Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Audacy Reports Second Quarter Results


Audacy, Inc. (NYSE: AUD) today reported financial results for the quarter ended June 30, 2022.

David J. Field, Chairman, President and Chief Executive Officer, stated: "After a very strong first quarter in which we grew revenues by 14% and significantly increased margin, our second quarter results were adversely impacted by declining macroeconomic conditions and ad market headwinds which reduced our top line growth to 5%. While we navigate the turbulent current market conditions, we are excited by our future growth potential across our scaled, multi-platform businesses, capitalizing on a number of important recent developments that include an enhanced national sales organization, expanded podcast and streaming audio networks, and during the second half of this year, the rollout of a new, reimagined digital platform and ad tech capabilities that will enable us to unlock pools of ad demand and supply that we can't effectively monetize today. Our transformational development over the past couple of years has meaningfully enhanced our competitive position, strengthening our capacity to serve listeners and customers and enabling a powerful set of opportunities for revenue and EBITDA growth in the dynamically growing audio market."

Second Quarter Summary

Recent Company Developments

Earnings Conference Call and Company Information

Audacy will hold a conference call and simultaneous webcast regarding the quarterly earnings release on Friday, August 5, 2022, 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. ? Second Quarter 2022 Earnings Call. Participants may also listen to a live webcast of the call by visiting https://viavid.webcasts.com/starthere.jsp?ei=1552589&tp_key=c8ec588c28. 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: 13730345. A webcast replay of the conference call will be available shortly after the call at the above link. Additional information is available on the Company's website 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

Six Months Ended

June 30,

June 30,

2022

 

2021

2022

 

2021

STATEMENTS OF OPERATIONS

 

 

 

Net Revenues

$

319,439

$

304,464

$

594,734

$

545,229

 

Station Expenses

259,153

244,412

484,745

455,835

Station Expenses - Non-Cash Compensation

990

1,044

2,160

2,117

Corporate Expenses

23,590

22,146

47,681

44,059

Corporate Expenses - Non-Cash Compensation

2,113

1,568

3,933

3,235

Depreciation And Amortization

15,571

14,621

29,110

26,213

Other Expenses

52

293

402

321

Impairment Loss

1,770

701

3,291

1,345

Restructuring Charges

1,016

1,734

1,902

1,919

Net Gain On Sale Or Disposal

(105)

(3,725)

(2,563)

(3,727)

Change In Fair Value of Contingent Consideration

(7,987)

-

(7,704)

-

Refinancing Expenses

-

-

-

473

Total Operating Expenses

296,163

282,794

562,957

531,790

Operating Income

23,276

21,670

31,777

13,439

 

Net Interest Expense

24,529

22,553

48,000

43,713

Net Loss on Early Extinguishment of Debt

-

-

-

8,168

Other Income

(238)

(434)

(238)

(446)

Loss Before Income Tax Benefit

(1,015)

(449)

(15,985)

(37,996)

Income Tax Benefit

(242)

(1,875)

(4,139)

(17,775)

Net Income (Loss)

$

(773)

$

1,426

$

(11,846)

$

(20,221)

 

Net Income (Loss) Per Share ? Basic

$

(0.01)

$

0.01

$

(0.09)

$

(0.15)

 

Net Income (Loss) Per Share ? Diluted

$

(0.01)

$

0.01

$

(0.09)

$

(0.15)

 

Dividends Declared And Paid Per Common Share

$

0.00

$

0.00

$

0.00

$

0.00

 

Weighted Common Shares Outstanding - Basic

138,462

135,808

138,431

135,784

Weighted Common Shares Outstanding - Diluted

138,462

137,787

138,431

135,784

 

 

 

 

SUPPLEMENTAL BREAKDOWN OF REVENUE BY TYPE

Spot (local and national)

$

204,486

$

202,797

$

379,621

$

356,998

Digital (including podcasting)

69,300

58,435

127,339

108,368

Network

21,789

20,603

42,929

38,173

Sponsorships and Events

11,638

10,771

21,964

19,929

Other

12,226

11,858

22,881

21,761

$

319,439

$

304,464

$

594,734

$

545,229

Political

$

4,029

$

2,294

$

5,288

$

3,557

 

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

 

2021

2022

 

2021

SUPPLEMENTAL BREAKDOWN OF REVENUE BY FORMAT

Music

$

158,581

$

159,704

$

299,045

$

289,449

Sports

64,828

63,004

117,898

104,642

News/Talk

51,764

49,685

100,114

92,239

Non-format specific

44,266

32,071

77,677

58,899

$

319,439

$

304,464

$

594,734

$

545,229

 
 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Net Capital Expenditures

$

32,382

$

12,314

$

46,904

$

19,594

Adjusted Income Taxes Paid (Refunded)

$

409

$

321

$

(14,792)

$

(172)

Cash Dividends On Common Stock Declared And Paid

$

-

$

-

$

-

$

-

 

SELECTED BALANCE SHEET DATA

June 30,

December

31,

2022

2021

Cash and Cash Equivalents

$

40,490

$

59,439

Restricted Cash

$

91

$

-

Senior Debt - Term B-2 Loan (Includes Current Portion)

$

632,415

$

632,415

Senior Debt - Revolver (Includes Current Portion)

$

135,000

$

97,727

Senior Secured Notes - 2027

$

460,000

$

470,000

Senior Secured Notes - 2029

$

540,000

$

540,000

Accounts Receivable Facility

$

75,000

$

75,000

Total Shareholders' Equity

$

645,761

$

652,205

 

OTHER FINANCIAL DATA

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

 

2021

2022

 

2021

 

Reconciliation Of GAAP Net Income (Loss) To Adjusted EBITDA and To Adjusted Free Cash Flow

Net Income (Loss)

$

(773)

$

1,426

$

(11,846)

$

(20,221)

Income Tax Benefit

(242)

(1,875)

(4,139)

(17,775)

Net Interest Expense

24,529

22,553

48,000

43,713

Corporate Expenses - Non-Cash Compensation

2,113

1,568

3,933

3,235

Station Expenses - Non-Cash Compensation

990

1,044

2,160

2,117

Depreciation And Amortization

15,571

14,621

29,110

26,213

Other Expenses

147

293

497

321

Restructuring Charges

1,016

1,734

1,902

1,919

COVID-19 Related Expenses (Recoveries)

164

(612)

353

(406)

Non-Recurring Expenses Otherwise Included in Corporate Expenses

1,525

2,597

1,687

5,255

Impairment Loss

1,770

701

3,291

1,345

Change in Fair Value of Contingent Consideration

(7,987)

-

(7,704)

-

Refinancing Expenses

-

-

-

473

Net Loss On Early Extinguishment Of Debt

-

-

-

8,168

Other Income

(238)

(434)

(238)

(446)

Net Gain On Sale Or Disposal

 

(105)

(3,725)

(2,563)

(3,727)

Adjusted EBITDA

 

38,480

39,891

64,443

50,184

Net Interest Expense

(24,529)

(22,553)

(48,000)

(43,713)

Deferred Financing Costs Included In Interest Expense

1,281

1,197

2,540

2,238

Amortization Debt Premium Included In Interest Expense

(256)

(242)

(512)

(1,090)

Net Capital Expenditures

(32,382)

(12,314)

(46,904)

(19,594)

Adjusted Income Taxes (Paid) Refunded

(409)

(321)

14,792

172

Adjusted Free Cash Flow

$

(17,815)

$

5,658

$

(13,641)

$

(11,803)

 

 


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News published on 5 august 2022 at 08:45 and distributed by: