Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare”, the "Company,"
"we," "us," or "our") announced today its financial results for the
third quarter ended September 30, 2024.
“I am pleased to share that Townsquare’s net
revenue returned to year-over-year growth, driven by sequential
improvement across each of our three business segments, due to our
local focus and our unique and differentiated digital platform, as
well as the benefit from political revenue. Third quarter net
revenue increased +0.2% year-over-year and Adjusted EBITDA
decreased -6.3% year-over-year, both meeting guidance and
reflecting a sequential improvement from the first and second
quarter. In addition, net income improved $47.8 million
year-over-year, in large part due to a reduction in non-cash
impairment charges,” commented Bill Wilson, Chief Executive Officer
of Townsquare Media, Inc. “Our return to net revenue growth in the
third quarter coincided with our return to total Digital net
revenue growth, which increased by +1% year-over-year. In
particular, Townsquare Interactive’s sequential revenue growth
improved to +3% quarter-over-quarter, and Digital Advertising net
revenue increased +5% year-over-year, an acceleration from the +1%
revenue growth rates in the first six months of 2024. In total,
Digital represented more than half of Townsquare’s net revenue in
the first nine months of the year, a true point of differentiation
from others in local media, as we have evolved from a local
broadcast radio company that was founded in 2010, to a Digital
First Local Media Company with a world class team and a unique and
differentiated strategy, assets, platforms and solutions.”
Mr. Wilson continued, “We have executed and
delivered on what we said we would do, while simultaneously
building value for our shareholders through dividend payments, debt
reduction and share repurchases. In the first nine months of the
year, we have repurchased and retired $25 million of our bonds at a
discount to par ($36 million through October), and repurchased $24
million of equity, or 2.3 million shares, including the accretive
share repurchase of 1.5 million shares from Madison Square
Garden. At the same time, we have maintained our high yielding
dividend and a strong cash balance, which was $22 million at
the end of the third quarter, and net leverage remained below 4.9x.
We are gearing up for our upcoming refinancing, and we look forward
to sharing that outcome with our investors when we next
report.”
The Company announced today that its Board of
Directors approved a quarterly cash dividend of $0.1975 per share.
The dividend will be payable on February 1, 2025 to shareholders of
record as of the close of business on January 21, 2025. As of
yesterday’s closing price that reflects a dividend yield of
approximately 8%.
Segment ReportingWe have three
reportable operating segments, Subscription Digital Marketing
Solutions, Digital Advertising and Broadcast Advertising. The
Subscription Digital Marketing Solutions segment includes our
subscription digital marketing solutions business, Townsquare
Interactive. The Digital Advertising segment, marketed externally
as Townsquare Ignite, includes digital advertising on our owned and
operated digital properties, our first party data digital
management platform and our digital programmatic advertising
platform. The Broadcast Advertising segment includes our local,
regional, and national advertising products and solutions delivered
via terrestrial radio broadcast, and other miscellaneous revenue
that is associated with our broadcast advertising platform. The
remainder of our business is reported in the Other category, which
includes our live events business.
Third Quarter Results*
- As compared to the third quarter of 2023:
- Net revenue increased 0.2%, and decreased 2.5% excluding
political
- Net income increased $47.8 million
- Adjusted EBITDA decreased 6.3%
- Total Digital net revenue increased 1.1%
- Subscription Digital Marketing Solutions (“Townsquare
Interactive”) net revenue decreased 5.8%
- Digital Advertising net revenue increased 4.7%
- Total Digital Adjusted Operating Income decreased 8.9%
- Subscription Digital Marketing Solutions Adjusted Operating
Income decreased 11.0%
- Digital Advertising Adjusted Operating Income decreased
7.9%
- Broadcast Advertising net revenue increased 0.3%, and decreased
5.3% excluding political
- Net Income per diluted share was $0.63 and Adjusted Net Income
per diluted share was $0.35
- Repurchased an aggregate $11.0 million of our 2026 Senior
Secured Notes below par
- Repurchased 0.1 million shares of the Company’s common stock at
an average price of $11.32
Year-to-Date Highlights*
- As compared to the nine months
ended September 30, 2023:
- Net revenue decreased 1.8%, and
3.3% excluding political
- Net loss decreased $5.2
million
- Adjusted EBITDA decreased 8.0%
- Total Digital net revenue decreased
2.6%
- Subscription Digital Marketing
Solutions net revenue decreased 11.5%
- Digital Advertising net revenue
increased 2.4%
- Total Digital Adjusted Operating
Income decreased 17.0%
- Subscription Digital Marketing
Solutions Adjusted Operating Income decreased 10.3%
- Digital Advertising Adjusted
Operating Income decreased 20.2%
- Broadcast Advertising net revenue
decreased 0.3%, and 3.4%, excluding political
- Repurchased an aggregate
$24.7 million of our 2026 Senior Secured Notes below par
- Repurchased 2.3 million shares
of the Company’s common stock at an average price of $10.31
- Repurchased and retired
3.2 million options expiring in July 2024 for a net purchase
price of $3.60 per option
*See below for discussion of non-GAAP
measures.
GuidanceFor the fourth quarter
of 2024, net revenue is expected to be between $114.8 million and
$118.8 million, and Adjusted EBITDA is expected to be between $30.8
million and $31.8 million.
For the full year 2024, net revenue is expected
to be between $448 million and $452 million, and Adjusted EBITDA is
expected to be between $100 million and $101 million, both within
our original guidance ranges.
Quarter Ended
September 30, 2024 Compared to the
Quarter Ended September 30, 2023
Net RevenueNet revenue for the
three months ended September 30, 2024 increased $0.2 million, or
0.2%, to $115.3 million as compared to $115.1 million in the same
period in 2023. Digital Advertising net revenue increased $1.9
million, or 4.7%, as compared to the same period in 2023, and
Broadcast Advertising net revenue increased $0.2 million, or 0.3%,
as compared to the same period in 2023. These increases were
partially offset by a decrease in Subscription Digital Marketing
Solutions net revenue of $1.2 million, or 5.8%, and a $0.6 million,
or 37.3%, decrease in Other net revenue as compared to the same
period in 2023. Excluding political revenue of $3.7 million and
$0.6 million for the three months ended September 30, 2024 and
2023, respectively, net revenue decreased $2.9 million, or 2.5%, to
$111.6 million. Broadcast Advertising net revenue decreased $2.8
million, or 5.3%, to $50.8 million, and Digital Advertising net
revenue increased $1.8 million, or 4.6%, to $40.7 million.
Net Income (Loss)For the three
months ended September 30, 2024, we reported net income of
$11.3 million, an increase of $47.8 million as compared
to a net loss of $36.5 million in the same period last year.
The increase was primarily due to a $29.0 million decrease in
non-cash impairment charges, partially offset by a
$2.5 million increase in direct operating expenses and a
$22.6 million decrease in the income tax provision due to the
valuation allowance for interest expense carryforwards and an
increase in certain non-deductible compensation costs. Adjusted Net
Income decreased $2.2 million as compared to the same period last
year.
Adjusted EBITDAAdjusted EBITDA
for the three months ended September 30, 2024 decreased
$1.7 million, or 6.3%, to $25.5 million, as compared to $27.2
million in the same period last year. Adjusted EBITDA (Excluding
Political) decreased $4.3 million, or 16.3%, to $22.3 million,
as compared to $26.6 million in the same period last year.
Nine Months Ended
September 30, 2024 Compared to the
Nine Months Ended September 30,
2023
Net RevenueNet revenue for the
nine months ended September 30, 2024, decreased $6.3 million, or
1.8%, to $333.2 million as compared to $339.4 million in the same
period in 2023. Subscription Digital Marketing Solutions net
revenue decreased $7.2 million, or 11.5%, Other net revenue
decreased $1.3 million, or 15.3%, and Broadcast Advertising net
revenue decreased $0.4 million, or 0.3%, as compared to the same
period in 2023. These declines were partially offset by a $2.7
million, or 2.4%, increase in Digital Advertising net revenue as
compared to the same period in 2023. Excluding political revenue of
$6.2 million and $1.2 million for the nine months ended September
30, 2024 and 2023, respectively, net revenue decreased $11.3
million, or 3.3% to $327.0 million, Broadcast Advertising net
revenue decreased $5.1 million, or 3.4%, to $147.6 million, and
Digital Advertising net revenue increased $2.5 million, or 2.2%, to
$116.2 million.
Net LossFor the nine months
ended September 30, 2024, we reported a net loss of $36.0 million,
a decrease of $5.2 million as compared to a net loss of $41.1
million in the same period last year. The decrease was due to a
$29.4 million decrease in non-cash impairment charges, partially
offset by increases in stock-based compensation and transaction and
business realignment costs, the decrease in net revenue and a $4.5
million increase in the income tax provision was driven by the
valuation allowance for interest expense carryforwards and an
increase in certain non-deductible compensation costs. Adjusted Net
Income decreased $9.7 million as compared to the same period last
year.
Adjusted EBITDAAdjusted EBITDA
for the nine months ended September 30, 2024 decreased $6.0
million, or 8.0% to $69.2 million, as compared to $75.2 million in
the same period last year. Adjusted EBITDA (Excluding Political)
decreased $10.3 million, or 13.8%, to $63.9 million, as compared to
$74.2 million in the same period last year.
Liquidity and Capital
ResourcesAs of September 30, 2024, we had a total of
$21.8 million of cash and cash equivalents and
$478.9 million of outstanding indebtedness, representing 5.10x
and 4.86x gross and net leverage, respectively, based on Adjusted
EBITDA for the twelve months ended September 30, 2024, of
$94.0 million.
The table below presents a summary, as of
November 1, 2024, of our outstanding common stock (net of
treasury shares).
|
Security |
|
Number Outstanding |
|
Description |
|
Class A common stock |
|
14,231,917 |
|
One vote per share. |
| Class B common stock |
|
815,296 |
|
10 votes per share.1 |
| Class C common stock |
|
500,000 |
|
No votes.1 |
|
Total |
|
15,547,213 |
|
|
|
1 Each share converts into one share of Class A common stock upon
transfer or at the option of the holder, subject to certain
conditions, including compliance with FCC rules. |
|
|
Conference CallTownsquare
Media, Inc. will host a conference call to discuss certain third
quarter 2024 financial results and 2024 guidance on Thursday,
November 7, 2024 at 10:00 a.m. Eastern Time. The conference
call dial-in number is 1-800-717-1738 (U.S. & Canada) or
1-646-307-1865 (International) and the conference ID is
“Townsquare”. A live webcast of the conference call will also be
available on the investor relations page of the Company’s website
at www.townsquaremedia.com.
A replay of the conference call will be
available through November 14, 2024. To access the replay, please
dial 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671
(International) and enter confirmation code 1142541. A web-based
archive of the conference call will also be available at the above
website.
About Townsquare Media,
Inc.Townsquare is a community-focused
digital media and digital marketing solutions company with market
leading local radio stations, principally focused outside the top
50 markets in the U.S. Our assets include a subscription digital
marketing services business, Townsquare
Interactive, providing website design, creation and
hosting, search engine optimization, social media and online
reputation management as well as other digital monthly services for
SMBs; a robust digital advertising division, Townsquare
Ignite, a powerful combination of a) an owned and operated
portfolio of more than 400 local news and entertainment websites
and mobile apps along with a network of leading national music and
entertainment brands, collecting valuable first party data and b) a
proprietary digital programmatic advertising technology stack with
an in-house demand and data management platform; and a portfolio of
349 local terrestrial radio stations in 74 U.S. markets
strategically situated outside the Top 50 markets in the United
States. Our portfolio includes local media brands such as WYRK.com,
WJON.com and NJ101.5.com, and premier national music brands such as
XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and
Loudwire.com. For more information, please visit
www.townsquaremedia.com, www.townsquareinteractive.com and
www.townsquareignite.com.
Forward-Looking
StatementsExcept for the historical information contained
in this press release, the matters addressed are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements often discuss our
current expectations and projections relating to our financial
condition, results of operations, plans, objectives, future
performance and business. You can identify forward-looking
statements by the fact that they do not relate strictly to
historical or current facts. These statements may include words
such as “aim,” “anticipate,” “estimate,” “expect,” “forecast,”
“outlook,” “potential,” “project,” “projection,” “plan,” “intend,”
“seek,” “believe,” “may,” “could,” “would,” “will,” “should,”
“can,” “can have,” “likely,” the negatives thereof and other words
and terms. Actual events or results may differ materially from the
results anticipated in these forward-looking statements as a result
of a variety of factors. While it is impossible to identify all
such factors, factors that could cause actual results to differ
materially from those estimated by us include the impact of general
economic conditions in the United States, or in the specific
markets in which we currently do business including supply
chain disruptions, inflation, labor shortages and the effect on
advertising activity, industry conditions, including existing
competition and future competitive technologies, the popularity of
radio as a broadcasting and advertising medium, cancellations,
disruptions or postponements of advertising schedules in response
to national or world events, our ability to develop and
maintain digital technologies and hire and retain technical and
sales talent, our dependence on key personnel, our capital
expenditure requirements, our continued ability to identify
suitable acquisition targets, and consummate and integrate any
future acquisitions, legislative or regulatory requirements, risks
and uncertainties relating to our leverage and changes in interest
rates, our ability to obtain financing at times, in amounts and at
rates considered appropriate by us, our ability to access the
capital markets as and when needed and on terms that we
consider favorable to us and other factors discussed in this
section entitled “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in this report and under “Risk
Factors” in our 2023 Annual Report on Form 10-K, for the year ended
December 31, 2023, filed with the SEC on March 15, 2024, as well as
other risks discussed from time to time in our filings with the
SEC. Many of these factors are beyond our ability to predict or
control. In addition, as a result of these and other factors, our
past financial performance should not be relied on as an indication
of future performance. The cautionary statements referred to in
this section also should be considered in connection with any
subsequent written or oral forward-looking statements that may be
issued by us or persons acting on our behalf. The forward-looking
statements included in this report are made only as of the date
hereof or as of the date specified herein. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
Non-GAAP Financial Measures and
DefinitionsIn this press release, we refer to Adjusted
Operating Income, Adjusted EBITDA, Adjusted EBITDA (Excluding
Political), Adjusted Net Income and Adjusted Net Income Per Share
which are financial measures that have not been prepared in
accordance with generally accepted accounting principles in the
United States (“GAAP”).
We define Adjusted Operating Income by Segment
as operating income by segment before the deduction of depreciation
and amortization, stock-based compensation, corporate expenses,
transaction costs, business realignment costs, impairments and net
loss (gain) on sale and retirement of assets. We define Adjusted
EBITDA as net income before the deduction of income taxes, interest
expense, net, gain on repurchases of debt, transaction and business
realignment costs, depreciation and amortization, stock-based
compensation, impairments, net loss (gain) on sale and retirement
of assets and other expense (income) net. We define Adjusted EBITDA
(Excluding Political) as Adjusted EBITDA less political net
revenue, net of a fifteen percent deduction to account for
estimated national representative firm fees, music licensing fees
and sales commissions expense. Adjusted Net Income is defined as
net income before the deduction of transaction and business
realignment costs, impairments, gains on sale of investments,
change in fair value of investment, net loss (gain) on sale and
retirement of assets, gain on repurchases of debt, gain on sale of
digital assets, gain on insurance recoveries and net income
attributable to non-controlling interest, net of income taxes
stated at the Company's applicable statutory effective tax rate.
Adjusted Net Income Per Share is defined as Adjusted Net Income
divided by the weighted average shares outstanding. We define Net
Leverage as our total outstanding indebtedness, net of our total
cash balance as of September 30, 2024, divided by our Adjusted
EBITDA for the twelve months ended September 30, 2024. These
measures do not represent, and should not be considered as
alternatives to or superior to, financial results and measures
determined or calculated in accordance with GAAP. In addition,
these non-GAAP measures are not based on any comprehensive set of
accounting rules or principles. You should be aware that in the
future we may incur expenses or charges that are the same as or
similar to some of the adjustments in the presentation, and we do
not infer that our future results will be unaffected by unusual or
non-recurring items. In addition, these non-GAAP measures may not
be comparable to similarly-named measures reported by other
companies.
We use Adjusted Operating Income by Segment to
evaluate the operating performance of our business segments. We use
Adjusted EBITDA and Adjusted EBITDA (Excluding Political) to
facilitate company-to-company operating performance comparisons by
backing out potential differences caused by variations in capital
structures (affecting interest expense), taxation and the age and
book depreciation of facilities and equipment (affecting relative
depreciation expense), which may vary for different companies for
reasons unrelated to operating performance, and to facilitate year
over year comparisons, by backing out the impact of political
revenue which varies depending on the election cycle and may be
unrelated to operating performance. We use Adjusted Net Income and
Adjusted Net Income Per Share to assess total company operating
performance on a consistent basis. We use Net Leverage to measure
the Company’s ability to handle its debt burden. We believe that
these measures, when considered together with our GAAP financial
results, provide management and investors with a more complete
understanding of our business operating results, including
underlying trends, by excluding the effects of transaction costs,
net loss (gain) on sale and retirement of assets, business
realignment costs and certain impairments. Further, while
discretionary bonuses for members of management are not determined
with reference to specific targets, our board of directors may
consider Adjusted Operating Income by Segment, Adjusted EBITDA,
Adjusted EBITDA (Excluding Political), Adjusted Net Income,
Adjusted Net Income Per Share, and Net Leverage when determining
discretionary bonuses.
Investor RelationsClaire
Yenicay(203) 900-5555investors@townsquaremedia.com
| |
|
TOWNSQUARE MEDIA, INC.CONSOLIDATED BALANCE
SHEETS(in Thousands, Except Share and Per Share
Data) |
| |
| |
September 30,2024 |
|
December 31,2023 |
| |
(unaudited) |
|
|
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
21,786 |
|
|
$ |
61,046 |
|
|
Accounts receivable, net of allowance for credit losses of $4,131
and $4,041, respectively |
|
57,654 |
|
|
|
60,780 |
|
|
Prepaid expenses and other current assets |
|
12,759 |
|
|
|
10,356 |
|
|
Total current assets |
|
92,199 |
|
|
|
132,182 |
|
| Property and equipment,
net |
|
110,428 |
|
|
|
110,194 |
|
| Intangible assets, net |
|
165,179 |
|
|
|
200,306 |
|
| Goodwill |
|
152,903 |
|
|
|
157,270 |
|
| Investments |
|
975 |
|
|
|
3,542 |
|
| Operating lease right-of-use
assets |
|
42,460 |
|
|
|
46,887 |
|
| Other assets |
|
763 |
|
|
|
1,165 |
|
| Restricted cash |
|
509 |
|
|
|
503 |
|
|
Total assets |
$ |
565,416 |
|
|
$ |
652,049 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable |
$ |
3,799 |
|
|
$ |
5,036 |
|
| Deferred revenue |
|
9,092 |
|
|
|
9,059 |
|
| Accrued compensation and
benefits |
|
12,007 |
|
|
|
13,085 |
|
| Accrued expenses and other
current liabilities |
|
26,986 |
|
|
|
25,112 |
|
| Operating lease liabilities,
current |
|
9,487 |
|
|
|
9,376 |
|
| Accrued interest |
|
5,501 |
|
|
|
14,420 |
|
|
Total current liabilities |
|
66,872 |
|
|
|
76,088 |
|
| Long-term debt, net of
deferred finance costs of $2,234 and $3,960, respectively |
|
476,702 |
|
|
|
499,658 |
|
| Deferred tax liability |
|
25,163 |
|
|
|
11,856 |
|
| Operating lease liability, net
of current portion |
|
38,153 |
|
|
|
41,437 |
|
| Other long-term
liabilities |
|
10,989 |
|
|
|
13,099 |
|
|
Total liabilities |
|
617,879 |
|
|
|
642,138 |
|
| Stockholders’ equity: |
|
|
|
|
Class A common stock, par value $0.01 per share; 300,000,000 shares
authorized; 15,196,963 and 14,023,767 shares issued and
outstanding, respectively |
|
152 |
|
|
|
140 |
|
|
Class B common stock, par value $0.01 per share; 50,000,000 shares
authorized; 815,296 and 815,296 shares issued and outstanding,
respectively |
|
8 |
|
|
|
8 |
|
|
Class C common stock, par value $0.01 per share; 50,000,000 shares
authorized; 500,000 and 1,961,341 shares issued and outstanding,
respectively |
|
5 |
|
|
|
20 |
|
|
Total common stock |
|
165 |
|
|
|
168 |
|
|
Treasury stock, at cost; 965,399 and 183,768 shares of Class A
common stock, respectively |
|
(11,218 |
) |
|
|
(2,177 |
) |
|
Additional paid-in capital |
|
304,097 |
|
|
|
310,612 |
|
|
Accumulated deficit |
|
(349,000 |
) |
|
|
(302,193 |
) |
|
Non-controlling interest |
|
3,493 |
|
|
|
3,501 |
|
|
Total stockholders’ equity |
|
(52,463 |
) |
|
|
9,911 |
|
|
Total liabilities and stockholders’ equity |
$ |
565,416 |
|
|
$ |
652,049 |
|
| |
|
TOWNSQUARE MEDIA, INC.CONSOLIDATED
STATEMENTS OF OPERATIONS(in Thousands, Except Per
Share Data)(unaudited) |
| |
| |
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net revenue |
$ |
115,311 |
|
|
$ |
115,104 |
|
|
$ |
333,169 |
|
|
$ |
339,445 |
|
| Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Direct operating expenses, excluding depreciation, amortization,
and stock-based compensation |
|
83,794 |
|
|
|
81,323 |
|
|
|
246,201 |
|
|
|
245,301 |
|
|
Depreciation and amortization |
|
4,947 |
|
|
|
4,717 |
|
|
|
14,896 |
|
|
|
14,496 |
|
|
Corporate expenses |
|
6,063 |
|
|
|
6,604 |
|
|
|
17,762 |
|
|
|
18,911 |
|
|
Stock-based compensation |
|
2,867 |
|
|
|
2,350 |
|
|
|
14,062 |
|
|
|
6,228 |
|
|
Transaction and business realignment costs |
|
645 |
|
|
|
161 |
|
|
|
3,683 |
|
|
|
764 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
2,008 |
|
|
|
30,970 |
|
|
|
36,264 |
|
|
|
65,697 |
|
|
Net gain on sale and retirement of assets |
|
(110 |
) |
|
|
(362 |
) |
|
|
(66 |
) |
|
|
(703 |
) |
| Total operating costs
and expenses |
|
100,214 |
|
|
|
125,763 |
|
|
|
332,802 |
|
|
|
350,694 |
|
| Operating income
(loss) |
|
15,097 |
|
|
|
(10,659 |
) |
|
|
367 |
|
|
|
(11,249 |
) |
| Other expense (income): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
9,175 |
|
|
|
9,343 |
|
|
|
27,418 |
|
|
|
28,215 |
|
|
Gain on repurchases of debt |
|
(8 |
) |
|
|
(430 |
) |
|
|
(11 |
) |
|
|
(1,249 |
) |
|
Other income, net |
|
(277 |
) |
|
|
(547 |
) |
|
|
(4,974 |
) |
|
|
(6,451 |
) |
| Income (loss) from
operations before tax |
|
6,207 |
|
|
|
(19,025 |
) |
|
|
(22,066 |
) |
|
|
(31,764 |
) |
|
Income tax (benefit) provision |
|
(5,129 |
) |
|
|
17,478 |
|
|
|
13,903 |
|
|
|
9,380 |
|
|
Net income (loss) |
$ |
11,336 |
|
|
$ |
(36,503 |
) |
|
$ |
(35,969 |
) |
|
$ |
(41,144 |
) |
| |
|
|
|
|
|
|
|
| Net income (loss)
attributable to: |
|
|
|
|
|
|
|
|
Controlling interests |
$ |
10,847 |
|
|
$ |
(36,999 |
) |
|
$ |
(37,261 |
) |
|
$ |
(42,620 |
) |
|
Non-controlling interests |
|
489 |
|
|
|
496 |
|
|
|
1,292 |
|
|
|
1,476 |
|
|
Net income (loss) |
$ |
11,336 |
|
|
$ |
(36,503 |
) |
|
$ |
(35,969 |
) |
|
$ |
(41,144 |
) |
| |
|
|
|
|
|
|
|
| Basic income (loss)
per share |
$ |
0.71 |
|
|
$ |
(2.27 |
) |
|
$ |
(2.38 |
) |
|
$ |
(2.52 |
) |
| |
|
|
|
|
|
|
|
| Diluted income (loss)
per share |
$ |
0.63 |
|
|
$ |
(2.27 |
) |
|
$ |
(2.38 |
) |
|
$ |
(2.52 |
) |
| |
|
|
|
|
|
|
|
| Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
15,296 |
|
|
|
16,277 |
|
|
|
15,650 |
|
|
|
16,897 |
|
|
Diluted |
|
17,227 |
|
|
|
16,277 |
|
|
|
15,650 |
|
|
|
16,897 |
|
| |
|
TOWNSQUARE MEDIA, INC.CONSOLIDATED
STATEMENTS OF CASH FLOWS (in
Thousands)(unaudited) |
| |
| |
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
| Cash flows from operating
activities: |
|
|
|
| Net loss |
$ |
(35,969 |
) |
|
$ |
(41,144 |
) |
| Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
14,896 |
|
|
|
14,496 |
|
|
Amortization of deferred financing costs |
|
1,576 |
|
|
|
1,567 |
|
|
Non-cash lease (income) expense |
|
(558 |
) |
|
|
69 |
|
|
Net deferred taxes and other |
|
13,307 |
|
|
|
8,817 |
|
|
Allowance for credit losses |
|
4,036 |
|
|
|
2,817 |
|
|
Stock-based compensation expense |
|
14,062 |
|
|
|
6,228 |
|
|
Gain on repurchases of debt |
|
(11 |
) |
|
|
(1,249 |
) |
|
Trade and barter activity, net |
|
(993 |
) |
|
|
(1,352 |
) |
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
36,264 |
|
|
|
65,697 |
|
|
Realized gain on sale of digital assets |
|
— |
|
|
|
(839 |
) |
|
Gain on sale of investment |
|
(4,054 |
) |
|
|
(5,210 |
) |
|
Unrealized gain on investment |
|
(202 |
) |
|
|
493 |
|
|
Amortization of content rights |
|
3,667 |
|
|
|
3,645 |
|
|
Change in content rights liabilities |
|
(3,747 |
) |
|
|
(1,819 |
) |
|
Reimbursement of equipment modification costs |
|
— |
|
|
|
(1,487 |
) |
| Other |
|
1,837 |
|
|
|
(1,276 |
) |
| Changes in assets and
liabilities: |
|
|
|
|
Accounts receivable |
|
(1,117 |
) |
|
|
(3,037 |
) |
|
Prepaid expenses and other assets |
|
(1,516 |
) |
|
|
5,130 |
|
|
Accounts payable |
|
(1,231 |
) |
|
|
646 |
|
|
Accrued expenses |
|
(10,812 |
) |
|
|
(3,845 |
) |
|
Accrued interest |
|
(8,920 |
) |
|
|
(9,443 |
) |
|
Other long-term liabilities |
|
42 |
|
|
|
60 |
|
|
Net cash provided by operating activities |
|
20,557 |
|
|
|
38,964 |
|
| Cash flows from investing
activities: |
|
|
|
|
Purchases of property and equipment |
|
(13,771 |
) |
|
|
(11,373 |
) |
|
Proceeds from sale of digital assets |
|
— |
|
|
|
2,975 |
|
|
Proceeds from insurance recoveries |
|
336 |
|
|
|
721 |
|
|
Proceeds from sale of assets and investment related
transactions |
|
5,829 |
|
|
|
7,277 |
|
|
Net cash used in investing activities |
|
(7,606 |
) |
|
|
(400 |
) |
| Cash flows from financing
activities: |
|
|
|
|
Repurchases of 2026 Notes |
|
(24,521 |
) |
|
|
(25,621 |
) |
|
Dividend payments |
|
(9,267 |
) |
|
|
(6,285 |
) |
|
Proceeds from stock options exercised |
|
7,252 |
|
|
|
5,440 |
|
|
Shares withheld in lieu of employee tax withholding |
|
(35 |
) |
|
|
— |
|
|
Withholdings for shares issued under the ESPP |
|
708 |
|
|
|
729 |
|
|
Repurchases of stock |
|
(23,551 |
) |
|
|
(16,645 |
) |
|
Cash distribution to non-controlling interests |
|
(1,300 |
) |
|
|
(1,499 |
) |
|
Repayments of capitalized obligations |
|
(1,491 |
) |
|
|
(140 |
) |
|
Net cash used in financing activities |
|
(52,205 |
) |
|
|
(44,021 |
) |
| Cash and cash equivalents and
restricted cash: |
|
|
|
|
Net decrease in cash, cash equivalents and restricted
cash |
|
(39,254 |
) |
|
|
(5,457 |
) |
|
Beginning of period |
|
61,549 |
|
|
|
43,913 |
|
|
End of period |
$ |
22,295 |
|
|
$ |
38,456 |
|
| |
|
TOWNSQUARE MEDIA, INC.CONSOLIDATED
STATEMENTS OF CASH FLOWS (continued)(in
Thousands)(unaudited) |
| |
| |
Nine Months Ended September
30, |
|
|
|
2024 |
|
|
|
2023 |
|
| Supplemental
Disclosure of Cash Flow Information: |
|
|
|
|
Cash payments: |
|
|
|
|
Interest |
$ |
35,390 |
|
|
$ |
37,273 |
|
|
Income taxes |
|
945 |
|
|
|
1,122 |
|
| |
|
|
|
| Supplemental
Disclosure of Non-cash Activities: |
|
|
|
|
Dividends declared, but not paid during the period |
$ |
3,214 |
|
|
$ |
3,164 |
|
|
Property and equipment acquired in exchange for advertising(1) |
|
772 |
|
|
|
550 |
|
|
Accrued capital expenditures |
|
79 |
|
|
|
229 |
|
| |
|
|
|
| Supplemental
Disclosure of Cash Flow Information relating to
Leases: |
|
|
|
|
Cash paid for amounts included in the measurement of operating
lease liabilities, included in operating cash flows |
$ |
9,175 |
|
|
$ |
8,850 |
|
|
Right-of-use assets obtained in exchange for operating lease
obligations |
|
4,691 |
|
|
|
4,035 |
|
|
|
|
|
|
|
Reconciliation of cash, cash equivalents and restricted
cash |
|
|
|
|
Cash and cash equivalents |
$ |
21,786 |
|
|
$ |
37,955 |
|
|
Restricted cash |
|
509 |
|
|
|
501 |
|
| |
$ |
22,295 |
|
|
$ |
38,456 |
|
(1) Represents total advertising services
provided by the Company in exchange for property and equipment
during each of the nine months ended September 30, 2024 and 2023,
respectively.
| |
|
TOWNSQUARE MEDIA, INC.CONSOLIDATED
STATEMENTS OF OPERATIONS BY SEGMENT(in
Thousands)(unaudited) |
| |
| |
Three Months Ended September
30, |
|
|
|
Nine Months Ended September
30, |
|
|
| |
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
Subscription Digital Marketing Solutions |
$ |
19,080 |
|
|
$ |
20,257 |
|
|
(5.8 |
)% |
|
$ |
55,848 |
|
|
$ |
63,086 |
|
|
(11.5 |
)% |
| Digital Advertising |
|
40,861 |
|
|
|
39,009 |
|
|
4.7 |
% |
|
|
116,541 |
|
|
|
113,842 |
|
|
2.4 |
% |
| Broadcast Advertising |
|
54,330 |
|
|
|
54,179 |
|
|
0.3 |
% |
|
|
153,418 |
|
|
|
153,822 |
|
|
(0.3 |
)% |
| Other |
|
1,040 |
|
|
|
1,659 |
|
|
(37.3 |
)% |
|
|
7,362 |
|
|
|
8,695 |
|
|
(15.3 |
)% |
| Net
revenue |
|
115,311 |
|
|
|
115,104 |
|
|
0.2 |
% |
|
|
333,169 |
|
|
|
339,445 |
|
|
(1.8 |
)% |
| Subscription Digital Marketing
Solutions Expenses |
|
13,956 |
|
|
|
14,498 |
|
|
(3.7 |
)% |
|
|
40,251 |
|
|
|
45,703 |
|
|
(11.9 |
)% |
| Digital Advertising
expenses |
|
30,050 |
|
|
|
27,271 |
|
|
10.2 |
% |
|
|
87,665 |
|
|
|
77,666 |
|
|
12.9 |
% |
| Broadcast Advertising
expenses |
|
38,560 |
|
|
|
37,510 |
|
|
2.8 |
% |
|
|
111,442 |
|
|
|
113,858 |
|
|
(2.1 |
)% |
| Other expenses |
|
1,228 |
|
|
|
2,044 |
|
|
(39.9 |
)% |
|
|
6,843 |
|
|
|
8,074 |
|
|
(15.2 |
)% |
|
Direct operating expenses |
|
83,794 |
|
|
|
81,323 |
|
|
3.0 |
% |
|
|
246,201 |
|
|
|
245,301 |
|
|
0.4 |
% |
|
Depreciation and amortization |
|
4,947 |
|
|
|
4,717 |
|
|
4.9 |
% |
|
|
14,896 |
|
|
|
14,496 |
|
|
2.8 |
% |
|
Corporate expenses |
|
6,063 |
|
|
|
6,604 |
|
|
(8.2 |
)% |
|
|
17,762 |
|
|
|
18,911 |
|
|
(6.1 |
)% |
|
Stock-based compensation |
|
2,867 |
|
|
|
2,350 |
|
|
22.0 |
% |
|
|
14,062 |
|
|
|
6,228 |
|
|
125.8 |
% |
|
Transaction and business realignment costs |
|
645 |
|
|
|
161 |
|
|
300.6 |
% |
|
|
3,683 |
|
|
|
764 |
|
|
382.1 |
% |
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
2,008 |
|
|
|
30,970 |
|
|
(93.5 |
)% |
|
|
36,264 |
|
|
|
65,697 |
|
|
(44.8 |
)% |
|
Net gain on sale and retirement of assets |
|
(110 |
) |
|
|
(362 |
) |
|
(69.6 |
)% |
|
|
(66 |
) |
|
|
(703 |
) |
|
(90.6 |
)% |
| Total operating costs
and expenses |
|
100,214 |
|
|
|
125,763 |
|
|
(20.3 |
)% |
|
|
332,802 |
|
|
|
350,694 |
|
|
(5.1 |
)% |
| Operating income
(loss) |
|
15,097 |
|
|
|
(10,659 |
) |
|
(241.6 |
)% |
|
|
367 |
|
|
|
(11,249 |
) |
|
(103.3 |
)% |
| Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
9,175 |
|
|
|
9,343 |
|
|
(1.8 |
)% |
|
|
27,418 |
|
|
|
28,215 |
|
|
(2.8 |
)% |
|
Gain on repurchases of debt |
|
(8 |
) |
|
|
(430 |
) |
|
(98.1 |
)% |
|
|
(11 |
) |
|
|
(1,249 |
) |
|
(99.1 |
)% |
|
Other income, net |
|
(277 |
) |
|
|
(547 |
) |
|
(49.4 |
)% |
|
|
(4,974 |
) |
|
|
(6,451 |
) |
|
(22.9 |
)% |
| Income (loss) from
operations before tax |
|
6,207 |
|
|
|
(19,025 |
) |
|
(132.6 |
)% |
|
|
(22,066 |
) |
|
|
(31,764 |
) |
|
(30.5 |
)% |
| Income tax (benefit)
provision |
|
(5,129 |
) |
|
|
17,478 |
|
|
129.3 |
% |
|
|
13,903 |
|
|
|
9,380 |
|
|
(48.2 |
)% |
| Net income
(loss) |
$ |
11,336 |
|
|
$ |
(36,503 |
) |
|
(131.1 |
)% |
|
$ |
(35,969 |
) |
|
$ |
(41,144 |
) |
|
(12.6 |
)% |
The following table presents Net revenue and
Adjusted Operating Income by segment, for the three and nine months
ended September 30, 2024, and 2023, respectively (in
thousands):
| |
Three Months Ended September
30, |
|
|
|
Nine Months Ended September
30, |
|
|
| |
(Unaudited) |
|
|
|
(Unaudited) |
|
|
| |
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
Subscription Digital Marketing Solutions |
$ |
19,080 |
|
|
$ |
20,257 |
|
|
(5.8 |
)% |
|
$ |
55,848 |
|
|
$ |
63,086 |
|
|
(11.5 |
)% |
| Digital Advertising |
|
40,861 |
|
|
|
39,009 |
|
|
4.7 |
% |
|
|
116,541 |
|
|
|
113,842 |
|
|
2.4 |
% |
|
Digital |
|
59,941 |
|
|
|
59,266 |
|
|
1.1 |
% |
|
|
172,389 |
|
|
|
176,928 |
|
|
(2.6 |
)% |
| Broadcast Advertising |
|
54,330 |
|
|
|
54,179 |
|
|
0.3 |
% |
|
|
153,418 |
|
|
|
153,822 |
|
|
(0.3 |
)% |
| Other |
|
1,040 |
|
|
|
1,659 |
|
|
(37.3 |
)% |
|
|
7,362 |
|
|
|
8,695 |
|
|
(15.3 |
)% |
| Net
revenue |
$ |
115,311 |
|
|
$ |
115,104 |
|
|
0.2 |
% |
|
$ |
333,169 |
|
|
$ |
339,445 |
|
|
(1.8 |
)% |
| Subscription Digital Marketing
Solutions |
$ |
5,124 |
|
|
$ |
5,759 |
|
|
(11.0 |
)% |
|
$ |
15,597 |
|
|
$ |
17,383 |
|
|
(10.3 |
)% |
| Digital Advertising |
|
10,811 |
|
|
|
11,738 |
|
|
(7.9 |
)% |
|
|
28,876 |
|
|
|
36,176 |
|
|
(20.2 |
)% |
|
Digital |
|
15,935 |
|
|
|
17,497 |
|
|
(8.9 |
)% |
|
|
44,473 |
|
|
|
53,559 |
|
|
(17.0 |
)% |
| Broadcast Advertising |
|
15,770 |
|
|
|
16,669 |
|
|
(5.4 |
)% |
|
|
41,976 |
|
|
|
39,964 |
|
|
5.0 |
% |
| Other |
|
(188 |
) |
|
|
(385 |
) |
|
(51.2 |
)% |
|
|
519 |
|
|
|
621 |
|
|
(16.4 |
)% |
| Adjusted Operating
Income |
$ |
31,517 |
|
|
$ |
33,781 |
|
|
(6.7 |
)% |
|
$ |
86,968 |
|
|
$ |
94,144 |
|
|
(7.6 |
)% |
The following table reconciles Net revenue to
Net revenue, excluding political revenue on a GAAP basis by segment
for the three and nine months ended September 30, 2024, and 2023,
respectively (in thousands):
| |
Three Months Ended September
30, |
|
|
|
Nine Months Ended September
30, |
|
|
| |
(Unaudited) |
|
|
|
(Unaudited) |
|
|
| |
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
Subscription Digital Marketing Solutions |
$ |
19,080 |
|
|
$ |
20,257 |
|
|
(5.8 |
)% |
|
$ |
55,848 |
|
|
$ |
63,086 |
|
|
(11.5 |
)% |
| Digital Advertising |
|
40,861 |
|
|
|
39,009 |
|
|
4.7 |
% |
|
|
116,541 |
|
|
|
113,842 |
|
|
2.4 |
% |
|
Digital |
|
59,941 |
|
|
|
59,266 |
|
|
1.1 |
% |
|
|
172,389 |
|
|
|
176,928 |
|
|
(2.6 |
)% |
| Broadcast Advertising |
|
54,330 |
|
|
|
54,179 |
|
|
0.3 |
% |
|
|
153,418 |
|
|
|
153,822 |
|
|
(0.3 |
)% |
| Other |
|
1,040 |
|
|
|
1,659 |
|
|
(37.3 |
)% |
|
|
7,362 |
|
|
|
8,695 |
|
|
(15.3 |
)% |
| Net
revenue |
$ |
115,311 |
|
|
$ |
115,104 |
|
|
0.2 |
% |
|
$ |
333,169 |
|
|
$ |
339,445 |
|
|
(1.8 |
)% |
| Subscription Digital Marketing
Solutions political revenue |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
| Digital Advertising political
revenue |
|
145 |
|
|
|
66 |
|
|
119.7 |
% |
|
|
364 |
|
|
|
127 |
|
|
186.6 |
% |
| Broadcast Advertising
political revenue |
|
3,555 |
|
|
|
561 |
|
|
533.7 |
% |
|
|
5,855 |
|
|
|
1,118 |
|
|
423.7 |
% |
| Other political revenue |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
| Political
revenue |
$ |
3,700 |
|
|
$ |
627 |
|
|
490.1 |
% |
|
$ |
6,219 |
|
|
$ |
1,245 |
|
|
399.5 |
% |
| Subscription Digital Marketing
Solutions net revenue (ex. political) |
$ |
19,080 |
|
|
$ |
20,257 |
|
|
(5.8 |
)% |
|
$ |
55,848 |
|
|
$ |
63,086 |
|
|
(11.5 |
)% |
| Digital Advertising net
revenue (ex. political) |
|
40,716 |
|
|
|
38,943 |
|
|
4.6 |
% |
|
|
116,177 |
|
|
|
113,715 |
|
|
2.2 |
% |
|
Digital net revenue (ex. political) |
|
59,796 |
|
|
|
59,200 |
|
|
1.0 |
% |
|
|
172,025 |
|
|
|
176,801 |
|
|
(2.7 |
)% |
| Broadcast Advertising
political net revenue (ex. political) |
|
50,775 |
|
|
|
53,618 |
|
|
(5.3 |
)% |
|
|
147,563 |
|
|
|
152,704 |
|
|
(3.4 |
)% |
| Other net revenue (ex.
political) |
|
1,040 |
|
|
|
1,659 |
|
|
(37.3 |
)% |
|
|
7,362 |
|
|
|
8,695 |
|
|
(15.3 |
)% |
| Net revenue (ex.
political) |
$ |
111,611 |
|
|
$ |
114,477 |
|
|
(2.5 |
)% |
|
$ |
326,950 |
|
|
$ |
338,200 |
|
|
(3.3 |
)% |
The following table reconciles on a GAAP basis
net income (loss), the most directly comparable financial measure
calculated and presented in accordance with GAAP, to Adjusted Net
Income for the three and nine months ended September 30, 2024, and
2023, respectively (in thousands, except per share data):
| |
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
| |
(Unaudited) |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net income (loss) |
$ |
11,336 |
|
|
$ |
(36,503 |
) |
|
$ |
(35,969 |
) |
|
$ |
(41,144 |
) |
| Income tax (benefit)
provision |
|
(5,129 |
) |
|
|
17,478 |
|
|
|
13,903 |
|
|
|
9,380 |
|
| Income (loss) from
operations before taxes |
|
6,207 |
|
|
|
(19,025 |
) |
|
|
(22,066 |
) |
|
|
(31,764 |
) |
|
Transaction and business realignment costs |
|
645 |
|
|
|
161 |
|
|
|
3,683 |
|
|
|
764 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
2,008 |
|
|
|
30,970 |
|
|
|
36,264 |
|
|
|
65,697 |
|
|
Net gain on sale and retirement of assets |
|
(110 |
) |
|
|
(362 |
) |
|
|
(66 |
) |
|
|
(703 |
) |
|
Gain on repurchases of debt |
|
(8 |
) |
|
|
(430 |
) |
|
|
(11 |
) |
|
|
(1,249 |
) |
|
Gain on sale of digital assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(839 |
) |
|
Gain on sale of investment |
|
(46 |
) |
|
|
— |
|
|
|
(4,054 |
) |
|
|
(5,210 |
) |
|
Change in fair value of investment |
|
— |
|
|
|
605 |
|
|
|
(202 |
) |
|
|
493 |
|
|
Gain on insurance recoveries |
|
(58 |
) |
|
|
(349 |
) |
|
|
(336 |
) |
|
|
(721 |
) |
|
Net income attributable to non-controlling interest, net of income
taxes |
|
(489 |
) |
|
|
(496 |
) |
|
|
(1,292 |
) |
|
|
(1,476 |
) |
| Adjusted net income
before income taxes |
|
8,149 |
|
|
|
11,074 |
|
|
|
11,920 |
|
|
|
24,992 |
|
|
Income tax provision (1) |
|
2,069 |
|
|
|
2,824 |
|
|
|
3,027 |
|
|
|
6,373 |
|
| Adjusted Net
Income |
$ |
6,080 |
|
|
$ |
8,250 |
|
|
$ |
8,893 |
|
|
$ |
18,619 |
|
| |
|
|
|
|
|
|
|
| Adjusted Net Income Per
Share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.40 |
|
|
$ |
0.51 |
|
|
$ |
0.57 |
|
|
$ |
1.10 |
|
|
Diluted |
$ |
0.35 |
|
|
$ |
0.46 |
|
|
$ |
0.50 |
|
|
$ |
1.05 |
|
| |
|
|
|
|
|
|
|
| Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
15,296 |
|
|
|
16,277 |
|
|
|
15,650 |
|
|
|
16,897 |
|
|
Diluted |
|
17,227 |
|
|
|
18,073 |
|
|
|
17,694 |
|
|
|
17,726 |
|
(1) Income tax provision for the three and nine
months ended September 30, 2024 and 2023, respectively, was
calculated using the Company's statutory effective tax rate.
The following table reconciles on a GAAP basis
net income (loss), the most directly comparable financial measure
calculated and presented in accordance with GAAP, to Adjusted
EBITDA, Adjusted EBITDA (Excluding Political), and Adjusted EBITDA
Less Interest, Capex and Taxes for the three and nine months ended
September 30, 2024, and 2023, respectively (dollars in
thousands):
| |
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
| |
(Unaudited) |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net income
(loss) |
$ |
11,336 |
|
|
$ |
(36,503 |
) |
|
$ |
(35,969 |
) |
|
$ |
(41,144 |
) |
|
Income tax (benefit) provision |
|
(5,129 |
) |
|
|
17,478 |
|
|
|
13,903 |
|
|
|
9,380 |
|
|
Interest expense, net |
|
9,175 |
|
|
|
9,343 |
|
|
|
27,418 |
|
|
|
28,215 |
|
|
Gain on repurchases of debt |
|
(8 |
) |
|
|
(430 |
) |
|
|
(11 |
) |
|
|
(1,249 |
) |
|
Depreciation and amortization |
|
4,947 |
|
|
|
4,717 |
|
|
|
14,896 |
|
|
|
14,496 |
|
|
Stock-based compensation |
|
2,867 |
|
|
|
2,350 |
|
|
|
14,062 |
|
|
|
6,228 |
|
|
Transaction and business realignment costs |
|
645 |
|
|
|
161 |
|
|
|
3,683 |
|
|
|
764 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
2,008 |
|
|
|
30,970 |
|
|
|
36,264 |
|
|
|
65,697 |
|
|
Other (a) |
|
(387 |
) |
|
|
(909 |
) |
|
|
(5,040 |
) |
|
|
(7,154 |
) |
| Adjusted
EBITDA |
$ |
25,454 |
|
|
$ |
27,177 |
|
|
$ |
69,206 |
|
|
$ |
75,233 |
|
|
Political Adjusted EBITDA |
|
(3,145 |
) |
|
|
(533 |
) |
|
|
(5,286 |
) |
|
|
(1,058 |
) |
| Adjusted EBITDA
(Excluding Political) |
$ |
22,309 |
|
|
$ |
26,644 |
|
|
$ |
63,920 |
|
|
$ |
74,175 |
|
|
Political Adjusted EBITDA |
|
3,145 |
|
|
|
533 |
|
|
|
5,286 |
|
|
|
1,058 |
|
|
Net cash paid for interest |
|
(17,146 |
) |
|
|
(18,219 |
) |
|
|
(35,390 |
) |
|
|
(37,273 |
) |
|
Capital expenditures |
|
(5,092 |
) |
|
|
(4,237 |
) |
|
|
(13,771 |
) |
|
|
(11,373 |
) |
|
Cash paid for taxes |
|
(261 |
) |
|
|
(305 |
) |
|
|
(945 |
) |
|
|
(1,122 |
) |
| Adjusted EBITDA Less
Interest, Capex and Taxes |
$ |
2,955 |
|
|
$ |
4,416 |
|
|
$ |
19,100 |
|
|
$ |
25,465 |
|
(a) Other includes net gain on sale and retirement of assets and
other income, net.
The following table reconciles net (loss)
income, the most directly comparable financial measure calculated
and presented in accordance with GAAP, to Adjusted EBITDA on a
quarterly basis for the twelve months ended September 30, 2024
(dollars in thousands):
| |
Three Months Ended |
|
Twelve Months Ended |
| |
(Unaudited) |
| |
December 31,2023 |
|
March 31,2024 |
|
June 30,2024 |
|
September 30,2024 |
|
September 30,2024 |
|
Net (loss) income |
$ |
(1,878 |
) |
|
$ |
1,553 |
|
|
$ |
(48,858 |
) |
|
$ |
11,336 |
|
|
$ |
(37,847 |
) |
| Income tax (benefit)
provision |
|
(15,522 |
) |
|
|
207 |
|
|
|
18,825 |
|
|
|
(5,129 |
) |
|
|
(1,619 |
) |
|
Interest expense, net |
|
9,034 |
|
|
|
9,031 |
|
|
|
9,212 |
|
|
|
9,175 |
|
|
|
36,452 |
|
|
Gain on repurchases of debt |
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(8 |
) |
|
|
(11 |
) |
|
Depreciation and amortization |
|
4,704 |
|
|
|
4,935 |
|
|
|
5,014 |
|
|
|
4,947 |
|
|
|
19,600 |
|
|
Stock-based compensation |
|
1,805 |
|
|
|
2,870 |
|
|
|
8,325 |
|
|
|
2,867 |
|
|
|
15,867 |
|
|
Transaction and business realignment costs |
|
405 |
|
|
|
1,444 |
|
|
|
1,594 |
|
|
|
645 |
|
|
|
4,088 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
24,881 |
|
|
|
1,618 |
|
|
|
32,638 |
|
|
|
2,008 |
|
|
|
61,145 |
|
|
Other (a) |
|
1,349 |
|
|
|
(4,137 |
) |
|
|
(516 |
) |
|
$ |
(387 |
) |
|
|
(3,691 |
) |
| Adjusted
EBITDA |
$ |
24,778 |
|
|
$ |
17,521 |
|
|
$ |
26,231 |
|
|
$ |
25,454 |
|
|
$ |
93,984 |
|
(a) Other includes net gain on sale and retirement of assets and
other (income) expense, net.
The following tables reconcile Operating income
(loss) by segment, the most directly comparable financial measure
calculated and presented in accordance with GAAP, to Adjusted
Operating Income by segment for the three months ended September
30, 2024, and 2023 (in thousands):
| |
Three Months Ended September 30,
2024 |
| |
(Unaudited) |
| |
Subscription Digital Marketing Solutions |
|
Digital Advertising |
|
Broadcast Advertising |
|
Other |
|
Operating income (loss) |
$ |
4,388 |
|
|
$ |
10,417 |
|
|
$ |
12,682 |
|
|
$ |
(1,903 |
) |
|
Depreciation and amortization |
|
602 |
|
|
|
251 |
|
|
|
2,715 |
|
|
|
32 |
|
|
Stock-based compensation |
|
134 |
|
|
|
143 |
|
|
|
188 |
|
|
|
4 |
|
|
Transaction and business realignment costs |
|
— |
|
|
|
— |
|
|
|
161 |
|
|
|
5 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
— |
|
|
|
— |
|
|
|
134 |
|
|
|
1,674 |
|
|
Net gain on sale and retirement of assets |
|
— |
|
|
|
— |
|
|
|
(110 |
) |
|
|
— |
|
| Adjusted Operating
Income (Loss) |
$ |
5,124 |
|
|
$ |
10,811 |
|
|
$ |
15,770 |
|
|
$ |
(188 |
) |
| |
Three Months Ended September 30,
2023 |
| |
(Unaudited) |
| |
Subscription Digital Marketing Solutions |
|
Digital Advertising |
|
Broadcast Advertising |
|
Other |
|
Operating income (loss) |
$ |
5,282 |
|
|
$ |
11,448 |
|
|
$ |
(13,081 |
) |
|
$ |
(427 |
) |
|
Depreciation and amortization |
|
325 |
|
|
|
147 |
|
|
|
3,263 |
|
|
|
35 |
|
|
Stock-based compensation |
|
152 |
|
|
|
143 |
|
|
|
240 |
|
|
|
4 |
|
|
Transaction and business realignment costs |
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
3 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
— |
|
|
|
— |
|
|
|
26,603 |
|
|
|
— |
|
|
Net gain on sale and retirement of assets |
|
— |
|
|
|
— |
|
|
|
(362 |
) |
|
|
— |
|
| Adjusted Operating
Income |
$ |
5,759 |
|
|
$ |
11,738 |
|
|
$ |
16,669 |
|
|
$ |
(385 |
) |
The following tables reconcile Operating income
(loss) by segment, the most directly comparable financial measure
calculated and presented in accordance with GAAP, to Adjusted
Operating Income by segment for the nine months ended September 30,
2024, and 2023 (in thousands):
| |
Nine Months Ended September 30,
2024 |
| |
(Unaudited) |
| |
Subscription Digital Marketing Solutions |
|
Digital Advertising |
|
Broadcast Advertising |
|
Other |
|
Operating income (loss) |
$ |
13,305 |
|
|
$ |
25,895 |
|
|
$ |
2,724 |
|
|
$ |
(2,190 |
) |
|
Depreciation and amortization |
|
1,824 |
|
|
|
698 |
|
|
|
8,386 |
|
|
|
97 |
|
|
Stock-based compensation |
|
468 |
|
|
|
499 |
|
|
|
546 |
|
|
|
12 |
|
|
Transaction and business realignment costs |
|
— |
|
|
|
— |
|
|
|
249 |
|
|
|
17 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
— |
|
|
|
1,784 |
|
|
|
30,137 |
|
|
|
2,583 |
|
|
Net gain on sale and retirement of assets |
|
— |
|
|
|
— |
|
|
|
(66 |
) |
|
|
— |
|
| Adjusted Operating
Income |
$ |
15,597 |
|
|
$ |
28,876 |
|
|
$ |
41,976 |
|
|
$ |
519 |
|
| |
Nine Months Ended September 30,
2023 |
| |
(Unaudited) |
| |
Subscription Digital Marketing Solutions |
|
Digital Advertising |
|
Broadcast Advertising |
|
Other |
|
Operating income (loss) |
$ |
15,972 |
|
|
$ |
35,439 |
|
|
$ |
(22,399 |
) |
|
$ |
493 |
|
|
Depreciation and amortization |
|
980 |
|
|
|
479 |
|
|
|
10,245 |
|
|
|
104 |
|
|
Stock-based compensation |
|
431 |
|
|
|
258 |
|
|
|
622 |
|
|
|
10 |
|
|
Transaction and business realignment costs |
|
— |
|
|
|
— |
|
|
|
366 |
|
|
|
14 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
— |
|
|
|
— |
|
|
|
51,833 |
|
|
|
— |
|
|
Net gain on sale and retirement of assets |
|
— |
|
|
|
— |
|
|
|
(703 |
) |
|
|
— |
|
| Adjusted Operating
Income |
$ |
17,383 |
|
|
$ |
36,176 |
|
|
$ |
39,964 |
|
|
$ |
621 |
|
Grafico Azioni Townsquare Media (NYSE:TSQ)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Townsquare Media (NYSE:TSQ)
Storico
Da Gen 2024 a Gen 2025
