iHeartMedia, Inc. Reports Results for 2024 Second Quarter
Financial Highlights: 1
Q2 2024 Consolidated Results
-
Q2 Revenue of
$929 million , up 1.0%; above guidance of approximately flat- Excluding Q2 Political Revenue, Q2 Revenue flat
-
GAAP Operating loss of
$910 million vs.$897 million in Q2 2023, including non-cash impairment charges of$920 million in Q2 2024 and$961 million in Q2 2023 -
Consolidated Adjusted EBITDA of
$150 million , within previously disclosed guidance range of$140 million to$160 million , compared to$191 million in Q2 2023 -
Cash provided by operating activities of
$27 million -
Free Cash Flow of
$6 million -
Cash balance and total available liquidity2 of
$365 million and$791 million , respectively, as ofJune 30, 2024
Q2 2024 Digital Audio Group Results
-
Digital Audio Group Revenue of
$286 million up 10%-
Podcast Revenue of
$105 million up 8% -
Digital Revenue excluding Podcast of
$181 million up 10%
-
Podcast Revenue of
-
Segment Adjusted EBITDA of
$92 million up 9%- Digital Audio Group Adjusted EBITDA margin of 32.2%
Q2 2024 Multiplatform Group Results
-
Multiplatform Group Revenue of
$576 million down 3%-
Excluding Multiplatform Group Q2 Political Revenue,
Multiplatform Group Q2 Revenue down 4%
-
Excluding Multiplatform Group Q2 Political Revenue,
-
Segment Adjusted EBITDA of
$104 million down 36%- Multiplatform Group Adjusted EBITDA margin of 18.1%
Guidance
- Q3 Consolidated Revenue expected to increase in the mid-single digits
- Full Year 2024 Consolidated Revenue expected to increase in the mid-single digits
-
Q3 Consolidated Adjusted EBITDA3 expected to be
$200 million to$220 million -
Full Year 2024 Consolidated Adjusted EBITDA3 expected to be
$760 million to$800 million - Remain committed to long term target of approximately 4x Net Debt to Adjusted EBITDA ("net leverage")3
Statement from Senior Management
“Our second quarter results mark the first quarter that our consolidated revenues increased year-over-year since Q4 2022. We continue to see strong momentum in our podcast business, our Digital ex. Podcast business, and have seen sequential improvement of our Multiplatform Group’s year-over-year revenue performance,” said
“We continue to see signs of improvement throughout our business and the broader advertising marketplace, and our second quarter 2024 results were in line with, and in the cases of revenue, slightly above guidance. Our high-growth
Consolidated Results of Operations
Second Quarter 2024 Consolidated Results
Our consolidated revenue increased
Consolidated direct operating expenses increased
Consolidated Selling, General & Administrative ("SG&A") expenses increased
Our consolidated GAAP Operating loss was
Adjusted EBITDA decreased to
Cash provided by operating activities was
Business Segments: Results of Operations
Second Quarter 2024 Multiplatform Group Results
(In thousands) |
Three Months Ended
|
|
% |
|
Six Months Ended
|
|
% |
|||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||||
Revenue |
$ |
575,907 |
|
|
$ |
595,944 |
|
|
(3.4 |
)% |
|
$ |
1,069,370 |
|
|
$ |
1,124,957 |
|
|
(4.9 |
)% |
|
Operating expenses1 |
|
471,644 |
|
|
|
433,542 |
|
|
8.8 |
% |
|
|
887,925 |
|
|
|
875,503 |
|
|
1.4 |
% |
|
Segment Adjusted EBITDA |
$ |
104,263 |
|
|
$ |
162,402 |
|
|
(35.8 |
)% |
|
$ |
181,445 |
|
|
$ |
249,454 |
|
|
(27.3 |
)% |
|
Segment Adjusted EBITDA margin |
|
18.1 |
% |
|
|
27.3 |
% |
|
|
|
|
17.0 |
% |
|
|
22.2 |
% |
|
|
|||
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses. |
Revenue from our
Operating expenses increased
Segment Adjusted EBITDA Margin decreased YoY to 18.1% from 27.3%.
Second Quarter 2024 Digital Audio Group Results
(In thousands) |
Three Months Ended
|
|
% |
|
Six Months Ended
|
|
% |
|||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||||
Revenue |
$ |
285,614 |
|
|
$ |
260,854 |
|
|
9.5 |
% |
|
$ |
524,582 |
|
|
$ |
484,250 |
|
|
8.3 |
% |
|
Operating expenses1 |
|
193,744 |
|
|
|
176,272 |
|
|
9.9 |
% |
|
|
364,585 |
|
|
|
345,549 |
|
|
5.5 |
% |
|
Segment Adjusted EBITDA |
$ |
91,870 |
|
|
$ |
84,582 |
|
|
8.6 |
% |
|
$ |
159,997 |
|
|
$ |
138,701 |
|
|
15.4 |
% |
|
Segment Adjusted EBITDA margin |
|
32.2 |
% |
|
|
32.4 |
% |
|
|
|
|
30.5 |
% |
|
|
28.6 |
% |
|
|
|||
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses. |
Revenue from our
Operating expenses increased
Segment Adjusted EBITDA Margin decreased YoY to 32.2% from 32.4%.
Second Quarter 2024 Audio & Media Services Group Results
(In thousands) |
Three Months Ended
|
|
% |
|
Six Months Ended
|
|
% |
|||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||||
Revenue |
$ |
70,082 |
|
|
$ |
65,804 |
|
|
6.5 |
% |
|
$ |
139,250 |
|
|
$ |
127,155 |
|
|
9.5 |
% |
|
Operating expenses1 |
|
46,233 |
|
|
|
47,305 |
|
|
(2.3 |
)% |
|
|
91,706 |
|
|
|
93,312 |
|
|
(1.7 |
)% |
|
Segment Adjusted EBITDA |
$ |
23,849 |
|
|
$ |
18,499 |
|
|
28.9 |
% |
|
$ |
47,544 |
|
|
$ |
33,843 |
|
|
40.5 |
% |
|
Segment Adjusted EBITDA margin |
|
34.0 |
% |
|
|
28.1 |
% |
|
|
|
|
34.1 |
% |
|
|
26.6 |
% |
|
|
|||
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses. |
Revenue from our
Operating expenses decreased
Segment Adjusted EBITDA Margin increased YoY to 34.0% from 28.1%.
GAAP and Non-GAAP Measures: Consolidated
(In thousands) |
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Revenue |
$ |
929,092 |
|
|
$ |
920,014 |
|
|
$ |
1,728,130 |
|
|
$ |
1,731,253 |
|
|
Operating loss |
|
(909,667 |
) |
|
|
(897,194 |
) |
|
$ |
(944,375 |
) |
|
$ |
(946,056 |
) |
|
Adjusted EBITDA1 |
|
150,207 |
|
|
|
191,181 |
|
|
$ |
254,824 |
|
|
$ |
284,605 |
|
|
Net loss |
|
(981,989 |
) |
|
|
(882,982 |
) |
|
$ |
(1,000,097 |
) |
|
$ |
(1,105,345 |
) |
|
Cash provided by (used for) operating activities2 |
|
26,729 |
|
|
|
56,772 |
|
|
$ |
(32,548 |
) |
|
$ |
(37,211 |
) |
|
Free cash flow1,2 |
|
5,557 |
|
|
|
33,999 |
|
|
$ |
(75,302 |
) |
|
$ |
(99,149 |
) |
______________________________ |
||
1 |
See the end of this press release for reconciliations of (i) Adjusted EBITDA to Operating loss, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to Cash provided by (used for) operating activities, (iv) revenue, excluding political advertising revenue, to revenue, and (v) Net Debt to Total Debt. See also the definitions of Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA margin, and Net Debt under the Supplemental Disclosure Regarding Non-GAAP Financial Information section in this release. |
|
2 |
We made cash interest payments of |
Certain prior period amounts have been reclassified to conform to the 2024 presentation of financial information throughout the press release.
Liquidity and Financial Position
As of
Capital expenditures for the six months ended
As of
Cash balance and total available liquidity4 were
Revenue Streams
The tables below present the comparison of our historical revenue streams (including political revenue) for the periods presented:
(In thousands) |
Three Months Ended
|
|
% |
|
Six Months Ended
|
|
% |
|||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||||
Broadcast Radio |
$ |
425,490 |
|
|
$ |
429,152 |
|
|
(0.9 |
)% |
|
$ |
784,828 |
|
|
$ |
812,390 |
|
|
(3.4 |
)% |
|
Networks |
|
106,591 |
|
|
|
122,168 |
|
|
(12.8 |
)% |
|
|
208,642 |
|
|
|
230,122 |
|
|
(9.3 |
)% |
|
Sponsorship and Events |
|
39,121 |
|
|
|
38,210 |
|
|
2.4 |
% |
|
|
66,950 |
|
|
|
70,797 |
|
|
(5.4 |
)% |
|
Other |
|
4,705 |
|
|
|
6,414 |
|
|
(26.6 |
)% |
|
|
8,950 |
|
|
|
11,648 |
|
|
(23.2 |
)% |
|
|
|
575,907 |
|
|
|
595,944 |
|
|
(3.4 |
)% |
|
|
1,069,370 |
|
|
|
1,124,957 |
|
|
(4.9 |
)% |
|
Digital ex. Podcast |
|
181,093 |
|
|
|
164,147 |
|
|
10.3 |
% |
|
|
329,437 |
|
|
|
310,732 |
|
|
6.0 |
% |
|
Podcast |
|
104,521 |
|
|
|
96,707 |
|
|
8.1 |
% |
|
|
195,145 |
|
|
|
173,518 |
|
|
12.5 |
% |
|
|
|
285,614 |
|
|
|
260,854 |
|
|
9.5 |
% |
|
|
524,582 |
|
|
|
484,250 |
|
|
8.3 |
% |
|
|
|
70,082 |
|
|
|
65,804 |
|
|
6.5 |
% |
|
|
139,250 |
|
|
|
127,155 |
|
|
9.5 |
% |
|
Eliminations |
|
(2,511 |
) |
|
|
(2,588 |
) |
|
|
|
|
(5,072 |
) |
|
|
(5,109 |
) |
|
|
|||
Revenue, total1 |
$ |
929,092 |
|
|
$ |
920,014 |
|
|
1.0 |
% |
|
$ |
1,728,130 |
|
|
$ |
1,731,253 |
|
|
(0.2 |
)% |
1 |
Excluding the impact of political revenue, Revenue from the |
Conference Call
About
iHeartMedia (Nasdaq: IHRT) is the number one audio company in
With its quarter of a billion monthly listeners, the iHeartMedia
The iHeartMedia
The Company’s Audio & Media Services reportable segment includes
Certain statements herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors which may cause the actual results, performance or achievements of
APPENDIX
TABLE 1 - Comparison of operating performance
(In thousands) |
Three Months Ended
|
|
% |
|
Six Months Ended
|
|
% |
|||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||||
Revenue |
$ |
929,092 |
|
|
$ |
920,014 |
|
|
1.0 |
% |
|
$ |
1,728,130 |
|
|
$ |
1,731,253 |
|
|
(0.2 |
)% |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Direct operating expenses (excludes depreciation and amortization) |
|
382,049 |
|
|
|
355,061 |
|
|
7.6 |
% |
|
|
723,409 |
|
|
|
699,681 |
|
|
3.4 |
% |
|
Selling, general and administrative expenses (excludes depreciation and amortization) |
|
431,614 |
|
|
|
393,773 |
|
|
9.6 |
% |
|
|
816,758 |
|
|
|
796,574 |
|
|
2.5 |
% |
|
Depreciation and amortization |
|
104,356 |
|
|
|
108,065 |
|
|
|
|
|
209,518 |
|
|
|
216,577 |
|
|
|
|||
Impairment charges |
|
920,224 |
|
|
|
960,570 |
|
|
|
|
|
921,732 |
|
|
|
964,517 |
|
|
|
|||
Other operating (income) expense, net |
|
516 |
|
|
|
(261 |
) |
|
|
|
|
1,088 |
|
|
|
(40 |
) |
|
|
|||
Operating loss |
$ |
(909,667 |
) |
|
$ |
(897,194 |
) |
|
|
|
$ |
(944,375 |
) |
|
$ |
(946,056 |
) |
|
|
|||
Depreciation and amortization |
|
104,356 |
|
|
|
108,065 |
|
|
|
|
|
209,518 |
|
|
|
216,577 |
|
|
|
|||
Impairment charges |
|
920,224 |
|
|
|
960,570 |
|
|
|
|
|
921,732 |
|
|
|
964,517 |
|
|
|
|||
Other operating (income) expense, net |
|
516 |
|
|
|
(261 |
) |
|
|
|
|
1,088 |
|
|
|
(40 |
) |
|
|
|||
Restructuring expenses |
|
27,558 |
|
|
|
10,789 |
|
|
|
|
|
51,161 |
|
|
|
30,243 |
|
|
|
|||
Share-based compensation expense |
|
7,220 |
|
|
|
9,212 |
|
|
|
|
|
15,700 |
|
|
|
19,364 |
|
|
|
|||
Adjusted EBITDA1 |
$ |
150,207 |
|
|
$ |
191,181 |
|
|
(21.4 |
)% |
|
$ |
254,824 |
|
|
$ |
284,605 |
|
|
(10.5 |
)% |
|
1See the end of this press release for reconciliations of (i) Adjusted EBITDA to Operating loss, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to Cash provided by (used for) operating activities, (iv) revenue, excluding political advertising revenue, to revenue, and (v) Net Debt to Total Debt. See also the definitions of Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA margin and Net Debt under the Supplemental Disclosure section in this release. |
TABLE 2 - Statements of Operations
(In thousands) |
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Revenue |
$ |
929,092 |
|
|
$ |
920,014 |
|
|
$ |
1,728,130 |
|
|
$ |
1,731,253 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Direct operating expenses (excludes depreciation and amortization) |
|
382,049 |
|
|
|
355,061 |
|
|
|
723,409 |
|
|
|
699,681 |
|
|
Selling, general and administrative expenses (excludes depreciation and amortization) |
|
431,614 |
|
|
|
393,773 |
|
|
|
816,758 |
|
|
|
796,574 |
|
|
Depreciation and amortization |
|
104,356 |
|
|
|
108,065 |
|
|
|
209,518 |
|
|
|
216,577 |
|
|
Impairment charges |
|
920,224 |
|
|
|
960,570 |
|
|
|
921,732 |
|
|
|
964,517 |
|
|
Other operating (income) expense, net |
|
516 |
|
|
|
(261 |
) |
|
|
1,088 |
|
|
|
(40 |
) |
|
Operating loss |
|
(909,667 |
) |
|
|
(897,194 |
) |
|
|
(944,375 |
) |
|
|
(946,056 |
) |
|
Interest expense, net |
|
95,577 |
|
|
|
98,693 |
|
|
|
191,092 |
|
|
|
194,150 |
|
|
Gain (loss) on investments, net |
|
(412 |
) |
|
|
(6,038 |
) |
|
|
91,582 |
|
|
|
(12,543 |
) |
|
Equity in loss of nonconsolidated affiliates |
|
(61 |
) |
|
|
(44 |
) |
|
|
(106 |
) |
|
|
(4 |
) |
|
Gain on extinguishment of debt |
|
— |
|
|
|
22,902 |
|
|
|
— |
|
|
|
27,527 |
|
|
Other expense, net |
|
(231 |
) |
|
|
(272 |
) |
|
|
(727 |
) |
|
|
(371 |
) |
|
Loss before income taxes |
|
(1,005,948 |
) |
|
|
(979,339 |
) |
|
|
(1,044,718 |
) |
|
|
(1,125,597 |
) |
|
Income tax benefit |
|
23,959 |
|
|
|
96,357 |
|
|
|
44,621 |
|
|
|
20,252 |
|
|
Net loss |
|
(981,989 |
) |
|
|
(882,982 |
) |
|
|
(1,000,097 |
) |
|
|
(1,105,345 |
) |
|
Less amount attributable to noncontrolling interest |
|
(331 |
) |
|
|
1,488 |
|
|
|
69 |
|
|
|
1,385 |
|
|
Net loss attributable to the Company |
$ |
(981,658 |
) |
|
$ |
(884,470 |
) |
|
$ |
(1,000,166 |
) |
|
$ |
(1,106,730 |
) |
TABLE 3 - Selected Balance Sheet Information
Selected balance sheet information for
(In millions) |
|
|
|
|||||
Cash |
$ |
364.7 |
|
|
$ |
346.4 |
|
|
Total Current Assets |
|
1,422.3 |
|
|
|
1,506.9 |
|
|
Net Property, Plant and Equipment |
|
511.3 |
|
|
|
558.9 |
|
|
Total Assets |
|
5,769.2 |
|
|
|
6,952.6 |
|
|
Current Liabilities (excluding current portion of long-term debt) |
|
738.4 |
|
|
|
848.1 |
|
|
Long-term Debt (including current portion of long-term debt) |
|
5,218.8 |
|
|
|
5,215.2 |
|
|
Stockholders' Deficit |
|
(1,374.6 |
) |
|
|
(384.8 |
) |
Supplemental Disclosure Regarding Non-GAAP Financial Information
The following tables set forth the Company’s Adjusted EBITDA, Adjusted EBITDA margin, revenues excluding political advertising revenue, and Free Cash Flow for the three and six months ended
The Company uses Adjusted EBITDA and Adjusted EBITDA margin, among other measures, to evaluate the Company’s operating performance. Adjusted EBITDA is among the primary measures used by management for the planning and forecasting of future periods, as well as for measuring performance for compensation of executives and other members of management. We believe this measure is an important indicator of the Company’s operational strength and performance of its business because it provides a link between operational performance and operating income. It is also a primary measure used by management in evaluating companies as potential acquisition targets.
The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company’s management. The Company believes it helps improve investors’ ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that have different capital structures or tax rates. In addition, the Company believes this measure is also among the primary measures used externally by the Company’s investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry.
Since Adjusted EBITDA is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Operating loss as an indicator of operating performance and may not be comparable to similarly titled measures employed by other companies. Adjusted EBITDA is not necessarily a measure of the Company’s ability to fund its cash needs. As it excludes certain financial information compared with Operating loss, the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded.
We define Free Cash Flow as Cash provided by (used for) operating activities less capital expenditures, which is disclosed as Purchases of property, plant and equipment in the Company's Consolidated Statements of Cash Flows. We use Free Cash Flow, among other measures, to evaluate the Company’s liquidity and its ability to generate cash flow. We believe that Free Cash Flow is meaningful to investors because it provides them with a view of the Company's liquidity after deducting capital expenditures, which are considered to be a necessary component of ongoing operations. In addition, we believe that Free Cash Flow helps improve investors' ability to compare our liquidity with that of other companies.
Since Free Cash Flow is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Cash provided by (used for) operating activities and may not be comparable to similarly titled measures employed by other companies. Free Cash Flow is not necessarily a measure of our ability to fund our cash needs.
The Company presents revenue, excluding the effects of political revenue. Due to the cyclical nature of the electoral system and the seasonality of the related political revenue, management believes presenting revenue, excluding the effects of political revenue, provides additional information to investors about the Company’s revenue growth from period to period.
We define Net Debt as Total Debt less Cash and cash equivalents. We define net leverage as Net Debt divided by Adjusted EBITDA. The Company uses net leverage and Net Debt to evaluate the Company's liquidity. We believe these measures are an important indicator of the Company's ability to service its long-term debt obligations.
Since these non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance or liquidity.
As required by the
We have provided forecasted Consolidated Revenue and Adjusted EBITDA guidance for the quarter ending
Reconciliation of Operating loss to Adjusted EBITDA
(In thousands) |
Three Months Ended
|
|
Six Months Ended
|
|
Three Months Ended |
|||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|||||||||||
Operating loss |
$ |
(909,667 |
) |
|
$ |
(897,194 |
) |
|
$ |
(944,375 |
) |
|
$ |
(946,056 |
) |
|
$ |
(34,708 |
) |
|
Depreciation and amortization |
|
104,356 |
|
|
|
108,065 |
|
|
|
209,518 |
|
|
|
216,577 |
|
|
|
105,162 |
|
|
Impairment charges |
|
920,224 |
|
|
|
960,570 |
|
|
|
921,732 |
|
|
|
964,517 |
|
|
|
1,508 |
|
|
Other operating (income) expense, net |
|
516 |
|
|
|
(261 |
) |
|
|
1,088 |
|
|
|
(40 |
) |
|
|
572 |
|
|
Restructuring expenses |
|
27,558 |
|
|
|
10,789 |
|
|
|
51,161 |
|
|
|
30,243 |
|
|
|
23,603 |
|
|
Share-based compensation expense |
|
7,220 |
|
|
|
9,212 |
|
|
|
15,700 |
|
|
|
19,364 |
|
|
|
8,480 |
|
|
Adjusted EBITDA |
$ |
150,207 |
|
|
$ |
191,181 |
|
|
$ |
254,824 |
|
|
$ |
284,605 |
|
|
$ |
104,617 |
|
Reconciliation of Net loss to EBITDA and Adjusted EBITDA
(In thousands) |
Three Months Ended
|
|
Six Months Ended
|
|
Three Months Ended |
|||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|||||||||||
Net loss |
$ |
(981,989 |
) |
|
$ |
(882,982 |
) |
|
$ |
(1,000,097 |
) |
|
$ |
(1,105,345 |
) |
|
$ |
(18,108 |
) |
|
Income tax benefit |
|
(23,959 |
) |
|
|
(96,357 |
) |
|
|
(44,621 |
) |
|
|
(20,252 |
) |
|
|
(20,662 |
) |
|
Interest expense, net |
|
95,577 |
|
|
|
98,693 |
|
|
|
191,092 |
|
|
|
194,150 |
|
|
|
95,515 |
|
|
Depreciation and amortization |
|
104,356 |
|
|
|
108,065 |
|
|
|
209,518 |
|
|
|
216,577 |
|
|
|
105,162 |
|
|
EBITDA |
$ |
(806,015 |
) |
|
$ |
(772,581 |
) |
|
$ |
(644,108 |
) |
|
$ |
(714,870 |
) |
|
$ |
161,907 |
|
|
(Gain) loss on investments, net |
|
412 |
|
|
|
6,038 |
|
|
|
(91,582 |
) |
|
|
12,543 |
|
|
|
(91,994 |
) |
|
Gain on extinguishment of debt |
|
— |
|
|
|
(22,902 |
) |
|
|
— |
|
|
|
(27,527 |
) |
|
|
— |
|
|
Other expense, net |
|
231 |
|
|
|
272 |
|
|
|
727 |
|
|
|
371 |
|
|
|
496 |
|
|
Equity in loss of nonconsolidated affiliates |
|
61 |
|
|
|
44 |
|
|
|
106 |
|
|
|
4 |
|
|
|
45 |
|
|
Impairment charges |
|
920,224 |
|
|
|
960,570 |
|
|
|
921,732 |
|
|
|
964,517 |
|
|
|
1,508 |
|
|
Other operating (income) expense, net |
|
516 |
|
|
|
(261 |
) |
|
|
1,088 |
|
|
|
(40 |
) |
|
|
572 |
|
|
Restructuring expenses |
|
27,558 |
|
|
|
10,789 |
|
|
|
51,161 |
|
|
|
30,243 |
|
|
|
23,603 |
|
|
Share-based compensation expense |
|
7,220 |
|
|
|
9,212 |
|
|
|
15,700 |
|
|
|
19,364 |
|
|
|
8,480 |
|
|
Adjusted EBITDA |
$ |
150,207 |
|
|
$ |
191,181 |
|
|
$ |
254,824 |
|
|
$ |
284,605 |
|
|
$ |
104,617 |
|
Reconciliation of Cash provided by (used for) operating activities to Free Cash Flow
(In thousands) |
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Cash provided by (used for) operating activities |
$ |
26,729 |
|
|
$ |
56,772 |
|
|
$ |
(32,548 |
) |
|
$ |
(37,211 |
) |
|
Purchases of property, plant and equipment |
|
(21,172 |
) |
|
|
(22,773 |
) |
|
|
(42,754 |
) |
|
|
(61,938 |
) |
|
Free cash flow |
$ |
5,557 |
|
|
$ |
33,999 |
|
|
$ |
(75,302 |
) |
|
$ |
(99,149 |
) |
Reconciliation of Revenue to Revenue excluding
(In thousands) |
Three Months Ended
|
|
% Change |
|
Six Months Ended
|
|
% Change |
|||||||||||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|||||||||||||
Consolidated revenue |
$ |
929,092 |
|
|
$ |
920,014 |
|
|
1.0 |
% |
|
$ |
1,728,130 |
|
|
$ |
1,731,253 |
|
|
(0.2 |
)% |
|
Excluding: Political revenue |
|
(14,907 |
) |
|
|
(6,665 |
) |
|
|
|
|
(26,534 |
) |
|
|
(10,268 |
) |
|
|
|||
Consolidated revenue, excluding political |
$ |
914,185 |
|
|
$ |
913,349 |
|
|
0.1 |
% |
|
$ |
1,701,596 |
|
|
$ |
1,720,985 |
|
|
(1.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
$ |
575,907 |
|
|
$ |
595,944 |
|
|
(3.4 |
)% |
|
$ |
1,069,370 |
|
|
$ |
1,124,957 |
|
|
(4.9 |
)% |
|
Excluding: Political revenue |
|
(8,025 |
) |
|
|
(4,344 |
) |
|
|
|
|
(15,688 |
) |
|
|
(7,829 |
) |
|
|
|||
|
$ |
567,882 |
|
|
$ |
591,600 |
|
|
(4.0 |
)% |
|
$ |
1,053,682 |
|
|
$ |
1,117,128 |
|
|
(5.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
$ |
285,614 |
|
|
$ |
260,854 |
|
|
9.5 |
% |
|
$ |
524,582 |
|
|
$ |
484,250 |
|
|
8.3 |
% |
|
Excluding: Political revenue |
|
(1,210 |
) |
|
|
(846 |
) |
|
|
|
|
(1,481 |
) |
|
|
(1,346 |
) |
|
|
|||
|
$ |
284,404 |
|
|
$ |
260,008 |
|
|
9.4 |
% |
|
$ |
523,101 |
|
|
$ |
482,904 |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Audio & Media Group Services revenue |
$ |
70,082 |
|
|
$ |
65,804 |
|
|
6.5 |
% |
|
$ |
139,250 |
|
|
$ |
127,155 |
|
|
9.5 |
% |
|
Excluding: Political revenue |
|
(5,672 |
) |
|
|
(1,475 |
) |
|
|
|
|
(9,365 |
) |
|
|
(1,093 |
) |
|
|
|||
|
$ |
64,410 |
|
|
$ |
64,329 |
|
|
0.1 |
% |
|
$ |
129,885 |
|
|
$ |
126,062 |
|
|
3.0 |
% |
Reconciliation of Total Debt to Net Debt
(In thousands) |
|
||
Current portion of long-term debt |
$ |
621 |
|
Long-term debt |
|
5,218,194 |
|
Total debt |
$ |
5,218,815 |
|
Less: Cash and cash equivalents |
|
364,744 |
|
Net debt |
$ |
4,854,071 |
Segment Results
The following tables present the Company's segment results for the Company for the periods presented:
|
Segments |
|
|
|
|
|
|
||||||||||||||||
(In thousands) |
|
|
|
|
|
|
Corporate and other reconciling items |
|
Eliminations |
|
Consolidated |
||||||||||||
Three Months Ended |
|||||||||||||||||||||||
Revenue |
$ |
575,907 |
|
|
$ |
285,614 |
|
|
$ |
70,082 |
|
|
$ |
— |
|
|
$ |
(2,511 |
) |
|
$ |
929,092 |
|
Operating expenses(1) |
|
471,644 |
|
|
|
193,744 |
|
|
|
46,233 |
|
|
|
69,775 |
|
|
|
(2,511 |
) |
|
|
778,885 |
|
Adjusted EBITDA |
$ |
104,263 |
|
|
$ |
91,870 |
|
|
$ |
23,849 |
|
|
$ |
(69,775 |
) |
|
$ |
— |
|
|
$ |
150,207 |
|
Adjusted EBITDA margin |
|
18.1 |
% |
|
|
32.2 |
% |
|
|
34.0 |
% |
|
|
|
|
|
|
16.2 |
% |
||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
(104,356 |
) |
||||||||||
Impairment charges |
|
|
|
|
|
|
|
|
|
|
|
(920,224 |
) |
||||||||||
Other operating expense, net |
|
|
|
|
|
|
|
|
|
|
|
(516 |
) |
||||||||||
Restructuring expenses |
|
|
|
|
|
|
|
|
|
|
|
(27,558 |
) |
||||||||||
Share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
(7,220 |
) |
||||||||||
Operating loss |
|
|
|
|
|
|
|
|
|
|
$ |
(909,667 |
) |
||||||||||
Operating margin |
|
|
|
|
|
|
|
|
|
|
|
(97.9 |
)% |
|
Segments |
|
|
|
|
|
|
||||||||||||||||
(In thousands) |
|
|
|
|
|
|
Corporate and other reconciling items |
|
Eliminations |
|
Consolidated |
||||||||||||
Three Months Ended |
|||||||||||||||||||||||
Revenue |
$ |
595,944 |
|
|
$ |
260,854 |
|
|
$ |
65,804 |
|
|
$ |
— |
|
|
$ |
(2,588 |
) |
|
$ |
920,014 |
|
Operating expenses(1) |
|
433,542 |
|
|
|
176,272 |
|
|
|
47,305 |
|
|
|
74,302 |
|
|
|
(2,588 |
) |
|
|
728,833 |
|
Adjusted EBITDA |
$ |
162,402 |
|
|
$ |
84,582 |
|
|
$ |
18,499 |
|
|
$ |
(74,302 |
) |
|
$ |
— |
|
|
$ |
191,181 |
|
Adjusted EBITDA margin |
|
27.3 |
% |
|
|
32.4 |
% |
|
|
28.1 |
% |
|
|
|
|
|
|
20.8 |
% |
||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
(108,065 |
) |
||||||||||
Impairment charges |
|
|
|
|
|
|
|
|
|
|
|
(960,570 |
) |
||||||||||
Other operating income, net |
|
|
|
|
|
|
|
|
|
|
|
261 |
|
||||||||||
Restructuring expenses |
|
|
|
|
|
|
|
|
|
|
|
(10,789 |
) |
||||||||||
Share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
(9,212 |
) |
||||||||||
Operating loss |
|
|
|
|
|
|
|
|
|
|
$ |
(897,194 |
) |
||||||||||
Operating margin |
|
|
|
|
|
|
|
|
|
|
|
(97.5 |
)% |
||||||||||
(1) Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses and share-based compensation expenses. |
|
Segments |
|
|
|
|
|
|
|||||||||||||||||
(In thousands) |
|
|
|
|
|
|
Corporate and other reconciling items |
|
Eliminations |
|
Consolidated |
|||||||||||||
Six Months Ended |
||||||||||||||||||||||||
Revenue |
$ |
1,069,370 |
|
|
|
524,582 |
|
|
$ |
139,250 |
|
|
$ |
— |
|
|
$ |
(5,072 |
) |
|
$ |
1,728,130 |
|
|
Operating expenses(1) |
|
887,925 |
|
|
|
364,585 |
|
|
|
91,706 |
|
|
|
134,162 |
|
|
|
(5,072 |
) |
|
|
1,473,306 |
|
|
Adjusted EBITDA |
$ |
181,445 |
|
|
$ |
159,997 |
|
|
$ |
47,544 |
|
|
$ |
(134,162 |
) |
|
$ |
— |
|
|
$ |
254,824 |
|
|
Adjusted EBITDA margin |
|
17.0 |
% |
|
|
30.5 |
% |
|
|
34.1 |
% |
|
|
|
|
|
|
14.7 |
% |
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
(209,518 |
) |
|||||||||||
Impairment charges |
|
|
|
|
|
|
|
|
|
|
|
(921,732 |
) |
|||||||||||
Other operating expense, net |
|
|
|
|
|
|
|
|
|
|
|
(1,088 |
) |
|||||||||||
Restructuring expenses |
|
|
|
|
|
|
|
|
|
|
|
(51,161 |
) |
|||||||||||
Share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
(15,700 |
) |
|||||||||||
Operating loss |
|
|
|
|
|
|
|
|
|
|
$ |
(944,375 |
) |
|||||||||||
Operating margin |
|
|
|
|
|
|
|
|
|
|
|
(54.6 |
)% |
|
Segments |
|
|
|
|
|
|
|||||||||||||||||
(In thousands) |
|
|
|
|
|
|
Corporate and other reconciling items |
|
Eliminations |
|
Consolidated |
|||||||||||||
Six Months Ended |
||||||||||||||||||||||||
Revenue |
$ |
1,124,957 |
|
|
$ |
484,250 |
|
|
$ |
127,155 |
|
|
$ |
— |
|
|
$ |
(5,109 |
) |
|
$ |
1,731,253 |
|
|
Operating expenses(1) |
|
875,503 |
|
|
|
345,549 |
|
|
|
93,312 |
|
|
|
137,393 |
|
|
|
(5,109 |
) |
|
|
1,446,648 |
|
|
Adjusted EBITDA |
$ |
249,454 |
|
|
$ |
138,701 |
|
|
$ |
33,843 |
|
|
$ |
(137,393 |
) |
|
$ |
— |
|
|
$ |
284,605 |
|
|
Adjusted EBITDA margin |
|
22.2 |
% |
|
|
28.6 |
% |
|
|
26.6 |
% |
|
|
|
|
|
|
16.4 |
% |
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
(216,577 |
) |
|||||||||||
Impairment charges |
|
|
|
|
|
|
|
|
|
|
|
(964,517 |
) |
|||||||||||
Other operating income, net |
|
|
|
|
|
|
|
|
|
|
|
40 |
|
|||||||||||
Restructuring expenses |
|
|
|
|
|
|
|
|
|
|
|
(30,243 |
) |
|||||||||||
Share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
(19,364 |
) |
|||||||||||
Operating loss |
|
|
|
|
|
|
|
|
|
|
$ |
(946,056 |
) |
|||||||||||
Operating margin |
|
|
|
|
|
|
|
|
|
|
|
(54.6 |
)% |
|||||||||||
(1) Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses and share-based compensation expenses. |
______________________________ |
1 Unless otherwise noted, all results are based on year over year comparisons. |
2 Total available liquidity is defined as cash and cash equivalents plus available borrowings under our ABL Facility. We use total available liquidity to evaluate our capacity to access cash to meet obligations and fund operations. |
3 A full reconciliation of forecasted Adjusted EBITDA, net debt and net leverage on a non-GAAP basis to the respective most-directly comparable GAAP metrics cannot be provided without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliations, including gains or losses on investments, extinguishment of debt, equity in nonconsolidated affiliates, impairment charges, stock based compensation, and restructuring as well as the Company’s cash and cash equivalents balance. |
4 Total available liquidity is defined as cash and cash equivalents plus available borrowings under our ABL Facility. We use total available liquidity to evaluate our capacity to access cash to meet obligations and fund operations. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808585847/en/
Media
Chief Communications Officer
(212) 377-1105
wendygoldberg@iheartmedia.com
Investors
EVP, Deputy CFO, and Head of Investor Relations
(212) 377-1336
mbm@iheartmedia.com
Source: