Good day, everyone, and welcome to the Saga Communications First Quarter Earnings Release. [Operator Instructions]. It is now my pleasure to turn the floor over to your host, Chris Forgy. Sir, the floor is yours.

Thank you, Matt, and good morning to everyone who's taken the time to join Saga's 2025 Q1 Earnings Call. We appreciate your continued interest, support and participation in what we believe is the best media company on the planet. It's been an interesting few months at the Sagaverse, headlined by several spirited conversations and strong opinions expressed on multiple topics surrounding Saga Communications, Incorporated. Times like these could create a cause to check one's strategy, one 's resolve and ultimately yourself. But before, during and after the recent conflict occurred, I was constantly reminded of the Stockdale Paradox. You may have heard it, it goes like this. In order to navigate difficult times, you must first confront the brutal facts, accepting the current reality, even if it's difficult. You must maintain faith by having an unwavering belief that you will prevail no matter how long it takes. You must be consistent, continuing to work through pain and uncertainty. You must acknowledge your mistakes and accept that failure and bad decisions are inevitable and then acknowledge it to yourself and to the rest of your team. You must overcome temporary difficulties by embracing challenges as temporary constraints and develop to plan to live in the disruption. Finally, you must stay focused and maintain a personal sense of resolve, spirituality, morality, values and meaning, and we have. To review some of those push points that included Saga's potential sale of noncore assets and what to do with the proceeds from those potential sales. For example, we've had multiple interactions with companies that have been interested in one or more of the towers we own. We are currently evaluating a nonbinding letter of intent to purchase some of our tower sites. The Board is committed to using a significant portion of the proceeds…

Thank you, Chris. This call will contain forward-looking statements about our future performance and results of operations that involve risks and uncertainties that are described in the Risk Factors section of our most recent Form 10-K. This call will also contain a discussion of certain non-GAAP financial measures. Reconciliation for all the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the selected financial data tables. For the quarter ended March 31, 2025, net revenue decreased 4.3% to $24.2 million compared to $25.3 million last year. Station operating expense decreased 2.2% to $22 million for the 3-month period. For the quarter, we had an operating loss of $2.3 million compared to $2.4 million last year. Station operating income, a non-GAAP measure, was $2.2 million for the quarter. Capital expenditures were $700,000 for the quarter compared to $1.1 million for the first quarter last year. We had a net loss of $1.6 million for the quarter, which was approximately the same as last year. On a same-station basis, for the quarter ended March 31, 2025, net revenue decreased 6.6% to $23.6 million and station operating expense decreased 5% to $21.3 million. Reflecting on operating expenses, it was good to see a 2.2% decrease in station operating expenses for the first quarter. This was the result of an increase in operating expenses of approximately $619,000 for the Lafayette acquisition and a decrease in same-station operating expenses of approximately $1.1 million. The decrease in same-station expenses was primarily due to a reduction in compensation and compensation-related expenses, bad debt and digital services as we are now doing some of our digital ad placement in-house. Corporate expenses increased $84,000. This included a $110,000 expense relating to a threatened proxy contest initiated by one Saga shareholder. There will be additional legal…

Thank you, Sam. As promised, Saga continues to pursue a digital strategy that has been carefully curated to focus on the needs of the consumer based on a deep understanding of consumer behavior and when they interact with an advertising message and a digital advertising marketplace that is simply broken and ripe for disruption. Saga's click, visit, call and search approach provides the advertiser with an easy-to-understand, easy-to-use and easy-to-buy solution to get the advertiser wanted, found and chosen, ultimately resulting in more sales and higher customer retention. Saga's digital strategy helps us differentiate ourselves from other digital solutions by providing higher margin, lower attrition and customer-focused solutions versus the product-oriented offerings that currently exist in much of our current digital marketplace. And it all starts with radio, the best, most efficient medium to persuade the consumer to take action. How and why is this digital marketplace ripe for disruption? Several reasons. Number one, there's a significant increase in digital ad spend. There are frustrated buyers with unmet needs. Advertisers are simply fed up with inefficient ad campaigns and empty promises. They don't like what they are buying and who they're buying it from. And there is a fragmented and confused advertising marketplace as well. There are just too many providers, too many conflicting solutions, businesses don't know who they can trust. And in this case, simplicity and clarity win. There's a shift in consumer behavior. Digital advertising strategies have not caught up with the journey people take when they buy a product or service. In other words, there's a gap where tech meets human behavior. The problem Saga is solving with its rapidly growing digital strategy is to provide our customers with the digital advertising solutions that are, as I said earlier, easy to understand, easy to buy, easy…

We do. We got a few questions that came in this morning, Chris. Most of them, I think we've already addressed, but I'll just walk through it. I mean the first one is, it seems that there has been some impact on advertising spend related to the concerns around the tariffs. Are you seeing improvement in ad trends following assuaged concerns around tariffs?

I think there is a -- will be a ripple effect. We're going to see it on Main Street. We're going to see it in all products and services that are sold and consumed. We have not seen that as of yet. As I mentioned in the early parts of the call, Sam, one of our categories that had not been in the top three has now inched its way back in, and that's automotive, which seems to be the biggest discussion about where the tariffs are going to be coming from. And so we'll see, but there certainly will be a ripple effect in cost of goods sold.

Yes. And I think, Chris, the other aspect of that is that there's volatility still. Nobody knows from day-to-day where the tariffs are. I mean, supposedly this morning, there's going to be an announcement about reaching a tariff agreement with the U.K. Supposedly, we're having conversations with China, but I don't know that any of us know from day-to-day where that stands. So still to be determined as we go forward. The two questions, had to do with digital performance in the quarter and what the trends are in the second quarter and breaking down digital and legacy broadcast revenue guidance? We don't break it down specifically. I do think we addressed the performance in the quarter and the trends in the second quarter. So I believe that will help with the questions. And then the last was any color on the advertising categories that are weakened from the first quarter versus the second quarter. And I think you addressed what had strengthened in the first quarter and where we were going. So I'm not sure that talking about the weakened categories because we are seeing some of our main categories do very well right now and showing some positive growth for the second quarter. So with that, I'm going to turn it back over to you again, Chris.

Thank you for your questions. Thank you, Sam. Thank you again to all of you who have joined us for the Saga Q1 earnings call, and thank you for your interest in Saga Communications, Incorporated, what we believe is the best media company on the planet. Thank you, and have a great rest of the week.

Thank you, everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

Thank you, Matt.