TOWNSQUARE ANNOUNCES STRONG 2019 NET REVENUE GROWTH OF 8% (EX POLITICAL)
AND ADJUSTED EBITDA GROWTH OF 15% (EX POLITICAL)
2019 Digital Revenue Increased More Than 25% to over $150 Million
4.6x Net Leverage*
Purchase, NY - March 16, 2020 - Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare,” the “Company,” “we,” “us,” or “our”) announced today selected results for the fourth quarter and year ended December 31, 2019.
“During 2019, the Townsquare Team worked tirelessly to deliver upon our ‘Local First’ strategy to drive strong operational and financial results and to create value for all of our stakeholders. We are pleased to see our efforts driving very strong results, as full year 2019 net revenue increased 5.7% and 7.5% excluding political, which is above our prior guidance. Townsquare’s total digital revenue grew in excess of 25% to more than $150 million, which equates to digital now comprising 35% of total net revenue,” commented Bill Wilson, Chief Executive Officer of Townsquare. “In addition, 2019 Adjusted EBITDA increased to $102.4 million, an increase of 7.8% and 15.3% excluding political. Our strong revenue growth, coupled with our disciplined expense management, allowed us to reduce net leverage to 4.6x as of December 31st, a reduction of 0.5x year over year and the lowest net leverage level in our Company’s history. I want to thank the amazing and talented Townsquare Team across the country for their hard work each and every day that is driving our strong results; ‘You Matter.’”
Mr. Wilson added, “As we look forward, we are excited about the future of our Company. We believe that our talented teams, broad multi-platform marketing and advertising product suite and in particular, our robust digital solutions, led by Townsquare Interactive and Townsquare Ignite, our proprietary digital programmatic advertising platform, will continue to differentiate us in the marketplace. We are proud of our broadcast performance, but our overall financial results clearly demonstrate what I have been stating for quite some time: Townsquare has transitioned from being a traditional broadcaster to being a premier local media and digital marketing solutions company with fast growing, profitable digital products and solutions. We continue to be heavily focused on super-serving our local clients, local listeners and local communities while helping local businesses grow through our ‘Local First’ strategy, while simultaneously delivering results for our stakeholders.”
“While the specific impact of the Coronavirus pandemic to our business is unknown at this time, we know that there will be a negative impact. However, we are confident and optimistic about the long-term customer demand for our multi-platform products and marketing solutions. Our primary concern is for the safety and well-being of our employees, their families, our partners and our local communities across the country, and my thoughts and prayers go out to all who have been affected around the world. We are constantly monitoring the evolving environment in each of our 67 local markets. As the preeminent local media company in each of our local markets, Townsquare has the additional responsibility, obligation and civic duty to lead from the front, continue to inform accurately and provide comfort. I could not be prouder of our Townsquare Team and how each day they are serving their listeners, their clients and their local communities during this important time. Our future remains bright and I am confident that together we will emerge from this challenge stronger than ever before,” concluded Mr. Wilson.
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, 2020 to shareholders of record as of the close of business on April 2, 2020.
We are in the process of completing the annual audit of our financial statements for 2019, and when the audit is complete we will be providing our Net Income for 2019. Upon completion of our audit, we may recognize a non-cash impairment charge to our intangible assets and any such non-cash impairment charge could be material.
Fourth Quarter Highlights**
As compared to the fourth quarter of 2018:
Net revenue increased 2.9% and 6.9% excluding political revenue
Advertising net revenue increased 0.9% and 5.6% excluding political revenue
Townsquare Interactive net revenue increased 19.5%
Live Events net revenue decreased 15.7%
Adjusted EBITDA decreased 2.8% and increased 13.5% excluding political