, : The Latin phrase we use, it goes like this, Finis Origine Pendet or translation, the end hangs on the beginning, looking back, while moving forward. That’s the reason we are so optimistic as you heard Sam and I say during this call and others. We’re really optimistic about 2024 and beyond is simply this. Many of the processes we put in place are just now starting to bear fruit and are far from reaching maturation stage. As we begin a somewhat uncertain 2024, serving our communities, our customers, our employees and our shareholders, we do so with a sense of certainty of purpose, with an unrelenting faith and trust in our processes and without cynicism or despair. We will run like our hair is on fire, and set sale with a very optimistic belief for growth in 2024.
Looking back, yet moving forward and then some. Thank you all again for your time and your interest and your support of Saga Communications, the best broadcast company on the planet. Sam, do we have any questions?
Q – :
A – Samuel Bush: We did. We got a few questions in. Some of them are related. Some of them are totally independent. We had a couple of our investors, sending questions. And the first one is, please give us some more details on the digital growth rates as you enter 2024 and beyond? Notes that we’ve made great progress, as you pointed out, Chris, but is playing out that we still like our peers and is wondering what our thoughts are for 2024 and beyond?
Christopher Forgy: I’ll start and then you can add color if you’d like, Sam. Sam and I touched on this during our remarks during this call and others. Currently, our digital represents 8% of total net revenue and we have forecasted that number going to 11% in 2024. Again, the biggest lift we anticipate is with our blended selling process, and that will impact both local and digital. And we’re still in the process of implementing this process in our markets. We’re just about completed. We anticipate big gains from this area. Sam, anything else you want to add to that?
Samuel Bush: No. I think that’s good. With my reference to the folks that best-of-class individuals we brought on hand. We’ve got the team to do it. We were a little slower, as you pointed out before and adapting – adapting to the digital marketplace, but we’re running at a very fast pace right now, and I think you’ll see some very good improvement in 2024.
Christopher Forgy: And I want to take this time to recognize somebody who has just done a yeoman’s work in development of this and implementing this. We call him the architect of innovation and change. His name is [Matt Burgoyne], and he is the one who is leading the charge on this. And we’re thus far, very excited and very pleased with the progress.
Samuel Bush: Shareholders also asked, a couple of them, ask about Lafayette, which we’ve talked about already. Did have one shareholder ask what’s the multiple paid for Lafayette? And Chris and I’ve told you and told a lot of people, I’m not fan of multiples because when I was a banker, I always said there were five multiples in a deal. Here’s what the buyer said they paid, there’s what the seller said they received. There’s what the banker financed, there’s what the broker said, they got to enhance their position as being the best broker in the business, and then there was the real multiple. So multiples are tough to use because we look at them in a number of different ways. Some people do all sorts of add backs when they make an acquisition or here’s how we’re going to do it.
And therefore, the multiple changes. Long and short of it is, I think, as Chris pointed out, we believe Lafayette is a great opportunity, you don’t know much about the area. Purdue University is growing extremely, strongly when you go down there and see the cranes and the new buildings. Lafayette itself has a big Caterpillar plant, which has expanded to Subaru plant, which has expanded Rolls-Royce there with the aviation division because of their relationship with the aviation department at Purdue and so on. It’s just a very exciting market. And the fact that Neuhoff has been so locally involved they’ve set up a basis for us to use all our tools and resources to really enhance what we’re doing. So we’re not prepared to give a multiple or give a specific financial impact for 2024, but we are looking forward to closing and you’ll hear more about how they impact our financials as we go forward.
Christopher Forgy: We are prepared to say boiler up.
Samuel Bush: Boiler up, hammer down. We also got a couple of questions or another question from Michael Kupinski at Noble Capital. And I think I’ve already answered one of these questions. We provided some general pacing data for the first quarter and for the second quarter. And he’s asking to expand upon Lafayette, Chris, is how are we seeing the current M&A market? And are there other opportunities?
Christopher Forgy: As we said before, there are other opportunities. In fact, we received one yesterday, and they will continue to come. I think as we’ve shown in the marketplace that we are a buyer, not a seller, but they’re going to be very prudent and we’ll be careful purchases, obviously, when we do make those purchases, and they will need to be consistent with our market acquisition strategy. So yes, I think there are opportunities going forward. We will just review those on a case-by-case basis and move accordingly.
Samuel Bush: Very good. And then the final question, and we’ve already touched on it to some extent, but give you a chance to add a little bit more color to it, if you’d like, Chris. Again from Michael Kupinski. In terms of your revenue diversification strategy, what is the outlook for national advertising? What is classified as national advertising? This has been a growth area for the company, but it’s been tough for your peer group. What are you seeing that others are not?
