Q2 Digital Advertising Net Revenue Increased 11% YOY
Digital Represents 52% of 1H 2023 Total Net Revenue and
60% of 1H 2023 Total Adjusted Operating Income
“I am pleased to share that Townsquare’s digital growth engine continued to drive results in the second quarter, demonstrating its strength and resiliency, as we delivered second quarter net revenue and Adjusted EBITDA that met our previously issued guidance. In the second quarter, net revenue decreased -1% year-over-year to
The Company announced today that its Board of Directors approved a quarterly cash dividend of
Segment Reporting
We have three reportable operating segments, Subscription Digital Marketing Solutions,
Second Quarter Highlights*
- As compared to the second quarter of 2022:
- Net revenue decreased 0.6%
- Net income decreased
$7 .6 million - Adjusted EBITDA decreased 11.6%
- Total Digital net revenue increased 3.7%
- Subscription Digital Marketing Solutions (“Townsquare Interactive”) net revenue decreased 7.5%
Digital Advertising net revenue increased 10.6%
- Total Digital Adjusted Operating Income increased 14.7%
- Subscription Digital Marketing Solutions Adjusted Operating Income decreased 9.9%
- Digital Advertising Adjusted Operating Income increased 29.6%
Broadcast Advertising net revenue decreased 5.8%
- Diluted loss per share was
$0.19 , and Adjusted Net Income per diluted share was$0.18 - Repurchased
$0 .8 million of our 2026 Secured Senior Notes below par - Repurchased 1.6 million shares of the Company’s common stock for an average price of
$9.79 per share
Year-to-Date Highlights*
- As compared to the six months ended
June 30, 2022 :- Net revenue increased 1.0%
- Net income decreased
$12.3 million - Adjusted EBITDA decreased 11.7%
- Total Digital net revenue increased 5.8%
- Subscription Digital Marketing Solutions net revenue decreased 4.5%
Digital Advertising net revenue increased 12.7%
- Total Digital Adjusted Operating Income increased 11.5%
- Subscription Digital Marketing Solutions Adjusted Operating Income decreased 11.0%
- Digital Advertising Adjusted Operating Income increased 26.7%
Broadcast Advertising net revenue decreased 5.3%
- Repurchased an aggregate
$12 .9 million of our 2026 Secured Senior Notes below par - Repurchased 1.6 million shares of the Company’s common stock for an average price of
$9.79 per share
*See below for discussion of non-GAAP measures.
Guidance
For the third quarter of 2023, net revenue is expected to be between
For the full year 2023, net revenue guidance is reaffirmed to be between approximately
Quarter Ended
Net Revenue
Net revenue for the three months ended
Net (Loss) Income
For the quarter ended
Adjusted EBITDA
Adjusted EBITDA for the three months ended
Six Months Ended
Net Revenue
Net revenue for the six months ended
Net (Loss) Income
Net income for the six months ended
Adjusted EBITDA
Adjusted EBITDA for the six months ended
Liquidity and Capital Resources
As of
The table below presents a summary, as of
Security | Number Outstanding | Description | ||
Class A common stock | 13,788,537 | One vote per share. | ||
Class B common stock | 815,296 | 10 votes per share.1 | ||
Class C common stock | 1,961,341 | No votes.1 | ||
Total | 16,565,174 | |||
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 | ||||
Conference Call
A replay of the conference call will be available through
About
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
Forward-Looking Statements
Except 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
Non-GAAP Financial Measures and Definitions
In this press release, we refer to Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA (Excluding Political), Adjusted Net (Loss) Income and Adjusted Net Income Per Share which are financial measures that have not been prepared in accordance with generally accepted accounting principles in
We define Adjusted Operating Income as operating income before the deduction of depreciation and amortization, stock-based compensation, corporate expenses, transaction costs, business realignment costs, impairment of intangibles and long-lived assets, and net (gain) loss 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, impairment of intangible assets, investments and long-lived assets, 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, impairment of intangible assets, investments and long-lived assets, change in fair value of investment, net (gain) loss 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. 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
We use Adjusted Operating Income 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 (gain) loss 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, Adjusted EBITDA, Adjusted EBITDA (Excluding Political), Adjusted Net Income, Adjusted Net Income Per Share, and Net Leverage when determining discretionary bonuses.
Investor Relations
Claire Yenicay
(203) 900-5555
investors@townsquaremedia.com
CONSOLIDATED BALANCE SHEETS | |||||||
(in Thousands, Except Share and Per Share Data) | |||||||
(unaudited) | |||||||
2023 | 2022 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 49,598 | $ | 43,417 | |||
Accounts receivable, net of allowance of | 62,537 | 61,234 | |||||
Prepaid expenses and other current assets | 12,432 | 16,037 | |||||
Total current assets | 124,567 | 120,688 | |||||
Property and equipment, net | 111,105 | 113,846 | |||||
Intangible assets, net | 246,222 | 276,838 | |||||
161,481 | 161,385 | ||||||
Investments | 9,181 | 19,106 | |||||
Operating lease right-of-use assets | 49,692 | 50,962 | |||||
Other assets | 1,366 | 1,197 | |||||
Restricted cash | 499 | 496 | |||||
Total assets | $ | 704,113 | $ | 744,518 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 4,707 | $ | 4,127 | |||
Deferred revenue | 10,058 | 10,669 | |||||
Accrued compensation and benefits | 10,183 | 14,831 | |||||
Accrued expenses and other current liabilities | 25,900 | 17,876 | |||||
Operating lease liabilities, current | 9,003 | 9,008 | |||||
Accrued interest | 14,836 | 15,203 | |||||
Total current liabilities | 74,687 | 71,714 | |||||
Long-term debt, net of deferred finance costs of | 512,606 | 524,442 | |||||
Deferred tax liability | 10,275 | 18,748 | |||||
Operating lease liability, net of current portion | 44,113 | 45,107 | |||||
Other long-term liabilities | 13,053 | 15,428 | |||||
Total liabilities | 654,734 | 675,439 | |||||
Stockholders’ equity: | |||||||
Class A common stock, par value | 136 | 130 | |||||
Class B common stock, par value | 8 | 8 | |||||
Class C common stock, par value | 20 | 35 | |||||
Total common stock | 164 | 173 | |||||
(1,135 | ) | — | |||||
Additional paid-in capital | 303,720 | 309,645 | |||||
Accumulated deficit | (256,410 | ) | (244,298 | ) | |||
Non-controlling interest | 3,040 | 3,559 | |||||
Total stockholders’ equity | 49,379 | 69,079 | |||||
Total liabilities and stockholders’ equity | $ | 704,113 | $ | 744,518 |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in Thousands, Except Per Share Data) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net revenue | $ | 121,231 | $ | 121,924 | $ | 224,341 | $ | 222,166 | |||||||
Operating costs and expenses: | |||||||||||||||
Direct operating expenses, excluding depreciation, amortization, and stock-based compensation | 85,654 | 83,833 | 163,978 | 157,596 | |||||||||||
Depreciation and amortization | 4,835 | 4,314 | 9,779 | 9,079 | |||||||||||
Corporate expenses | 6,962 | 5,739 | 12,307 | 10,148 | |||||||||||
Stock-based compensation | 2,106 | 839 | 3,878 | 1,708 | |||||||||||
Transaction and business realignment costs | 311 | 824 | 603 | 1,276 | |||||||||||
Impairment of intangible assets, investments and long-lived assets | 26,240 | 9,419 | 34,727 | 9,897 | |||||||||||
Net (gain) loss on sale and retirement of assets | (49 | ) | 89 | (341 | ) | (219 | ) | ||||||||
Total operating costs and expenses | 126,059 | 105,057 | 224,931 | 189,485 | |||||||||||
Operating (loss) income | (4,828 | ) | 16,867 | (590 | ) | 32,681 | |||||||||
Other expense (income): | |||||||||||||||
Interest expense, net | 9,314 | 10,044 | 18,872 | 20,071 | |||||||||||
Gain on repurchases of debt | (44 | ) | (108 | ) | (819 | ) | (108 | ) | |||||||
Other (income) expense, net | (4,878 | ) | 806 | (5,904 | ) | 2,394 | |||||||||
(Loss) income from operations before tax | (9,220 | ) | 6,125 | (12,739 | ) | 10,324 | |||||||||
Income tax (benefit) provision | (6,520 | ) | 1,206 | (8,098 | ) | 2,664 | |||||||||
Net (loss) income | $ | (2,700 | ) | $ | 4,919 | $ | (4,641 | ) | $ | 7,660 | |||||
Net (loss) income attributable to: | |||||||||||||||
Controlling interests | $ | (3,200 | ) | $ | 4,394 | $ | (5,621 | ) | $ | 6,618 | |||||
Non-controlling interests | $ | 500 | $ | 525 | $ | 980 | $ | 1,042 | |||||||
Basic (loss) income per share | $ | (0.19 | ) | $ | 0.26 | $ | (0.33 | ) | $ | 0.39 | |||||
Diluted (loss) income per share | $ | (0.19 | ) | $ | 0.24 | $ | (0.33 | ) | $ | 0.35 | |||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 17,221 | 16,986 | 17,212 | 16,891 | |||||||||||
Diluted | 17,221 | 18,695 | 17,212 | 19,177 | |||||||||||
Cash dividend declared per share | $ | 0.1875 | $ | — | $ | 0.375 | $ | — |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in Thousands) | |||||||
(unaudited) | |||||||
Six Months Ended | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (4,641 | ) | $ | 7,660 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 9,779 | 9,079 | |||||
Amortization of deferred financing costs | 949 | 855 | |||||
Non-cash lease expense (income) | 52 | (251 | ) | ||||
Net deferred taxes and other | (8,473 | ) | 2,314 | ||||
Provision for doubtful accounts | 2,564 | 494 | |||||
Stock-based compensation expense | 3,878 | 1,708 | |||||
Gain on repurchases of debt | (819 | ) | (108 | ) | |||
Trade activity, net | (1,008 | ) | (1,773 | ) | |||
Impairment of intangible assets, investments and long-lived assets | 34,727 | 9,897 | |||||
Realized gain on sale of digital assets | (839 | ) | — | ||||
Gain on sale of investment | (5,210 | ) | — | ||||
Unrealized (gain) loss on investment | (112 | ) | 2,172 | ||||
Content rights acquired | — | (19,320 | ) | ||||
Amortization of content rights | 2,422 | 1,952 | |||||
Change in content rights liabilities | (659 | ) | 18,278 | ||||
Other | (596 | ) | (283 | ) | |||
Changes in assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (3,453 | ) | (5,984 | ) | |||
Prepaid expenses and other assets | 4,548 | (507 | ) | ||||
Accounts payable | 625 | 1,401 | |||||
Accrued expenses | (1,946 | ) | (3,917 | ) | |||
Accrued interest | (367 | ) | (556 | ) | |||
Other long-term liabilities | (15 | ) | (106 | ) | |||
Net cash provided by operating activities | 31,406 | 23,005 | |||||
Cash flows from investing activities: | |||||||
Payment for acquisition | — | (18,419 | ) | ||||
(7,136 | ) | (7,627 | ) | ||||
— | (100 | ) | |||||
— | (4,997 | ) | |||||
Proceeds from sale of digital assets | 2,975 | — | |||||
Proceeds from insurance recoveries | 372 | 11 | |||||
Proceeds from sale of assets and investment related transactions | 6,196 | 639 | |||||
Net cash provided by (used in) investing activities | 2,407 | (30,493 | ) | ||||
Cash flows from financing activities: | |||||||
Repurchases of 2026 Notes | (11,966 | ) | (18,850 | ) | |||
Dividend payments | (3,240 | ) | — | ||||
Proceeds from stock options exercised | 4,308 | 759 | |||||
Withholdings for shares issued under the ESPP | 430 | — | |||||
Repurchases of stock | (15,572 | ) | (225 | ) | |||
Cash distribution to non-controlling interests | (1,499 | ) | (1,820 | ) | |||
Repayments of capitalized obligations | (90 | ) | (56 | ) | |||
Net cash (used in) financing activities | (27,629 | ) | (20,192 | ) | |||
Cash and cash equivalents and restricted cash: | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 6,184 | (27,680 | ) | ||||
Beginning of period | 43,913 | 50,999 | |||||
End of period | $ | 50,097 | $ | 23,319 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) | |||||||
(in Thousands) | |||||||
(unaudited) | |||||||
Six Months Ended | |||||||
2023 | 2022 | ||||||
Supplemental Disclosure of Cash Flow Information: | |||||||
Cash payments: | |||||||
Interest | $ | 19,054 | $ | 19,508 | |||
Income taxes | 817 | 859 | |||||
Supplemental Disclosure of Non-cash Activities: | |||||||
Dividends declared, but not paid during the period | $ | 3,148 | $ | — | |||
Investments acquired in exchange for advertising(1) | — | 1,500 | |||||
Property and equipment acquired in exchange for advertising(1) | 253 | 519 | |||||
Accrued capital expenditures | 114 | 1,517 | |||||
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 | $ | 5,958 | $ | 5,036 | |||
Right-of-use assets obtained in exchange for operating lease obligations | 3,593 | 5,211 | |||||
Reconciliation of cash, cash equivalents and restricted cash | |||||||
Cash and cash equivalents | $ | 49,598 | $ | 22,825 | |||
Restricted cash | 499 | 494 | |||||
$ | 50,097 | $ | 23,319 |
(1) Represents total advertising services provided by the Company in exchange for property and equipment and equity interests acquired during each of the six months ended
CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT | |||||||||||||||||||||
(in Thousands) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||
Subscription Digital Marketing Solutions | $ | 21,268 | $ | 22,983 | (7.5 | )% | $ | 42,829 | $ | 44,833 | (4.5 | )% | |||||||||
41,126 | 37,172 | 10.6 | % | 74,833 | 66,390 | 12.7 | % | ||||||||||||||
53,720 | 57,001 | (5.8 | )% | 99,643 | 105,227 | (5.3 | )% | ||||||||||||||
Other | 5,117 | 4,768 | 7.3 | % | 7,036 | 5,716 | 23.1 | % | |||||||||||||
Net revenue | 121,231 | 121,924 | (0.6 | )% | 224,341 | 222,166 | 1.0 | % | |||||||||||||
Subscription Digital Marketing Solutions Expenses | 15,243 | 16,293 | (6.4 | )% | 31,205 | 31,769 | (1.8 | )% | |||||||||||||
26,782 | 26,102 | 2.6 | % | 50,395 | 47,109 | 7.0 | % | ||||||||||||||
38,983 | 37,544 | 3.8 | % | 76,348 | 73,986 | 3.2 | % | ||||||||||||||
Other expenses | 4,646 | 3,894 | 19.3 | % | 6,030 | 4,732 | 27.4 | % | |||||||||||||
Direct operating expenses | 85,654 | 83,833 | 2.2 | % | 163,978 | 157,596 | 4.0 | % | |||||||||||||
Depreciation and amortization | 4,835 | 4,314 | 12.1 | % | 9,779 | 9,079 | 7.7 | % | |||||||||||||
Corporate expenses | 6,962 | 5,739 | 21.3 | % | 12,307 | 10,148 | 21.3 | % | |||||||||||||
Stock-based compensation | 2,106 | 839 | 151.0 | % | 3,878 | 1,708 | 127.0 | % | |||||||||||||
Transaction and business realignment costs | 311 | 824 | (62.3 | )% | 603 | 1,276 | (52.7 | )% | |||||||||||||
Impairment of intangible assets, investments and long-lived assets | 26,240 | 9,419 | 178.6 | % | 34,727 | 9,897 | 250.9 | % | |||||||||||||
Net (gain) loss on sale and retirement of assets | (49 | ) | 89 | (155.1 | )% | (341 | ) | (219 | ) | 55.7 | % | ||||||||||
Total operating costs and expenses | 126,059 | 105,057 | 20.0 | % | 224,931 | 189,485 | 18.7 | % | |||||||||||||
Operating (loss) income | (4,828 | ) | 16,867 | (128.6) | % | (590 | ) | 32,681 | (101.8 | )% | |||||||||||
Other expense (income): | |||||||||||||||||||||
Interest expense, net | 9,314 | 10,044 | (7.3) | % | 18,872 | 20,071 | (6.0 | )% | |||||||||||||
Gain on repurchases of debt | (44 | ) | (108 | ) | (59.3) | % | (819 | ) | (108 | ) | ** | ||||||||||
Other (income) expense, net | (4,878 | ) | 806 | ** | (5,904 | ) | 2,394 | ** | |||||||||||||
(Loss) income from operations before tax | (9,220 | ) | 6,125 | (250.5) | % | (12,739 | ) | 10,324 | (223.4 | )% | |||||||||||
Income tax (benefit) provision | (6,520 | ) | 1,206 | (640.6) | % | (8,098 | ) | 2,664 | (404.0 | )% | |||||||||||
Net (loss) income | $ | (2,700 | ) | $ | 4,919 | (154.9) | % | $ | (4,641 | ) | $ | 7,660 | (160.6 | )% |
** not meaningful
The following table presents Net revenue and Adjusted Operating Income by segment, for the three and six months ended
Three Months Ended | Six Months Ended | ||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||
Subscription Digital Marketing Solutions | $ | 21,268 | $ | 22,983 | (7.5 | )% | $ | 42,829 | $ | 44,833 | (4.5 | )% | |||||||||
41,126 | 37,172 | 10.6 | % | 74,833 | 66,390 | 12.7 | % | ||||||||||||||
Digital | 62,394 | 60,155 | 3.7 | % | 117,662 | 111,223 | 5.8 | % | |||||||||||||
53,720 | 57,001 | (5.8 | )% | 99,643 | 105,227 | (5.3 | )% | ||||||||||||||
Other | 5,117 | 4,768 | 7.3 | % | 7,036 | 5,716 | 23.1 | % | |||||||||||||
Net revenue | $ | 121,231 | $ | 121,924 | (0.6 | )% | $ | 224,341 | $ | 222,166 | 1.0 | % | |||||||||
Subscription Digital Marketing Solutions | $ | 6,025 | $ | 6,690 | (9.9 | )% | $ | 11,624 | $ | 13,064 | (11.0 | )% | |||||||||
14,344 | 11,070 | 29.6 | % | 24,438 | 19,281 | 26.7 | % | ||||||||||||||
Digital | 20,369 | 17,760 | 14.7 | % | 36,062 | 32,345 | 11.5 | % | |||||||||||||
14,737 | 19,457 | (24.3 | )% | 23,295 | 31,241 | (25.4 | )% | ||||||||||||||
Other | 471 | 874 | (46.1 | )% | 1,006 | 984 | 2.2 | % | |||||||||||||
Adjusted Operating Income | $ | 35,577 | $ | 38,091 | (6.6 | )% | $ | 60,363 | $ | 64,570 | (6.5 | )% | |||||||||
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
Three Months Ended | Six Months Ended | ||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||
Subscription Digital Marketing Solutions | $ | 21,268 | $ | 22,983 | (7.5 | )% | $ | 42,829 | $ | 44,833 | (4.5 | )% | |||||||||
41,126 | 37,172 | 10.6 | % | 74,833 | 66,390 | 12.7 | % | ||||||||||||||
Digital | 62,394 | 60,155 | 3.7 | % | 117,662 | 111,223 | 5.8 | % | |||||||||||||
53,720 | 57,001 | (5.8 | )% | 99,643 | 105,227 | (5.3 | )% | ||||||||||||||
Other | 5,117 | 4,768 | 7.3 | % | 7,036 | 5,716 | 23.1 | % | |||||||||||||
Net revenue | $ | 121,231 | $ | 121,924 | (0.6 | )% | $ | 224,341 | $ | 222,166 | 1.0 | % | |||||||||
Subscription Digital Marketing Solutions political revenue | — | — | — | — | — | — | |||||||||||||||
46 | 151 | (69.5 | )% | 61 | 197 | (69.0 | )% | ||||||||||||||
359 | 1,365 | (73.7 | )% | 557 | 1,751 | (68.2 | )% | ||||||||||||||
Other political revenue | — | — | — | — | — | — | |||||||||||||||
Political revenue | $ | 405 | $ | 1,516 | (73.3 | )% | $ | 618 | $ | 1,948 | (68.3 | )% | |||||||||
Subscription Digital Marketing Solutions net revenue (ex. political) | $ | 21,268 | $ | 22,983 | (7.5 | )% | $ | 42,829 | $ | 44,833 | (4.5 | )% | |||||||||
41,080 | 37,021 | 11.0 | % | 74,772 | 66,193 | 13.0 | % | ||||||||||||||
Digital net revenue (ex. political) | 62,348 | 60,004 | 3.9 | % | 117,601 | 111,026 | 5.9 | % | |||||||||||||
53,361 | 55,636 | (4.1 | )% | 99,086 | 103,476 | (4.2 | )% | ||||||||||||||
Other net revenue (ex. political) | 5,117 | 4,768 | 7.3 | % | 7,036 | 5,716 | 23.1 | % | |||||||||||||
Net revenue (ex. political) | $ | 120,826 | $ | 120,408 | 0.3 | % | $ | 223,723 | $ | 220,218 | 1.6 | % |
** not meaningful
The following table reconciles on a GAAP basis net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted Net Income for the three and six months ended
Three Months Ended | Six Months Ended | ||||||||||||||
(Unaudited) | |||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net (loss) income | $ | (2,700 | ) | $ | 4,919 | $ | (4,641 | ) | $ | 7,660 | |||||
Income tax (benefit) provision | (6,520 | ) | 1,206 | (8,098 | ) | 2,664 | |||||||||
(Loss) Income from operations before taxes | (9,220 | ) | 6,125 | (12,739 | ) | 10,324 | |||||||||
Transaction and business realignment costs | 311 | 824 | 603 | 1,276 | |||||||||||
Impairment of intangible assets, investments and long-lived assets | 26,240 | 9,419 | 34,727 | 9,897 | |||||||||||
Net (gain) loss on sale and retirement of assets | (49 | ) | 89 | (341 | ) | (219 | ) | ||||||||
Gain on repurchases of debt | (44 | ) | (108 | ) | (819 | ) | (108 | ) | |||||||
Gain on sale of digital assets | — | — | (839 | ) | — | ||||||||||
Gain on sale of investments | (5,210 | ) | — | (5,210 | ) | — | |||||||||
Change in fair value of investment | (246 | ) | 664 | (112 | ) | 2,172 | |||||||||
Gain on insurance recoveries | — | — | (372 | ) | (11 | ) | |||||||||
Net income attributable to non-controlling interest, net of income taxes | (500 | ) | (525 | ) | (980 | ) | (1,042 | ) | |||||||
Adjusted net income before income taxes | 11,282 | 16,488 | 13,918 | 22,289 | |||||||||||
Income tax provision | 7,978 | 3,246 | 8,847 | 5,751 | |||||||||||
Adjusted Net Income | $ | 3,304 | $ | 13,242 | $ | 5,071 | $ | 16,538 | |||||||
Adjusted Net Income Per Share: | |||||||||||||||
Basic | $ | 0.19 | $ | 0.78 | $ | 0.29 | $ | 0.98 | |||||||
Diluted | $ | 0.18 | $ | 0.71 | $ | 0.29 | $ | 0.86 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 17,221 | 16,986 | 17,212 | 16,891 | |||||||||||
Diluted | 18,567 | 18,695 | 17,779 | 19,177 | |||||||||||
The following table reconciles on a GAAP basis net (loss) income, 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
Three Months Ended | Six Months Ended | ||||||||||||||
(Unaudited) | |||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net (loss) income | $ | (2,700 | ) | $ | 4,919 | $ | (4,641 | ) | $ | 7,660 | |||||
Income tax (benefit) provision | (6,520 | ) | 1,206 | (8,098 | ) | 2,664 | |||||||||
Interest expense, net | 9,314 | 10,044 | 18,872 | 20,071 | |||||||||||
Gain on repurchases of debt | (44 | ) | (108 | ) | (819 | ) | (108 | ) | |||||||
Depreciation and amortization | 4,835 | 4,314 | 9,779 | 9,079 | |||||||||||
Stock-based compensation | 2,106 | 839 | 3,878 | 1,708 | |||||||||||
Transaction and business realignment costs | 311 | 824 | 603 | 1,276 | |||||||||||
Impairment of intangible assets, investments and long-lived assets | 26,240 | 9,419 | 34,727 | 9,897 | |||||||||||
Other (a) | (4,927 | ) | 895 | (6,245 | ) | 2,175 | |||||||||
Adjusted EBITDA | $ | 28,615 | $ | 32,352 | $ | 48,056 | $ | 54,422 | |||||||
Political Adjusted EBITDA | (344 | ) | (1,289 | ) | (525 | ) | (1,656 | ) | |||||||
Adjusted EBITDA (Excluding Political) | $ | 28,271 | $ | 31,063 | $ | 47,531 | $ | 52,766 | |||||||
Political Adjusted EBITDA | 344 | 1,289 | 525 | 1,656 | |||||||||||
Net cash paid for interest | (326 | ) | (599 | ) | (19,054 | ) | (19,508 | ) | |||||||
Capital expenditures | (3,497 | ) | (4,862 | ) | (7,136 | ) | (7,627 | ) | |||||||
Cash paid for taxes | (813 | ) | (811 | ) | (817 | ) | (859 | ) | |||||||
Adjusted EBITDA Less Interest, Capex and Taxes | $ | 23,979 | $ | 26,080 | $ | 21,049 | $ | 26,428 |
(a) Other includes net (gain) loss on sale and retirement of assets and other (income) expense, net.
The following table reconciles net income (loss), 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
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
(Unaudited) | |||||||||||||||||||
2022 | 2022 | 2023 | 2023 | 2023 | |||||||||||||||
Net income (loss) | $ | 2,798 | $ | 3,932 | $ | (1,941 | ) | $ | (2,700 | ) | $ | 2,089 | |||||||
Income tax provision (benefit) | 2,275 | (5,503 | ) | (1,578 | ) | (6,520 | ) | (11,326 | ) | ||||||||||
Interest expense, net | 9,967 | 9,790 | 9,558 | 9,314 | 38,629 | ||||||||||||||
Gain on repurchases of debt | — | — | (775 | ) | (44 | ) | (819 | ) | |||||||||||
Depreciation and amortization | 4,467 | 5,498 | 4,944 | 4,835 | 19,744 | ||||||||||||||
Stock-based compensation | 722 | 1,367 | 1,772 | 2,106 | 5,967 | ||||||||||||||
Transaction and business realignment costs | 1,004 | 2,168 | 292 | 311 | 3,775 | ||||||||||||||
Impairment of intangible assets, investments and long-lived assets | 10,300 | 10,917 | 8,487 | 26,240 | 55,944 | ||||||||||||||
Other (a) | (627 | ) | 221 | (1,318 | ) | (4,927 | ) | (6,651 | ) | ||||||||||
Adjusted EBITDA | $ | 30,906 | $ | 28,390 | $ | 19,441 | $ | 28,615 | $ | 107,352 |
(a) Other includes net (gain) loss on sale and retirement of assets and other (income) expense, net.
The following tables reconcile Operating income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted Operating Income by segment for the three months ended
Three Months Ended | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Subscription Digital Marketing Solutions | Other | Corporate and Other Reconciling Items | Total | ||||||||||||||||||||
Operating income (loss) | $ | 5,547 | $ | 14,106 | $ | (5,724 | ) | $ | 434 | $ | (19,191 | ) | $ | (4,828 | ) | ||||||||
Depreciation and amortization | 327 | 168 | 3,382 | 33 | 925 | 4,835 | |||||||||||||||||
Corporate expenses | — | — | — | — | 6,962 | 6,962 | |||||||||||||||||
Stock-based compensation | 151 | 70 | 218 | 4 | 1,663 | 2,106 | |||||||||||||||||
Transaction and business realignment costs | — | — | 167 | — | 144 | 311 | |||||||||||||||||
Impairment of intangible assets, investments and long-lived assets | — | — | 16,743 | — | 9,497 | 26,240 | |||||||||||||||||
Net gain on sale and retirement of assets | — | — | (49 | ) | — | — | (49 | ) | |||||||||||||||
Adjusted Operating Income | $ | 6,025 | $ | 14,344 | $ | 14,737 | $ | 471 | $ | — | $ | 35,577 |
Three Months Ended | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Subscription Digital Marketing Solutions | Other | Corporate and Other Reconciling Items | Total | ||||||||||||||||||||
Operating income (loss) | $ | 6,244 | $ | 10,910 | $ | 10,176 | $ | 816 | $ | (11,279 | ) | $ | 16,867 | ||||||||||
Depreciation and amortization | 313 | 145 | 3,157 | 49 | 650 | 4,314 | |||||||||||||||||
Corporate expenses | — | — | — | — | 5,739 | 5,739 | |||||||||||||||||
Stock-based compensation | 133 | 15 | 84 | 3 | 604 | 839 | |||||||||||||||||
Transaction and business realignment costs | — | — | — | 6 | 818 | 824 | |||||||||||||||||
Impairment of intangible assets, investments and long-lived assets | — | — | 5,951 | — | 3,468 | 9,419 | |||||||||||||||||
Net loss on sale and retirement of assets | — | — | 89 | — | — | 89 | |||||||||||||||||
Adjusted Operating Income | $ | 6,690 | $ | 11,070 | $ | 19,457 | $ | 874 | $ | — | $ | 38,091 | |||||||||||
The following tables reconcile Operating income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted Operating Income by segment for the six months ended
Six Months Ended | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Subscription Digital Marketing Solutions | Other | Corporate and Other Reconciling Items | Total | ||||||||||||||||||||
Operating income (loss) | $ | 10,690 | $ | 23,991 | $ | (9,318 | ) | $ | 920 | $ | (26,873 | ) | $ | (590 | ) | ||||||||
Depreciation and amortization | 655 | 332 | 6,982 | 69 | 1,741 | 9,779 | |||||||||||||||||
Corporate expenses | — | — | — | — | 12,307 | 12,307 | |||||||||||||||||
Stock-based compensation | 279 | 115 | 382 | 6 | 3,096 | 3,878 | |||||||||||||||||
Transaction and business realignment costs | — | — | 360 | 11 | 232 | 603 | |||||||||||||||||
Impairment of intangible assets, investments and long-lived assets | — | — | 25,230 | — | 9,497 | 34,727 | |||||||||||||||||
Net gain on sale and retirement of assets | — | — | (341 | ) | — | — | (341 | ) | |||||||||||||||
Adjusted Operating Income | $ | 11,624 | $ | 24,438 | $ | 23,295 | $ | 1,006 | $ | — | $ | 60,363 |
Six Months Ended | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Subscription Digital Marketing Solutions | Other | Corporate and Other Reconciling Items | Total | ||||||||||||||||||||
Operating income (loss) | $ | 12,209 | $ | 19,041 | $ | 18,993 | $ | 759 | $ | (18,321 | ) | $ | 32,681 | ||||||||||
Depreciation and amortization | 590 | 210 | 6,302 | 87 | 1,890 | 9,079 | |||||||||||||||||
Corporate expenses | — | — | — | — | 10,148 | 10,148 | |||||||||||||||||
Stock-based compensation | 265 | 30 | 171 | 6 | 1,236 | 1,708 | |||||||||||||||||
Transaction and business realignment costs | — | — | — | 12 | 1,264 | 1,276 | |||||||||||||||||
Impairment of intangible assets, investments and long-lived assets | — | — | 5,958 | 120 | 3,819 | 9,897 | |||||||||||||||||
Net gain on sale and retirement of assets | — | — | (183 | ) | — | (36 | ) | (219 | ) | ||||||||||||||
Adjusted Operating Income | $ | 13,064 | $ | 19,281 | $ | 31,241 | $ | 984 | $ | — | $ | 64,570 |
Source:
2023 GlobeNewswire, Inc., source