Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. Welcome to Townsquare Media's Fourth Quarter 2022 Conference Call.

As a reminder, today's call is being recorded and your participation implies consent to do such recording. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. Instructions]. [Operator

would call, to President. Claire ahead. I speaker the Please to today's for Yenicay, like that, you introduce first go With Executive Vice

Claire Yenicay

you, Bill year-end and financial Thank With me our to today Thank CFO call Executive Townsquare's CEO, update. good today and the joining Rosenstein, are for and President. for our us everyone. quarter fourth on And operator. Wilson, Vice you morning Stuart

information, that provide during from prospects. that, that may call, cause in statements information differ company's other but the XX-K the this with of historical considered the could These annual forward-looking and that statements note reflect SEC. are to Please results and statements XX-K/A safe report these make future filed those on than are Private risks the XXXX beliefs certain These uncertainties, under uncertainties based Reform current materially company's we of Securities including actual are plans Act including to subject are relating detailed risks and the on to conditions, statements company's expectations, and provision Litigation statements. harbor statements and subject the Form to

adjusted and financial quarterly, as we discuss conjunction the website. all net also available adjusted should used remarks. measures income, be in in We may the reports contained year-end income in Such with operating measures, our on may including adjusted certain profit non-GAAP and information to EBITDA, which current refer our non-GAAP financial

of during discussion also website reference our presentation, Bill corporate and slides encourage download go our some investor would all as to morning. I our will this to participants those

available annual website. shareholder our our on addition, letter is now In

Bill I call over time, Wilson. turn the this would to At like to

Bill Wilson

And us thank all Thank morning. this you, joining for Claire. you

in economic our highs our records a and set challenging results As am new back first pleased strategy media despite XXXX, I digital progressively XXXX. We that delivered reached landscape. local on with very I look new

or economy to However, a it an favorable economic wasn't due rebound.

the war of prices Starting the dramatic environment we grew then macroeconomic in year the persistent an uncertainty. impact the in Ukraine, and the rise with COVID-XX, entered turbulent, ongoing of gas with together inflation, and increasingly

for success quality, best, our content local set of audiences strong we and result original investment. all team, for we high and Our off. solutions new time creating records the XXXX, well. on the clients high audience records, reaching with cost focusing on and metrics it local do And delivering return financial our what marketing been new In has digital as effective creative Townsquare setting paid

net of X% million, reaching plus our increase $XXX.X and an all-time all-time reached of growing year-over-year, revenue XX% an Impressively, high high year-over-year. importantly, plus XXXX, EBITDA In $XXX adjusted million. also

year, Unlike our political most media spend majority ad other a political a growth. companies of drive not did in

by EBITDA and solid largely by and increased net of adjusted plus revenue, political the the prior that revenue was X%, plus XX% Excluding our a driven year offerings. over digital respectively. strength And

our from and our XXXX strategy, of Townsquare no was company. media team first and the for a It majority radio and the solutions. assets, and world inflection spotlight platforms year differentiated where appears placing and revenue profit, local further our a longer class our marked on our point unique significant compromised separating

occur position most, results setting position downturns first cities, as a unique better not X.X company, that. broadcast XXXX when record as economic be to radio are on digital a and times of exclusively than markets with to Therefore, continue valued we highlighted we We radio longer company. broadcast we as today. company And because no digital our XX% revenue, believe local differentiated on they we focused we media XX a outside demonstrate the clearly As XX, are a do industry slide are that believe should and top the in our are average. weather we

Approximately Historically, forms operating solutions. outperforms for adjusted our Townsquare, income XX% total during an come the digital and now of of and company's advertising downturn. from total advertising large, revenue for other digital our economic net of advertising XX% our industry at

advertising print, to the due to of businesses forms outdoor the States country Market radio of United by the Digital digital XX.X% XXXX, according growth across and returning the including quarter Global rebounded in example, following while quickly, COVID-XX year-over-year XXXX, television across advertising, revenue cinema, other For XXXX. fourth the of to shutdown Townsquare's increased in plus traditional declined. pandemic S&P advertising Intelligence,

advertising our digital As segments, Townsquare Townsquare marketing Interactive, X of distinct our our solutions, slide two from comes subscription outlined presentation, and on Ignite, digital investor revenue our digital solutions.

Interactive Townsquare revenue scenario a in downturn of is revenue XX% net total represents company's income, nearly marketing adjusted non-advertising subscriptions on a a offering, a marketing is full and operating In our XXXX, contributed recurring based meaningful digital key our of relevant component growth especially XX, Townsquare stream. Interactive, and which been driver of it which slide outlined our suite solutions has solutions. as

In XX% target inflation, X% mile customers And the Townsquare $X XXXX, to to high plus million aware I want wages, see facing, this navigate higher that in challenges performance revenue higher are annual interest make million shortages, rates, that business $XX cetera. Yet, as labor and local to noted currently increased revenue profit clients including our a on that, with net are less smaller. plus $XX do slide you XXXX, reminder, in et more Interactive in we as as XX, than million. expect increased we to we

share are we we Interactive this Townsquare opened pleased Phoenix. Additionally, very that, the in second month, to officially office

revenue we the a Phoenix the scale in expanding expect I XXX and today employees. well subscriber expect XXXX. until we over Phoenix Over not generate our be shared growth Charlotte meaningful We as location, houses will time, location location our Phoenix the in lift size previously, to do to which of office. the And ranks to

took our decade one For location. approximately it scale reach in to Charlotte reference, that original

product outlined of target X and market very offering confident huge as am geared term, an of success. that Townsquare and long XXXX, for I addressable market million opportunity, superior subscribers at nearly customers XX,XXX Interactive profitable is With XX, slide the end growth on

driven XX and by slide advertising substantially and on by to outlined in a our dynamics XXXX, segment Solutions provide differentiated regional solutions grew digital clients. inhouse industry Advertising to Digital of our ability local favorable suite full Our

our utilizing email, customer We clients, them ability the across solutions targeting provide desktop, and media social a platforms search display, their precision native audience to giving online TV, and of to percentage mobile, reach connected video executions. high paid

have detailed XXX collect and than more and with behaviors, intent. analyze purchase national consumer drive unique These clients ability mobile a and publisher audience interest for XXX and and and also competition. a XX our music over news party us real entertainment data, advantage websites, we insights apps, local entertainment the our about leading to websites, first leading As and local strategic insights to results unique give

further news our dwindling local continue, small and we visitors In local monthly growth our our markets We owned XXXX, offerings new amplifying with we plus to both down online portfolio there. average of our websites, the the due and of the set availability XX% audience of will as attractiveness unique of sources fill in communities to on than and in increase mid-sized levels. information digital year-over-year expanding available void audience XX audience to a XXXX records believe million operated more our

we exclusively discussion us a industry from on competitors. also not of emerged many As first party cookies, like the third-party as third-party own turmoil with data, from that eliminating do data, publisher of our our defends our rely has position

digital million revenue In XX% and Townsquare's was growing year-over-year XXXX, fastest to Advertising $XXX plus net and increased of to plus the year-over-year increased segment advertising Digital again XX% our million. company $XX profit

forecasts project XXXX at as to spend latest in United XXXX spend of advertising nearly digital a X.X% Global will States that all Intelligence it the in XX% CAGR of in S&P XXXX. Market XX% advertising from plus through advertising grows all increase

growth advertising in suite is confident the are that reinforce very with continue challenging solutions, same To these in first-party our that low-double QX, digits. macroeconomic trends, current marketing drive pacing conditions, inhouse, digital full digital our will and during and our our We original data industry even point, advantage strategy, together well that of advertising strong to content investment favorable up performing period. with

I importantly, than $XXX plus year-over-year am a margin revenue of profit, a representing total, proud grew XX% to a competitors. media and, million margin, most digital to local much higher that, $XX in profit our report generated million XX% very strong

grow We are also a minimum our will $XXX reaffirming of to million our XXXX. by revenue digital expectation that

and Townsquare's we aggressively to profitable will will believe business We digital engine, to differentiator is be is to Digital a key ability drive further growth company. continue profitable, our for growth fuel our growth. continue digital in invest to sustainable and our

essentially are by importantly, digital year-end At expect and will in broadcast our platform. XX% profit our of equal and our our be to we revenue XXXX, And XXXX. profit profit that digital those of the characteristics majority of revenue

digital to recover reason quickly was we quickly levels, COVID-XX our revenue and so negative have and from results. in only as to worsened Digital the QX primary national insulate faced mitigate that our trends return advertising helped help significant levels but recession surpass and that XXXX we will those well. And expect financial broadcast to in XXXX the also we able were to not

plus no of audience radio between media because we and world brand it one distinction are traditional gained with And does digital events the forward. aware with our the differentiate Rather, that combination continues the to brand compounding not platforms. blaze over brand social. has the our engaging the of or holistically consumers plus and and app and flywheel Our very live powerful momentum between the yet, digital on website and or social website brands with in air engage listening brand, brand, live the

TikTok, other traditional at Netflix, their platforms newspaper, more and streaming went just Spotify, One media media, social to less Amazon consuming Uber and daily only to Eats. years today time audiences digital as including from like services media, radio, five time YouTube, like today. spend including OTT, look consumers Disney+, needs Overall, television, ago Instagram, compared lives to consuming Facebook, how and et about cable, or cetera, digital consumers

of new to have touchpoint full with suite leverage drives creating abundance home a of choice them. we platforms and as emerge, available more The marketing our audience, consumer having reinforcing every the solutions of importance today touchpoints

$X.XX this been share yield to I be the Board characteristics dividend view, to of equates has our In and cash the in Before over which reflected payable our that, our we today in has on free believe flow cash more strong business, our XX%. strong of of results not performance support clearly it free our our a over to would consistent share per to announce which approved turn of per X, approximately on dividend. given May generation, go basis, price can Stu an date would stock a business, I Directors annual which of $X.XXXX flow our to also like detail,

we what But outlook, this is providing continue As strong open flow be on as even current a conservative that our debt to with our guidance as based can believe generate macro engine, for Stu cash in still as growth dividend, later, support to digital in will invest well well conditions. the will detail we will as this potentially repurchase year conservative market. we ability

We generate X.XXX%, and XXXX no with are balance attractive current capitalization year-end, that And strength our pleased cash of year-end at hand on million interest leverage are for cash at returns we of maturities confident $XX equity we until can the net with of a and fixed and shareholders. of X.XX sheet, current times XXXX. our our rate

to And Stu. now, you, over

Stuart Rosenstein

good speak Thank It's great you, morning, to everyone. Bill. to today. you And

note me let on Before impairments. turning results, to operating begin our a FCC non-cash by licenses our making and QX

non-cash we down continue over time. As of expect are our calls, I to the FCC previous these the impairments on value to be way given licenses covered written determined,

assumptions impacted. we as In result that the our were FCC impairment negatively XXXX, evaluate to licenses of interest a use for rates, rising

As roughly This licenses year. a the price fourth non-cash result, for decade-old no purchase a non-cash our write-down we charges profitability, our radio made million revenue, position, ago. we to price impairment in our are future affecting when quarter charge our only and purchase took our of cash of operating $XX.X decade calculations $XX.X has a or million the the FCC station or on bearing nothing full operating accounting more than bought allocations expenses, prospects. assets more They

million. impairment Our to net caused our $X.X charges non-cash $XX.X decrease XXXX income to year-over-year by million

More and year We're the to for our high our to record and importantly, finished year let we in XXXX. levels us XXXX. discuss record that operating now then growth, driving and adjusted to strong will QX full me revenue we pleased high all-time with outlook turn report EBITDA results, all-time

million. guidance to fourth Fourth to quarter over prior-year million, net increased of quarter high revenue our within of QX X.X% the which was an million period, $XXX $XXX $XXX.X all-time

reached we all-time high year-over-year million, XXXX, growth. net an $XXX.X representing In XX.X% revenue of

our political due fourth with well As call, our our wasn't we races political didn't to quarter XXXX. strength align as in markets discussed on last earnings

net political year-over-year. Excluding quarter revenue, X.X% revenue and increased increased X.X% revenue year-over-year year net full fourth

Fourth a quarter achieving $XX.X of adjusted QX to EBITDA million increased our XX% guidance million, $XX.X range high year-over-year $XX.X record of to million.

For an the to X.X% high $XXX.X all-time increased year-over-year adjusted EBITDA year, million. of

digital quarter, as X.X% the subscription in our X.X% by net grew segment, and net revenue, XXX approximately and fourth net Interactive, marketing of Townsquare supported profit to profit steadily subscribers addition the compared the XXXX. prior In increased net year, revenue increased solutions year-over-year. subscribers,

increased XX.X% and at to profit XX% profit year-over-year year-over-year In a million XXXX, Townsquare to margin. increased Interactive's $XX.X $XX.X net revenue X% million

year-over-year year-over-year XX.X% XX.X% the the was quarter digital our the net Ignite, Townsquare growth year. advertising quarter and in segment, fourth fourth year periods, with for and increasing largest driver full full revenue in of the

XX.X% year. increased and QX Advertising full the XX.X% Digital profit for in

continue We our biggest and beyond. in the revenue segment of be driver expect profit our XXXX Digital will growth to and Advertising

approximately XX% We net in and during year broadcast XXXX. will in than fourth political the revenue Broadcast the most significant our headwinds Broadcast revenue. point X% respectively, digital as anticipate periods, increased downturn Advertising in performs excluding were Broadcast face full traditional advertising. increased historically the segment Advertising a approximately better year-over-year X% and X.X% XXXX margins profit and quarter

declines broadcasting spending not continue of markets, our on have revenue our broadcast will accelerate, which National to meaningful and seen XXXX small recovery to heavily we both weigh results. a in auto

million in more $X.X revenue the XXXX fourth In we XXX% $X.X million increased $X.X other the of live full-year activity, a had $XX,XXX. Our revenue events generated other hosting or events last small comprised profit and quarter, year. of of is in which category, period, than due did to to million

to quarter and ended We million at Correspondingly, generated fourth or a of the of from other XX% year XXXX operations $XX.X year, with and $XX.X the $XXX,XXX $XXX,XXX positive profit cash. million profit cash flow increased XXX% for in of million $XX.X margin. the

We million due primarily less to generated to million did interest In year, than from million to due timing XXXX, in the paid of only cash of of the our we compared we $XX prior $XX interest $XX in payments operations refinancing our timing the in of XXXX. payments. XXXX as

the the at in our reducing Prior payments, year-end X.XX interest line flow of the period. from We we year net from positive with leverage to the generated in prior-year cash XXXX lowest history, with that operations $XX times times to leverage end ended million year. X.XX company's at of this

we our below XXXX, used on of cash our $XX acquisition to and $XX In accretive approximately or Creek. Cherry at par million of bond million repurchase the

number profit local investments priority growth, growth support As internal our through is in particularly our our and invest that always, engine. organic to business our revenue digital one

outside Townsquare including competitive top the technology, to continue teams, invest our location sales, market Phoenix We in digital plan second support content cities. to product maintain and Townsquare to specifically Interactive, in and our to advantage Ignite the at order businesses XX

X XX. $X.XXXX earlier, shareholders as has would which per to dividend, been of approved has The on basis. per record mentioned share board May a Bill payable on set a March share, to an $X.XX at our dividend As annualized equate

our Based outstanding and and shares of yield would imply price, million current on XX%. that stock approximately an approximately our of $XX annual a current dividend payment

our to business, bonds allow support even repurchase and opportunistically believe open will us strong the We dividend flexibility to allow cash during our new in to a continue us market invest characteristics downturn. flow our in

significant face federal including statement included to NOL statement $XXX amortization carryforwards you tax financial on of tax tax We We'd shields purposes maintain million more for any is only. substantial the other than assets. to attributes, benefit the taxes related for our like of that and provision of income income or remind the GAAP intangible

approximately not We material continue cash year to XXXX. will believe taxpayer be a that we until the

Turning full XXXX first and to year our quarter outlook.

largely steep expect leading first growth revenue plus growth. between revenue by to quarter a million be revenue quarter a that national offset broadcast declines, We digital net to million. to first anticipate total year-over-year will We net flat revenue $XXX X% $XXX and be

and between million. be million adjusted We $XX.X quarter to expect first $XX.X EBITDA

we plus or a million. growth and million high that the a excluding For year, between represents rate end This plus will full X.X% X.X%, of political excluding the at year-over-year our be X.X% $XXX $XXX or the political negative at and end revenue currently of range. expect low range, the the X.X% of

that and our expect be We million. adjusted will XXXX million EBITDA between $XXX $XXX

back With will turn that, over call now the I Bill. to

Bill Wilson

joined thank morning. appreciate everyone And to We greatly us you who it. this Stu. you, Thank

Since diligently a of and profits radio a sources, company. XX% broadcast our coming XX% certainly media from our our local digital from traditional we way. company to into now transform we XXXX of With inception, long come company a our digital-first have revenue worked have

our of for businesses Townsquare's become and local not create selective has But work even is changing to accelerate economic transformation a and to important rapidly never for it us consumers and future. landscape as In more advertisers more been our done. periods during hardship,

great to at, iterate is about, Townsquare creating are at what evolving attack by solutions our The transforming. we that not ability what great are and and and fix continually that audience what continue products to continually all innovate clients to is value, and and we

revenue want assets. EBITDA I and with EBITDA and the these few takeaways. were above XXXX achieved represented political. XXXX to highest adjusted ever EBITDA One, both well has Townsquare and highlight highest levels revenue Two, In closing, and without that adjusted the a both key revenue net with

approximately from solutions. Four, operating our XX% the our reached of at ever net revenue leverage our come digital company's income times. XX% lowest in history we've and total of net our adjusted Three, total X.XX now

confidence that shareholders. for flow cash are generate growth cash Townsquare, in and XXXX. we current returns of a the operating over our dividend will Five, $XX given of And our term success initiating we long generated in million six,

for the remains focus informing years audiences their and we agenda with to consistent our for and and to businesses. want best-in-class our entertaining be in set company advertising XXXX, grow marketing class platforms, all while In world several XXXX clients serving we and Our our goals to super across ago. solutions with continue communities

most. Although and better we are model weather economic landscape, we currently to navigating our challenging this that us business than strategy environment position a macroeconomic believe

We be be will so macroeconomic to tailwinds audiences continue to local our local to support economic positioned during continue capture periods and to challenges, these of grow that growth clients accelerated return. can we resource when teams well a and our and

we opportunities. create do, are to our always going own we As

waiting present not to create innovation. challenges. are The show thankful. passion team's driving We It's them I to is and for Townsquare directly overcome We more up and way. transformation or themselves. our couldn't be the and opportunities effort, Townsquare growth commitment

Operator, time, any at open please and this questions. for the all lines

Operator

[Operator Instructions].

from Michael Noble Capital is question first Our Kupinski Markets. with

Michael Kupinski

digital and Congratulations A break questions. the business? Can down in by on couple pacings the Ignite your your quarter transition, way. on thoughts first of between subscription digital you your

Bill Wilson

the of The in essence, In terms Stu guide, we Townsquare of flat will digital revenue to plus that terms in which obviously, revenue, be be breakdown QX. provided to was, flat for expect that for Interactive in our X%.

that in higher quite transparent in And customers remarks we've about with I wages. As investor we battling target smaller in our QX, been about plus revenue. that in million was time that inflation, those for saw deck. the we X%. $X And higher are clearly, And than described some customers provided less already as

performance first the little more for Interactive. of mild anticipate Townsquare We definitely half seeing probably year. in than the QX and a we're normal So that

first these operated the scale data, of stack growing Ignite, part then noted, will owned outlined party as is differentiation programmatic and company to continues our and fastest be powerful for being and at that and our our on truly an calls foreseeable the extremely future. just our historically continues I with of we've company, the be be to publisher differentiated for

to Ignite XX% So, digits. is in up It's QX, XX% double range. in that

as I end were Stu to think now. QX, up up we we'll XX% XX% XX%. And right noted,

do Ignite So, to well. continues quite

about QX. that in noted broadcasts, guidance, we're XX% just while although almost about we down And didn't talking national ask is broadcast you

broadcast So flat. quarter, it's is just the $X while local It's prior material. in year million actually versus over quarter

flat, And be broadcast down overall so, TSI Ignite digits. up, will double mid-single total low digits.

Michael Kupinski

number targeting the digital space? in Bill, of seeing are your that you Or more to it radio has is customers just peers of up market stepped simply business a competition environment? kind investments similar interactive and

Bill Wilson

honestly, do can quite It's the think things we market there's well. environment. better I And some as

to perform better. So we're continuing to challenge ourselves

on there's based doing I I we're business we've also last over us months some experienced think six that think help the in that in the things run. will what long

competition presence transparently been web always already. also we there's there. majority have view, that they get the Townsquare that our customers through all shared in of Interactive, a we've And So quite

they're already doing they're with So or self-serve or using working somebody they're Facebook.

valued on these return our by on is calls, So outlined customers. these significantly investment, we've as

and I of the just macroeconomic the environment expense in just think it's everything described base. I increased terms

back brought we year, largest to our Charlotte people the as office then location. over past is And the

So so some we some some, I'd XXXX. some go people work, didn't return to to had as we there working of and those through work, return who we're issues want had to over change through say, we

be flat I nothing's But at from I So expect, year. changed revenue set, all. that to the competitive said, a first there of half the for really as

few, a a you year We're radio shared technology people in is actually – the the great Interactive highly And and into on everything very that really noted, that. either before, differentiator offering investment location. ended is XX% Townsquare doing the and think it We're local as margin. as if excited about that's around we are people historically, differentiated operate inhouse. having in why other not inhouse. XX moving XX%, return media any, we've I all space, many with can the Phoenix about or And also clear building Our we

end and now I the of month. another to joining us eight think have the we between six

very increased And that's talked incremental the bringing Phoenix investment the the second is as aware, the of see deck, started. in will outlined the Michael, subscribers Interactive here location. the the you're revenue why we've personnel, and and, year we've of our into till investor confidence because $XX down TSI, we our this well mid-XXs in return getting addressable of terms margins is in and and market about extremely rents, in Townsquare obviously, increased feel XXXX. all we're opening we're like billion we the total just But high, So

Michael Kupinski

On total what your on of XX% is your it, national, revenues the broadcast XX%, side, broadcasting?

Bill Wilson

broadcast about is Specifically, X%. the

XX%. So drop. is a part, but dramatic it a is XX% down is small it

it's As betting Sports $X of big million. over is a I said, piece that.

You recall, actually, QX reflect of you national may if in XXXX of QX up back on was XX%. XXXX,

mid-teens So through to QX. and lot it of fell decelerated actually in and then sports QX that year betting. decline declines the in dramatically digit A off in QX this low-single And year. it just really of is QX

XXXX, strong. in betting, Sports quite was

may a you legalized recall, As states including lot York. of it, New

So, QX. year-over-year. $X in into in million a bled betting in currently betting XXXX, saw down QX that influx almost of sports sports QX, over we is dollars But big

making the So, is national declines, of sports plus thirds $X up almost that. million obviously of in two betting

back shared headwind in the less we our of down year, flat. on we when political year full think why side perform And think points you as local So that couple year ex guide, as the full QX, at is settles down national revenue points. look few to half I or in year. a the we the and, will, the that's is over a comps our And really up much I into better be get continues and of think a

Michael Kupinski

of economic economic in wondering, still I of station to general, just past? perform they relative radio tend to better stable Yeah, seems traditionally, scenarios relative your outside your was like, the peers. sports in that the be larger past it headwinds. to had performance radio kind seeing similar we've the to in pretty betting, you are seem And market

Bill Wilson

calls, in you From so. why very provider strategy top to outside terms move in we point, as media to has described lack TV these sad number a only the media had deceleration very of opportunities markets. We've We've our I've local one It's top it completely disciplined. day and a radio top quite it prior and to where on XX. the to back. been – be in of are But Townsquare of is there these the we is XX cutting the a XX. seen Yes, that's different believe markets as into relates markets. news obviously Not the outside newspapers such business tremendous the landscape companionship one And exit information. much stations in and XXXX, markets for

serving communities to we for honestly So feel these like and provide information. quite we're news mission a

the we As markets shared reach in our half average, When AM we XX markets, is of significant, on in in digital which that's in XX the one through adults reach size and we why, factor past, we've our the FMs. our in X XX%, audience, population, of adult operate that you in.

smaller So, it from well these for set different such business. competitive markets. a as a is landscape different It in such is consumer choice, as

XX% why profits. and our that's focus said, have And digital we let's hey, on So, today, we're digital as growth engine. revenue Right?

help is mission client, of advertising as I remarks, and quite and XX% bring moving growth grow is to advertising digital because, to Townsquare today the And importantly every with that's XX% digital. time. competitive on them our going forward, grow. digital can solutions And we which and for my and, these ability continue there most for as move to you've we be the is digital some sophisticated to the solutions our is Interactive solutions, seen, Ignite use radio, fact one double-digits only – marketing to very but to X% And dollar that all our today which shared digital that products then spend, do the reach As ad And with is that. of quite will medium, set XX%. yet number spent digital factor in marketing but goes differentiated

digital differentiated. is be that's in to XXXX. So every on strong $X.XX powerful dollar Clearly, by and incredibly

And technology we're second level a bringing in sophistication your markets, to we original none. smaller platforms to that point, believe is of in and

Michael Kupinski

are categories your your we business, situation more. past, particular know there discounts? COVID pricing currently through discounts, any I in point. you've this On that had. that your in maintaining Or I Are that are If And being you Interactive in actually are you may offered affected at one business? just the Interactive squeeze there the I believe giving

Bill Wilson

to would no. As smaller categories, is – what what is we're it But I seeing share relates businesses.

definitely So our their like on area. eggs wages COVID businesses smaller revenue cost are did more increasing is help customers, we're Townsquare's the businesses with working with challenging businesses we are that based Or to and economics, a again, increasing, because, And with of mission grow. things food they're during base, restaurants maybe seeing. and these their yes, we as if is nature,

are that. can doing we So help clients if XXXX. and back for And during full discounts XXXX. in offer did they're That discounts, we business, by worked some we quite definitely in them pricing those we went well that giving to them

that saw back in come nicely You XXXX. growth quite revenue

here, that So was as I what expect well.

to in look where best our look in But impact profits proud I we're do And shareholders year only going it. that off to the with this them that's When full half to return back it our thing XXXX. then help serve our that, conditions I in for them But be coming and time. the this short will these clients clearly and expect right what we them of at don't challenging lift year this XXXX But beaten know and of XXXX, them, we or think hope at we will will then posted if did our to when results. and XXXX. record we work And along definitely to We're that's be, do. to pricing. term past investors

So, be does, definitely, clients in as are that providing in smaller add as comes great muted quite discounts, you'll But position working in headwinds back as those the that with a we normal and the see forward well. fact we're we the down, and whenever to on again. confident get them to that performance, that'll add we'll look inflation these with businesses TSI, and future,

Operator

next Our Research. Jim question with from Goss is Barrington

James Goss

your Given a are apparently What all laid ability that now to out existing past discuss out group. that FCC at And greater might you've impact your of something the any head caps recent radio your priorities, was instability ownership penetration you does another through? you nominee action the wondering dropping the sort Is digital joining if in about adjust? markets station within involving get I and on that to are objectives? would like have the like with the of you

Bill Wilson

don't those I'm aware, the not the of disclose radio Chair Association of Broadcasters also side. just Executive case the National it in For on that know, anybody's

the some that involved lifting lobby of the caps. ownership in NAB policies So including and I'm the on, quite they

for another Pandora, NAB's speaking decades company's not our They are forth rules have time the yet Personally, on, antiquated. and past offerings, Spotify, the is based relevant and feel we're I to certain the on number it's YouTube, billions have you of so can on old. ownership restricted Townsquare, signals. in on a behalf, now. And so are not of but just behalf, rules

a population I know On our So, It There's particularly what average, paywall, markets. as online a see I an the years weather seven is days many concerning week how don't little national, content from is sports. version there's printed smaller people in majority ago to no not that factor described with question, paper. a with maybe XX of a and our local Michael's and is crime, in content and when the you really longer printing go people. to are of XXX,XXX these print local, is newspapers to, many markets,

caps that the better. ownership serve will we super allow feel the So, us even communities to really

Creek with this now advantageous. company create a digital would can a local seeing go we in media A markets would be top for by ownership transforming were sub secondarily, existing we first at there radio in outside business would markets highly diversified If the we can also really we first then, and it is, company. our other caps XX. into point lifted, we're the look and look We've more and that a yes, and in demonstrated penetration Cherry

that are So would in aggressively. lifted be think it quite we the if the pursuing ownership be future, caps do. right thing to we would And

Gigi To to for these caps with is, that general, the think your think lifted, there. it's proven consumers in challenging her it's right be patient to ownership think point done FCC, do I and hope be I a the thing will time, time quite I much communities. going get to last because in nomination withdrawing for do we've we're and the But I

James Goss

aspect have destabilization personnel when – with the to also work you that TSI, happens that area? there pushing And be Charlotte. With in work there them gain that regard Is the at contributing changeover addition mentioned slowdown if in might let some return a than the in some you to to in in to that you're that revenue issues is rather home?

Bill Wilson

Correct. the may with five who of able we'd one it so was performer, and returning people weren't remote. office some been policy Yes. some. work It's been tenured Again, over it's the back average, majority, and come Charlotte. work. based the in say, work. two, a that. their high had in overshare we there to population they have our XXXX, employees. There's period And workforce. a a to similar for an in like working company also time, the transparency, always were to and exceptions looked through mid-XXs. be return who made hybrid, And we through But in there But on that businesses out and people be if obviously be a of COVID office, to three, to large we, were we had those across decision US. the yes, four, with of spirit some But other for largest is XXX for to to tenured performers. you exceptions you an meaning quite in subset to Could essence, let's that – And share obviously another But, And could to back remote opportunity a is forth. maybe opted which work mean have days to to that, required high mid-XXs

it you got Interactive challenges time. our Townsquare person transparent every relationship, And us. the service, client wasn't customer a been representative, say, over in so, destabilization, asked again, you some would for some – it that destabilizing, And have our just been, but did about we've I created handing Townsquare – that you've a particularly and model Interactive, success one to into a meaning that's call same that has if one has customer

left, So of work, more of when this and for created time challenges return during more person to that us. disruption did it

I last six what's with pretty dictates the confident a happening on business, months in sit versus what here as current addressed over March we've much months. more we results feel next the six today our challenges. quite But or subscription as those happened X,

work definitely to for yes, those and So a addressed was challenges, us. great return place. We've challenge we're in a

in lost I Just coming our people. my Townsquare too, in said we the Phoenix eight have to And terms XX joining in on I up, Interactive. think, case month people, March, just opening us comment the of hires this by we're location, roughly people we're And again, at month. clear, earlier, we made think net I new positive of a lot employees of be think end

the our digital So, and based again, to market on robust, our date. aggressive in operation performance investment opportunity

James Goss

one question. last maybe And

aggressive plus Could being the far? you You were talk the about that behind quite yield with dividend implied. the rationale XX% increase, going

Bill Wilson

dividend significant, operating flow. fact the have significant challenging and flow positive of time The the during XXXX, cash that And to cash year-out. that clearly had even we speaks year-in have strong had we and

approximately price, are XX%, it you is aggressive stock So, correct. if today's an yes, At slightly a higher. not yield,

$XX in point. we were Jim, know, $XX. were $XX, We at ago, our stock was As a XX one about ago, you the year months

stock So a at a price, be would that X% yield. $XX

stock it'll was is that just at today. a from price is ago not grow back and the case year our But get the it will there. expectation Our level obviously, to that,

our We but utilizing market. focused we our free been digital until bonds So also investment will up de-levering. open continue that, in the point, bought to flow we've this and cash do for

end the record delevered And leverage and stock you we yet, record to in reflected profits not times, has XXXX. in the the It point in X.XX has not XXXX as XXXX. again So setting our company's at lowest revenue, delevering. know, price at the then of history reflected setting

is revenue the cash strong that's a a we our not and transforming to provide stock want highlight from to local view given standpoint, media believe, a shareholders. digital-first wanted with this been reward radio a profit characteristics. appropriate, Because why company have our And our even to flow we valuation. rewarded we and performance, So, to seen company, this local the performance of shareholders

that, is My XX% stock that year. we come we a continue a yield is from appropriately So, down our $X.XX because we valuation. a why execute, expectation it's with drive will time, rewarded and, digital over growth price will that we although the continue to today, went plus will be to will

million Stu, XXXX. are it correct I shares It was it price after can XX.X shares, believe XX.X or Claire that point. roughly, ago time, at I yet, from $X.XX, me, I would and below Oak Tree we And And back just our also point $X – believe, out two that under retiring I we years million X, was. bought March today. here believe that was was stock

stock evaluated price. neither million we've buybacks, which So, $XX things our obviously have done authorization delevering, one stock influenced We've active, we an of we've actually those positively well. yet have still which quite buyback evaluated that's a of

our shareholders most a we felt was now dividend. yet appropriate right not thing do have So to our the rewarded, been given stock,

flow. flow, shareholders million cash shareholders digital And it It when us future us continue also buy to do everything from $XX it strong said, they and, want only about investment is to allows opportunistically continue cash reward it a us, And a dividend, to do us to what delever to and strong open We hopefully yielding have allows year. doing. now to Stu digital it's allows roughly – bonds as the as a said, company we And our allows and evaluate in market. current high Stu standpoint.

well generation the shareholders forward as at hopefully as a digital growing, other today, that's into strong XX. are this differentiated markets So, approved X. dividend receiving flow this we're yield quite to May and on company we our look cash top having highly outside then we that factor our them in robust look shareholders And pleased and to who look this not forward people the board current

dividend So we're the excited our share and to shareholders. about pleased quite with that

Operator

turn our reached session. for question-and-answer like end would of closing to comments. back the over Bill have I the conference to We

Bill Wilson

that in And environment. operator. to weather for and thanks, joining of proud quite you, position XXXX. Thank today. macroeconomic share the are current to results pleased we a everybody, strong tremendously in We the We're feel

digital Townsquare to second the and I only their like proud local first to commitment, to to you are thank and team. none this passion we say to driving communities want transformation feel but to not the that. forward commitment for just very clients in their company company, I media is of the our a And very,

connecting great now forward has QX to and a So, with of it results you, to be, a day. pacings. Have months from hope great our our QX couple should day. a Look everybody share

Operator

conference. conclude today's will you. Thank This

disconnect may time your and for participation. at You lines your this you thank

Townsquare Media (TSQ) 9 Mar 232022 Q4 Earnings call transcript