Cumulus Media Inc Q4 FY2022 Earnings Call

Welcome to the Cumulus Media Quarterly Earnings Conference Call. I'll now turn it over to Collin Jones, Executive Vice President of Strategy and Development. Sir, you may proceed.

Thank you, operator. Welcome, everyone, to our fourth quarter and full year 2022 earnings conference call. I'm joined today by our President and CEO, Mary Berner; and our CFO, Frank Lopez-Balboa. Before we start, please note that certain statements in today's press release and discussed on this call may constitute forward-looking statements under federal securities laws. Actual results may differ materially from the results expressed or implied in forward-looking statements. These statements are based on management's current assessments and assumptions, and they are subject to a number of risks and uncertainties. In addition, we will also use certain non-GAAP financial measures. We believe the supplementary information is useful to investors, although it should not be considered superior to the measures presented in accordance with GAAP. A full description of these risks as well as financial reconciliations to non-GAAP terms are in our press release and SEC filings. The press release can be found in the Investor Relations portion of our website, and our Form 10-K was also filed with the SEC shortly before this call. We finally posted a 2022 Investor Update to our website, which we encourage you to download if you haven't already. A recording of today's call will be available for about a month via a link on that website. With that, I'll now turn it over to our President and CEO, Mary Berner. Mary?

Thanks, Collin, and good morning, everyone. In the fourth quarter, amidst a challenging economic environment, we achieved financial results that fell within the upper half of our guidance range from our last earnings call. This outcome continues a multiyear streak of significant achievements. We executed a comprehensive turnaround that involved improving our corporate culture, assembling a strong management team, implementing a strategic plan to optimize our radio portfolio, and launching new digital businesses. These efforts have strengthened our operating leverage and free cash flow generation, positioning us for sustainable revenue growth, which we've consistently achieved since 2018, except for the pandemic-impacted year of 2020, on a same-station basis. This consistent revenue success reflects exceptional execution in our core business, supported by organic and profitable growth from multiple digital ventures, which together now generate over $150 million annually, representing more than 15% of our total revenue. We have worked diligently to control costs and improve our operating leverage. In fact, our fixed costs in 2022, despite inflation, were roughly $90 million lower than in 2019. This has significantly contributed to our EBITDA recovery of $166 million for the year. Additionally, we have focused on optimizing our balance sheet by monetizing noncore assets at favorable multiples and managing our cash effectively since June 2018. We reduced net debt by about $650 million, equating to more than $30 per share, and lowered net leverage from 6x to 3.7x by year-end, achieving among the best leverage and liquidity in our sector while returning over $31 million of capital to shareholders through stock repurchases, decreasing our share count by 12% in 2022. As has been widely reported, we, like other ad-based companies, are facing significant challenges. However, thanks to our robust experience and proven capabilities in navigating tough times, along with our strong financial standing, we are confident in our ability to endure this weak environment and take advantage of emerging opportunities in the coming quarters. Frank will elaborate on the fourth quarter and full year results, so I will concentrate on our current outlook and expectations for the remainder of 2023 and beyond. Notably, since the latter half of 2022, we've noticed a significant difference in demand between national and local advertising, a trend that continues today. With multiple businesses catering to national advertisers, comprising approximately 45% of our revenue, our exposure to national advertising is higher than that of some peers. National advertising trends are a crucial determinant of our performance. This exposure is evident in our financial performance metrics, including network revenue, national spot revenue captured in the spot revenue line, and national podcasting, streaming, and website revenue, which are all part of our digital revenue. Our Westwood One network is the leading audio network in the U.S., distributing content to over 9,400 affiliate stations and benefiting from our strong presence in music, news talk, and live sports, including the NFL and NCAA. Our prominent sports properties have largely remained unaffected by broader economic concerns and continue to attract considerable interest from advertisers wanting to associate with major events like the Super Bowl, which yielded revenue growth for the network this year. As the rights holder for sought-after sports franchises, including the upcoming NCAA tournament and Final Four, we are optimistic that live sports will continue to be a strong area for us. The pharmaceutical sector has also shown to be favorable. A few years back, a leading advertiser, P&G, returned to the radio market, recognizing radio's strong ROI. Capitalizing on this, we attracted several new pharmaceutical clients in 2022, making this category significant for us. However, we have observed substantial network advertisers in finance and retail, among others, cutting or completely stopping their spending, while others are shifting funds from upfront commitments to the scatter market as they navigate business challenges. National spot revenue from our radio station group derives entirely from national advertisers purchasing spots across our platforms in aggregate. Although we have actively collaborated with national advertisers to drive demand, the trends affecting network revenue also impact national spot revenue, with many categories facing weakness. Notably, we have a tough year-over-year comparison for national revenue in the sports betting sector. Last year, in Q1, we enjoyed about $10 million in high-margin non-returning revenue due to the end of our WynnBET relationship, some of which was recorded as national spot revenue. Our national podcast business, which ranks among the top 5 podcast networks, has continued to gain strong audience traction, with downloads growing to 1.5 billion from 1.2 billion in 2021, a 26% increase. However, this revenue stream, primarily directed at national performance-based or direct response advertisers, has also been impacted by the decrease in national advertiser demand. While each national revenue stream has its unique characteristics and drivers, collectively, the revenue drops we observed in Q4 remain consistent. Nevertheless, with the largest audio network, a portfolio of over 400 owned and operated radio stations, and a top 5 national podcast network, we believe we possess strong, well-positioned assets that, combined with improved operating leverage, will enable us to capitalize on high-margin revenue recovery once these pressures lessen. In contrast, local advertising is performing significantly better than national. Our exposure to local advertisers is also reflected in various lines of our financial reports, with local spot revenue captured in the spot revenue line and local digital marketing services, local podcasting, local streaming, and website revenue categorized under digital revenue. Together, these local revenue streams account for nearly 50% of our total revenue in 2022. Over recent years, our efforts to refine our radio portfolio have led to a shift towards smaller and midsized markets, which generate more spot revenue from local advertisers compared to larger markets. Notably, local advertising demand has generally proven to be more resilient in the current economic climate. In Q1, we continued this trend by selling WFAS-FM in New York City for $7.25 million, a deal that will have a minimal impact on EBITDA and marks our exit from the New York market. Moreover, prior to this transaction, we executed several highly beneficial deals over the last few years, including hundreds of millions of dollars in noncore asset divestitures and multiple station swaps, supporting our strategy to optimize our portfolio by exiting markets with limited potential and focusing on areas where we can achieve market leadership. Although we are seeing a slight dip in local advertising in Q1, some positive signs are emerging, particularly in the automotive sector. After several years of struggle, increased inventory is prompting auto dealers to ramp up their advertising. While the automotive recovery remains somewhat inconsistent nationwide, we are overall witnessing an upward trend in Q1. Furthermore, the leading local category during Q1 is general services, which is seeing double-digit growth. Our local digital marketing services platform is comprised of products we have profitably built from the ground up. Primarily, we provide digital marketing services directly to local clients, distinguishing ourselves with a sales strategy focused on feet-on-the-street selling of a suite of integrated audio and digital marketing solutions. We utilize our distributed sales force, sales infrastructure, and ability to swiftly introduce new products and services to deliver value to our clients while remaining highly responsive to the evolving landscape of digital marketing. For example, in mid-2022, we launched Cumulus Boost, a comprehensive set of digital presence solutions aimed at complementing our previously offered campaign-based products known as C-suite. Cumulus Boost introduces a subscription-based recurring revenue model at an accessible price point, enabling us to upsell existing clients and attract new ones. Cumulus Boost has already made a positive contribution to the growth of our digital marketing services, which increased by 16% in 2022 and is on track to surpass that growth rate in Q1. We have signed numerous new Boost agreements with hundreds of businesses, half of which are completely new clients. Of these new clients, nearly half have already elevated their initial investments to include additional Cumulus digital or radio products. The process of successfully integrating digital products into our core radio offerings has taken years to refine, necessitating an expansion of our sales force from solely selling radio broadcasts to bundling and offering both radio and a dynamic digital marketing services portfolio. This shift not only provides us with more products to monetize but also significantly enhances our ability to serve existing clients and attract new ones. We are optimistic about the potential of this revenue stream, given the favorable local advertising conditions and our strong capabilities and market positioning, which should enable us to capture share in the digital marketing services sector, which remains fragmented but has a total addressable market exceeding $15 billion and is growing. Operating in a highly uncertain environment, here’s our current status. The national advertising market poses our most considerable challenge, especially due to our higher exposure to national revenue streams. However, we maintain a strong track record of executing well during tough times, which is precisely what we are currently focused on. Even during the pandemic, when annual revenues fell by 25%, we generated $33 million in cash from operations. Moreover, as these challenges lessen, we possess the assets required to reap significant rewards in the upswing. In the meantime, we are capitalizing on a more favorable local environment through portfolio optimization, effective sales execution, and focusing on our digital businesses, particularly our local digital marketing services, where we see substantial growth opportunities in a largely under-penetrated but significant market. Simultaneously, we are rigorously managing expenses, looking for ways to further reduce fixed costs beyond the roughly $90 million in reductions accomplished so far compared to 2019, in order to counterbalance the loss of the WynnBET revenue and the declines in off-cycle political and high-margin national revenue. The operating leverage we have created will also benefit us when the market shifts favorably, evident in the 23% EBITDA growth on 4% revenue growth recorded in 2022. Ultimately, we find ourselves in a strong financial position, finishing 2022 with a net leverage ratio of 3.7x and over $200 million in available liquidity. This robust position instills confidence in our capacity to adeptly navigate the challenging advertising landscape in 2023 and to proactively make investments that can boost growth in 2024 and beyond. With that, I will now pass it over to Frank.

Thank you, Mary. I'll begin today with our fourth quarter financial results, followed by commentary on the full year. Fourth quarter total revenue was approximately flat year-over-year, with digital revenue growth and political revenue mostly offsetting continued weakness in national. Excluding political, fourth quarter revenue was down approximately 3%. As Mary mentioned earlier, we are experiencing significant weakness in national advertising impacting most ad categories. Within spot revenue, general services, home products, and automotive all grew in the quarter. Sports betting was our weakest category, driven by the loss of WynnBET as well as some other large sports betting companies who have pulled back spending. Digital revenue grew by 8%, with streaming revenue up 21%, benefiting from the addition of the NFL streaming rights. We saw strong listenership growth as the season progressed during our first year of the rights package, which provides us a strong base for 2023. Digital Marketing Services revenue grew 3%, but the current run rate for the business is much higher than the fourth quarter growth rate. Podcasting revenue grew 2% in Q4. Total expenses in the fourth quarter were essentially flat, resulting in EBITDA for the quarter of $42.7 million, which was down approximately 1% from last year. For the full year, revenue of $953.5 million was up 4% versus 2021. Similar to our Q4 results, local outperformed national for the year. Digital revenue growth was strong, up 12%, with digital marketing services up 16%, streaming up 12%, and podcasting up 11% for the year. In aggregate, our digital businesses had an annual run rate of over $150 million based on Q4 performance and represented approximately 15% of our total revenue for the year. Total expenses increased $6 million, driven by higher variable costs associated with higher revenue, a mix shift towards digital revenue streams, and inflationary pressures. These increased costs were largely offset by continued fixed cost reductions. EBITDA finished at $166 million, an increase of 23% compared to $135 million in 2021 and in the upper half of our guidance range of $160 million to $170 million. Turning next to cash flow and the balance sheet. During the quarter, we generated $24 million of operating cash flow, bringing full year operating cash flow to $78 million, which even after accounting for debt repayments and share repurchases led us to finish the year with $107 million of cash. For the full year, excluding M&A, free cash flow was approximately $15 million or more than $2.50 per share. Along with the availability under our ABL revolver, we ended the year with total liquidity in excess of $200 million. CapEx for the year was $31 million. And in 2023, we expect CapEx to be approximately $25 million. During the quarter, we retired $21.5 million of debt at a discount, bringing our total 2022 debt paydown to $86.5 million. This debt reduction will result in approximately $6 million of cash interest expense savings on a full year run rate basis, which mitigates some of the pressure we see from increasing interest rates. Since 2018, we have reduced net debt by approximately $650 million or 50%, and since the start of the pandemic, we decreased net debt by approximately $400 million or 40%. We ended the year with net leverage of 3.7x, down from 4.7x at year-end 2021 and from 6x in June 2018. In addition to reducing leverage, we also repurchased $2.9 million worth of shares in the quarter, bringing share repurchases in 2022 to $31.8 million. Total share repurchases represented approximately 12% of shares outstanding at the beginning of the year. Looking ahead to the first quarter and the year, in addition to the weak advertising environment, we faced two items that create typical comps. First, as Mary mentioned, in Q1 of 2022, we benefited from approximately $10 million of revenue related to the termination and wind down of our relationship with WynnBET. Most of that revenue was booked as other revenue, with a smaller portion booked to spot revenue. Additionally, with 2023 being an off-cycle year, political will be another comparison headwind. As we look at our current pacing, we are pacing down in the low double digits. Normalizing for WynnBET and political, this pace would have us ending the quarter down mid-single digits. As Mary said, the current operating environment is difficult, but we have executed in more challenging environments before and have risen to the occasion each time. We expect this time will be no different as we focus intently on investing in growth areas, reducing costs, and continuing to be strong stewards of the company's capital. With that, we can now open the line for questions.

Absolutely. The first question comes from Avi Steiner with JPMorgan.

I'd like to start maybe on the ad environment. Mary, you spent a fair bit of time talking about this press that environment, economic headwinds, et cetera, and we now have your pacing. And I guess, first off, what does it look like? If you can tell us beyond Q1? I know it's early, and you talked about green shoots and auto, but anything else once we get past the start of the year that we should be thinking about?

Yes. Avi, yes. I mean I think you say it rightly. It's a little bit too early to tell. But as you've read, as everyone has read, this is an across-the-board weakness in ad-based businesses in national. I think that we're for us, we're better positioned in this downturn than we have been in any others, given the fact that we've built our digital business to 15% of our business, and that is growing, albeit at a slower pace, but it is growing. So that said, as I said in the prepared remarks, we are disproportionately impacted by the national advertisers, in particular, because of how much national ad business we have. I mean, anecdotally, we’re seeing certain large advertisers go dark for a period and they're not saying they're out forever. They're just going dark for now. These are categories like insurance and retail or what we're hearing is that they're pushing out their spending to later in the year to maintain optionality. All of that, and what we're hearing pretty consistently indicates that what we're experiencing is a temporary phenomenon. But as I said, I don't have a crystal ball; none of us do. And all of us are paying attention to the same headlines as everyone else around interest rates and inflation and otherwise. So as those factors get better, we think the national business will as well.

Okay. Great. Two more here. Just following up on that, given the challenging ad climate, I'm wondering if you can talk about the expense side. You've had some pretty good success historically, but maybe some levers you can pull if you can dig there. And I believe historically, the company had given an EBITDA range. I’m wondering if that's something you want to offer today full year versus first quarter; otherwise, I have one more after that.

I'll take that. Well, as you know, we continue and always will focus on fixed costs. The $90 million of fixed costs we've taken out versus 2019 is actually higher than the $75 million range that we provided last year. Last year alone, including the impact of inflation, which does impact our business, we did reduce cost by another $7 million versus the year before. This year, we will continue to focus on areas of productivity, contracts, and etc., to reduce costs. But we don't have the same amount of cost to take out as we have in the past, given the magnitude. That's the first question. In terms of guidance, as a reminder, back in August 2021, we provided guidance for 2022 at a point in time because we were receiving questions as to how we were going to recover from COVID. We took that unusual step because of the visibility that we saw then. And boy, 18 months later, the world has changed. We lost the WynnBET relationship; we didn't foresee the recession. We ended up at $166 million of EBITDA, which was pretty close to the low end of the range we provided 1.5 years ago. Going forward, we're going to return to our historical pattern, which is not to provide guidance for the year or the quarter; we rely on pacing and give any additional color commentary within the quarter, which I'll do now, and Mary talked about. Last year, our first quarter EBITDA was $31.5 million. The two one-time events of WynnBET and political represented approximately $11 million of EBITDA contribution last year. So if you subtract that out of the $31.5 million, that would be an apples-to-apples comparison. Then on top of that, you're going to have to factor in the fact that, normalizing those one events, we're pacing down in the mid-single digits, so you can work through the math and the contribution margin and what that could imply for EBITDA in the first quarter.

That was actually very helpful. I appreciate that. Very last question for me. So one of your peers is seemingly in asset monetization mode in part. I'm just curious how we should be thinking about potential opportunities there for Cumulus, if any, and maybe M&A cumulus overall. I think you sold something in the early part of this quarter, which I assume goes to debt repayment.

Yes. To start, I want to reiterate, which I don't think can be reiterated enough, that we have a very strong balance sheet position and liquidity. So that does put us in the enviable position of not having to worry about refinancing in the near term or any cash constraints. As you point out, it gives us optionality to do a lot. We have a number of our competitors who are great partners of ours commercially, and there are a number of assets in terms of markets, digital and otherwise, that are fairly complementary between our platforms, both us, Audacy, and iHeart. It doesn't make sense for us to comment on any situation specifically. But I do want to say that if there are any opportunities out there that make sense for us, you should assume that we are focused on running those to the ground. Of course, all of this is in the context of what we mentioned in the prepared remarks about how we intend to continue to be strong stewards of the company's capital.

The next question comes from the line of Michael Kupinski with Noble Capital Markets.

Historically, national weakness tended to portend to trend to weakness in local. I was wondering if you can talk specifically about what you're hearing from your local advertisers and pacings for Q2 on the local level versus that what you've seen in Q1?

Michael, it's Frank. I'll take that. It's too early to for us to really talk about second quarter pacing. And I'll just leave it at that. I would say what we're generally seeing in the local markets is what we generally read about or see in terms of commentary on the economy, which is with the lower unemployment rates. There are parts of the economy which are doing okay, and we're seeing that in the local markets. From a pacing perspective, when we think about pacing down, okay, on the low double digits, the local markets are slightly negative and holding up pretty well. Part of the local markets, and as Mary talked about, is not only what you'll see in spot revenue, but the exposure we have to local in our digital businesses, which is actually healthy and growing. At this point, the first quarter is slightly weaker than the fourth quarter in local, but on a relative basis, it's dramatically different than national. Additionally, we’re seeing that local orders are firming up much later each month than they historically have as businesses are looking at their underlying business. The pace on automotive, as an example, has accelerated throughout the quarter. In the fourth quarter, as an example, automotive was up low single digits. In the first quarter, it's pacing up mid to high single digits, still well off of 2019 but as a big category, that’s an encouraging sign, particularly driven by auto dealers who are getting inventory and want to move that inventory. So it's too early to say how the second quarter is going to look like, but we're glad with the balance we have in the first quarter in local versus what we're seeing in national.

The company has done an amazing job at reducing fixed costs, and you indicated plans to further reduce cost. Can you give us some sense of the ability to reduce cost at this point? What areas are possible, if you can just add the magnitude of the potential cost reduction? Any color there that you can add?

We're not going to give guidance on our cost reduction for this year, but I will say through our budgeting process, we reduced costs in contracts, in people costs, and business process improvements, and a lot of those cost reductions will be offsetting natural exposure that we have to inflation which we're not immune from. It just happened in the previous year as the magnitude of cost cuts were so great. That net number against inflation was a big number. So the half cuts we have in our plan, we expect to offset a lot of inflationary pressures. It may not be all, but you can have confidence that this is something that Mary and I and the rest of the management team focus on closely, and it's something that we'll continue to look at throughout the rest of the year to get additional savings.

And then you mentioned pharma and that it accounts for a larger percentage of the national advertising category. I was wondering if you can give us the percent of the pharma business and what it accounts for?

So Mary's comments on pharma were really related to where we are in the network, right? Because most of the pharma is national advertising in the network. It’s a growing category, and we're happy with that growth. But at this point, it's not a top 5 category in the network.

The next question comes from the line of Jim Goss with Barrington Research.

Okay. Radio Inc. had an article this morning about WTOP cutting spot loads. I think I've heard some other noise along those lines recently. It's been a long time since such mundane factors have been talked about. I'm just wondering about your thoughts if that's a consideration and what the implication is for either the demand or rates and whether it's varying a lot by category.

Yes, that's not mundane to us and our business because optimizing the inventory and the spot load is obviously one of the levers that we always think about. It's something that we focus on certainly by channel and by station and by market. I would tell you that given the fact that we've built a robust inventory management system, our focus is really on optimizing what's best for the listeners, optimizing price yields, and optimizing the product that we have. Frank, do you have anything else to add to that?

Yes. The only thing I would add to it is, as Jim, as you can imagine, with over 400 stations in over 80 markets, each station and each cluster really run as a business unit to optimize price yield demand. In the markets where we have higher sellout, we take advantage of pricing. On the spot load, that's something dynamic; I would say, it hasn't really changed dramatically. Our focus is to get the price yield and supply/demand right to maximize the revenue on one hand and to maximize the listener experience.

Okay. You made some pretty good arguments in favor of large markets and then in favor of small and mid-cap markets. I'm wondering, as you look at the options, since you serve a number in both categories, how you're seeing the benefits and challenges of each? It sounds like you're tending to look at smaller markets as the area where you might want to take advantage of your solid leverage to make some opportunistic purchases.

So on the mix between the large and small markets, we like our mix where we are now because we don't know 100% where the dollars are going to flow. Let me give you a little bit more color between the larger and the smaller markets. National has been weak across the board, and it does impact our local markets, but it's impacted our smaller markets more than our larger markets. On the contrary, our local business in the smaller markets is holding up a little bit better than in the bigger markets. When you look at that balance, it comes out to a pretty decent local performance when you look at the national mix between smaller and bigger markets and then the local performance between the big and smaller markets. We've gone through a portfolio optimization of getting rid of the large city exposures. The larger DMAs were still in many large DMAs, and we think that that's a better position to be in; we actually have strong clusters to take advantage of the opportunities that are in front of us.

Okay. Maybe one last one. The RSM challenges, is this creating some opportunity for either your station group or Westwood One? Are you looking to pick up any additional sports rights? Is there a way to serve them with the vehicles you have?

No. As you know, our largest sports exposures are really national with the NFL and CAA. We do have some exposure to some local teams, but making the wholesale move into local sports is not something that we're actively looking at.

The next question comes from the line of Dan Day with B. Riley Securities.

And I understand you're facing a challenging backdrop here, but you still got over $100 million of cash on the balance sheet. You're still generating some pretty healthy free cash flow. It seems like a huge amount of cash for a company of your size. The stock is trading at a really attractive free cash flow yield. The bonds are trading at a discount. Maybe just talk about the capital allocation levers as you see them right now, whether the macro concerns make you hesitant to aggressively use that cash or if you plan on ramping up the cadence for the buyback or the bond repurchases and how you think about the balance between those options?

Thanks, Dan. You're correct. We do have a lot of liquidity, and that's actually a strategic strength and also a financial strength. We've taken advantage of that over the past several years, as I mentioned, reducing our debt by $400 million net debt since the pandemic. As we sit here now, we'll continue to be optimistic and look at the market opportunities while also assessing the operating environment that we're in. That's something we'll take a look at closely and always look at ways to enhance shareholder value either through debt pay down or stock repurchases. At this point, I really can't add more until we speak again at our first quarter earnings call, which will be at the end of April or beginning of May.

Okay. Great. Another question. So sort of like the ad tech and programmatic space, digital audio is increasingly a hot topic. Maybe talk about what you guys are doing to sell more of your digital inventory, whether it's the AM/FM radio spot versus AM/FM simulcast on digital, the podcast ads to sell that inventory programmatically rather than the old manual insertion order process?

Yes. We are focusing on selling that inventory in any way that we can, and that includes programmatic marketplaces. For example, you saw we had a lot of streaming growth, and two areas of focus there are to increase listenership of existing and then extend the platform that people can find our programming. In terms of the inventory cost, local, national, network, and advertising, we put all of the inventory into programmatic channels as needed. A big part of our growth right now is coming from monetizing our NFL streaming rights in the network market. We're working very hard and have had some success in increasing our CPMs against all sales channels. That is one of our strategies—pricing.

Great. One more, if I could. It's a question I get a lot of times from investors, just about whether or not there's a CPM difference between sponsors selling on the AM/FM broadcast versus the digital simulcast. Just wondering if there's a premium on the digital because they perceive a younger audience, better targeting measurement, all those things that digital brings, or whether it's roughly the same.

I would say, look, it varies by market. We do take advantage through total line reporting, which is a measurement that Nielsen came out with a while ago to boost our audience share. This allows us to go to market and actually get a better rate for the entire market where we can improve. We have both digital and over-the-air ads. But it does vary. Our programmatic dollars do vary from what we have in local. The key thing, though, is as we get more listeners listening to our product wherever, that gives us the pricing leverage that we need and also attracts a different type of advertisers who are looking for different demos or solutions depending on their needs.

The next question comes from the line of Kevin Wivell with Octagon.

Most of my questions were answered, but I was just wondering if you could disclose anything around the WFAS transaction in terms of maybe what kind of revenue or EBITDA contribution was coming from that station. I get that it's immaterial, but just from a multiple standpoint, any color there would be helpful.

I guess the way I should answer that is a $7.25 million proceeds or sale price against immaterial EBITDA is extremely high multiple. It's not going to have any material impact on our revenue, and it was a station that was there and not meaningful in terms of the financial results. This is highly accretive for us, and we've done these types of transactions in the past, clearly, as we've looked to optimize the portfolio.

Thank you. I will now turn the call back over to the company for any closing remarks.

Thanks, everyone, for joining, and we look forward to talking to you again at the next quarter. Have a nice day.

That concludes the Cumulus Media Quarterly Earnings Conference Call. Thank you for your participation. You may now disconnect your lines.