Q1 results exceed expectations. Total company revenues of $540.9 million exceeded our estimate of $526.3 million by 2.8%, with core advertising the largest upside variance to our estimates. Q1 Adjusted EBITDA far exceeded our estimates, $140.8 million versus our estimate of $107.4 million, as the company benefited from cost synergies from its January purchase of Ion Media. Company provides guidance. Given the improved revenue visibility, management reinstated providing guidance for the upcoming quarter and provided more color full year free cash flow generation. The guidance was above our Q2 expectations. Adjusting estimates higher. Total company Q2 revenues are expected to increase 53.4%, which is better than our 42.3% original growth estimate. Cash flow, as measured by adjusted EBITDA, is expected to be $132.7 million, better than our original estimate of $123.4 million. We are flowing through the Q1 upside variance and the favorable Q2 adjustment to our full year 2021 estimates. Improving balance sheet, faster than expected. In the latest quarter, management delevered its balance sheet more aggressively than expected, bringing leverage to 4.7 times, below its original expectation of 5 times at the close of the ION transaction. Management provided 2021 free cash flow guidance between $210 million and $240 million. Compelling valuation for early stage recovery. Near current levels, the SSP shares trade at 8.4 times Enterprise Value to our blended 2021/2022 cash flow estimate. We believe that the multiple is low relative to an early stage economic and advertising recovery. In our view, the SSP shares offer a compelling risk/reward profile with a target multiple of 9.4 times, more in line with its historic trading averages in a recovery. Shares are rated Outperform with a $28 target. Read More >>