Townsquare Says 1Q Net Revenue Increased 6.6 Percent

Townsquare Media, Inc. announced today financial results for the first quarter ended March 31, 2018.

“We are pleased with our strong start to 2018. In the first quarter, net revenue increased 6.6% and Adjusted EBITDA increased 12.7% over the prior year period,” commented Dhruv Prasad, Co-Chief Executive Officer of Townsquare. “

In addition to our strong operating results, we announced two strategic, tuck-in acquisitions of radio stations in New Jersey and in upstate New York; repaid $9.5 million of first lien debt, ending the quarter with net leverage of 5.2x; and initiated our first quarterly dividend, which will be paid on May 15, 2018.”

“Once again, our Local Marketing Solutions segment drove the Company’s growth, with net revenue growth of 5.9%, or 5.6% excluding political revenue,” commented Bill Wilson, Co-Chief Executive Officer of Townsquare. “Our first quarter growth in this segment was driven by continued strength across our local broadcast and digital product offerings, which culminated in our 17th consecutive quarter of positive, organic revenue growth.”

The Company also announced today that its Board of Directors approved a quarterly cash dividend of $0.075 per share. The dividend will be payable on August 15, 2018 to shareholders of record as of the close of business on June 28, 2018.

Quarter Ended March 31, 2018 Compared to the Quarter Ended March 31, 2017

• Net revenue for the quarter ended March 31, 2018 increased $5.8 million, or 6.6%, to $94.2 million, as compared to $88.4 million in the same period last year. Local Marketing Solutions net revenue increased $4.5 million, or 5.9%, to $80.6 million and Entertainment net revenue increased $1.3 million, or 10.8%, to $13.7 million, largely due to the timing of a live event. Excluding political revenue, net revenue increased $5.6 million, or 6.3%, to $93.5 million and Local Marketing Solutions net revenue increased $4.2 million, or 5.6%, to $79.9 million.
• Net loss for the quarter ended March 31, 2018 increased $23.6 million to $26.6 million, as compared to $3.0 million in the same period last year. Net loss from continuing operations increased $23.7 million to $26.6 million, as compared to $2.9 million in the same period last year. Net loss and net loss from continuing operations increased primarily due to a $38.0 million impairment charge recorded in the quarter ended March 31, 2018, partially offset by an increase in benefit from income tax of $12.8 million.