advertising particularly the and an companies definitely on. hear Yeah. And weeks

pulling stronger. mean, through national you or that economic news, CNBC, there's but But, feels why, come something the data I an -- who is watch just going so strong coming platforms, sure but ad because and with people seeing worried are still advertisers because really the exactly on. not back, definitely And recession pulling about local back they're that's have they're you're ad

due than in doing We're still owned diverse seeing interest but non-diverse to Doesn't We're still feeling strength that less definitely not peers. mean a of better level that. we're demand, we're media. feeling our owned

happen. exactly it One don't would sitting recession. why lot we a it mild in a at feel will of going to I what's also to a on be if felt point there's know recession, reasons be be of cash the this good time, But

I think political… at already this in an be is some may business going significant And in We we're had advertising of against radio economic $XX recession. worth million recession our not right? political We headwinds, point.

Peter D. Thompson

It That million] prior still was (ph). now last $XX was significant. $XX it’s million, was cycle, the [$XX it million year. presidential over Yeah,

Alfred C. Liggins

about me. excuse where preparing things would in January. economy I feel -- but -- but be did going I than Significant, today okay And we're what regardless are to better of I I the does, say

Aaron Watts

helpful Thank for That's context. Okay. that. you

question, you're that purchase? what are paid to you up Second and was picking disclosed the share if this. Cox, you already you multiple from on stations But I'm sorry with the able

Alfred C. Liggins

No, we paid I mean, we paid million. $XX.X

think million things EBITDA. that with I have that that we think of $X and nature backs that said of I we just add we'll

Peter D. Thompson

spins. you the caught I -- up know don't NAV Sorry if with

Alfred C. Liggins

Yeah.

But not was And were lot stuff add honest what was out we in to thought sales we say given be I feel because didn't we surprise $X for backs, less were stations radio you, we modeled two right? backs, was pretty and formats. are let's And the price, million, we we marketplace the what probably we going we to changing M&A low prices, of EBITDA radio think got we'll -- able be buyers there's about pretty else, able can have So right. there. take us We're one. not is Houston, Yeah. period felt amazing at two an with say the And activity something that acceptable day get to least it, with like. the stations not of for the expense watermarks find a add know to out when million. $X their duplicate what but than good for in And tepid, was

be million. And Houston so to about going we're $XX to in for

Aaron Watts

you Thank question. And Okay. for that. one last

nice to economic it liquidity You couple times mentioned have and a cushion a of given backdrop. is a the uncertain your

back casino that debt on cash, potential about bonds, you forward here, of paydown also radio a of fought but As think towards activity, move should M&A otherwise? it's this projects. side uses or potentially you whether the that's going or have those more you casino How initiative the whether we

Alfred C. Liggins

Look, exactly we're It's and But casino how if on win a not that equity for it's financing $XX each, depending have write fifty-fifty expensive will Churchill now. some check what put be. debt referendum, that to project the -- not we million assume -- going when certain that's this assuming us we to right it's you go may is. and on it, route let's

we we with check. need stuff So will then land and we beginning starting at to acquisition. think may just assume bigger that's on that But cash I in that QX, opportunistic. write look spend back something slightly closing a on going to sit And the

see to the they're you good look some or debt, out. we've mean at. of bonds some into yield get capital get you're acquisitions at good leverage you mean, projects it Xs, discount, that, XX.X% return than a some is a that. get to radio in that's got on hard how time. the of low strike times, significant strike if that leverage of whatever, turn that of to right? we're change down -- use on are to can that we look other starting a $XX But that's thing capital right kind returns always So I make the call that also trading what -- and plate million X.X at But we then in better -- at now zone Xs, paying going that And capital of point zone should I our we do into starting need

Aaron Watts

the appreciate I great. right, time as All always. Okay.

Operator

Ben Go of Incorporated. the with Briggs line ahead. to StoneX go next Financial We'll

Ben Briggs

for and taking Good the questions. Thank morning, the call you guys. holding

still a have answered I mine more couple but got lot of a So here. of

you So providing come in that again million $X you you said using the above in your guidance and that for where dividend were ’XX out received. year you MGM while you guidance, adjusting thank fiscal expect to roughly

of roughly, gets I let's call it that of like, make So math check just north doing kind EBITDA? sanity right million that to me want just to $XXX sure of my there. I'm and

Peter D. Thompson

$XXX.X X.X%. have in, MGM with I was No, million MGM and think I

So $XXX I think like high $XXX it's million. million, $XXX million,

Ben Briggs

Okay, $XXX million.

Peter D. Thompson

Yeah.

Ben Briggs

Okay.

$XXX So $XX subtract CapEx And million. cash call of minus it $XXX if flow million CapEx, out, guys safe then an I looks free that like ‘XX. million, minus it interest fiscal interest should you between a year and assumption? in on positive $XX million comfortably some and still EBITDA basis Is be expense,

Peter D. Thompson

I've year. where flow. cash we've this CapEx Indianapolis get got and all that kind to couple on mid-XXs in don't of Depending figures, out, free pointers, us spend of consolidating but in in comes of probably got Yeah, we Charlotte,

this is of So we're flow mid-XXs that's year. out cash for free come why what putting to

Ben Briggs

around I then was right That's question. the you. And perfect. getting Okay, where second to. Thank

were So, had much with operations was that that hand the a like? MGM partners, know you guys not you what like I in size Churchill look So clarity silent operating give thank your the is of the very more might be you what there. Could what a couple equity about details and the thought might you a little bit Downs, process check casino, casino. on essentially on for obviously

to approach to are that project this more be opportunity? the going similar You Churchill with to you Downs taking going or left hands be Is on them. a

Alfred C. Liggins

just and They'll operator. to be for they'll going own the it fifty-fifty be operating. them with We're responsible

of a work However, including other build and got They've one Des the Chicago Rush team at in with people, us number partnerships they'll to property. use their to with corporate locally Gaming with expertise a management Plaines.

I I they've Delaware got it's Miami. North, one think in think with Miami

relying got be them, experience will XX% we but they've with but -- somebody to -- thing partners, large X% So them, them who be owns the they've about owns having operator. who So along meaning not with got right? on good somebody

Ben Briggs

Got Okay. Got it. it.

Okay. Thank can hoping you. answer this. finally, and then And I'm you

-- ‘XX might So the XX-K. and you obviously call. released conference year officially XX-Q? when you release just first Do fiscal this you the know is you ‘XX fiscal year Do know quarter ‘XX, I

Peter D. Thompson

We a haven't set date.

we'll terms timing week. extension from of working think that got want I time. that. I there But -- through obviously, next on of which we terms light just stuff We're mindful of NASDAQ timing of through don't We some more we'll we're know next out shed something week, in And that filing XX/XX/XXXX. will put think to that. length some take in of of an

Ben Briggs

Okay, holding the guys. day, answering call great Have great. much you a Thank very questions. the for and

Alfred C. Liggins

Thank you.

Operator

the Matt Our Baird. next line question will come of from with ahead. Swope Go

Matt Swope

any Good morning, guys. number cash and that sort coming Peter, around you've of of for, think be large cash out or other number? of of tax uses sense will that could you should MGM give us what unexpected a mentioned, out it unusual that we

Peter D. Thompson

Yeah.

you bit sale, is on it, MGM there but a think the out any I right? tax you're as went said just leakage You asking

Matt Swope

That's right. Yeah.

Peter D. Thompson

enough Yeah, it. to minimal because we NOLs cover got

faster. burn it So what will it will it's million definitely $XXX through NOLs do, And gain. our

that probably accelerates it taxpayer So federal somewhere from XXXX, to XXXX in becoming region. us a

have we'll news cash sheet balance on good there'll be minimal and the the tax leakage. the is So

Operator

go Go We'll ahead. investor. Kern, to line Instructions] the a next Bradd private [Operator of

Bradd Kern

the Thanks Hi. taking appreciate today. the for call and information all

to who's has casino? First one be name the doing maybe the think you you get give are you making sort what doing any in voters, it in decide, vote? sentiment casino. local you your for of on is you ones? on It's to tough the can the going to partnership. should are us likely it, -- I you decisions improve the project your on when a the favorable addition controlling color tracking Who's XX-half among going to a down so be who and the decisions Richmond What's that -- or on of polling local polling yourselves work view some any that likelihood Are

Alfred C. Liggins

City. it got XX.XX the We do spent. Yeah, money dispute that got go the there'll will mechanism. to we last unilateral Otherwise, fifty-fifty to we to to to be our better resolution going we generate resolution shot, got City work there's agree. how didn't voters be Sentiment call. XX.XX. do We've decisions. the we job the to We continues time. and dispute that's we're divided telling disagree, that not referendum, of in to lost a be joint casino a our got But If And we with the on mechanism. fifty-fifty partners is

got I've out our better look people a company the got we've entertainment to sheet getting do and like with casino said upside, other think job or fifty-fifty. not our vehicle. at operations just I existing gravy. should that the part, the and balance aspects as decide the and voters. our of look We at resort, of a always articulate their it's whether not But that as comfortable our casino in they're baseline to

that's so sit. we where And

Bradd Kern

helpful. throw cables That's of you be Are and is figures what preliminary do gaming approved, what purposes slots in -- the out? there number across those? some will payback for and sort can [indiscernible] you Okay. modeling anticipate that the assuming And gross of each of on terms of casino revenue and

Peter D. Thompson

of better And Virginia one five than -- on year. You its than for the licenses margin each better of million that probably should state jurisdictions. revenue The has the gaming little of for Richmond, analysis different can that. a assume gaming XX% is this a the $XXX is proposed revenue, casino operate a own you gaming

you EBITDA, $XXX could should I do So minimum, it's assume it But better. think of as do $XXX assuming a the that better. million not property million, if would

Bradd Kern

point? affirmative anticipate you TV are really the potential at partners particularly your are what you on that's action from for advertising, side, given and the advertising then seeing slowdown -- radio And appetite you DEI do in any hearing helpful. ruling, the Okay,

Alfred C. Liggins

Everybody's asking question. that

is that gut will take significantly in progressive if sort climate and a changes general the the politics of country, inclusionary my that so hit. And political

believe one of of to economics have I race than business However, corporations in and I the D&I that and just right? doing clip because it's in that's face things at of are the good traditional many country, That's America. not are that's that changing you now it And from and of Black committed the world. happening. just considerably growing a populations that today's faster the efforts, a run what's the is cannot it believe Caucasian the war, population. brown Asian mean

with different be They consumption how different et talk become of and other types a media a and it's no more to standpoint for different more those will will and and patterns for force any there consumer from so cetera. communicate populations And and customer. consumption you them than them of

You got customer. to to cater that

that. that And and give Because conversation be yeah, I diversity pull then government corporations fear among some hearing regulation generally, I'm or some about But will of inclusion, so government if back -- the pressure a sort think citizenship. advertisers doesn't that's and causes government -- that good of or on will there the now. corporate retribution

who remember Wayne? forgot it But I my know. forgot, but door mean, was, of who it who Trump his general Donald don’t never like that's out Lil the was. I I or -- you a and like right? number would pardoned, was. who Was but It's whatever have it that way went I view, wrappers thought, forgot

lot that view. wins the And this helps -- Never that presidency, right it's too, my So And look, party maybe a he a wave. know. that's wing equity then mean, justice. talking yeah, democratic has good right? the decides if so of sudden as I all the believe faction and and maybe party well. progressive he with of a of of he But about and is, the business those -- democratic are got fairness we traditional the people in things now

Bradd Kern

are core note, consumption audience your your competitors? that. core versus trends related listenership -- the talk helpful appreciate trends about of time pressures just or seeing sort Are you I seeing consumption how there? That's better secular radio you can for Okay. existential On you a and of response. audience,

Alfred C. Liggins

going Everything seeing down in media less consumption. and traditional is

feels so and does. points And free safer radio, better but a seeing also ecosystem and pay-TV But rating in radio -- we're fall the we're right dealing than is with with think and less, what I of less less now.

you our that Peter, you If looked revenue, at did analysis.

the par, you on of what was is revenue did? analysis kind Our really

Peter D. Thompson

pandemic at and of as radio patterns the levels you we're When above significantly has reach patterns. given down across post pre fairly different look and EBITDA working still despite that and the you of digital fact the commuting might imagine revenue audio, gone listeners segment looking audio, pandemic universe

Alfred C. Liggins

think him CEO radio and Even the festival. for I'm television. that this So analysis the in good CEOs, And in some on Pittman. more continues the Cannes one less may audience Historically, business say to that would I decline. paid numbers radio And hammers going conversation in versus with at though television we pretty talking in has doing I have reach. we're industry, America advertising premier to credit where of in and the about give gone. be is point small, there Peter's to Bob were XX% reach a the advertisers XX% had he has still pricing reach

answer world don't a we're know the living And So I that's in is. what

making is Nobody now, Discovery Netflix in streaming turns corner here. money the right maybe except

are we about this I -- business. in cable streaming. the were back think television investments feels we're in these is I the feel on lot hanging the really they with among radio it's right diversified good to TV next in -- of we're there there good managing Radio And really supposed of like there. that all I cable that things I way making hanging in that when But to and business was starting that felt our was I worried were it. their more we're really good there. Today, radio now hang kind and turn in But people quarter, corner dial I time was quarter. a a

changing. that whether picking need we But more distribution, up opportunity investments, I consolidation like strategic landscape it's do is to sort something do feel programming because there, of some

we're a going do a But make pressure good we're that now time have operate to have be is time time figure got we We're to to non-effective, will in to those non-strategic news going not have to We're so going investments. us that. leverage way. going And where to have any under to make at the to that. we're level --

turn. have we're the make the runway I think going that to to

Bradd Kern

Sure.

we've about casino. the sheet, talked On talked the you -- mean I the balance about the economics of

there's call at. world that go be fifty-fifty the return capital of the it you of in So might Xs the you through, shot in leverage other its -- looking doesn't leverage the on where forms that kind low in mentioned where

gaming you on side? it's actions potential Or are how other you thinking strategic -- TV do about or versus industries how and whether So otherwise? the that radio

Alfred C. Liggins

Yeah, do rationale look, is so match you of -- -- us we for strategy in everything something. to is as often a overused very terms why

XX.X% I to decision that -- a make use right? So return would -- if we match return. we buy would can X% debt are. think has a Something options strategic not against we you that. net you up and there's the that best not of strategic wouldn't and get no if bonds to a pay do that make and what's I our We can current strategy -- be return, what accountable retire make don't decision your us would capital, our

for the Does with at can what that you that That's so. the down it can should You be else just sense? creates the than lens Because down right? return, value you which make you it's do your actually if we then worked pay us. bonds, it capital. you look yield better needs strategic, and create it's value -- pay to right? outside should an It And under have

Bradd Kern

level whether think wondering, leverage I liquid, leverage you from or… point, that you it's guess stock a I'm -- there the start debt is know shift is reduction some terribly isn't level about, that at there you to is there a buybacks I share just to

Alfred C. Liggins

Maybe.

Bradd Kern

to is it that return cash. Whatever

Alfred C. Liggins

year. mean, I $X.XX. I were said back Maybe, $XX shares go we And we at bought it's that down, last million Then but it of worth we up, buying come shares of… kind Yeah.

Peter D. Thompson

we're revenue got That EBITDA some how goes, that of about we point, how be it Given the ahead the but how -- some at goes, we macro strategic feel will it. us. just on plate depends on

Alfred C. Liggins

through And more buying return earning the buyback buy earn paying cable goes assets, cluster and to rigor us casino. same X% our XX.X% us our we're investing does, back that a If return and the radio down -- in analysis debt over buying return. a going share not stock

Bradd Kern

leverage last for just year, Okay. that end -- When is Thank by you. times me X.X you of assume housekeeping. mentioned And question I the that’s… is

Alfred C. Liggins

We said X.X times.

Bradd Kern

that's forma -- are a basis? That's And for the on in Right, is X.X any pro cash that underlying net or times. times. what the uses other X.X of assumptions

Peter D. Thompson

Richmond that win assumes land It in Alfred referred the to referendum we quarter. the fourth buy and that we

assumes door Houston. So in cash out close we goes and that on the it that acquisition the

it that $X pro $XX million out EBITDA well, net but So from million call goes door of the that as we transaction. forma and

Bradd Kern

into number? number? no Modeled And additional in buybacks that that debt

Peter D. Thompson

No.

Bradd Kern

all That's my you. Appreciate it. Thank Okay. questions.

Operator

ahead. We'll Sandschafer go Go the next line of with to Mesirow. Matthew

Matthew Sandschafer

in guys. end. sneaking Hi here me for Thank the near you

What are XXXX. pretty planning obviously That number on questions. housekeeping guys high to of couple was spend year? a Just in this you content

Peter D. Thompson

to at mid-XXs. -- was looking, high he'd like. I here it kind my ‘XX. But can on think with Jody's of the Yeah, mid-XXs, was us. looking in spend least, I just in got cash I think speak He at cash. I've if we're sheet

Matthew Sandschafer

I'm sorry, issue. a having I'm Did say sound little you mid-XXs?

Peter D. Thompson

mid-XXs. Yeah,

Matthew Sandschafer

great. Okay,

Peter D. Thompson

I last than think year, cash it a standpoint. better normalizes from

Matthew Sandschafer

expenses as during you specifically, quarter missed I cash of hit Thank And might been part a took I'm more a of any it. first great. radio margins were that when in AT than there went bit have the through And segments Okay, but unusual you. call, fourth on, the the the if or expecting? little in digital I was sorry,

Peter D. Thompson

Yeah, a were things, number. few there There was noise Matt. some in the

had year, we were high higher bonuses so they obviously, otherwise than watermark would the be. So normally

a that some higher production So digital about ad costs. by digital, content also million, in talked and impacted of that traffic In was margins at was that. acquisition higher those $X.X fact bit were costs, costs the we little that

wasn't than that, margins there anything Other those material. particularly compressed. So

Matthew Sandschafer

does dividend that number free cash rolling that into Okay, -- great. And the mentioned, flow you the this you include mid-XXs sale MGM are then year price? or the that up

Peter D. Thompson

a That hang Good point. is -- in that so the second. mid-XXs, on price, that's sale not so

shouldn't into the in Let actually, -- we include That Matt. of mid-XXs. have me receipts. have, speak before just yeah, it, double that the check -- on it, does Is up $X.X rolled I is million the sorry, no,

Sorry.

Matthew Sandschafer

way. do just you Okay. radio you has business company some What as what And trying feels lower persistent for ahead. you digital station feels traffic I on driving things, think station mentioned overall? been It traffic like of guess every guidance obviously, the higher forward. a What it that margins is go going that higher side about a you radio -- competitive cost. but looks of not kind Yeah, like landscape get costs? just generally like do There's every into guys radio in think to significant acquisition know, and the acquisition

Alfred C. Liggins

Yeah, business else’s than everybody -- business. digital business different digital is our radio

publisher revenue content ads a as digital largely got sell some probably of streaming year is where this our business video XX% advertising, it digital We've display we revenues. roughly be Our and would video.

excuse what don't know X%. I little higher. going it's it if -- least know don't I least this is was. $X to million. be if a I at know me, at Forgot it's

Peter D. Thompson

$X.X million, and it’s in the $X million.

Alfred C. Liggins

of are that got Yeah. a iHeartMedia driven. a And bit models -- business. We're got streaming and got they've we've and platform podcast podcasting big business, but podcast the iHeart their has Odyssey clients Cumulus digital advertising markets in much in. operate agency of they So right? publisher. a more small, a Townsquare act for And digital local small medium then services, sized they does the as

audience our in from everybody So African-American the still than demand. it's largest the With We've got else's. is space. digital said, benefiting that business different targeted

can scale space. grow what I that is tough hope prognosis And remain we publishing it a is profitable. got if that the player the continues going Digital forward. in We to business. to we're margin. figure how I to don't So know out see

bunch Yeah, out go. and a viewpoint. and to better business from podcasting see and it's in that. they're these BuzzFeed to figure having other Vice, -- tough to business. better. through We've a can Cox We've of how the You manage doing than But way my so a been got

Matthew Sandschafer

Thank you. Great.

Peter D. Thompson

Matt. you, Thank

Operator

the pardon next We'll -- to go me.

Alfred C. Liggins

more it's XX:XX, question, for and time operator. we so one Yes, got

Operator

of Go We'll line with Bank ahead. go of America. Pereira] [Marilyn (ph) to the

Unidentified Analyst

in. you quick But Most me question. Thank and answered. my squeezing of have them for call taking been

call. had You mentioned at top of BET the the

terms could on impact what like that So any thoughts potentially of the that other in information on leverage? or or

Alfred C. Liggins

some process. I mean, ask in NDA. people it's if I competitive just figured interested a under We're we're it. an -- us

me, we point just we're at be process. enough guys But hey, comment to just -- and anyway. anything not at the comment on allowed I asking are we in that couldn't figured people mentioned I this tired are I'd along you wouldn't looking in get far this. I So time of to

And I that's that so give. the I to we can decided all information but were, admit

Unidentified Analyst

And be environment cyclical, the the a kind be quick the high the how overall next see year? you have then or current secular and you environment environment willing just your in kind over current to would reframe, given to what leverage of of

Alfred C. Liggins

for at win to referendum Look, we'll who equity we the We in and profile. to that probably to raise credit more like write don't $XXX our our we're leverage assuming X knows, it night some how we check maybe X the get equity, when leverage X times If or have at below. months, your -- could raise leverage. casino, here. know we million that. like times, -- it for But that that plus going like next our sleep over the the value XX months, numbers, casino we say, is a flow sure XX it leverage out our some has the but I'm no going call we think goes door with I'm -- also times, we Peter suffice good below in is cash change that. have But to $XXX would coming for, I XX to about we'll that million

Peter D. Thompson

excluding in wasn't up above X times forma for QX, received It cash pro the QX. the probably pops MGM because till

Alfred assuming it it's to eventually the down if mid mid north And is excluding Xs But QX. in Xs. in numbers I X.X our X and can out of look and probably times low as plan, forma the at pro year. it we plan. get we'll long-range finish Xs, guess said, drops that's our hoping are I So pro in times, hopefully have the about we this And forma,

Unidentified Analyst

it. Got

X also sorry, the of like had if you radio if Early the of you one one. What… times, multiples could that correctly. And top give more heard generally on I you I just last kind call, said are

Alfred C. Liggins

average of I comps thought times that. I I lots there's the something of kind like X.X out like is there. or mean Last multiple radio looked,

EBIT. again, saying I that's think remember what I So

Peter D. Thompson

variable at. It's you within that, who right, look depending on

Alfred C. Liggins

Yeah.

Peter D. Thompson

was meaning. about that mean I the

Unidentified Analyst

Great. Well, much. enough. thank you Fair very

Alfred C. Liggins

look We to forward near a Thank you you. at the future. you everybody. to in point Thank talking

Operator

conclude Teleconferencing. that Thank for today. your gentlemen, and your for conference participation Ladies using for you will AT&T Event and call

may You disconnect. now

Urban One (UONE) 7 Jul 232022 Q4 Earnings call transcript