Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Audacy Reports Fourth Quarter and Full Year Results By: Audacy, Inc. via Business Wire March 15, 2023 at 08:00 AM EDT Audacy, Inc. (NYSE: AUD) today reported financial results for the quarter and year ended December 31, 2022. Fourth Quarter Summary Net revenues for the quarter were $342.0 million, down 0.8% compared to $344.7 million in the fourth quarter of 2021. Excluding political revenue, revenues for the quarter were down 4% Digital revenues were $69.1 million, up 2% compared to the fourth quarter of 2021 Total operating expenses for the quarter were $295.6 million, which includes a gain on sale of $34.5 million, compared to $292.0 million in the fourth quarter of 2021, which included a gain on sale of $4.6 million Cash operating expenses were up 9% compared to the fourth quarter of 2021 Operating income for the quarter was $46.4 million, compared to operating income of $52.7 million in the fourth quarter of 2021 Adjusted EBITDA for the quarter was $37.1 million, compared to $66.2 million in the fourth quarter of 2021 As of December 31, 2022, the Company’s liquidity was $144.8 million, up from $115.4 at September 30, 2022 Full Year Summary Net revenues for the year were $1.25 billion, up 3% compared to $1.22 billion in 2021. Excluding political revenue, revenues for the year were up 2% Digital revenues were $259.1 million, up 9% compared to 2021 Total operating expenses for the year were $1.33 billion, which includes a non-cash impairment charge of $180.5 million and a gain on sale of $47.7 million, compared to $1.12 billion in 2021, which included a gain on sale of $8.4 million Cash operating expenses were up 6% compared to 2021 Operating loss for the year was $73.7 million, compared to operating income of $95.4 million in 2021 Adjusted EBITDA for the year was $137.9 million, compared to $165.7 million in 2021 David J. Field, Chairman, President and Chief Executive Officer, stated: “Having started 2022 on a great note with revenues up 14% in the first quarter, we ended the year with revenues down 0.8% in the fourth quarter as challenging ad market conditions persisted. For the full year, revenues were up 3%. Fourth quarter expenses grew 9% due to accelerated recognition of podcast expenses, but we anticipate that expenses will be up low single digits in the first quarter and fall below 2022 levels beginning in the second quarter. We continue to vigorously execute our plan to navigate the storm and to position the company for recovery when business conditions improve. Our liquidity improved from $115 million at the end of September to $145 million at year end. With the sale earlier this month of $17 million of towers, we have now completed $73 million in non-strategic asset sales to bolster our liquidity and to support our continued compliance with our financial covenants. We are making solid progress on our key growth drivers including our reinvented streaming audio platform, our national enterprise business development, our podcasting and digital marketing solutions businesses, and our promising ad tech and ad product roadmap. Looking beyond the challenging current macro environment, Audacy has a strong and differentiated, scaled, competitive position in the dynamic and growing audio space and is deeply focused on continuing the work to capitalize on the opportunities and drive a healthy recovery.” Recent Company Developments Non-strategic Asset Sale. In February, the Company completed the sale of select tower assets for $17 million. Amendment to Receivables Purchase Agreement. In January, the Company entered into an amendment to its Receivables Purchase Agreement that reduces the minimum liquidity the Company is required to maintain to $25 million and aligns the Company’s obligations to deliver audited annual financial statements under the Receivables Purchase Agreement to its obligations to deliver such financial statements under its Credit Agreement. Earnings Conference Call and Company Information Audacy will hold a conference call and simultaneous webcast regarding the quarterly earnings release on Wednesday, March 15, 2023, 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. Fourth Quarter 2022 Earnings Call. Participants may also listen to a live webcast of the call by visiting https://viavid.webcasts.com/starthere.jsp?ei=1585970&tp_key=af70e5a4ce. 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: 13734676. A webcast replay of the conference will be available shortly after the call at the above link. Additional information is available 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 Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 STATEMENTS OF OPERATIONS Net Revenues $ 341,961 $ 344,732 $ 1,253,664 $ 1,219,404 Station Expenses 283,250 256,922 1,027,197 972,792 Station Expenses - Non-Cash Compensation 301 1,127 3,290 4,181 Corporate Expenses 22,527 19,914 91,345 84,658 Corporate Expenses - Non-Cash Compensation 1,083 2,027 5,039 8,753 Depreciation And Amortization 18,331 13,548 65,786 52,238 Other expenses 214 426 688 992 Impairment Loss 468 843 180,543 2,214 Restructuring Charges 3,890 1,452 10,008 5,671 Net Gain On Sale Or Disposal (34,509) (4,632) (47,737) (8,363) Change In Fair Value of Contingent Consideration - (8,802) Refinancing Expenses - 372 - 845 Total Operating Expenses 295,555 291,999 1,327,357 1,123,981 Operating Income (Loss) 46,406 52,733 (73,693) 95,423 Net Interest Expense 31,378 25,027 107,491 91,511 Net (Gain) Loss on Early Extinguishment of Debt - - - 8,168 Other (Income) Expense - - (238) (446) Income (Loss) Before Income Taxes 15,028 27,706 (180,946) (3,810) Income Taxes (Benefit) 2,878 6,296 (40,275) (238) Net Income (Loss) $ 12,150 $ 21,410 $ (140,671) $ (3,572) Net Income (Loss) Per Share - Basic $ 0.09 $ 0.16 $ (1.01) $ (0.03) Net Income (Loss) Per Share - Diluted $ 0.09 $ 0.16 $ (1.01) $ (0.03) Dividends Declared And Paid Per Common Share $ 0.00 $ 0.00 $ 0.00 $ 0.00 Weighted Common Shares Outstanding - Basic 138,888 136,110 138,654 135,981 Weighted Common Shares Outstanding - Diluted 138,901 138,006 138,654 135,981 SUPPLEMENTAL BREAKDOWN OF REVENUE BY TYPE Spot (local and national) 213,643 222,127 798,006 799,687 Digital (including podcasting) 69,111 68,079 259,135 237,824 Network 23,305 22,463 89,897 84,089 Sponsorships and Events 24,350 20,297 60,074 52,319 Other 11,552 11,766 46,552 45,485 $ 341,961 $ 344,732 $ 1,253,664 $ 1,219,404 Political $ 13,148 $ 3,700 $ 25,336 $ 9,652 Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 SUPPLEMENTAL BREAKDOWN OF REVENUE BY FORMAT Music 170,623 179,239 626,461 634,941 Sports 73,813 71,158 264,306 251,021 News/Talk 51,126 52,814 199,743 195,169 Non-format specific 46,399 41,521 163,155 138,273 $ 341,961 $ 344,732 $ 1,253,664 $ 1,219,404 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Net Capital Expenditures $ 8,280 $ 37,340 $ 80,821 $ 76,607 Adjusted Income Taxes Paid (Refunded) $ 225 $ 4 $ (14,554) $ (300) SELECTED BALANCE SHEET DATA December 31, December 31, 2022 2021 Cash and Cash Equivalents $ 103,344 $ 59,439 Senior Debt - Term B-2 Loan (Includes Current Portion) $ 632,415 $ 632,415 Senior Debt - Revolver (Includes Current Portion) $ 180,000 $ 97,727 Senior Secured Notes - 2027 $ 460,000 $ 470,000 Senior Secured Notes - 2029 $ 540,000 $ 540,000 Total Shareholders' Equity $ 520,619 $ 652,205 OTHER FINANCIAL DATA Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 Reconciliation Of GAAP Net Income (Loss) To Adjusted EBITDA and To Adjusted Free Cash Flow Net Income (Loss) $ 12,150 $ 21,410 $ (140,671) $ (3,572) Income Taxes (Benefit) 2,878 6,296 (40,275) (238) Net Interest Expense 31,378 25,027 107,491 91,511 Corporate Expenses - Non-Cash Compensation 1,083 2,027 5,039 8,753 Station Expenses - Non-Cash Compensation 301 1,127 3,290 4,181 Depreciation And Amortization 18,331 13,548 65,786 52,238 Other Expenses 214 426 836 992 Restructuring Charges 3,890 1,452 10,008 5,671 COVID-19 Related Expenses (Income) 104 (2,164) 584 (2,796) Non-Recurring Expenses Otherwise Included in Corporate Expenses 40 64 1,257 5,392 Liability Management Expenses 774 - 774 - Impairment Loss 468 843 180,543 2,214 Contingent Consideration Accretion and Remeasurements - 433 (8,802) 1,117 Refinancing Expenses - 372 - 845 Net (Gain) Loss On Early Extinguishment Of Debt - - - 8,168 Other (Income) Expense - - (238) (446) Net (Gain) Loss On Sale Or Disposal of Assets (34,509) (4,632) (47,737) (8,363) Adjusted EBITDA 37,102 66,229 137,885 165,667 Net Interest Expense (31,378) (25,027) (107,491) (91,511) Deferred Financing Costs Included In Interest Expense 1,284 2,033 5,116 5,613 Amortization Debt Premium Included In Interest Expense (256) (251) (1,024) (1,582) Net Capital Expenditures (8,280) (37,340) (80,821) (76,607) Adjusted Income Taxes (Paid) Refunded (225) (4) 14,554 300 Adjusted Free Cash Flow $ (1,753) $ 5,640 $ (31,781) $ 1,880 View source version on businesswire.com: https://www.businesswire.com/news/home/20230314006045/en/Contacts Investor Contacts: Joseph Jaffoni, Jennifer Neuman, Norberto Aja JCIR (212) 835-2500 AUD@jcir.com Audacy Contact: Ashok Sinha SVP and Head of Communications (610) 822-0832 Ashok.Sinha@audacy.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Audacy Reports Fourth Quarter and Full Year Results By: Audacy, Inc. via Business Wire March 15, 2023 at 08:00 AM EDT Audacy, Inc. (NYSE: AUD) today reported financial results for the quarter and year ended December 31, 2022. Fourth Quarter Summary Net revenues for the quarter were $342.0 million, down 0.8% compared to $344.7 million in the fourth quarter of 2021. Excluding political revenue, revenues for the quarter were down 4% Digital revenues were $69.1 million, up 2% compared to the fourth quarter of 2021 Total operating expenses for the quarter were $295.6 million, which includes a gain on sale of $34.5 million, compared to $292.0 million in the fourth quarter of 2021, which included a gain on sale of $4.6 million Cash operating expenses were up 9% compared to the fourth quarter of 2021 Operating income for the quarter was $46.4 million, compared to operating income of $52.7 million in the fourth quarter of 2021 Adjusted EBITDA for the quarter was $37.1 million, compared to $66.2 million in the fourth quarter of 2021 As of December 31, 2022, the Company’s liquidity was $144.8 million, up from $115.4 at September 30, 2022 Full Year Summary Net revenues for the year were $1.25 billion, up 3% compared to $1.22 billion in 2021. Excluding political revenue, revenues for the year were up 2% Digital revenues were $259.1 million, up 9% compared to 2021 Total operating expenses for the year were $1.33 billion, which includes a non-cash impairment charge of $180.5 million and a gain on sale of $47.7 million, compared to $1.12 billion in 2021, which included a gain on sale of $8.4 million Cash operating expenses were up 6% compared to 2021 Operating loss for the year was $73.7 million, compared to operating income of $95.4 million in 2021 Adjusted EBITDA for the year was $137.9 million, compared to $165.7 million in 2021 David J. Field, Chairman, President and Chief Executive Officer, stated: “Having started 2022 on a great note with revenues up 14% in the first quarter, we ended the year with revenues down 0.8% in the fourth quarter as challenging ad market conditions persisted. For the full year, revenues were up 3%. Fourth quarter expenses grew 9% due to accelerated recognition of podcast expenses, but we anticipate that expenses will be up low single digits in the first quarter and fall below 2022 levels beginning in the second quarter. We continue to vigorously execute our plan to navigate the storm and to position the company for recovery when business conditions improve. Our liquidity improved from $115 million at the end of September to $145 million at year end. With the sale earlier this month of $17 million of towers, we have now completed $73 million in non-strategic asset sales to bolster our liquidity and to support our continued compliance with our financial covenants. We are making solid progress on our key growth drivers including our reinvented streaming audio platform, our national enterprise business development, our podcasting and digital marketing solutions businesses, and our promising ad tech and ad product roadmap. Looking beyond the challenging current macro environment, Audacy has a strong and differentiated, scaled, competitive position in the dynamic and growing audio space and is deeply focused on continuing the work to capitalize on the opportunities and drive a healthy recovery.” Recent Company Developments Non-strategic Asset Sale. In February, the Company completed the sale of select tower assets for $17 million. Amendment to Receivables Purchase Agreement. In January, the Company entered into an amendment to its Receivables Purchase Agreement that reduces the minimum liquidity the Company is required to maintain to $25 million and aligns the Company’s obligations to deliver audited annual financial statements under the Receivables Purchase Agreement to its obligations to deliver such financial statements under its Credit Agreement. Earnings Conference Call and Company Information Audacy will hold a conference call and simultaneous webcast regarding the quarterly earnings release on Wednesday, March 15, 2023, 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. Fourth Quarter 2022 Earnings Call. Participants may also listen to a live webcast of the call by visiting https://viavid.webcasts.com/starthere.jsp?ei=1585970&tp_key=af70e5a4ce. 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: 13734676. A webcast replay of the conference will be available shortly after the call at the above link. Additional information is available 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 Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 STATEMENTS OF OPERATIONS Net Revenues $ 341,961 $ 344,732 $ 1,253,664 $ 1,219,404 Station Expenses 283,250 256,922 1,027,197 972,792 Station Expenses - Non-Cash Compensation 301 1,127 3,290 4,181 Corporate Expenses 22,527 19,914 91,345 84,658 Corporate Expenses - Non-Cash Compensation 1,083 2,027 5,039 8,753 Depreciation And Amortization 18,331 13,548 65,786 52,238 Other expenses 214 426 688 992 Impairment Loss 468 843 180,543 2,214 Restructuring Charges 3,890 1,452 10,008 5,671 Net Gain On Sale Or Disposal (34,509) (4,632) (47,737) (8,363) Change In Fair Value of Contingent Consideration - (8,802) Refinancing Expenses - 372 - 845 Total Operating Expenses 295,555 291,999 1,327,357 1,123,981 Operating Income (Loss) 46,406 52,733 (73,693) 95,423 Net Interest Expense 31,378 25,027 107,491 91,511 Net (Gain) Loss on Early Extinguishment of Debt - - - 8,168 Other (Income) Expense - - (238) (446) Income (Loss) Before Income Taxes 15,028 27,706 (180,946) (3,810) Income Taxes (Benefit) 2,878 6,296 (40,275) (238) Net Income (Loss) $ 12,150 $ 21,410 $ (140,671) $ (3,572) Net Income (Loss) Per Share - Basic $ 0.09 $ 0.16 $ (1.01) $ (0.03) Net Income (Loss) Per Share - Diluted $ 0.09 $ 0.16 $ (1.01) $ (0.03) Dividends Declared And Paid Per Common Share $ 0.00 $ 0.00 $ 0.00 $ 0.00 Weighted Common Shares Outstanding - Basic 138,888 136,110 138,654 135,981 Weighted Common Shares Outstanding - Diluted 138,901 138,006 138,654 135,981 SUPPLEMENTAL BREAKDOWN OF REVENUE BY TYPE Spot (local and national) 213,643 222,127 798,006 799,687 Digital (including podcasting) 69,111 68,079 259,135 237,824 Network 23,305 22,463 89,897 84,089 Sponsorships and Events 24,350 20,297 60,074 52,319 Other 11,552 11,766 46,552 45,485 $ 341,961 $ 344,732 $ 1,253,664 $ 1,219,404 Political $ 13,148 $ 3,700 $ 25,336 $ 9,652 Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 SUPPLEMENTAL BREAKDOWN OF REVENUE BY FORMAT Music 170,623 179,239 626,461 634,941 Sports 73,813 71,158 264,306 251,021 News/Talk 51,126 52,814 199,743 195,169 Non-format specific 46,399 41,521 163,155 138,273 $ 341,961 $ 344,732 $ 1,253,664 $ 1,219,404 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Net Capital Expenditures $ 8,280 $ 37,340 $ 80,821 $ 76,607 Adjusted Income Taxes Paid (Refunded) $ 225 $ 4 $ (14,554) $ (300) SELECTED BALANCE SHEET DATA December 31, December 31, 2022 2021 Cash and Cash Equivalents $ 103,344 $ 59,439 Senior Debt - Term B-2 Loan (Includes Current Portion) $ 632,415 $ 632,415 Senior Debt - Revolver (Includes Current Portion) $ 180,000 $ 97,727 Senior Secured Notes - 2027 $ 460,000 $ 470,000 Senior Secured Notes - 2029 $ 540,000 $ 540,000 Total Shareholders' Equity $ 520,619 $ 652,205 OTHER FINANCIAL DATA Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 Reconciliation Of GAAP Net Income (Loss) To Adjusted EBITDA and To Adjusted Free Cash Flow Net Income (Loss) $ 12,150 $ 21,410 $ (140,671) $ (3,572) Income Taxes (Benefit) 2,878 6,296 (40,275) (238) Net Interest Expense 31,378 25,027 107,491 91,511 Corporate Expenses - Non-Cash Compensation 1,083 2,027 5,039 8,753 Station Expenses - Non-Cash Compensation 301 1,127 3,290 4,181 Depreciation And Amortization 18,331 13,548 65,786 52,238 Other Expenses 214 426 836 992 Restructuring Charges 3,890 1,452 10,008 5,671 COVID-19 Related Expenses (Income) 104 (2,164) 584 (2,796) Non-Recurring Expenses Otherwise Included in Corporate Expenses 40 64 1,257 5,392 Liability Management Expenses 774 - 774 - Impairment Loss 468 843 180,543 2,214 Contingent Consideration Accretion and Remeasurements - 433 (8,802) 1,117 Refinancing Expenses - 372 - 845 Net (Gain) Loss On Early Extinguishment Of Debt - - - 8,168 Other (Income) Expense - - (238) (446) Net (Gain) Loss On Sale Or Disposal of Assets (34,509) (4,632) (47,737) (8,363) Adjusted EBITDA 37,102 66,229 137,885 165,667 Net Interest Expense (31,378) (25,027) (107,491) (91,511) Deferred Financing Costs Included In Interest Expense 1,284 2,033 5,116 5,613 Amortization Debt Premium Included In Interest Expense (256) (251) (1,024) (1,582) Net Capital Expenditures (8,280) (37,340) (80,821) (76,607) Adjusted Income Taxes (Paid) Refunded (225) (4) 14,554 300 Adjusted Free Cash Flow $ (1,753) $ 5,640 $ (31,781) $ 1,880 View source version on businesswire.com: https://www.businesswire.com/news/home/20230314006045/en/Contacts Investor Contacts: Joseph Jaffoni, Jennifer Neuman, Norberto Aja JCIR (212) 835-2500 AUD@jcir.com Audacy Contact: Ashok Sinha SVP and Head of Communications (610) 822-0832 Ashok.Sinha@audacy.com
Audacy, Inc. (NYSE: AUD) today reported financial results for the quarter and year ended December 31, 2022. Fourth Quarter Summary Net revenues for the quarter were $342.0 million, down 0.8% compared to $344.7 million in the fourth quarter of 2021. Excluding political revenue, revenues for the quarter were down 4% Digital revenues were $69.1 million, up 2% compared to the fourth quarter of 2021 Total operating expenses for the quarter were $295.6 million, which includes a gain on sale of $34.5 million, compared to $292.0 million in the fourth quarter of 2021, which included a gain on sale of $4.6 million Cash operating expenses were up 9% compared to the fourth quarter of 2021 Operating income for the quarter was $46.4 million, compared to operating income of $52.7 million in the fourth quarter of 2021 Adjusted EBITDA for the quarter was $37.1 million, compared to $66.2 million in the fourth quarter of 2021 As of December 31, 2022, the Company’s liquidity was $144.8 million, up from $115.4 at September 30, 2022 Full Year Summary Net revenues for the year were $1.25 billion, up 3% compared to $1.22 billion in 2021. Excluding political revenue, revenues for the year were up 2% Digital revenues were $259.1 million, up 9% compared to 2021 Total operating expenses for the year were $1.33 billion, which includes a non-cash impairment charge of $180.5 million and a gain on sale of $47.7 million, compared to $1.12 billion in 2021, which included a gain on sale of $8.4 million Cash operating expenses were up 6% compared to 2021 Operating loss for the year was $73.7 million, compared to operating income of $95.4 million in 2021 Adjusted EBITDA for the year was $137.9 million, compared to $165.7 million in 2021 David J. Field, Chairman, President and Chief Executive Officer, stated: “Having started 2022 on a great note with revenues up 14% in the first quarter, we ended the year with revenues down 0.8% in the fourth quarter as challenging ad market conditions persisted. For the full year, revenues were up 3%. Fourth quarter expenses grew 9% due to accelerated recognition of podcast expenses, but we anticipate that expenses will be up low single digits in the first quarter and fall below 2022 levels beginning in the second quarter. We continue to vigorously execute our plan to navigate the storm and to position the company for recovery when business conditions improve. Our liquidity improved from $115 million at the end of September to $145 million at year end. With the sale earlier this month of $17 million of towers, we have now completed $73 million in non-strategic asset sales to bolster our liquidity and to support our continued compliance with our financial covenants. We are making solid progress on our key growth drivers including our reinvented streaming audio platform, our national enterprise business development, our podcasting and digital marketing solutions businesses, and our promising ad tech and ad product roadmap. Looking beyond the challenging current macro environment, Audacy has a strong and differentiated, scaled, competitive position in the dynamic and growing audio space and is deeply focused on continuing the work to capitalize on the opportunities and drive a healthy recovery.” Recent Company Developments Non-strategic Asset Sale. In February, the Company completed the sale of select tower assets for $17 million. Amendment to Receivables Purchase Agreement. In January, the Company entered into an amendment to its Receivables Purchase Agreement that reduces the minimum liquidity the Company is required to maintain to $25 million and aligns the Company’s obligations to deliver audited annual financial statements under the Receivables Purchase Agreement to its obligations to deliver such financial statements under its Credit Agreement. Earnings Conference Call and Company Information Audacy will hold a conference call and simultaneous webcast regarding the quarterly earnings release on Wednesday, March 15, 2023, 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. Fourth Quarter 2022 Earnings Call. Participants may also listen to a live webcast of the call by visiting https://viavid.webcasts.com/starthere.jsp?ei=1585970&tp_key=af70e5a4ce. 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: 13734676. A webcast replay of the conference will be available shortly after the call at the above link. Additional information is available 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 Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 STATEMENTS OF OPERATIONS Net Revenues $ 341,961 $ 344,732 $ 1,253,664 $ 1,219,404 Station Expenses 283,250 256,922 1,027,197 972,792 Station Expenses - Non-Cash Compensation 301 1,127 3,290 4,181 Corporate Expenses 22,527 19,914 91,345 84,658 Corporate Expenses - Non-Cash Compensation 1,083 2,027 5,039 8,753 Depreciation And Amortization 18,331 13,548 65,786 52,238 Other expenses 214 426 688 992 Impairment Loss 468 843 180,543 2,214 Restructuring Charges 3,890 1,452 10,008 5,671 Net Gain On Sale Or Disposal (34,509) (4,632) (47,737) (8,363) Change In Fair Value of Contingent Consideration - (8,802) Refinancing Expenses - 372 - 845 Total Operating Expenses 295,555 291,999 1,327,357 1,123,981 Operating Income (Loss) 46,406 52,733 (73,693) 95,423 Net Interest Expense 31,378 25,027 107,491 91,511 Net (Gain) Loss on Early Extinguishment of Debt - - - 8,168 Other (Income) Expense - - (238) (446) Income (Loss) Before Income Taxes 15,028 27,706 (180,946) (3,810) Income Taxes (Benefit) 2,878 6,296 (40,275) (238) Net Income (Loss) $ 12,150 $ 21,410 $ (140,671) $ (3,572) Net Income (Loss) Per Share - Basic $ 0.09 $ 0.16 $ (1.01) $ (0.03) Net Income (Loss) Per Share - Diluted $ 0.09 $ 0.16 $ (1.01) $ (0.03) Dividends Declared And Paid Per Common Share $ 0.00 $ 0.00 $ 0.00 $ 0.00 Weighted Common Shares Outstanding - Basic 138,888 136,110 138,654 135,981 Weighted Common Shares Outstanding - Diluted 138,901 138,006 138,654 135,981 SUPPLEMENTAL BREAKDOWN OF REVENUE BY TYPE Spot (local and national) 213,643 222,127 798,006 799,687 Digital (including podcasting) 69,111 68,079 259,135 237,824 Network 23,305 22,463 89,897 84,089 Sponsorships and Events 24,350 20,297 60,074 52,319 Other 11,552 11,766 46,552 45,485 $ 341,961 $ 344,732 $ 1,253,664 $ 1,219,404 Political $ 13,148 $ 3,700 $ 25,336 $ 9,652 Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 SUPPLEMENTAL BREAKDOWN OF REVENUE BY FORMAT Music 170,623 179,239 626,461 634,941 Sports 73,813 71,158 264,306 251,021 News/Talk 51,126 52,814 199,743 195,169 Non-format specific 46,399 41,521 163,155 138,273 $ 341,961 $ 344,732 $ 1,253,664 $ 1,219,404 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Net Capital Expenditures $ 8,280 $ 37,340 $ 80,821 $ 76,607 Adjusted Income Taxes Paid (Refunded) $ 225 $ 4 $ (14,554) $ (300) SELECTED BALANCE SHEET DATA December 31, December 31, 2022 2021 Cash and Cash Equivalents $ 103,344 $ 59,439 Senior Debt - Term B-2 Loan (Includes Current Portion) $ 632,415 $ 632,415 Senior Debt - Revolver (Includes Current Portion) $ 180,000 $ 97,727 Senior Secured Notes - 2027 $ 460,000 $ 470,000 Senior Secured Notes - 2029 $ 540,000 $ 540,000 Total Shareholders' Equity $ 520,619 $ 652,205 OTHER FINANCIAL DATA Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 Reconciliation Of GAAP Net Income (Loss) To Adjusted EBITDA and To Adjusted Free Cash Flow Net Income (Loss) $ 12,150 $ 21,410 $ (140,671) $ (3,572) Income Taxes (Benefit) 2,878 6,296 (40,275) (238) Net Interest Expense 31,378 25,027 107,491 91,511 Corporate Expenses - Non-Cash Compensation 1,083 2,027 5,039 8,753 Station Expenses - Non-Cash Compensation 301 1,127 3,290 4,181 Depreciation And Amortization 18,331 13,548 65,786 52,238 Other Expenses 214 426 836 992 Restructuring Charges 3,890 1,452 10,008 5,671 COVID-19 Related Expenses (Income) 104 (2,164) 584 (2,796) Non-Recurring Expenses Otherwise Included in Corporate Expenses 40 64 1,257 5,392 Liability Management Expenses 774 - 774 - Impairment Loss 468 843 180,543 2,214 Contingent Consideration Accretion and Remeasurements - 433 (8,802) 1,117 Refinancing Expenses - 372 - 845 Net (Gain) Loss On Early Extinguishment Of Debt - - - 8,168 Other (Income) Expense - - (238) (446) Net (Gain) Loss On Sale Or Disposal of Assets (34,509) (4,632) (47,737) (8,363) Adjusted EBITDA 37,102 66,229 137,885 165,667 Net Interest Expense (31,378) (25,027) (107,491) (91,511) Deferred Financing Costs Included In Interest Expense 1,284 2,033 5,116 5,613 Amortization Debt Premium Included In Interest Expense (256) (251) (1,024) (1,582) Net Capital Expenditures (8,280) (37,340) (80,821) (76,607) Adjusted Income Taxes (Paid) Refunded (225) (4) 14,554 300 Adjusted Free Cash Flow $ (1,753) $ 5,640 $ (31,781) $ 1,880 View source version on businesswire.com: https://www.businesswire.com/news/home/20230314006045/en/
Investor Contacts: Joseph Jaffoni, Jennifer Neuman, Norberto Aja JCIR (212) 835-2500 AUD@jcir.com Audacy Contact: Ashok Sinha SVP and Head of Communications (610) 822-0832 Ashok.Sinha@audacy.com