Townsquare Media Revenues Increase In Q4 2014
March 16, 2015 at 3:32 PM (PT)
TOWNSQUARE MEDIA, INC. fourth-quarter 2014 net revenue increased 23.7% to $93.7 million (pro forma up 9.5%), with local revenue up 5.6% to $80.3 million, live events up 70.4% to $5.4 million, and "other media and entertainment revenue" up 42% to $8 million.
Adjusted EBITDA increased 25.9% to $24.0 million (pro forma excluding duplicative and non-recurring corporate expenses up 8.6% to $24.2 million).
Chairman/CEO STEVEN PRICE said, "Consistent with our JANUARY pre-announcement, we are pleased to report fourth-quarter pro forma net revenue growth of 9.5% and pro forma Adjusted EBITDA growth of 8.6%, with strong growth in each of our operating segments. Further, we are pleased to announce that we have broken out our Live Events business as a separate reportable operating segment and believe this will provide increased transparency to our investors. Nearly 30% of our 2014 pro forma net revenue was derived from sources other than the sale of terrestrial radio advertising."
On the company's conference call as transcribed by SEEKINGALPHA.COM, EVP/CFO STUART ROSENSTEIN said that TOWNSQUARE expects first quarter 2015 pro forma net revenue to grow in the low single digits (mid single digit excluding the impact of political revenue and nonrecurring festivals; he said political revenues will decrease in the non-election year and that the company has decided not to repeat two multi-day music festivals this year, which delivered $2.7 million in first quarter last year). Bad weather in several markets were also cited as affecting revenues. He projected full year 2015 pro forma net revenu to grow in the mid to high single digits and pro forma adjusted EBITDA to grow in the low single digits, excluding political.
As for possible acquisitions, PRICE said that the company hasn't "seen things that are so attractive material acquisitions. We’re looking at a lot.... Price expectations these days are quite high." He said that the company "would like to make acquisitions on the broadcast side. We just haven’t found somebody that meets the three criteria that we’re looking for, which are small-to-midsized, right kind of markets for us, dominant clusters at the right price.... we will be aggressive if we can find things that meet those three criteria and less so if they don’t meet all of those criteria." PRICE added that TOWNSQUARE has not seen PANDORA come into his company's sized markets as sellers, and that his stations are seeing ratings, cume and TSL remaining flat and unaffected by digital, while the company's digital business "has been growing quite nicely."