News Column

Townsquare Media, Inc. Reports Second Quarter 2014 Results

August 22, 2014



By a News Reporter-Staff News Editor at Entertainment Newsweekly -- Townsquare Media, Inc. (NYSE:TSQ) (the "Company," "we," "us," or "our") announced financial results for the second quarter ended June 30, 2014. Second Quarter Highlights Pro forma net revenue increased 7.8%

Pro forma Local Advertising net revenue was flat

Pro forma Other Media and Entertainment net revenue saw a strong increase

Adjusted EBITDA of $28.6 million increased 4.6% compared to the prior year period's Adjusted EBITDA, excluding duplicative corporate expenses as further adjusted for certain non-recurring items

Net income of $12.1 million First Half Highlights Pro forma net revenue increased 8.4%

Pro forma Local Advertising net revenue increased 1.3%

Pro forma Other Media and Entertainment net revenue saw a strong increase

"We are pleased to be reporting solid second quarter results, following the successful completion of our initial public offering in July. We delivered a 7.8% increase in pro forma net revenue. Our results continue to demonstrate the strength of our diversified revenue strategy. We enjoyed solid performance in most of our Local Advertising markets together with strong performance across our live event, digital marketing service and national digital assets. These more than offset advertising revenue softness in certain markets within our Local Advertising segment," commented Steven Price, Chairman and Chief Executive Officer of Townsquare Media, Inc. Quarter Ended June 30, 2014 Compared to the Quarter Ended June 30, 2013 Net Revenue On an actual basis, net revenue increased $33.8 million, or 46.6%, to $106.3 million, compared to $72.5 million in the same period last year. Local Advertising net revenue increased $20.3 million, or 35.2%, to $78.1 million, and Other Media and Entertainment net revenue increased $13.5 million, or 91.4%, to $28.2 million. These increases were primarily attributable to the acquisitions made during the second half of 2013, including certain assets of Peak II Holding, LLC, Cumulus Media Inc. and certain live events.

Pro forma for completed material acquisitions, net revenue increased $7.7 million, or 7.8%, to $106.3 million, compared to $98.6 million in the same period last year. Local Advertising pro forma net revenue decreased $0.2 million, or 0.3%, to $78.1 million. Other Media and Entertainment pro forma net revenue increased $7.9 million, or 39.3%, to $28.2 million, primarily attributable to growth across our live events, digital marketing services and national digital assets. Adjusted EBITDA On an actual basis, Adjusted EBITDA increased $10.6 million, or 58.8%, to $28.6 million, compared to $18.0 million in the same period last year.

Pro forma Adjusted EBITDA excluding duplicative corporate expenses decreased $0.8 million, or 2.8%, to $28.6 million, compared to $29.5 million in the same period last year. Excluding the reversal of a $2.1 million legal accrual in connection with the dismissal of a lawsuit in the second quarter of 2013, pro forma Adjusted EBITDA excluding duplicative corporate expenses increased $1.2 million, or 4.6%, to $28.6 million, compared to $27.4 million in the same period last year. Liquidity and Capital Resources As of June 30, 2014, we had a total of $47.7 million of cash on hand. As of June 30, 2014, the total amount of credit available to us was $10.0 million under our credit facilities, of which none had been drawn down. As of June 30, 2014, we had $645.0 million of outstanding indebtedness with annual debt service requirements of approximately $46.4 million. Post-Offering Liquidity and Capital Resources Gross proceeds received from our initial public offering were approximately $91.6 million, with fees and expenses of approximately $9.4 million, resulting in net proceeds to the Company of approximately $82.2 million. The net proceeds were used to reduce the existing outstanding debt obligations of the Company. In July 2014, we repaid $32.2 million, representing the entire outstanding balance plus accreted interest, of our 10% Senior PIK Notes and used the remaining net proceeds, together with $37.0 million of cash on hand, to repay a portion of the Company's $202.0 million incremental term loans, leaving a balance of $112.0 million. Giving effect to the offering and the use of proceeds, and the use of cash on hand as described above, the Company would have had $10.7 million of cash on hand as of June 30, 2014.

On July 11, 2014, Townsquare Radio, a subsidiary of the Company, as borrower, entered into an amendment to its Senior Secured Credit Facility that provides for up to $25.0 million of revolving credit commitments (including revolving loans, swingline loans and letters of credit). As of August 7, 2014, no amounts have been drawn under the revolving credit commitments. Conference Call Townsquare Media, Inc. will host a conference call to discuss certain second quarter 2014 financial results on Thursday, August 7, 2014 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 13587835. A live webcast of the conference call will also be available on the equity investor relations page of the Company's website at www.townsquaremedia.com.

Keywords for this news article include: Marketing, Advertising, Entertainment, Townsquare Media Inc.

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Source: Entertainment Newsweekly


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