Q1 overachieves. Q1 revenues of $201.7 million exceed our $185.0 million estimate on stronger than expected Spot and Digital revenue. Cash flow, as measured by adj. EBITDA, was better than expected due to stronger revenues and expense reduction, $8.9 million versus our loss estimate of $650,000. Q2 pacings appear encouraging. The tone of Radio advertising has significantly improved, with Q2 pacing up a strong 35%. We believe that pacings will further improve throughout the quarter and our 51% Q2 revenue growth estimate appears achievable. We are raising our Q2 adj. EBITDA estimate from $21.1 million to $24.6 million to reflect better cost savings. Favorable expense outlook. Management highlighted permanent fixed cost reduction of $50 million in 2021 versus 2019 levels, better than what we thought. As such, we are raising our full year 2021 and 2022 adj. EBITDA estimates from $79.2 million to $100.7 million and from $145.7 million to $149.7 million, respectively. We view our cash flow estimates as conservative given the current favorable trajectory of revenues. Flexible balance sheet. The company is expected to strengthen its balance sheet through the prospective sale of Nashville real estate, estimated to deliver proceeds at the higher end of our $20 million to $25 million range. Notably, the company's cash position, $293.8 million as of March 31, was $22 million higher than $271.7 million as of December 31. We estimate that the company's debt leverage will fall below 4.5 times cash flow by year end 2022, from the current 5.3 times.Raising price target. We are raising our price target from $15 to $17 to reflect the upwardly revised 2022 cash flow estimate. Near current levels, the CMLS shares trade at 5.8 times EV to our 2022 cash flow estimate, a level considered low in an early stage advertising recovery. Our rating is Outperform. Read More >>