Q2 overachieves EBITDA expectations. Second quarter revenues were roughly in line with expectations, $224.7 million versus our $221.3 million estimate. But, the company exceeded our adj. EBITDA expectations, $36.9 million versus our $24.6 million, on significantly lower than expected costs. Expense cuts provides cash flow visibility. Management guided full year 2022 adj. EBITDA to a range of $175 million to $200 million, above our $149 million estimate. Management indicated that it will achieve $70 million in fixed cost savings in 2022 versus the previous guidance of $50 million. We are raising our full year 2021 and our full year 2022 adj. EBITDA estimates, while largely maintaining our revenue expectations. Return of capital within view. With debt leverage coming down and the expectation that there will be a significant increase in free cash flow in 2022, management indicated that it would explore options to return capital to shareholders. In our view, a special dividend or instituting a regular dividend appears likely and appears possible to us by late 2022 given the anticipated improved financial picture. Raising fundamental assessment. The company recently sold real estate in Nashville for $34 million, for net proceeds estimated to be $28.5 million. The proceeds are expected to be used for debt reduction. As of June 30, the company had $125 million in cash and $826 million in debt. Given our upward EBITDA revisions, debt leverage is expected to be less than 4 times full year 2022 adj. EBITDA, among the lowest levered in the industry. We are raising our fundamental assessment from 2.5 to 3, which is considered to be average to reflect the improved fundamental outlook. Raising price target to $27. Near current levels, the CMLS shares trade at a modest 5.3 times Enterprise Value to our upwardly revised full year 2022 adj. EBITDA estimate. We are raising our price target from $17 to $27 to reflect the upwardly revised adj. EBITDA expectation, while maintaining our target multiple of 7. The expansion in the multiple appears warranted given the company's improved fundamental outlook, its enhanced ability to invest internally for growth or through acquisitions, and prospect that it will return capital to shareholders, which appears possible within the next 12 to 18 months. Read More >>