Townsquare Reports Fourth Quarter and Full Year 2015 Results
2015 Net Revenue Increases 18.0%
Greenwich, CT – February 26, 2016 – Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare,” the “Company,” “we,” “us,” or “our”) announced today financial results for the fourth quarter and year ended December 31, 2015.
“In 2015, we delivered net revenue growth of 18%, driven by growth across all segments and the acquisition of North American Midway Entertainment (“NAME”). We believe our diversified strategy remains sound, demonstrated by the stability of our Local Advertising business and the outsized growth in our other businesses,” commented Steven Price, Chairman and Chief Executive Officer of Townsquare. “In addition, we further diversified our business, with approximately half of revenue now derived from sources other than the sale of terrestrial radio advertising.”
Mr. Price continued, “2015 was an exciting year for Townsquare. We completed two strategic transactions, refinanced our capital structure, locking in long-term, favorable interest rates, and voluntarily repaid a portion of our term loan debt. On a pro forma basis, net revenue grew 5.4% in 2015 and both revenue and EBITDA were in line with the guidance that we provided at the start of 2015.”
Fourth Quarter Highlights
As compared to the fourth quarter of 2014:
- Net revenue increased 20.6%
- Local Advertising net revenue excluding political increased 3.5%
- Live Events net revenue increased 298.7%
- Other Media and Entertainment net revenue increased 44.1% Full Year Highlights
As compared to 2014:
- Net revenue increased 18.0%
- Local Advertising net revenue excluding political increased 1.9%
- Live Events net revenue increased 138.5%
- Other Media and Entertainment net revenue increased 33.4%
- Excluding NAME, net revenue and Adjusted EBITDA were $412.5 million and $93.7 million, respectively
- Nearly 50% of pro forma net revenue was derived from sources other than the sale of terrestrial radio station advertising
Quarter Ended December 31, 2015 Compared to the Quarter Ended December 31, 2014
Net Revenue
Net revenue for the quarter ended December 31, 2015 increased $19.3 million, or 20.6%, to $113.0 million, as compared to $93.7 million in the same period last year. This was primarily due to a $16.1 million increase in Live Events net revenue, which was partially due to an increase in net revenue from the acquisition of NAME on September 1, 2015. Local Advertising net revenue decreased $0.4 million, or 0.4%, to $80.0 million, Live Events net revenue increased $16.1 million, or 298.7%, to $21.6 million and Other Media and Entertainment net revenue increased $3.5 million, or 44.1%, to $11.5 million. Excluding political revenue, net revenue increased $22.3 million, or 25.1%, to $111.2 million and Local Advertising net revenue increased $2.7 million, or 3.5%, to $78.1 million.
Adjusted EBITDA
Adjusted EBITDA for the quarter ended December 31, 2015 decreased $2.9 million, or 12.2%, to $21.1 million, as compared to $24.0 million in the same period last year. The decrease was primarily related to a reduction in political revenue.
Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014
Net Revenue
Net revenue for the year ended December 31, 2015 increased $67.3 million, or 18.0%, to $441.2 million, as compared to $373.9 million last year. This was primarily due to a $56.7 million increase in Live Events net revenue, partially due to an increase in net revenue from the acquisition of NAME on September 1, 2015 and the acquisition of WE Fest on October 31, 2014. Local Advertising net revenue increased $0.5 million, or 0.2%, to $303.1 million, Live Events net revenue increased $56.7 million, or 138.5%, to $97.7 million and Other Media and Entertainment net revenue increased $10.1 million, or 33.4%, to $40.4 million. Excluding political revenue, net revenue increased $72.6 million, or 19.8%, to $438.3 million and Local Advertising net revenue increased $5.7 million, or 1.9%, to $300.2 million.
Adjusted EBITDA
Adjusted EBITDA for the year ended December 31, 2015 increased $2.5 million, or 2.6%, to $98.0 million, as compared to $95.5 million last year. The increase was primarily due to the acquisitions of NAME on September 1, 2015 and WE Fest on October 31, 2014.
Liquidity and Capital Resources
As of December 31, 2015, we had a total of $33.3 million of cash on hand and the total amount of revolving credit capacity available to us was $50.0 million under our credit facility. As of December 31, 2015, we had $598.8 million of outstanding indebtedness and $565.5 million of outstanding indebtedness net of cash, representing 5.8x and 5.5x gross and net leverage, respectively, based on the year ended December 31, 2015 pro forma Adjusted EBITDA of $102.6 million.
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Contact
Claire Yenicay
(203) 861-0900
claire@townsquaremedia.com