WHICH DEMONSTRATE ONGOING STRENGTH OF ITS DIGITAL FIRST STRATEGY
Q1 Digital Advertising Net Revenue Increased 15.4% YOY
Digital Revenue Represents 54% of Q1 Total Net Revenue
Purchase, NY – May 10, 2023 - Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare”, the "Company," "we," "us," or "our") announced today its financial results for the first quarter ended March 31, 2023.
“I am pleased to share that Townsquare’s first quarter results exceeded our previously issued guidance for both net revenue and Adjusted EBITDA, due primarily to the continued strength of our digital and local advertising platform and solutions. In the first quarter, net revenue increased +3% year-over-year to $103 million, and Adjusted EBITDA decreased -12% year-over-year to $19 million. Although we faced the same headwinds that have impacted the entire media sector, our first quarter results validate our Digital First Local Media strategy, with a focus exclusively on local markets outside of the Top 50. Digital Advertising was once again our largest driver of growth, increasing net revenue by +15% year-over-year in the first quarter. In total, first quarter Digital net revenue increased +8% year-over-year (representing 54% of our total Q1 net revenue) and total Digital Adjusted Operating Income increased +8% year-over year (representing 63% of our total Q1 Adjusted Operating Income),” commented Bill Wilson, Chief Executive Officer of Townsquare Media, Inc. “In the first quarter, we grew cash flow from operations to $9 million, due to the strong cash generation of many of our assets, and opportunistically repurchased more than $12 million of our Unsecured Senior Notes at a discount. We ended the quarter with a strong cash balance of $42 million, and maintained our all-time low net leverage multiple of 4.29x.”
Mr. Wilson continued, “Our growth engine has been and will continue to be our digital solutions. We believe that our Digital First business model and strategy position us to navigate the current macro-economic environment better than most, and that our revenue, profit and cash flow results will be among the best in the local media industry, particularly when compared to 2019 pre-COVID financials given our growth in revenue and profit since 2019. Our confidence is directly tied to the Townsquare team’s efforts and talent, as well as our large, growing, and profitable digital platform which contributes more than half of Townsquare’s total net revenue and profit.”
The Company announced today that its Board of Directors approved a quarterly cash dividend of $0.1875 per share. The dividend will be payable on August 1, 2023 to shareholders of record as of the close of business on June 30, 2023.
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, 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.
1
First Quarter Highlights*
•As compared to the first quarter of 2022:
•Net revenue increased 2.9%
•Net income decreased $4.7 million
•Adjusted EBITDA decreased 11.9%
•Total Digital net revenue increased 8.2%
•Subscription Digital Marketing Solutions (“Townsquare Interactive”) net revenue decreased 1.3%
•Digital Advertising net revenue increased 15.4%
•Total Digital Adjusted Operating Income increased 7.6%
•Subscription Digital Marketing Solutions Adjusted Operating Income decreased 12.2%
•Digital Advertising Adjusted Operating Income increased 22.9%
•Broadcast Advertising net revenue decreased 4.8%
•Diluted loss per share was $(0.14), and Adjusted Net Income per diluted share was $0.08
•Repurchased aggregate $12.2 million of our 2026 Secured Senior Notes below par
*See below for discussion of non-GAAP measures.
Guidance
For the second quarter of 2023, net revenue is expected to be between $120 million and $122 million (-1.6% to +0.1% as compared to the prior year), and Adjusted EBITDA is expected to be between $28 million and $29 million.
For the full year 2023, net revenue guidance is reaffirmed to be between approximately $450 million and $470 million (-2.8% to +1.5% as compared to the prior year), and Adjusted EBITDA guidance is reaffirmed to be between approximately $100 million and $110 million.
Quarter Ended March 31, 2023 Compared to the Quarter Ended March 31, 2022
Net Revenue
Net revenue for the three months ended March 31, 2023 increased $2.9 million, or 2.9%, to $103.1 million as compared to $100.2 million in the same period in 2022. Digital Advertising net revenue increased $4.5 million, or 15.4%, and Subscription Digital Marketing Solutions net revenue decreased $0.3 million, or 1.3%, as compared to the same period in 2022. Broadcast Advertising net revenue decreased $2.3 million, or 4.8%, as compared to the same period in 2022. Other net revenue increased $1.0 million due to an increase in the number of live events. Excluding political revenue of $0.2 million and $0.4 million for the three months ended March 31, 2023 and 2022, respectively, net revenue increased $3.1 million, or 3.1%, to $102.9 million, Digital Advertising net revenue increased $4.5 million, or 15.5%, to $33.7 million, and Broadcast Advertising net revenue decreased $2.1 million, or 4.4%, to $45.7 million.
Net Loss
For the quarter ended March 31, 2023, we reported a net loss of $1.9 million, as compared to net income of $2.7 million in the same period last year, primarily due to non-cash impairment charges to our FCC licenses. Adjusted Net Income decreased $2.3 million, primarily due to a $4.6 million increase in direct operating expenses to support the growth of our digital segments and higher compensation, partially offset by a $2.9 million increase in net revenue.
Adjusted EBITDA
Adjusted EBITDA for the three months ended March 31, 2023 decreased $2.6 million, or 11.9%, to $19.4 million, as compared to $22.1 million in the same period last year. Adjusted EBITDA (Excluding Political) decreased $2.4 million, or 11.3%, to $19.3 million, as compared to $21.7 million in the same period last year.
Liquidity and Capital Resources
As of March 31, 2023, we had a total of $41.8 million of cash and cash equivalents and $518.6 million of outstanding indebtedness, representing 4.67x and 4.29x gross and net leverage, respectively, based on Adjusted EBITDA for the twelve months ended March 31, 2023, of $111.1 million.
The table below presents a summary, as of May 5, 2023, of our outstanding common stock.
2
Security
Number Outstanding
Description
Class A common stock
13,224,007
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
17,500,644
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 first quarter 2023 financial results and 2023 guidance on Wednesday, May 10, 2023 at 8:00 a.m. Eastern Time. The conference call dial-in number is 1-888-886-7786 (U.S. & Canada) or 1-416-764-8658 (International) and the confirmation code is 63395425. 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 May 17, 2023. To access the replay, please dial 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (International) and enter confirmation code 63395425. 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 30,400 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 356 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 2022 Annual Report on Form 10-K, for the year ended December 31, 2022, filed with the SEC on March 16, 2023, 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
3
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 (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 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 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 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 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 March 31, 2023, divided by our Adjusted EBITDA for the twelve months ended March 31, 2023. 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 (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
4
TOWNSQUARE MEDIA, INC.
CONSOLIDATED BALANCE SHEETS
(in Thousands, Except Share and Per Share Data)
(unaudited)
March 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
41,768
$
43,417
Accounts receivable, net of allowance of $5,469 and $5,946, respectively
55,288
61,234
Prepaid expenses and other current assets
12,476
16,037
Total current assets
109,532
120,688
Property and equipment, net
111,873
113,846
Intangible assets, net
264,629
276,838
Goodwill
161,481
161,385
Investments
18,971
19,106
Operating lease right-of-use assets
50,032
50,962
Other assets
1,038
1,197
Restricted cash
497
496
Total assets
$
718,053
$
744,518
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
4,035
$
4,127
Deferred revenue
11,933
10,669
Accrued compensation and benefits
8,335
14,831
Accrued expenses and other current liabilities
24,464
17,876
Operating lease liabilities, current
8,932
9,008
Accrued interest
5,945
15,203
Total current liabilities
63,644
71,714
Long-term debt, net of deferred finance costs of $5,761 and $6,324, respectively
512,844
524,442
Deferred tax liability
16,982
18,748
Operating lease liability, net of current portion
44,214
45,107
Other long-term liabilities
14,341
15,428
Total liabilities
652,025
675,439
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 300,000,000 shares authorized; 13,117,307 and 12,964,312 shares issued and outstanding, respectively
131
130
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
174
173
Additional paid-in capital
311,877
309,645
Accumulated deficit
(250,062)
(244,298)
Non-controlling interest
4,039
3,559
Total stockholders’ equity
66,028
69,079
Total liabilities and stockholders’ equity
$
718,053
$
744,518
5
TOWNSQUARE MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in Thousands, Except Per Share Data)
(unaudited)
Three Months Ended March 31,
2023
2022
Net revenue
$
103,110
$
100,242
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization, and stock-based compensation
78,324
73,763
Depreciation and amortization
4,944
4,765
Corporate expenses
5,345
4,409
Stock-based compensation
1,772
869
Transaction and business realignment costs
292
452
Impairment of intangible and long-lived assets
8,487
478
Net gain on sale and retirement of assets
(292)
(308)
Total operating costs and expenses
98,872
84,428
Operating income
4,238
15,814
Other expense (income):
Interest expense, net
9,558
10,027
Gain on repurchases of debt
(775)
—
Other (income) expense, net
(1,026)
1,588
(Loss) income from operations before tax
(3,519)
4,199
Income tax (benefit) provision
(1,578)
1,458
Net (loss) income
$
(1,941)
$
2,741
Net (loss) income attributable to:
Controlling interests
$
(2,421)
$
2,224
Non-controlling interests
$
480
$
517
Basic (loss) income per share
$
(0.14)
$
0.13
Diluted (loss) income per share
$
(0.14)
$
0.11
Weighted average shares outstanding:
Basic
17,204
16,796
Diluted
17,204
19,509
Cash dividend declared per share
$
0.1875
$
—
6
TOWNSQUARE MEDIA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in Thousands)
(unaudited)
Three Months Ended March 31,
2023
2022
Cash flows from operating activities:
Net (loss) income
$
(1,941)
$
2,741
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization
4,944
4,765
Amortization of deferred financing costs
425
418
Non-cash lease expense (income)
41
(155)
Net deferred taxes and other
(1,766)
1,284
Provision (benefit) for doubtful accounts
1,323
(287)
Stock-based compensation expense
1,772
869
Gain on repurchases of debt
(775)
—
Trade activity, net
(454)
(654)
Impairment of intangible and long-lived assets
8,487
478
Realized gain on sale of digital assets
(839)
—
Unrealized loss on investment
134
1,508
Content rights acquired
70
(9,635)
Amortization of content rights
1,200
803
Change in content rights liabilities
258
9,635
Other
(625)
(311)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
5,058
7,049
Prepaid expenses and other assets
4,465
735
Accounts payable
(22)
2,861
Accrued expenses
(3,134)
(4,056)
Accrued interest
(9,258)
(9,453)
Other long-term liabilities
(8)
(29)
Net cash provided by operating activities
9,355
8,566
Cash flows from investing activities:
Payment for acquisition
—
(1,650)
Purchase of property and equipment
(3,639)
(2,765)
Purchase of digital assets
—
(4,997)
Proceeds from sale of digital assets
2,975
—
Proceeds from insurance recoveries
—
11
Proceeds from sale of assets and investment related transactions
493
593
Net cash used in investing activities
(171)
(8,808)
Cash flows from financing activities:
Repurchases of 2026 Notes
(11,248)
—
Proceeds from stock options exercised
31
647
Withholdings for shares issued under the ESPP
430
—
Repayments of capitalized obligations
(45)
(24)
Net cash (used in) provided by financing activities
(10,832)
623
Cash and cash equivalents and restricted cash:
Net (decrease) increase in cash, cash equivalents and restricted cash
(1,648)
381
Beginning of period
43,913
50,999
End of period
$
42,265
$
51,380
7
TOWNSQUARE MEDIA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in Thousands)
(unaudited)
Three Months Ended March 31,
2023
2022
Supplemental Disclosure of Cash Flow Information:
Cash payments:
Interest
$
18,728
$
18,909
Income taxes
4
48
Supplemental Disclosure of Non-cash Activities:
Dividends declared, but not paid during the period
$
3,343
$
—
Investments acquired in exchange for advertising(1)
—
250
Property and equipment acquired in exchange for advertising(1)
98
211
Accrued capital expenditures
89
384
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
$
3,029
$
2,546
Right-of-use assets obtained in exchange for operating lease obligations
1,309
1,177
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents
$
41,768
$
50,886
Restricted cash
497
494
$
42,265
$
51,380
(1) Represents total advertising services provided by the Company in exchange for property and equipment and equity interests acquired during each of the three months ended March 31, 2023 and 2022, respectively.
8
TOWNSQUARE MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT
(in Thousands)
(unaudited)
Three Months Ended March 31,
2023
2022
% Change
Subscription Digital Marketing Solutions
$
21,561
$
21,850
(1.3)
%
Digital Advertising
33,707
29,218
15.4
%
Broadcast Advertising
45,923
48,226
(4.8)
%
Other
1,919
948
102.4
%
Net revenue
103,110
100,242
2.9
%
Subscription Digital Marketing Solutions Expenses
15,962
15,476
3.1
%
Digital Advertising expenses
23,613
21,007
12.4
%
Broadcast Advertising expenses
37,365
36,442
2.5
%
Other expenses
1,384
838
65.2
%
Direct operating expenses
78,324
73,763
6.2
%
Depreciation and amortization
4,944
4,765
3.8
%
Corporate expenses
5,345
4,409
21.2
%
Stock-based compensation
1,772
869
103.9
%
Transaction and business realignment costs
292
452
(35.4)
%
Impairment of intangible and long-lived assets
8,487
478
**
Net gain on sale and retirement of assets
(292)
(308)
(5.2)
%
Total operating costs and expenses
98,872
84,428
17.1
%
Operating income
4,238
15,814
(73.2)
%
Other expense (income):
Interest expense, net
9,558
10,027
(4.7)
%
Gain on repurchases of debt
(775)
—
**
Other (income) expense, net
(1,026)
1,588
(164.6)
%
(Loss) income from operations before tax
(3,519)
4,199
(183.8)
%
Income tax (benefit) provision
(1,578)
1,458
(208.2)
%
Net (loss) income
$
(1,941)
$
2,741
(170.8)
%
** not meaningful
9
The following table presents Net revenue and Adjusted Operating Income by segment, for the three months ended March 31, 2023, and 2022, respectively (in thousands):
Three Months Ended March 31,
(Unaudited)
2023
2022
% Change
Subscription Digital Marketing Solutions
$
21,561
$
21,850
(1.3)
%
Digital Advertising
33,707
29,218
15.4
%
Digital
55,268
51,068
8.2
%
Broadcast Advertising
45,923
48,226
(4.8)
%
Other
1,919
948
102.4
%
Net revenue
$
103,110
$
100,242
2.9
%
Subscription Digital Marketing Solutions
$
5,599
$
6,374
(12.2)
%
Digital Advertising
10,094
8,211
22.9
%
Digital
15,693
14,585
7.6
%
Broadcast Advertising
8,558
11,784
(27.4)
%
Other
535
110
386.4
%
Adjusted Operating Income
$
24,786
$
26,479
(6.4)
%
The following table reconciles Net revenue to Net revenue, excluding political revenue on a GAAP basis by segment for the three months ended March 31, 2023, and 2022, respectively (in thousands):
Three Months Ended March 31,
(Unaudited)
2023
2022
% Change
Subscription Digital Marketing Solutions
$
21,561
$
21,850
(1.3)
%
Digital Advertising
33,707
29,218
15.4
%
Digital
55,268
51,068
8.2
%
Broadcast Advertising
45,923
48,226
(4.8)
%
Other
1,919
948
102.4
%
Net revenue
$
103,110
$
100,242
2.9
%
Subscription Digital Marketing Solutions political revenue
—
—
**
Digital Advertising political revenue
15
46
(67.4)
%
Broadcast Advertising political revenue
198
386
(48.7)
%
Other political revenue
—
—
**
Political revenue
$
213
$
432
(50.7)
%
Subscription Digital Marketing Solutions net revenue (ex. political)
$
21,561
$
21,850
(1.3)
%
Digital Advertising net revenue (ex. political)
33,692
29,172
15.5
%
Digital net revenue (ex. political)
55,253
51,022
8.3
%
Broadcast Advertising political net revenue (ex. political)
45,725
47,840
(4.4)
%
Other net revenue (ex. political)
1,919
948
102.4
%
Net revenue (ex. political)
$
102,897
$
99,810
3.1
%
** not meaningful
10
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 months ended March 31, 2023, and 2022, respectively (in thousands, except per share data):
Three Months Ended March 31,
(Unaudited)
2023
2022
Net (loss) income
$
(1,941)
$
2,741
Income tax (benefit) provision
(1,578)
1,458
(Loss) Income from operations before taxes
(3,519)
4,199
Transaction and business realignment costs
292
452
Impairment of intangible and long-lived assets
8,487
478
Net gain on sale and retirement of assets
(292)
(308)
Gain on repurchases of debt
(775)
—
Gain on sale of digital assets
(839)
—
Change in fair value of investment
134
1,508
Gain on insurance recoveries
(372)
(11)
Net income attributable to non-controlling interest, net of income taxes
(480)
(517)
Adjusted net income before income taxes
2,636
5,801
Income tax provision
1,182
2,014
Adjusted Net Income
$
1,454
$
3,787
Adjusted Net Income Per Share:
Basic
$
0.08
$
0.23
Diluted
$
0.08
$
0.19
Weighted average shares outstanding:
Basic
17,204
16,796
Diluted
17,483
19,509
11
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 months ended March 31, 2023, and 2022, respectively (dollars in thousands):
Three Months Ended March 31,
(Unaudited)
2023
2022
Net (loss) income
$
(1,941)
$
2,741
Income tax (benefit) provision
(1,578)
1,458
Interest expense, net
9,558
10,027
Gain on repurchases of debt
(775)
—
Depreciation and amortization
4,944
4,765
Stock-based compensation
1,772
869
Transaction and business realignment costs
292
452
Impairment of intangible and long-lived assets
8,487
478
Other (a)
(1,318)
1,280
Adjusted EBITDA
$
19,441
$
22,070
Political Adjusted EBITDA
(181)
(367)
Adjusted EBITDA (Excluding Political)
$
19,260
$
21,703
Political Adjusted EBITDA
181
367
Net cash paid for interest
(18,728)
(18,909)
Capital expenditures
(3,639)
(2,765)
Cash paid for taxes
(4)
(48)
Adjusted EBITDA Less Interest, Capex and Taxes
$
(2,930)
$
348
(a) Other includes net (gain) on sale and retirement of assets and other (income) expense, net.
12
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 March 31, 2023 (dollars in thousands):
Three Months Ended
Twelve Months Ended
(Unaudited)
June 30, 2022
September 30, 2022
December 31, 2022
March 31, 2023
March 31, 2023
Net income (loss)
$
4,919
$
2,798
$
3,932
$
(1,941)
$
9,708
Income tax provision (benefit)
1,206
2,275
(5,503)
(1,578)
(3,600)
Interest expense, net
10,044
9,967
9,790
9,558
39,359
Gain on repurchases of debt
(108)
—
—
(775)
(883)
Depreciation and amortization
4,314
4,467
5,498
4,944
19,223
Stock-based compensation
839
722
1,367
1,772
4,700
Transaction and business realignment costs
824
1,004
2,168
292
4,288
Impairment of intangible and long-lived assets
9,419
10,300
10,917
8,487
39,123
Other (a)
895
(627)
221
(1,318)
(829)
Adjusted EBITDA
$
32,352
$
30,906
$
28,390
$
19,441
$
111,089
(a) Other includes net (gain) on sale and retirement of assets and other (income) expense, net.
13
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 March 31, 2023, and 2022 (in thousands):
