Townsquare Reports Fourth Quarter And Full Year 2017 Results

March 13, 2018 | By forimmediaterele | Filed in: Press Releases.

Travel & Tourism Industry release:

GREENWICH, Conn., March 13, 2018 /PRNewswire/ — 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, 2017.

“We are pleased to announce another strong result in our Local Marketing Solutions segment, which delivered net revenue growth of 0.4% in the fourth quarter of 2017, and 1.9% for the full year, despite the loss of political revenue.  This was the 16th consecutive quarter of positive, organic net revenue growth for this segment of our Company.  Excluding political revenue, Local Marketing Solutions net revenue increased 5.2% in the fourth quarter of 2017, our strongest quarter of the year, and 3.9% for the full year,” commented Bill Wilson, Co-Chief Executive Officer of Townsquare.

The Company also announced today that its Board of Directors approved the initiation of a quarterly cash dividend of $0.075 per share.  The dividend will be payable on May 15, 2018 to shareholders of record as of the close of business on April 2, 2018.

“The Board’s decision to approve a dividend reflects confidence in our current capitalization, the strength of our balance sheet, our free cash flow generation, and our outlook for 2018,” commented Dhruv Prasad, Co-Chief Executive Officer of Townsquare.  “Our quarterly cash dividend of $0.075 per share, or $0.30 per share on an annual basis, commences in May 2018.”

Fourth Quarter Highlights*

  • As compared to the fourth quarter of 2016 on an actual basis:
    • Local Marketing Solutions net revenue increased 0.4%, and 5.2% excluding political revenue
    • Entertainment net revenue decreased 17.4%
    • Net revenue decreased 3.7%, and 0.2% excluding political revenue
    • Net income from continuing operations decreased 941.5%
    • Adjusted EBITDA decreased 12.7%, to $21.6 million, consistent with previously issued guidance
  • Diluted net loss per share from continuing operations and diluted Adjusted Net Income Per Share were $(1.42) and $0.14, respectively

Full Year Highlights*

  • As compared to the year ended December 31, 2016 on an actual basis:
    • Local Marketing Solutions net revenue increased 1.9%, and 3.9% excluding political revenue
    • Entertainment net revenue decreased 8.6%
    • Net revenue decreased 1.7%, and 0.4% excluding political revenue
    • Net income from continuing operations decreased 138.3%
    • Adjusted EBITDA decreased 8.8%, to $97.2 million, consistent with previously issued guidance
  • Diluted net loss per share from continuing operations and diluted Adjusted Net Income Per Share were $(0.48) and $0.74, respectively
  • Repaid $6.7 million of long-term debt

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

Segment Reporting
We have two reportable segments, Local Marketing Solutions, which provides broadcast and digital products and solutions to advertisers and businesses within our local markets, and Entertainment, which provides live event experiences and music and lifestyle content directly to consumers, and promotion, advertising and product activations to local and national advertisers.

Quarter Ended December 31, 2017 Compared to the Quarter Ended December 31, 2016

Net Revenue
Net revenue for the quarter ended December 31, 2017 decreased $4.4 million, or 3.7%, to $114.3 million, as compared to $118.7 million in the same period last year.  Local Marketing Solutions net revenue increased $0.4 million, or 0.4%, to $91.6 million and Entertainment net revenue decreased $4.8 million, or 17.4%, to $22.6 million, due to revenue declines in certain of our live events and in our national digital business.  Excluding political revenue, net revenue decreased $0.3 million, or 0.2%, to $113.1 million and Local Marketing Solutions net revenue increased $4.5 million, or 5.2%, to $90.5 million.

Net (Loss) Income
Net (loss) income for the quarter ended December 31, 2017 decreased $30.3 million, or 944.1%, to a net loss of $27.1 million, as compared to net income of $3.2 million in the same period last year.  Net (loss) income from continuing operations for the quarter ended December 31, 2017 decreased $29.4 million, or 941.5%, to a net loss of $26.3 million, as compared to net income of $3.1 million in the same period last year.  Net (loss) income and net (loss) income from continuing operations declined primarily due to a $51.8 million impairment charge recorded in the quarter ended December 31, 2017.

Adjusted EBITDA
Adjusted EBITDA for the quarter ended December 31, 2017 decreased $3.1 million, or 12.7%, to $21.6 million, as compared to $24.8 million in the same period last year.

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016

Net Revenue
Net revenue for the year ended December 31, 2017 decreased $8.6 million, or 1.7%, to $507.4 million, as compared to $516.0 million in the same period last year. Local Marketing Solutions net revenue increased $6.5 million or 1.9%, to $348.7 million and Entertainment net revenue decreased $15.0 million or 8.6%, to $158.8 million, due to revenue declines in certain of our live events and in our national digital business.  Excluding political revenue, net revenue decreased $2.0 million, or 0.4%, to $505.0 million and Local Marketing Solutions net revenue increased $13.1 million, or 3.9%, to $346.2 million.

Net (Loss) Income
Net (loss) income for the year ended December 31, 2017 decreased $33.6 million, or 144.1%, to a net loss of $10.3 million, as compared to net income of $23.3 million in the same period last year. Net (loss) income from continuing operations for the year ended December 31, 2017 decreased $32.1 million, or 138.3%, to a net loss of $8.9 million, as compared to net income of $23.2 million in the same period last year. Net (loss) income and net (loss) income from continuing operations declined primarily due to a $51.8 million impairment charge recorded in the quarter ended December 31, 2017.

Adjusted EBITDA
Adjusted EBITDA for the year ended December 31, 2017 decreased $9.4 million, or 8.8%, to $97.2 million, as compared to $106.6 million in the same period last year.

Liquidity and Capital Resources
As of December 31, 2017, we had a total of $65.3 million of cash on hand and $50.0 million of available borrowing capacity under our revolving credit facility. As of December 31, 2017, we had $571.9 million of outstanding indebtedness, representing 5.9x and 5.2x gross and net leverage, respectively, based on Adjusted EBITDA for the year ended December 31, 2017 of $97.2 million.

The table below presents a summary, as of March 10, 2018, 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

13,837,676

One vote per share.

Class B common stock

3,022,484

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

27,474,177

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 2017 financial results on Tuesday, March 13, 2018 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 13675865. 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 20, 2018. To access the replay, please dial 1-844-512-2921 (U.S. & Canada) or 1-412-317-6671 (International) and enter confirmation code 13675865. A web-based archive of the conference call will also be available at the above website for thirty days after the call.

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 317 radio stations and more than 325 local websites in 67 U.S. markets, a digital marketing solutions company (Townsquare Interactive) serving approximately 12,400 small to medium sized businesses, a proprietary digital programmatic advertising platform (Townsquare Ignite) and approximately 350 live events with nearly 18 million attendees each year in the U.S. and Canada. Our brands include local media assets such as WYRK, KLAQ, K2 and NJ101.5; music festivals such as Mountain Jam, WE Fest and the Taste of Country Music Festival; touring lifestyle and entertainment events such as the America on Tap craft beer festival series and North American Midway Entertainment, North America’s largest mobile amusement company; and leading tastemaker music and entertainment owned and affiliated 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, 2017, 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, Adjusted Net Income Per Share and Adjusted Segment Operating Income 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 (loss) income before the deduction of income taxes, other expense (income) net, interest expense, net, repurchase of debt, transaction costs, stock-based compensation, net loss (gain) on sale and retirement of assets, business realignment costs, goodwill and other intangible impairment charges, net (loss) income on discontinued operations, net of income taxes, impairment of investment and depreciation and amortization. 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 (loss) income before the deduction of income taxes, transaction costs, business realignment costs, impairment of investment, goodwill and other intangible impairment charges, one-time stock option repricing, net loss (gain) on sale and retirement of assets, repurchase of debt and net (loss) income from discontinued operations, net of income taxes.  Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the weighted average shares outstanding. Adjusted Segment Operating Income is defined as segment operating income before the deduction of depreciation and amortization, stock-based compensation, business realignment costs and goodwill and other intangible impairment charges. These measures do not represent, and should not be considered as alternatives to, net income (loss), segment operating income or cash flows from operations, as determined under GAAP.  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.

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 use Adjusted Segment Operating Income to evaluate the operating performance of our business segments. 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, repurchase of debt, business realignment costs, certain impairments, a one-time stock option repricing and net (loss) income 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, Adjusted Net Income Per Share and Adjusted Segment Operating Income 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,

 2017

December 31,

 2016

ASSETS

Current assets:

Cash

$

65,295

$

51,540

Accounts receivable, net of allowance of $1,079 and $1,433, respectively

61,659

59,580

Prepaid expenses and other current assets

10,471

11,253

  Current assets held for sale

879

    Current assets of discontinued operations

100

254

Total current assets

138,404

122,627

Property and equipment, net

146,992

139,408

Intangible assets, net

508,399

513,915

Goodwill

243,042

292,953

Investments

8,092

4,313

Other assets

10,998

7,290

Long-term assets of discontinued operations

431

Long-term assets held for sale

199

Total assets

$

1,056,358

$

1,080,705

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

14,559

$

10,602

Current portion of long-term debt

9,524

6,901

Deferred revenue

17,683

17,208

Accrued expenses and other current liabilities

25,160

25,748

Accrued interest

5,699

4,622

    Current liabilities of discontinued operations

680

71

Total current liabilities

73,305

65,152

Long-term debt, less current portion (net of deferred financing costs of $6,803 and $8,006, respectively)

555,618

564,315

Deferred tax liability

36,965

50,907

Other long-term liabilities

9,390

10,221

Long-term liabilities of discontinued operations

59

Total liabilities

675,278

690,654

Stockholders’ equity:

Class A common stock, par value $0.01 per share; 300,000,000 shares authorized; 13,819,639 and 13,735,690 shares 
     issued and outstanding, respectively

138

137

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

30

30

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

17

17

    Total common stock

185

184

    Additional paid-in capital

367,041

365,434

    Retained earnings

13,265

24,450

    Accumulated other comprehensive loss

(532)

(722)

    Noncontrolling interest

1,121

705

Total stockholders’ equity

381,080

390,051

Total liabilities and stockholders’ equity

$

1,056,358

$

1,080,705

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in Thousands, Except Per Share Data)

Three Months Ended
December 31,

Years Ended
December 31,

2017

2016

2017

2016

Net revenue

$

114,255

$

118,650

$

507,434

$

515,995

Operating costs and expenses:

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

85,183

86,850

384,412

383,994

Depreciation and amortization

5,935

6,159

25,683

23,971

Corporate expenses

7,453

7,050

25,828

25,370

Stock-based compensation

177

3,590

748

4,253

Transaction costs

569

238

1,175

844

Business realignment costs

6,204

6,204

Goodwill and other intangible impairment charges

51,848

51,848

Net (gain) loss on sale and retirement of assets

(265)

(5)

397

282

    Total operating costs and expenses

157,104

103,882

496,295

438,714

    Operating (loss) income

(42,849)

14,768

11,139

77,281

Other expense (income):

Interest expense, net

8,279

8,332

32,753

34,072

Impairment on investment

4,236

Repurchase of debt

(85)

(546)

Other expense (income), net

99

(312)

288

(665)

     (Loss) income from continuing operations before income taxes

(51,227)

6,833

(21,902)

40,184

     (Benefit) provision for income taxes

(24,956)

3,713

(13,027)

16,982

Net (loss) income from continuing operations

(26,271)

3,120

(8,875)

23,202

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

(850)

91

(1,398)

91

     Net (loss) income

$

(27,121)

$

3,211

$

(10,273)

$

23,293

Net (loss) income attributable to:

     Controlling interests

$

(27,494)

$

3,234

$

(11,185)

$

23,059

     Non-controlling interests

373

(23)

912

234

Basic (loss) income per share:

Continuing operations

$

(1.42)

$

0.17

$

(0.48)

$

1.28

Discontinued operations

(0.05)

(0.08)

$

(1.47)

$

0.17

$

(0.56)

$

1.28

Diluted (loss) income per share:

Continuing operations

$

(1.42)

$

0.12

$

(0.48)

$

0.85

Discontinued operations

(0.05)

(0.08)

$

(1.47)

$

0.12

$

(0.56)

$

0.85

Weighted average shares outstanding:

     Basic

18,478

18,395

18,459

18,255

     Diluted

18,478

27,419

18,459

27,313

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in Thousands)

Year Ended December 31,

2017

2016

Cash flows from operating activities:

Net (loss) income attributable to:

Controlling interests

$

(11,185)

$

23,059

Noncontrolling interests

912

234

Net (loss) income

$

(10,273)

$

23,293

Adjustments to reconcile net (loss) income to net cash from operating activities:

Depreciation and amortization

25,683

23,971

Amortization of deferred financing costs

1,646

1,579

Deferred income tax (benefit) expense

(13,806)

15,831

Provision for doubtful accounts

2,186

1,921

Stock-based compensation expense

748

4,253

Trade activity, net

(11,754)

(9,731)

Repurchase of debt

(546)

Write-off deferred financing costs

83

376

   Impairment of goodwill

48,933

Impairment of FCC licenses

2,915

Write-off of goodwill

4,105

Write-off of trademark

771

Impairment on investment

4,236

Net loss on sale and retirement of assets

397

282

Changes in assets and liabilities, net of acquisitions:

Accounts receivable

(864)

3,987

Prepaid expenses and other assets

(676)

(704)

Accounts payable

669

(2,463)

Accrued expenses

(625)

(5,002)

Accrued interest

1,107

(288)

Other long-term liabilities

(835)

(1,074)

Net cash provided by operating activities – continuing operations

50,410

59,921

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

274

(124)

Net cash provided by operating activities

50,684

59,797

Cash flows from investing activities:

   Payments for acquisitions, net of cash received

(5,511)

(2,160)

   Payment for investment

(857)

   Acquisition of intangibles

(150)

(11)

   Purchase of property and equipment

(22,824)

(20,722)

   Proceeds from insurance settlement

451

   Proceeds from sale of assets

1,092

1,678

Net cash used in investing activities – continuing operations

(28,250)

(20,764)

Net cash used in investing activities – discontinued operations

(680)

(199)

Net cash used in investing activities

(28,930)

(20,963)

Cash flows from financing activities:

 Proceeds from exercise of employee stock options

346

   Repayment of long-term debt

(6,662)

(19,375)

   Debt financing costs

(526)

   Proceeds from sale of noncontrolling interest in subsidiary

50

Cash distributions to noncontrolling interests

(496)

(219)

   Repayments of capitalized obligations

(616)

(171)

Net cash used in financing activities

(7,954)

(19,715)

Net effect of foreign currency exchange rate changes

(45)

(877)

Net increase in cash and restricted cash

13,755

18,242

Cash and restricted cash:

Beginning of period

51,540

33,298

End of period

$

65,295

$

51,540

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in Thousands)

Year Ended December 31,

2017

2016

Supplemental Disclosure of Cash Flow Information:

Cash payments:

Interest

$

29,917

$

32,371

Income taxes

3,170

1,878

Purchase obligations:

Capital lease

$

$

525

Equity issued in respect of acquisitions:

Common stock, joint venture acquisition

$

513

$

Non-cash investment:

Investments

$

2,972

$

3,500

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT

(in Thousands)

Three Months Ended
December 31,

Years Ended
December 31,

2017

2016

2017

2016

Statement of Operations Data:

  Local Marketing Solutions net revenue

$

91,648

$

91,277

$

348,660

$

342,191

  Entertainment net revenue

22,607

27,373

158,774

173,804

Net revenue

114,255

118,650

507,434

515,995

Operating Costs and Expenses:

  Local Marketing Solutions direct operating expenses

61,783

58,460

234,524

223,286

  Entertainment direct operating expenses

23,400

28,390

149,888

160,708

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

85,183

86,850

384,412

383,994

Depreciation and amortization

5,935

6,159

25,683

23,971

Corporate expenses

7,453

7,050

25,828

25,370

Stock-based compensation

177

3,590

748

4,253

Transaction costs

569

238

1,175

844

Business realignment costs

6,204

6,204

Goodwill and other intangible impairment charges

51,848

51,848

Net (gain) loss on sale and retirement of assets

(265)

(5)

397

282

Total operating costs and expenses

157,104

103,882

496,295

438,714

Operating (loss) income

(42,849)

14,768

11,139

77,281

Other expense (income):

Interest expense, net

8,279

8,332

32,753

34,072

Impairment on investment

4,236

Repurchase of debt

(85)

(546)

Other expense (income), net

99

(312)

288

(665)

(Loss) income from continuing operations before income taxes

(51,227)

6,833

(21,902)

40,184

(Benefit) provision for income taxes

(24,956)

3,713

(13,027)

16,982

Net (loss) income from continuing operations

(26,271)

3,120

(8,875)

23,202

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

(850)

91

(1,398)

91

     Net (loss) income

$

(27,121)

$

3,211

$

(10,273)

$

23,293

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 and years ended December 31, 2017 and 2016, respectively (in thousands, except per share data):

Three Months Ended

December 31,

Years Ended

December 31,

2017

2016

2017

2016

Net (loss) income

$

(27,121)

$

3,211

$

(10,273)

$

23,293

  (Benefit) provision for income taxes

(24,956)

3,713

(13,027)

16,982

(Loss) income before income taxes

(52,077)

6,924

(23,300)

40,275

Transaction costs

569

238

1,175

844

   Business realignment costs

6,204

6,204

Goodwill and other intangible impairment charges

51,848

51,848

Impairment on investment

4,236

Stock option repricing

3,435

3,435

Net (gain) loss on sale and retirement of assets

(265)

(5)

397

282

Repurchase of debt

(85)

(546)

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

850

(91)

1,398

(91)

Adjusted income before income taxes

7,129

10,416

37,722

48,435

  Adjusted provision for income taxes

3,243

5,586

17,160

20,423

Adjusted Net Income

$

3,886

$

4,830

$

20,562

$

28,012

Adjusted Net Income Per Share:

     Basic

$

0.21

$

0.26

$

1.11

$

1.53

     Diluted

$

0.14

$

0.18

$

0.74

$

1.03

Weighted average shares outstanding:

     Basic

18,478

18,395

18,459

18,255

     Diluted

27,457

27,419

27,855

27,313

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 and Adjusted EBITDA Less Interest, Capex and Taxes for the three months and years ended December 31, 2017 and 2016, respectively (dollars in thousands):

Three Months Ended
December 31,

Years Ended
December 31,

2017

2016

2017

2016

Net (loss) income

$

(27,121)

$

3,211

$

(10,273)

$

23,293

  (Benefit) provision for income taxes

(24,956)

3,713

(13,027)

16,982

  Interest expense, net

8,279

8,332

32,753

34,072

  Transaction costs

569

238

1,175

844

  Depreciation and amortization

5,935

6,159

25,683

23,971

  Stock-based compensation

177

3,590

748

4,253

  Business realignment costs

6,204

6,204

Goodwill and other intangible impairment charges

51,848

51,848

Impairment on investment

4,236

  Repurchase of debt

(85)

(546)

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

850

(91)

1,398

(91)

  Other(a)

(166)

(317)

684

(383)

Adjusted EBITDA

21,619

24,750

97,193

106,631

  Net Cash paid for interest

(11,342)

(12,490)

(29,917)

(32,371)

  Capital expenditures

(4,655)

(3,896)

(22,824)

(20,722)

  Cash paid for taxes

(1,246)

32

(3,170)

(1,878)

Adjusted EBITDA Less Interest, Capex and Taxes

$

4,376

$

8,396

$

41,282

$

51,660

(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, 2017 (dollars in thousands):

Three Months Ended

Twelve Months
Ended

March 31,
2017

June 30,
2017

September 30,
2017

December 31,
2017

December 31,
2017

Net (loss) income

$

(3,008)

$

5,563

$

14,293

$

(27,121)

$

(10,273)

  (Benefit) provision for income taxes

(1,997)

3,810

10,116

(24,956)

(13,027)

  Interest expense, net

8,254

7,990

8,230

8,279

32,753

  Transaction costs

199

189

218

569

1,175

  Depreciation and amortization

6,383

6,828

6,537

5,935

25,683

  Stock-based compensation

188

183

200

177

748

  Business realignment costs

6,204

6,204

Goodwill and other intangible
impairment charges

51,848

51,848

Net loss from discontinued operations,
net of income taxes

165

181

202

850

1,398

  Other(a)

31

732

87

(166)

684

Adjusted EBITDA

$

10,215

$

25,476

$

39,883

$

21,619

$

97,193

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

The following tables reconcile segment operating income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted Segment Operating Income (Loss) for the three months and years ended December 31, 2017 and 2016, respectively (dollars in thousands):

Three Months Ended December 31,

2017

2016

2017

2016

Local Marketing Solutions

Entertainment

Segment operating income (loss)

$

23,788

$

28,961

$

(58,211)

$

(3,473)

Depreciation and amortization

3,127

3,088

2,269

2,086

Stock-based compensation

35

768

11

369

Business realignment costs

6,204

Goodwill and other intangible impairment charges

2,915

48,933

Adjusted Segment Operating Income (Loss)

$

29,865

$

32,817

$

(794)

$

(1,018)

Years Ended December 31,

2017

2016

2017

2016

Local Marketing Solutions

Entertainment

Segment operating income (loss)

$

96,631

$

105,430

$

(55,395)

$

4,106

Depreciation and amortization

14,458

12,612

9,043

8,545

Stock-based compensation

132

863

101

445

Business realignment costs

6,204

Goodwill and other intangible impairment charges

2,915

48,933

Adjusted Segment Operating Income

$

114,136

$

118,905

$

8,886

$

13,096

Reconciliation of Net revenue to Net revenue, excluding political revenue for the three months and years ended December 31, 2017 and 2016, respectively (dollars in thousands):

Three Months Ended
December 31,

%

Years Ended
December 31,

%

2017

2016

Change

2017

2016

Change

Consolidated:

Net revenue

$

114,255

$

118,650

(3.7)%

$

507,434

$

515,995

(1.7)%

  Less: Political revenue

1,187

5,320

(77.7)%

2,428

9,017

(73.1)%

Net revenue, excluding political revenue

$

113,068

$

113,330

(0.2)%

$

505,006

$

506,978

(0.4)%

Local Marketing Solutions Segment:

Net revenue

$

91,648

$

91,277

0.4%

$

348,660

$

342,191

1.9%

  Less: Political revenue

1,187

5,320

(77.7)%

2,428

9,017

(73.1)%

Net revenue, excluding political revenue

$

90,461

$

85,957

5.2%

$

346,232

$

333,174

3.9%

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/townsquare-reports-fourth-quarter-and-full-year-2017-results-300612809.html

SOURCE Townsquare Media, Inc.

Related Links

http://www.townsquaremedia.com

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