Peter D. Thompson: It assumes that we win the Richmond referendum and we buy the land that Alfred referred to in fourth quarter. So that cash goes out the door and it assumes that we close on the acquisition in Houston. So that net $17 million goes out the door as well, but we pro forma and call it $5 million of EBITDA from that transaction.
Bradd Kern: And no additional debt buybacks in that number? Modeled into that number?
Peter D. Thompson: No.
Bradd Kern: Okay. Thank you. That’s all my questions. Appreciate it.
Operator: We’ll go next to the line of Matthew Sandschafer with Mesirow. Go ahead.
Matthew Sandschafer: Hi guys. Thank you for sneaking me in here near the end. Just a couple of housekeeping questions. What are you guys planning to spend on content this year? That number was obviously pretty high in 2022.
Peter D. Thompson: Yeah, it was high in ‘22. I was just looking, I think mid-50s, Jody’s here with us. He can speak to if he’d like. But I think we’re looking at cash. I’ve got — on my sheet at least, cash spend in the kind of mid-50s.
Matthew Sandschafer: Did you say mid-50s? I’m sorry, I’m having a little sound issue.
Peter D. Thompson: Yeah, mid-50s.
Matthew Sandschafer: Okay, great.
Peter D. Thompson: I think it normalizes better than last year, from a cash standpoint.
Matthew Sandschafer: Okay, great. Thank you. And were there any unusual cash expenses in the radio or digital segments in the fourth quarter specifically, as margins took a little bit more of a hit than I might have been expecting? And I’m sorry, if you went through that during the first part of the call, when AT was on, but I missed it.
Peter D. Thompson: Yeah, there were a few things, Matt. There was some noise in the number. So obviously, we had the high watermark year, so bonuses were higher than they otherwise normally would be. So that was some of that. In margins in digital, we talked a little bit about the fact that those were impacted by higher traffic acquisition costs, that was $2.3 million, also higher content costs at digital and ad production costs. So those margins compressed. Other than that, there wasn’t anything particularly material.
Matthew Sandschafer: Okay, great. And then the — that mid-60s free cash flow number you mentioned, does that include the MGM dividend this year or are you rolling that up into the sale price?
Peter D. Thompson: That is in the sale price, so that’s not — so that mid-60s, hang on a second. Good point. Let me just double check before I speak on the — shouldn’t have, yeah, we have — actually, no, sorry, that does include it, Matt. That is rolled up into it, the $8.7 million of receipts. Is in the mid-60s. Sorry.
Matthew Sandschafer: Okay. And I guess just generally on the digital side of things, you mentioned a higher traffic acquisition cost. There’s some guidance for what looks like kind of persistent lower margins going forward. What do you think about that competitive landscape overall? It feels like — as you guys know, it feels like every radio station and not just radio obviously, but every radio station company has been trying to get into that business in a significant way. What do you think is driving the higher traffic acquisition costs? Yeah, go ahead.
Alfred C. Liggins: Yeah, our digital business is different than everybody else’s radio business — digital business. Our digital business is largely as a content publisher where we sell video ads and display advertising, probably roughly 40% of our revenue this year it would be digital video. We’ve got some streaming revenues. Forgot what it was. I know it’s at least 5%. I don’t know if this is — excuse me, at least $5 million. I don’t know if it’s going to be a little higher.
Peter D. Thompson: $5.7 million, and it’s in the $5 million.
