iHeartMedia, Inc. (Nasdaq: IHRT) today reported financial
results for the quarter ended March 31, 2024.
Financial Highlights:1
Q1 2024 Consolidated
Results
- Q1 Revenue of $799 million, down 1.5%; in line with guidance
range of flat to down 2%
- Excluding Q1 Political Revenue, Q1 Revenue down 2.5%
- GAAP Operating loss of $35 million vs. $49 million in Q1
2023
- Consolidated Adjusted EBITDA of $105 million, within previously
disclosed guidance range of $100 million to $110 million, compared
to $93 million in Q1 2023
- Cash Flows used for operating activities of $59 million
- Free Cash Flow of $(81) million
Q1 2024 Digital Audio Group
Results
- Digital Audio Group Revenue of $239 million up 7%
- Podcast Revenue of $91 million up 18%
- Digital Revenue excluding Podcast of $148 million up 1%
- Segment Adjusted EBITDA of $68 million up 26%
- Digital Audio Group Adjusted EBITDA margin of 28.5%
Q1 2024 Multiplatform Group
Results
- Multiplatform Group Revenue of $493 million down 7%
- Excluding Multiplatform Group Q1 Political Revenue,
Multiplatform Group Q1 Revenue down 8%
- Segment Adjusted EBITDA of $77 million down 11%
- Multiplatform Group Adjusted EBITDA margin of 15.6%
Continued Proactive Capital Structure
Improvement
- Cash balance and total available liquidity2 of $361 million and
$788 million, respectively, as of March 31, 2024
- Received cash proceeds of $101 million from sale of equity
interest in BMI in February 2024
- As of March 31, 2024, aggregate Notes repurchases since Q2 2022
of $534 million at a discount to par for $447 million cash; in
aggregate expected to generate approximately $45 million of
annualized interest savings
- Cumulative reduction of the outstanding principal balance of
these Notes from $1.45 billion as of March 31, 2022 to
approximately $0.9 billion as of March 31, 2024
Guidance
- Q2 Consolidated Revenue expected to be approximately flat
- Q2 Consolidated Adjusted EBITDA3 expected to be $140 million to
$160 million
- Remain committed to long term target of approximately 4x Net
Debt to Adjusted EBITDA ("net leverage")3
Statement from Senior Management
“We’re pleased to report our first quarter of year-over-year
Adjusted EBITDA growth in five quarters, driven by the substantial
sequential year-over-year improvement in the performance of all our
segments: the Multiplatform Group, the Digital Audio Group, and the
Audio and Media Services Group – with the Digital Audio Group
hitting its best Q1 EBITDA margin ever,” said Bob Pittman, Chairman
and CEO of iHeartMedia, Inc. “Additionally, our Q1 results were in
line with our previously provided Adjusted EBITDA and Revenue
guidance ranges. Although the marketplace continues to be dynamic,
we continue to see meaningful opportunities for growth in our
businesses and we remain confident in 2024 as a recovery year.”
“We continue to see signs of improvement throughout both our
businesses and the broader advertising marketplace, and we expect
2024 to be a significant growth year,” said Rich Bressler,
iHeartMedia’s President, COO and CFO. “Our high-growth Digital
Audio Group’s Adjusted EBITDA was up 26% over prior year with first
quarter revenues up 7.0% vs. prior year, and represented thirty
percent of the company’s total revenue; we saw improvement in our
Multiplatform Group; and as an early indication of the potential
for political revenue, we are currently pacing up 16% for the full
year in political revenue compared to 2020, the last presidential
election cycle, which was the highest political revenue year for
the company.”
Consolidated Results of
Operations
First Quarter 2024 Consolidated
Results
Our consolidated revenue decreased $12.2 million, or 1.5%,
during the three months ended March 31, 2024 compared to the same
period of 2023. Digital Audio revenue increased $15.6 million, or
7.0%, driven primarily by continuing increases in demand for
podcast advertising. Multiplatform revenue decreased $35.6 million,
or 6.7%, primarily resulting from a decrease in broadcast
advertising in connection with continued uncertain market
conditions and a decrease in trade revenues related to the 2024
iHeartRadio Music Awards, partially offset by an increase in
political revenues as 2024 is a presidential election year. Audio
& Media Services revenue increased $7.8 million, or 12.7%,
primarily as a result of contract termination fees earned by Katz
Media and due to higher political revenue.
Consolidated direct operating expenses decreased $3.2 million,
or 0.9%, during the three months ended March 31, 2024 compared to
the same period of 2023. The decrease was primarily driven by
certain lower variable content costs including broadcast profit
sharing expense, third-party digital costs in connection with
COVID-19 related advertisers, and event costs related to the timing
of the 2024 iHeartRadio Music Awards, partially offset by certain
higher variable content costs, including higher third-party digital
costs and sales commissions related to the increase in digital
revenues and an increase in broadcast music license fees.
Consolidated Selling, General & Administrative ("SG&A")
expenses decreased $17.7 million, or 4.4%, during the three months
ended March 31, 2024 compared to the same period of 2023. The
decrease was driven primarily by lower trade expense due to the
timing of the 2024 iHeartRadio Music Awards and lower bonus expense
based on results, partially offset by an increase in certain costs
incurred in connection with executing on our cost savings
initiatives.
Our consolidated GAAP Operating loss was $34.7 million compared
to $48.9 million in the first quarter of 2023, primarily resulting
from a decrease in trade expense due to the timing of the 2024
iHeartRadio Music Awards, a decrease in variable bonus expense, and
an increase in political revenues, partially offset by the decrease
in revenue from our Multiplatform Group in connection with
continued uncertain market conditions and a decrease in trade
revenues.
Adjusted EBITDA increased to $104.6 million compared to $93.4
million in the prior-year period.
Cash used for operating activities was $59.3 million, compared
to $94.0 million in the prior-year period primarily due to
improvement in the timing of receivable collections and timing of
payable payments, partially offset by the decrease in broadcast
radio revenue and an increase in cash bonus payments in 2024
compared to 2023. Free Cash Flow was $(80.9) million, compared to
$(133.1) million in the prior year period.
Business Segments: Results of
Operations
First Quarter 2024 Multiplatform Group
Results
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
493,463
$
529,013
(6.7
)%
Operating expenses1
416,281
441,961
(5.8
)%
Segment Adjusted EBITDA
$
77,182
$
87,052
(11.3
)%
Segment Adjusted EBITDA margin
15.6
%
16.5
%
1 Operating expenses consist of Direct
operating expenses and SG&A expenses, excluding Restructuring
expenses.
Revenue from our Multiplatform Group decreased $35.6 million, or
6.7% YoY, primarily due to a decrease in broadcast advertising in
connection with continued uncertain market conditions and a
decrease in trade and barter revenues related to the 2024
iHeartRadio Music Awards, partially offset by an increase in
political revenues. Broadcast revenue declined $23.9 million, or
6.2% YoY, driven by lower spot revenue and trade and barter
revenues, partially offset by an increase in political advertising.
Networks declined $5.9 million, or 5.5% YoY. Revenue from
Sponsorship and Events decreased by $4.8 million, or 14.6% YoY.
Operating expenses decreased $25.7 million, or 5.8% YoY, driven
primarily by lower trade expense and live event costs due to the
timing of the 2024 iHeartRadio Music Awards, as well as lower bonus
expense based on results, partially offset by higher broadcast
music license fees.
Segment Adjusted EBITDA Margin decreased YoY to 15.6% from
16.5%.
First Quarter 2024 Digital Audio Group
Results
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
238,968
$
223,396
7.0
%
Operating expenses1
170,841
169,277
0.9
%
Segment Adjusted EBITDA
$
68,127
$
54,119
25.9
%
Segment Adjusted EBITDA margin
28.5
%
24.2
%
1 Operating expenses consist of Direct
operating expenses and SG&A expenses, excluding Restructuring
expenses.
Revenue from our Digital Audio Group increased $15.6 million, or
7.0% YoY, driven by Podcast revenue, which increased $13.8 million,
or 18.0% YoY, to $90.6 million, driven primarily by increased
demand for podcasting from advertisers, and Digital, excluding
Podcast revenue, which grew $1.8 million, or 1.2% YoY, to $148.3
million, driven by an increase in demand for digital advertising,
partially offset by a decrease in COVID-19 related advertisers.
Operating expenses increased $1.6 million, or 0.9% YoY,
primarily driven by higher variable content costs, including higher
third-party digital costs and sales commissions related to the
increase in revenues, as well as higher merchandising and event
costs, partially offset by lower third-party digital costs in
connection with COVID-19 related advertisers and lower compensation
expense.
Segment Adjusted EBITDA Margin increased YoY to 28.5% from
24.2%.
First Quarter 2024 Audio & Media
Services Group Results
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
69,168
$
61,351
12.7
%
Operating expenses1
45,473
46,007
(1.2
)%
Segment Adjusted EBITDA
$
23,695
$
15,344
54.4
%
Segment Adjusted EBITDA margin
34.2
%
24.9
%
1 Operating expenses consist of Direct
operating expenses and SG&A expenses, excluding Restructuring
expenses.
Revenue from our Audio & Media Services Group increased $7.8
million, or 12.7% YoY, primarily due to contract termination fees
earned by Katz Media and due to higher political revenue as 2024 is
a presidential election year.
Operating expenses decreased $0.5 million, or 1.2% YoY,
primarily as a result of a favorable shift in the sales mix toward
services.
Segment Adjusted EBITDA Margin increased YoY to 34.2% from
24.9%.
GAAP and Non-GAAP Measures: Consolidated
(In thousands)
Three Months Ended
March 31,
2024
2023
Revenue
$
799,038
$
811,239
Operating loss
(34,708
)
(48,862
)
Adjusted EBITDA1
104,617
93,424
Net loss
(18,108
)
(222,363
)
Cash used for operating activities2
(59,277
)
(93,983
)
Free cash flow1,2
(80,859
)
(133,148
)
_______________________
1
See the end of this press release for
reconciliations of (i) Adjusted EBITDA to Operating loss, (ii)
Adjusted EBITDA to Net loss, (iii) Free Cash Flow to cash used for
operating activities, (iv) revenue, excluding political advertising
revenue, to revenue, and (v) Net Debt to Total Debt. See also the
definitions of Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA
margin, and Net Debt under the Supplemental Disclosure Regarding
Non-GAAP Financial Information section in this release.
2
We made cash interest payments of $105.9
million in the three months ended March 31, 2024, compared to
$101.8 million in the three months ended March 31, 2023.
Certain prior period amounts have been reclassified to conform
to the 2024 presentation of financial information throughout the
press release.
Liquidity and Financial
Position
As of March 31, 2024, we had $361.4 million of cash on our
balance sheet. For the three months ended March 31, 2024, cash used
for operating activities was $59.3 million, cash provided by
investing activities was $78.0 million and cash used for financing
activities was $3.5 million.
Capital expenditures for the three months ended March 31, 2024
were $21.6 million compared to $39.2 million in the three months
ended March 31, 2023. Capital expenditures during the three months
ended March 31, 2024 decreased primarily due to lower spending on
real estate optimization initiatives.
As of March 31, 2024, the Company had $5,216.8 million of total
debt and $4,855.4 million of Net Debt. The terms of our capital
structure include no material maintenance covenants, and there are
no material debt maturities prior to May 2026.
Cash balance and total available liquidity4 were $361.4 million
and $788 million, respectively, as of March 31, 2024.
Revenue Streams
The tables below present the comparison of our historical
revenue streams (including political revenue) for the periods
presented:
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Broadcast Radio
$
359,338
$
383,238
(6.2
)%
Networks
102,051
107,954
(5.5
)%
Sponsorship and Events
27,829
32,587
(14.6
)%
Other
4,245
5,234
(18.9
)%
Multiplatform Group1
493,463
529,013
(6.7
)%
Digital ex. Podcast
148,344
146,585
1.2
%
Podcast
90,624
76,811
18.0
%
Digital Audio Group
238,968
223,396
7.0
%
Audio & Media Services
Group1
69,168
61,351
12.7
%
Eliminations
(2,561
)
(2,521
)
Revenue, total1
$
799,038
$
811,239
(1.5
)%
1
Excluding the impact of political revenue,
Revenue from the Multiplatform Group and Consolidated Revenue
decreased by 7.6% and 2.5% for the three months ended March 31,
2024 compared to the three months ended March 31, 2023,
respectively. Excluding the impact of political revenue, Revenue
from Audio & Media Services increased by 6.1% for the three
months ended March 31, 2024 compared to the three months ended
March 31, 2023. See the end of this press release for a
reconciliation of revenue, excluding political advertising revenue,
to revenue.
Conference Call
iHeartMedia, Inc. will host a conference call to discuss results
and business outlook on May 9, 2024, at 8:00 a.m. Eastern Time. The
conference call number is (888) 596-4144 (U.S. callers) and +1
(646) 968-2525 (International callers) and the passcode for both is
8885116. A live audio webcast of the conference call will also be
available on the Investors homepage of iHeartMedia's website
investors.iheartmedia.com. After the live conference call, a replay
will be available for a period of thirty days. The replay numbers
are (800) 770-2030 (U.S. callers) and +1 (609) 800-9909
(International callers) and the passcode for both is 8885116. An
archive of the webcast will be available beginning 24 hours after
the call for a period of thirty days.
About iHeartMedia, Inc.
iHeartMedia (Nasdaq: IHRT) is the number one audio company in
the United States, reaching nine out of 10 Americans every month.
It consists of three business groups.
With its quarter of a billion monthly listeners, the iHeartMedia
Multiplatform Group has a greater reach than any other media
company in the U.S. Its leadership position in audio extends across
multiple platforms, including more than 860 live broadcast stations
in over 160 markets nationwide; its National Sales organization;
and the Company’s live and virtual events business. It also
includes Premiere Networks, the industry’s largest Networks
business, with its Total Traffic and Weather Network (TTWN); and
BIN: Black Information Network, the first and only 24/7 national
and local all news audio service for the Black community.
iHeartMedia also leads the audio industry in analytics, targeting
and attribution for its marketing partners with its SmartAudio
suite of data targeting and attribution products using data from
its massive consumer base.
The iHeartMedia Digital Audio Group includes the Company’s
fast-growing podcasting business – iHeartMedia is the number one
podcast publisher in downloads, unique listeners, revenue and
earnings – as well as its industry-leading iHeartRadio digital
service, available across more than 500+ platforms and thousands of
devices; the Company’s digital sites, newsletters, digital services
and programs; its digital advertising technology companies; and its
audio industry-leading social media footprint.
The Company’s Audio & Media Services reportable segment
includes Katz Media Group, the nation’s largest media
representation company, and RCS, the world's leading provider of
broadcast and webcast software.
Certain statements herein constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other important factors which
may cause the actual results, performance or achievements of
iHeartMedia, Inc. and its subsidiaries to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. The words or phrases
“guidance,” “believe,” “expect,” “anticipate,” “estimates,”
“forecast” and similar words or expressions are intended to
identify such forward-looking statements. In addition, any
statements that refer to expectations or other characterizations of
future events or circumstances, such as statements about
positioning in uncertain economic environment and future economic
recovery, driving shareholder value, our anticipated growth and
year-over-year financial performance, our anticipated political
advertising revenues for 2024; our expected costs savings and other
capital and operating expense reduction initiatives, utilizing new
technologies, improving operational efficiency, future advertising
demand, trends in the advertising industry, including on other
media platforms; strategies and initiatives, expected interest
rates and interest expense savings, and our anticipated financial
performance, liquidity, and net leverage are forward-looking
statements. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
other important factors, some of which are beyond our control and
are difficult to predict. Various risks that could cause future
results to differ from those expressed by the forward-looking
statements included in this press release include, but are not
limited to: risks related to weak or uncertain global economic
conditions and our dependence on advertising revenues; competition,
including increased competition from alternative media platforms
and technologies; dependence upon our brand and the performance of
on-air talent, program hosts and management; fluctuations in
operating costs; technological and industry changes and
innovations; shifts in population and other demographics; risks
related to our use of artificial intelligence, impact of
acquisitions, dispositions and other strategic transactions; risks
related to our indebtedness; legislative or regulatory
requirements; impact of legislation, ongoing litigation or royalty
audits on music licensing and royalties; regulations and concerns
regarding privacy and data protection and breaches of information
security measures; risks related to scrutiny of environmental,
social and governance matters, risks related to our Class A common
stock; and regulations impacting our business and the ownership of
our securities. Other unknown or unpredictable factors also could
have material adverse effects on the Company’s future results,
performance or achievements. In light of these risks,
uncertainties, assumptions and factors, the forward-looking events
discussed in this press release may not occur. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date stated, or if no date is stated, as
of the date hereof. Additional risks that could cause future
results to differ from those expressed by any forward-looking
statement are described in the Company’s reports filed with the
U.S. Securities and Exchange Commission, including in the section
entitled “Part I, Item 1A. Risk Factors” of iHeartMedia, Inc.’s
Annual Reports on Form 10-K and “Part II, Item 1A. Risk Factors” of
iHeartMedia, Inc.’s Quarterly Reports on Form 10-Q. The Company
does not undertake any obligation to publicly update or revise any
forward-looking statements because of new information, future
events or otherwise.
APPENDIX
TABLE 1 - Comparison of operating
performance
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
799,038
$
811,239
(1.5
)%
Operating expenses:
Direct operating expenses (excludes
depreciation and amortization)
341,360
344,620
(0.9
)%
Selling, general and administrative
expenses (excludes depreciation and amortization)
385,144
402,801
(4.4
)%
Depreciation and amortization
105,162
108,512
Impairment charges
1,508
3,947
Other operating expense, net
572
221
Operating loss
$
(34,708
)
$
(48,862
)
Depreciation and amortization
105,162
108,512
Impairment charges
1,508
3,947
Other operating expense, net
572
221
Restructuring expenses
23,603
19,454
Share-based compensation expense
8,480
10,152
Adjusted EBITDA1
$
104,617
$
93,424
12.0
%
1.
See the end of this press release for
reconciliations of (i) Adjusted EBITDA to Operating loss, (ii)
Adjusted EBITDA to Net loss, (iii) Free Cash Flow to cash used for
operating activities, (iv) revenue, excluding political advertising
revenue, to revenue, and (v) Net Debt to Total Debt. See also the
definitions of Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA
margin and Net Debt under the Supplemental Disclosure section in
this release.
TABLE 2 - Statements of
Operations
(In thousands)
Three Months Ended
March 31,
2024
2023
Revenue
$
799,038
$
811,239
Operating expenses:
Direct operating expenses (excludes
depreciation and amortization)
341,360
344,620
Selling, general and administrative
expenses (excludes depreciation and amortization)
385,144
402,801
Depreciation and amortization
105,162
108,512
Impairment charges1
1,508
3,947
Other operating expense, net
572
221
Operating loss
(34,708
)
(48,862
)
Interest expense, net
95,515
95,457
Gain (loss) on investments, net
91,994
(6,505
)
Equity in income (loss) of nonconsolidated
affiliates
(45
)
40
Gain on extinguishment of debt
—
4,625
Other expense, net
(496
)
(99
)
Loss before income taxes
(38,770
)
(146,258
)
Income tax benefit (expense)
20,662
(76,105
)
Net loss
(18,108
)
(222,363
)
Less amount attributable to noncontrolling
interest
400
(103
)
Net loss attributable to the Company
$
(18,508
)
$
(222,260
)
1Impairment charges in the three months
ended March 31, 2024, and 2023 includes $1.5 million and $3.9
million, respectively, of non-cash related to impairment charges
due to the write-down of right-of-use assets related to changes in
sublease assumptions for certain operating leases previously
determined to be subleased as part of strategic actions to
streamline our real estate footprint.
TABLE 3 - Selected Balance Sheet
Information
Selected balance sheet information for March 31, 2024 and
December 31, 2023:
(In millions)
March 31, 2024
December 31, 2023
Cash
$
361.4
$
346.4
Total Current Assets
1,413.1
1,506.9
Net Property, Plant and Equipment
529.1
558.9
Total Assets
6,758.3
6,952.6
Current Liabilities (excluding current
portion of long-term debt)
701.8
848.1
Long-term Debt (including current portion
of long-term debt)
5,216.8
5,215.2
Stockholders' Deficit
(398.6
)
(384.8
)
Supplemental Disclosure Regarding
Non-GAAP Financial Information
The following tables set forth the Company’s Adjusted EBITDA,
Adjusted EBITDA margin, revenues excluding political advertising
revenue, and Free Cash Flow for the three months ended March 31,
2024 and 2023, and Net Debt as of March 31, 2024. Adjusted EBITDA
is defined as consolidated Operating loss adjusted to exclude
restructuring expenses included within Direct operating expenses
and SG&A expenses, and share-based compensation expenses
included within SG&A expenses, as well as the following line
items presented in our Statements of Operations: Depreciation and
amortization, Impairment charges, and Other operating expense, net.
Alternatively, Adjusted EBITDA is calculated as Net loss, adjusted
to exclude Income tax (benefit) expense, Interest expense, net,
Depreciation and amortization, (Gain) loss on investments, net,
Gain on extinguishment of debt, Other expense, net, Equity in
(earnings) loss of nonconsolidated affiliates, Impairment charges,
Other operating expense, net, Share-based compensation expense, and
restructuring expenses. Restructuring expenses primarily include
expenses incurred in connection with cost-saving initiatives, as
well as certain expenses, which, in the view of management, are
outside the ordinary course of business or otherwise not
representative of the Company's operations during a normal business
cycle. Adjusted EBITDA margin is calculated as Adjusted EBITDA
divided by Revenue.
The Company uses Adjusted EBITDA and Adjusted EBITDA margin,
among other measures, to evaluate the Company’s operating
performance. Adjusted EBITDA is among the primary measures used by
management for the planning and forecasting of future periods, as
well as for measuring performance for compensation of executives
and other members of management. We believe this measure is an
important indicator of the Company’s operational strength and
performance of its business because it provides a link between
operational performance and operating income. It is also a primary
measure used by management in evaluating companies as potential
acquisition targets.
The Company believes the presentation of these measures is
relevant and useful for investors because it allows investors to
view performance in a manner similar to the method used by the
Company’s management. The Company believes it helps improve
investors’ ability to understand the Company’s operating
performance and makes it easier to compare the Company’s results
with other companies that have different capital structures or tax
rates. In addition, the Company believes this measure is also among
the primary measures used externally by the Company’s investors,
analysts and peers in its industry for purposes of valuation and
comparing the operating performance of the Company to other
companies in its industry.
Since Adjusted EBITDA is not a measure calculated in accordance
with GAAP, it should not be considered in isolation of, or as a
substitute for, Operating loss as an indicator of operating
performance and may not be comparable to similarly titled measures
employed by other companies. Adjusted EBITDA is not necessarily a
measure of the Company’s ability to fund its cash needs. As it
excludes certain financial information compared with Operating
loss, the most directly comparable GAAP financial measure, users of
this financial information should consider the types of events and
transactions which are excluded.
We define Free Cash Flow as Cash used for operating activities
less capital expenditures, which is disclosed as Purchases of
property, plant and equipment in the Company's Consolidated
Statements of Cash Flows. We use Free Cash Flow, among other
measures, to evaluate the Company’s liquidity and its ability to
generate cash flow. We believe that Free Cash Flow is meaningful to
investors because it provides them with a view of the Company's
liquidity after deducting capital expenditures, which are
considered to be a necessary component of ongoing operations. In
addition, we believe that Free Cash Flow helps improve investors'
ability to compare our liquidity with that of other companies.
Since Free Cash Flow is not a measure calculated in accordance
with GAAP, it should not be considered in isolation of, or as a
substitute for, Cash used for operating activities and may not be
comparable to similarly titled measures employed by other
companies. Free Cash Flow is not necessarily a measure of our
ability to fund our cash needs.
The Company presents revenue, excluding the effects of political
revenue. Due to the cyclical nature of the electoral system and the
seasonality of the related political revenue, management believes
presenting revenue, excluding the effects of political revenue,
provides additional information to investors about the Company’s
revenue growth from period to period.
We define Net Debt as Total Debt less Cash and cash equivalents.
We define net leverage as Net Debt divided by Adjusted EBITDA. The
Company uses net leverage and Net Debt to evaluate the Company's
liquidity. We believe these measures are an important indicator of
the Company's ability to service its long-term debt
obligations.
Since these non-GAAP financial measures are not calculated in
accordance with GAAP, they should not be considered in isolation
of, or as a substitute for, the most directly comparable GAAP
financial measures as an indicator of operating performance or
liquidity.
As required by the SEC rules, the Company provides
reconciliations below to the most directly comparable measures
reported under GAAP, including (i) Adjusted EBITDA to Operating
loss, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to
Cash used for operating activities, (iv) revenue, excluding
political advertising revenue, to revenue, and (v) Net Debt to
Total Debt.
We have provided forecasted Revenue and Adjusted EBITDA guidance
for the quarter ending June 30, 2024 and long-term net leverage
guidance, which reflects targets for Adjusted EBITDA and net debt.
Our Earnings Call on May 9, 2024 may present additional guidance
that includes Adjusted EBITDA. A full reconciliation of the
forecasted Adjusted EBITDA, net debt and net leverage on a non-GAAP
basis to the respective most-directly comparable GAAP metrics
cannot be provided without unreasonable efforts due to the inherent
difficulty in forecasting and quantifying with reasonable accuracy
significant items required for the reconciliations, including gains
or losses on investments, extinguishment of debt, equity in
nonconsolidated affiliates, impairment charges, stock based
compensation, and restructuring as well as the Company's cash and
cash equivalent balance.
Reconciliation of Operating loss to Adjusted EBITDA
(In thousands)
Three Months Ended
March 31,
2024
2023
Operating loss
$
(34,708
)
$
(48,862
)
Depreciation and amortization
105,162
108,512
Impairment charges1
1,508
3,947
Other operating expense, net
572
221
Restructuring expenses
23,603
19,454
Share-based compensation expense
8,480
10,152
Adjusted EBITDA
$
104,617
$
93,424
1Impairment charges in the three months
ended March 31, 2024, and 2023 includes $1.5 million and $3.9
million, respectively, of non-cash impairment charges due to the
write-down of right-of-use assets related to changes in sublease
assumptions for certain operating leases previously determined to
be subleased as part of strategic actions to streamline our real
estate footprint.
Reconciliation of Net loss to EBITDA and Adjusted
EBITDA
(In thousands)
Three Months Ended
March 31,
2024
2023
Net loss
$
(18,108
)
$
(222,363
)
Income tax (benefit) expense
(20,662
)
76,105
Interest expense, net
95,515
95,457
Depreciation and amortization
105,162
108,512
EBITDA
$
161,907
$
57,711
(Gain) loss on investments, net
(91,994
)
6,505
Gain on extinguishment of debt
—
(4,625
)
Other expense, net
496
99
Equity in (earnings) loss of
nonconsolidated affiliates
45
(40
)
Impairment charges
1,508
3,947
Other operating expense, net
572
221
Restructuring expenses
23,603
19,454
Share-based compensation expense
8,480
10,152
Adjusted EBITDA
$
104,617
$
93,424
Reconciliation of Cash Used For Operating Activities to Free
Cash Flow
(In thousands)
Three Months Ended
March 31,
2024
2023
Cash used for operating activities
$
(59,277
)
$
(93,983
)
Purchases of property, plant and
equipment
(21,582
)
(39,165
)
Free cash flow
(80,859
)
(133,148
)
Reconciliation of Revenue to Revenue excluding Political
Advertising
(In thousands)
Three Months Ended
March 31,
%
Change
2024
2023
Consolidated revenue
$
799,038
$
811,239
(1.5
)%
Excluding: Political revenue
(11,627
)
(3,603
)
Consolidated revenue, excluding
political
$
787,411
$
807,636
(2.5
)%
Multiplatform Group revenue
$
493,463
$
529,013
(6.7
)%
Excluding: Political revenue
(7,663
)
(3,485
)
Multiplatform Group revenue, excluding
political
$
485,800
$
525,528
(7.6
)%
Digital Audio Group revenue
$
238,968
$
223,396
7.0
%
Excluding: Political revenue
(271
)
(500
)
Digital Audio Group revenue, excluding
political
$
238,697
$
222,896
7.1
%
Audio & Media Group Services
revenue
$
69,168
$
61,351
12.7
%
Excluding: Political revenue
(3,693
)
382
Audio & Media Services Group revenue,
excluding political
$
65,475
$
61,733
6.1
%
Reconciliation of Total Debt to Net Debt
(In thousands)
March 31, 2024
Current portion of long-term debt
$
289
Long-term debt
5,216,503
Total debt
$
5,216,792
Less: Cash and cash equivalents
361,403
Net debt
$
4,855,389
Segment Results
The following tables present the Company's segment results for
the Company for the periods presented:
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services
Group
Corporate and other reconciling
items
Eliminations
Consolidated
Three Months Ended March 31,
2024
Revenue
$
493,463
$
238,968
$
69,168
$
—
$
(2,561
)
$
799,038
Operating expenses(1)
416,281
170,841
45,473
64,387
(2,561
)
694,421
Adjusted EBITDA
$
77,182
$
68,127
$
23,695
$
(64,387
)
$
—
$
104,617
Adjusted EBITDA margin
15.6
%
28.5
%
34.3
%
13.1
%
Depreciation and amortization
(105,162
)
Impairment charges
(1,508
)
Other operating expense, net
(572
)
Restructuring expenses
(23,603
)
Share-based compensation expense
(8,480
)
Operating loss
$
(34,708
)
Operating margin
(4.3
)%
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services
Group
Corporate and other reconciling
items
Eliminations
Consolidated
Three Months Ended March 31,
2023
Revenue
$
529,013
$
223,396
$
61,351
$
—
$
(2,521
)
$
811,239
Operating expenses(1)
441,961
169,277
46,007
63,091
(2,521
)
717,815
Adjusted EBITDA
$
87,052
$
54,119
$
15,344
$
(63,091
)
$
—
$
93,424
Adjusted EBITDA margin
16.5
%
24.2
%
25.0
%
11.5
%
Depreciation and amortization
(108,512
)
Impairment charges
(3,947
)
Other operating expense, net
(221
)
Restructuring expenses
(19,454
)
Share-based compensation expense
(10,152
)
Operating loss
$
(48,862
)
Operating margin
(6.0
)%
(1) Operating expenses consist of Direct
operating expenses and SG&A expenses, excluding Restructuring
expenses and share-based compensation expenses.
_________________________ 1 Unless
otherwise noted, all results are based on year over year
comparisons.
2 Total available liquidity is defined as
cash and cash equivalents plus available borrowings under our ABL
Facility. We use total available liquidity to evaluate our capacity
to access cash to meet obligations and fund operations.
3 A full reconciliation of forecasted
Adjusted EBITDA, net debt and net leverage on a non-GAAP basis to
the respective most-directly comparable GAAP metrics cannot be
provided without unreasonable efforts due to the inherent
difficulty in forecasting and quantifying with reasonable accuracy
significant items required for the reconciliations, including gains
or losses on investments, extinguishment of debt, equity in
nonconsolidated affiliates, impairment charges, stock based
compensation, and restructuring as well as the Company’s cash and
cash equivalents balance.
4 Total available liquidity is defined as
cash and cash equivalents plus available borrowings under our ABL
Facility. We use total available liquidity to evaluate our capacity
to access cash to meet obligations and fund operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509773698/en/
Media
Wendy Goldberg Chief Communications Officer (212) 377-1105
wendygoldberg@iheartmedia.com
Investors
Mike McGuinness EVP, Deputy CFO, and Head of Investor Relations
(212) 377-1336 mbm@iheartmedia.com
Grafico Azioni iHeartMedia (NASDAQ:IHRT)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni iHeartMedia (NASDAQ:IHRT)
Storico
Da Feb 2024 a Feb 2025
