June YTD 2022 Digital Revenue and Adjusted Operating Income 50% of Total

Net Leverage Declines to 4.65x

Raising 2022 Guidance

PURCHASE, N.Y., Aug. 2, 2022 /PRNewswire/ -- Townsquare Media, Inc. (NYSE: TSQ) ("Townsquare", the "Company," "we," "us," or "our") announced today its financial results for the second quarter ended June 30, 2022.

Townsquare Media, Inc.

"I am proud to share that the Townsquare Team delivered another quarter of strong revenue and profit growth, and in doing so, we achieved all-time record highs for both net revenue and Adjusted EBITDA. Our performance clearly demonstrates the strength and differentiation of our digital businesses and our legacy broadcast business. Townsquare's second quarter net revenue increased year-over-year by +14%, exceeding our guidance range, and Adjusted EBITDA increased +7% year-over-year, meeting our guidance range. In addition, our digital revenue growth accelerated from the first quarter (Q1 +16% year-over-year), with second quarter total digital revenue increasing +21% year-over-year. Our strong top-line growth, margin profile, and cash generation characteristics have contributed to the reduction of our net leverage, now at a historical low of 4.65x as of June 30th, including the repurchase and retirement of $19 million of our Senior Secured Notes at or below par in Q2," commented Bill Wilson, Chief Executive Officer of Townsquare Media, Inc. "We are also pleased to announce that we are raising our FY 2022 guidance following the close of the Cherry Creek acquisition on June 17th. Our updated full year guidance reflects the ongoing momentum of our business and the strength of our performance to date, fueled by our differentiated digital platform. As a Digital First Local Media Company focused principally on markets outside of the Top 50 in the United States, we have a resilient digital growth engine supported by subscription digital marketing solutions, with a large addressable market and limited competition. As we move forward, we expect double-digit digital net revenue growth to continue at strong margins, reaching our digital revenue target of at least $275 million in 2024. With half of our total revenue and profit coming from digital today, it is our belief that over time as digital continues to meaningfully grow, Townsquare should and will be afforded a sum-of the-parts valuation that our digital assets deserve."

Segment Reporting
We 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 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. The Company has presented segment information for the three and six months ended June 30, 2021 in conformity with the current period's segment information.

Second Quarter Highlights*

  • As compared to the second quarter of 2021:
    • Net revenue increased 13.6%
    • Net income decreased $5.2 million
    • Adjusted EBITDA increased 6.8%
    • Total Digital net revenue increased 20.7%
      • Subscription Digital Marketing Solutions ("Townsquare Interactive") net revenue increased 13.7%
      • Digital Advertising net revenue increased 25.4%
    • Total Digital Adjusted Operating Income increased 11.0%
      • Subscription Digital Marketing Solutions Adjusted Operating Income increased 9.8%
      • Digital Advertising Adjusted Operating Income increased 11.8%
    • Broadcast Advertising net revenue increased 1.0%
  • Diluted income per share was $0.24, and Adjusted Net Income per diluted share was $0.71
  • Townsquare Interactive added approximately 1,150 net subscribers
  • Repurchased aggregate $19.2 million of our 2026 Secured Senior Notes at or below par
  • Completed the acquisition of Cherry Creek Broadcasting LLC ("Cherry Creek") for $18.4 million, net of closing adjustments

Year to Date Highlights*

  • As compared to the six months ended June 30, 2021:
    • Net revenue increased 13.3%
    • Net income increased $3.7 million
    • Adjusted EBITDA increased 8.0%
    • Total Digital net revenue increased 18.4%
      • Subscription Digital Marketing Solutions net revenue increased 14.3%
      • Digital Advertising net revenue increased 21.4%
    • Total Digital Adjusted Operating Income increased 10.9%
      • Subscription Digital Marketing Solutions Adjusted Operating Income increased 8.6%
      • Digital Advertising Adjusted Operating Income increased 12.4%
    • Broadcast Advertising net revenue increased 4.0%
  • Townsquare Interactive added approximately 2,200 net subscribers

*See below for discussion of non-GAAP measures.

 

Guidance
For the third quarter of 2022, net revenue is expected to be between $120 million and $127 million and Adjusted EBITDA is expected to be between $30 million and $32 million.

For the full year 2022, net revenue guidance is raised to be between $465 million and $480 million and Adjusted EBITDA guidance is raised to be between $116 million and $121 million.

Quarter Ended June 30, 2022 Compared to the Quarter Ended June 30, 2021

Net Revenue
Net revenue for the three months ended June 30, 2022 increased $14.6 million, or 13.6%, as compared to the same period in 2021. Our Digital Advertising net revenue increased $7.5 million, or 25.4%, and our Subscription Digital Marketing Solutions net revenue increased $2.8 million, or 13.7%, as compared to the same period in 2021 due in part to the addition of approximately 1,150 additional net subscribers during the second quarter of 2022.

Our Other net revenue increased $3.7 million due to an increase in the number of live events held in the current period and our Broadcast Advertising net revenue increased $0.6 million, or 1.0%, as compared to the same period in 2021, due to increases in the purchase of new advertising by our clients.

Adjusted EBITDA
Adjusted EBITDA for the quarter ended June 30, 2022, increased $2.1 million, or 6.8%, to $32.4 million, as compared to $30.3 million in the same period last year. Adjusted EBITDA (Excluding Political) increased $1.4 million, or 4.8%, to $31.1 million, as compared to $29.6 million in the same period last year.

Net Income
Net income for the quarter ended June 30, 2022, decreased $5.2 million to $4.9 million, as compared to $10.1 million in the same period last year.

Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021

Net Revenue
Net revenue for the six months ended June 30, 2022, increased $26.1 million, or 13.3%, as compared to the same period in 2021. Our Digital Advertising net revenue increased $11.7 million, or 21.4% and our Subscription Digital Marketing Solutions net revenue increased $5.6 million, or 14.3% as compared to the same period in 2021 due in part to the addition of approximately 2,200 additional net subscribers during the six months ended June 30, 2022.

Our Other net revenue increased $4.7 million due to the increase in live events held during the period, as compared to the same period a year ago. Our Broadcast Advertising net revenue increased $4.1 million, or 4.0%, due to increases in the purchase of new advertising by our clients.

Adjusted EBITDA
Adjusted EBITDA for the six months ended June 30, 2022 increased $4.0 million, or 8.0% to $54.4 million, as compared to $50.4 million in the same period last year. Adjusted EBITDA (Excluding Political) increased $3.4 million, or 6.9%, to $52.8 million, as compared to $49.4 million in the same period last year.

Net Income
Net income for the six months ended June 30, 2022 increased $3.7 million, or 93.2%, to $7.7 million, as compared to $4.0 million in the same period last year.

Liquidity and Capital Resources
As of June 30, 2022, we had a total of $22.8 million of cash and cash equivalents and $530.8 million of outstanding indebtedness, representing 4.86x and 4.65x gross and net leverage, respectively, based on Adjusted EBITDA for the twelve months ended June 30, 2022, of $109.1 million.

The table below presents a summary, as of July 29, 2022, of our outstanding common stock.

Security


Number
Outstanding


Description

Class A common stock


12,876,711


One vote per share.

Class B common stock


815,296


10 votes per share.1

Class C common stock


3,461,341


No votes.1

Total


17,153,348



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 Call
Townsquare Media, Inc. will host a conference call to discuss certain second quarter 2022 financial results and 2022 guidance on Tuesday, August 2, 2022 at 8:00 a.m. Eastern Time. The conference call dial-in number is 1-877-407-0784 (U.S. & Canada) or 1-201-689-8560 (International) and the confirmation code is 13731436. 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 9, 2022. To access the replay, please dial 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (International) and enter confirmation code 13731436. 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 29,000 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 357 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 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 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, including the COVID-19 pandemic, 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 2021 Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 16, 2022, 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 Definitions
In 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 as operating income before the deduction of depreciation and amortization, stock-based compensation, corporate expenses, transaction costs, business realignment costs, impairment of goodwill, long-lived and intangible assets and net loss (gain) on sale and retirement of assets. We define Adjusted EBITDA as net income (loss) before the deduction of income taxes, interest expense, net, loss (gain) on extinguishment and modification of debt, transaction costs, depreciation and amortization, stock-based compensation, business realignment costs, impairment of long-lived assets, intangible assets and investments, change in fair value of investment, 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 (loss) before the deduction of transaction costs, business realignment costs, impairment of long-lived assets, intangible assets and investments, change in fair value of investment, net loss (gain) on sale and retirement of assets, loss (gain) on extinguishment and modification of debt, 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 June 30, 2022, divided by our Adjusted EBITDA for the twelve months ended June 30, 2022. 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 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, 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

 

TOWNSQUARE MEDIA, INC.

CONSOLIDATED BALANCE SHEETS

(in Thousands, Except Share and Per Share Data)

(unaudited)



June 30,
2022


December 31,
2021

ASSETS




Current assets:




   Cash and cash equivalents

$              22,825


$              50,505

Accounts receivable, net of allowance of $5,561 and $6,743, respectively

63,458


57,647

   Prepaid expenses and other current assets

12,205


12,086

Total current assets  

98,488


120,238

Property and equipment, net

109,944


106,717

Intangible assets, net

300,935


278,265

Goodwill

166,324


157,947

Investments

16,445


18,217

Operating lease right-of-use-assets

49,910


42,996

Other assets

2,067


1,437

Restricted cash

494


494

Total assets  

$            744,607


$            726,311

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




  Accounts payable

$                8,783


$                5,676

  Deferred revenue

10,435


10,208

  Accrued compensation and benefits

9,453


14,411

  Accrued expenses and other current liabilities

25,684


22,512

  Operating lease liabilities, current

8,651


7,396

  Accrued interest

15,197


15,754

Total current liabilities

78,203


75,957

Long-term debt, net of deferred finance costs of $7,348 and $8,479, respectively

523,418


541,521

Deferred tax liability

22,395


20,081

Operating lease liability, net of current portion

44,151


38,743

Other long-term liabilities

16,965


425

Total liabilities  

685,132


676,727

Stockholders' equity:




Class A common stock, par value $0.01 per share; 300,000,000 shares authorized; 12,876,711 and
12,573,654 shares issued and outstanding, respectively

129


126

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; 3,461,341 and
3,461,341 shares issued and outstanding, respectively

35


35

   Total common stock

172


169

   Treasury stock, at cost; 25,623 and zero shares of Class A common stock, respectively

(225)


   Additional paid-in capital

306,997


302,724

   Accumulated deficit

(250,017)


(256,635)

   Non-controlling interest  

2,548


3,326

Total stockholders' equity  

59,475


49,584

Total liabilities and stockholders' equity  

$            744,607


$            726,311

 

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in Thousands, Except Per Share Data)

(unaudited)



Three Months Ended 

June 30,


Six Months Ended 

June 30,


2022


2021


2022


2021

Net revenue

$       121,924


$         107,338


$      222,166


$         196,099

Operating costs and expenses:








Direct operating expenses, excluding depreciation, amortization, and stock-based
compensation

83,833


71,591


157,596


136,118

Depreciation and amortization

4,314


4,996


9,079


9,725

Corporate expenses

5,739


5,452


10,148


9,586

Stock-based compensation

839


894


1,708


1,956

Transaction and business realignment costs

824


456


1,276


5,361

Impairment of long-lived assets, intangible assets and investments

9,419


95


9,897


95

Net loss (gain) on sale and retirement of assets

89


34


(219)


627

    Total operating costs and expenses

105,057


83,518


189,485


163,468

    Operating income

16,867


23,820


32,681


32,631

Other expense (income):








Interest expense, net

10,044


9,809


20,071


19,964

(Gain) loss on repurchases, extinguishment and modification of debt

(108)



(108)


5,997

Other expense (income), net

806


(40)


2,394


(377)

    Income from operations before tax

6,125


14,051


10,324


7,047

Income tax provision

1,206


3,977


2,664


3,082

Net income

$           4,919


$           10,074


$          7,660


$             3,965









Net income attributable to:








     Controlling interests

$           4,394


$             9,432


$          6,618


$             2,883

     Non-controlling interests

$              525


$               642


$          1,042


$             1,082









Basic income per share:








    Attributable to common shares

$             0.26


$              0.58


$            0.39


$              0.14

    Attributable to participating shares

$               —


$              0.58


$              —


$              0.14









Diluted income per share

$             0.24


$              0.50


$            0.35


$              0.13









Weighted average shares outstanding:








     Basic attributable to common shares

16,986


16,087


16,891


17,187

     Basic attributable to participating shares


163



3,474

     Diluted

18,695


18,837


19,177


22,730

 

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in Thousands)

(unaudited)



Six Months Ended June 30,


2022


2021

Cash flows from operating activities:




Net income

$                 7,660


$                 3,965

Adjustments to reconcile net income to net cash provided by operating activities:




     Depreciation and amortization

9,079


9,725

     Amortization of deferred financing costs

855


674

     Non-cash lease income

(251)


(261)

     Net deferred taxes and other

2,314


2,841

     Provision for doubtful accounts

494


901

     Stock-based compensation expense

1,708


1,956

    (Gain) loss on repurchases, extinguishment and modification of debt

(108)


5,997

     Trade activity, net

(1,773)


(7,876)

     Impairment of long-lived assets, intangible assets and investments

9,897


95

     Unrealized loss on investment

2,172


     Content rights acquired

(19,320)


     Amortization of content rights

1,952


     Change in content rights liabilities

18,278


     Other

(283)


(147)

Changes in assets and liabilities, net of acquisitions:




Accounts receivable

(5,984)


2,799

Prepaid expenses and other assets

(507)


2,309

Accounts payable

1,401


88

Accrued expenses

(3,917)


(3,301)

Accrued interest

(556)


12,135

Other long-term liabilities

(106)


(729)

Net cash provided by operating activities - continuing operations 

23,005


31,171

Net cash used in operating activities - discontinued operations 


(33)

Net cash provided by operating activities

23,005


31,138

Cash flows from investing activities:




Payment for acquisition

(18,419)


Purchase of property and equipment

(7,627)


(4,839)

Purchase of investments

(100)


(278)

Purchase of digital assets

(4,997)


Proceeds from insurance recoveries

11


225

Proceeds from sale of assets and investment related transactions

639


839

Net cash used in investing activities

(30,493)


(4,053)

Cash flows from financing activities:




Repurchase of 2026 Notes

(18,850)


Repayment of term loans


(272,381)

Repurchase of 2023 Notes


(273,416)

Proceeds from the issuance of 2026 Notes


550,000

Prepayment fee on 2023 Notes


(4,443)

Deferred financing costs


(9,027)

Repurchase of Oaktree securities


(80,394)

Transaction costs related to Oaktree securities repurchase


(1,556)

Proceeds from stock options exercised

759


9,702

Repurchase of stock

(225)


(1,400)

Cash distribution to non-controlling interests

(1,820)


(2,216)

Repayments of capitalized obligations

(56)


(37)

      Net cash used in financing activities

(20,192)


(85,168)

Cash and cash equivalents and restricted cash:




      Net decrease in cash, cash equivalents and restricted cash

(27,680)


(58,083)

      Beginning of period

50,999


83,723

      End of period

$               23,319


$               25,640

 

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in Thousands)

(unaudited)



Six Months Ended 

June 30,


2022


2021

Supplemental Disclosure of Cash Flow Information:




 Cash payments:




Interest  

$           19,508


$             7,151

Income taxes  

859


484





Supplemental Disclosure of Non-cash Activities:




   Investments acquired in exchange for advertising(1)

$             1,500


$             6,100

   Property and equipment acquired in exchange for advertising(1)

519


1,642

   Accrued capital expenditures

1,517


183

   Accrued financing fees


150





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

$             5,036


$             5,243

Right-of-use assets obtained in exchange for operating lease obligations

5,211


1,662





Reconciliation of cash, cash equivalents and restricted cash




Cash and cash equivalents

$           22,825


$           25,146

Restricted cash

494


494


$           23,319


$           25,640


(1) Represents total advertising services provided by the Company in exchange for equity interests and property and equipment acquired during each of the six months ended June 30, 2022 and 2021, respectively.

 

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT

(in Thousands)

(unaudited)



Three Months Ended 

June 30,




Six Months Ended 

June 30,




2022


2021


% Change


2022


2021


% Change

Subscription Digital Marketing Solutions

$        22,983


$       20,220


13.7 %


$        44,833


$        39,217


14.3 %

Digital Advertising

37,198


29,655


25.4 %


66,437


54,731


21.4 %

Broadcast Advertising

56,975


56,422


1.0 %


105,180


101,108


4.0 %

Other

4,768


1,041


358.0 %


5,716


1,043


448.0 %

Net revenue

121,924


107,338


13.6 %


222,166


196,099


13.3 %

Subscription Digital Marketing Solutions Expenses

16,293


14,125


15.3 %


$        31,769


$        27,190


16.8 %

Digital Advertising expenses

26,104


19,731


32.3 %


47,115


37,543


25.5 %

Broadcast Advertising expenses

37,542


37,045


1.3 %


73,980


70,627


4.7 %

Other expenses

3,894


690


464.3 %


4,732


758


524.3 %

Direct operating expenses

83,833


71,591


17.1 %


157,596


136,118


15.8 %

Depreciation and amortization

4,314


4,996


(13.7) %


9,079


9,725


(6.6) %

Corporate expenses

5,739


5,452


5.3 %


10,148


9,586


5.9 %

Stock-based compensation

839


894


(6.2) %


1,708


1,956


(12.7) %

Transaction and business realignment costs

824


456


80.7 %


1,276


5,361


(76.2) %

Impairment of long-lived assets, intangible
assets and investments

9,419


95


**


9,897


95


**

Net loss (gain) on sale and retirement of assets

89


34


161.8 %


(219)


627


**

    Total operating costs and expenses

105,057


83,518


25.8 %


189,485


163,468


15.9 %

    Operating income

16,867


23,820


(29.2) %


32,681


32,631


0.2 %

Other expense (income):












Interest expense, net

10,044


9,809


2.4 %


20,071


19,964


0.5 %

(Gain) loss on repurchases, extinguishment
and modification of debt

(108)



**


(108)


5,997


**

Other expense (income), net

806


(40)


**


2,394


(377)


**

    Income from operations before tax

6,125


14,051


(56.4) %


10,324


7,047


46.5 %

Income tax provision

1,206


3,977


(69.7) %


2,664


3,082


(13.6) %

Net income

$          4,919


$       10,074


(51.2) %


$          7,660


$          3,965


93.2 %


** not meaningful

 

The following table presents Net revenue and Adjusted Operating Income by segment, for the three and six months ended June 30, 2022, and 2021, respectively (in thousands):


Three Months Ended 

June 30,




Six Months Ended 

June 30,




(Unaudited)




(Unaudited)




2022


2021


% Change


2022


2021


% Change

Subscription Digital Marketing Solutions

$       22,983


$       20,220


13.7 %


$       44,833


$       39,217


14.3 %

Digital Advertising

37,198


29,655


25.4 %


66,437


54,731


21.4 %

Digital

60,181


49,875


20.7 %


111,270


93,948


18.4 %

Broadcast Advertising

56,975


56,422


1.0 %


105,180


101,108


4.0 %

Other

4,768


1,041


358.0 %


5,716


1,043


448.0 %

Net revenue

$     121,924


$     107,338


13.6 %


$     222,166


$     196,099


13.3 %

Subscription Digital Marketing Solutions

$         6,690


$         6,095


9.8 %


$       13,064


$       12,027


8.6 %

Digital Advertising

11,094


9,924


11.8 %


19,322


17,188


12.4 %

Digital

17,784


16,019


11.0 %


32,386


29,215


10.9 %

Broadcast Advertising

19,433


19,377


0.3 %


31,200


30,481


2.4 %

Other

874


351


149.0 %


984


285


245.3 %

Adjusted Operating Income

$       38,091


$       35,747


6.6 %


$       64,570


$       59,981


7.7 %



** not meaningful

 

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, 2022, and 2021, respectively (in thousands):


Three Months Ended 

June 30,




Six Months Ended 

June 30,




(Unaudited)




(Unaudited)




2022


2021


% Change


2022


2021


% Change

Subscription Digital Marketing Solutions

$       22,983


$       20,220


13.7 %


$       44,833


$       39,217


14.3 %

Digital Advertising

37,198


29,655


25.4 %


66,437


54,731


21.4 %

Digital

60,181


49,875


20.7 %


111,270


93,948


18.4 %

Broadcast Advertising

56,975


56,422


1.0 %


105,180


101,108


4.0 %

Other

4,768


1,041


358.0 %


5,716


1,043


448.0 %

Net revenue

$     121,924


$     107,338


13.6 %


$     222,166


$     196,099


13.3 %

Subscription Digital Marketing Solutions
political revenue



**




**

Digital Advertising political revenue

151



**


197



**

Broadcast Advertising political revenue

1,365


764


78.7 %


1,751


1,203


45.6 %

Other political revenue



**




**

Political revenue

$         1,516


$            764


98.4 %


$         1,948


$         1,203


61.9 %

Subscription Digital Marketing Solutions net
revenue (ex. political)

$       22,983


$       20,220


13.7 %


$       44,833


$       39,217


14.3 %

Digital Advertising net revenue (ex. political)

37,047


29,655


24.9 %


66,240


54,731


21.0 %

Digital net revenue (ex. political)

60,030


49,875


20.4 %


111,073


93,948


18.2 %

Broadcast Advertising political net revenue (ex.
political)

55,610


55,658


(0.1) %


103,429


99,905


3.5 %

Other net revenue (ex. political)

4,768


1,041


358.0 %


5,716


1,043


448.0 %

Net revenue (ex. political)

$     120,408


$     106,574


13.0 %


$     220,218


$     194,896


13.0 %


** not meaningful

 

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 six months ended June 30, 2022, and 2021, respectively (in thousands, except per share data):


Three Months Ended 

June 30,


Six Months Ended 

June 30,


(Unaudited)


2022


2021


2022


2021

Net income

$         4,919


$       10,074


$         7,660


$         3,965

Income tax provision

1,206


3,977


2,664


3,082

Income from operations before income taxes

6,125


14,051


10,324


7,047

Transaction and business realignment costs

824


456


1,276


5,361

Impairment of long-lived assets, intangible assets and investments

9,419


95


9,897


95

Net loss (gain) on sale and retirement of assets

89


34


(219)


627

(Gain) loss on repurchases, extinguishment and modification of debt

(108)



(108)


5,997

Change in fair value of investment

664



2,172


Gain on insurance recoveries



(11)


(225)

Net income attributable to non-controlling interest, net of income taxes

(525)


(642)


(1,042)


(1,082)

Adjusted net income before income taxes

16,488


13,994


22,289


17,820

   Income tax provision

3,246


3,961


5,751


7,794

Adjusted Net Income

$       13,242


$       10,033


$       16,538


$       10,026









Adjusted Net Income Per Share:








   Basic

$           0.78


$           0.62


$           0.98


$           0.58

   Diluted

$           0.71


$           0.53


$           0.86


$           0.44









Weighted average shares outstanding:








     Basic

16,986


16,087


16,891


17,187

     Diluted

18,695


18,837


19,177


22,730

 

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 six months ended June 30, 2022, and 2021, respectively (dollars in thousands):


Three Months Ended 

June 30,


Six Months Ended 

June 30,


(Unaudited)


2022


2021


2022


2021

Net income

$         4,919


$       10,074


$         7,660


$         3,965

Income tax provision

1,206


3,977


2,664


3,082

Interest expense, net

10,044


9,809


20,071


19,964

(Gain) loss on repurchases, extinguishment and modification of debt

(108)



(108)


5,997

Depreciation and amortization

4,314


4,996


9,079


9,725

Stock-based compensation

839


894


1,708


1,956

Transaction and business realignment costs

824


456


1,276


5,361

Impairment of long-lived assets, intangible assets and investments

9,419


95


9,897


95

Change in fair value of investment

664



2,172


Other (a)

231


(6)


3


250

Adjusted EBITDA

$       32,352


$       30,295


$       54,422


$       50,395

Political Adjusted EBITDA

(1,289)


(649)


(1,656)


(1,023)

Adjusted EBITDA (Excluding Political)

$       31,063


$       29,646


$       52,766


$       49,372

Political Adjusted EBITDA

1,289


649


1,656


1,023

Net cash paid for interest

(599)


(1)


(19,508)


(7,151)

Capital expenditures

(4,862)


(2,979)


(7,627)


(4,839)

Cash paid for taxes

(811)


(414)


(859)


(484)

Adjusted EBITDA Less Interest, Capex and Taxes

$       26,080


$       26,901


$       26,428


$       37,921


(a) Other includes net loss (gain) on sale and retirement of assets and other expense (income), net.

 

The following table reconciles net 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, 2022 (dollars in thousands):


Three Months Ended


Twelve
Months
Ended


(Unaudited)


September 30,
2021


December 31,
2021


March 31,
2022


June 30,
2022


June 30,
2022

Net income

$         12,894


$            1,925


$             2,741


$             4,919


$           22,479

Income tax provision

3,349


3,920


1,458


1,206


9,933

Interest expense, net

9,816


10,066


10,027


10,044


39,953

Gain on repurchases, extinguishment and
modification of debt




(108)


(108)

Depreciation and amortization

4,821


4,552


4,765


4,314


18,452

Stock-based compensation

877


885


869


839


3,470

Transaction and business realignment costs

486


(542)


452


824


1,220

Impairment of long-lived assets, intangible assets
and investments


1,818


478


9,419


11,715

Change in fair value of investment

(2,924)


2,792


1,508


664


2,040

Other (a)

(168)


151


(228)


$                231


(14)

Adjusted EBITDA

$         29,151


$          25,567


$           22,070


$           32,352


$         109,140


(a) Other includes net loss (gain) on sale and retirement of assets and other expense (income), 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 June 30, 2022, and 2021 (in thousands):


Three Months Ended June 30, 2022


(Unaudited)


Subscription
Digital
Marketing
Solutions


Digital
Advertising


Broadcast
Advertising


Other


Corporate
and Other
Reconciling
Items


Total

Operating income (loss)

$             6,244


$           10,934


$           10,152


$                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 long-lived assets,
intangible assets and
investments



5,951



3,468


9,419

Net loss on sale and retirement
of assets



89




89

Adjusted Operating Income

$             6,690


$           11,094


$           19,433


$                874


$                  —


$           38,091




Three Months Ended June 30, 2021


(Unaudited)


Subscription
Digital
Marketing
Solutions


Digital
Advertising


Broadcast
Advertising


Other


Corporate
and Other
Reconciling
Items


Total

Operating income (loss)

$             5,686


$             9,801


$           16,056


$                303


$            (8,026)


$           23,820

Depreciation and amortization

281


112


3,258


41


1,304


4,996

Corporate expenses





5,452


5,452

Stock-based compensation

128


11


63


3


689


894

Transaction and business
realignment costs




4


452


456

Impairment of long-lived and
intangible assets





95


95

Net loss on sale and retirement
of assets





34


34

Adjusted Operating Income

$             6,095


$             9,924


$           19,377


$                351


$                  —


$           35,747

 

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 June 30, 2022, and 2021 (in thousands):

 


Six Months Ended June 30, 2022


(Unaudited)


Subscription
Digital
Marketing
Solutions


Digital
Advertising


Broadcast
Advertising


Other


Corporate
and Other
Reconciling
Items


Total

Operating income (loss)

$           12,209


$           19,082


$           18,952


$                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 long-lived assets,
intangible assets and
investments



5,958


120


3,819


9,897

Net gain on sale and retirement
of assets



(183)



(36)


(219)

Adjusted Operating Income

$           13,064


$           19,322


$           31,200


$                984


$                  —


$           64,570




Six Months Ended June 30, 2021


(Unaudited)


Subscription
Digital
Marketing
Solutions


Digital
Advertising


Broadcast Advertising


Other


Corporate
and Other
Reconciling
Items


Total

Operating income (loss)

$           11,047


$           16,821


$           23,762


$                172


$          (19,171)


$           32,631

Depreciation and amortization

697


335


6,529


86


2,078


9,725

Corporate expenses





9,586


9,586

Stock-based compensation

283


32


190


9


1,442


1,956

Transaction and business
realignment costs




18


5,343


5,361

Impairment of long-lived and
intangible assets





95


95

Net loss on sale and retirement
of assets





627


627

Adjusted Operating Income

$           12,027


$           17,188


$           30,481


$                285


$                  —


$           59,981

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/townsquares-second-quarter-net-revenue-and-adjusted-ebitda-reach-all-time-high-with-net-revenue-14-and-adjusted-ebitda-7-year-over-year-301597440.html

SOURCE Townsquare Media, Inc.

Copyright 2022 PR Newswire

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