ETM - Earnings call transcript Q4 2020

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Operator

Good morning, and welcome to Entercom's Fourth Quarter 2020 Earnings Release Conference Call. [Operator Instructions] This conference is being recorded. I would like to introduce your first speaker for today's call, Mr. Richard Schmaeling, CFO and Executive Vice President. Sir, you may begin.

Richard Schmaeling

Catherine. you, Thank fourth Entercom's conference call. Welcome quarter to earnings call being is recorded. This at our will call shortly telephone noted be replay company our and replay release. in available by today's A of on website number conclusion after available the the

may call, involve these which and are forward-looking this materially in uncertainties. and statements. The the During results make current from could projected upon differ company's statements, forward-looking company the expectations risks based company's actual those

materially XX-K, may differ described could company's may cause update risks to actual Risk SEC forward-looking the time information section in and except time from Additional factors required Factors company's to to the any statements, filings. concerning that annual be results law. report as uncertainties are of by assume the We obligation in as updated on be Form such no

reference this pro of I'll our page certain to CEO to Entercom. non-GAAP may financial at Investors David hand such website and we entercom.com of During We the With of Field, that, you financial reconciliations information. measures call, to make it refer measures. forma for other

David Field

Rich. morning, Thanks, for call. And joining Good thanks quarter fourth our everybody. earnings

miss and When COVID didn't began, in listeners sure beat that we making the care of pandemic, today's historically challenging team official like was we first everyone anniversary one-year the while how our off near some to call to and fared declaration start perspective sharing committed through we this a the ourselves serving of I'd safe, ensuring by taking on As has customers. of our Entercom period.

meaningfully and are We growth our transformation significantly with storm the just better that. pandemic accelerating positioned dedicated to well potential. and as to We company the not also ourselves track accomplish we but navigating to emerging on believe stronger from a enhanced effectively,

audio virtually and company dynamic of creator growing have and in expand events, we is market, years, music, news leadership a content, of content every entertainment number position and and digital, original segment into and the multiplatform, customer the our couple one strategically organization growth. purposefully to podcasting, accelerate of been audio scaled past Entercom network, the Today audience country’s sports. premium including with a relationships leading transforming broadcasting, the audio For well-positioned reach

about player and than how things and today in excited is growing lies our business. together very emerging company what company. are the across We as coming ahead a important an are evolving different before, audio Entercom

the company We move a launched plethora have to acquisitions, made of internal forward. number the strategic initiatives and of

businesses pandemic, its the businesses large network masked in optimistic and While is progress the the enormous sports the Rich on podcasting, a for and we your making headlines events of are questions. are and impact percentage quarter growing our of the on a pandemic by about turning our local over building fourth and recovery as of the share on will customers, betting strides before business few challenges the and digital I rapidly thoughts additional some it abates. advertising great to

predictive QL of announced analytics sports Group, of betting significant enhancement rapidly capabilities. platform a fourth sports quarter, and and completed the $XX we a emerging the data business acquisition During enabling for million, the betting Gaming our

of and Fan that importantly, We that $XXX and, XXXX quarter. add XX% represented revenues would quarter our essentially XX% our of of million Fourth I quarter partnership away sequentially also past quarter. were last revenues Duel. course, fourth third multi-year net went versus announced down versus all year, events this with X% up

we the third operating reduction XX% in $XX business in extensive prior enhancements million generated enabling to Our a model double $XX more yielded QX us versus year, of the our deliver adjusted expenses quarter. of million EBITDA than

products. marketing business, total streaming customers. digital Digital had successfully revenues million, a improving serve our podcasting growth fourth worth with while $XXX quarter annual our robust from versus prior in by growing listeners which we capabilities for During It the to quarter, achieved year, contribution our reductions has of strong of XX% and over podcasting, and XXXX XX% includes solid permanent our a led expense along in noting is XXXX. grown XX% business that now solutions to digital revenues,

client posted network premium scale, building are on quarter, Our lineup of to our radio reflecting also beginning business our exclusive growing a XX%, make and partially great progress outstanding we capitalizing national content. partnerships,

better our zones into of During share strength quarter and the various our spending. capabilities capitalize to and consolidated holistic national total the organization grow of focused to ad equipped a we sales emerging our national single on audio

earlier, our shut obviously been has As events noted business down.

a We see business are later this of hopeful will that return XXXX. partial we in

during has audiences deep radio business, our on Our one of declining XX% continuing the you local behalf economics, the is business and reflecting business about impacts the segments. customers. the pandemic, fundamentals been the the on When the best laggard, important quarter, we of think do activate local things of spot of

movies, substantial radio led go looking by on drive significantly places and audiences and rough casinos, is sporting theatres, restaurants, that business and events, to turn travel, fairs, events, the go places more. advertisers in and impact parks, business, disproportionately theme concerts, are things, nightclubs, do on Our stores, to has had advertising. local do gyms, a things Pandemics

pandemic medical of across our expectations. our forward sideline meet to each to customers their welcoming and Strategically, for in economic are spike and optimistic encouraged past couple months, back progress platforms. infections, pent-up quite increasingly demand they the deaths, as and of and we vaccinations, good hospitalizations current continue the key by the further accelerating the the look over trends, hindered recover we and While businesses. the economic rate We make progress

platform our of Our listener driving strong, experience multi-platform focus enhance on capitalize digital our another to radio our RADIO.COM, scale-driven all had the terrific and abundant across innovation are remain brands quarter we growth increasing and metrics. opportunities. on and

streak only RADIO.COM surged which growth, listening to grew extends our active the leading continuing prior that reached had total XX%. of mentioned earlier by monthly speaker hours had mid-XXXX. our positive hours. remains audio of of double-digit out year, by demand quarter or back fourth sold were listenership, we quarter by smart XX%, During also streaming quarter, users a trends over We essentially XXXX driven increasing RPMs, I but XX% not inventory and growth, per revenue our high. our streaming industry fourth again while and listenership very very strong digital in sales

of made very listeners more top on downloads, Our critical Yorker The our podcasting receive. Times, The to strong across acclaim, than from Triton continue reflected number Plenty shows XXXX, a XXX of our revenues, any New York Stone, the of quality other and had business also lists, Teen Time, Vogue, metrics, more. and all the best including is unique shows The A work our Atlantic, quarter Rolling we have in appeared publisher. RPMs. of New

XXXX. the number fact, Times Studios in one year and podcasts podcast Atlantic of our of Street Back best New The another by The Pineapple one Pineapple change from team, Time, and the In Guardian named the shows, Issue, the of York one made both a And original window was Spotify.

to for companion in We be developing partner services leading and studios streaming the continue also podcasts. of choice the

among pleased a new others. has very note as just joining Netflix on board We and partner, HBO Hulu are come that to

year. We later will with these be this exciting partners out rolling more shows many

long-formed to appeared their Cadence to Studios XX create shows output ahead doubling new are podcasts Several to XXXX production list. number a of and As originals. our of most our continue slated up Together XXXX, of have we Pineapple original XX series, of XX of we shows. also Street look these XXXX ramp anticipated original on

sale December, first premium free network CXXFeatures expand Last to our film. announcement are a was influencers area Endeavor our podcast optioned projects of of partnership very is derivative to of our continuing TV highly interest. CXXFeatures film of we received Hulu ahead. announced and from we On and recently doubled We in podcast Change the and a than and formed already years sales XXXX, a with designed garnering studios contributor streaming have develop quarter also The as major our business. in entertainers. a Wind active betting TV very well modest number believe projects of first and future be see with note, announced business a also leading [indiscernible] services. small sports you we this of will we to is of the related project. rights our to the advertisements studio in our is a All number and TV adaptable other to This to for more shows while Content new emerge for week, we CXXFeatures in

leadership and industry. on the of earlier, we announced deal that local Duel, the multi-year relationships. I in fan power of history this established long-term single Fan largest sports mentioned commitment the Fan our unrivaled Duel radio made the partnership capitalize with the As advertising radio to deep landmark

sports sports betting our In other we well. revenues combined operators book continue XXXX. [ph] as we addition in, business to to All Duel, in our at Fan are by expand expecting with least grow XX% to ad

feel not category. in online few most have the a we next While betting, states coming growth expect to we ad number the mobile sports significant states in robust legalized see of years, still should

than over We the years, a levels. continue to several expected for more next to expect sports grow tripling $XXX billion category betting to our Entercom XXXX

for creating the by betting we complement customer rapidly mentioned predictive subscription betters. betting terrific affiliates We insights and entirely sports analytics includes almost Gaming data driven our Group, books acquisition. sports is BetQL businesses. believe acquired the and QX, BetQL audio revenues to a sports BetQL QL these of value emerging generating sports from As and app sports is during which platform for business

in in New we across Fan of with including many sports know, and WFAN WIP more are have As country, tens The Washington, the Philadelphia, in home the Score broadcaster York, leading of you XX unrivaled reaching number of platform in sports The proteams. one Chicago, the in U.S., radio the millions and stations D.C., fans

content platform In to operator. of times next platform. there broadcast our to streaming we great the audiences enrich our sports leading three believe are the audience cross We the and fact, introduce BetQL and opportunities have radio

numbers days are early small. are the these While and

and podcasts to are radio converting terrific to a streaming and We listeners BetQL. off start

and triple and ARPU We new growth digit revenues, up is BetQL use subscribers double are affiliate posting strong book while in sports digits. they

In recently and augment partnership moves space. with will recently week, LockedOn our Network. the Sports we sales announced betting content announced the two that within we Last addition, opportunities acquired Podcast TEGNA’s sports

with Denver new initial announced the recently Angeles in RADIO.COM launch of Network Audio and also plus We distribution BetQL everywhere. Los the

our of And past and is transformation In certainly network hard remaining over there We have year. the their Entercom exciting outstanding conclusion, But ongoing both in to exciting our us. content this front challenging was progress. work significant their and leadership highly it of want for much additions, the witness salute the team drive I expand the to course to with plans offering to distribution. work

business new radio. digital including emerging We our sports betting, podcasting, digital solutions, areas, and audio, are across network rapidly growing all of marketing

have strong positions built make growth to to our areas We competitive new to continue augment opportunities. in investments

are vaccines have and customers well-positioned to businesses. sideline as many radio of And and million $XXX businesses of out our take business. hold of Our reopen expenses rebound events we their are to the able taken

serve our look ahead. forward to improving customers capitalize same excited about time on over I'll significant to the We're organization opportunities. that, the sales and at what how development lies While Rich. with to national we listeners revenue and it And enhancing turn and our future

Richard Schmaeling

morning, everyone. good and David, Thanks,

versus For down the year-over-year. fourth XX% the total XX% up net were were and third our quarter quarter, revenues

Georgia. post at election Our full fourth million $XX for political the in million for year the in the quarter revenues and benefited and day runoffs came from $XX

Our digital million streaming revenues XX% and the driven were podcasting. $XX.X year-over-year fourth growth for by in quarter up to

continue to in and COVID by were year-over-year XX% quarter. revenues disrupted event be the fourth significantly Our down

The these our spot versus total spot are accounts base XX% why and September our in which the key year advertisers the revenues were local is XX% driver of the down prior spot advertiser accounts of of XX% of for in month June. close December at off in our Looking year-over-year. revenues. air local top of XX% to our absence

of accounts year In we categories highlighted on remain our than and concerts, COVID. doubt a many top in in by seasonal fact, travel disrupted average December as historical the local advertisers dining, Top ago. air spent previously local they more No did have events, remain significantly casual X% like on significantly detail, depressed.

our weight virus of But the than The pacing markets as sequential advertising that on we in ebb March better revenue month and improvement COVID will are seeing of over revenues teams support is In to sales the the be spot as somewhat cases businesses. improvement. each better in bound. February. quarter, And we month deaths February optimistic all pacing than first call and these to hit subsides our of time this impact remain continue local is and January January highs. Our

is upper projected total the first current and revenues during piecing piecing, And in our down will we month for year. spot the on teens improving local come based quarter. versus the each Our national our quarter prior

total of restructuring fourth at in million Our the for million a and operating came $XXX.X $XXX.X $X.X quarter impairment non-cash million and costs. expenses include charge

We costs also for million related recorded a to charge of $X.X COVID-XX.

one-time expenses year-over-year. down and adjusting came like million costs non-cash $XX operating D&A, million these cash unusual or $XXX out our or total Excluding and XX% in at items

earnings cash Our quarter for and decided to costs and subsequent quarter of million result release. than anticipated settlement operating greater expenses $X.X the fourth that we in incur legal incurred a somewhat we to the quarter consulting were third of approximately non-recurring our as

million $XXX pro podcasting basis our year, the or acquisitions. million expenses our XXXX XXXX our $XXX versus a on XX% down were full for cash operating forma For expenses was and

the be down year project expenses that variable cash by fixed double operating quarter, $XXX pro we forma at versus expenses percentage. our Looking expected low be by And will million we down operating more. XXXX our or plus year-over-year digit first total now full will

cash on pro acquisitions expenses for a $X.XX operating forma noted, our our total billion. previously podcasting As basis were XXXX

position t. million leading sports Group, financial betting platform David the liquidity. Gaming our unrivaled analytics our as sports November, acquire QL that with creating stations nearly serve to engage mentioned, our $XX invested the fans to In million and new Turning and and to XX opportunities we bringing to

the for from third million and At available $XXX million the million million, million, comprised our cash up was $X on Our $XX hand. end, year in under $XX adjusted was free quarter. of $XXX liquidity our flow cash revolver of quarter

for end from year. net net And Our last total million quarter expenditures totaled fourth $X.X million the $XX $XX year. in our billion, debt full was were and the $X.XX down million of the capital

to the capital to in expenditures XXXX, and growing between investment to our to In that, digital With increase to federal range do rapidly the market. now to million will taxes quarter we we RTC we we year. $XX during questions. taxes, approximately second not million income our Catherine? Looking expect $XX and in forward in pay as income expect receive go will million that refund income we $XX cash a XXXX this advertising audio of your platform tax the expect now regard

Operator

Huber formal our Craig from [Operator Instructions] We The question Research first coming Partners. will now begin session. question-and-answer is Huber of

is Your open. line

Craig Huber

what you Great. the small about all out talk potential to through A environment the Thank base permanent we're out you. closures things. damage Can there. pressure advertising for few of and the the there? Just and bankruptcies going given businesses

as your first possible so you back to couple This a station get my advertising out here, of is think do years? think of you. you for for within basis levels to sort radio question. it's Thank And a peak

Richard Schmaeling

it David, to I then could start hand I'll you.

no So doubt a And we've debt there's bankruptcies. length bad and that looked Craig. that for year tough was at at XXXX

versus bankruptcies, when you XXXX, million. $XX.X bankruptcies was revenue XXXX in bankruptcies in LTM In XXXX. with in with the we at add associated expense experienced And XX revenues only experienced and million. we million Then $X it million the XX. those a when debt about was look $XXX bad $X.X was XXXX, bankruptcies Our those LTM associated we all up

companies look we not an seen to versus points the immaterial. direct obviously it's all of consumer relative increase XXXX. So influx But to at our when revenues, total And base, advertising insignificant, to we've significant space. a specifically our new

lot evidence my we'll and advertisers significant don't of are teams first better. in – mentioned and to quarter of the call see another on there's still about So Things a with beyond, engage for our see I as wave are the that And outlook bankruptcies struggling. who are comments we that XXXX. and local in to continuing the getting

saw deaths add COVID we lot so late clearly early hear rapidly December and particularly highs the advertiser and hit, long optimistic. disruption of it, I time that we're you permanent of I of all subsiding vocal and What we short David? damage that's about or see, continued Craig, as a to national do January, to And cases would in see our evidence and do base. don't and

David Field

I I that, Craig’s to in add going have well. going basically would to back Are we come And But going mean, Rich are you've individual through are I people to go yourself, I going to this large that – those And down difficult is our the of or businesses to are your or think there we covered I games, just going economy. going people ultimately question and sort event is things a businesses as very question, parks theme Yes, to guess parts unique business. I shut said what ask reopen? before, people nightclubs of travel? back to specialize you go while do And to come back. to go think have times, places

world And think up. as of demand. so to about true excited nations and us think way returning I they long. back we're significant is yes, money spend a I course the what the in And of with about here optimism And normal live ramp pent-up too before come the

to XXX including we As that the all March end evidence the of we're just Americans should million by XX. back Americans seeing have the fully million capacity XXX latest

So that we very recovery forward. about good feel going

I Sorry for long-winded think pretty thoroughly. we've the answer tackled but your to question, it

Craig Huber

this. And year-over-year, No, the could, what was I I maybe revenue please? you. Thank My the the was please. What podcast percent appreciate in if up I that. next missed quarter, question,

Richard Schmaeling

And digital digital we that reported our up year-over-year. break out don't We XX% that separately. it's us, revenues then were To inventory.

Craig Huber

weekly him, Rush hate bigger know, My on Limbaugh him as had here question other is, picture guys radio. million XX the or listeners love Okay. you

Entercom, go? do piece think you going listeners a or listeners pick could are here, those out up what for have more of those to importantly loyal happened offerings what's listeners? that Given And those there do you where substantial

David Field

I'm sorry, [indiscernible] Craig

Craig Huber

Do to of a opportunity, your on I your significant not those program piece you big think up XX no. pick isn't here, your syndicated for big digital it's you opportunity a weekly know and a radio listeners or it it’s it's company but million for guys properties?

David Field

tend an frame our did new Rush lot I and on following radio radio. extraordinary and as have way. had would an Rush to non-partisan certainly career The of our strictly turned and We on stations out because a the was we not – this news. it terrific are stations it extraordinary

a talk There had bit their of local those of more plenty of stations to all tend skew personalities in listened listeners course, also Rush country. that to terrific Our and little the course, shows. terms other think national news across of that And I orientation. are lots local of other

obviously to it's our So And you think, news that is [ph] ship where about passed We sad passing young. options and our it's going the very that present. listening future and the know and competitors feel talk good to we various workstations while the a out of hard going all terms of in spoken exactly and forward. fairly I fall

Craig Huber

let's million chunk you do again, pick a not a conservative just chunk. a XX loyal of have leaning three curious. of operations? take on off folks, They ask mean, obviously good lot right? I'm a you for try listeners, your up I could Thanks. But day I could if hours radio folks opinion

David Field

little you into and iHeart – conservative they to say, more – think talk be than weighted a No, if our would are. couple to look radio of we be Cumulus, we tend at I a I tend

Craig Huber

Very good. Okay. guys. Thanks

Operator

from question is Steven coming of Cahall next Fargo. Wells Our

open. line is Your

Steven Cahall

off. teens, not was upper just of Maybe for revenue total or that just me. A order. down spot They're QX you. first Thank was particular first, kind in that that few for company? them rattling I'll guidance

David Field

company. Total

Steven Cahall

of second, maybe could then Gaming Okay, digital us LockedOn opportunity. revenue how you synergistic And QL and the anticipate quantify ahead? help just you and sort I contribute years in very and know broadcast to great. David, growth that's strategic

about we should that impact? how So think

David Field

Sure.

first to we Rich Obviously, number elaborate question second comp again number. on a by the a events a first the and also total So in way, political your quarter. gave just face is no you the

at bit So we're country what books areas look think, sort excited sports question, that absent sports lot BetQL about if arguing a and I they're introduce the opportunities better. a sports the opportunity just and we in revenues we us the product time LockedOn rapidly To the as And space. those revenues QL [indiscernible] in opportunity the over of well. see across be, would are betting audiences symbiotic those you revenues its set essence as your growing the there and affiliate will from them opportunities and of growth home we be drive subscription engaged really most and of start to to additional the a the line from to gives of participating

and go very LockedOn great base And are starts to So got a highly are, and growth from for is here of our and performers. high sort that we small, best they've forward. but again as They're technology. we want connect and and we of expanding rapid the Craig podcasting. the And being respected engage that be place we small and folks so is enhancement are portfolio to great for personalities and of see continue to great country Durant across New to like one Boomer York, many the in have, instance, our so with Carton partnered the Kevin where and all stars forth. the Esiason into we that fans sports a with

ways. lot of a see different just and and great us profitability for there's revenues entrepreneurial tremendous content we in just many out opportunities So grow there to

Richard Schmaeling

point this the you Can one add I what said David about quarter. to first

about And million guidance, in no were quarter total in say events year put XQ about you obviously, and I live spent. useful of money Bloomberg had revenue. Michael first also normal still think all X% that that a was political context. need events. it's or the our you the when That to $XX revenues. that We're pretty XXXX slate And opportunities about of given heavy the we combined to two those think of political last

Steven Cahall

Okay. And podcasting. on then

thinking and the portfolio. Pineapple it of worth think sports Street, you probably the look really how what at were your for CadenceXX more buying you So, opportunity. about of headed, sort now gaming betting on when in these and considerably got great I'm with And businesses a and a which terms you've where sports about I of within kind of QL lot them. focus I lockdown you just Because paid seems like are than think early

think seeing I podcasting, programmatic. really whether we're be work it to start can or hosting it's when with paired

And so this also the be as right wondering, I'm hold CadenceXX just a – worth versus lot, to you they party Pineapple worth de-leveraging what are about at a are it onto might think is probably and third assets point? for you to they

David Field

Great question.

Steven, So to market let companies the who those just both for to our the compete $XX point thrive and with positioned We less in very be it as in your space. to a well We viewed fill are me have first several points just we we times. under of on collectively and were think acquired story. based in data million and those comps would there core in familiar exiting purchased said, business. business That no may interest the

current opportunities also who platform Salesforce. each folks really our gives we and brands million of publishers, the are business the Our also – the and we competitive have podcast our distribution that strong, the distribution and publishers national given with so local and RADIO.COM largest and month engage believe three or us our monetization our one with a $XXX with stations given advantages powerful

offer positioned this think it's I go and customers us. podcast and situation, It's We one future a winner. and be digital it's of don't all a essential our in win space. to growth. really audio, an of here radio us winners winner in position think a our not holistic offerings there's broadcast, course. we forth. we're take to we today will part – for audio of think offering leadership We multiple And So is And think component them, well be so which to there'll core positions radio,

Steven Cahall

lastly, RADIO.COM I been then to fixed finish Would focus. us one, big think reduction as Great. And give and to MAUs how a fully could you even know the Rich, much me. just has do up quantify revenue couple cost willing be recovers? you sticks Maybe you cost a for

Richard Schmaeling

one the and you first can cover David Let here me answer MAU? the cost hopefully

David Field

Sure.

Richard Schmaeling

costs, So significantly cost think our did impact our when our impact we but costs. variable fixed also base, we about

model, So reduced million, attack we've to our plan $XXX forma. relative to And our also, we've those strategies as we're at hard our now XXXX we're total that costs to savings or and that in for relative and more, permanent variable executed a variable looking variable number of polish That's reduce both are go strategies to XXXX. up revenue. occurrence expenses variable plus working why mix refined our We're being their revenue. nature, versus on a of even other down And fixed. pro is them to we've And further. working fixed

is our growth, invested to of historical business, number look in we're a very the continuing – of you greater key to from accelerating So savings gross fuel million. network to our at And digital. $XXX a quite then a we've substantially bit operating across lot liberate we're when not than do. areas model from focused done, we think to expense And on there's more there's

David Field

would that that of of those sort of of our – a our our across percentage RADIO.COM if numbers first me, are users audio and And of but And your of believe regular at approaching you don't I smaller MAUs, would I number platforms I've total who streaming be in total as look $XX front MAUs. and question, million the seen platform. the have digital include latest all of are –

Steven Cahall

you. Great, thank

David Field

Thank you.

Operator

from The is question coming Investment Emerson, next Emerson Group. Steven

line Your open. is

Steven Emerson

I'm as your permanent Duel. value taking not philosophy monetizing radio. media your an million forward rights are any Thank selling the my to is as you gamer to or that call. of And for for Fan creation, potential are like Excellent quarter. I'm would gamblers recruited by future observation, concerned, true exciting plans. revenues you from ads, that as curious is your as $XXX to get when recruited understand

David Field

Steven. Sure,

let first something just said. you me just So clarify

And the of Fan opportunity And are part future Right. going But Duel is One really we what we is participating think, just the subscription that have question, three to we category we total is again, there's lots advertising. is QL it's said. what our there have with other years. were not it's million advertising, are What a there. grows significant now we agree to, for that. do. be are in we participating You in it's work that excited of fit would we and that Fan Duel, we have To several your such sportsbook with logical platform. the of books. us in alluding we're sort $XXX broader that that million a not believe as we a on $XXX affiliate We potential buckets acquisition. moment we finally, now said, And in through we ago, about by forward. said sports fees, – enabled QL a that the also which touched

yes, of opportunities lots this in So space.

Steven Emerson

you. Thank

Operator

Square Management. The next question Ellis, Capital Palmer is from coming John

John Ellis

guys, for thanks Hey, taking my question.

be think like? like, you what know enacted you you how qualitative to cost different typically about are kind do First, I opportunities, look savings talked have does of to that going the a you permanent? the could much put guys of but number

David Field

performance, to could we or the Yes, cushion more our of million business call. we're over total it there when against that you variable we year do as revenues drive XXXX permanent? telling comfortable time guidance million, costs. are, XXXX, be that versus $XXX to costs has, down some so we meant imagine, Obviously, this But the Yes, absolutely be think $XXX as or have we more, for versus bounce. expect you will

John Ellis

a probably versus What Thinking about million forward same we'll savings we'll going in XXXX, is that that? versus that $XXX XXXX, XXXX. see

David Field

out to as that into transform the continue efforts and our structure our move cost think fuel to I look, growth. future, Hey we we

into get XXXX, you productivity deeper in we gains. driving as executing give on color are what going within and Entercom. So, about People very XXXX, on we we'll focused then backwards planning no more continued see one's but

John Ellis

about Perfect. draw? talk Couple looks… that Can the me. was makes increase revolver That more for? sense. It you What your used from in

David Field

rebounds just the the for quarter. acquisition of there in revenues. million Yes, two fourth key were QL and also The $XX drivers funding Gaming in

XX% versus up quarter. were revenues the quarter fourth third our that saw you So

added we So consume cash sequentially, as did the working receivables. we funded and related capital

John Ellis

flow you Okay. quarter your and guys end? sense. operations the can from then That give what was makes for And year cash

Richard Schmaeling

see said release. adjusted in earnings third $XX quarter. the in versus you to fourth million can that flow free We was in And did. that attached cash our the tables our million earnings our $X We quarter

John Ellis

Okay. Got it. my All right. Thanks questions. for taking

Richard Schmaeling

Sure.

Operator

question next to from The is going Matt of Dratch Millennium. be

open. line Your is

David Field

we Catherine. him lost I think

Operator

ahead and question. go We'll the onto go next

Matt Dratch

Hi Hi. guys. Hello. Hi.

David Field

Hi, go Matt. ahead,

Matt Dratch

the taking for question. Thanks

then is of one mobile think the that on – So could be Could just the RADIO.COM users an and little that opportunity sort a on things about paywall. for a interesting talk the I active you the sort of understanding bit? of

David Field

expand you first what your Cam on I'm sure not you're asking. question,

Matt Dratch

terms a have you XX sticky on are a sticky interesting of some chunk active look for that's my The is other to like as users for is Well, guys to million related an those probably listener before you from monetizing assets have opportunity in like them horizon RADIO.COM, that guys Spotify services understanding on And you access, the that them base. of large and – paywall at Fan. things maybe there

David Field

Got it.

that stations head podcasters. lineup be. there, respond. formats due our it a but to what award-winning different it's And from, WFAN and And we as differentiated, I bully you in that obviously exclusive lot competitive which digital news music as can the our But have none. to to distribution we competitive been increasing point advantage means of of or second here's as personalities and [indiscernible] look, lots the forth is quickly have to have things And can excited we very formidable to We're can you we our We've as that so offerings. of growing in believe platform we far to the content, go the and award-winning our being a puts that this about ways local to into and of room as would lot this that's shareholders. that stations content imagine, for a creation there And announce in where player. radio content plans and and we Rich be investment will get of us combination pulpit in our opportunities exclusive we we'll of the to time, I – a position premium want even it of – that out RADIO.COM, And year. at mentioned think grow rolling. more we everything quality marketplace we for would CapEx a about RADIO.COM of to we where just value our go So terms to mentioned, growth audio like our

Matt Dratch

Okay. couple more me. And from a just

the at differentiated versus and analytics. how acquisition. it subscribe Could for bit fees books you and you bit for app whatever. BetQL, a subscription versus that think placed, or sort are for on talk of interesting affiliate It's How the how affiliate sense a like sports take receive you the the you work? a pure give there? sort of the little On And sport? those about certainly that the Bloomberg through two set, BetQL, the a it's sports, three fees two, sort bets of nature have one, some one the I example, application, from looks of looking the people that sports Can to given really on you like sports BetQL many

David Field

granular me as too get to it answer on I let to that, want don't try And I clear. question be best Yes. the can. should but

offerings side, to books the first but sport and betters And course platforms. expanding, keep wording platform really sport, deposits aspects well. sports And will for help betters. made So how make those services time it's so just The and powerful in works. to will on and upon to successful entertainment betters enjoy betters analytics who all annual, start which a and it insights, make on forth based that fees of affiliate for focus their three the the two more inform and subscription those of BetQL and and to an sport, weekly, successful offers exploding them as that's business one packages monthly, using very the the fee have pay –

as opportunities growth So robust we see forward. going for us both

Matt Dratch

sort have guys in the places guys month consider something themselves college legalized are such is big should the seem there distanced And tournaments are the Okay. large thought partner? any like that? terms And elephant from already a country. of you we to the and about media the series. here. sports them coming lastly, room you Have about for around fan in a gambling map They have guess, been Madness, Radio has obviously, I roadblocks And we see, as now or Barstool personality, of quickly, as moment the in potential March a for which off then

Richard Schmaeling

business. on obviously, a say with Dave give I comment funny, would strategic wish I lot Yes, building on, of guys. a have respect those so mean, a we're have and the air job And them. and of to not we a lot of with us player and are for is relationships Eric wonderful only it's going folks done strong The they forth. luck. fun occasionally, and And them their we come we thing

Matt Dratch

That's you. Thank awesome. Appreciate me. for Okay, it it.

Richard Schmaeling

Thank you.

Operator

is your Henley Devlin Company, open. question coming & Jim line Next from is

Jim Devlin

caller. time listener, Hey, guys, first longtime

but entertainment you live the again. when we between filling right? the trading Wall all-time to we're the you has at just at foot those we're of Entercom’s willing Just through through around XXX-pound business, with better giving will, to if of music potentially start is don't understand That's over Why value venues gorilla, give robust. Live the question. and pipeline Apple understanding. society, quick teeth looks Mr. play. Nation a point and mean, a live clearly the Nation pipeline. business? us be to of This how it Entercom’s the get Live a say, at I greatest first and give business or we their had Wall not a kind things I traffic is event musical Their hinges destroyed to hey, a Street does I'm can normalize, about lineups coming maybe And mask disconnect $XX question. for live Street in acts artists is the to room, willing does Street to seems where do to Rapino recorded a the the can list saying stocks you Entercom if pass big generate Wall Street I highs, looking to guess the pitch if where event guys pass, get to income. a a And detract is open, reopening my business? society COVID.

Richard Schmaeling

personal wait into but and and will about absolutely companies that valuations that issues, again. time, feel forward back many live obvious business look the all watching terms have outdoor, in of on level, we us of events Nation, Over will thoughtful do indoor think Live I'm part that sure live Yes, is fully. our it's to on coming be I on that all can and the of I don't back robust. like on to us can't comment be back and business process bench we'll to be confident, say get And, density a to music

Jim Devlin

that that entertainment does pipeline it does but Okay, back, robust, come the when schedule look right? very

Richard Schmaeling

that will out to are huge I forth. be so But schedule waiting and yes, pent-up no there. bands there tours some there's have think everybody is it doubt demand mean, I started

have out. back see plays So, when that robust be just to it we'll it will all and comes how

Jim Devlin

out far XXXX podcasting, all grow as do as of if COVID? several at years are cash events debt had hoped you road, rapidly can I if time, and teeth facing Trust and chipping really EBITDA teeth talking leveraging chipping, then sheet over with about down CBS think were of how that one pre-COVID transaction, pay things the the and question, de chipping things away you balance COVID. we we And the the At the chipping flow? more a at continue going Okay. you away and look had the Reverse guys probably coming could solid and live How for downs of you the and kind do free start you in transaction, the the of and to all out Morris time good into numbers, the that the the of look out right much you debt growing, debt. were you just how sports like And do best

David Field

Let in. with will and me Rich this start fill then

business So sequential We and with a before topline nicely this had solid your time, as growth. good Obviously, good really point in year the recovery really forward. events been local accelerate ways well. in our we our about business. started about good feel we to go been then have growing started and from looking earlier we now last growing Obviously, of cetera. and by year growing areas. business our of it the by with network we're well the forward topline business pandemic our last over mentioned is point, XX% of XXXX, to basically, to really lot And the I more solid double feel strong we've at and our double the digits, to a to there's et quarters, digits, bottom-line of growing XX% growth, in recovery couple improvement and digital as work as goes bottom-line rapidly that doing

a to if flow. improve. our component And we'll as reducing look goes down, think will that you I to I grows, and goes we very want that continue to as Rich don’t And add debt. to debt that. lower obviously, of apply So, provides more to – to that cash free EBTIDA significant continue our forward,

Richard Schmaeling

we believe Well we're are do flows we and accelerating debt are on by then, free our And we reduce year, that all last track us pay with cash I of on about we ensuring focused think year. it's And end it's about comfortably just and that. compliant debt. using look, recovery, see this cash did to you'll think, year to our I covenants the this down growth, all as flow those

And exactly saying. the a for we understand top priority So what is organization. that you're

Jim Devlin

So that time, just prescription is covenants the expecting leverage, are the appreciate I get your quick was – I times correct? Wow! for one you follow-up? four can

David Field

right. our covenant. That's That's

Jim Devlin

– I you rate So, backing $XXX tight mean, at million are $X.X EBITDA run billion, guidance? into

David Field

working first me. sense we with compliant be EBITDA, to our make are to But No, that math doesn't lien. our

So, not it’s covenant, a total. a lien first it's

Jim Devlin

Okay.

David Field

Okay.

on So first at basis lien a compliant covenant this end year. of our with the to be

Jim Devlin

from preclude back not only you those clearly And covenants company do Have then debt? Okay. guys… buying the

David Field

We…

Jim Devlin

equity? from being preclude back to it you able buy stock Would guys to

David Field

Yes.

making are we payments precluded from So restricted right now.

Jim Devlin

Okay. All success. very continue you Very Thank good. and much, right.

David Field

Thank you so much.

Operator

Capital. question Kupinski coming Next is of Michael from Noble

open. is line Your

Michael Kupinski

taking for next XX%, Can thanks as the to data you. as little kind this Thank that with get March February. of us already pacing booked like businesses the I'm Typically, the is questions. around month advertising I a point? trying bit you a an provided. business enter give the that maybe of much sense has was XX% booked. to for than company point. I better booked know of this been at how pacing how trying is at And a just indicated much just the March idea even handle much you would get of you of

David Field

Rich take this to want you up?

Richard Schmaeling

Yes, sure.

the six clearly, out quarter, today from that's we're to when month to full all we we're COVID Michael on one better gotten how then So weeks about because one or plays weeks expected look spring. just next away five of we're curious the month has less see we based where away than sit think final. a like close weeks. XX% and to And And booked over four last the the lot

the chatter some be there's So we're think, curious. in will – spaces. it And I all

we'll we yesterday I gets of perhaps [indiscernible] spoke but of better, March think see.

Michael Kupinski

Yes. certainly booked be I And to in know, business pretty late. continues

a kind handle just get So trying was that's like of why to on. I

just of think does company there was curious, be betting? betting Do think you the eSports, get your to I I just long-term. kind eSports the sports maybe, Do see into I what to plan thoughts the there sports is framework a brilliant, given expansion you getting of sports programming, might your are in our deep get business? acquisitions? into wanted betting business platform. how eSports additional

Richard Schmaeling

I making any us eSports. in see place don't

and mentioned we I podcasts. a strong emerging think Kevin many or whether great On complimentary between so JJ businesses, radio, now Redick other unrivalled sports, again, really I set have Locked of and Durant And it's gives the together. we're all sports the tech us Gaming have course, think, And that the it we stuff, platform space, QL it's of doing subscription whether I really podcasts bring to radio.com. Group, our in and

it create that's entrepreneurial our offerings. be QL some launch announced we of I Michael, to opportunities But the mentioning, So, really just now, created it's see have, all about we're pieces And And that interesting close evolves. good we Audio can exciting. the we growth we'll and opportunities. I'll how of organic really think right have feel And fortunate a manifestation some can great combine Network. the pretty that of to where by

Michael Kupinski

so Great, thank you much.

Richard Schmaeling

you. Thank

David Field

you. Thank

Operator

question JPMorgan. The from Steiner, coming next is Avi

open. is line Your

Avi Steiner

got the Good a time. questions, I've for bigger two you one. picture, you. Rich, Thank appreciate one and maybe morning. then I

maybe question, one light of flow updated cash for I'm Just higher earlier made with And your a debt in free receptive respect the to what's have there's an thoughts earlier of the Thank if you. on especially more. comments market, wondering any stack, maturities some then I of still light Flight? Radio in

David Field

closely Yes, are the so high yield monitoring market and we loan market. the

We have considering we those possibilities. and been thinking possibilities are about

So, as tight, you really know, focused to all time so well the markets close we're on that.

Avi Steiner

I'm on, you into Okay, great. plays audio strengths, time. the the and about, you streaming. have offer, there, and the and thoughts, see thank talked offerings of to my you've kind And of you listening one, it's springing then of to talking albeit business whether you've competitors a bigger some audio folks curious you out are on early for what often that picture, got any podcasting, if David, thank clubhouse ultimately media you And audio those again. resurgence, terrestrial your Twitter And again, business, complimentary for better social or whether up entire description, offering, experience. about, as on, or lack spaces

David Field

as in sort back be to least company yet, exciting. in is know Avi. you're it's on spaces audio. to in of seeing consumer don't is with would – I advertiser lots because in interest you living I have other play. And what's And a we we great lots and good is era, with unprecedented media of to And differentiated, or go think, as our you we given I our all in FDR of where really the and I disruption sort public's And things interest to more in time of if thank into exclusive that's offer match us at ecosystem, interest to we're interesting guess, audio, in think great capitalize more right, it. place a And the that's dollars Well, puts more premium well question. of do trends. bring What content, it And have the scale, answers to that merging. going also these a audio, can a

end our Specifically, as to it tell up what mentioned, our extent bigger nature across of big well personalities of I our to audio in positioned that our the emerges way, that and engaging all participate we're the a can to given that, you think, again in nature the social the is scale, brands, reach, that great of being country. hard you or pertains so it's being those to right? fads, businesses, those they offerings look and social whether What create of that products, And I end the trends, know, forth. some over like, time, up trajectories powerful whether really

I there, be robustly opportunity we an there's if am time. will sure So participating over

Avi Steiner

Thanks again.

David Field

Sure.

Operator

At it time, have further in we Richard queue. to back this Schmaeling. I'll now turn the no questions

Richard Schmaeling

you you fourth thank thank Catherine. Yes, Bye-bye. very call. earnings quarter And XXXX much, joining for our all

David Field

Bye Thank you all. now.

Operator

may parties All disconnect conference. this today's conclude will time. This at

Audacy (AUDAQ) 24 Feb 212020 Q4 Earnings call transcript