UONEK - Earnings call 2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Urban One's First Half 2023 Conference Call.

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. Everyone cautions you that certain factors, including risks and uncertainties referred to in the 10-Ks, 10-Qs and other reports it periodically files with the Securities and Exchange Commission, could cause the company's actual results to differ materially from those indicated by its projections or forward-looking statements. This call will present information as of December 7, 2023. Please note that Urban One disclaims any duty to update any forward-looking statements made in the presentation.In this call, Urban One may also discuss some non-GAAP financial measures in talking about its performance. website reconciled or either release, in be on be of the which will found call this the its measures to during GAAP course can These www.urbanone.com. at company's press PM the of midnight be [ running call A noon XX. replay today conference ] December available will from XX:XX at through replay X-XXX-XXX-XXXX; access International Callers call may the may callers by dialing XXX-XXX-XXXX. The replay access code is XXXXXXX. on www.urbanX.com. and a call be available conference replay will at website the audio Urban of live corporate to Access One's also the on website X replay will available The made the after for call. be days No or other Alfred now call or are recordings copies of to may turn call this over C. authorized upon.I'll be relied the Liggins, Chief who joined Executive by One, is Peter D. of Officer Urban Thompson, Chief Financial Officer.

Alfred Liggins

QX me ADU very everyone Jody Peter and the the year. We've welcome QX is to Financial much, Simpson, half D. released struggled the to and year of Thompson, you half TV is the conference due is earnings. was of first is second who half showing operator, cable Officer and in XXXX. Counsel; also at our General One.We've Kris addition first Thank particular. in Chief softness to With our who Radio Drewer, television our call and for first year the and churn in The business decent got QX, the of in in half commentary. the ratings in our

into half the of going back year. the stabilized actually has that However,

So, they flip-flopped.

to the and we've the of EBITDA $XXX is conference balance, for our for our fully are Our year call gotten to digital time. in million to second shown failed investment plans and the our continuing pass planned our we what And casino one actually is monetized, and of a our of EBITDA.This range surprising investor large of with and the reaffirm as is guidance that, with comfortable cash also that Richmond million cash it's to in have referendum of for lot about are first business been along the MGM questions moving to had QX. we investment our upside $XXX all in being full now

things so through is consideration. And thinking And top something of certainly, paydown is that now. a all debt we're those

talk to anybody Q&A, Q&A, we'll in going wants into bit be so to a we're that and I turn to it happy on on more and it.With to he you then so it go more that. Peter, get about numbers, the up And can if want to from to the specifics over that, open go granular

Peter Thompson

Alfred. you, Thank

acquisition first The was for up million net X second generated million, $XX.X the event year-over-year. months, revenue Indianapolis So $X.X the and X.X% absent was Reach from in XXXX. but consolidated radio added the quarter approximately cruise

for advertising. for those basis. down Radio year-over-year, increased items, revenue X decreased X.X% the was X.X% segment So Net excluding down or net normalizing political on X.X%, revenue X.X% the a same-station

against revenues and X.X%. ad net by down political, ad Miller was X.X% that market the were sales same-station were same-station on X% sales a to down against market increased was National our local on a that And Excluding QX QX basis, finished excluding X.X% down XX% a down And basis, QX. basis.According XX.X% down same-station on down radio X.X% down down X.X% down in were and a X.X%. spot same-station a and were in on in markets The markets Spot political. we X.X% QX. overall, X.X% basis down Kaplan,

and all ex same local QX, XX%, down XX.X% in, down down station with down political, XX.X%, down XX.X%, pacing For currently we're X.X%. same-station national

support. Cable million, office which the down cruise down Advertising $X.X half million EBITDA than of was revenues revenue included of $X.X that acquisition. fewer $X the segment $X for Cable of down second with the ADU more was recession National QX.Net first $X.X was market revenue station by year, affiliate of budgets due compared last Fantastic the experienced for impact additional digital million and definitely revenue was to York marketing the the a the to the the from including by first station in for advertisers year, compared was or of year June $XX includes $X.X revenue Net was deficiency.PXX-XX for the QX. TV $XX.X and the we million was for $X.X half year to on from like net Direct although last Tom and was million cruise compensation and favorable local radio some our were the was down back event of for to unfavorable Month year. Voyage of half Cable somewhat advertisers delivery in million XX% year, inventory revenue QX first TV rate as year, $XX.X revenue Net our Adjusted of rate with expense million, from and up. the million History and an X.X% X.X% down half over of Media pulled New from has increased of million improved revenue launch $X.XX softening decrease X.X%. ago.Streaming sales XX% efforts QX prime So $XXX,XXX revenue down from committed $XXX.X increased for team million our was the from and segment the Television an sequentially concerns million for X.X% up. million advertising increases Reach or offset and by of volume for affiliate half of churn $X.X a down year. first the $X.X Joyner's million, million Indianapolis

to increases million last million for adjusted sales revenue marketing first $XX.X the half increased the those costs, acquisition EBITDA expenses traffic same compared and was offset period for and $X.X However, year.

the to additional the other period $XX.X $X impairment million XXXX, with about approximately professional ended added from $X.X of expenses at ended interest, reduced $X.X but million the up Radio Eliminations of offset million award year. closed noncash by and $X variance of contract million compensation.Operating of marketing, XXXX, for mentioned which for and $X.X with in expenses, One million of traffic licenses travel, of million and million costs. charge that million expense $XXX.X TV 'XX which expenses the by included Cable cruise, by Harbor segment Birthday extension, largest by million $XX.X business radio about million, million at million were add period million expenses. April the corporate in that or $X.X million, and XXXX. primarily National end the million.Net in the $X.X and of $XX.X $X.XX $XX.X $XX employee of amortization million, radio par consultant in employment of Holdings digital X-month million paid $X.X XX.X was by in share One favorable $X.X was MGM. about. subscribers and for goodwill, $XX.X for company cable gain office that in in was and settlement million. repurchased income of I adjusted up the sale.The the that an agreement $XXX.X expenses was by market. also approximately driven of average XXXX event, to of the gain sale Digital expenses, that compensation.Impairment Reach Radio million increased company of down Indianapolis $X.X The period down with production by $X.X total the some and down of $X.X Bash and predominantly in and $X.X long-lived on development, $X.X half million. million Operating costs debt Total revenue net of expenses and at primarily recorded station the just due acquisition million was the costs.Approximately TV a expenses added down was about Cable of a TV the for The expenditure Atlanta's by the million entertainment, million event June the in company variable segment XX, $X.X $X.X the time $X.X half subs.Operating per partially Indianapolis Houston labor, amortization the related related due of amortization, first $X.X repurchased notes million was as segments up including QX a CLEO the were sale event impairment year. $XX.X shares the expenses, million, $X.X content TV $X.X Other for for of the expense the decreased up down depreciation And million $XX.X the the to compared resulting by to in from broadcasting award For in taxes X gross to $XX million price. to were prior price approximately were million million up retirement These its $X.XX first last business the $X operating and employee were segment debt half, $X.X approximately increases compared and assets put million $X.X million excluding fees, corporate related adding from Nielsen in increased and talent $XX.X the by interest $XX.X the Indianapolis million, year. year quarter, talent put approximately down was of income stock approximately million finished TV TV first compensation amount the plus Philadelphia that decrease $XX.X from and have On million or assets some to common churn fees noncash EBITDA down approximately June XX.X% XXX,XXX decrease representing stock-based in Corporate consolidated for was marketing had million, of $X.X $X.X Interest months for half, for income as up approximately variable is in decrease in that's from offset XX.X% sale $X.X the compensation of approximately charges amortization, operating the of million. $XXX were Class Nielsen, XXXX. a One, measured million development XX.X% million subscriber in were balance intangible increased cruise million result at the of million content million affiliate to content $X.X on employment D $XX Cable $X.X of advertising million first professional were expense. by first was of down also XXX% $X.X million million, fees, million Reach There million approximately the compensation first a on is the of those the million cash for at million million. long-lived million per half. was incurred in part associated $XXX,XXX expenses Capital to and XXXX. in $XXX.X MGM $XX.X of in Entertainment increases amount and share by of an Reach's for paydowns. up increase. additional the radio or and with of of for increase acquisition million decreased and up XX.X% Radio the received last quarter, company provision comparable $XX.X corporate net the was $X XX, approximately broadcasting and radio $X.X the million the $X.X expense in of was audience income acquisition, by license start which of debt KROI-FM, in $XXX expenses fourth the taxes now the combined. of for

EBITDA. approximately million, XX, $XXX.X was MGM in at end X.XXx the ratio a that, $XXX.X XXXX LTM compared leverage As hand ending $XXX.X adjusted for of sale, to was debt Alfred. to forma debt of net net $XXX.X total was cash of back I'll LTM reported of resulting gross the period.And million million Pro million, unrestricted June adjusted EBITDA $XXX giving with of million, the

Alfred Liggins

for you Thank Operator, open can up questions? Peter. you,

Operator

We Bradd Instructions] [ Kern Fort ]. go Certainly. Baker with [Operator to

Unknown Analyst

cash that, about of how do sort versus capital, I on cash you think that the about use think market that way a the your would cash open IRR justify about to was when return high deployments of enough debt that think you one had And there? when you returns? deploy you IRR cost XX%-ish you about think how purchases First do Do think is of you other proceeds? a the

Peter Thompson

looked sort right -- now. to that of worst about seeing of we the matter what that's cash earning XX%. you're in at where have other the Look, fact is, today's is yield historically, we're Yes. environment, X% our that the just and on But

So XX%. that it's that a delta and between X%

it's return, X hard, to in acquisitions we a finding particularly And work feel we our in So really year. IRR things.First the but particular, in XXs, cash out right? quite not Like radio the the one, put the all, we've XX% to places money pencil to is Houston strong. of couple double-digit like and that, was good last about done investments at a of

albeit of would that acquisition. been XXs, and that been return seeing cash However from do investment you capital like through we have the wouldn't a the door in process. off coming radio have think casino our been have to a long -- We would that something

into So to of million investors pick But do probably authorizations, open we'll blocks lot to market suspect our we look But to own of we're on it, excuse down going we that's a to I've in at debt right, that a other people to that done tough. for opportunities take in -- plus money, -- talked XX% and a kind get XX I today's of historically and to looking look not there probably at that kind kind we've our continue purchases it's approach. of that that, professional find we'd investors, it. we're like out are we're but weighted -- of how and of similar like after right?I irrespective our think go quantum pay want to down, those opportunities earn me, environment, it.

keep we looking. but -- So

Unknown Analyst

the a around you case of are I clearly committed considering? you Yes. And look to That are makes perspective. how ventures? or I that those other for as mean, versus return to appreciate shown sense. how you diversifying gaming. business types radio TV and opportunities, what for XX%-plus committed, Like whatever you've media

Alfred Liggins

the were not into got got part, -- got created bulk the only, most we got And business, we bought the and the One excuse Urban Interactive radio business. the me, Yes. our syndicated I we're television and cable is publisher like right? and Media, we business we business, companies a look, And mean, into the other we into are the TV when One, radio podcasting and then business business into of One where we Reach digital the in then for streaming. right? We're or we've then created gaming

to business enter assets look we assets the to into that resort businesses they more those out, be in generally actually that so the successful we got And we have, media help building worked successful can to for and tangential be casino gaming we we that were Washington, or businesses a mean were have businesses company meaning or be. in otherwise are MGM, than the we D.C., ability us that with a like here. based And right?I the might us make have, it's those because

that's the So look we kind that at. stuff of

we're To So just we're advantage some other our but do out -- me, do want knowledge, to a set. to execution at like your I a anything depth open et looking high we gambling, degree to cetera. want to I of not businesses, where skill wouldn't competitive generally have risk, of of right? in that's

of strategically urban get though, made not retailer relates those core you, right? be mean, at. tell a example programming that's we a so just I I How look I -- we and a where the at that to an my saying there it marketing -- even that, that where business But something in at apparel -- figure consolidating -- radio though in also kind consumer-based talking as helpful long looking out businesses, core doing head now. it's that's be could something That's content do our would one-line scale our have other right? we some some digital we but -- if probably The markets. it that's look advantages could what is were in to very opportunity, in advantages, our hard our That's can off something but you we of take top we're advantages, business. TV ever-changing some I'm business.I'm environment, our acquisitions we're like if how there some had synergistic we're not because an business in -- platform mean And and not that's any of not we're businesses.

-- So if of continue didn't return you, sure return. businesses, we would ecosystem investment, posture we we'll think if The figure those do EBITDA, take to really a be return we opportunity continue how is, back though spent at it careful $XXX got building out hard right?And it earn look of We're fortify it do to in confident But confidently, we I you've I those so while. be making -- XX% would you figure an it and that from to be didn't the continues of delever. pay it. casino even we where at can $XXX run for we pretty get that million standpoint a And would businesses that #X kind think how to defensive because million then get a pretty change, priority can a we flourish. to to to you is to we're in got to got that the we about to going our do. say how what we try as

Virginia the on based what about knew market. Central we Now

So...

Unknown Analyst

Got it.

for to the on achieve mentioned television with in the efficient looking but subs. linear business, opportunities you've given more And there in of this, so past that the challenges efficiency just you're sort melting touched you

thinking how that? So you are about

Alfred Liggins

I the we're X one Group, in when parties We interested offer. that don't yet. have or in, X made an were it the We answer BET a was being Media process. of the shopped

trans was wanted reason there to process. from level. not a -- programming that that a that. sales of standpoint. Our great been But offer an advertising at synergy offer stopped the have the they I deal made right, back at This Paramount level standpoint, there, And would nobody don't cost evidently,

pivoted election also just coming now we at We're for yes, And we're excuse for frankly, and the middle referendum. November X was next our up year. in of that failed, kind so so air. we And looked for Richmond this attention that.Quite -- to water, our up then budgets doing now of coming

didn't we a just M&A the haven't were as effort. we projects bunch referendum that sitting the have considering were sideline We simultaneously -- idea of we on during

And paying down opportunities figure budgets so getting what look done, we're at some and now debt our the then out are.

this deck -- that's moment. there's on so So nothing

Unknown Analyst

Maybe question. just sense. a Makes higher-level

You of have shares. X different classes

I multiple, of are the all right to think it's those your looking and the tough core peers. your and even see given capitalization of the value what space that declining the stress now, overall when at the in businesses, you're enterprise in business multiples some across

in voting class where are on of going guys outlook you just achieve one of is with sort Or those sort to world? share a them. to that controlling a Like view potentially in that You that But you just shares? different... share the relative that those classes prior is think how you that? could -- and higher that different you valuation important have mean, Or something is there about position as I maybe X a to forward collapse you simplify of value to that pretty that do nice think a do having remnant

Alfred Liggins

Yes. Yes.

out But is, has in controls African-American greatly owned, minority economics -- for about a of ownership African-American it look, being been identifiable have answer The company. XX% yes, the certified is we've say there, benefited a XX%. because So particularly a the we've value, We're it certified we've family minority from company. been value? long time. The this owns times, the does environment. about African-American controlled certification At does also and of over have you which different designation been

view happen, of tell do companies it right? had across what you.If lots companies their and companies going So any it's cable radio there. controlled multiple companies seeing I do give sectors for network got we're it's in, in share into can I'm and any shares, or diversity minority sort and think confidence uplift, to cable But that whether one just the absolutely efforts. want here's going there's companies that structures, are think and flattened are share us There don't with the I controlled structure value I of to not multiples the with class that everything right? business I've whether not of we industries. their stock pile has television to that our also X of investors programmers do mid-single-digit anything do people's to to companies, radio has those It with on minority-owned

Unknown Analyst

discounts alone. Okay. as you just And That's there's lastly... think you're I to on a would been you'd business a then want are And stance, think research that do higher not mean while lot been I think when interesting. Difficulty] [Technical I multiple cushion businesses. that haven't LTV, much on possible. looking to a can defensive -- of anything be when mean there as at keep you I levered the from controlled for people explosively may equity

Alfred Liggins

paying I have but the create where we took of of we in in sort Yes. and any focused problem advantage Yes, I got company an think in never there issuing running. our ours control -- lift it. we the from 'XX, 'XX whole being place, in or like was the place from issuing we've I our $XX ATM a we've show were the stock 'XX now, significant of place stocks I mean million active worth programs and and our some was them X equity. We it debt almost forgot, or When down equity, it equity. year, in in by of time companies our forgot, don't because had fairly past, had we're of issuing moment cushion no, was -- mean, African-American and

if ourselves capital, equity And more cushion. need more to we shares to issue so give we're willing

Unknown Analyst

Okay. And the so on then -- and question. -- financial then

XXXX, you EBITDA expectations ahead. year what range kind ex have of contribution and of advertising might do your for the For a be political for political yet looking

Alfred Liggins

it of, our the Yes, literally give Senate sort robust And call We're It we Georgia be the like middle right million through 'XX, of budget. it, now. double-digit of the and early of the as budgets. in -- start we our going we for 'XX, alone we're money million had millions our lot kind won't that. think got runoffs as we because for it races. Senate probably that's there, political us But a of to XX 'XX, will was radio And but business Atlanta largely in $XX revenue. let's got on in again, in $X due was it of some

Peter Thompson

'XX. and then in 'XX. in Atlanta, That was which 'XX, did in we of XX in X was XX

Alfred Liggins

in XX in half Atlanta, in was you 'XX. previous in still Atlanta. the cycle for so Thank was X Yes. which of clarifying, X.X the Atlanta, in

Operator

to Matt with can next, And Baird. we Swope go

Matthew Swope

of Peter, the leverage you to continue maybe you sort out economy you're us in what the where where of like where harm's themes. of and You've given are way comfortable some regardless some you to the be? just Alfred of think past, but your same would on does. numbers Alfred,

Alfred Liggins

it. say our I a with would that I like don't on changing, right? leverage handle harm's know because keeps I X way

was levering it, consistent I X.X going interest take meaning lever I businesses, us really up the so. quickly to with ] used something something when you these therefore, time down the and on businesses is come are year the at. And leverage like basis, of the and I'd don't to that -- to these low profile you something. could business, that. when assumption some the like But on -- dealing make on think growing I call you your good. up that. march [ that to companies There at, those business that be that Yes, company got businesses execution the swing aren't probably aren't Those finish going a and business But I've no to macro think a growing. radio market that you're TV in Xs to these can and the a down that count get take the risk And into that's is we're is could be used longer. any economic those and

So we're of mindset do that wouldn't a we that.

So that's I kind we today reason talking off about pay the at started conversation debt the looking of downs. are

Matthew Swope

I that. definitely the in have as done appreciate you industry that. And job anybody a good as guys at about

Alfred Liggins

mean, I appreciate lose it. I And a have XX-plus look, lose. right? you a to got has years a if old. we lot lot to The we're family misstep,

being sometimes safe in holders viability, right? -- your preserving it's the about so where holders the the debt this And instance because we aligned are and equity really with debt holders, but are aligned with

Matthew Swope

think, would -- of as could Sure. need then couple At -- balance two us cash a could this, the But or $XX be, need I than guess the that today? the And on cash it's a times, sheet of one Peter, update be, you buyback No, of sense. I where on like makes is questions. that? part you all to balance With about as the right? million, would sheet? million the cash you give guess $X minimum it have what's Do been more you

Peter Thompson

that about talking week or were we so Look, ago. a

] [ payments a TV programming the than really then is of chunky. coupon what Yes. standpoint. down probably we And is lumpy think some Could on got buy if [ Obviously, from some can number. is XX a we Probably a the range that? be decent But lower One deals balance sheet. it be We've terms goes XX coupon I obviously, semiannual the in that ] chunky. of back debt. to need somewhat XX

lot think the got which $XXX.X that. we've obviously $XX.X more Houston than today, is it acquisition, million made I a was So that Cash after obviously, And on hand million. we've was approximately.

we're where that. at that's So on

Matthew Swope

about... think you As

Peter Thompson

Go ahead.

Matthew Swope

number? possibilities, buyback something even say, I going sense was tender or any for you make that broader some haven't of you XXX XQ this. to you [ just to off the you do a about you at put bond given you get -- going have to it do before does like restricted numbers Are just that your bigger fees yet, by or XXX ] the as said, you the kind can do out some like much could a fact of all, just that think

Peter Thompson

need repurchases, boiler. transacted unless Yes. signed doing market someone would to if who a with Look, it QX, -- open I we think we we we were do after big

So in sense. that we protected were

So there up QX up to the go Framing sooner sign and with a place. year a may in end be before then of an block a than do put that, big find and plan later. the we'll and we'll opportunity and file with boiler a sign

historic ] and think $XX million out blocks Alfred -- blocks. I was us our and market find saying, [ kind authorize have go in as been of the ammo has to

], at going direction So path.To at. we're I that we saying then don't if yet, go that and look we're would $XXX I route, I to decided tender, million, I think Alfred's think but going we'd to blocks where not think think up probably probably were do think the take your we're going we I of don't [ that. XX to to go see point,

Matthew Swope

you. at this something you that's Would point? you then at other looked certainly No, Or places at the than at times again? dead idea else is I look know Alfred, Got helpful. Richmond. And casino

Alfred Liggins

a process now, We That returns. Virginia. is investment. think would to political it's of money our, happen. in it's significant know only this I And a MGM political our we on higher investing our really that I license pressure of I a licenses somewhere go like absolutely other look getting a We was the to know industry that right? right? to mean, stuff. going made what's don't overbuild great X.Xx so fact going in interest yes, You at fit is Yes, on business. we on going absolutely. we're put on lot can we -- are think like -- process, level.So when risk, -- and focused made organization There's gaming rates think of some there investment. advantages have we I we I that's really -- the as gaming are And African-American-owned in mean that a sort

they'll go if iGaming there We I the know way which betting haven't on to it of move are It's be to try see level. but profitable, is looking the a to would assembly is there's that can State different structure actually of sports legislators a come planning that's I'm that no the how to and the put do is that And yet been this -- question and sports city the bill to out public knowledge send would general we would to any iGaming Maryland. -- don't what to session. gotten there's not players administer what idea seeing because probably going than betting, that the is potentially who bill any on had it's very licenses.So iGaming focused they're out participate that's ballot.

passed revenue. would and be. MGM or our get the to structure pass with activities any By a then to deal didn't us referendum give the figure way, access out online So what

like iGaming online sort would do we sports bricks-and-mortar no participated have have came, -- wouldn't in operation, Only claim. betting. we If any the of So it. we

was another that go monetize. to so And and yet ahead reason

opportunities And... look So -- grow stuff, at they're but other yes, we on not would those don't trees.

Matthew Swope

just a one last And for maybe it. Peter. quick Got

Does line any impact deal? sale, that radio there you have Houston any else in any to divestiture Houston trust other issues? your that's in Is that broadcasting, other doing the that. you're saw or Spanish on on that pressure extended the anything we With time on

Peter Thompson

There's of the gave get by authorized that window done. a us X-year but trust it was -- FCC, that it amount time to a is the finite

closed extension second one that station Spanish broadcasting. we the station sold has been and already -- so -- time EMF and on line the for that we extended So with the for

I it like up to schedule July think is wrapped all or by for the something be that.

window have that that. -- well within it advance out -- but closed trust, we with but the well So of that in be the within right? will there well suspect a it's X-year So first we the is year,

Matthew Swope

could theoretically, you even. if extend little it a And more you wanted,

Alfred Liggins

Yes, you could.

Operator

we Kenta And Wellington to can next, with [ Shimojo ]. move

Unknown Analyst

that looking should Richmond markers you license revisited? kind of be I'm rehash investors or for is have appreciate to kind the or that outcome. mile of of in you're timing as curious Matt's question, gets not for still just to thoughts when And any digesting I if terms any that milestones but

Alfred Liggins

probably I mean, We kind up, we're I general right? for that's just it, really looking not the after. like of it's haven't nowhere we're going air in out to in a year. Again, said, play process we came assembly this into or of terms -- whether

of a that this put Virginia, do And happen is that in propose so will in assume somewhere -- that I or Tysons. that know to a it there's And Northern know like state propose. to bill there group a is I to Reston folks that want but something I senator going session.

So and would they there's is we the going like Virginia. it hearing vote get wanted city again try that. to to did Northern last at of push Petersburg Northern we you a go Richmond, to in for there so got Virginia, a lobbied as interested but against the and be I'm second around,

But don't just I other suspect have the going -- you'll what is legislative themselves positioning of to of or I know happen. on coming session. are any one this session. state don't what's this other that a for I play out So people don't see the I have than way direction And information legislative

Unknown Analyst

to. or further from or additional then you'd given of Appreciate you to sort further that the invest about on that in prospective Do the the have putting yourselves risk be that of of like a or just leverage any adjacent cap color. afield IRR opportunities just you afield? higher moving additional opportunities and And constraints terms alluded thinking gaming threshold size maybe even radio investment

Alfred Liggins

that. don't think We about mean... I

Peter Thompson

its look deal right? you merit, each Like, at on

Alfred Liggins

money to that's I that you We that don't here -- think the invest you money, for so come XX that in right? bias towards ultimately of something, things whatever percent a cash cash count, nature because reason. that bring we newish of are Yes. -- investments, wanted have not thought early people more right, generally look I than look into worked in right? investment making from were in mean of you're going could not of to actually companies have investments going on on so going deliver be have at tell baggers, in. a not kind around already if the we can to I lots mean sitting value to cash because bunch XX-plus stage of early just fund. cash businesses return I because we that we're capital sense of the we're probably returns.And startup -- make venture a could mean, going a like flow business stage, EBITDA companies company and make into just that my We're and that's speculative how you're is mindsets increasing than much We've and never return generative here we -- and a something on businesses, never higher just that's our the because we

Unknown Analyst

Fair bagger do. Four enough. will Yes.

if pretty where curious to multiples. the of that the sales noncommercial are sticks there. be as strategic out of instances of have one any I'm picked last seen recent you for a few kind industry asset in are pops just operators to in might that broader that you at interesting So me. noncore There kind came non-comps few up were

Alfred Liggins

ultimately, and approached Yes. one it, The of I've one of problem position to of we've couple recently I've that an market bigger mentioning do to and our does said going competitor a in versus we problems markets. market, of make but well. there's I the really, push that's of it our something competitor get about is do them the weaken the a -- think markets. want mean the opportunity no. in one And for and we might the against really to our one and is, not gotten us weaker actually us return, thought gotten that would buy we to there. And

to really that. enough. to don't we sale make something a dent. want market. sell.And cash It's It's like before $X the -- $X -- kind have of big to of And they make is money pressure before like I take already a competitor in flow they or So huge enough, the not million big right, million, off not that that

off, that run cash gone the So asset to degrade if it's that also in we it X. market, peel maybe to flow

probably just got which if so multiple lap that is you And low. a use to for radio, X you

cash right? needed [ different a then that's It's gives need mean, million I it. But we you $X somebody like you're So cash for million X If of lose for something, netting cash we you $X it, today, and flow worth the ]. the story. don't not

those yes, million to $XX we've inbounds. couple of -- So somebody for. nothing we've wants -- got but nobody a pay got But that

Operator

[Operator with of move can Instructions] to we Marlene Next, Bank Pereira America.

Marlene Pereira

that ] my but that answered [ You've quick of just most correct? you that's The mentioned, questions, X.XX a follow-up. for Is leverage XQ.

Peter Thompson

Correct.

Marlene Pereira

reduction just year, Okay. I [ actually maybe around in then around you'll debt end And of moving by mean... that some some Does incremental be the or cash? X.X ]. incorporate

Peter Thompson

is... Well, the fact

Marlene Pereira

EBITDA, the With yes.

Peter Thompson

Yes.

and QX fact and the the the at moving where of was between or no? question, we're upwards now So, between that it's that end year, the

Marlene Pereira

if incremental [ any bit? just You're around cash Or And moving asking year-end around ] considers just is the was XQ. like reduction? X.X debt X.XX for ] [ I by a it

Peter Thompson

No.

Marlene Pereira

Okay.

Peter Thompson

to the going And we moving is back obviously, of cash said, because it's of No, soft political. the lack as around. half, be

to So and $X you political. LTM roll we QX, it, when going into of be missing then million QX, we're

So we'll a LTM have by we lower QX. into just the time EBITDA roll

Marlene Pereira

last it it Got number out a of that year? flow for context it And in anything was comments or you'd next the it. obviously, the whether free I [ in mentioned on think area, kind mid-XX else, comes depended for CapEx with you maybe had and CapEx that potentially then are to, thinking the be million any call, cash where ] year be willing parts, that you Richmond still And to then moving about share? of

Peter Thompson

Yes.

now. remediate consultants cleaning up weaknesses I part of moment of million a than was $X And as we've and then there a at that material bunch say stuff there. had lower that's bunch the think the I all to million it's of and referendum the hire kind $X of rising of just costs. to

of million million, things those cash. $XX X been so $X -- that's have So

So it's slightly less. think I

onetime to consolidate as to Although facilities out.On pointing of that's So both equipment. going budgets, sort dollars big CapEx, of one through Indianapolis, in we together we're and buy of some got said, know of a worth millions Alfred right? the -- those new that's don't put we and those cost going are we only, need things to couple the

at million. $X moment, the I year. next think So CapEx run million be we kind $XX-ish a normally looking at at We of might

to would manage a we it's for higher in CapEx but that the So be preliminary. tend And manner. little tight year, next very a

to things So to on facility. year Indianapolis the that we need do we other not money next there the may be if spend choose some

Operator

And Steiner go with Paribas. next ] [ to BNP Hal we'll

Unknown Analyst

is talking just you the heading of like into in and carriage what maybe terms of like the could any hoping, of just renewals, about really your is be timing all TV bit the the ones affiliate like I through on big could maybe what the time of there strategy spend -- was little and side fees a what guess, I network just any run business that? focusing

Alfred Liggins

just we another Carriage October, just of for renewed Verizon. years. renewed them and couple renewals, They were in up we

Jody? the is till 'XX. of Right, not renewal Our end next carriage

Jody Drewer

of In quarter third the 'XX.

Alfred Liggins

In of 'XX. the third quarter

big got one is small the up, X-year then streamer a we we 'XX 'XX. of But end one the on to that next small. 'XX one to the first our end -- of and of small deals a one up is extension don't the got we but, that we did -- got come So come beginning it's

Jody Drewer

our Yes. was And third up through of quarter base that's sub 'XX. locked the XX% of

Unknown Analyst

That's it. Got great.

how helpful. a just the like about mean, bundle you and can bundle, I sort there is your of about what that and little of stay would just, is in very you if the sort concern think color you could guess about of of your how positioning is That's maybe give I sort about just think Okay. position there what right? just ability sort give And talk to help. and that and of lot color any evolves. a about you

Alfred Liggins

also an But we've owned feel I network. I changed. there a that think been fact always been independent it. is has a an we never we've mean, environment been content, I I that we're of group. which big entity And African-American has we have. mean, mean, diverse more that I mean, the important. yes, do good think the part move about towards I

the we're we're so, relationships YouTube mean, at point on not I TV Hulu all great for except in Certainly not And operators time. DISH. we've with this got on or

to including not ago. we -- environment believe CLEO [indiscernible]. I the we I nothing to to got So to try weeks as TV figure But don't mean, mean, has I us dramatically. going now I and did that led But, changed am out. see that valuable, know operators two renewal the that has One just still we

Unknown Analyst

a could kind you more speak there's that bit business maybe there if there maybe out lot mean, and I really but the of add easily a appreciate targets side and would properties of me I the could just obviously And to bit I helpful. could I -- would've be it. with the about to pressures, that be of slowing what some is I Got a what digital business, of said little affirmation. imagined, that on you of ability guess Any cyclical grow get color your give so you color some that little in? more

Alfred Liggins

right. that right? tricky, ad is There's happy digital And right. I'm and it's profitable, yes, so revenue pressures so you're --

the part to environment. slowing right about now, algorithms. people's their and that acquisitions sizes depending you decently change how pressures, big got Meta the on dramatically think The is prioritize we've with platforms been or content so revenue So beside that ad audience and particularly digital, change of doing Google but in I tricky

go buy of their and have they're Like, natural something. digital or platforms traffic, you their platform. their traffic organic some go right? own dotcom getting few out Very these So could source other from to

own own remember about when big the and their thing their and their read monetize significantly pointed BuzzFeed's call, was I that their conference reduced they content in their talking think think, over I've #X out last it's the being something I are they to verticals ability were I why?And or down prioritizing platforms third-party, revenue ad content.

We acquisitions? page whatever, XX and changed, algorithm's buy that out an So you It's later, you visitors cut unique mean digital really, You has acquisitions. and be got us really half, million happened X go on and in think right. and something at something what views, then careful. look been every that's look for XXX and scale. happens. does That to to smaller so But year. We that at million you've -- months really, a

a In up doing this year were deal public around fact, else. ended company somewhere a we nosing that

scale so. do want So, yes, tricky, to it, to to it's figure that out we but how

Unknown Analyst

I understand.

Alfred Liggins

up and right? be we're after for But -- -- doing can any guys digital lastly, do a lastly like X then don't lost was these of going these to cash So top million they anything we It's make they right? revenue, to you had value and space, that. of problem. a you flow want and money. them give and question was bought for million a they they the a money, in remember a acquisitions, big -- BuzzFeed never And just this just just urban that. you -- open don't $XXX that $XXX more of company a them. one make want lot operator, like to buyers, $XX paid long earlier So complex, said -- BuzzFeed time, content which to And like publishers million I the brand want we they yes, tend to I and

Unknown Analyst

understand. I Yes.

If of the you repurchase to the think just the the bonds, doing left the any needed I ask terms repurchase have that correct? no -- indenture, your -- with is, the you make of -- But you'll I time have by offer I an proceeds to ask through maybe if sort you be excess amount the investments would be to Is other you'll going -- proceeds guess, before you excess mind, to could switch it that I -- question. on to make offer. for belief X of just was last excess and back buybacks able to you'll fulfill if would proceeds. debt

Alfred Liggins

make that that assets, just aren't some right. our Like, there towards investments transaction count in that but invested that Houston know, radio number programming don't we investments those things counts, is there's buying We of that a count. we've

happen. So, go not out going million got yesterday, the we're at stupid right don't million now offer at not less going to sitting as point, million that But And already, $XX with of we're we're know significantly par. with. just between close to to to not something investible going bonds so back me $XXX I a buy we It's your than that That's now deal April. to regular to have to said we basis. basket there like $XXX for probably on to a you But happen to already. if and something of that sheltered, we and stuff acquisition invest what's make Peter in don't will,

Operator

here Baker And [ from Bradd our question ]. Fort last with will Kern come

Unknown Analyst

or minority maybe gaming partner of -- but some other of the investment, on partner, cash, in sort a types provider, you're you in endeavor So a of in like solutions being the not of whether would it's sort those you're you're you to of something opportunities? partner even Churchill How minority a be another Downs as use not about brought you capital open where either another, there's sort of strategic? control think

Alfred Liggins

Yes. We would like something look that. at

spoiled bit off cash like top deal a the off the are we revenue. However, our return us because MGM a of gaming bat gave

those But, they in to a X kind unique at gaming looked company, were stuff deal of with we were subordinated got situations and value equity it -- like was it. we public money first was wanted under up-valuing we of million was. had and us So year. they us traditional $XX one what really a and their they bunch or put whole money million where investment from of And small out, that like in and it like $XX was -- they the it invest like a

we're it.And And so, spoiled. so, we like didn't

like would yes, look would minority investor. a being we at So we --

it of want much and is going making want I to and is paid real passed the that, for up got down of or a where something would equity time seen one period be behind on out think -- and those like no higher. situations equity return, not to if significant restricted we're investment dividends payments But when ended that debt sitting and a XX% you'd there two you'd both. where a be we we've investments we

Unknown Analyst

makes discipline The Appreciate Okay. it. sense.

Operator

for And today. using for the AT&T conference that for Thanks does participation conclude and your Teleconference.

disconnect. now may You

Urban One (UONE) 7 Dec 232023 Q2 Earnings call transcript