Gray Media, Inc Q2 FY2025 Earnings Call

Good morning, everyone. Welcome to the Gray Media Q2 2025 GTN earnings release. I will now hand the call over to Chairman and CEO, Hilton Howell.

Thank you so much, Chris. We really do appreciate it. Good morning, everyone. This is Hilton Howell, the Chairman and CEO of Gray Media, and I want to thank all of you for joining our second quarter 2025 earnings call. We have a lot to talk about today. With me here in Atlanta are all of our executive officers: Pat LaPlatney, our President and Co-CEO; Sandy Breland, our Chief Operating Officer; Kevin Latek, our Chief Legal and Development Officer; and Jeff Gignac, our Chief Financial Officer. And as usual, we will begin with the disclaimer that Kevin will provide. Kevin?

Thank you, Hilton. Good morning, everyone. Today, we filed with the SEC on Form 8-K, our earnings release and an updated investor slides. Later today, we will file with the SEC our quarterly report on Form 10-Q. Materials are all available on our website, which is www.graymedia.com. Included on the call may be a discussion of non-GAAP financial measures and in particular, adjusted EBITDA, leverage ratio denominator and certain leverage ratios. These metrics are not meant to replace GAAP measurements, but are provided as supplements to assist the public in its analysis and valuation of our company. Further discussions and reconciliations of the company's non-GAAP financial measures to comparable GAAP measures can be found on our website. All statements and comments made by management during this conference call other than statements of historical facts should be deemed forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties. Actual results in the future could differ from those described in the forward-looking statements as a result of various important factors that are contained in our most recent filings with the SEC. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Now I'll return the call to Hilton.

Thank you, Kevin. Today, we are very happy to announce that our results for the second quarter of 2025 finished better than our original guidance on both revenues and expenses and in line with our revised guidance announced on July 8, 2025. Total revenue in the second quarter was $772 million, a decrease of 7% from the second quarter of 2024 and 1% above the high end of our original guidance for the quarter. Total operating expenses before depreciation, amortization, impairment and gain on disposal of assets in the quarter were slightly below the low end of our original guidance. We had a net loss of $56 million in the second quarter compared to net income of $22 million in the second quarter of 2024. Adjusted EBITDA was $169 million in the second quarter, a decrease of 25% from the second quarter of 2024. Political advertising was obviously lower in the second quarter of 2024, yet similar to the first quarter this year, second quarter 2025 political finished well above our expectation for an off-cycle year. In addition to these results, we have been very active on the M&A front in the past several weeks. If you recall that we reopened the TV industry M&A market in the spring when we obtained an FCC waiver to acquire the FOX affiliate in Rochester, Minnesota and created a duopoly with our NBC station there. In July, we announced a first-of-its-kind 5-market no-cash swap of assets with Scripps. That transaction will bring us into the Lafayette, Louisiana market and include a FOX affiliate in Lansing, Michigan, where we currently own the NBC affiliate. While our decision to sell our TV stations in Colorado Springs, Grand Junction and Twin Falls, Idaho was a very difficult one, we are excited that Gray and Scripps found a path that improves our respective strategic positions and creates more opportunities for the stations in these 5 markets with their new respective owners. Last Thursday, we announced the acquisition of 2 shared services stations from Sagamore Hill Broadcasting for less than $2 million. And then on Friday, we announced the acquisitions of all Block Communications television stations which are located in Louisville, Kentucky; Springfield-Decatur, Illinois; and Lima, Ohio for $80 million. And finally, this morning early, we announced an agreement to acquire television stations in 10 markets from Allen Media for $171 million, including the 3 new markets of Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana. So today, everyone on the calls, please be nice to Kevin. He's been up all night last night and has had no sleep. So he has been a little sleepy on his answers. Together, the Scripps, Sagamore, Block and Allen transactions will add a net 6 new markets to our portfolio. We are particularly proud that we will enter each of these markets with the local news station that was ranked #1 in their respective markets in 2024. These transactions also will create, and I'm really impressed with this, 11 new Big 4 full powered duopolies. In all of these markets, we expect to leverage our new sales and sports strategies for the benefits of their local communities and for the public interest. Each of these transactions also furthers our commitment to pursuing tuck-in and duopoly creating transactions in a prudent manner. When totaled across all 4 transactions, we will be adding strong assets that will be immediately cash flow accretive and therefore, will contribute to our efforts to improve and enhance our company's balance sheet. We have had a busy few weeks putting together these transactions, and we are not likely to continue at this pace in the next quarter or 2. Instead, we will focus the balance of this year's strategic energy on obtaining the necessary regulatory and other approvals to ensure prompt closings of these announced transactions as well as working to ensure smooth transitions for the affected employees, advertisers and other stakeholders, all by the end of 2025. We also made significant progress on strengthening our balance sheet during the second quarter of this year and into the third quarter of this year. During the second quarter, we reduced our outstanding indebtedness by an additional $22 million. We finished the second quarter with a first lien leverage ratio of 2.99x and a leverage ratio of 5.6x, each as defined by our senior credit agreement. In July of 2025, we completed an offering of $900 million of senior secured second lien notes, along with a $50 million increase in our revolver commitment, which now stands at $750 million. The exceptional demand from the second lien transaction allowed us to also extend a $775 million first lien debt issuance. Jeff will provide more details on each of these transactions later in the call. I'd like to simply say thank you to our investors who are supporting us as we continue executing on our deleveraging and growth strategies. As noted in our press release this morning, our Board of Directors declared the usual $0.08 per share quarterly dividends. As always, our Board will consider capital allocation each quarter in light of other opportunities to deploy capital for growth. Operationally, we continue to enhance our local content offerings in the second quarter of 2025. We now have local and regional professional sports deals covering nearly 80% of all of our markets. Our stations and our people continue to receive national recognition for their outstanding journalistic efforts. We are incredibly proud of our combined 81 regional Edward R. Murrow Awards for excellence in journalism to 38 of our television stations. I'm also exceptionally proud of KWTX in my hometown of Waco, Texas for spearheading a company-wide partnership with Graham Media on a campaign to raise money for the Texas floods in Kerrville, Texas. That campaign raised over $1.1 million, once again demonstrating the power of broadcast and our company's commitment to serving local communities. In June, we announced that we had renewed our affiliation agreement with CBS for 2 more years. As part of that agreement, WANF, our primary television station in Atlanta, will become an independent television station. There are numerous examples of very successful independent television stations across the country and indeed within our own company, which includes KTBK in Phoenix, Arizona's Family, which is the #1 station in the market and across the state of Arizona. We are excited for WANF to officially make the transition next week, and our community should be excited to see their Braves, the Hawks and the Dream and all of our expanded local offerings that are uniquely Atlanta. The momentum at Assembly Studios also continued in the second quarter of this year. The CBS daytime soap opera, Beyond the Gates, which we discussed on our last call, was extended for a second season and will continue to contribute to the activity on site at Assembly. We are actively engaged with potential development partners who are contributing or would be contributing their financial resources and development expertise to accelerate value creation at Assembly Studios. We expect to have more announcements about these exciting plans later in 2025. We have made a lot of progress so far this year and are excited that we are capitalizing on opportunities across multiple aspects of our business to enhance shareholder value. At this time, I'll turn the call over to Pat to address our operations.

Thank you, Hilton. As you saw in our July 8 guidance update, we finished the quarter at the better end of both our revenue and expense guidance. Let me provide a little more context about how the quarter played out. Q2 started with the same cautious tone amongst our advertisers that we experienced in the first quarter, particularly in the auto category. Through the quarter, we saw stronger core activity than we projected back in May, and we ultimately finished on the high side of guidance, down about 3% versus second quarter '24. From a category perspective, like in first quarter and as we guided for second quarter, automotive came in down high single digits. Legal continues to grow nicely, up double-digit percentages versus last year and is a top 5 category. Other categories are a mixed bag, in some cases, surprisingly resilient. Restaurants were soft, but discount and department stores, tourism and entertainment, all linked to consumer discretionary spending were up over 5% versus last year. More essential categories like health, home improvement, education and financial services were flattish. Digital was up again nicely at 8% and our new local direct business grew a little over 2% in the second quarter of '25. Our multimedia sales teams continue to partner with advertisers to bring new businesses to our trusted local platforms. Once again, political ad revenue, as Hilton said, was ahead of our expectations in the second quarter of '25. Our guide for the second quarter was about $2 million to $3 million, while our actual results came in at $9 million. Most of this revenue is generated from issue advertisers, supporting the President's legislative priorities, but we saw spending from the Arizona Governor's race as well as the Georgia Senate and state races in Virginia. Providing guidance for the third quarter of '25 continues to be challenging. We have guided our core ad revenue to be down low to mid-single digits. It's important to remember, however, that the Olympics on NBC provided about a $20 million uplift in July and August of '24, of which about $4 million was political. If you factor that in, our third quarter guide is flat to slightly up. Across the categories in the third quarter, we're seeing automotive and also restaurants facing lower. And we're also seeing some pockets of strength still in legal, consumer goods and entertainment. We expect digital revenue to be up low double digits in Q3 with a continuation of political spending. Jeff will now address the key financial developments of the quarter.

Thanks, Pat. As Hilton mentioned earlier, reducing debt and leverage remains our top capital allocation priority, and we remain focused during the second quarter. We continue to chip away at our debt by repaying an additional $22 million in the second quarter of 2025. This is our total capital markets debt reduction since the beginning of 2024 to $560 million. Our expense reductions that we've been discussing on our prior calls are showing up in our results and supporting the other side of the equation. Notably, our operating expenses were flat in the second quarter of '25 versus the second quarter of 2024, and that follows a decline in the first quarter versus first quarter of '24. We finished the quarter at 2.99x first lien leverage and 5.6x total leverage, each using the calculation in our senior credit agreement. On our first quarter call, we raised the possibility of M&A providing another avenue to reduce leverage and enhance our ability to serve our markets. As we described, our guiding principles on the M&A front focused on finding deleveraging transactions that are strategically important and/or create duopolies to strengthen our local market presence. Indeed, our transactions with Scripps, Sagamore Hill, Block and Allen will be immediately accretive to cash flow and to our leverage ratio when we close later this year. We estimate that if we close these transactions today, our leverage ratio would be approximately a 0.25 turn lower than where we finished the quarter. We're continuing to make progress on our net retransmission and moving towards sustainability on that front. This is a function of a multiyear effort that continues. We continue to work with our network partners to find mutually beneficial arrangements. In July, strong market conditions allowed us to access the debt market twice. As we evaluated our options, it became clear that raising some junior capital could accomplish a number of objectives. We also wanted to set the stage to refinance our first lien debt after 2026 political cash flows. We ended up raising $900 million of 9.625% senior secured second lien notes due 2032, and we concurrently increased our revolver by $50 million to $750 million and also extended our revolver maturity to December 1, 2028. The new second lien layer in our capital structure fully repaid our 2027 notes and reduced first lien leverage by repaying $403 million of our Term Loan F. Given the strong reception to the second lien, we quickly followed with an issuance of $775 million of 7.25% first lien notes that lowered our cost of debt and extended our maturities out to 2033. As a result of these actions, we have no material maturities until December 2028, and we have a clear path to address our remaining '28 and '29 first lien maturities. We completed the transactions with less than a 25 basis point increase in our overall cost of debt, and you'll see that reflected in our updated interest guide. Importantly, we also have access to balance sheet and internally generated capital to reduce debt and to pursue deleveraging M&A. Taking into account the July refinancings, we estimate that our first lien leverage decreased from 2.99x to 2.6x, our secured leverage increased from 2.99x to approximately 3.6x, and our total leverage did not change other than from the impact of the transaction costs. One last thing I'll note, the One Big Beautiful Bill Act allows for greater interest deductibility. As a result, you will see that we lowered our tax guidance for the year, and we no longer expect to make any material tax payments for the remainder of 2025. This concludes my remarks, and I'll turn the call back to Hilton.

Thank you so much, Jeff. And operator, we'd love to open up the line for any questions you guys may have.

First up, we have Dan Kurnos of The Benchmark Company.

Yes, there's a lot to discuss. I appreciate all the insights, everyone. First, I want to acknowledge Jeff for the fantastic job he's done with the balance sheet. Well done. Now, Hilton, regarding your current position, does that mean you will keep exploring swaps and other options for improvement? You have quite a bit to process after your recent actions, but I'd like to know your direction if an opportunity comes up. Jeff, you mentioned the improvement in leverage after the transaction, but can you provide any insights on synergies or buyer multiples for some of these?

Thank you, Dan, for your comments about our balance sheet; it truly was an impressive achievement. I'm very proud of Jeff Gignac and our entire team's effort. Since the announcements discussed in Rochester, Minnesota, we've engaged in numerous transactions. It's clear that industry conversations are ongoing among companies. While we don't have immediate plans for additional transactions, we're always open to opportunities. Sandy, who is also here, will have a significant task ahead as we have many markets to manage. When operating a business, it's essential to ensure that what we take on is manageable. I'm genuinely excited and would like to express my gratitude to the entire management team at Scripps. It's often challenging for two companies, proud of their assets, to reach a mutually beneficial agreement, and we succeeded. This will greatly benefit Scripps and Gray. Initially, we had a duopoly in Lansing, and with the acquisition through Scripps and our recent announcement regarding Allen, we are establishing a second duopoly in Lafayette, Louisiana, along with new duopolies in various markets. Jeff mentioned that finalizing these transactions could reduce our leverage by about 0.25 points, which is a positive outcome. We've initiated several other strategies aimed at further debt reduction on a ratio basis moving forward. Regarding potential deals, we are open to discussions, but we have significant work ahead in getting these transactions approved by the FCC. I don’t foresee any considerable obstacles to completing them, though Kevin could provide a more informed perspective on that. We are enthusiastic about integrating around six new markets into our portfolio, enhancing our presence in local markets. As you know, Gray Media is well-regarded for its content, evidenced by our 81 Edward R. Murrow Awards, and we look forward to expanding local news, introducing new local sports, and providing exciting content in all these markets.

Dan, this is Kevin. I'll just add some comments on the transactions. There has been a lot of discussion about how busy everyone is with transactions, but Gray has announced five this year, with four in the past four weeks. The Scripps deal, as Hilton mentioned, is unprecedented. No one has executed a deal like that before. The Allen Media transaction announced a couple of hours ago and the Block transaction required significant time for negotiations and coordination. We have a lot of work ahead to secure all the necessary approvals. Additionally, we need to plan for and integrate essentially 17 new markets and duopolies, which will be our primary focus. While we are not ruling out opportunities, Hilton's comments indicated that we will concentrate on executing the transactions we've already announced rather than pursuing four, five, or six more transactions in the coming months. Regarding cash flow, we aren't commenting on multiples or cash flows. We have made it clear over recent calls that we will engage in transactions only when they are beneficial for reducing leverage, which is exactly what we've done. When I joined the company years ago, Gray had a higher leverage than it does today. We managed to reduce that by engaging in deleveraging transactions, starting small and gradually taking on larger ones. These transactions were completed at multiples lower than our leverage ratio and were crucial in improving our situation. We are following a similar strategy now. However, I want to emphasize that we do not expect to engage in multiple transactions in the next few months, as our primary focus will be on finalizing these deals, integrating them, securing capital, and expanding our news and other strategies that we've discussed.

Next up, we have Steven Cahall of Wells Fargo.

Just wanted to dig a bit more into the M&A as well. So Jeff, I was wondering if you could break the quarter turn improving leverage down to help us understand maybe what the net cash out is and what the EBITDA contribution is. And should we think of that as inclusive of synergies? Or is that prior to, I'm sure, what are some really significant synergies that you'll be able to drive through?

Yes, Steven. We don't want to comment further on the quarter turn reduction in our total leverage ratio, including funding and synergies.

Okay. Got it. And then just on the Q3 guide. So I know you went through a change in the way WANF is going to receive certain fees and expenses with its CBS affiliation. So I was just trying to understand if that had a meaningful impact on the retrans revenue guide for Q3 and overall EBITDA as well for Q3, which I think is quite a bit below where you were in Q3 2023.

Yes, the answer to your question is yes. We won't go into the specifics of the numbers for any single station. Clearly, everyone is investing in the company overall. Generally speaking, the P&L at WANF will favor advertising much more. A portion of the retrans revenue will see a decrease in the rates at WANF. Our guidance reflects what we currently see on both sides, taking into account everything we know as of now.

And Steven, let me just add something because I think color is kind of important, if you don't mind. With regard to WANF, we hosted our Board of Directors meeting there yesterday. It had been planned for some time. It couldn't have gone better. But one thing that we did, we utilized about 2 weeks ago, Atlanta Studios and had a full mini Atlanta-based upfront. And we had more than 300 guests that attended. It could not have gone better. And we expect to have a candidly, a very robust sort of advertising opportunity, not just with the local community, but also for the political community. We've got a lot of political races that will be coming up in 2026. We're going to have a tremendous amount of local news, local sports, local entertainment and content that's really good. And so we're actually very excited about Atlanta, our commitment to the city and the state of Georgia. And I think it's going to be amazing what we do as an independent here in the city.

Next up, we have Craig Huber of Huber Research Partners.

My first question will just start with the CBS Atlanta station stuff. Can you just talk about what happened there exactly? I mean why the switch? I mean this obviously rarely happens in the industry when an affiliation is not renewed. What can you comment there, please?

In the mid-1990s, CBS and Paramount came together. Paramount had a group of independent stations while CBS owned and operated stations affiliated with their network in almost all markets, except for a few. The only places in the U.S. where a network owned a TV station not aligned with its network were Atlanta, Seattle, and Tampa, and this was specific to CBS. We have anticipated for nearly three decades that CBS would be interested in shifting its affiliation to those independent stations eventually. Following Gray's acquisition of Meredith, we knew there was a strong chance CBS might make that move. After we closed on the station, we made significant investments, as we've previously discussed in calls and press releases. We changed the call letters to Atlanta News First, WANF, and focused entirely on establishing the station's identity as Atlanta News First. We expanded our team with numerous reporters, increased local news coverage, and enhanced our resources, which is reflected in research, ratings, and station sales. At some point, we knew the station would operate independently. With the Super Bowl coming to Atlanta in February 2027, we believed CBS would want the affiliation back with the independent station before the Super Bowl and likely before the 2026 NFL season. During our negotiations with CBS, the opportunity arose for us to revert to being an independent station at this time. We felt confident about the station's achievements, having increased from three regional Emmy nominations at the time of our purchase to over 30 last year, along with winning a national award.

for over 50.

Nominated for over 50 awards, we have a long list of recognitions that go beyond journalism, reflected in every measure of our station. We felt this was the right time to take the station independent, not during a political year, but now. We coordinated a transition with CBS for our station to operate independently this month. This change has its roots in the 1990s when Paramount and CBS merged. We've received numerous inquiries linking this shift to events from the past few months or years, but it truly has no relation to recent developments. The situation was set in motion since the mid-1990s, and Gray recognized the challenge and prepared for this day. We are fully prepared, excited, and ready for the station to be recognized as Atlanta's News First in every category, and we anticipate achieving that in the near future.

And Craig, let me just emphasize in a public fashion. I mean, we still are a very excited CBS affiliate group. We renewed in 52 markets, and we're friends with the management team. This transition has gone well. And we wish at the CBS Atlanta, Channel 69, all the best in the future, and we will be happy competitors with them. And so there is no problem there. And I think that the broadcast affiliate relationship, while always challenging, will still remain one of the great partnerships in business.

Next up, we have Alan Gould of Loop Capital.

I've got two questions. First, Jeff, congratulations on extending those maturities until after two more political cycles. If your pro forma debt is currently around 5.75 times leveraged, how much do you think that can decrease by the end of 2028 with those additional political cycles?

Without providing a specific figure, we anticipate a significant decrease. Currently, we're at 5.6. We've experienced some pressure on our denominator, which we believe will lessen as we proceed, thanks to the actions we've undertaken. You can project your expectations for cash flow during the '26 and '28 political cycles. We've been transparent about our capital allocation strategy and our efforts to reduce debt. With 10.5% debt in our capital structure, repaying that debt quickly presents a considerable opportunity for returns. The second lien deal was structured to achieve this goal, and you can find more details in the investor presentation we shared, outlining our plan and future steps. We're committed to addressing the deleveraging process and while focusing on capital allocation, we also see opportunities in M&A as a way to expedite the deleveraging, which provides immediate benefits and enhances our cash flow in the long run. Although it's premature to predict where we might be by 2028, we've clearly stated our long-term goal of reducing leverage below 4x, which will positively impact our equity and cost of debt, among other advantages.

Alan, this is Hilton. I want to share some historical context without getting into specific dates. When we completed the Raycom transaction in 2019, we leveraged up to around 5.5x to 5.6x. However, within 18 months, we brought that down to 3.5x. The landscape has changed since then. The significant difference between that deal and the Meredith transaction, which was the last time we incorporated any debt, has been the last four years of rising interest rates aimed at addressing inflation driven by excessive government spending. I believe we are now entering a period of declining interest rates. We have achieved a balanced situation, and I recommend considering the Raycom transaction as an important reference point.

Next up, we have Eli Lapp of BMO.

Sort of a 2-part, maybe following up on some prior questions. But I was wondering if you think about acquisitions, how does the size factor play in? Meaning your goal is to delever with these transactions. Does size play a decent role in that endeavor? And then also, can you give us a bit of a timetable for when the synergies get leveraged to that lower 0.25x that you're outlining?

Well, this is Hilton. I think that those decreases in leverage happen almost upon closing. And so it could be very, very rapidly with regard to when those are realized.

There is a brief implementation period, but the benefits are realized quickly after we finalize those transactions. This will soon contribute to the actual cash flow of the business. Regarding the transaction size, we cannot comment on specifics, but we evaluate opportunities that make sense for us. You can see our previous actions. The advantage of forming duopolies in these markets, especially for the transactions we are discussing or the stations we are acquiring, is that they are generally less risky in terms of integration and implementation. They are compatible, and we are familiar with these markets, as we already have personnel in many of them. This presents a great opportunity to enhance our market presence and achieve our goal of being the news leader while serving our communities and advertisers. We will evaluate future opportunities, but we have a lot to manage at the moment, and we are satisfied with our current announcements. However, I cannot fully predict what other opportunities may arise that could be beneficial.

Well, I'll just add one other thing, too. I mean we all expect to see significant changes in the regulatory environment. But at some point, bigger transactions are going to depend upon what happens with the FCC, the DOJ and the regulatory environment. So it's kind of tough to say, all right, we want to do some huge deal or we want to put our companies together with another company or anything else because we need to see the parameters of what the world looks like from a regulatory standpoint before we can do anything one way or another. And so we're kind of in a wait-and-see mode on bigger things.

Next up, we have Avi Steiner of JPMorgan.

I've got a couple of questions. First, and if I missed this, I apologize. I recognize that everyone is talking to everyone, but I'm curious if the 2 groups of TV assets you just bought from Block and Allen Media, were those competitive auctions? Or did the sellers approach you because of maybe particular benefits Gray brings to the table? And then I've got a couple more.

Yes, Avi, due to time limits and the number of callers, we're only taking one question per person. I believe we have a call scheduled for you later today, so we can address any additional questions then. We're under NDAs with our sellers, so we can’t discuss their processes. It’s a small industry, and everyone knows each other. I’ve been working with the Block team since I began in this industry in 1997, so I've known them for a long time. We know Byron well; we've completed several transactions with him in the past, and I served on the CBS affiliate Board with him for four years. We’ve encountered each other at various industry events, so we don’t need brokers to make introductions. Everyone is familiar with one another. Sometimes bankers are involved, sometimes they're not, and I think they’re not involved in our current transactions. Whether someone opts for an auction process, hires bankers, or just contacts us depends on their individual situation, and we can't comment on their choices. Our relationships with the parties involved, including Scripps, have significantly influenced our ability to complete these transactions. Trust and a history with these individuals are crucial for ensuring that everything goes smoothly and gets finalized, which is very important to us. We’ll have a call with you shortly to discuss your other questions at that time.

And with that, ladies and gentlemen, we do have time for one final question. David Hamburger of Morgan Stanley.

Your guidance for the third quarter shows a sequential decline in retransmission consent revenue of about $25 million, and it shows a decline in network affiliate fees of about $19 million. I don't think we've seen such a big kind of step function in sequential trends in those 2 line items. Does this have to do with the CBS affiliate change? Or is there something else that we should think about? And should we think about that going forward as well?

Yes. So look, there definitely is an impact from WANF. This is Pat LaPlatney, by the way. But the change in the reverse payments, the drop in reverse payments is the result of a multiyear effort to create a sustainable model, and we feel like we're getting there. That effort is ongoing. And look, there's a lot of pieces to these network deals. Obviously, the financial piece is big, but there's a lot of pieces, and we're doing everything we can to find agreements that make sense for not only us but our network partners. So it's not just WANF, it's a lot of things.

Well, I think that's the last question. And so in closing, let me first thank everyone for joining us this morning. And I want you all to be nice to folks if you have calls scheduled later today because we literally finished off at dawn this morning on the Allen transaction. And literally, everyone from our Board of Directors to everyone sitting around this table today has been involved, and we're very excited. I think these transactions are tremendously accretive, but it's even more than that. They're immensely strategic. They're going to help us in terms of the growth of our sports portfolios, whether it's the Pelicans out of New Orleans or the Braves out of Atlanta. Across the board, they expand what we can do and what we can deliver as a local broadcaster of note. We are very proud of our company, and thank you for your support and your interest this morning. We'll talk to you guys next quarter.

And with that, ladies and gentlemen, this does conclude your call. You may now disconnect your lines, and thank you again for joining us today.