Audacy, Inc. (NYSE: AUD) today reported financial results for
the quarter and year ended December 31, 2022.
Fourth Quarter Summary
- Net revenues for the quarter were $342.0 million, down 0.8%
compared to $344.7 million in the fourth quarter of 2021. Excluding
political revenue, revenues for the quarter were down 4%
- Digital revenues were $69.1 million, up 2% compared to the
fourth quarter of 2021
- Total operating expenses for the quarter were $295.6 million,
which includes a gain on sale of $34.5 million, compared to $292.0
million in the fourth quarter of 2021, which included a gain on
sale of $4.6 million
- Cash operating expenses were up 9% compared to the fourth
quarter of 2021
- Operating income for the quarter was $46.4 million, compared to
operating income of $52.7 million in the fourth quarter of
2021
- Adjusted EBITDA for the quarter was $37.1 million, compared to
$66.2 million in the fourth quarter of 2021
- As of December 31, 2022, the Company’s liquidity was $144.8
million, up from $115.4 at September 30, 2022
Full Year Summary
- Net revenues for the year were $1.25 billion, up 3% compared to
$1.22 billion in 2021. Excluding political revenue, revenues for
the year were up 2%
- Digital revenues were $259.1 million, up 9% compared to
2021
- Total operating expenses for the year were $1.33 billion, which
includes a non-cash impairment charge of $180.5 million and a gain
on sale of $47.7 million, compared to $1.12 billion in 2021, which
included a gain on sale of $8.4 million
- Cash operating expenses were up 6% compared to 2021
- Operating loss for the year was $73.7 million, compared to
operating income of $95.4 million in 2021
- Adjusted EBITDA for the year was $137.9 million, compared to
$165.7 million in 2021
David J. Field, Chairman, President and Chief Executive Officer,
stated: “Having started 2022 on a great note with revenues up 14%
in the first quarter, we ended the year with revenues down 0.8% in
the fourth quarter as challenging ad market conditions persisted.
For the full year, revenues were up 3%. Fourth quarter expenses
grew 9% due to accelerated recognition of podcast expenses, but we
anticipate that expenses will be up low single digits in the first
quarter and fall below 2022 levels beginning in the second
quarter.
We continue to vigorously execute our plan to navigate the storm
and to position the company for recovery when business conditions
improve. Our liquidity improved from $115 million at the end of
September to $145 million at year end. With the sale earlier this
month of $17 million of towers, we have now completed $73 million
in non-strategic asset sales to bolster our liquidity and to
support our continued compliance with our financial covenants.
We are making solid progress on our key growth drivers including
our reinvented streaming audio platform, our national enterprise
business development, our podcasting and digital marketing
solutions businesses, and our promising ad tech and ad product
roadmap.
Looking beyond the challenging current macro environment, Audacy
has a strong and differentiated, scaled, competitive position in
the dynamic and growing audio space and is deeply focused on
continuing the work to capitalize on the opportunities and drive a
healthy recovery.”
Recent Company Developments
- Non-strategic Asset Sale. In February, the Company
completed the sale of select tower assets for $17 million.
- Amendment to Receivables Purchase Agreement. In January,
the Company entered into an amendment to its Receivables Purchase
Agreement that reduces the minimum liquidity the Company is
required to maintain to $25 million and aligns the Company’s
obligations to deliver audited annual financial statements under
the Receivables Purchase Agreement to its obligations to deliver
such financial statements under its Credit Agreement.
Earnings Conference Call and Company Information
Audacy will hold a conference call and simultaneous webcast
regarding the quarterly earnings release on Wednesday, March 15,
2023, at 10:00 AM Eastern Time.
To participate in the conference call, please dial (877)
407-9208 or (201) 493-6784 five minutes prior to the start of the
call and provide the following conference name: Audacy, Inc.
Fourth Quarter 2022 Earnings Call. Participants may also listen
to a live webcast of the call by visiting
https://viavid.webcasts.com/starthere.jsp?ei=1585970&tp_key=af70e5a4ce.
Questions will only be taken from participants on the conference
call.
A playback of the conference call will be available for one week
by dialing (844) 512-2921 or (412) 317-6671 and inputting the
following ID: 13734676. A webcast replay of the conference will be
available shortly after the call at the above link.
Additional information is available at www.audacyinc.com.
About Audacy
Audacy, Inc. (NYSE: AUD) is a leading multi-platform audio
content and entertainment company with the country’s best
collection of local music, news and sports brands, a premium
podcast creator, major event producer, and digital innovator.
Audacy engages 200 million consumers each month, bringing people
together around content that matters to them. Learn more at
www.audacyinc.com, Facebook (Audacy Corp) and Twitter
(@AudacyCorp).
Certain Definitions
All references to per share data, unless stated otherwise, are
presented as per diluted share. All references to shares
outstanding, unless stated otherwise, are presented to exclude
unvested restricted stock units. All references to net debt are
outstanding debt net of cash on hand.
Core Spot Revenues consist of local spot plus national spot
advertising revenues less political spot advertising revenues.
Station Expenses consist of station operating expenses excluding
non-cash compensation expense.
Corporate Expenses consist of corporate general and
administrative expenses excluding non-cash compensation
expense.
Adjusted EBITDA consists of net income (loss) available to
common shareholders, adjusted to exclude: income taxes (benefit);
income from discontinued operations, net of income taxes or
benefit; total other income or expense; net interest expense;
depreciation and amortization; time brokerage agreement fees
(income); non-cash compensation expense (which is otherwise
included in station operating expenses and corporate G&A
expenses); refinancing expenses; impairment loss, merger and
acquisition costs, restructuring and integration costs, preferred
stock dividends; COVID-19 related expenses/(recoveries);
non-recurring expenses/recoveries otherwise included in corporate
or station expenses; change in fair value of contingent
consideration; (gain) loss on early extinguishment of debt; and
(gain) loss on sale or disposal.
Adjusted Free Cash Flow consists of net income (loss): (i) plus
depreciation and amortization; (gain) loss on sale or disposal;
non-cash compensation expense (which is otherwise included in
station operating expenses and corporate general and administrative
expenses); impairment loss; merger and acquisition costs;
restructuring and integration costs, (gain) loss on early
extinguishment of debt; COVID-19 related expenses/(recoveries);
other expense/(income); non-recurring expenses/recoveries otherwise
included in corporate or station expenses; change in fair value of
contingent consideration; income from discontinued operations
(excluding income taxes or tax benefit); amortization of deferred
financing costs and debt premium included in interest expense;
refinancing expenses; income taxes (benefit); Adjusted Income Taxes
Paid; and Net Capital Expenditures.
Net Capital Expenditures consists of capital expenditures,
including amortizable intangibles, adjusted to subtract reimbursed
tenant improvement allowances.
Adjusted Income Taxes Paid consist of income tax paid, adjusted
to exclude taxes paid related to the gain/loss on sale or exchange
of radio station assets; and taxes paid related to the gain/loss on
the sale of redundant property.
Non-GAAP Financial Measures
It is important to note that Adjusted EBITDA, Adjusted Free Cash
Flow, Net Capital Expenditures and Adjusted Income Taxes Paid are
not measures of performance or liquidity calculated in accordance
with generally accepted accounting principles (“GAAP”). Management
believes that these measures are useful as a way to evaluate the
Company and the means for Management to evaluate our performance
and operations. Management believes that these measures are useful
to an investor in evaluating our performance because they are
widely used in the broadcast industry.
Certain adjusted non-GAAP financial measures are presented in
this release. The adjustments include, among other items as defined
above, gain/loss on sale of assets, derivative instruments, and
investments; non-cash compensation expense, other income,
impairment loss, merger and acquisition costs, other expenses
related to refinancing, and gain/loss on early extinguishment of
debt and non-recurring expenses recognized for restructuring
charges or similar costs, including transition and integration
costs. Management believes these adjusted non-GAAP measures provide
useful information to Management and investors by excluding certain
income, expenses and gains and losses that may not be indicative of
the Company’s core operating and financial results. Similarly,
Management believes these adjusted measures are a useful
performance measure because certain items included in the
calculation of net income (loss) may either mask or exaggerate
trends in the Company’s ongoing operating performance. Further, the
reconciliations corresponding to these adjusted measures, by
identifying the individual adjustments, provide a useful mechanism
for investors to consider these adjusted measures with some or all
of the identified adjustments.
Management uses these non-GAAP financial measures on an ongoing
basis to help track and assess the Company's financial performance.
You, however, should not consider non-GAAP measures in isolation or
as substitutes for net income (loss), operating income, or any
other measure for determining our operating performance that is
calculated in accordance with generally accepted accounting
principles. These non-GAAP measures are not necessarily comparable
to similarly titled measures employed by other companies. The
accompanying financial tables provide reconciliations to the
nearest GAAP measure of all non-GAAP measures provided in this
release.
Note Regarding Forward-Looking Statements
This news announcement contains certain forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based upon current expectations and involve certain risks and
uncertainties, including the Company’s ability to regain compliance
with the NYSE’s minimum price condition within the applicable cure
periods. Additional information and key risks applicable to these
statements are described in the Company’s reports on Forms 8-K,
10-Q and 10-K and other filings the Company makes with the
Securities and Exchange Commission. All of the forward-looking
statements in this press release are qualified by these cautionary
statements, and actual results or developments may differ
materially from those in these forward-looking statements. The
Company assumes no obligation to publicly update or revise any
forward-looking statements.
AUDACY,
INC.
FINANCIAL
DATA
(amounts in
thousands, except per share data)
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2022
2021
2022
2021
STATEMENTS OF
OPERATIONS
Net Revenues
$
341,961
$
344,732
$
1,253,664
$
1,219,404
Station Expenses
283,250
256,922
1,027,197
972,792
Station Expenses - Non-Cash
Compensation
301
1,127
3,290
4,181
Corporate Expenses
22,527
19,914
91,345
84,658
Corporate Expenses - Non-Cash
Compensation
1,083
2,027
5,039
8,753
Depreciation And Amortization
18,331
13,548
65,786
52,238
Other expenses
214
426
688
992
Impairment Loss
468
843
180,543
2,214
Restructuring Charges
3,890
1,452
10,008
5,671
Net Gain On Sale Or Disposal
(34,509)
(4,632)
(47,737)
(8,363)
Change In Fair Value of Contingent
Consideration
-
(8,802)
Refinancing Expenses
-
372
-
845
Total Operating Expenses
295,555
291,999
1,327,357
1,123,981
Operating Income (Loss)
46,406
52,733
(73,693)
95,423
Net Interest Expense
31,378
25,027
107,491
91,511
Net (Gain) Loss on Early Extinguishment of
Debt
-
-
-
8,168
Other (Income) Expense
-
-
(238)
(446)
Income (Loss) Before Income Taxes
15,028
27,706
(180,946)
(3,810)
Income Taxes (Benefit)
2,878
6,296
(40,275)
(238)
Net Income (Loss)
$
12,150
$
21,410
$
(140,671)
$
(3,572)
Net Income (Loss) Per Share - Basic
$
0.09
$
0.16
$
(1.01)
$
(0.03)
Net Income (Loss) Per Share - Diluted
$
0.09
$
0.16
$
(1.01)
$
(0.03)
Dividends Declared And Paid Per Common
Share
$
0.00
$
0.00
$
0.00
$
0.00
Weighted Common Shares Outstanding -
Basic
138,888
136,110
138,654
135,981
Weighted Common Shares Outstanding -
Diluted
138,901
138,006
138,654
135,981
SUPPLEMENTAL
BREAKDOWN OF REVENUE BY TYPE
Spot (local and national)
213,643
222,127
798,006
799,687
Digital (including podcasting)
69,111
68,079
259,135
237,824
Network
23,305
22,463
89,897
84,089
Sponsorships and Events
24,350
20,297
60,074
52,319
Other
11,552
11,766
46,552
45,485
$
341,961
$
344,732
$
1,253,664
$
1,219,404
Political
$
13,148
$
3,700
$
25,336
$
9,652
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2022
2021
2022
2021
SUPPLEMENTAL
BREAKDOWN OF REVENUE BY FORMAT
Music
170,623
179,239
626,461
634,941
Sports
73,813
71,158
264,306
251,021
News/Talk
51,126
52,814
199,743
195,169
Non-format specific
46,399
41,521
163,155
138,273
$
341,961
$
344,732
$
1,253,664
$
1,219,404
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION
Net Capital Expenditures
$
8,280
$
37,340
$
80,821
$
76,607
Adjusted Income Taxes Paid (Refunded)
$
225
$
4
$
(14,554)
$
(300)
SELECTED BALANCE
SHEET DATA
December 31,
December 31,
2022
2021
Cash and Cash Equivalents
$
103,344
$
59,439
Senior Debt - Term B-2 Loan (Includes
Current Portion)
$
632,415
$
632,415
Senior Debt - Revolver (Includes Current
Portion)
$
180,000
$
97,727
Senior Secured Notes - 2027
$
460,000
$
470,000
Senior Secured Notes - 2029
$
540,000
$
540,000
Total Shareholders' Equity
$
520,619
$
652,205
OTHER FINANCIAL DATA
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2022
2021
2022
2021
Reconciliation Of
GAAP Net Income (Loss) To Adjusted EBITDA and To Adjusted Free Cash
Flow
Net Income (Loss)
$
12,150
$
21,410
$
(140,671)
$
(3,572)
Income Taxes (Benefit)
2,878
6,296
(40,275)
(238)
Net Interest Expense
31,378
25,027
107,491
91,511
Corporate Expenses - Non-Cash
Compensation
1,083
2,027
5,039
8,753
Station Expenses - Non-Cash
Compensation
301
1,127
3,290
4,181
Depreciation And Amortization
18,331
13,548
65,786
52,238
Other Expenses
214
426
836
992
Restructuring Charges
3,890
1,452
10,008
5,671
COVID-19 Related Expenses (Income)
104
(2,164)
584
(2,796)
Non-Recurring Expenses Otherwise Included
in Corporate Expenses
40
64
1,257
5,392
Liability Management Expenses
774
-
774
-
Impairment Loss
468
843
180,543
2,214
Contingent Consideration Accretion and
Remeasurements
-
433
(8,802)
1,117
Refinancing Expenses
-
372
-
845
Net (Gain) Loss On Early Extinguishment Of
Debt
-
-
-
8,168
Other (Income) Expense
-
-
(238)
(446)
Net (Gain) Loss On Sale Or Disposal of
Assets
(34,509)
(4,632)
(47,737)
(8,363)
Adjusted EBITDA
37,102
66,229
137,885
165,667
Net Interest Expense
(31,378)
(25,027)
(107,491)
(91,511)
Deferred Financing Costs Included In
Interest Expense
1,284
2,033
5,116
5,613
Amortization Debt Premium Included In
Interest Expense
(256)
(251)
(1,024)
(1,582)
Net Capital Expenditures
(8,280)
(37,340)
(80,821)
(76,607)
Adjusted Income Taxes (Paid) Refunded
(225)
(4)
14,554
300
Adjusted Free Cash Flow
$
(1,753)
$
5,640
$
(31,781)
$
1,880
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version on businesswire.com: https://www.businesswire.com/news/home/20230314006045/en/
Investor Contacts: Joseph Jaffoni, Jennifer Neuman, Norberto
Aja JCIR (212) 835-2500 AUD@jcir.com
Audacy Contact: Ashok Sinha SVP and Head
of Communications (610) 822-0832 Ashok.Sinha@audacy.com
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