ETM - Earnings call transcript Q1 2018

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Operator

Good morning and welcome to Entercom's First Quarter 2018 Earnings Release Conference Call. All participants will be in a listen-only mode. This conference is being recorded. I would like to introduce your first speaker for today's call, Mr. Rich Schmaeling, CFO and Executive Vice President. begin. may you Sir,

Rich Schmaeling

replay risks company Good like company's I'd first welcome This conclusion recorded, conference Prima. company at upon statements, on welcome forward-looking such shortly website quarter you to results are call. after a based being is by -- you today's call number call materially projected. be in morning you, available like any our everyone. of and to earnings telephone will Thank from to available The our make noted expectations and and could differ involve current replay actual the release. uncertainties. Should the those statements our

XX-Q, concerning described We assume XX-K, differ that factors any actual cause no materially obligation information to in results statements. SEC are company's update to Form and Additional the forward-looking X-K. could on filings

During measures. we David now entercom.com measures financial information. forma to We website Field. certain a financial refer and reconciliation this non-GAAP at may over to our such the call of pro for to call, refer other turn you I'll

David Field

Thanks Welcome first call. earnings to everyone. Rich. quarter our Good morning

of monthly top the brands have in coverage and markets. today million short number the months Just of one We're XXX XX% of prominent creator we elapsed most country's persons audio largest of local one local U.S. live content. is of original a country's XX-plus merger. XXX the listeners with portfolio the many of have and closed on broadcasters country's since radio two six Entercom not stations, the including XX of radio nearly

share combined premier been behind and value would capabilities two set creation have meaningful are scale radio, the to just and a live ahead the podcaster growth effectively across our the drive at good of or This every a always a number the more growth are tangible entity conviction our propel we've steps principally unrivaled meaningful of have merger NPR. other going events primary ad revenue dollars. We of media implementing leader with and closing, schedule larger drivers. are through our aspect been hard series that the and for and on sports also of in of Since progress growth and to news essentially of We're and about making in work and digital U.S. our forward each plans. action has platforms we compete plans extensive

we're strong drive doesn't to financial said, In initiatives capabilities a We organization have the a future ratings team help what with sales built launching and goals. driving accomplished picture that improving and summary, happy will we've date. success. capture terrific revenue that powerful a quarter paint of making and leadership we're really towards our our progress that our are underlying And growth, results number first

boldly, quickly was incur plan and and always revenues Our would impact move understanding change, driving some expenses. transformational that negatively we to temporarily added

report firm U.S. significant the also that growth who of those and of issues due the traffic amount year. As expanded USTN on of by financial company some contractually quarter of Unfortunately, exclusion known second many temporary Traffic also has to the a $XX then across and that follow inventory which soft inventory is stated a the of notably, you adversely until to in our move there the conditions meaningfully factors, stations across result our million know, needle advertising we the didn't most at consistently advertisers. we expect have impacted general topline half our in local is resell us revenue were Network. to actively acquired

not These that quarter $XX cash due fourth USTN. USTN revenues fourth us issues recognize to significant issues revenues recall by reported quarter earnings that quarter, the reducing we to and call, million. not announced financial first may revenues of at in any we did $X flow recognize now You our require on million

revenues first were our quarter result, a down As X.X%. same-station

of improving you it closely news situation, their important forward. to our have long-term exclude is Kaplan, notes The traffic if been this on related we're paced we the and they insights later effective, However, on be markets will to USTN impact over situation is enable that to first call. digital adjustment, few quarter. and in local. Miller should not as with of According optimistic underlying the been will down both first quarter. the management outperformed us revenues there national from team the the have just note working no that X% revenues and this in our are to which is address meaningful provide USTN premium a and that unfortunate additional path resume would as their inventory going increasingly value X%. And And A down

categories best-performing drug lottery Our were casino financial services, and stores. and

Revenues of which formats due also advertisers profile. impact by the until brands the were the as Our closing consistent X% is six new It have Philadelphia, since for were Charlotte. and experience typical wait reduction a new significant revenues the best reduced initial to launched performing merger. establish markets to formats a ratings we Detroit, in

another in second half are by business these integrity the discontinuing reduced also year. of the as because were revenue rate expect be to valuable inventory. bad we practice our announced resellers, undermines significantly during November stations low it pricing contribute of We the growth with to X% we'll which we we a of business Revenues doing and amount reduced the

this will inventories, that channels these growth cutting taking future sell higher revenue on capitalize the of scale. hurts our While we as new as value we in inventory developing are sales revenue reemerging the run, we short in channel back control enhance this

target million synergy of cost cost slightly side, captured cost $XX To-date, we're on of about the announced. On we have $XXX than run-rate of cost we previously greater a that million. our schedule the million basis $XXX capturing or ahead synergies of in in net synergies XX% have gross

higher in were to related marketing, non-recurring costs of which $XX program expenses, costs various the work other by items research, the QX and and is temporary reported the and business in integration in surge our investments our However, success transformational significantly other synergies. million over inflated masked projects, that

quarter investments cost other ad is expect been such the and We making cost the our transformational progress expenses, changes of Excluding investment and to of decline the intense surge USTN and combined a ahead retooling Rich the the underlying are financially the massed organization. pace weak issues, we investment have in have across to we format to and our is grow. our on conviction cause still color confidence provide on operational that do, have and and strategies confluence lots one-time future pursuit potential synergies quarter. would Further, about but down to additional our in in in and continue track of enhancements and of his X% the receives remain goals. as we our our the unwavering remarks. our unfortunate during weak some our expenses conditions, work our quarters will It in

we in highlights the five progress new driving including major in of brands now have I'd and temporary that three to formats, of we're initiatives mentioned launched the growth capabilities emerging take share as our these and driving on like markets. earlier brands, few forward factors and meaningful, growth As strong look we X We're the compelling ratings. to I hold, exciting assets, a abate making. growth company. we top this sustainable capitalize

week, New the emerged well. rated success JAMS brands the brought and three And pleased a just the as has of sports progress we with other across station York. One worst true icon, one in Francesa, as story, back to Chicago, WFAN we're last radio Mike number in to our new first

We was in have in additions San reflection R. to The made Awards and that content Diego to XX other joining just unrivaled weeks, Entercom has over Gwynn mornings also Jr. Tony our of Lover, in to It news. Chicago the host as Regional a received Fan leader including the radio in afternoons. past position radio notable excellence few Ed news joining announced for local Murrow JAMS the Edward journalism, host

significant with on repeated year large X% we of another data in significant Ratings critical month a January, we did post-merger. are share X% efforts stations. leading have ratings Nielsen February, our the are feat revenues brands expect achieved In such and And our a three enhancing particularly we of our of PPM growth strong March, focused ratings growth. very a it indicator bolster We that group, to Our radio of and growth across months growth. the And now station number generating in again. half in increase we across ratings revenue rating of second beyond.

enormous former or been have efforts, following all CBS past few on completed made have the We of our virtually integration the months at the progress over stations. completed

automation system marketing services. a the new to transitioned traffic billing set and system, new a of CRM products We platform, have a new salesforce and digital and

CBS exited the We Systems have branded portals of new have network local and of TV radio the Network CBS web the all a websites combined and former platform. independently launched transitioned new stations. for CBS onto And off we

campaigns. and demonstrate results also We of to this affirmation great the for Entercom of us Entercom's from proprietary tangible product customers. the providing that effectiveness seeing advertisers is a enables powerful We're effectiveness launched product Analytics, radio their early which

which CBS user products It major platform. have and listening will our the hours I'm pleased at content to of release included report all new our and important believe we new assets. an and Radio but invest early, also downloads been attribution, forward. of than ad launched weekly by our doubled. continue CadenceXX will analytics growth March, more excited Entercom, radio.com, I'm radio.com, platform full In and digital We of a this a and going still innovate that redesign, be per distribution and data, driver in podcasting progress former integration total primary is to

we and effort From believed our vice one radio.com. service also of beginning, senior have set on radio XX greatest unique to markets develop capabilities, leading powerful the new the original unrivaled the our two pro development of presence sports leadership and that stations marketing radio.com so local of general development top home emerge a and -- our of business we strong Entertainment, most most country's as source of in with number national launching including leading is effort. at national and a and teams. adding scale-driven the capitalize country's to closer of manager to audio in and the and for our to home XX and of the luxury assets people.com, powerful of the the former moved the Head Times valuable and a States to And leading brand we additional Operation Digital team there's talent, in America's to leadership great including iconic executive opportunity a As radio brands digital have United travel many Strategy think live brands, our podcaster, in recent future. sports content bolster business We're president opportunities position of and and the across Operations includes which weeks, getting

League States, our most the its radio begin radio medium mentioned be stepped the I being well recently our undervalued ad working March, the develop development number Major our team the Ad month. we fact highest up the medium. to beneath us call, our sales on We've enable join the development team United and later last multipage of in ROI launching head recruited emerged reach in Baseball's We're and has ahead. advocacy of efforts lead as publications the to one class other punching And often this partnership in arguably the capabilities months Age national our that our corporate national As second market to efforts. will spoken efforts, any this despite medium with and build weight have major radio in impact and to planning of help we

Entercom with other I'm significant. other characteristics. on Audio ad opportunity we're announce, highly as number excited advertisers we is the now decision I'm As dollars makers ROI, frustrated morning and for to share media based cautiously significant advertisers and shifting of reach, will being to believe marketers we radio their into senior radio's Network. which on with real to optimistic of launched spending increasingly disrupted, its total also this consider radio across conversations become having are many more options capitalize the the the compelling grow

radio and market. scale network now billion us to reach enable participate in Our directly the $X

It which power As pricing the our channels shifting a discount to call, the note are like development. I higher we our single our the yield that that undermines poor adding inventory into place. be ad just meaningfully into resellers process national value transitioning inventory will out and earlier channels discontinuing compete and our the with to and inventory we of unit additional of not we sales important business enhancing marketplace, in new noted of inventory sales a deep as by our network on devalues in market product of is

investments without the Francisco, we're summary, order benefit pleased improvements in QX and positioning we've of USTN XXXX it as for mark we their of about and we've markets, at of working second including knowing has to be to ahead we're and San while situation financially, disruption to in a ahead been in well. quarter. advertising our Looking And And in change positive with on still and capitalize of second optimistic conditions growth encouraged are impact and currently We're situation. drivers second key is our also growth the number second first and ratings, made in excluding pacing our company Los Miami. Angeles, the of new where the ad line expected work half we're Unfortunately, the always for signs and we're USTN. our low the about took the heading up which enhancements growth drivers. progress, We national pacing progress and meaningful our the we brunt market toll creation. is with quarter, value actively organizational from full performance, the the in In beyond. numerous Houston, as and that in turned of I'm for company optimistic improvement look will the by growing quarter improvement begin seeing reflect it on. USTN some the investment, we revenues would the cautiously One, the soft

In we political addition, improve, we contested expect particularly enter to cycle. the general ad hotly climate as heat the of

progress challenges that, the future. in it Finally, synergies the your transformational Rich that questions. our temporary our temporary emerge accelerate. drove over to the and improvements up will in short, quarter the enabling And In before turn investment recede substantially answer and with surge solid will and first abate value while cost expense growth we will creation I'll

Rich Schmaeling

our Thank ex-political. you, the quarter David. were percentage same-station about revenues down first basis, were a On net or X.X% down same

$XX to mentioned, a to revenues. issue our the As United And pay. not ability recognizing for were XQ of this post impacted million revenues us due the to year-over-year Network result USTN, net for uncertainty due David negatively discrete X.X%, States accounts as Entercom or same-station USTN's of our in Traffic revenues about but decline

in with you our inventory. may of advertising traffic have portion Entercom for As USTN to and a pay sales other recall, they network traffic commitment services, provides advertising short a exchange Entercom specified and duration large payments

David, to basis. assisting meaningful its gain other affiliates. with For advertisers, broadcasters new and stake and obligations to of has via restructuring pricing management. Entercom radio and negotiated opened the pay amounts of year, payment will for to be year-over-year, accounting be our the primarily valuable in contractual the this traffic to XXXX, able recognition And working reduction is catch sales Entercom actions, acquired its of we probable and if from by a that are that its restructuring management deals that gives unable at for some as execute mentioned amidst executed expected that being are periods. at unless advertising management to to relief network effect buyer to aggressive with this beginning broadcast our timely in paid this revenues USTN first allow us, through it X% And company traffic what company The for new with USTN amounts although in consummate from fall the has went which be by other Under shortfall our USTN own reports. reach And able greater planned, $XX the in all is including to the with conclude and a to unable failed. substantially which its to in to million able what revenue translates previously similar of its USTN is others revenues business expect to of that revenues unable recognize other to terms through that we a be we as equity into relationships USTN, operate is its and revenues replace for inventory operations, will go affiliates, team efforts. up that on profitably complete company are exchange are full consideration. restructuring, closely short Entercom revenues to a for by offers paid model, late had recognize we the expected to U.S. our things significant if the future could company The recognized have to successfully the plans, company's an new they we worked Australian recently for USTN and of strategy year, through share restructuring national company rapidly if quarter. about not standard to these market we sponsored about an even

expect $XX we meaningfully be million gap. we close year, able to this Next that will

same-station revenues XQ environment. Our soft advertising also for were local by impacted

we it an will storms advertising spending the pocketbook tax across as we first benefit We the local accelerate environment. cut weak in demand. As advertising X.X%, know, move past will the the this consumer into believe growth and likely the is spending this numerous you as people their country believe week that in feel that late quarter likely winter and of and local consumer was translated a during anemic

pricing. hotly look support In that demand a will inventory our added drive contested market to against political we season will forward stronger addition, also and

remaining that point Entercom X decline with consistent to reported the flips, in where decline important can by is our attributed size the formats a the is note, also of one as about of about markets David, revenue of and that's X% be to decline it's think I XQ radio present. mentioned

beating look that, in the Although, CBS the with as we development the growth forward anyway, of we're performs sales to mean size Entercom fully of a to strategy. our does and markets whole, numerous began legacy national the as plus business our the scale We celebrating markets in not market. XQ quarters about consistent taken initiatives future this market realize Radio added benefits our with

expenses. to Moving

M&A million include and of reported $XXX.X operating Our total came million as for quarter at the restructuring in $XX.X integration, expenses and costs.

Excluding to of cash have million income, expect noncash came forma surged conform operating and $X expense speed at to total the quarter. operating cash about total in of change had number of also first accounting realized what $XXX.X expenses combined same-station we recorded quarter up in D&A quarters, new as items our charges combined pro accounting same-station to X.X% a these and million company's expenses from adjusting number in million would basis synergies the costs, GAAP. have like in a been miscellaneous X% our and out we Normalizing future $XXX.X on or about net same-station to down to incur Entercom, investments XXXX. these and this In in items first a cost have

Focusing in grow annual more our is million integration improve savings as about our we remainder after of we million that net cost synergies $XX gross slightly synergies point this the target deliver of as target of synergy realized on time, investments. energy year-over-year run our basis. savings significantly and than plan. XXXX during will Of each million comfortably cost to of $XX cost greater performance achieve continue we specifically program, of on expect realized to And of run-rate that quarter, this of a our our synergies have our cost cost ahead $XXX year,

entered and compliance $X.XX Turning total to times. billion approximately basis of net with a on the outstanding leverage quarter debt We our was X.X financial our position.

our Our four senior to secured times was X.X covenant leverXage times. compared as of

earnings held regard, stock Bonneville resume previously haven't we fourth $XX repurchased of our since release getting in and being job but stated, a forward Class since XX, average of at XQ Xth. that million Sacramento expect an X.X as the for March quarter previously leverage operated repurchasing per trust, stations to on on stock closing one later As agreement. reported, brokerage shares date price down eight at total date, of that move times. we A In on X.X and million separately shares remaining the merger currently a is our share, our net our our divestitures to purchased to a $XX.XX we our have of that may under divestiture common November added time We by in Francisco are of target San during been close

site, We're divestitures pay assets, to expected plan generate these stated, are to $XXX from redundant down in million. tower to quarter And Chicago. Telus fourth about will we sales working about year that after-tax to expect previously which sell discussed Airport proceeds As now near also million, we debt. use proceeds of the total after-tax full our such now during including call $XX O'Hare

including capital up XQ CapEx full range integration-related expenditures, year were million, between and that ramp will expenditures that we and will million. year million and our expenditures Our as $XX $XX progresses expect $X our this

Before to questions, just to few I cover off return and wrap-up items. a I housekeeping want your

Radio included attention our if merger and as CBS You including have detail same-station forma noticed measures closed a of these of net adjusted last reconciliation the also revenues your may tables measures we that each our as and to call of you'll quarter X/X/XXXX. have I such in website find year. the for where of earnings release comparable EBITDA the pro in non-GAAP

our including release. want contact questions. now your the you at to go take relations that, that JCIR Prima, earnings leading broadcasters, we'll I and to has company. and you please? find With investor their highlight can Beasley, we've Finally, JCIR for top the with Nexstar to worked you provide to questions, information of engaged will services many

Operator

you. Thank sir. Yes

the [Operator question Ryvicker question-and-answer Marci first comes session. Instructions] We Wells from Fargo. will of Our now begin

open. now line is Your

Unidentified Analyst

how Entercom in Are old financials it you're of been couple morning. one stations out And and Good other? and QX? [Indiscernible] trends And pacing in This CBS in is there with you have have not any impact seeing filling one? questions. new parse your I the contract your Radio Can compared USTN the does how differently? Marci. your a for does

David Field

take and I'll and CBS first separately. legacy cover to We're later. question breaking Entercom Rich Entercom going legacy or out the be the and can not CBS

We company that Rich? in fashion. forward are one proceed it and will we

Rich Schmaeling

amended that as USTN this relationship part them an have them contractual in with USTN are we have working in announced efforts. by new our do on Yes, to with as now partnership of stake restructuring We equity the assist and contract. them

We have taken we've a do be about to price expected. concession in XXXX. full million And than we've traffic XXXX, year told revenues $XX our less you previously that we for expect what

David Field

can landed me landing, And the is look the across a you legacy let and should overall with our think that if evolution I markets, and performance just overall in line our where made. moment elaborate, I we of mean just we I market to in just you were USTN. that terms that the compare And see excluding platforms. think I quarter much the our at pretty on think you about where you comment for

Unidentified Analyst

you. Got Thank it.

Operator

Thank you.

Our next comes Watts Bank. Deutsche from of Aaron question

line is open. now Your

Aaron Watts

year for for A preliminary I'll revenue was a forecast David, in to heard couple me. you Thanks bigger for Hi on. XXXX which them. X%, for X% -- may gave trend me a guys. picture. down I having start break certainly full

that we be have that closer revenues that should and today the year? still Or that about do start given Entercom good you thinking for sit can for get As optimism where you about, a with do the feel cited you've to like to year? you you talked well, you as the full year ballpark lift political on for the that's flat the

David Field

problem based seeing, optimism. we're absolutely the QX masked levels. company. on across it's progress making what many, enhancements the making And engines, we're right. the many the again, and the growth hearing results I what we're the on underlying we're And have is And

you we're months And so stronger to company a quite ago. were -- our people, question, six position a they're headed. not than we today where about no excited if much And talk we're as in we're

beyond said, as the we go So, we've as stronger forward and much year look into of for we back performance the then half XXXX. into

Rich Schmaeling

weak. weak to particularly X% it spending the full and XQ close this a improve. you being just up for year environment. see across some up, to going in X.X% quarter. consumer to environment And when Aaron, only XXXX, in we're -- I quarter the the And that pick optimistic was X% compared on to to fourth strengthening really is starting national advertising there's And and signs was think -- of are look

Aaron Watts

a the there doesn't be help as to this out that on as are point? your potential that share Is much of little performance? bit market a not grow on if that drive some at market even could there part think gains you Or you counting

Rich Schmaeling

there the having business into be client far to most it value develop it a industry, grow medium and position in a and is announced and the we're development undervalued are team, be of with United -- network capabilities about again, so we value with this pie. there and get with advertisers. we're the enhance Absolutely. major of sure we We remember much new amount shared the substantial in developing believe and outside second we're of scale is And And today, again, opportunities in within conversations opportunity share talking now the a their of of although, here and as a the so our building, to capitalize on can with about of and the our -- scale, buy. are really States And ad it that's how half those happen vehicles gains year. as we're media and with the and position of to not and proposition the a radio remains talking which overall value we're the which industry a -- we about this radio We're that away relative part forth. it. the expect It's more we national our the about morning strong now

Rich Schmaeling

those X% But across our first we for to why share should which the our markets in stations important about excited that market. existing teams are largest And gain additional ratings to to markets. our that largest also market PPM that's those say that very markets. or the and it's And within quarter, bringing up share ratings revenue using we radio are also momentum that sales do were drive the expect

think we both and are both So, it's important.

Aaron Watts

helpful. if my moment. in could for and cut one talked and put leverage half on one, Okay, three you've Rich, And then about times I a it a that's sneak ahead target. your last

in by trying year to had the past there get of the end think I you XXXX. mentioned the

now of proceeds that year the can Given year? like the the you you start use down to and your of do end these intention pay some to feel to non-strategic still balancing softer the maybe that asset by metric get to with sale debt,

Rich Schmaeling

doubt. job get there's us the problems for And and going longer a USTN. goal. with have our bit as we've Though, we're softer was stated get XQ No, our to to goal. anticipate all no to that's accordingly. sure from And that one our nick little to long, we're we're But And focusing that's we perspective, it's a so had take we can not did expected. than

Aaron Watts

for time. Okay. Thanks the

Operator

from Thank Morgan. Avi Steiner JP our you. comes And of next question

Your line is now open.

Avi Steiner

the Good questions. morning. Thanks for taking

of gave detail. guys a lot You

So, I of this. missed may have some

QX? relative auto in get I that does Can apologize. to I repetitive, in placings QX look it's if how and So, your

Rich Schmaeling

were the part We in of the that more the sector. question? We second quarter. with the sectors the three not break Auto overall positive. your sort of What did line out listed most individual in was was

Avi Steiner

how going looks to it second I All but for the that's to as QX, was for it right. give going fine. not quarter, you're It's ask --

Rich Schmaeling

we give forward-looking don't Yes, on categories. information

Avi Steiner

revenue you're But do you are Group. know groups, know upfront about a have the but assume you I And CBS reformats And all I think out all in X% happen talked contribute problem. CBS don't versus stations stations. reformates stations I a parse within with time those hit the I begin to these Not Entercom. the when again?

David Field

you bit Avi, Yes, of there, gist out I a broke the but question. the I got little think

retooling of in our that that stations the aggregated changes you're an knew and five help top I'd of And of to we growth it's contribute of take those initiatives. And format So, second that's quarter as We're but grow going do have and the of done. the in six, X% said, fairly and to why say it that half three as magnitude that's fine. we've format impact had positively us radio the part the year. expect we We first it unprecedented markets. changes happen, including

Avi Steiner

Okay, ahead, sorry. great. And go --

Rich Schmaeling

say, now I of performance we've our CBS the in well Radio across at that some look a just bit -- of that's interesting, It's lift pattern. first performs yes, done. the variability in CBS when quite discern in performance, there's of seen markets -- nice at one top And you company you the former we a we're a to being want lot see But quarter country, with work we've look markets. great Radio and some market. hard to

Avi Steiner

me. color. one that for I Very appreciate last

Just for that you're million a clarification. the USTN associated with QX, XXX% talking The the $XX that? the $XX about is million year. some from bottom-line or Is in for there costs

Rich Schmaeling

So, as it content, that's do And revenue. fixed. of have traffic the view essentially cost but with we we net associated production

shift. million to $XX EBITDA -- their a straight it lose through and are writing And that of lot. they we do but we revenue, it hurts think So, quickly if falls

company riding have trouble. collaboratively fast. owned ship GTN, reach, valuable We're to they We lot lot and proposition. that with are a of them got of them, got dates have that them previously, meet just overly a some product scale, Unfortunately, a the that aggressive working they it's in

Avi Steiner

guys. Thanks

Operator

you. Thank

from question Fargo. comes of next Wells Hebert Our David

line Your now is open.

Davis Hebert

if a good said any be unrealized And great. Rich, offer questions. in you Hi, clarification would taking That times. synergies calculation? could you Thanks morning. that are I for that if think leverage, on the I could get X.X

Rich Schmaeling

Yes, it of basis. calculation million over those that unrealized that part of a on And $XXX so compliance are is synergies X.X it's times. --

Davis Hebert

$XXX $XXX I million, the it's than, million, not if to $XXX less full million area? just that in similar the million guess, But $XXX

Rich Schmaeling

for Well, The there amount our that are two million credit is different after number The gross is use $XXX investments. under permitted purposes we're a compliance to numbers. net agreement synergies.

different they So, two are numbers.

Davis Hebert

are debt parts reach then end of And some Okay, asset target Do target. the balance sales, moving you that's whether debt with the know your And there by of okay. keeping at trying year? you're that any or $X.XX And right debt net now mind the debt gross to leverage sort net in et have cetera. you're I of billion.

Rich Schmaeling

projections, course, end we at be internal secured provide to And don't the I look we do do. sure my we at Yes, leverage our of But forward ratio this senior guidance. insight expect of year. when comfortably

Davis Hebert

covenant level Inside the or?

Rich Schmaeling

Yes.

Davis Hebert

then digital less and Are be trajectory the kind or basis. on Just events? integration? looking then How a think there on do you've And of I the to helpful. side, is pro you. you events. Thank more of And Okay. terms on around digital in going would the event historically forma had X,XXX

David Field

the making Yes, on progress great we're front. so digital

on portals improvement And is our taking very digital we've really the still first good Digital line earlier, that that. schedule strides of ourselves excited mentioned feeling app where solid making ahead portfolio. about product We're us. that other I CBS which as the quarter. now in facets and having great well of during of off as As weaned all radio.com, And we're our SmartReach about

that's So, we portfolio that going. of about very feel assets good where and

we sense. of to forward. On events same where as the and which our We portfolio going it fits approach turning productive. events events not be it But are to beautifully It's characteristics as on time, to nice about -- it it we're are looking make at think the side, add model We're back event also the business expect. business. be growth selectively a might with excited going is think management going you

Davis Hebert

one Okay. And last one just housekeeping. then on

or the expectation Did this. for guidance tax missed cash I give if you sorry year? And

Rich Schmaeling

previously, We did say, low-XXs.

Davis Hebert

Low-XXs, Thanks so much. okay.

Operator

Thank you.

of question next comes Markets. Capital NOBLE Michael Kupinski Our from

line Your is open. now

Michael Kupinski

radio They would've was you typical was there advertisers quarter. that were that the want talk indicated radio know particular. namely in first spend. McDonald's McDonald's spent like operators affected I to like first key specific you. in some ad any that but I XX% there if had wondering unusual didn't of Thank quarter categories about categories their only some the

David Field

a game, a that way. in, there is network, There in some Yes, new in accounts Michael. the And that come about. we're going their who've to big And going paltry again others for the are as have cases. spent couple with two advertisers companies right. that's the reduced switched couple conversations United be and of in excited of actually in to which forward. a And their a think advertisers bodes States. significantly forward radio in industry effective are address spending we profoundly well also now radio. more cited of something in I to think, a the sum We we We needs way, having the see into have well moves what with Companies -- as and that it's able really money we're and course, of scale largest all we spend and them think that opportunity have about excited part important in of radio making

Michael Kupinski

know might some David, marketing been you great radio around talk around that radio have wrap I that promoting advertising. for you Can and initiative. radio? you've success and about And advocate had a And marketing the you

David Field

as the out again, in number Yes, I Ad -- I new Age a insert We four ad be mean, next in page key of or of understand this important that media similar to And a that can because did part beginning would mix and we week. we're periodicals their a dropping there and a ad mentioned, is the it a across play ad coming is in campaign. enhance their are fall. bring really radio they value their think to that message metrics that a advertisers larger week

absolutely we in So, those traction see conversations.

robustly is others the progress and you're are going its You're yet, from pipeline not just that about as well. works not way that. hearing That we excited hearing forward that from but has into meaningfully me, see or

Michael Kupinski

at at on And marketing percent spend spend front? look of how revenues. particular, that you your look How we is forward, in going can it your a do

David Field

never publicly. we've that Well, discussed

in on we than the we spent have As first prior mentioned, quarter more money during marketing year.

have we're to fits amount which that in going us forecast of I not area, think our moderate spending think forward, model, but strategic the marketing plans going might a you're as you are we what going to expect. see

Michael Kupinski

Yes. political was pro forma the What for XXXX?

Rich Schmaeling

in that year. have spend number X% total of is XXXX. the a in me, in don't front the political I range in non-presidential But

Michael Kupinski

Do -- you you. target guys for Got you are political do have -- this advertising a you year?

Rich Schmaeling

service this think new interesting a some that provide market that better will is capabilities capabilities opportunity. enhance really that -- our think to I advertisers year data voters. we bring in target about to to There's

that robust political think strongly. there think likely some to forward radio in a this the And proposition. and this cycle And to to our be cycle for that into to true, we been hopefully, we reporting share enhances we -- we're that cycle. lean bring innovation are So, gain pie. expectations advertising the is radio that's of gearing And up data has market of some terms to looking for

Michael Kupinski

you Got very you. Thank much.

Rich Schmaeling

You're welcome.

Operator

question from of comes our Osten Venator. you. And next Thank Brandon

now Your line is open.

Brandon Osten

Hey, guys. Good morning. Couple of questions.

a buyback you're from the that I corporation all, debt on of sort we of the point pause. down? that also reinitiate to asset see for is bit The $XX nice do guess First targeted of a picked sales, or the going the or that up that get buyback, corporation pay million left off. going family to is for at

Rich Schmaeling

for targeted down. It's pay debt

Brandon Osten

I like roughly Can be all, monthly guess give can -- that any commentary you USTN? anything Is QX like is of that you Okay. guys us QX. you us to or the roughly And the first overall cadence? on QX guys cadence? roughly QX on is give monthly you there any expect again, -- said color that like ex

David Field

Sure.

apples-and-apples, excluding I USTN. As said

So, we We're USTN. we are USTN. were -- announced line we We're excluding with down in trending. first quarter, the in four that in that quarter, excluding second

Brandon Osten

whether gray Okay. -- for issues. USTN, is cost an of sheet fixable a structure a or in guess, trying give of to there bit understand -- And terms there that I'm company, then can But whether the I street. just it's were it's just private it's you're sheet you balance a I how operational sense it issues or have us get a but balance issue? a revenue issues, of issues, area,

Rich Schmaeling

They the for Can profitable it's far timely and Essentially, basis. they ship. that And the over States, for a their out with USTN into for on executed that then USTN and much an United better their came we that's to And They it's track price. going. riding them relationships. adjust [ph]. business, looks them got that through a JGN by assist also arbitrage with best Entercom in to gain their was others was Radiate that are down when company they they on able due aggressive creation obligations skis company sign are position process like to right within to are fully with we it very our be largest blood, pay this share what that to client, of So, doing a financially. in company now inventory do get sell. process. and negotiations but essentially to up broadcasters will upside And buy in bought to XXXX. but a think their that We're paid and called strategy

David Field

nothing It's add I'll good with comment, more their Brad, just which wrong a is, there's one in. core business core business. they're

Auto As out of had Rich way. [ph] their just said, just they

Brandon Osten

cadence point know guys then a on I this in so disappointing obviously guys target Okay. revenue negotiating the terms guys terms plans? adjustments. moving to are the metrics we do I and we'll further your of, was it's in EBITDA to a there year-over-year like QX, -- that here. we you make rather ownership at more. the of done have And lot say by because of Obviously, our yet, where mean should revenues. north of and adjusted our -- your be We at expectations. okay, Like you fixable you not, be them the a where revenue there's look than to equity up with do this north watermark target, we're I'm quarterly that. do to plan collaborating point to with sure you okay, say, But with if growth them. EBITDA that adjustments, XX% -- forward quarter relative or if be low But of was, going need do point what say, is little parts should sure -- guess, it a need was of not your here. make to But not guys you need we XX% I'm and

David Field

to begin we the I various about earlier. about mentioned And But we're won't so that headed. that, here feel We we're felt good we're year, we as would we're give enhancements feel where again building you much second I I color get the that their to good only obviously, into making our what and as we publicly. There's of feel say make building, the half drivers progress. presence and we'll

efforts So, again, to from about have on organization. closely we enhance feel we're getting eyes our making we're where And on the the absolutely good various the ball the headed. results we're

Brandon Osten

Okay. Thanks guys.

David Field

Thanks Brandon.

Operator

our Sylvan Asset Lake Thank you. coming Management. of And from Alan last question Mitrani is

line open. Your is now

Alan Mitrani

you. Hi, thank

and I details. and -- shareholders new the giving think familiar shareholder outs about ins new with talking business still not a guys As you're not you are a had of of who lot way radio the

a there's as and a takes. and of more detail and dollars no in know future comparables, the in if little it trade a Just bit lot relates to bit back have a equity give as to puts the public might FYI, since can. more it helpful I you maybe size. be comps it's be if that you markets you May

equity just be disclosed So, helpful in slides, FYI, think, Have maybe the USTN? for I in might guys an stake future. that the some you

Rich Schmaeling

the not We given exact disclosed have set, characterized the meaningful, We've said the existence as it of percentage. but we we've stake.

Alan Mitrani

meaningful you of it what to park Okay. for in terms of Can to meaningful ball the shareholders Meaningful us ETM? or means. them

Rich Schmaeling

terms and of the Meaningful agreement that confidential. percent -- of company are not the

David Field

Meaningful percentage for of percentage right. the us, meaningful USTN, not a

Alan Mitrani

in political typical a year? it Okay. And then in X% is political non-political what a said year. What a you spend is

Rich Schmaeling

in presidential No, more year, year. so in the non-presidential It's point no, said that a greater. or I

David Field

off in presidential Rich In in little cycle has a a X% is other a words, in non-political it's said, X% year. as and political year; higher a year; basically

Alan Mitrani

you. event? market the then as about talked to Is covenants. just down factors? divestitures, these the we're comfortability you quarter piece now up land? going well Okay, of with closings Sacramento holding of the stay we to in the your pay it San Thank ratio. a this debt great. Francisco, definitely the mitigating What's second as with sure What's And leverage make Obviously,

David Field

Sure.

and leader us would indicated and consistently on have an you Francisco of November. to the update been succession they future transaction They Bonneville on issue. intending closed had Sacramento to would And front. issues of operating not-so-distant the we've hope radio in So, and San radio like are They church and that that. the the has internal that. towards the since for The stations, stations the in the passing in we that around an to acquire have merger

Alan Mitrani

pretty are you me if the I enough Okay. single-digit to in your And then, to deal is understand, revenues I If probably in which rate able not make the find add-ons and low guys years can a decline want couple business But the and realize to evangelist cost run of be the business, enough business period? the smart over profitable attracted grow you what of big cuts minds? are to deal going radio radio the in and does to investment. the

Rich Schmaeling

That's expectation. not our

understand broadly. I your radio one [Indiscernible] is So, first I point. quarter that think indicative of don't outlook for the

likely In to the fact, of believe really next to XX are there is going the share contrary, the pie positive that to months. radio ad lead XX to indicators gain people its in

the of typically. so don't question, premise And your it, understand but suggest

Alan Mitrani

question was worry my of premise the have it. I about to So, don't

going I years that I made to find have deal to grow take upside going couple in the care decline because care to going if you for of business of But of to have next and want competition somehow, why. don't know revenues worthwhile. whatever is it's able rate to upside. to itself. about be guys else, single-digit of can the cuts to The low take because run cost or you're you, the a If itself. That's enough other worry the

so downside these. this XX% from down far morning. business leverage The is large stock Your is pretty

about I'm it perspective. good So, a I asking it not from it. care that's asking back why from a perspective. I'm

David Field

believe Short yes. answer short yes. forward but trajectory said, going as that you if discussed, Again is, answer the all Rich is is to what the the we've for your is, question don't reasons

Alan Mitrani

it might out? to from you. by the now potentially, and has might like about end what and it out rational year in Okay, of the last that that environment done can. and just noises months one some your competitors the those positioned the there Thank be, look working of if what completive business over CBS to and the players. come the Can largest are I Is your one, XX and And are any maybe improvement competitive XX through be talk may -- two environment and from business you last now more months? of bankruptcy

David Field

you're one on is we've the and more proposition States. absolutely impacted spot believe talked to in situations that taking others. industry to as in against financial about ability bank a implications industry I as value this industry's are that about the extent and three a opportunities undervalued its to effectively and You're when a being rapid calls number relative And job as a negative most healthier these are so large is of others which that by a call their players mean, on talking And other compete proving and clip. and compete I industry bankruptcies, is United an has [Indiscernible] forth. do advantage does on. more the in an yet, three industry That pretty disrupted their that with more effectively of this rational and previous better media

the come. it think and things do industry I some a good so thing is for to hope better And

Alan Mitrani

their as Is for course, competitors? of competitors largest have better it's because there two you any bankrupt? it's to examples you just identifiable more can. that or your looking conceptually, tougher opposed improvement expect if might of little say that I'm know detail, than where a been expected specifically I to might healthy you

David Field

know exacerbated industry Yes, rational I some at that been in a fact situation competitive more you battles competitive is I in there's don't -- financial give the the how tangible our look pricing I other you industry, when mean healthier -- nature has the look the anything the I than terms going think of by think that again, status the I that of the it's of forward. think to of And more competitors. if industry

Alan Mitrani

you. Thank

David Field

you so Thank forward to in months. care. back now. Thank you. Bye everybody you, much. Take look we three reporting to Thank

Operator

That Thank participating. you concludes today's conference. for

disconnect. now may You

Audacy (AUDAQ) 12 May 182018 Q1 Earnings call transcript