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Townsquare Reports Strong Fourth Quarter: Net Revenue Rises 12% And Adjusted EBITDA Increases 9%

2018 Digital Revenue over $120 Million and Nearly 30% of Total Net Revenue

GREENWICH, Conn., March 12, 2019 /PRNewswire/ -- Townsquare Media, Inc. (TSQ) ("Townsquare," the "Company," "we," "us," or "our") announced today financial results for the fourth quarter and year ended December 31, 2018.

Townsquare Media, Inc.

"2018 was an exciting year for Townsquare.  We reoriented our business to focus on the profitable growth of Townsquare's local media and digital marketing solutions offerings, completed two strategic, tuck-in radio acquisitions, initiated a dividend, and delivered strong revenue and Adjusted EBITDA growth that exceeded our business plan," commented Bill Wilson, Chief Executive Officer of Townsquare.

Mr. Wilson continued, "In 2018, we delivered net revenue growth of approximately 5% and Adjusted EBITDA growth of over 7%, driven by the impressive growth of our digital businesses, which now total $120 million in annual net revenue and thus nearly 30% of our total net revenue.  Further, we beat our previously issued 2018 revenue guidance. The fourth quarter delivered the strongest year over year growth in 2018, with net revenue growth of 12%, and we saw sequential improvement in our advertising business throughout the year."

"In addition, Townsquare Interactive added 2,950 net subscribers in 2018 (compared to 1,700 in 2017) and thus ended the year with approximately 15,350 subscribers and nearly $50 million in net revenue."

The Company also announced today that its board of directors approved a quarterly cash dividend of $0.075 per share.  The dividend will be payable on May 15, 2019 to shareholders of record as of the close of business on April 2, 2019.

Fourth Quarter Highlights*

  • As compared to the fourth quarter of 2017 on a GAAP basis:
  • As compared to the fourth quarter of 2017 on a pro forma basis:
  • Diluted net loss per share from continuing operations and diluted Adjusted Net Income Per Share were $1.26 and $0.26, respectively
  • Townsquare Interactive added 850 net subscribers

Full Year Highlights*

  • As compared to the year ended December 31, 2017 on a GAAP basis:
  • As compared to the year ended December 31, 2017 on a pro forma basis:
  • Diluted net loss per share from continuing operations and diluted Adjusted Net Income Per Share were $0.03 and $1.08, respectively
  • Townsquare Interactive added 2,950 net subscribers, ending the year with approximately 15,350 subscribers
  • Repaid $11.4 million of long-term debt

* See below for discussion of non-GAAP measures and reconciliations to GAAP measures.

Quarter Ended December 31, 2018 Compared to the Quarter Ended December 31, 2017

Net Revenue
Net revenue for the quarter ended December 31, 2018 increased $11.7 million, or 12.0%, to $109.0 million, as compared to $97.3 million in the same period last year.  Excluding political revenue, net revenue increased $7.2 million, or 7.5%, to $103.3 million, as compared to $96.1 million in the same period last year.  Excluding live events net revenue, which was budgeted to decline in 2018, net revenue increased $13.4 million, or 14.4%, to $106.6 million, as compared to $93.2 million in the same period last year.

Pro forma net revenue for the quarter ended December 31, 2018 increased $9.6 million, or 9.7%, to $109.0 million, as compared to $99.3 million in the same period last year.  As used in this release, the term "pro forma" means pro forma for our acquisition of three radio stations in Princeton, NJ on July 2, 2018.  Excluding political revenue, net revenue increased $5.2 million, or 5.2%, to $103.3 million, as compared to $98.1 million in the same period last year. Excluding live events net revenue, which was budgeted to decline in 2018, net revenue increased $11.4 million, or 12.0%, to $106.6 million, as compared to $95.2 million in the same period last year.

Net Loss
Net loss for the quarter ended December 31, 2018 decreased $10.8 million, or 39.9%, to $16.3 million, as compared to $27.1 million in the same period last year.  Net loss from continuing operations decreased $32.5 million or 350.5%, to a net loss of $23.2 million, as compared to net income of $9.3 million in the same period last year. The decline in net income was driven by an increase in non-cash impairment charges in 2018, due in part to the revision of certain assumptions in the Company's annual testing for intangible impairment as a result of the Company's depressed stock price and market capitalization as compared to the prior year, among other factors.  Net income was also impacted by an $11.7 million decline in income tax benefit, primarily related to the 2017 Tax Cut and Jobs Act.

Pro forma net loss for the quarter ended December 31, 2018 decreased $10.3 million, or 38.6%, to $16.3 million, as compared to $26.6 million in the same period last year.  The decline in net income was driven by an increase in non-cash impairment charges in 2018, due in part to the revision of certain assumptions in the Company's annual testing for intangible impairment as a result of the Company's depressed stock price and market capitalization as compared to the prior year, among other factors.  Net income was also impacted by an $11.7 million decline in income tax benefit, primarily related to the 2017 Tax Cut and Jobs Act.

Adjusted EBITDA
Adjusted EBITDA for the quarter ended December 31, 2018 increased $2.0 million, or 9.1%, to $23.9 million, as compared to $21.9 million in the same period last year.

Pro forma Adjusted EBITDA for the quarter ended December 31, 2018 increased $1.4 million, or 6.4%, to $23.9 million as compared to $22.4 million in the same period last year.

Year Ended December 31, 2018 Compared to the Year Ended December 31, 2017

Net Revenue
Net revenue for the year ended December 31, 2018 increased $19.2 million, or 4.7%, to $430.6 million, as compared to $411.4 million in the same period last year.  Excluding political revenue, net revenue increased $11.6 million, or 2.8%, to $420.6 million, as compared to $409.0 million in the same period last year.  Excluding live events net revenue, which was budgeted to decline in 2018, net revenue increased $30.6 million, or 8.6%, to $388.0 million, as compared to $357.4 million in the same period last year.

Pro forma net revenue for the year ended December 31, 2018 increased $15.4 million, or 3.7%, to $434.2 million, as compared to $418.8 million in the same period last year.  Excluding political revenue, net revenue increased $7.8 million, or 1.9%, to $424.2 million, as compared to $416.4 million in the same period last year.  Excluding live events net revenue, which was budgeted to decline in 2018, net revenue increased $26.9 million, or 7.4%, to $391.4 million, as compared to $364.6 million in the same period last year.

Net Loss

Net loss for the year ended December 31, 2018 increased $21.3 million, to a net loss of $31.6 million, as compared to a net loss of $10.3 million in the same period last year.  Net loss from continuing operations decreased $25.3 million, or 102.0%, to a net loss of $0.5 million, as compared to net income of $24.8 million in the same period last year.  The decline in net income was driven by an increase in non-cash impairment charges in 2018, due in part to the revision of certain assumptions in the Company's annual testing for intangible impairment as a result of the Company's depressed stock price and market capitalization as compared to the prior year, among other factors. Net income was also impacted by a $9.0 million decline in income tax benefit, primarily related to the 2017 Tax Cut and Jobs Act.

Pro forma net loss for the year ended December 31, 2018 increased $22.4 million, to a net loss of $30.6 million, as compared to $8.2 million in the same period last year. The decline in net income was driven by an increase in non-cash impairment charges in 2018, due in part to the revision of certain assumptions in the Company's annual testing for intangible impairment as a result of the Company's depressed stock price and market capitalization as compared to the prior year, among other factors.  Net income was also impacted by a $9.0 million decline in income tax benefit, primarily related to the 2017 Tax Cut and Jobs Act.

Adjusted EBITDA

Adjusted EBITDA for the year ended December 31, 2018 increased $6.5 million, or 7.3%, to $96.5 million, as compared to $90.0 million in the same period last year.

Pro forma Adjusted EBITDA for the year ended December 31, 2018 increased $5.4 million, or 5.9%, to $97.5 million, as compared to $92.1 million in the same period last year.

Liquidity and Capital Resources

As of December 31, 2018, we had a total of $61.4 million of cash on hand and $50.0 million of available borrowing capacity under our revolving credit facility. As of December 31, 2018, we had $560.5 million of outstanding indebtedness, representing 5.7x and 5.1x gross and net leverage, respectively, based on pro forma Adjusted EBITDA for the year ended December 31, 2018 of $97.5 million.

The table below presents a summary, as of March 8, 2019, of our outstanding common stock and securities convertible into common stock, excluding options issued under our 2014 Omnibus Incentive Plan.

Security


Number Outstanding1

Description

Class A common stock


14,297,066

One vote per share.

Class B common stock


3,011,634

10 votes per share.2

Class C common stock


1,636,341

No votes.2

Warrants


8,977,676

Each warrant is exercisable for one share of Class A common stock, at
an exercise price of $0.0001 per share. The aggregate exercise price for
all warrants currently outstanding is $898.3

Total


27,922,717






1  Each of the shares of common stock listed below, including the shares of Class A common stock issuable upon
exercise of the warrants, has equal economic rights.

2  Each share converts into 1 share of Class A common stock upon transfer or at the option of the holder, subject to
certain conditions, including compliance with FCC rules.

3 The warrants are fully vested and exercisable for shares of Class A common stock, subject to certain conditions,
including compliance with FCC rules.

Conference Call
Townsquare Media, Inc. will host a conference call to discuss certain fourth quarter and full year 2018 financial results  and 2019 guidance on Tuesday, March 12, 2019 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 13686487. 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.

A replay of the conference call will be available through March 19, 2019. To access the replay, please dial 1-844-512-2921 (U.S. & Canada) or 1-412-317-6671 (International) and enter confirmation code 13686487. A web-based archive of the conference call will also be available at the above website.

About Townsquare Media, Inc.
Townsquare is a radio, digital media, entertainment and digital marketing solutions company principally focused on being the premier local advertising and marketing solutions platform in small and mid-sized markets across the U.S. Our assets include 321 radio stations and more than 330 local websites in 67 U.S. markets, a digital marketing solutions company (Townsquare Interactive) serving approximately 15,350 small to medium sized businesses, a proprietary digital programmatic advertising platform (Townsquare Ignite) and approximately 200 live events with over one million attendees each year.  Our brands include local media assets such as WYRK, KLAQ, K2 and NJ101.5; iconic regional and national events such as the Taste of Country Music Festival, WE Fest, Country Jam, the Boise Music Festival, the Red Dirt BBQ & Music Festival and Taste of Fort Collins; and leading tastemaker music and entertainment websites such as XXLmag.com, TasteofCountry.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. By nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statement. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof. See "Risk Factors" and "Forward-Looking Statements" included in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission on or about the date hereof, for a discussion of factors that could cause our actual results to differ from those expressed or implied by forward-looking statements. Townsquare Media, Inc. assumes no responsibility to update any forward-looking statement 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 EBITDA, Adjusted EBITDA Less Interest, Capex and Taxes, 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 EBITDA as net income (loss) before the deduction of income taxes, interest expense, net, repurchase of debt, transaction costs, depreciation and amortization, stock-based compensation, business realignment costs, goodwill and other intangible impairment charges, impairment loss on investment, net (income) loss from discontinued operations, net of income taxes, net gain (loss) on sale and retirement of assets, and other expense (income) net. Adjusted EBITDA Less Interest, Capex and Taxes is defined as Adjusted EBITDA less net cash interest expense, capital expenditures and cash paid for taxes. Adjusted Net Income is defined as net income (loss) before the deduction of transaction costs, business realignment costs, goodwill and other intangible impairment charges, net (loss) income from discontinued operations, net of income taxes, and net (gain) loss on sale and retirement of assets.  Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the weighted average shares outstanding. These measures do not represent, and should not be considered as alternatives to, net income (loss), or cash flows from operations, as determined under 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.  Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are set forth in the tables below.  Where we use the term "pro forma", it refers to pro forma financial information for our acquisition of three radio stations in Princeton, NJ on July 2, 2018. as if the acquisition had occurred on January 1, 2017.

We use Adjusted EBITDA 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. We use Adjusted Net Income and Adjusted Net Income Per Share to assess total company operating performance on a consistent basis.  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, certain impairments, and net income (loss) from discontinued operations.  Further, while discretionary bonuses for members of management are not determined with reference to specific targets, our Board of Directors may consider Adjusted EBITDA, Adjusted EBITDA Less Interest, Capex and Taxes, Adjusted Net Income, and Adjusted Net Income Per Share 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)




December 31,
2018


December 31,
2017

ASSETS




Current assets:




   Cash and cash equivalents

$

61,390


$

61,205

Accounts receivable, net of allowance of $3,456 and $1,079, respectively

62,464


61,558

   Prepaid expenses and other current assets

9,305


7,540

Short-term assets held for sale


879

Current assets of discontinued operations

10


7,222

       Total current assets

133,169


138,404





Property and equipment, net

114,251


104,030

Intangible assets, net

482,780


495,501

Goodwill

240,584


241,888

Investments

9,505


8,092

Other assets

6,909


8,965

Long-term assets of discontinued operations


59,478

       Total assets

$

987,198


$

1,056,358





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




   Accounts payable

$

13,481


$

13,442

   Current portion of long-term debt

5


9,524

   Deferred revenue

14,611


17,281

   Accrued expenses and other current liabilities

32,834


24,919

   Accrued interest

4,563


5,699

   Current liabilities of discontinued operations

207


2,440

      Total current liabilities

65,701


73,305

Long-term debt, less current portion (net of deferred financing costs of $5,155 and $6,803, respectively)

555,330


555,618

Deferred tax liabilities

16,031


26,283

Other long-term liabilities

8,559


9,390

Long-term liabilities of discontinued operations


10,682

       Total liabilities

645,621


675,278





Stockholders' equity:




Class A common stock, par value $0.01 per share; 300,000,000 shares authorized; 14,297,066 and 13,819,639 shares 
     issued and outstanding, respectively

143


138

Class B common stock, par value $0.01 per share; 50,000,000 shares authorized; 3,022,484 and 3,011,634 shares issued 
     and outstanding, respectively

30


30

Class C common stock, par value $0.01 per share; 50,000,000 shares authorized; 1,636,341 shares issued and 
     outstanding, respectively

17


17

Total common stock

190


185

    Additional paid-in capital

365,835


367,041

    Retained deficit

(25,735)


13,265

    Cumulative translation adjustment


(532)

    Non-controlling interest

1,287


1,121

       Total liabilities and stockholders' equity

$

987,198


$

1,056,358

 

 

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in Thousands, Except Per Share Data)



Three Months Ended
December 31,


Years Ended
December 31,


2018


2017


2018


2017









Net revenue

$

108,958


$

97,263


$

430,599


$

411,392









Operating costs and expenses:








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

77,685


67,934


306,861


295,574

Depreciation and amortization

4,878


4,220


18,961


18,999

Corporate expenses

7,410


7,453


27,212


25,828

Stock-based compensation

600


169


1,633


718

Transaction costs

462


568


1,466


1,174

Business realignment costs

2,128


1,328


2,128


1,328

Impairment of goodwill and intangible assets

32,358


16,858


32,358


16,858

Net (gain) loss on sale and retirement of assets

(13)


(266)


(415)


386

    Total operating costs and expenses

125,508


98,264


390,204


360,865

    Operating (loss) income

(16,550)


(1,001)


40,395


50,527









Other expense (income):








  Interest expense, net

8,667


8,281


34,266


32,755

  Impairment loss on investment

5,007



5,007


  Repurchase of debt

(140)



(140)


  Other expense, net

45


37


167


363

  (Loss) income from continuing operations before income taxes

(30,129)


(9,319)


1,095


17,409

  (Benefit) provision from income taxes

(6,928)


(18,582)


1,589


(7,397)

  Net (loss) income from continuing operations

(23,201)


9,263


(494)


24,806

  Net income (loss) from discontinued operations, net of income taxes

6,892


(36,382)


(31,081)


(35,079)

      Net loss

$

(16,309)


$

(27,119)


$

(31,575)


$

(10,273)

















     Controlling interests

(16,715)


(27,469)


(32,930)


(11,149)

     Noncontrolling interests

406


350


1,355


876









Basic (loss) income per share:








Continuing operations

$

(1.26)


$

0.50


$

(0.03)


$

1.34

Discontinued operations

$

0.37


$

(1.97)


$

(1.68)


$

(1.90)









Diluted (loss) income per share:








Continuing operations

$

(1.26)


$

0.34


$

(0.03)


$

0.89

Discontinued operations

$

0.37


$

(1.33)


$

(1.68)


$

(1.26)









Weighted average shares outstanding:








     Basic

18,478


18,478


18,478


18,459

     Diluted

27,511


27,457


27,502


27,855









Cash dividend declared per share

$

0.075


$


$

0.300


$

 

 

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in Thousands)



Year Ended

December 31,


2018


2017

Cash flows from operating activities:




Net loss

$

(31,575)


$

(10,273)

Loss from discontinued operations

(31,081)


(35,079)

   Income from continuing operations

(494)


24,806

Adjustments to reconcile income from continuing operations to net cash flows from operating activities




     Depreciation and amortization

18,961


18,999

     Amortization of deferred financing costs

1,516


1,646

     Net deferred taxes and other

699


(8,080)

     Provision for doubtful accounts

4,665


2,174

     Stock-based compensation expense

1,633


718

     Equity award modification

(131)


     Trade activity, net

(13,245)


(11,754)

     Repurchase of debt

(140)


     Non-cash interest expense

(18)


(2)

     Write-off of deferred financing fees

133


83

     Impairment of goodwill and intangible assets

32,358


16,858

     Impairment on investment

5,007


     Net (gain) loss on sale of assets

(415)


386

Changes in assets and liabilities, net of acquisitions:




   Accounts receivable

(1,234)


(849)

   Prepaid expenses and other assets

(370)


(599)

   Accounts payable

(3,311)


(153)

   Accrued expenses

3,266


4,943

   Accrued interest

(989)


1,107

   Other long-term liabilities

(831)


(831)

      Net cash provided by operating activities - continuing operations

47,060


49,452

      Net cash (used in) provided by operating activities - discontinued operations

(10,426)


1,536

      Net cash provided by operating activities

36,634


50,988

Cash flows from investing activities:




   Payments for acquisitions, net of cash acquired

(24,785)


(5,511)

   Payment for investment


(857)

   Acquisition of intangibles


(150)

   Purchase of property and equipment

(18,121)


(16,471)

   Proceeds from insurance settlement


   Proceeds from sale of assets

850


977

      Net cash used in investing activities - continuing operations

(42,056)


(22,012)

      Net cash provided by (used in) investing activities - discontinued operations

23,792


(6,917)

      Net cash used in investing activities

(18,264)


(28,929)

Cash flows from financing activities:




   Repayment of long-term debt

(11,332)


(6,662)

   Proceeds from stock offering and option exercises


346

   Dividend payments

(6,179)


   Debt financing costs

(2)


(526)

   Investment in minority interest


   Cash distribution to non-controlling interests

(524)


(421)

   Repayments of capitalized obligations

(5)


(91)

      Net cash used in financing activities - continuing operations

(18,042)


(7,354)

      Net cash used in financing activities - discontinued operations

(19)


(600)

      Net cash used in financing activities

(18,061)


(7,954)

      Effect of exchange rate changes

(124)


(45)

      Net increase in cash and cash equivalents

185


14,060

      Cash and cash equivalents:




      Beginning of period

61,205


47,145

      End of period

$

61,390


$

61,205

 

 

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in Thousands)



Year Ended
December 31,


2018


2017

Supplemental Disclosure of Cash Flow Information:




Cash payments:




   Interest

$

34,029


$

29,917

   Income taxes

1,203


722





Equity issued in respect of acquisitions:




  Common stock, joint venture acquisition


513





Non-cash investment:




  Investments

6,420


2,972





Supplemental Disclosure of Non-cash Activities:




   Dividends declared, but not paid during the period

$

2,162


$

The following tables disaggregate our revenue on a GAAP and pro forma basis into the following categories: Advertising, which includes broadcast and digital advertising products, Live Events, and our digital marketing solutions business under the brand name Townsquare Interactive, for the three months and years ended December 31, 2018 and 2017, respectively (in thousands):


Actual


Three Months Ended December 31,


Advertising



Live Events


Townsquare Interactive


Total


2018


2017


2018


2017


2018

2017


2018

2017

Net Revenue (ex Political)

$

87,383


$

81,459


$

2,392


$

4,107


$

13,510

$

10,510


$

103,285

$

96,076

Political

5,673


1,187







$

5,673

$

1,187

Net Revenue

$

93,056


$

82,646


$

2,392


$

4,107


$

13,510

$

10,510


$

108,958

$

97,263




Pro Forma


Three Months Ended December 31,


Advertising



Live Events


Townsquare Interactive


Total


2018


2017


2018


2017


2018

2017


2018

2017

Net Revenue (ex Political)

$

87,383


$

83,457


$

2,392


$

4,167


$

13,510

$

10,510


$

103,285

$

98,134

Political

5,673


1,187







$

5,673

$

1,187

Net Revenue

$

93,056


$

84,644


$

2,392


$

4,167T


$

13,510

$

10,510


$

108,958

$

99,321




Actual


Years Ended December 31,


Advertising


Live Events


Townsquare Interactive


Total


2018


2017


2018


2017


2018

2017


2018

2017

Net Revenue (ex Political)

$

329,372


$

314,891


$

42,642


$

54,032


$

48,598

$

40,041


$

420,612

$

408,964

Political

9,987


2,428





$

9,987

$

2,428

Net Revenue

$

339,359


$

317,319


$

42,642


$

54,032


$

48,598

$

40,041


$

430,599

$

411,392




Pro Forma


Years Ended December 31,


Advertising


Live Events


Townsquare Interactive


Total


2018


2017


2018


2017


2018

2017


2018

2017

Net Revenue (ex Political)

$

332,831


$

322,104


$

42,775


$

54,273


$

48,598

$

40,041


$

424,204

$

416,418

Political

10,003


2,428





$

10,003

$

2,428

Net Revenue

$

342,834


$

324,532


$

42,775


$

54,273


$

48,598

$

40,041


$

434,207

$

418,846

The following table reconciles on a GAAP basis net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted Net Income for the three months and years ended December 31, 2018, and 2017, respectively (in thousands, except per share data):


Three Months Ended
December 31,


Years Ended December
31,


2018


2017


2018


2017

Net (loss) income from continuing operations

$

(23,201)


$

9,263


$

(494)


$

24,806

Net income (loss) from discontinued operations, net of income taxes

6,892


(36,382)


(31,081)


(35,079)

Net loss

(16,309)


(27,119)


(31,575)


(10,273)

  (Benefit) provision from income taxes

(6,928)


(18,582)


1,589


(7,397)

Loss before income taxes

(23,237)


(45,701)


(29,986)


(17,670)

Transaction costs

462


568


1,466


1,174

Business realignment costs

2,128


1,328


2,128


1,328

Impairment of goodwill and intangible assets

32,358


16,858


32,358


16,858

Impairment loss on investment

5,007



5,007


Net (gain) loss on sale and retirement of assets

(13)


(266)


(415)


386

Net (income) loss from discontinued operations, net of income taxes

(6,892)


36,382


31,081


35,079

Adjusted net income before income taxes

9,813


9,169


41,639


37,155

   Provision for income taxes

2,797


3,896


11,867


15,787

Adjusted Net Income

$

7,016


$

5,273


$

29,772


$

21,368









Adjusted Net Income Per Share








   Basic

$

0.38


$

0.29


$

1.61


$

1.16

   Diluted

$

0.26


$

0.19


$

1.08


$

0.77









Weighted average shares outstanding:








     Basic

18,478


18,478


18,478


18,459

     Diluted

27,511


27,457


27,502


27,855

The following table reconciles on a GAAP basis net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA and Adjusted EBITDA Less Interest, Capex and Taxes for the three months and years ended December 31, 2018, and 2017, respectively (dollars in thousands):


Actual


Three Months Ended
December 31,


Years Ended

December 31,


2018


2017


2018


2017

Net (loss) income from continuing operations

$

(23,201)


$

9,263


$

(494)


$

24,806

Net income (loss) from discontinued operations, net of income taxes

6,892


(36,382)


(31,081)


(35,079)

Net loss

(16,309)


(27,119)


(31,575)


(10,273)

  (Benefit) provision from income taxes

(6,928)


(18,582)


1,589


(7,397)

  Interest expense, net

8,667


8,281


34,266


32,755

  Repurchase of debt

(140)



(140)


Depreciation and amortization

4,878


4,220


18,961


18,999

Stock-based compensation

600


169


1,633


718

Transaction costs

462


568


1,466


1,174

Business realignment costs

2,128


1,328


2,128


1,328

Impairment of goodwill and intangible assets

32,358


16,858


32,358


16,858

Impairment loss on investment

5,007



5,007


  Net (income) loss from discontinued operations, net of

  income taxes

(6,892)


36,382


31,081


35,079

  Other (a)

32


(229)


(248)


749

Adjusted EBITDA

$

23,863


$

21,876


$

96,526


$

89,990

Net cash paid for interest

(13,134)


(11,342)


(34,029)


(29,917)

Capital expenditures

(5,437)


(4,194)


(18,121)


(16,471)

Cash paid for taxes

(290)


(134)


(1,203)


(722)

Adjusted EBITDA Less Interest, Capex and Taxes

$

5,002


$

6,206


$

43,173


$

42,880


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

The following table reconciles on a pro forma basis net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA and Adjusted EBITDA Less Interest, Capex and Taxes for the three months and years ended December 31, 2018, and 2017, respectively (dollars in thousands):


Pro forma


Three Months Ended
December 31,


Years Ended

December 31,


2018


2017


2018


2017

Net (loss) income from continuing operations

$

(23,201)


$

9,263


$

(494)


$

24,806

Net income (loss) from discontinued operations, net of income taxes

6,892


(36,382)


(31,081)


(35,079)

Net loss

(16,309)


(27,119)


(31,575)


(10,273)

   Net income from acquisition


559


1,019


2,109

Pro forma net loss

(16,309)


(26,560)


(30,556)


(8,164)

  Provision (benefit) from income taxes

(6,928)


(18,582)


1,589


(7,397)

  Interest expense, net

8,667


8,281


34,266


32,755

  Repurchase of debt

(140)



(140)


Depreciation and amortization

4,878


4,220


18,961


18,999

Stock-based compensation

600


169


1,633


718

Transaction costs

462


568


1,466


1,174

Business realignment costs

2,128


1,328


2,128


1,328

Impairment of goodwill and intangible assets

32,358


16,858


32,358


16,858

Impairment loss on investment

5,007



5,007


  Net (income) loss from discontinued operations, net of income taxes

(6,892)


36,382


31,081


35,079

  Other (a)

32


(229)


(248)


749

Pro forma Adjusted EBITDA

23,863


22,435


97,545


92,099

Net cash paid for interest

(13,134)


(11,342)


(34,029)


(29,917)

Capital expenditures

(5,437)


(4,194)


(18,151)


(16,486)

Cash paid for taxes

(290)


(134)


(1,203)


(722)

Pro forma Adjusted EBITDA Less Interest, Capex and Taxes

$

5,002


$

6,765


$

44,162


$

44,974


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

The following table reconciles net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA on a quarterly basis for the twelve months ended December 31, 2018 (dollars in thousands):


Actual


Twelve Months
Ended


March 31,
2018


June 30,
2018


September 30,
2018


December 31,
2018


December 31,
2018

Net (loss) income

$

(26,591)


$

1,634


$

9,691


$

(16,309)


$

(31,575)

  Provision (benefit) from income taxes

1,095


3,723


3,699


(6,928)


1,589

  Interest expense, net

8,427


8,532


8,640


8,667


34,266

  Repurchase of debt




(140)


(140)

Depreciation and amortization

4,601


4,628


4,854


4,878


18,961

Stock-based compensation

190


246


597


600


1,633

Transaction costs

160


677


167


462


1,466

Business realignment costs




2,128


2,128

Impairment of goodwill and intangible assets




32,358


32,358

  Impairment loss on investment




5,007


5,007

  Net loss (income) from discontinued

  operations, net of income taxes

29,392


8,441


140


(6,892)


31,081

  Other (a)

(290)


(28)


38


32


(248)

Adjusted EBITDA

$

16,984


$

27,853


$

27,826


$

23,863


$

96,526


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

The following table reconciles on a pro forma basis net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA on a quarterly basis and for the twelve months ended December 31, 2018 (dollars in thousands):


Pro Forma


Twelve Months
Ended


March 31,
2018


June 30,
2018


September 30,
2018


December 31,
2018


December 31,
2018

Net (loss) income

$

(26,591)


$

1,634


$

9,691


$

(16,309)


$

(31,575)

   Net income from acquisition

271


748




1,019

Pro forma net (loss) income

(26,320)


2,382


9,691


(16,309)


(30,556)

  Provision (benefit) from income taxes

1,095


3,723


3,699


(6,928)


1,589

  Interest expense, net

8,427


8,532


8,640


8,667


34,266

  Repurchase of debt




(140)


(140)

Depreciation and amortization

4,601


4,628


4,854


4,878


18,961

Stock-based compensation

190


246


597


600


1,633

Transaction costs

160


677


167


462


1,466

Business realignment costs




2,128


2,128

Impairment loss on goodwill




32,358


32,358

Impairment loss on investment




5,007


5,007

  Net loss (income) from discontinued

  operations, net of income taxes

29,392


8,441


140


(6,892)


31,081

  Other (a)

(290)


(28)


38


32


(248)

Adjusted EBITDA

$

17,255


$

28,601


$

27,826


$

23,863


$

97,545


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

 

 

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