TOWNSQUARE REPORTS ALL-TIME HIGH NET REVENUE AND ADJUSTED EBITDA IN 2022

Digital Transformation Evident: 50% of Complete Income and Adjusted Working Revenue from Digital Sources in 2022, as Digital Income Will increase +16% YOY

Web Leverage Declines to All-Time Low 4.29x

Broadcasts $0.1875 Dividend Per Share

PURCHASE, N.Y., March 9, 2023 /PRNewswire/ — Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare”, the “Firm,” “we,” “us,” or “our”) introduced at this time its monetary outcomes for the fourth quarter and yr ended December 31, 2022.

“I’m proud to report that Townsquare’s transformation right into a Digital First Native Media Firm allowed us to ship file ends in 2022 regardless of a progressively difficult financial panorama. In 2022, we drove web income and Adjusted EBITDA to new highs with sturdy web income progress of +11% year-over-year and Adjusted EBITDA progress of +8% year-over-year. As well as, we generated vital money circulation from operations of $50 million, ending the yr with over $43 million of money, and web leverage declined to an all-time low of 4.29x,” commented Invoice Wilson, Chief Govt Officer of Townsquare Media, Inc. “2022 was a big inflection level for our Firm. It marked the primary yr the place radio not comprised the vast majority of our income and revenue, additional separating Townsquare from our native media friends, and putting a highlight on our world-class crew and our distinctive and differentiated technique, belongings, platforms and options. Our progress engine has been and can proceed to be our digital options, which had been the first driver of our 2022 progress. Complete digital income elevated +16% year-over-year (and +12% within the fourth quarter) to $231 million, and complete digital Adjusted Working Revenue elevated +12% year-over-year to $69 million, representing a 30% revenue margin. We imagine Townsquare’s potential to drive worthwhile, sustainable digital progress is a key differentiator for our Firm, and we reaffirm our expectation that our digital income will develop to not less than $275 million by 2024.”

Mr. Wilson continued, “We’re uniquely positioned as a Digital First Native Media Firm targeted principally on markets outdoors of the High 50 in america, with a resilient digital progress engine supported by each a recurring subscription digital advertising and marketing options enterprise, with a big addressable market and restricted competitors, and a extremely differentiated digital promoting know-how platform. We imagine that our enterprise mannequin and technique place us to climate the present financial atmosphere higher than most. We’ll proceed to develop and help our native groups throughout these intervals of macroeconomic challenges in order that we are able to proceed to be a useful resource to our native shoppers and audiences, and be nicely positioned to seize accelerated progress when financial tailwinds return. Our success has been and can proceed to be the results of the Townsquare Group specializing in what we do greatest: creating top quality, native unique content material for our audiences and delivering artistic and cost-effective advertising and marketing options for our native shoppers with sturdy return on funding.”

The Firm additionally introduced at this time that its Board of Administrators permitted the initiation of a quarterly money dividend of $0.1875 per share. The dividend will likely be payable on Could 1, 2023 to shareholders of file as of the shut of enterprise on March 27, 2023.

“The Board’s determination to approve a dividend displays confidence in our present capitalization, the power of our stability sheet, and our free money circulation era. Our quarterly money dividend of $0.1875 per share, or $0.75 per share on an annual foundation, commences in Could 2023,” concluded Mr. Wilson.

Phase Reporting
We now have three reportable working segments, Subscription Digital Advertising and marketing Options, Digital Promoting and Broadcast Promoting. The Subscription Digital Advertising and marketing Options phase consists of our subscription digital advertising and marketing options enterprise, Townsquare Interactive. The Digital Promoting phase, marketed externally as Townsquare Ignite, consists of digital promoting on our owned and operated digital properties, our first celebration knowledge digital administration platform and our digital programmatic promoting platform. The Broadcast Promoting phase consists of our native, regional, and nationwide promoting merchandise and options delivered by way of terrestrial radio broadcast, and different miscellaneous income that’s related to our broadcast promoting platform. The rest of our enterprise is reported within the Different class, which incorporates our dwell occasions enterprise.

Fourth Quarter Highlights*

• As in comparison with the fourth quarter of 2021:
• Web income elevated 8.8%
• Web revenue elevated $2.0 million
• Adjusted EBITDA elevated 11.0%
• Complete Digital web income elevated 11.9%
• Subscription Digital Advertising and marketing Options (“Townsquare Interactive”) web income elevated 4.4%
• Digital Promoting web income elevated 16.9%
• Complete Digital Adjusted Working Revenue elevated 20.1%
• Subscription Digital Advertising and marketing Options Adjusted Working Revenue elevated 6.4%
• Digital Promoting Adjusted Working Revenue elevated 28.9%
• Broadcast Promoting web income elevated 4.0%
• Diluted revenue per share was $0.20, and Adjusted Web Revenue per diluted share was $0.66

Full Yr Highlights*

• As in comparison with the yr ended December 31, 2021:
• Web income elevated 10.8%
• Web revenue decreased $4.4 million
• Adjusted EBITDA elevated 8.2%
• Complete Digital web income elevated 16.2%
• Subscription Digital Advertising and marketing Options web income elevated 10.5%
• Digital Promoting web income elevated 20.2%
• Complete Digital Adjusted Working Revenue elevated 12.2%
• Subscription Digital Advertising and marketing Options Adjusted Working Revenue elevated 7.0%
• Digital Promoting Adjusted Working Revenue elevated 15.7%
• Broadcast Promoting web income elevated 3.8%
• Repurchased mixture $19.2 million of our 2026 Secured Senior Notes at or beneath par
• Accomplished the acquisition of Cherry Creek Broadcasting LLC (“Cherry Creek“) for $18.5 million, web of closing changes

*See beneath for dialogue of non-GAAP measures.

Steerage
For the primary quarter of 2023, web income is predicted to be between $100.0 million and $102.0 million (-0.2% to +1.8% as in comparison with the prior yr), and Adjusted EBITDA is predicted to be between $17.5 million and $18.5 million.

For the total yr 2023, web income is predicted to be between roughly $450 million and $470 million (-2.8% to +1.5% as in comparison with the prior yr), and Adjusted EBITDA is predicted to be between roughly $100 million and $110 million.

Quarter Ended December 31, 2022 In comparison with the Quarter Ended December 31, 2021

Web Income
Web income for the three months ended December 31, 2022 elevated $9.7 million, or 8.8%, to $120.3 million as in comparison with $110.6 million in the identical interval in 2021. Digital Promoting web income elevated $5.4 million, or 16.9%, and Subscription Digital Advertising and marketing Options web income elevated $0.9 million, or 4.4%, as in comparison with the identical interval in 2021. Broadcast Promoting web income elevated $2.3 million, or 4.0%, as in comparison with the identical interval in 2021. Different web income elevated $1.1 million resulting from a rise within the variety of dwell occasions. Excluding political income of $4.0 million and $1.7 million for the three months ended December 31, 2022 and 2021, respectively, web income elevated $7.4 million, or 6.8%, to $116.3 million, Digital Promoting web income elevated $5.2 million, or 16.3%, to $36.8 million, and Broadcast Promoting web income elevated $0.2 million, or 0.4%, to $55.6 million.

Web Revenue
Web revenue for the quarter ended December 31, 2022, elevated $2.0 million to $3.9 million, as in comparison with web revenue of $1.9 million in the identical interval final yr, primarily resulting from an revenue tax profit, partially offset by non-cash impairment prices. Adjusted Web Revenue elevated $8.5 million, primarily resulting from a lower within the provision for revenue taxes of $6.8 million.

Adjusted EBITDA
Adjusted EBITDA for the three months ended December 31, 2022, elevated $2.8 million, or 11.0%, to $28.4 million, as in comparison with $25.6 million in the identical interval final yr. Adjusted EBITDA (Excluding Political) elevated $0.9 million, or 3.7%, to $25.0 million, as in comparison with $24.1 million in the identical interval final yr.

Yr Ended December 31, 2022 In comparison with the Yr Ended December 31, 2021

Web Income
Web income for the yr ended December 31, 2022, elevated $45.1 million, or 10.8%, to $463.1 million as in comparison with $418.0 million in 2021. Digital Promoting income elevated $23.6 million, or 20.2% as in comparison with 2021 and our Subscription Digital Advertising and marketing Options income elevated $8.6 million, or 10.5% as in comparison with 2021, primarily resulting from incremental web subscribers of roughly 3,850 for the yr ended December 31, 2022. The rise in Broadcast Promoting Income of $8.3 million, or 3.8% was due partially to will increase within the buy of recent promoting by our shoppers and a rise in political broadcast promoting income of $3.5 million. The rise in Different web income of $4.7 million is because of a rise in dwell occasions held throughout 2022. Excluding political income of $7.5 million and $3.5 million for the years ended December 31, 2022 and 2021, respectively, web income elevated $41.1 million, or 9.9% to $455.6 million, Digital Promoting web income elevated $23.1 million, or 19.7%, to $139.9 million, and Broadcast Promoting web income elevated $4.8 million, or 2.2%, to $216.8 million.

Web Revenue
Web revenue for the yr ended December 31, 2022 decreased $4.4 million, or 23.4%, to $14.4 million, as in comparison with $18.8 million in the identical interval final yr, primarily pushed by non-cash impairment prices to our FCC licenses, intangible belongings, and investments of $31.1 million, partially offset by a rise in web income. Adjusted Web Revenue elevated $24.4 million, primarily pushed by the rise in web income and a lower within the provision for revenue taxes of $16.3 million.

Adjusted EBITDA
Adjusted EBITDA for the yr ended December 31, 2022 elevated $8.6 million, or 8.2% to $113.7 million, as in comparison with $105.1 million in the identical interval final yr. Adjusted EBITDA (Excluding Political) elevated $5.2 million, or 5.1%, to $107.3 million, as in comparison with $102.1 million in the identical interval final yr.

Liquidity and Capital Assets
As of December 31, 2022, we had a complete of $43.4 million of money and money equivalents and $530.8 million of excellent indebtedness, representing 4.67x and 4.29x gross and web leverage, respectively, primarily based on Adjusted EBITDA for the yr ended December 31, 2022, of $113.7 million.

The desk beneath presents a abstract, as of March 7, 2023, of our excellent frequent inventory.

Convention Name
Townsquare Media, Inc. will host a convention name to debate sure fourth quarter 2022 monetary outcomes and 2023 steerage on Thursday, March 9, 2023 at 8:00 a.m. Jap Time. The convention name dial-in quantity is 1-877-407-0784 (U.S. & Canada) or 1-201-689-8560 (Worldwide) and the affirmation code is 13736640. A dwell webcast of the convention name can even be out there on the investor relations web page of the Firm’s web site at www.townsquaremedia.com.

A replay of the convention name will likely be out there by way of March 16, 2023. To entry the replay, please dial 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (Worldwide) and enter affirmation code 13736640. An online-based archive of the convention name can even be out there on the above web site.

About Townsquare Media, Inc.
Townsquare is a community-focused digital media and digital advertising and marketing options firm with market main native radio stations, principally targeted outdoors the highest 50 markets within the U.S. Our belongings embrace a subscription digital advertising and marketing companies enterprise, Townsquare Interactive, offering web site design, creation and internet hosting, SEO, social media and on-line status administration in addition to different digital month-to-month companies for about 30,650 SMBs; a sturdy digital promoting division, Townsquare Ignite, a strong mixture of a) an owned and operated portfolio of greater than 400 native information and leisure web sites and cell apps together with a community of main nationwide music and leisure manufacturers, accumulating precious first celebration knowledge and b) a proprietary digital programmatic promoting know-how stack with an in-house demand and knowledge administration platform; and a portfolio of 357 native terrestrial radio stations in 74 U.S. markets strategically located outdoors the High 50 markets in america. Our portfolio consists of native media manufacturers reminiscent of WYRK.com, WJON.com and NJ101.5.com, and premier nationwide music manufacturers reminiscent of XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com. For extra data, please go to www.townsquaremedia.com, www.townsquareinteractive.com and www.townsquareignite.com.

Ahead-Trying Statements
Apart from the historic data contained on this press launch, the issues addressed are forward-looking statements throughout the which means of the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements typically focus on our present expectations and projections referring to our monetary situation, outcomes of operations, plans, targets, future efficiency and enterprise. You’ll be able to determine forward-looking statements by the truth that they don’t relate strictly to historic or present information. These statements might embrace phrases reminiscent of “purpose,” “anticipate,” “estimate,” “anticipate,” “forecast,” “outlook,” “potential,” “venture,” “projection,” “plan,” “intend,” “search,” “imagine,” “might,” “might,” “would,” “will,” “ought to,” “can,” “can have,” “probably,” the negatives thereof and different phrases and phrases. Precise occasions or outcomes might differ materially from the outcomes anticipated in these forward-looking statements on account of quite a lot of components. Whereas it’s not possible to determine all such components, components that would trigger precise outcomes to vary materially from these estimated by us embrace the impression of common financial situations in america, or within the particular markets in which we at the moment do enterprise together with provide chain disruptions, inflation, labor shortages and the impact on promoting exercise, business situations, together with current competitors and future aggressive applied sciences, the recognition of radio as a broadcasting and promoting medium, cancellations, disruptions or postponements of promoting schedules in response to nationwide or world occasions, together with the COVID-19 pandemic, our potential to develop and preserve digital applied sciences and rent and retain technical and gross sales expertise, our dependence on key personnel, our capital expenditure necessities, our continued potential to determine appropriate acquisition targets, and consummate and combine any future acquisitions, legislative or regulatory necessities, dangers and uncertainties referring to our leverage and adjustments in rates of interest, our potential to acquire financing at occasions, in quantities and at charges thought-about acceptable by us, our potential to entry the capital markets as and when wanted and on phrases that we think about favorable to us and different components mentioned on this part entitled “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” on this report and below “Danger Components” in our 2022 Annual Report on Type 10-Ok, for the yr ended December 31, 2022, to be filed with the SEC, in addition to different dangers mentioned occasionally in our filings with the SEC. Many of those components are past our potential to foretell or management. As well as, on account of these and different components, our previous monetary efficiency shouldn’t be relied on as a sign of future efficiency. The cautionary statements referred to on this part additionally must be thought-about in reference to any subsequent written or oral forward-looking statements which may be issued by us or individuals appearing on our behalf. The forward-looking statements included on this report are made solely as of the date hereof or as of the date specified herein. We undertake no obligation to publicly replace or revise any forward-looking statements, whether or not on account of new data, future occasions or in any other case, besides as required by regulation.

Non-GAAP Monetary Measures and Definitions
On this press launch, we seek advice from Adjusted Working Revenue, Adjusted EBITDA, Adjusted EBITDA (Excluding Political), Adjusted Web (Loss) Revenue and Adjusted Web Revenue Per Share that are monetary measures that haven’t been ready in accordance with typically accepted accounting rules in america (“GAAP”).

We outline Adjusted Working Revenue as working revenue earlier than the deduction of depreciation and amortization, stock-based compensation, company bills, transaction prices, enterprise realignment prices, impairment of long-lived belongings, intangible belongings and investments and web (achieve) loss on sale and retirement of belongings. We outline Adjusted EBITDA as web revenue earlier than the deduction of revenue taxes, curiosity expense, web, (achieve) loss on repurchases, extinguishment and modification of debt, transaction and enterprise realignment prices, depreciation and amortization, stock-based compensation, impairment of long-lived belongings, intangible belongings and investments, web loss (achieve) on sale and retirement of belongings and different expense (revenue) web. We outline Adjusted EBITDA (Excluding Political) as Adjusted EBITDA much less political web income, web of a 15 % deduction to account for estimated nationwide consultant agency charges, music licensing charges and gross sales commissions expense. Adjusted Web Revenue is outlined as web revenue earlier than the deduction of transaction and enterprise realignment prices, impairment of long-lived belongings, intangible belongings and investments, change in truthful worth of funding, web (achieve) loss on sale and retirement of belongings, (achieve) loss on repurchases, extinguishment and modification of debt, achieve on insurance coverage recoveries and web revenue attributable to non-controlling curiosity, web of revenue taxes. Adjusted Web Revenue Per Share is outlined as Adjusted Web Revenue divided by the weighted common shares excellent. We outline Web Leverage as our complete excellent indebtedness, web of our complete money stability as of December 31, 2022, divided by our Adjusted EBITDA for the twelve months ended December 31, 2022. These measures don’t symbolize, and shouldn’t be thought-about as alternate options to or superior to, monetary outcomes and measures decided or calculated in accordance with GAAP. As well as, these non-GAAP measures aren’t primarily based on any complete set of accounting guidelines or rules. You need to be conscious that sooner or later we might incur bills or prices which are the identical as or just like a few of the changes within the presentation, and we don’t infer that our future outcomes will likely be unaffected by uncommon or non-recurring objects. As well as, these non-GAAP measures is probably not corresponding to similarly-named measures reported by different firms.

We use Adjusted Working Revenue to guage the working efficiency of our enterprise segments. We use Adjusted EBITDA and Adjusted EBITDA (Excluding Political) to facilitate company-to-company working efficiency comparisons by backing out potential variations attributable to variations in capital buildings (affecting curiosity expense), taxation and the age and e book depreciation of services and tools (affecting relative depreciation expense), which can range for various firms for causes unrelated to working efficiency, and to facilitate yr over yr comparisons, by backing out the impression of political income which varies relying on the election cycle and could also be unrelated to working efficiency. We use Adjusted Web Revenue and Adjusted Web Revenue Per Share to evaluate complete firm working efficiency on a constant foundation. We use Web Leverage to measure the Firm’s potential to deal with its debt burden. We imagine that these measures, when thought-about along with our GAAP monetary outcomes, present administration and buyers with a extra full understanding of our enterprise working outcomes, together with underlying tendencies, by excluding the consequences of transaction prices, web (achieve) loss on sale and retirement of belongings, enterprise realignment prices and sure impairments. Additional, whereas discretionary bonuses for members of administration aren’t decided just about particular targets, our board of administrators might think about Adjusted Working Revenue, Adjusted EBITDA, Adjusted EBITDA (Excluding Political), Adjusted Web Revenue, Adjusted Web Revenue Per Share, and Web Leverage when figuring out discretionary bonuses.

Investor Relations
Claire Yenicay
(203) 900-5555
[email protected]

The next desk presents Web income and Adjusted Working Revenue by phase, for the three and twelve months ended December 31, 2022, and 2021, respectively (in 1000’s):

The next desk reconciles Web income to Web income, excluding political income on a GAAP foundation by phase for the three and twelve months ended December 31, 2022, and 2021, respectively (in 1000’s):

The next desk reconciles on a GAAP foundation web revenue, essentially the most immediately comparable monetary measure calculated and offered in accordance with GAAP, to Adjusted Web Revenue for the three and twelve months ended December 31, 2022, and 2021, respectively (in 1000’s, besides per share knowledge):

The next desk reconciles on a GAAP foundation web revenue, essentially the most immediately comparable monetary measure calculated and offered in accordance with GAAP, to Adjusted EBITDA, Adjusted EBITDA (Excluding Political), and Adjusted EBITDA Much less Curiosity, Capex and Taxes for the three and twelve months ended December 31, 2022, and 2021, respectively ({dollars} in 1000’s):

The next tables reconcile Working revenue (loss), essentially the most immediately comparable monetary measure calculated and offered in accordance with GAAP, to Adjusted Working Revenue by phase for the three months ended December 31, 2022, and 2021 (in 1000’s):

The next tables reconcile Working revenue (loss), essentially the most immediately comparable monetary measure calculated and offered in accordance with GAAP, to Adjusted Working Revenue by phase for the yr ended December 31, 2022, and 2021 (in 1000’s):

SOURCE Townsquare Media, Inc.