Townsquare Media reports Q3 adjusted EPS 46c, consensus 32c

Reports Q3 revenue $115.1M, consensus $116.18M. “I am pleased to share that Townsquare’s Q3 results met our previously issued guidance. In the third quarter, net revenue excluding political revenue declined -4% year-over-year and decreased -5% year-over-year in total, and Adjusted EBITDA decreased -12% year-over-year. Our Digital Advertising segment delivered revenue and profit growth once again in Q3, as September year-to-date revenue and Adjusted Operating Income increased +10% and +19%, respectively, each as compared to the prior year. In total, Digital now represents 52% of Townsquare’s total September year-to-date net revenue and 57% of our total September year-to-date Adjusted Operating Income,” commented CEO Bill Wilson. “The strong cash generation characteristics of our assets allowed us to produce $39M of cash flow from operations in the first nine months of 2023, an increase of $7M as compared to the prior year. We could not be more pleased to share that given our strong cash position, we were able to repurchase and retire approximately $14M of our Unsecured Senior Notes at a discount during Q3, bringing our year-to-date total bond repurchases to $27M. In addition, we repurchased approximately 94,000 Class A shares in Q3 (in total, we’ve repurchased 1.7 million shares in 2023), and continue to pay a high-yielding dividend while also investing in our business. We also ended the quarter with a strong cash balance of $38M and net leverage of 4.49x, retaining financial flexibility moving forward.”