Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare”, the "Company,"
"we," "us," or "our") announced today its financial results for the
second quarter ended June 30, 2024.
“I am pleased to share that Townsquare’s
momentum is building as demonstrated by another quarter of
sequential net revenue improvement, primarily due to our local
focus and our unique and differentiated digital platform. Second
quarter net revenue decreased -2.5% year-over-year and Adjusted
EBITDA decreased -8.3% year-over-year, both meeting guidance and
reflecting a sequential improvement from first quarter declines. In
the second quarter, the Company reported a net loss of
$48.9 million, in large part due to non-cash impairment
charges. Our Q2 performance was driven by stabilizing and/or
improving trends across segments: Townsquare Interactive returned
to sequential revenue growth in each month of the quarter, as a
result of positive subscriber trends that have improved
dramatically compared to previous quarters; Digital Advertising net
revenue growth continued at +1% year-over-year; and Broadcast
Advertising net revenue was approximately flat as compared to the
prior year, an improvement from first quarter declines. In total,
Digital represented 52% of Townsquare’s net revenue in the first
six months of the year,” commented Bill Wilson, Chief Executive
Officer of Townsquare Media, Inc. “Additionally, we continue to
generate strong cash flow, granting us the ability to invest in our
digital growth engine while preserving financial flexibility, as
evidenced by our ongoing debt and share buybacks in the open
market. In fact, S&P Global upgraded their rating of our Senior
Secured Notes (the “Notes”) from B to B+ in June, citing our
performance and credit metrics. In the first six months of the
year, we have repurchased and retired $14 million of our Notes
at a discount to par, and repurchased $22 million of equity, or 2.2
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 $29 million at the end of the second
quarter.”
Mr. Wilson concluded, "Most importantly, due to
our current cash position and our strong cash generation, we retain
financial flexibility moving forward and we are confident in our
ability to build shareholder value for our investors through
long-term net revenue and cash flow growth, net leverage reduction,
future dividend payments, and potential future share
repurchases.
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 November 1, 2024 to shareholders of
record as of the close of business on October 15, 2024. As of
yesterday’s closing price that reflects a dividend yield of
approximately 7%.
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.
Second Quarter Results*
- As compared to the second quarter
of 2023:
- Net revenue decreased 2.5%, and
3.4% excluding political
- Net loss increased
$46.2 million
- Adjusted EBITDA decreased 8.3%
- Total Digital net revenue decreased
3.8%
- Subscription Digital Marketing
Solutions (“Townsquare Interactive”) net revenue decreased
12.9%
- Digital Advertising net revenue
increased 1.0%
- Total Digital Adjusted Operating
Income decreased 19.4%
- Subscription Digital Marketing
Solutions Adjusted Operating Income decreased 10.1%
- Digital Advertising Adjusted
Operating Income decreased 23.3%
- Broadcast Advertising net revenue
decreased 0.2%, and decreased 1.9% excluding political
- Loss per share was $3.26 and
Adjusted Net Income per diluted share was $0.14
- Repurchased an aggregate
$13.7 million of our 2026 Senior Secured Notes below par
- Repurchased 1.8 million shares of
the Company’s common stock at an average price of $10.13
- Repurchased and retired 3.2 million
options expiring in July 2024 for a net purchase price of $3.61 per
option
Year-to-Date Highlights*
- As compared to the six months ended
June 30, 2023:
- Net revenue decreased 2.9%, and
3.7% excluding political
- Net loss increased $42.7
million
- Adjusted EBITDA decreased 9.0%
- Total Digital net revenue decreased
4.4%
- Subscription Digital Marketing
Solutions net revenue decreased 14.2%
- Digital Advertising net revenue
increased 1.1%
- Total Digital Adjusted Operating
Income decreased 20.9%
- Subscription Digital Marketing
Solutions Adjusted Operating Income decreased 9.9%
- Digital Advertising Adjusted
Operating Income decreased 26.1%
- Broadcast Advertising net revenue
decreased 0.6%, and 2.3%, excluding political
- Repurchased 2.2 million shares
of the Company’s common stock at an average price of $10.25
*See below for discussion of non-GAAP
measures.
GuidanceFor the third quarter
of 2024, net revenue is expected to be between $114 million and
$116 million, and Adjusted EBITDA is expected to be between $25
million and $27 million.
For the full year 2024, net revenue is expected
to be between $440 million and $455 million, and Adjusted EBITDA is
expected to be between $100 million and $105 million.
Quarter Ended
June 30, 2024 Compared to the Quarter
Ended June 30, 2023
Net RevenueNet revenue for the
three months ended June 30, 2024 decreased $3.0 million, or 2.5%,
to $118.2 million as compared to $121.2 million in the same period
in 2023. Subscription Digital Marketing Solutions net revenue
decreased $2.8 million, or 12.9%, Other net revenue decreased $0.6
million, or 11.0%, and Broadcast Advertising net revenue decreased
$0.1 million, or 0.2%, as compared to the same period in 2023.
These decreases were partially offset by an increase in Digital
Advertising net revenue of $0.4 million, or 1.0%, as compared to
the same period in 2023. Excluding political revenue of $1.5
million and $0.4 million for the three months ended June 30, 2024
and 2023, respectively, net revenue decreased $4.1 million, or
3.4%, to $116.8 million, Broadcast Advertising net revenue
decreased $1.0 million, or 1.9%, to $52.3 million, and Digital
Advertising net revenue increased $0.3 million, or 0.7%, to $41.4
million.
Net LossFor the three months
ended June 30, 2024, we reported a net loss of $48.9 million,
as compared to a net loss of $2.7 million in the same period
last year. The increase was primarily due to a $25.3 million
increase in the income tax provision due to an increase in the
valuation allowance for interest expense carryforwards, as well as
increases in non-cash impairment charges, stock-based compensation,
and transaction and business realignment costs, and decreases in
other income and net revenue. Adjusted Net Income decreased $6.1
million as compared to the same period last year.
Adjusted EBITDAAdjusted EBITDA
for the three months ended June 30, 2024 decreased
$2.4 million, or 8.3%, to $26.2 million, as compared to $28.6
million in the same period last year. Adjusted EBITDA (Excluding
Political) decreased $3.3 million, or 11.6%, to $25.0 million,
as compared to $28.3 million in the same period last year.
Six Months Ended
June 30, 2024 Compared to the Six
Months Ended June 30, 2023
Net RevenueNet revenue for the
six months ended June 30, 2024, decreased $6.5 million, or 2.9%, to
$217.9 million as compared to $224.3 million in the same period in
2023. Subscription Digital Marketing Solutions net revenue
decreased $6.1 million, or 14.2%, Other net revenue decreased $0.7
million, or 10.1%, and Broadcast Advertising net revenue decreased
$0.6 million, or 0.6%. These declines were partially offset by an
$0.8 million, or 1.1%, increase in Digital Advertising net revenue
as compared to the same period in 2023. Excluding political revenue
of $2.5 million and $0.6 million for the six months ended June 30,
2024 and 2023, respectively, net revenue decreased $8.4 million, or
3.7% to $215.3 million, Broadcast Advertising net revenue decreased
$2.3 million, or 2.3%, to $96.8 million, and Digital Advertising
net revenue increased $0.7 million, or 0.9%, to $75.5 million.
Net LossFor the six months
ended June 30, 2024, we reported a net loss of $47.3 million, as
compared to a net loss of $4.6 million in the same period last
year. The increase was primarily due to a $27.1 million increase in
the income tax provision due to an increase in the valuation
allowance for interest expense carryforwards, as well as increases
in stock-based compensation and transaction and business
realignment costs, and decreases in net revenue and other income
(expense), partially offset by a decrease in direct operating
expenses. Adjusted Net Income decreased $7.6 million as compared to
the same period last year.
Adjusted EBITDAAdjusted EBITDA
for the six months ended June 30, 2024 decreased $4.3 million, or
9.0% to $43.8 million, as compared to $48.1 million in the same
period last year. Adjusted EBITDA (Excluding Political) decreased
$5.9 million, or 12.5%, to $41.6 million, as compared to $47.5
million in the same period last year.
Liquidity and Capital
ResourcesAs of June 30, 2024, we had a total of
$28.5 million of cash and cash equivalents and
$489.9 million of outstanding indebtedness, representing 5.12x
and 4.82x gross and net leverage, respectively, based on Adjusted
EBITDA for the twelve months ended June 30, 2024, of
$95.7 million.
The table below presents a summary, as of
August 2, 2024, of our outstanding common stock.
|
Security |
|
Number Outstanding |
|
Description |
|
Class A common stock |
|
14,578,502 |
|
One vote per share. |
| Class B common stock |
|
815,296 |
|
10 votes per share.1 |
| Total |
|
15,393,798 |
|
|
|
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 second
quarter 2024 financial results and 2024 guidance on Wednesday,
August 7, 2024 at 8:00 a.m. Eastern Time. The conference call
dial-in number is 1-800-343-5172 (U.S. & Canada) or
1-203-518-9856 (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 August 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 11156520. 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
approximately 23,575 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, gain on sale of investment, 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
June 30, 2024, divided by our Adjusted EBITDA for the twelve
months ended June 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) |
|
(unaudited) |
| |
| |
June 30,2024 |
|
December 31,2023 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
28,511 |
|
|
$ |
61,046 |
|
|
Accounts receivable, net of allowance for credit losses of $3,879
and $4,041, respectively |
|
60,530 |
|
|
|
60,780 |
|
|
Prepaid expenses and other current assets |
|
11,822 |
|
|
|
10,356 |
|
|
Total current assets |
|
100,863 |
|
|
|
132,182 |
|
| Property and equipment,
net |
|
110,011 |
|
|
|
110,194 |
|
| Intangible assets, net |
|
166,982 |
|
|
|
200,306 |
|
| Goodwill |
|
154,577 |
|
|
|
157,270 |
|
| Investments |
|
2,183 |
|
|
|
3,542 |
|
| Operating lease right-of-use
assets |
|
43,800 |
|
|
|
46,887 |
|
| Other assets |
|
711 |
|
|
|
1,165 |
|
| Restricted cash |
|
507 |
|
|
|
503 |
|
|
Total assets |
$ |
579,634 |
|
|
$ |
652,049 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable |
$ |
4,710 |
|
|
$ |
5,036 |
|
|
Deferred revenue |
|
9,471 |
|
|
|
9,059 |
|
|
Accrued compensation and benefits |
|
10,062 |
|
|
|
13,085 |
|
|
Accrued expenses and other current liabilities |
|
26,630 |
|
|
|
25,112 |
|
|
Operating lease liabilities, current |
|
9,506 |
|
|
|
9,376 |
|
|
Accrued interest |
|
14,043 |
|
|
|
14,420 |
|
|
Total current liabilities |
|
74,422 |
|
|
|
76,088 |
|
| Long-term debt, net of
deferred finance costs of $2,880 and $3,960, respectively |
|
487,056 |
|
|
|
499,658 |
|
| Deferred tax liability |
|
30,491 |
|
|
|
11,856 |
|
| Operating lease liability, net
of current portion |
|
40,038 |
|
|
|
41,437 |
|
| Other long-term
liabilities |
|
11,763 |
|
|
|
13,099 |
|
|
Total liabilities |
|
643,770 |
|
|
|
642,138 |
|
| Stockholders’ equity: |
|
|
|
|
Class A common stock, par value $0.01 per share; 300,000,000 shares
authorized; 15,298,802 and 14,023,767 shares issued and
outstanding, respectively |
|
153 |
|
|
|
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; 0 and 1,961,341 shares issued and outstanding,
respectively |
|
— |
|
|
|
20 |
|
|
Total common stock |
|
161 |
|
|
|
168 |
|
|
Treasury stock, at cost; 840,461 and 183,768 shares of Class A
common stock, respectively |
|
(9,829 |
) |
|
|
(2,177 |
) |
|
Additional paid-in capital |
|
299,161 |
|
|
|
310,612 |
|
|
Accumulated deficit |
|
(356,633 |
) |
|
|
(302,193 |
) |
|
Non-controlling interest |
|
3,004 |
|
|
|
3,501 |
|
|
Total stockholders’ equity |
|
(64,136 |
) |
|
|
9,911 |
|
|
Total liabilities and stockholders’ equity |
$ |
579,634 |
|
|
$ |
652,049 |
|
|
TOWNSQUARE MEDIA, INC. |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(in Thousands, Except Per Share Data) |
|
(unaudited) |
| |
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net revenue |
$ |
118,225 |
|
|
$ |
121,231 |
|
|
$ |
217,858 |
|
|
$ |
224,341 |
|
| Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Direct operating expenses, excluding depreciation, amortization,
and stock-based compensation |
|
85,512 |
|
|
|
85,654 |
|
|
|
162,407 |
|
|
|
163,978 |
|
|
Depreciation and amortization |
|
5,014 |
|
|
|
4,835 |
|
|
|
9,949 |
|
|
|
9,779 |
|
|
Corporate expenses |
|
6,482 |
|
|
|
6,962 |
|
|
|
11,699 |
|
|
|
12,307 |
|
|
Stock-based compensation |
|
8,325 |
|
|
|
2,106 |
|
|
|
11,195 |
|
|
|
3,878 |
|
|
Transaction and business realignment costs |
|
1,594 |
|
|
|
311 |
|
|
|
3,038 |
|
|
|
603 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
32,638 |
|
|
|
26,240 |
|
|
|
34,256 |
|
|
|
34,727 |
|
|
Net loss (gain) on sale and retirement of assets |
|
30 |
|
|
|
(49 |
) |
|
|
44 |
|
|
|
(341 |
) |
|
Total operating costs and expenses |
|
139,595 |
|
|
|
126,059 |
|
|
|
232,588 |
|
|
|
224,931 |
|
|
Operating loss |
|
(21,370 |
) |
|
|
(4,828 |
) |
|
|
(14,730 |
) |
|
|
(590 |
) |
| Other expense (income): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
9,212 |
|
|
|
9,314 |
|
|
|
18,243 |
|
|
|
18,872 |
|
|
Gain on repurchases of debt |
|
(3 |
) |
|
|
(44 |
) |
|
|
(3 |
) |
|
|
(819 |
) |
|
Other income, net |
|
(546 |
) |
|
|
(4,878 |
) |
|
|
(4,697 |
) |
|
|
(5,904 |
) |
|
Loss from operations before tax |
|
(30,033 |
) |
|
|
(9,220 |
) |
|
|
(28,273 |
) |
|
|
(12,739 |
) |
|
Income tax provision (benefit) |
|
18,825 |
|
|
|
(6,520 |
) |
|
|
19,032 |
|
|
|
(8,098 |
) |
|
Net loss |
$ |
(48,858 |
) |
|
$ |
(2,700 |
) |
|
$ |
(47,305 |
) |
|
$ |
(4,641 |
) |
| |
|
|
|
|
|
|
|
| Net (loss) income
attributable to: |
|
|
|
|
|
|
|
|
Controlling interests |
$ |
(49,244 |
) |
|
$ |
(3,200 |
) |
|
$ |
(48,108 |
) |
|
$ |
(5,621 |
) |
|
Non-controlling interests |
|
386 |
|
|
|
500 |
|
|
|
803 |
|
|
|
980 |
|
|
Net loss |
$ |
(48,858 |
) |
|
$ |
(2,700 |
) |
|
$ |
(47,305 |
) |
|
$ |
(4,641 |
) |
| |
|
|
|
|
|
|
|
| Basic loss per
share |
$ |
(3.26 |
) |
|
$ |
(0.19 |
) |
|
$ |
(3.04 |
) |
|
$ |
(0.33 |
) |
| |
|
|
|
|
|
|
|
| Diluted loss per
share |
$ |
(3.26 |
) |
|
$ |
(0.19 |
) |
|
$ |
(3.04 |
) |
|
$ |
(0.33 |
) |
| |
|
|
|
|
|
|
|
| Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
15,097 |
|
|
|
17,221 |
|
|
|
15,829 |
|
|
|
17,212 |
|
|
Diluted |
|
15,097 |
|
|
|
17,221 |
|
|
|
15,829 |
|
|
|
17,212 |
|
|
TOWNSQUARE MEDIA, INC. |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(in Thousands) |
|
(unaudited) |
| |
| |
Six Months Ended June 30, |
| |
2024 |
|
2023 |
| Cash flows from operating
activities: |
|
|
|
|
Net loss |
$ |
(47,305 |
) |
|
$ |
(4,641 |
) |
| Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
9,949 |
|
|
|
9,779 |
|
|
Amortization of deferred financing costs |
|
990 |
|
|
|
949 |
|
|
Non-cash lease expense |
|
— |
|
|
|
52 |
|
|
Net deferred taxes and other |
|
18,635 |
|
|
|
(8,473 |
) |
|
Allowance for credit losses |
|
2,686 |
|
|
|
2,564 |
|
|
Stock-based compensation expense |
|
11,195 |
|
|
|
3,878 |
|
|
Gain on repurchases of debt |
|
(3 |
) |
|
|
(819 |
) |
|
Trade and barter activity, net |
|
(575 |
) |
|
|
(1,008 |
) |
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
34,256 |
|
|
|
34,727 |
|
|
Realized gain on sale of digital assets |
|
— |
|
|
|
(839 |
) |
|
Gain on sale of investment |
|
(4,009 |
) |
|
|
(5,210 |
) |
|
Unrealized gain on investment |
|
(202 |
) |
|
|
(112 |
) |
|
Amortization of content rights |
|
2,445 |
|
|
|
2,422 |
|
|
Change in content rights liabilities |
|
(2,464 |
) |
|
|
(659 |
) |
|
Other |
|
1,946 |
|
|
|
(596 |
) |
| Changes in assets and
liabilities, net of acquisitions: |
|
|
|
|
Accounts receivable |
|
(2,857 |
) |
|
|
(3,453 |
) |
|
Prepaid expenses and other assets |
|
(527 |
) |
|
|
4,548 |
|
|
Accounts payable |
|
(365 |
) |
|
|
625 |
|
|
Accrued expenses |
|
(12,778 |
) |
|
|
(1,946 |
) |
|
Accrued interest |
|
(377 |
) |
|
|
(367 |
) |
|
Other long-term liabilities |
|
44 |
|
|
|
(15 |
) |
|
Net cash provided by operating activities |
|
10,684 |
|
|
|
31,406 |
|
| Cash flows from investing
activities: |
|
|
|
|
Purchase of property and equipment |
|
(8,679 |
) |
|
|
(7,136 |
) |
|
Proceeds from sale of digital assets |
|
— |
|
|
|
2,975 |
|
|
Proceeds from insurance recoveries |
|
278 |
|
|
|
372 |
|
|
Proceeds from sale of assets and investment related
transactions |
|
4,408 |
|
|
|
6,196 |
|
|
Net cash (used in) provided by investing
activities |
|
(3,993 |
) |
|
|
2,407 |
|
| Cash flows from financing
activities: |
|
|
|
|
Repurchases of 2026 Notes |
|
(13,589 |
) |
|
|
(11,966 |
) |
|
Dividend payments |
|
(6,256 |
) |
|
|
(3,240 |
) |
|
Proceeds from stock options exercised |
|
4,773 |
|
|
|
4,308 |
|
|
Shares withheld in lieu of employee tax withholding |
|
(35 |
) |
|
|
— |
|
|
Withholdings for shares issued under the ESPP |
|
403 |
|
|
|
430 |
|
|
Repurchases of stock |
|
(22,133 |
) |
|
|
(15,572 |
) |
|
Cash distribution to non-controlling interests |
|
(1,300 |
) |
|
|
(1,499 |
) |
|
Repayments of capitalized obligations |
|
(1,085 |
) |
|
|
(90 |
) |
|
Net cash used in financing activities |
|
(39,222 |
) |
|
|
(27,629 |
) |
| Cash and cash equivalents and
restricted cash: |
|
|
|
|
Net (decrease) increase in cash, cash equivalents and
restricted cash |
|
(32,531 |
) |
|
|
6,184 |
|
|
Beginning of period |
|
61,549 |
|
|
|
43,913 |
|
|
End of period |
$ |
29,018 |
|
|
$ |
50,097 |
|
|
TOWNSQUARE MEDIA, INC. |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued) |
|
(in Thousands) |
|
(unaudited) |
| |
| |
Six Months EndedJune 30, |
| |
2024 |
|
2023 |
| Supplemental
Disclosure of Cash Flow Information: |
|
|
|
| Cash payments: |
|
|
|
|
Interest |
$ |
18,244 |
|
$ |
19,054 |
|
Income taxes |
|
684 |
|
|
817 |
| |
|
|
|
| Supplemental
Disclosure of Non-cash Activities: |
|
|
|
|
Dividends declared, but not paid during the period |
$ |
3,174 |
|
$ |
3,148 |
|
Property and equipment acquired in exchange for advertising(1) |
|
587 |
|
|
253 |
|
Accrued capital expenditures |
|
124 |
|
|
114 |
| |
|
|
|
| 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 |
$ |
6,094 |
|
$ |
5,958 |
|
Right-of-use assets obtained in exchange for operating lease
obligations |
|
3,524 |
|
|
3,593 |
| |
|
|
|
|
Reconciliation of cash, cash equivalents and restricted
cash |
|
|
|
|
Cash and cash equivalents |
$ |
28,511 |
|
$ |
49,598 |
|
Restricted cash |
|
507 |
|
|
499 |
| |
$ |
29,018 |
|
$ |
50,097 |
(1) Represents total advertising services
provided by the Company in exchange for property and equipment
during each of the six months ended June 30, 2024 and 2023,
respectively.
|
TOWNSQUARE MEDIA, INC. |
|
CONSOLIDATED STATEMENTS OF OPERATIONS BY
SEGMENT |
|
(in Thousands) |
|
(unaudited) |
| |
| |
Three Months EndedJune 30, |
|
|
|
Six Months EndedJune 30, |
|
|
| |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Subscription Digital Marketing Solutions |
$ |
18,515 |
|
|
$ |
21,268 |
|
|
(12.9 |
)% |
|
$ |
36,768 |
|
|
$ |
42,829 |
|
|
(14.2 |
)% |
| Digital Advertising |
|
41,524 |
|
|
|
41,126 |
|
|
1.0 |
% |
|
|
75,680 |
|
|
|
74,833 |
|
|
1.1 |
% |
| Broadcast Advertising |
|
53,633 |
|
|
|
53,720 |
|
|
(0.2 |
)% |
|
|
99,088 |
|
|
|
99,643 |
|
|
(0.6 |
)% |
| Other |
|
4,553 |
|
|
|
5,117 |
|
|
(11.0 |
)% |
|
|
6,322 |
|
|
|
7,036 |
|
|
(10.1 |
)% |
| Net
revenue |
|
118,225 |
|
|
|
121,231 |
|
|
(2.5 |
)% |
|
|
217,858 |
|
|
|
224,341 |
|
|
(2.9 |
)% |
| Subscription Digital Marketing
Solutions Expenses |
|
13,098 |
|
|
|
15,243 |
|
|
(14.1 |
)% |
|
|
26,295 |
|
|
|
31,205 |
|
|
(15.7 |
)% |
| Digital Advertising
expenses |
|
30,515 |
|
|
|
26,782 |
|
|
13.9 |
% |
|
|
57,615 |
|
|
|
50,395 |
|
|
14.3 |
% |
| Broadcast Advertising
expenses |
|
37,612 |
|
|
|
38,983 |
|
|
(3.5 |
)% |
|
|
72,882 |
|
|
|
76,348 |
|
|
(4.5 |
)% |
| Other expenses |
|
4,287 |
|
|
|
4,646 |
|
|
(7.7 |
)% |
|
|
5,615 |
|
|
|
6,030 |
|
|
(6.9 |
)% |
|
Direct operating expenses |
|
85,512 |
|
|
|
85,654 |
|
|
(0.2 |
)% |
|
|
162,407 |
|
|
|
163,978 |
|
|
(1.0 |
)% |
|
Depreciation and amortization |
|
5,014 |
|
|
|
4,835 |
|
|
3.7 |
% |
|
|
9,949 |
|
|
|
9,779 |
|
|
1.7 |
% |
|
Corporate expenses |
|
6,482 |
|
|
|
6,962 |
|
|
(6.9 |
)% |
|
|
11,699 |
|
|
|
12,307 |
|
|
(4.9 |
)% |
|
Stock-based compensation |
|
8,325 |
|
|
|
2,106 |
|
|
295.3 |
% |
|
|
11,195 |
|
|
|
3,878 |
|
|
188.7 |
% |
|
Transaction and business realignment costs |
|
1,594 |
|
|
|
311 |
|
|
412.5 |
% |
|
|
3,038 |
|
|
|
603 |
|
|
403.8 |
% |
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
32,638 |
|
|
|
26,240 |
|
|
24.4 |
% |
|
|
34,256 |
|
|
|
34,727 |
|
|
(1.4 |
)% |
|
Net loss (gain) on sale and retirement of assets |
|
30 |
|
|
|
(49 |
) |
|
(161.2 |
)% |
|
|
44 |
|
|
|
(341 |
) |
|
(112.9 |
)% |
|
Total operating costs and expenses |
|
139,595 |
|
|
|
126,059 |
|
|
10.7 |
% |
|
|
232,588 |
|
|
|
224,931 |
|
|
3.4 |
% |
|
Operating loss |
|
(21,370 |
) |
|
|
(4,828 |
) |
|
342.6 |
% |
|
|
(14,730 |
) |
|
|
(590 |
) |
|
2,396.6 |
% |
| Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
9,212 |
|
|
|
9,314 |
|
|
(1.1 |
)% |
|
|
18,243 |
|
|
|
18,872 |
|
|
(3.3 |
)% |
|
Gain on repurchases of debt |
|
(3 |
) |
|
|
(44 |
) |
|
(93.2 |
)% |
|
|
(3 |
) |
|
|
(819 |
) |
|
(99.6 |
)% |
|
Other income, net |
|
(546 |
) |
|
|
(4,878 |
) |
|
(88.8 |
)% |
|
|
(4,697 |
) |
|
|
(5,904 |
) |
|
(20.4 |
)% |
|
Loss from operations before tax |
|
(30,033 |
) |
|
|
(9,220 |
) |
|
225.7 |
% |
|
|
(28,273 |
) |
|
|
(12,739 |
) |
|
121.9 |
% |
| Income tax provision
(benefit) |
|
18,825 |
|
|
|
(6,520 |
) |
|
388.7 |
% |
|
|
19,032 |
|
|
|
(8,098 |
) |
|
335.0 |
% |
| Net loss |
$ |
(48,858 |
) |
|
$ |
(2,700 |
) |
|
1,709.6 |
% |
|
$ |
(47,305 |
) |
|
$ |
(4,641 |
) |
|
919.3 |
% |
** not meaningful
The following table presents Net revenue and
Adjusted Operating Income by segment, for the three and six months
ended June 30, 2024, and 2023, respectively (in thousands):
| |
Three Months EndedJune 30, |
|
|
|
Six Months EndedJune 30, |
|
|
| |
(Unaudited) |
|
|
|
(Unaudited) |
|
|
| |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Subscription Digital Marketing Solutions |
$ |
18,515 |
|
$ |
21,268 |
|
(12.9 |
)% |
|
$ |
36,768 |
|
$ |
42,829 |
|
(14.2 |
)% |
| Digital Advertising |
|
41,524 |
|
|
41,126 |
|
1.0 |
% |
|
|
75,680 |
|
|
74,833 |
|
1.1 |
% |
|
Digital |
|
60,039 |
|
|
62,394 |
|
(3.8 |
)% |
|
|
112,448 |
|
|
117,662 |
|
(4.4 |
)% |
| Broadcast Advertising |
|
53,633 |
|
|
53,720 |
|
(0.2 |
)% |
|
|
99,088 |
|
|
99,643 |
|
(0.6 |
)% |
| Other |
|
4,553 |
|
|
5,117 |
|
(11.0 |
)% |
|
|
6,322 |
|
|
7,036 |
|
(10.1 |
)% |
| Net
revenue |
$ |
118,225 |
|
$ |
121,231 |
|
(2.5 |
)% |
|
$ |
217,858 |
|
$ |
224,341 |
|
(2.9 |
)% |
| Subscription Digital Marketing
Solutions |
$ |
5,417 |
|
$ |
6,025 |
|
(10.1 |
)% |
|
$ |
10,473 |
|
$ |
11,624 |
|
(9.9 |
)% |
| Digital Advertising |
|
11,009 |
|
|
14,344 |
|
(23.3 |
)% |
|
|
18,065 |
|
|
24,438 |
|
(26.1 |
)% |
|
Digital |
|
16,426 |
|
|
20,369 |
|
(19.4 |
)% |
|
|
28,538 |
|
|
36,062 |
|
(20.9 |
)% |
| Broadcast Advertising |
|
16,021 |
|
|
14,737 |
|
8.7 |
% |
|
|
26,206 |
|
|
23,295 |
|
12.5 |
% |
| Other |
|
266 |
|
|
471 |
|
(43.5 |
)% |
|
|
707 |
|
|
1,006 |
|
(29.7 |
)% |
| Adjusted Operating
Income |
$ |
32,713 |
|
$ |
35,577 |
|
(8.1 |
)% |
|
$ |
55,451 |
|
$ |
60,363 |
|
(8.1 |
)% |
The following table reconciles Net revenue to
Net revenue, excluding political revenue on a GAAP basis by segment
for the three and six months ended June 30, 2024, and 2023,
respectively (in thousands):
| |
Three Months EndedJune 30, |
|
|
|
Six Months EndedJune 30, |
|
|
| |
(Unaudited) |
|
|
|
(Unaudited) |
|
|
| |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Subscription Digital Marketing Solutions |
$ |
18,515 |
|
$ |
21,268 |
|
(12.9 |
)% |
|
$ |
36,768 |
|
$ |
42,829 |
|
(14.2 |
)% |
| Digital Advertising |
|
41,524 |
|
|
41,126 |
|
1.0 |
% |
|
|
75,680 |
|
|
74,833 |
|
1.1 |
% |
|
Digital |
|
60,039 |
|
|
62,394 |
|
(3.8 |
)% |
|
|
112,448 |
|
|
117,662 |
|
(4.4 |
)% |
| Broadcast Advertising |
|
53,633 |
|
|
53,720 |
|
(0.2 |
)% |
|
|
99,088 |
|
|
99,643 |
|
(0.6 |
)% |
| Other |
|
4,553 |
|
|
5,117 |
|
(11.0 |
)% |
|
|
6,322 |
|
|
7,036 |
|
(10.1 |
)% |
| Net
revenue |
$ |
118,225 |
|
$ |
121,231 |
|
(2.5 |
)% |
|
$ |
217,858 |
|
$ |
224,341 |
|
(2.9 |
)% |
| Subscription Digital Marketing
Solutions political revenue |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
— |
|
| Digital Advertising political
revenue |
|
147 |
|
|
46 |
|
219.6 |
% |
|
|
219 |
|
|
61 |
|
259.0 |
% |
| Broadcast Advertising
political revenue |
|
1,312 |
|
|
359 |
|
265.5 |
% |
|
|
2,300 |
|
|
557 |
|
312.9 |
% |
| Other political revenue |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
— |
|
| Political
revenue |
$ |
1,459 |
|
$ |
405 |
|
260.2 |
% |
|
$ |
2,519 |
|
$ |
618 |
|
307.6 |
% |
| Subscription Digital Marketing
Solutions net revenue (ex. political) |
$ |
18,515 |
|
$ |
21,268 |
|
(12.9 |
)% |
|
$ |
36,768 |
|
$ |
42,829 |
|
(14.2 |
)% |
| Digital Advertising net
revenue (ex. political) |
|
41,377 |
|
|
41,080 |
|
0.7 |
% |
|
|
75,461 |
|
|
74,772 |
|
0.9 |
% |
|
Digital net revenue (ex. political) |
|
59,892 |
|
|
62,348 |
|
(3.9 |
)% |
|
|
112,229 |
|
|
117,601 |
|
(4.6 |
)% |
| Broadcast Advertising
political net revenue (ex. political) |
|
52,321 |
|
|
53,361 |
|
(1.9 |
)% |
|
|
96,788 |
|
|
99,086 |
|
(2.3 |
)% |
| Other net revenue (ex.
political) |
|
4,553 |
|
|
5,117 |
|
(11.0 |
)% |
|
|
6,322 |
|
|
7,036 |
|
(10.1 |
)% |
| Net revenue (ex.
political) |
$ |
116,766 |
|
$ |
120,826 |
|
(3.4 |
)% |
|
$ |
215,339 |
|
$ |
223,723 |
|
(3.7 |
)% |
The following table reconciles on a GAAP basis
net loss, the most directly comparable financial measure calculated
and presented in accordance with GAAP, to Adjusted Net Income for
the three and six months ended June 30, 2024, and 2023,
respectively (in thousands, except per share data):
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
(Unaudited) |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net loss |
$ |
(48,858 |
) |
|
$ |
(2,700 |
) |
|
$ |
(47,305 |
) |
|
$ |
(4,641 |
) |
| Income tax provision
(benefit) |
|
18,825 |
|
|
|
(6,520 |
) |
|
|
19,032 |
|
|
|
(8,098 |
) |
| Loss from operations
before taxes |
|
(30,033 |
) |
|
|
(9,220 |
) |
|
|
(28,273 |
) |
|
|
(12,739 |
) |
|
Transaction and business realignment costs |
|
1,594 |
|
|
|
311 |
|
|
|
3,038 |
|
|
|
603 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
32,638 |
|
|
|
26,240 |
|
|
|
34,256 |
|
|
|
34,727 |
|
|
Net loss (gain) on sale and retirement of assets |
|
30 |
|
|
|
(49 |
) |
|
|
44 |
|
|
|
(341 |
) |
|
Gain on repurchases of debt |
|
(3 |
) |
|
|
(44 |
) |
|
|
(3 |
) |
|
|
(819 |
) |
|
Gain on sale of digital assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(839 |
) |
|
Gain on sale of investment |
|
— |
|
|
|
(5,210 |
) |
|
|
(4,009 |
) |
|
|
(5,210 |
) |
|
Change in fair value of investment |
|
(434 |
) |
|
|
(246 |
) |
|
|
(202 |
) |
|
|
(112 |
) |
|
Gain on insurance recoveries |
|
(278 |
) |
|
|
— |
|
|
|
(278 |
) |
|
|
(372 |
) |
|
Net income attributable to non-controlling interest, net of income
taxes |
|
(386 |
) |
|
|
(500 |
) |
|
|
(803 |
) |
|
|
(980 |
) |
| Adjusted net income
before income taxes |
|
3,128 |
|
|
|
11,282 |
|
|
|
3,770 |
|
|
|
13,918 |
|
|
Income tax provision(1) |
|
794 |
|
|
|
2,877 |
|
|
|
957 |
|
|
|
3,550 |
|
| Adjusted Net
Income |
$ |
2,334 |
|
|
$ |
8,405 |
|
|
$ |
2,813 |
|
|
$ |
10,368 |
|
| |
|
|
|
|
|
|
|
| Adjusted Net Income Per
Share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.15 |
|
|
$ |
0.49 |
|
|
$ |
0.18 |
|
|
$ |
0.60 |
|
|
Diluted |
$ |
0.14 |
|
|
$ |
0.45 |
|
|
$ |
0.16 |
|
|
$ |
0.58 |
|
| |
|
|
|
|
|
|
|
| Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
15,097 |
|
|
|
17,221 |
|
|
|
15,829 |
|
|
|
17,212 |
|
|
Diluted |
|
17,282 |
|
|
|
18,567 |
|
|
|
17,998 |
|
|
|
17,779 |
|
(1) Income tax provision for the three and six
months ended June 30, 2024 and 2023, respectively, was calculated
using the Company's statutory effective tax rate.
The following table reconciles on a GAAP basis
net 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 six months ended June 30, 2024,
and 2023, respectively (dollars in thousands):
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
(Unaudited) |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net loss |
$ |
(48,858 |
) |
|
$ |
(2,700 |
) |
|
$ |
(47,305 |
) |
|
$ |
(4,641 |
) |
|
Income tax provision (benefit) |
|
18,825 |
|
|
|
(6,520 |
) |
|
|
19,032 |
|
|
|
(8,098 |
) |
|
Interest expense, net |
|
9,212 |
|
|
|
9,314 |
|
|
|
18,243 |
|
|
|
18,872 |
|
|
Gain on repurchases of debt |
|
(3 |
) |
|
|
(44 |
) |
|
|
(3 |
) |
|
|
(819 |
) |
|
Depreciation and amortization |
|
5,014 |
|
|
|
4,835 |
|
|
|
9,949 |
|
|
|
9,779 |
|
|
Stock-based compensation |
|
8,325 |
|
|
|
2,106 |
|
|
|
11,195 |
|
|
|
3,878 |
|
|
Transaction and business realignment costs |
|
1,594 |
|
|
|
311 |
|
|
|
3,038 |
|
|
|
603 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
32,638 |
|
|
|
26,240 |
|
|
|
34,256 |
|
|
|
34,727 |
|
|
Other(a) |
|
(516 |
) |
|
|
(4,927 |
) |
|
|
(4,653 |
) |
|
|
(6,245 |
) |
| Adjusted
EBITDA |
$ |
26,231 |
|
|
$ |
28,615 |
|
|
$ |
43,752 |
|
|
$ |
48,056 |
|
|
Political Adjusted EBITDA |
|
(1,240 |
) |
|
|
(344 |
) |
|
|
(2,141 |
) |
|
|
(525 |
) |
| Adjusted EBITDA
(Excluding Political) |
$ |
24,991 |
|
|
$ |
28,271 |
|
|
$ |
41,611 |
|
|
$ |
47,531 |
|
|
Political Adjusted EBITDA |
|
1,240 |
|
|
|
344 |
|
|
|
2,141 |
|
|
|
525 |
|
|
Net cash paid for interest |
|
(606 |
) |
|
|
(326 |
) |
|
|
(18,244 |
) |
|
|
(19,054 |
) |
|
Capital expenditures |
|
(4,251 |
) |
|
|
(3,497 |
) |
|
|
(8,679 |
) |
|
|
(7,136 |
) |
|
Cash paid for taxes |
|
(672 |
) |
|
|
(813 |
) |
|
|
(684 |
) |
|
|
(817 |
) |
| Adjusted EBITDA Less
Interest, Capex and Taxes |
$ |
20,702 |
|
|
$ |
23,979 |
|
|
$ |
16,145 |
|
|
$ |
21,049 |
|
(a) Other includes net loss (gain) on sale and retirement of
assets and other (income) expense, 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 June 30, 2024 (dollars
in thousands):
| |
Three Months Ended |
|
Twelve Months Ended |
| |
(Unaudited) |
| |
September 30,2023 |
|
December 31,2023 |
|
March 31,2024 |
|
June 30,2024 |
|
June 30,2024 |
|
Net (loss) income |
$ |
(36,503 |
) |
|
$ |
(1,878 |
) |
|
$ |
1,553 |
|
|
$ |
(48,858 |
) |
|
$ |
(85,686 |
) |
| Income tax provision
(benefit) |
|
17,478 |
|
|
|
(15,522 |
) |
|
|
207 |
|
|
|
18,825 |
|
|
|
20,988 |
|
|
Interest expense, net |
|
9,343 |
|
|
|
9,034 |
|
|
|
9,031 |
|
|
|
9,212 |
|
|
|
36,620 |
|
|
Gain on repurchases of debt |
|
(430 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(433 |
) |
|
Depreciation and amortization |
|
4,717 |
|
|
|
4,704 |
|
|
|
4,935 |
|
|
|
5,014 |
|
|
|
19,370 |
|
|
Stock-based compensation |
|
2,350 |
|
|
|
1,805 |
|
|
|
2,870 |
|
|
|
8,325 |
|
|
|
15,350 |
|
|
Transaction and business realignment costs |
|
161 |
|
|
|
405 |
|
|
|
1,444 |
|
|
|
1,594 |
|
|
|
3,604 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
30,970 |
|
|
|
24,881 |
|
|
|
1,618 |
|
|
|
32,638 |
|
|
|
90,107 |
|
|
Other(a) |
|
(909 |
) |
|
|
1,349 |
|
|
|
(4,137 |
) |
|
|
(516 |
) |
|
|
(4,213 |
) |
| Adjusted
EBITDA |
$ |
27,177 |
|
|
$ |
24,778 |
|
|
$ |
17,521 |
|
|
$ |
26,231 |
|
|
$ |
95,707 |
|
(a) Other includes net (loss) 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 June 30,
2024, and 2023 (in thousands):
| |
Three Months Ended June
30, 2024 |
| |
(Unaudited) |
| |
Subscription Digital Marketing Solutions |
|
Digital Advertising |
|
Broadcast Advertising |
|
Other |
|
Operating income (loss) |
$ |
4,629 |
|
$ |
8,751 |
|
$ |
(15,440 |
) |
|
$ |
(685 |
) |
|
Depreciation and amortization |
|
608 |
|
|
266 |
|
|
2,807 |
|
|
|
32 |
|
|
Stock-based compensation |
|
180 |
|
|
208 |
|
|
169 |
|
|
|
4 |
|
|
Transaction and business realignment costs |
|
— |
|
|
— |
|
|
70 |
|
|
|
6 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
— |
|
|
1,784 |
|
|
28,385 |
|
|
|
909 |
|
|
Net loss on sale and retirement of assets |
|
— |
|
|
— |
|
|
30 |
|
|
|
— |
|
| Adjusted Operating
Income |
$ |
5,417 |
|
$ |
11,009 |
|
$ |
16,021 |
|
|
$ |
266 |
|
| |
Three Months Ended June
30, 2023 |
| |
(Unaudited) |
| |
Subscription Digital Marketing Solutions |
|
Digital Advertising |
|
Broadcast Advertising |
|
Other |
|
Operating income (loss) |
$ |
5,547 |
|
$ |
14,106 |
|
$ |
(5,724 |
) |
|
$ |
434 |
|
Depreciation and amortization |
|
327 |
|
|
168 |
|
|
3,382 |
|
|
|
33 |
|
Stock-based compensation |
|
151 |
|
|
70 |
|
|
218 |
|
|
|
4 |
|
Transaction and business realignment costs |
|
— |
|
|
— |
|
|
167 |
|
|
|
— |
|
Impairment of intangible assets, investments, and long-lived
assets |
|
— |
|
|
— |
|
|
16,743 |
|
|
|
— |
|
Net gain on sale and retirement of assets |
|
— |
|
|
— |
|
|
(49 |
) |
|
|
— |
| Adjusted Operating
Income |
$ |
6,025 |
|
$ |
14,344 |
|
$ |
14,737 |
|
|
$ |
471 |
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 six months ended June 30, 2024,
and 2023 (in thousands):
| |
Six Months Ended June
30, 2024 |
| |
(Unaudited) |
| |
Subscription Digital Marketing Solutions |
|
Digital Advertising |
|
Broadcast Advertising |
|
Other |
|
Operating income (loss) |
$ |
8,917 |
|
$ |
15,478 |
|
$ |
(9,958 |
) |
|
$ |
(287 |
) |
|
Depreciation and amortization |
|
1,222 |
|
|
447 |
|
|
5,671 |
|
|
|
65 |
|
|
Stock-based compensation |
|
334 |
|
|
356 |
|
|
358 |
|
|
|
8 |
|
|
Transaction and business realignment costs |
|
— |
|
|
— |
|
|
88 |
|
|
|
12 |
|
|
Impairment of intangible assets, investments, goodwill and
long-lived assets |
|
— |
|
|
1,784 |
|
|
30,003 |
|
|
|
909 |
|
|
Net loss on sale and retirement of assets |
|
— |
|
|
— |
|
|
44 |
|
|
|
— |
|
| Adjusted Operating
Income |
$ |
10,473 |
|
$ |
18,065 |
|
$ |
26,206 |
|
|
$ |
707 |
|
| |
Six Months Ended June
30, 2023 |
| |
(Unaudited) |
| |
Subscription Digital Marketing Solutions |
|
Digital Advertising |
|
Broadcast Advertising |
|
Other |
|
Operating income (loss) |
$ |
10,690 |
|
$ |
23,991 |
|
$ |
(9,318 |
) |
|
$ |
920 |
|
Depreciation and amortization |
|
655 |
|
|
332 |
|
|
6,982 |
|
|
|
69 |
|
Stock-based compensation |
|
279 |
|
|
115 |
|
|
382 |
|
|
|
6 |
|
Transaction and business realignment costs |
|
— |
|
|
— |
|
|
360 |
|
|
|
11 |
|
Impairment of intangible assets, investments, and long-lived
assets |
|
— |
|
|
— |
|
|
25,230 |
|
|
|
— |
|
Net gain on sale and retirement of assets |
|
— |
|
|
— |
|
|
(341 |
) |
|
|
— |
| Adjusted Operating
Income |
$ |
11,624 |
|
$ |
24,438 |
|
$ |
23,295 |
|
|
$ |
1,006 |
Townsquare Media (NYSE:TSQ)
Historical Stock Chart
From Nov 2024 to Dec 2024
Townsquare Media (NYSE:TSQ)
Historical Stock Chart
From Dec 2023 to Dec 2024
