Colorado Media Newsroom
May 9th, 2024, 07:21 AM
From Radio Insight:
iHeartMedia, Inc. (Nasdaq: IHRT) today reported financial results for the quarter ended March 31, 2024.
Financial Highlights: 1
Q1 2024 Consolidated Results
Q1 Revenue of $799 million, down 1.5%; in line with guidance range of flat to down 2%
Excluding Q1 Political Revenue, Q1 Revenue down 2.5%
GAAP Operating loss of $35 million vs. $49 million in Q1 2023
Consolidated Adjusted EBITDA of $105 million, within previously disclosed guidance range of $100 million to $110 million, compared to $93 million in Q1 2023
Cash Flows used for operating activities of $59 million
Free Cash Flow of $(81) million
Q1 2024 Digital Audio Group Results
Digital Audio Group Revenue of $239 million up 7%
Podcast Revenue of $91 million up 18%
Digital Revenue excluding Podcast of $148 million up 1%
Segment Adjusted EBITDA of $68 million up 26%
Digital Audio Group Adjusted EBITDA margin of 28.5%
Q1 2024 Multiplatform Group Results
Multiplatform Group Revenue of $493 million down 7%
Excluding Multiplatform Group Q1 Political Revenue, Multiplatform Group Q1 Revenue down 8%
Segment Adjusted EBITDA of $77 million down 11%
Multiplatform Group Adjusted EBITDA margin of 15.6%
Continued Proactive Capital Structure Improvement
Cash balance and total available liquidity2 of $361 million and $788 million, respectively, as of March 31, 2024
Received cash proceeds of $101 million from sale of equity interest in BMI in February 2024
As of March 31, 2024, aggregate Notes repurchases since Q2 2022 of $534 million at a discount to par for $447 million cash; in aggregate expected to generate approximately $45 million of annualized interest savings
Cumulative reduction of the outstanding principal balance of these Notes from $1.45 billion as of March 31, 2022 to approximately $0.9 billion as of March 31, 2024
Guidance
Q2 Consolidated Revenue expected to be approximately flat
Q2 Consolidated Adjusted EBITDA3 expected to be $140 million to $160 million
Remain committed to long term target of approximately 4x Net Debt to Adjusted EBITDA (“net leverage”)3
Statement from Senior Management
?We?re pleased to report our first quarter of year-over-year Adjusted EBITDA growth in five quarters, driven by the substantial sequential year-over-year improvement in the performance of all our segments: the Multiplatform Group, the Digital Audio Group, and the Audio and Media Services Group ? with the Digital Audio Group hitting its best Q1 EBITDA margin ever,? said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. ?Additionally, our Q1 results were in line with our previously provided Adjusted EBITDA and Revenue guidance ranges. Although the marketplace continues to be dynamic, we continue to see meaningful opportunities for growth in our businesses and we remain confident in 2024 as a recovery year.?
?We continue to see signs of improvement throughout both our businesses and the broader advertising marketplace, and we expect 2024 to be a significant growth year,? said Rich Bressler, iHeartMedia?s President, COO and CFO. ?Our high-growth Digital Audio Group?s Adjusted EBITDA was up 26% over prior year with first quarter revenues up 7.0% vs. prior year, and represented thirty percent of the company?s total revenue; we saw improvement in our Multiplatform Group; and as an early indication of the potential for political revenue, we are currently pacing up 16% for the full year in political revenue compared to 2020, the last presidential election cycle, which was the highest political revenue year for the company.?
Consolidated Results of Operations
First Quarter 2024 Consolidated Results
Our consolidated revenue decreased $12.2 million, or 1.5%, during the three months ended March 31, 2024 compared to the same period of 2023. Digital Audio revenue increased $15.6 million, or 7.0%, driven primarily by continuing increases in demand for podcast advertising. Multiplatform revenue decreased $35.6 million, or 6.7%, primarily resulting from a decrease in broadcast advertising in connection with continued uncertain market conditions and a decrease in trade revenues related to the 2024 iHeartRadio Music Awards, partially offset by an increase in political revenues as 2024 is a presidential election year. Audio & Media Services revenue increased $7.8 million, or 12.7%, primarily as a result of contract termination fees earned by Katz Media and due to higher political revenue.
Consolidated direct operating expenses decreased $3.2 million, or 0.9%, during the three months ended March 31, 2024 compared to the same period of 2023. The decrease was primarily driven by certain lower variable content costs including broadcast profit sharing expense, third-party digital costs in connection with COVID-19 related advertisers, and event costs related to the timing of the 2024 iHeartRadio Music Awards, partially offset by certain higher variable content costs, including higher third-party digital costs and sales commissions related to the increase in digital revenues and an increase in broadcast music license fees.
Consolidated Selling, General & Administrative (“SG&A”) expenses decreased $17.7 million, or 4.4%, during the three months ended March 31, 2024 compared to the same period of 2023. The decrease was driven primarily by lower trade expense due to the timing of the 2024 iHeartRadio Music Awards and lower bonus expense based on results, partially offset by an increase in certain costs incurred in connection with executing on our cost savings initiatives.
Our consolidated GAAP Operating loss was $34.7 million compared to $48.9 million in the first quarter of 2023, primarily resulting from a decrease in trade expense due to the timing of the 2024 iHeartRadio Music Awards, a decrease in variable bonus expense, and an increase in political revenues, partially offset by the decrease in revenue from our Multiplatform Group in connection with continued uncertain market conditions and a decrease in trade revenues.
Adjusted EBITDA increased to $104.6 million compared to $93.4 million in the prior-year period.
Cash used for operating activities was $59.3 million, compared to $94.0 million in the prior-year period primarily due to improvement in the timing of receivable collections and timing of payable payments, partially offset by the decrease in broadcast radio revenue and an increase in cash bonus payments in 2024 compared to 2023. Free Cash Flow was $(80.9) million, compared to $(133.1) million in the prior year period.
Business Segments: Results of Operations
First Quarter 2024 Multiplatform Group Results
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
493,463
$
529,013
(6.7
)%
Operating expenses1
416,281
441,961
(5.8
)%
Segment Adjusted EBITDA
$
77,182
$
87,052
(11.3
)%
Segment Adjusted EBITDA margin
15.6
%
16.5
%
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses.
Revenue from our Multiplatform Group decreased $35.6 million, or 6.7% YoY, primarily due to a decrease in broadcast advertising in connection with continued uncertain market conditions and a decrease in trade and barter revenues related to the 2024 iHeartRadio Music Awards, partially offset by an increase in political revenues. Broadcast revenue declined $23.9 million, or 6.2% YoY, driven by lower spot revenue and trade and barter revenues, partially offset by an increase in political advertising. Networks declined $5.9 million, or 5.5% YoY. Revenue from Sponsorship and Events decreased by $4.8 million, or 14.6% YoY.
Operating expenses decreased $25.7 million, or 5.8% YoY, driven primarily by lower trade expense and live event costs due to the timing of the 2024 iHeartRadio Music Awards, as well as lower bonus expense based on results, partially offset by higher broadcast music license fees.
Segment Adjusted EBITDA Margin decreased YoY to 15.6% from 16.5%.
First Quarter 2024 Digital Audio Group Results
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
238,968
$
223,396
7.0
%
Operating expenses1
170,841
169,277
0.9
%
Segment Adjusted EBITDA
$
68,127
$
54,119
25.9
%
Segment Adjusted EBITDA margin
28.5
%
24.2
%
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses.
Revenue from our Digital Audio Group increased $15.6 million, or 7.0% YoY, driven by Podcast revenue, which increased $13.8 million, or 18.0% YoY, to $90.6 million, driven primarily by increased demand for podcasting from advertisers, and Digital, excluding Podcast revenue, which grew $1.8 million, or 1.2% YoY, to $148.3 million, driven by an increase in demand for digital advertising, partially offset by a decrease in COVID-19 related advertisers.
Operating expenses increased $1.6 million, or 0.9% YoY, primarily driven by higher variable content costs, including higher third-party digital costs and sales commissions related to the increase in revenues, as well as higher merchandising and event costs, partially offset by lower third-party digital costs in connection with COVID-19 related advertisers and lower compensation expense.
Segment Adjusted EBITDA Margin increased YoY to 28.5% from 24.2%.
First Quarter 2024 Audio & Media Services Group Results
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
69,168
$
61,351
12.7
%
Operating expenses1
45,473
46,007
(1.2
)%
Segment Adjusted EBITDA
$
23,695
$
15,344
54.4
%
Segment Adjusted EBITDA margin
34.2
%
24.9
%
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses.
Revenue from our Audio & Media Services Group increased $7.8 million, or 12.7% YoY, primarily due to contract termination fees earned by Katz Media and due to higher political revenue as 2024 is a presidential election year.
Operating expenses decreased $0.5 million, or 1.2% YoY, primarily as a result of a favorable shift in the sales mix toward services.
Segment Adjusted EBITDA Margin increased YoY to 34.2% from 24.9%.
GAAP and Non-GAAP Measures: Consolidated
(In thousands)
Three Months Ended
March 31,
2024
2023
Revenue
$
799,038
$
811,239
Operating loss
(34,708
)
(48,862
)
Adjusted EBITDA1
104,617
93,424
Net loss
(18,108
)
(222,363
)
Cash used for operating activities2
(59,277
)
(93,983
)
Free cash flow1,2
(80,859
)
(133,148
)
_______________________
1
See the end of this press release for reconciliations of (i) Adjusted EBITDA to Operating loss, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to cash used for operating activities, (iv) revenue, excluding political advertising revenue, to revenue, and (v) Net Debt to Total Debt. See also the definitions of Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA margin, and Net Debt under the Supplemental Disclosure Regarding Non-GAAP Financial Information section in this release.
2
We made cash interest payments of $105.9 million in the three months ended March 31, 2024, compared to $101.8 million in the three months ended March 31, 2023.
Certain prior period amounts have been reclassified to conform to the 2024 presentation of financial information throughout the press release.
Liquidity and Financial Position
As of March 31, 2024, we had $361.4 million of cash on our balance sheet. For the three months ended March 31, 2024, cash used for operating activities was $59.3 million, cash provided by investing activities was $78.0 million and cash used for financing activities was $3.5 million.
Capital expenditures for the three months ended March 31, 2024 were $21.6 million compared to $39.2 million in the three months ended March 31, 2023. Capital expenditures during the three months ended March 31, 2024 decreased primarily due to lower spending on real estate optimization initiatives.
As of March 31, 2024, the Company had $5,216.8 million of total debt and $4,855.4 million of Net Debt. The terms of our capital structure include no material maintenance covenants, and there are no material debt maturities prior to May 2026.
Cash balance and total available liquidity4 were $361.4 million and $788 million, respectively, as of March 31, 2024.
Revenue Streams
The tables below present the comparison of our historical revenue streams (including political revenue) for the periods presented:
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Broadcast Radio
$
359,338
$
383,238
(6.2
)%
Networks
102,051
107,954
(5.5
)%
Sponsorship and Events
27,829
32,587
(14.6
)%
Other
4,245
5,234
(18.9
)%
Multiplatform Group1
493,463
529,013
(6.7
)%
Digital ex. Podcast
148,344
146,585
1.2
%
Podcast
90,624
76,811
18.0
%
Digital Audio Group
238,968
223,396
7.0
%
Audio & Media Services Group1
69,168
61,351
12.7
%
Eliminations
(2,561
)
(2,521
)
Revenue, total1
$
799,038
$
811,239
(1.5
)%
1
Excluding the impact of political revenue, Revenue from the Multiplatform Group and Consolidated Revenue decreased by 7.6% and 2.5% for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, respectively. Excluding the impact of political revenue, Revenue from Audio & Media Services increased by 6.1% for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. See the end of this press release for a reconciliation of revenue, excluding political advertising revenue, to revenue.
TABLE 1 – Comparison of operating performance
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
799,038
$
811,239
(1.5
)%
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)
341,360
344,620
(0.9
)%
Selling, general and administrative expenses (excludes depreciation and amortization)
385,144
402,801
(4.4
)%
Depreciation and amortization
105,162
108,512
Impairment charges
1,508
3,947
Other operating expense, net
572
221
Operating loss
$
(34,708
)
$
(48,862
)
Depreciation and amortization
105,162
108,512
Impairment charges
1,508
3,947
Other operating expense, net
572
221
Restructuring expenses
23,603
19,454
Share-based compensation expense
8,480
10,152
Adjusted EBITDA1
$
104,617
$
93,424
12.0
%
1.
See the end of this press release for reconciliations of (i) Adjusted EBITDA to Operating loss, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to cash used for operating activities, (iv) revenue, excluding political advertising revenue, to revenue, and (v) Net Debt to Total Debt. See also the definitions of Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA margin and Net Debt under the Supplemental Disclosure section in this release.
TABLE 2 – Statements of Operations
(In thousands)
Three Months Ended
March 31,
2024
2023
Revenue
$
799,038
$
811,239
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)
341,360
344,620
Selling, general and administrative expenses (excludes depreciation and amortization)
385,144
402,801
Depreciation and amortization
105,162
108,512
Impairment charges1
1,508
3,947
Other operating expense, net
572
221
Operating loss
(34,708
)
(48,862
)
Interest expense, net
95,515
95,457
Gain (loss) on investments, net
91,994
(6,505
)
Equity in income (loss) of nonconsolidated affiliates
(45
)
40
Gain on extinguishment of debt
?
4,625
Other expense, net
(496
)
(99
)
Loss before income taxes
(38,770
)
(146,258
)
Income tax benefit (expense)
20,662
(76,105
)
Net loss
(18,108
)
(222,363
)
Less amount attributable to noncontrolling interest
400
(103
)
Net loss attributable to the Company
$
(18,508
)
$
(222,260
)
1Impairment charges in the three months ended March 31, 2024, and 2023 includes $1.5 million and $3.9 million, respectively, of non-cash related to impairment charges due to the write-down of right-of-use assets related to changes in sublease assumptions for certain operating leases previously determined to be subleased as part of strategic actions to streamline our real estate footprint.
TABLE 3 – Selected Balance Sheet Information
Selected balance sheet information for March 31, 2024 and December 31, 2023:
(In millions)
March 31, 2024
December 31, 2023
Cash
$
361.4
$
346.4
Total Current Assets
1,413.1
1,506.9
Net Property, Plant and Equipment
529.1
558.9
Total Assets
6,758.3
6,952.6
Current Liabilities (excluding current portion of long-term debt)
701.8
848.1
Long-term Debt (including current portion of long-term debt)
5,216.8
5,215.2
Stockholders’ Deficit
(398.6
)
(384.8
)
Supplemental Disclosure Regarding Non-GAAP Financial Information
The following tables set forth the Company?s Adjusted EBITDA, Adjusted EBITDA margin, revenues excluding political advertising revenue, and Free Cash Flow for the three months ended March 31, 2024 and 2023, and Net Debt as of March 31, 2024. Adjusted EBITDA is defined as consolidated Operating loss adjusted to exclude restructuring expenses included within Direct operating expenses and SG&A expenses, and share-based compensation expenses included within SG&A expenses, as well as the following line items presented in our Statements of Operations: Depreciation and amortization, Impairment charges, and Other operating expense, net. Alternatively, Adjusted EBITDA is calculated as Net loss, adjusted to exclude Income tax (benefit) expense, Interest expense, net, Depreciation and amortization, (Gain) loss on investments, net, Gain on extinguishment of debt, Other expense, net, Equity in (earnings) loss of nonconsolidated affiliates, Impairment charges, Other operating expense, net, Share-based compensation expense, and restructuring expenses. Restructuring expenses primarily include expenses incurred in connection with cost-saving initiatives, as well as certain expenses, which, in the view of management, are outside the ordinary course of business or otherwise not representative of the Company’s operations during a normal business cycle. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue.
The Company uses Adjusted EBITDA and Adjusted EBITDA margin, among other measures, to evaluate the Company?s operating performance. Adjusted EBITDA is among the primary measures used by management for the planning and forecasting of future periods, as well as for measuring performance for compensation of executives and other members of management. We believe this measure is an important indicator of the Company?s operational strength and performance of its business because it provides a link between operational performance and operating income. It is also a primary measure used by management in evaluating companies as potential acquisition targets.
The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company?s management. The Company believes it helps improve investors? ability to understand the Company?s operating performance and makes it easier to compare the Company?s results with other companies that have different capital structures or tax rates. In addition, the Company believes this measure is also among the primary measures used externally by the Company?s investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry.
Since Adjusted EBITDA is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Operating loss as an indicator of operating performance and may not be comparable to similarly titled measures employed by other companies. Adjusted EBITDA is not necessarily a measure of the Company?s ability to fund its cash needs. As it excludes certain financial information compared with Operating loss, the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded.
We define Free Cash Flow as Cash used for operating activities less capital expenditures, which is disclosed as Purchases of property, plant and equipment in the Company’s Consolidated Statements of Cash Flows. We use Free Cash Flow, among other measures, to evaluate the Company?s liquidity and its ability to generate cash flow. We believe that Free Cash Flow is meaningful to investors because it provides them with a view of the Company’s liquidity after deducting capital expenditures, which are considered to be a necessary component of ongoing operations. In addition, we believe that Free Cash Flow helps improve investors’ ability to compare our liquidity with that of other companies.
Since Free Cash Flow is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Cash used for operating activities and may not be comparable to similarly titled measures employed by other companies. Free Cash Flow is not necessarily a measure of our ability to fund our cash needs.
The Company presents revenue, excluding the effects of political revenue. Due to the cyclical nature of the electoral system and the seasonality of the related political revenue, management believes presenting revenue, excluding the effects of political revenue, provides additional information to investors about the Company?s revenue growth from period to period.
We define Net Debt as Total Debt less Cash and cash equivalents. We define net leverage as Net Debt divided by Adjusted EBITDA. The Company uses net leverage and Net Debt to evaluate the Company’s liquidity. We believe these measures are an important indicator of the Company’s ability to service its long-term debt obligations.
Since these non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance or liquidity.
As required by the SEC rules, the Company provides reconciliations below to the most directly comparable measures reported under GAAP, including (i) Adjusted EBITDA to Operating loss, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to Cash used for operating activities, (iv) revenue, excluding political advertising revenue, to revenue, and (v) Net Debt to Total Debt.
We have provided forecasted Revenue and Adjusted EBITDA guidance for the quarter ending June 30, 2024 and long-term net leverage guidance, which reflects targets for Adjusted EBITDA and net debt. Our Earnings Call on May 9, 2024 may present additional guidance that includes Adjusted EBITDA. A full reconciliation of the forecasted Adjusted EBITDA, net debt and net leverage on a non-GAAP basis to the respective most-directly comparable GAAP metrics cannot be provided without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliations, including gains or losses on investments, extinguishment of debt, equity in nonconsolidated affiliates, impairment charges, stock based compensation, and restructuring as well as the Company’s cash and cash equivalent balance.
Reconciliation of Operating loss to Adjusted EBITDA
(In thousands)
Three Months Ended
March 31,
2024
2023
Operating loss
$
(34,708
)
$
(48,862
)
Depreciation and amortization
105,162
108,512
Impairment charges1
1,508
3,947
Other operating expense, net
572
221
Restructuring expenses
23,603
19,454
Share-based compensation expense
8,480
10,152
Adjusted EBITDA
$
104,617
$
93,424
1Impairment charges in the three months ended March 31, 2024, and 2023 includes $1.5 million and $3.9 million, respectively, of non-cash impairment charges due to the write-down of right-of-use assets related to changes in sublease assumptions for certain operating leases previously determined to be subleased as part of strategic actions to streamline our real estate footprint.
Reconciliation of Net loss to EBITDA and Adjusted EBITDA
(In thousands)
Three Months Ended
March 31,
2024
2023
Net loss
$
(18,108
)
$
(222,363
)
Income tax (benefit) expense
(20,662
)
76,105
Interest expense, net
95,515
95,457
Depreciation and amortization
105,162
108,512
EBITDA
$
161,907
$
57,711
(Gain) loss on investments, net
(91,994
)
6,505
Gain on extinguishment of debt
?
(4,625
)
Other expense, net
496
99
Equity in (earnings) loss of nonconsolidated affiliates
45
(40
)
Impairment charges
1,508
3,947
Other operating expense, net
572
221
Restructuring expenses
23,603
19,454
Share-based compensation expense
8,480
10,152
Adjusted EBITDA
$
104,617
$
93,424
Reconciliation of Cash Used For Operating Activities to Free Cash Flow
(In thousands)
Three Months Ended
March 31,
2024
2023
Cash used for operating activities
$
(59,277
)
$
(93,983
)
Purchases of property, plant and equipment
(21,582
)
(39,165
)
Free cash flow
(80,859
)
(133,148
)
Reconciliation of Revenue to Revenue excluding Political Advertising
(In thousands)
Three Months Ended
March 31,
%
Change
2024
2023
Consolidated revenue
$
799,038
$
811,239
(1.5
)%
Excluding: Political revenue
(11,627
)
(3,603
)
Consolidated revenue, excluding political
$
787,411
$
807,636
(2.5
)%
Multiplatform Group revenue
$
493,463
$
529,013
(6.7
)%
Excluding: Political revenue
(7,663
)
(3,485
)
Multiplatform Group revenue, excluding political
$
485,800
$
525,528
(7.6
)%
Digital Audio Group revenue
$
238,968
$
223,396
7.0
%
Excluding: Political revenue
(271
)
(500
)
Digital Audio Group revenue, excluding political
$
238,697
$
222,896
7.1
%
Audio & Media Group Services revenue
$
69,168
$
61,351
12.7
%
Excluding: Political revenue
(3,693
)
382
Audio & Media Services Group revenue, excluding political
$
65,475
$
61,733
6.1
%
Reconciliation of Total Debt to Net Debt
(In thousands)
March 31,
2024
Current portion of long-term debt
$
289
Long-term debt
5,216,503
Total debt
$
5,216,792
Less: Cash and cash equivalents
361,403
Net debt
$
4,855,389
Segment Results
The following tables present the Company’s segment results for the Company for the periods presented:
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services Group
Corporate and other reconciling items
Eliminations
Consolidated
Three Months Ended March 31, 2024
Revenue
$
493,463
$
238,968
$
69,168
$
?
$
(2,561
)
$
799,038
Operating expenses(1)
416,281
170,841
45,473
64,387
(2,561
)
694,421
Adjusted EBITDA
$
77,182
$
68,127
$
23,695
$
(64,387
)
$
?
$
104,617
Adjusted EBITDA margin
15.6
%
28.5
%
34.3
%
13.1
%
Depreciation and amortization
(105,162
)
Impairment charges
(1,508
)
Other operating expense, net
(572
)
Restructuring expenses
(23,603
)
Share-based compensation expense
(8,480
)
Operating loss
$
(34,708
)
Operating margin
(4.3
)%
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services Group
Corporate and other reconciling items
Eliminations
Consolidated
Three Months Ended March 31, 2023
Revenue
$
529,013
$
223,396
$
61,351
$
?
$
(2,521
)
$
811,239
Operating expenses(1)
441,961
169,277
46,007
63,091
(2,521
)
717,815
Adjusted EBITDA
$
87,052
$
54,119
$
15,344
$
(63,091
)
$
?
$
93,424
Adjusted EBITDA margin
16.5
%
24.2
%
25.0
%
11.5
%
Depreciation and amortization
(108,512
)
Impairment charges
(3,947
)
Other operating expense, net
(221
)
Restructuring expenses
(19,454
)
Share-based compensation expense
(10,152
)
Operating loss
$
(48,862
)
Operating margin
(6.0
)%
(1) Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses and share-based compensation expenses.
more (https://radioinsight.com/headlines/268429/iheartmedia-q1-2024-revenue-drops-1-5/)
iHeartMedia, Inc. (Nasdaq: IHRT) today reported financial results for the quarter ended March 31, 2024.
Financial Highlights: 1
Q1 2024 Consolidated Results
Q1 Revenue of $799 million, down 1.5%; in line with guidance range of flat to down 2%
Excluding Q1 Political Revenue, Q1 Revenue down 2.5%
GAAP Operating loss of $35 million vs. $49 million in Q1 2023
Consolidated Adjusted EBITDA of $105 million, within previously disclosed guidance range of $100 million to $110 million, compared to $93 million in Q1 2023
Cash Flows used for operating activities of $59 million
Free Cash Flow of $(81) million
Q1 2024 Digital Audio Group Results
Digital Audio Group Revenue of $239 million up 7%
Podcast Revenue of $91 million up 18%
Digital Revenue excluding Podcast of $148 million up 1%
Segment Adjusted EBITDA of $68 million up 26%
Digital Audio Group Adjusted EBITDA margin of 28.5%
Q1 2024 Multiplatform Group Results
Multiplatform Group Revenue of $493 million down 7%
Excluding Multiplatform Group Q1 Political Revenue, Multiplatform Group Q1 Revenue down 8%
Segment Adjusted EBITDA of $77 million down 11%
Multiplatform Group Adjusted EBITDA margin of 15.6%
Continued Proactive Capital Structure Improvement
Cash balance and total available liquidity2 of $361 million and $788 million, respectively, as of March 31, 2024
Received cash proceeds of $101 million from sale of equity interest in BMI in February 2024
As of March 31, 2024, aggregate Notes repurchases since Q2 2022 of $534 million at a discount to par for $447 million cash; in aggregate expected to generate approximately $45 million of annualized interest savings
Cumulative reduction of the outstanding principal balance of these Notes from $1.45 billion as of March 31, 2022 to approximately $0.9 billion as of March 31, 2024
Guidance
Q2 Consolidated Revenue expected to be approximately flat
Q2 Consolidated Adjusted EBITDA3 expected to be $140 million to $160 million
Remain committed to long term target of approximately 4x Net Debt to Adjusted EBITDA (“net leverage”)3
Statement from Senior Management
?We?re pleased to report our first quarter of year-over-year Adjusted EBITDA growth in five quarters, driven by the substantial sequential year-over-year improvement in the performance of all our segments: the Multiplatform Group, the Digital Audio Group, and the Audio and Media Services Group ? with the Digital Audio Group hitting its best Q1 EBITDA margin ever,? said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. ?Additionally, our Q1 results were in line with our previously provided Adjusted EBITDA and Revenue guidance ranges. Although the marketplace continues to be dynamic, we continue to see meaningful opportunities for growth in our businesses and we remain confident in 2024 as a recovery year.?
?We continue to see signs of improvement throughout both our businesses and the broader advertising marketplace, and we expect 2024 to be a significant growth year,? said Rich Bressler, iHeartMedia?s President, COO and CFO. ?Our high-growth Digital Audio Group?s Adjusted EBITDA was up 26% over prior year with first quarter revenues up 7.0% vs. prior year, and represented thirty percent of the company?s total revenue; we saw improvement in our Multiplatform Group; and as an early indication of the potential for political revenue, we are currently pacing up 16% for the full year in political revenue compared to 2020, the last presidential election cycle, which was the highest political revenue year for the company.?
Consolidated Results of Operations
First Quarter 2024 Consolidated Results
Our consolidated revenue decreased $12.2 million, or 1.5%, during the three months ended March 31, 2024 compared to the same period of 2023. Digital Audio revenue increased $15.6 million, or 7.0%, driven primarily by continuing increases in demand for podcast advertising. Multiplatform revenue decreased $35.6 million, or 6.7%, primarily resulting from a decrease in broadcast advertising in connection with continued uncertain market conditions and a decrease in trade revenues related to the 2024 iHeartRadio Music Awards, partially offset by an increase in political revenues as 2024 is a presidential election year. Audio & Media Services revenue increased $7.8 million, or 12.7%, primarily as a result of contract termination fees earned by Katz Media and due to higher political revenue.
Consolidated direct operating expenses decreased $3.2 million, or 0.9%, during the three months ended March 31, 2024 compared to the same period of 2023. The decrease was primarily driven by certain lower variable content costs including broadcast profit sharing expense, third-party digital costs in connection with COVID-19 related advertisers, and event costs related to the timing of the 2024 iHeartRadio Music Awards, partially offset by certain higher variable content costs, including higher third-party digital costs and sales commissions related to the increase in digital revenues and an increase in broadcast music license fees.
Consolidated Selling, General & Administrative (“SG&A”) expenses decreased $17.7 million, or 4.4%, during the three months ended March 31, 2024 compared to the same period of 2023. The decrease was driven primarily by lower trade expense due to the timing of the 2024 iHeartRadio Music Awards and lower bonus expense based on results, partially offset by an increase in certain costs incurred in connection with executing on our cost savings initiatives.
Our consolidated GAAP Operating loss was $34.7 million compared to $48.9 million in the first quarter of 2023, primarily resulting from a decrease in trade expense due to the timing of the 2024 iHeartRadio Music Awards, a decrease in variable bonus expense, and an increase in political revenues, partially offset by the decrease in revenue from our Multiplatform Group in connection with continued uncertain market conditions and a decrease in trade revenues.
Adjusted EBITDA increased to $104.6 million compared to $93.4 million in the prior-year period.
Cash used for operating activities was $59.3 million, compared to $94.0 million in the prior-year period primarily due to improvement in the timing of receivable collections and timing of payable payments, partially offset by the decrease in broadcast radio revenue and an increase in cash bonus payments in 2024 compared to 2023. Free Cash Flow was $(80.9) million, compared to $(133.1) million in the prior year period.
Business Segments: Results of Operations
First Quarter 2024 Multiplatform Group Results
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
493,463
$
529,013
(6.7
)%
Operating expenses1
416,281
441,961
(5.8
)%
Segment Adjusted EBITDA
$
77,182
$
87,052
(11.3
)%
Segment Adjusted EBITDA margin
15.6
%
16.5
%
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses.
Revenue from our Multiplatform Group decreased $35.6 million, or 6.7% YoY, primarily due to a decrease in broadcast advertising in connection with continued uncertain market conditions and a decrease in trade and barter revenues related to the 2024 iHeartRadio Music Awards, partially offset by an increase in political revenues. Broadcast revenue declined $23.9 million, or 6.2% YoY, driven by lower spot revenue and trade and barter revenues, partially offset by an increase in political advertising. Networks declined $5.9 million, or 5.5% YoY. Revenue from Sponsorship and Events decreased by $4.8 million, or 14.6% YoY.
Operating expenses decreased $25.7 million, or 5.8% YoY, driven primarily by lower trade expense and live event costs due to the timing of the 2024 iHeartRadio Music Awards, as well as lower bonus expense based on results, partially offset by higher broadcast music license fees.
Segment Adjusted EBITDA Margin decreased YoY to 15.6% from 16.5%.
First Quarter 2024 Digital Audio Group Results
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
238,968
$
223,396
7.0
%
Operating expenses1
170,841
169,277
0.9
%
Segment Adjusted EBITDA
$
68,127
$
54,119
25.9
%
Segment Adjusted EBITDA margin
28.5
%
24.2
%
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses.
Revenue from our Digital Audio Group increased $15.6 million, or 7.0% YoY, driven by Podcast revenue, which increased $13.8 million, or 18.0% YoY, to $90.6 million, driven primarily by increased demand for podcasting from advertisers, and Digital, excluding Podcast revenue, which grew $1.8 million, or 1.2% YoY, to $148.3 million, driven by an increase in demand for digital advertising, partially offset by a decrease in COVID-19 related advertisers.
Operating expenses increased $1.6 million, or 0.9% YoY, primarily driven by higher variable content costs, including higher third-party digital costs and sales commissions related to the increase in revenues, as well as higher merchandising and event costs, partially offset by lower third-party digital costs in connection with COVID-19 related advertisers and lower compensation expense.
Segment Adjusted EBITDA Margin increased YoY to 28.5% from 24.2%.
First Quarter 2024 Audio & Media Services Group Results
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
69,168
$
61,351
12.7
%
Operating expenses1
45,473
46,007
(1.2
)%
Segment Adjusted EBITDA
$
23,695
$
15,344
54.4
%
Segment Adjusted EBITDA margin
34.2
%
24.9
%
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses.
Revenue from our Audio & Media Services Group increased $7.8 million, or 12.7% YoY, primarily due to contract termination fees earned by Katz Media and due to higher political revenue as 2024 is a presidential election year.
Operating expenses decreased $0.5 million, or 1.2% YoY, primarily as a result of a favorable shift in the sales mix toward services.
Segment Adjusted EBITDA Margin increased YoY to 34.2% from 24.9%.
GAAP and Non-GAAP Measures: Consolidated
(In thousands)
Three Months Ended
March 31,
2024
2023
Revenue
$
799,038
$
811,239
Operating loss
(34,708
)
(48,862
)
Adjusted EBITDA1
104,617
93,424
Net loss
(18,108
)
(222,363
)
Cash used for operating activities2
(59,277
)
(93,983
)
Free cash flow1,2
(80,859
)
(133,148
)
_______________________
1
See the end of this press release for reconciliations of (i) Adjusted EBITDA to Operating loss, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to cash used for operating activities, (iv) revenue, excluding political advertising revenue, to revenue, and (v) Net Debt to Total Debt. See also the definitions of Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA margin, and Net Debt under the Supplemental Disclosure Regarding Non-GAAP Financial Information section in this release.
2
We made cash interest payments of $105.9 million in the three months ended March 31, 2024, compared to $101.8 million in the three months ended March 31, 2023.
Certain prior period amounts have been reclassified to conform to the 2024 presentation of financial information throughout the press release.
Liquidity and Financial Position
As of March 31, 2024, we had $361.4 million of cash on our balance sheet. For the three months ended March 31, 2024, cash used for operating activities was $59.3 million, cash provided by investing activities was $78.0 million and cash used for financing activities was $3.5 million.
Capital expenditures for the three months ended March 31, 2024 were $21.6 million compared to $39.2 million in the three months ended March 31, 2023. Capital expenditures during the three months ended March 31, 2024 decreased primarily due to lower spending on real estate optimization initiatives.
As of March 31, 2024, the Company had $5,216.8 million of total debt and $4,855.4 million of Net Debt. The terms of our capital structure include no material maintenance covenants, and there are no material debt maturities prior to May 2026.
Cash balance and total available liquidity4 were $361.4 million and $788 million, respectively, as of March 31, 2024.
Revenue Streams
The tables below present the comparison of our historical revenue streams (including political revenue) for the periods presented:
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Broadcast Radio
$
359,338
$
383,238
(6.2
)%
Networks
102,051
107,954
(5.5
)%
Sponsorship and Events
27,829
32,587
(14.6
)%
Other
4,245
5,234
(18.9
)%
Multiplatform Group1
493,463
529,013
(6.7
)%
Digital ex. Podcast
148,344
146,585
1.2
%
Podcast
90,624
76,811
18.0
%
Digital Audio Group
238,968
223,396
7.0
%
Audio & Media Services Group1
69,168
61,351
12.7
%
Eliminations
(2,561
)
(2,521
)
Revenue, total1
$
799,038
$
811,239
(1.5
)%
1
Excluding the impact of political revenue, Revenue from the Multiplatform Group and Consolidated Revenue decreased by 7.6% and 2.5% for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, respectively. Excluding the impact of political revenue, Revenue from Audio & Media Services increased by 6.1% for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. See the end of this press release for a reconciliation of revenue, excluding political advertising revenue, to revenue.
TABLE 1 – Comparison of operating performance
(In thousands)
Three Months Ended
March 31,
%
2024
2023
Change
Revenue
$
799,038
$
811,239
(1.5
)%
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)
341,360
344,620
(0.9
)%
Selling, general and administrative expenses (excludes depreciation and amortization)
385,144
402,801
(4.4
)%
Depreciation and amortization
105,162
108,512
Impairment charges
1,508
3,947
Other operating expense, net
572
221
Operating loss
$
(34,708
)
$
(48,862
)
Depreciation and amortization
105,162
108,512
Impairment charges
1,508
3,947
Other operating expense, net
572
221
Restructuring expenses
23,603
19,454
Share-based compensation expense
8,480
10,152
Adjusted EBITDA1
$
104,617
$
93,424
12.0
%
1.
See the end of this press release for reconciliations of (i) Adjusted EBITDA to Operating loss, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to cash used for operating activities, (iv) revenue, excluding political advertising revenue, to revenue, and (v) Net Debt to Total Debt. See also the definitions of Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA margin and Net Debt under the Supplemental Disclosure section in this release.
TABLE 2 – Statements of Operations
(In thousands)
Three Months Ended
March 31,
2024
2023
Revenue
$
799,038
$
811,239
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)
341,360
344,620
Selling, general and administrative expenses (excludes depreciation and amortization)
385,144
402,801
Depreciation and amortization
105,162
108,512
Impairment charges1
1,508
3,947
Other operating expense, net
572
221
Operating loss
(34,708
)
(48,862
)
Interest expense, net
95,515
95,457
Gain (loss) on investments, net
91,994
(6,505
)
Equity in income (loss) of nonconsolidated affiliates
(45
)
40
Gain on extinguishment of debt
?
4,625
Other expense, net
(496
)
(99
)
Loss before income taxes
(38,770
)
(146,258
)
Income tax benefit (expense)
20,662
(76,105
)
Net loss
(18,108
)
(222,363
)
Less amount attributable to noncontrolling interest
400
(103
)
Net loss attributable to the Company
$
(18,508
)
$
(222,260
)
1Impairment charges in the three months ended March 31, 2024, and 2023 includes $1.5 million and $3.9 million, respectively, of non-cash related to impairment charges due to the write-down of right-of-use assets related to changes in sublease assumptions for certain operating leases previously determined to be subleased as part of strategic actions to streamline our real estate footprint.
TABLE 3 – Selected Balance Sheet Information
Selected balance sheet information for March 31, 2024 and December 31, 2023:
(In millions)
March 31, 2024
December 31, 2023
Cash
$
361.4
$
346.4
Total Current Assets
1,413.1
1,506.9
Net Property, Plant and Equipment
529.1
558.9
Total Assets
6,758.3
6,952.6
Current Liabilities (excluding current portion of long-term debt)
701.8
848.1
Long-term Debt (including current portion of long-term debt)
5,216.8
5,215.2
Stockholders’ Deficit
(398.6
)
(384.8
)
Supplemental Disclosure Regarding Non-GAAP Financial Information
The following tables set forth the Company?s Adjusted EBITDA, Adjusted EBITDA margin, revenues excluding political advertising revenue, and Free Cash Flow for the three months ended March 31, 2024 and 2023, and Net Debt as of March 31, 2024. Adjusted EBITDA is defined as consolidated Operating loss adjusted to exclude restructuring expenses included within Direct operating expenses and SG&A expenses, and share-based compensation expenses included within SG&A expenses, as well as the following line items presented in our Statements of Operations: Depreciation and amortization, Impairment charges, and Other operating expense, net. Alternatively, Adjusted EBITDA is calculated as Net loss, adjusted to exclude Income tax (benefit) expense, Interest expense, net, Depreciation and amortization, (Gain) loss on investments, net, Gain on extinguishment of debt, Other expense, net, Equity in (earnings) loss of nonconsolidated affiliates, Impairment charges, Other operating expense, net, Share-based compensation expense, and restructuring expenses. Restructuring expenses primarily include expenses incurred in connection with cost-saving initiatives, as well as certain expenses, which, in the view of management, are outside the ordinary course of business or otherwise not representative of the Company’s operations during a normal business cycle. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue.
The Company uses Adjusted EBITDA and Adjusted EBITDA margin, among other measures, to evaluate the Company?s operating performance. Adjusted EBITDA is among the primary measures used by management for the planning and forecasting of future periods, as well as for measuring performance for compensation of executives and other members of management. We believe this measure is an important indicator of the Company?s operational strength and performance of its business because it provides a link between operational performance and operating income. It is also a primary measure used by management in evaluating companies as potential acquisition targets.
The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company?s management. The Company believes it helps improve investors? ability to understand the Company?s operating performance and makes it easier to compare the Company?s results with other companies that have different capital structures or tax rates. In addition, the Company believes this measure is also among the primary measures used externally by the Company?s investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry.
Since Adjusted EBITDA is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Operating loss as an indicator of operating performance and may not be comparable to similarly titled measures employed by other companies. Adjusted EBITDA is not necessarily a measure of the Company?s ability to fund its cash needs. As it excludes certain financial information compared with Operating loss, the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded.
We define Free Cash Flow as Cash used for operating activities less capital expenditures, which is disclosed as Purchases of property, plant and equipment in the Company’s Consolidated Statements of Cash Flows. We use Free Cash Flow, among other measures, to evaluate the Company?s liquidity and its ability to generate cash flow. We believe that Free Cash Flow is meaningful to investors because it provides them with a view of the Company’s liquidity after deducting capital expenditures, which are considered to be a necessary component of ongoing operations. In addition, we believe that Free Cash Flow helps improve investors’ ability to compare our liquidity with that of other companies.
Since Free Cash Flow is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Cash used for operating activities and may not be comparable to similarly titled measures employed by other companies. Free Cash Flow is not necessarily a measure of our ability to fund our cash needs.
The Company presents revenue, excluding the effects of political revenue. Due to the cyclical nature of the electoral system and the seasonality of the related political revenue, management believes presenting revenue, excluding the effects of political revenue, provides additional information to investors about the Company?s revenue growth from period to period.
We define Net Debt as Total Debt less Cash and cash equivalents. We define net leverage as Net Debt divided by Adjusted EBITDA. The Company uses net leverage and Net Debt to evaluate the Company’s liquidity. We believe these measures are an important indicator of the Company’s ability to service its long-term debt obligations.
Since these non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance or liquidity.
As required by the SEC rules, the Company provides reconciliations below to the most directly comparable measures reported under GAAP, including (i) Adjusted EBITDA to Operating loss, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to Cash used for operating activities, (iv) revenue, excluding political advertising revenue, to revenue, and (v) Net Debt to Total Debt.
We have provided forecasted Revenue and Adjusted EBITDA guidance for the quarter ending June 30, 2024 and long-term net leverage guidance, which reflects targets for Adjusted EBITDA and net debt. Our Earnings Call on May 9, 2024 may present additional guidance that includes Adjusted EBITDA. A full reconciliation of the forecasted Adjusted EBITDA, net debt and net leverage on a non-GAAP basis to the respective most-directly comparable GAAP metrics cannot be provided without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliations, including gains or losses on investments, extinguishment of debt, equity in nonconsolidated affiliates, impairment charges, stock based compensation, and restructuring as well as the Company’s cash and cash equivalent balance.
Reconciliation of Operating loss to Adjusted EBITDA
(In thousands)
Three Months Ended
March 31,
2024
2023
Operating loss
$
(34,708
)
$
(48,862
)
Depreciation and amortization
105,162
108,512
Impairment charges1
1,508
3,947
Other operating expense, net
572
221
Restructuring expenses
23,603
19,454
Share-based compensation expense
8,480
10,152
Adjusted EBITDA
$
104,617
$
93,424
1Impairment charges in the three months ended March 31, 2024, and 2023 includes $1.5 million and $3.9 million, respectively, of non-cash impairment charges due to the write-down of right-of-use assets related to changes in sublease assumptions for certain operating leases previously determined to be subleased as part of strategic actions to streamline our real estate footprint.
Reconciliation of Net loss to EBITDA and Adjusted EBITDA
(In thousands)
Three Months Ended
March 31,
2024
2023
Net loss
$
(18,108
)
$
(222,363
)
Income tax (benefit) expense
(20,662
)
76,105
Interest expense, net
95,515
95,457
Depreciation and amortization
105,162
108,512
EBITDA
$
161,907
$
57,711
(Gain) loss on investments, net
(91,994
)
6,505
Gain on extinguishment of debt
?
(4,625
)
Other expense, net
496
99
Equity in (earnings) loss of nonconsolidated affiliates
45
(40
)
Impairment charges
1,508
3,947
Other operating expense, net
572
221
Restructuring expenses
23,603
19,454
Share-based compensation expense
8,480
10,152
Adjusted EBITDA
$
104,617
$
93,424
Reconciliation of Cash Used For Operating Activities to Free Cash Flow
(In thousands)
Three Months Ended
March 31,
2024
2023
Cash used for operating activities
$
(59,277
)
$
(93,983
)
Purchases of property, plant and equipment
(21,582
)
(39,165
)
Free cash flow
(80,859
)
(133,148
)
Reconciliation of Revenue to Revenue excluding Political Advertising
(In thousands)
Three Months Ended
March 31,
%
Change
2024
2023
Consolidated revenue
$
799,038
$
811,239
(1.5
)%
Excluding: Political revenue
(11,627
)
(3,603
)
Consolidated revenue, excluding political
$
787,411
$
807,636
(2.5
)%
Multiplatform Group revenue
$
493,463
$
529,013
(6.7
)%
Excluding: Political revenue
(7,663
)
(3,485
)
Multiplatform Group revenue, excluding political
$
485,800
$
525,528
(7.6
)%
Digital Audio Group revenue
$
238,968
$
223,396
7.0
%
Excluding: Political revenue
(271
)
(500
)
Digital Audio Group revenue, excluding political
$
238,697
$
222,896
7.1
%
Audio & Media Group Services revenue
$
69,168
$
61,351
12.7
%
Excluding: Political revenue
(3,693
)
382
Audio & Media Services Group revenue, excluding political
$
65,475
$
61,733
6.1
%
Reconciliation of Total Debt to Net Debt
(In thousands)
March 31,
2024
Current portion of long-term debt
$
289
Long-term debt
5,216,503
Total debt
$
5,216,792
Less: Cash and cash equivalents
361,403
Net debt
$
4,855,389
Segment Results
The following tables present the Company’s segment results for the Company for the periods presented:
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services Group
Corporate and other reconciling items
Eliminations
Consolidated
Three Months Ended March 31, 2024
Revenue
$
493,463
$
238,968
$
69,168
$
?
$
(2,561
)
$
799,038
Operating expenses(1)
416,281
170,841
45,473
64,387
(2,561
)
694,421
Adjusted EBITDA
$
77,182
$
68,127
$
23,695
$
(64,387
)
$
?
$
104,617
Adjusted EBITDA margin
15.6
%
28.5
%
34.3
%
13.1
%
Depreciation and amortization
(105,162
)
Impairment charges
(1,508
)
Other operating expense, net
(572
)
Restructuring expenses
(23,603
)
Share-based compensation expense
(8,480
)
Operating loss
$
(34,708
)
Operating margin
(4.3
)%
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services Group
Corporate and other reconciling items
Eliminations
Consolidated
Three Months Ended March 31, 2023
Revenue
$
529,013
$
223,396
$
61,351
$
?
$
(2,521
)
$
811,239
Operating expenses(1)
441,961
169,277
46,007
63,091
(2,521
)
717,815
Adjusted EBITDA
$
87,052
$
54,119
$
15,344
$
(63,091
)
$
?
$
93,424
Adjusted EBITDA margin
16.5
%
24.2
%
25.0
%
11.5
%
Depreciation and amortization
(108,512
)
Impairment charges
(3,947
)
Other operating expense, net
(221
)
Restructuring expenses
(19,454
)
Share-based compensation expense
(10,152
)
Operating loss
$
(48,862
)
Operating margin
(6.0
)%
(1) Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses and share-based compensation expenses.
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