And so we were pleased with this incremental $5 million. So $15 million of fixed cost annualized reduction is a big number compared to what were already done, and we’ll continue to do that. I would expect that the incremental reductions from here on out probably will be more modest. But having said that, we’ve said that before and we continue to find costs. So that’s something we’ll always do. And I’ll remind everyone, the operating leverage that we’ve created in this business is significant by reducing cost by over 100 – fixed costs by over $105 million with a rebound of high margin national, and of course next year, political. Then we’re set up well for significantly better EBITDA improvement as the market recovers.
Avi Steiner: Okay. That’s great. Thank you. And then just on the Detroit station that you sold. Can we assume that’s all going to debt repayment? And if I can add on to that, I guess, I see why — any equity at all.
Frank Lopez-Balboa: That will – I’m sorry, Avi. I cut you off. We were delayed.
Avi Steiner: My question was just confirming that proceeds, albeit small, but $10 million still can see, will that go to debt repayment? And then why would you buy any more equity when you have opportunities at these levels to buy back the bonds. Thanks.
Frank Lopez-Balboa: Right. Well, as you know, we did take advantage of the opportunities in the second quarter on debt reduction, and we did a significant amount while still preserving a lot of cash on the balance sheet. With regard to those proceeds, they’ll go on the balance sheet as cash, and we can use that for investments, debt reduction directly or equity repurchases. And as we’ve said in previous quarters, we really don’t talk about our plans ahead of time. And we’ll be able to report on the third quarter in terms of our capital allocation plans. Having said that, and I’ll reiterate and I mentioned this on the earnings call – on the call on my script is that by having reduced gross debt by $125 million since last year, not only is that great from a leverage perspective, but as we manage our cash flow, it’s immunized a lot of the increase in short-term rates.
And to the extent we continue to focus on that, that will accrue the benefits to all stakeholders. And then if and when the Fed starts lowering rates, which some people think will be next year, and then we’ll turbocharge the cash flow generation from the debt reduction strategies we’ve implemented.
Avi Steiner: I appreciate that answer. And I don’t think it’s lost on anybody that – really pretty good job chipping away at absolute debt levels here. There’s obviously pushback on eventual refinance, and I think we have time for that. But if I can end it on this question, curious as to your thoughts on the given everything, that’s going on and you’re applying hopefully next year is a little better. What’s the right leverage to drive this business [technical difficulty] direction this year? But where do you want to be to give yourself the maximum flexibility in terms of your balance sheet. I appreciate the time. Thank you.
Frank Lopez-Balboa: Sure. Well, we made a strategic decision to change our financial leverage targets last year to achieve the level of below 3.5x. Previously, that number that we had mentioned was to get to below 4x. As you know, there are competitors in our industry that have much higher leverage numbers and have higher leverage targets, at least as they’ve indicated recently. Our leverage will go up by virtue of EBITDA being challenged this year and will trend down nicely next year with a recovery, although we’re not giving guidance. As we – this is an industry, I believe and we believe, that with some of the challenges that we’ve had from the top line, it should have less financial leverage in the business. So the first step that we made and then we recognized that was to get down to 3.5x leverage.
