Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2024 was $103.5 million, down from the previous year, primarily due to challenges in the cable TV business and a decline in radio advertising [5][8] - Consolidated net revenues decreased by 2.7% year over year to approximately $170.1 million [9] - Net loss for Q4 2024 was approximately $35.7 million, or $0.78 per share, compared to a net loss of $11 million, or $0.23 per share, for the same quarter in 2023 [17] Business Line Data and Key Metrics Changes - Radio Broadcast segment net revenue increased by 14.5% year over year to $47.7 million, but excluding political advertising, it was down 5.1% [9][10] - Reach Media segment net revenue was $9.6 million, down 10.7% from the prior year [10] - Digital segment net revenue decreased by 3.1% to $20.5 million, with political advertising contributing $2.4 million [11] - Cable Television segment revenue was approximately $39.8 million, a decrease of 15.9%, with advertising revenue down 21.4% [11][12] Market Data and Key Metrics Changes - Local ad sales were up 0.1% against a market decline of 5.2%, while national ad sales increased by 35.4% against a market increase of 28.4% [9] - Subscriber churn for cable TV was reported at -9.5% for the full year, with a decline in payable subscribers from 39.1 million to 37.2 million [12][18] Company Strategy and Development Direction - The company is focusing on cost containment and debt reduction, with a target of $75 million in adjusted EBITDA for 2025, down from $103.5 million in 2024 [8][9] - Management is optimistic about stabilizing the cable TV business and improving the radio segment, despite current challenges [6][8] - The company is exploring opportunities for consolidation in the radio sector, viewing deregulation as a potential catalyst for industry consolidation [33][36] Management's Comments on Operating Environment and Future Outlook - Management noted broad softness in advertising demand, attributing it to an uncertain economy and changing consumer behavior [26][27] - There is cautious optimism for improvement in Q2, particularly in local markets, despite ongoing challenges [28][29] - The company is not currently pursuing any land-based casino developments but is interested in iGaming opportunities as legislation evolves [104] Other Important Information - The company has a strong liquidity position with approximately $137 million in cash as of year-end [7][18] - A cybersecurity incident was reported, but it has not materially impacted operations or financial conditions [18] Q&A Session Summary Question: Clarification on Q1 radio pacing - Management confirmed that Q1 radio pacing down 13.6% aligns with a 5.1% decline in net revenue excluding political advertising [22][24] Question: Insights on revenue weakness - Management indicated broad softness across local, national, and network radio, with improvements expected in Q2 [26][27] Question: Opportunities from deregulation - Management believes further consolidation in the radio sector is likely and that they are in a strong position to capitalize on opportunities [33][36] Question: Capital allocation plans for 2025 - The company plans to allocate 95% of capital to debt reduction, with a small stock repurchase plan in place [41][43] Question: Digital segment revenue components - Management clarified that Connected TV revenue will be reported under the TV segment moving forward, affecting digital revenue reporting [49][50] Question: Free cash flow expectations - The company anticipates around $25 million in free cash flow based on the $75 million EBITDA guidance [61] Question: Potential asset sales - Management is open to considering non-core asset sales if they are accretive to the balance sheet [67][68] Question: Cash balance strategy - There is no minimum cash balance target, and the company is focused on opportunistic debt buybacks [74][76] Question: Thoughts on cable network spin-offs - Management expressed skepticism about the impact of spin-offs on market valuations, noting challenges in the cable asset market [78][82]

Financial Data and Key Metrics Changes - For the full year 2024, revenue was $6.4 billion, representing a 3% growth rate at constant currency, marking the third consecutive year of constant currency revenue growth [7] - Adjusted EBITDA was $1.96 billion, with a 30.6% adjusted EBITDA margin; excluding IPR&D, the margin was 31.8%, reflecting a half-point margin expansion over the previous year [8][47] - The company expects 2025 revenue to range from $6.125 billion to $6.325 billion, with an approximate $200 million headwind from foreign currency [9][56] Business Line Data and Key Metrics Changes - The women's health franchise grew 5% ex-exchange, driven by Nexplanon, which saw a 17% increase ex-FX, positioning it for at least $1 billion in revenue in 2025 [11][12] - The fertility franchise declined by 2% ex-exchange in 2024, impacted by a late 2023 buy-in and offset by growth in new launches in various regions [15] - The biosimilars franchise grew 12% at constant currency, with expectations of mid-single-digit declines in 2025 due to mature products [16][17] Market Data and Key Metrics Changes - Outside the U.S., strong growth was noted in the LAMERA region, particularly in Brazil and the U.K. [12] - The U.S. market benefited from Nexplanon's leadership and pricing strategies, including management of the 340B discount program [12] - The company anticipates a $200 million impact from foreign exchange in 2025, reflecting the strengthening U.S. dollar [60] Company Strategy and Development Direction - The company aims to demonstrate resiliency in its base business, capture efficiencies, consistently deploy capital, and deliver on growth products and pipeline [22][25] - The focus is on profitable growth, with a commitment to regular dividends as the top capital allocation priority [24][52] - The company plans to launch a Denosumab biosimilar in collaboration with Shanghai Henlius, pending FDA approval [17][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Nexplanon's future growth, especially with the potential five-year indication submitted to the FDA [13] - The company expects to manage through the loss of exclusivity of Atozet in Europe while offsetting it with growth in other products [9][57] - Management highlighted the potential for continued constant currency revenue growth in 2025 despite challenges [68] Other Important Information - The company achieved $967 million of free cash flow before one-time costs in 2024, with expectations of around $900 million for 2025 [48][75] - One-time spin-related costs were $160 million in 2024, with expectations for these costs to be essentially zero in 2025 [50] - The adjusted gross margin for 2025 is expected to be in the range of 60% to 61%, reflecting ongoing pricing pressures [61] Q&A Session Summary Question: Free cash flow estimate for 2025 and biosimilar opportunity for Denosumab - The company expects around $900 million of free cash flow before one-time items for 2025, with confidence in the denosumab biosimilar launch later in Q4 [75][76] Question: Status of Nexplanon and future growth ambitions - No paragraph four filing for Nexplanon has been received, and management is confident that no generics will enter the U.S. market before 2030 [80][85] Question: Competitive landscape for Vtama and margin improvements - Vtama has shown strong growth, with a 51% increase in NRX, and is expected to be a significant contributor to growth [92] - Margin improvements from manufacturing separation from Merck are anticipated to be around 250 to 300 basis points starting in 2027 [96] Question: Future plans for the dermatology business and net leverage targets - The company aims to build out its dermatology portfolio beyond Vtama and expects to reduce net leverage to below four times by the end of 2026 [106][107]