Audacy Reports Revenue Stream Slowed During 2022

Audacy, Inc. 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 Field

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."

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.