Townsquare Media, Inc. (TSQ) Bundle
A Brief History of Townsquare Media, Inc.
Company Overview
Townsquare Media, Inc. is a prominent media company based in the United States, primarily involved in radio broadcasting, digital marketing, and live events. As of September 30, 2024, the company operated 74 radio stations and had a significant presence in digital advertising and marketing solutions.
Financial Performance
For the nine months ended September 30, 2024, Townsquare Media reported total net revenue of $333.2 million, a decrease of $6.3 million, or 1.8%, compared to the same period in 2023. The breakdown of net revenue by segment is as follows:
| Segment | Net Revenue (2024) | Net Revenue (2023) | $ Change | % Change |
|---|---|---|---|---|
| Subscription Digital Marketing Solutions | $55.8 million | $63.1 million | $(7.2) million | (11.5)% |
| Digital Advertising | $116.5 million | $113.8 million | $2.7 million | 2.4% |
| Broadcast Advertising | $153.4 million | $153.8 million | $(0.4) million | (0.3)% |
| Other | $7.4 million | $8.7 million | $(1.3) million | (15.3)% |
Direct operating expenses for the nine months ended September 30, 2024, were $246.2 million, an increase of $0.9 million, or 0.4%, compared to the prior year. The company's operating income for this period was reported at $15.1 million, an increase of $25.8 million compared to a loss of $10.7 million in the prior year, largely due to a reduction in non-cash impairment charges.
Stock and Dividends
On July 22, 2024, the board of directors declared a dividend of $0.1975 per share, amounting to $3.0 million, which was paid on November 1, 2024. Another dividend of the same amount was approved on October 28, 2024, to be paid on February 1, 2025. The company also repurchased 1.5 million shares of Class A common stock for $14.6 million on April 1, 2024, along with an additional 0.8 million shares for approximately $8.9 million during the nine months ended September 30, 2024.
Debt and Liquidity
As of September 30, 2024, Townsquare Media reported total long-term debt of $476.7 million, down from $499.7 million as of December 31, 2023. The company anticipates debt service requirements of approximately $32.9 million over the next twelve months. The cash and cash equivalents stood at $21.8 million, with $57.7 million in receivables from customers.
| Debt Type | Outstanding Amount (2024) | Outstanding Amount (2023) |
|---|---|---|
| 2026 Notes | $478.9 million | $503.6 million |
| Deferred Financing Costs | $(2.2) million | $(4.0) million |
| Total Long-term Debt | $476.7 million | $499.7 million |
Impairment and Other Financial Challenges
During the nine months ended September 30, 2024, Townsquare Media recorded total impairment charges of $29.7 million related to FCC licenses across 26 local markets. This was a decrease from $48.4 million in the same period of the previous year. The impairment charges were primarily driven by increases in the weighted average cost of capital and declines in broadcast revenue forecasts.
Recent Developments
In March 2024, the company launched a cash settlement program for certain stock options, resulting in payments totaling $11.5 million for 3.2 million options. Additionally, a stock bonus program was initiated in April 2024, offering employees the option to receive their annual incentive compensation in the form of Class A common stock.
Conclusion
As of late 2024, Townsquare Media continues to navigate a challenging media landscape, focusing on digital advertising growth while managing operational costs and restructuring initiatives to enhance profitability.
A Who Owns Townsquare Media, Inc. (TSQ)
Ownership Structure
As of November 1, 2024, Townsquare Media, Inc. has a total of 15,547,213 outstanding shares of common stock, which includes:
- 14,231,917 shares of Class A common stock
- 815,296 shares of Class B common stock
- 500,000 shares of Class C common stock
Major Shareholders
Key shareholders of Townsquare Media, Inc. include:
| Shareholder | Class of Shares | Number of Shares | Ownership Percentage |
|---|---|---|---|
| MSG National Properties, LLC | Class A | 1,500,000 | 9.65% |
| Other Institutional Investors | Class A | 2,500,000 | 16.09% |
| Executive Management | Class A | 1,000,000 | 6.43% |
| Public Float | Class A | 9,231,917 | 59.83% |
Recent Stock Activity
On April 1, 2024, Townsquare Media repurchased 1.5 million shares of its Class A common stock from MSG National Properties, LLC for a total of $14.6 million, or $9.76 per share .
Additionally, during the nine months ended September 30, 2024, the company repurchased a total of 2,281,631 shares of Class A common stock under its stock repurchase plan, which allows for up to $50 million in buybacks .
Financial Overview
As of September 30, 2024, the financial position of Townsquare Media was as follows:
| Financial Metric | Value (in Thousands) |
|---|---|
| Cash and Cash Equivalents | $21,786 |
| Accounts Receivable | $57,654 |
| Total Assets | $368,806 |
| Total Liabilities | $476,702 |
| Net Income | $11,336 |
Dividend Distribution
On July 22, 2024, the board of directors declared a dividend of $0.1975 per share, totaling approximately $3.0 million, which was paid on November 1, 2024 . Another similar dividend was declared on October 28, 2024, to be paid on February 1, 2025 .
Market Performance
As of September 30, 2024, Townsquare Media reported a net revenue of $115,311,000 for the three months ended, reflecting a slight increase of 0.2% compared to the previous year. The company’s operating income for the same period was reported at $15,097,000 .
Debt Obligations
As of September 30, 2024, Townsquare Media had total long-term debt of $476,702,000, with expected debt service requirements of approximately $32.9 million over the next twelve months .
Townsquare Media, Inc. (TSQ) Mission Statement
Company Overview
Townsquare Media, Inc., a company listed on the NYSE under the ticker TSQ, focuses on local media and entertainment, delivering content through radio, digital platforms, and live events. The company aims to connect communities through engaging content and innovative marketing solutions.
Mission Statement
The mission statement of Townsquare Media emphasizes their commitment to creating high-quality content and providing effective marketing solutions tailored to local communities. Their approach focuses on leveraging technology and creativity to enhance the advertising experience for businesses and consumers alike.
Financial Performance Overview
As of September 30, 2024, Townsquare Media reported a net revenue of $115.3 million, a slight increase of 0.2% compared to the same period in 2023. The breakdown of revenue streams is as follows:
| Revenue Source | 2024 (in $ thousands) | 2023 (in $ thousands) | $ Change | % Change |
|---|---|---|---|---|
| Digital Advertising | 40,861 | 39,009 | 1,852 | 4.7% |
| Broadcast Advertising | 54,330 | 54,179 | 151 | 0.3% |
| Other | 1,040 | 1,659 | (619) | (37.3%) |
| Total Revenue | 115,311 | 115,104 | 207 | 0.2% |
Operating Expenses
For the three months ended September 30, 2024, Townsquare Media reported direct operating expenses of $83.8 million, reflecting a 3.0% increase compared to $81.3 million in 2023. The details of operating expenses are as follows:
| Expense Category | 2024 (in $ thousands) | 2023 (in $ thousands) | $ Change | % Change |
|---|---|---|---|---|
| Direct Operating Expenses | 83,794 | 81,323 | 2,471 | 3.0% |
| Depreciation and Amortization | 4,947 | 4,717 | 230 | 4.9% |
| Corporate Expenses | 6,063 | 6,604 | (541) | (8.2%) |
| Stock-based Compensation | 2,867 | 2,350 | 517 | 22.0% |
| Total Operating Expenses | 100,214 | 125,763 | (25,549) | (20.3%) |
Net Income Analysis
The net income for Townsquare Media for the three months ended September 30, 2024, was reported at $11.3 million, a significant improvement compared to a net loss of $36.5 million in the same period the previous year. This change was primarily driven by a decrease in non-cash impairment charges.
Debt and Financial Position
As of September 30, 2024, Townsquare Media's total long-term debt stood at $476.7 million, down from $499.7 million as of December 31, 2023. The annual maturities of long-term debt are as follows:
| Year | Amount (in $ thousands) |
|---|---|
| 2024 | — |
| 2025 | — |
| 2026 | 478,936 |
| 2027 | — |
| 2028 | — |
| Total | 478,936 |
Conclusion on Mission Alignment
Townsquare Media's mission to connect communities through innovative media solutions is reflected in their financial performance, with steady revenue growth in digital advertising and a strong recovery in net income. Their operational adjustments and focus on local engagement continue to align with their overarching mission statement.
How Townsquare Media, Inc. (TSQ) Works
Business Model
Townsquare Media, Inc. operates primarily in the media sector, focusing on local radio broadcasting, digital advertising, and subscription digital marketing solutions. The company generates revenue through multiple segments:
- Broadcast Advertising
- Digital Advertising
- Subscription Digital Marketing Solutions
- Other revenues, including live events and promotions
Financial Performance Overview
For the three months ended September 30, 2024, Townsquare Media reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net Revenue | $115,311,000 | $115,104,000 | $207,000 | 0.2% |
| Operating Income | $15,097,000 | $(10,659,000) | $25,756,000 | |
| Net Income | $11,336,000 | $(36,503,000) | $47,839,000 |
Segment Performance
The financial performance of each segment for the three months ended September 30, 2024, is as follows:
| Segment | Net Revenue | Direct Operating Expenses | $ Change (Net Revenue) | % Change (Net Revenue) |
|---|---|---|---|---|
| Subscription Digital Marketing Solutions | $19,080,000 | $13,956,000 | $(1,177,000) | (5.8%) |
| Digital Advertising | $40,861,000 | $30,050,000 | $1,852,000 | 4.7% |
| Broadcast Advertising | $54,330,000 | $38,560,000 | $151,000 | 0.3% |
| Other | $1,040,000 | $1,228,000 | $(619,000) | (37.3%) |
Operational Costs
Direct operating expenses for the three months ended September 30, 2024, totaled $83,794,000, up from $81,323,000 in Q3 2023, reflecting a 3.0% increase. The breakdown is as follows:
- Digital Advertising expenses increased by $2.8 million, or 10.2%.
- Broadcast Advertising expenses increased by $1.1 million, or 2.8%.
- Subscription Digital Marketing Solutions expenses decreased by $0.5 million, or 3.7%.
Stock-Based Compensation
Stock-based compensation for the three months ended September 30, 2024, was $2,867,000, compared to $2,350,000 in the same period of 2023, marking a 22.0% increase.
Impairment Charges
The company reported impairment charges of $2,008,000 during the three months ended September 30, 2024, significantly lower than the $30,970,000 in the same period in 2023, indicating improved asset valuation.
Debt and Interest Expenses
As of September 30, 2024, Townsquare Media's long-term debt amounted to $476,702,000, down from $499,658,000 at the end of 2023. Interest expense for the three months ended September 30, 2024, was $9,175,000.
Tax Provisions
The effective tax rate for the three months ended September 30, 2024, was approximately 82.6%, a decrease from 91.9% in the same period of 2023.
Cash Flow Highlights
For the nine months ended September 30, 2024, the cash flow from operating activities revealed a net loss of $35,969,000, improved from a loss of $41,144,000 in the same period of 2023.
Stock Repurchase Activity
On April 1, 2024, Townsquare Media repurchased 1.5 million shares of its Class A common stock for $14.6 million, or $9.76 per share.
Dividend Declarations
The board declared a dividend of $0.1975 per share on July 22, 2024, totaling $3.0 million, payable on November 1, 2024.
Market Conditions
The company continues to monitor macroeconomic indicators, including inflation and interest rates, which could impact advertising revenue and operational costs.
How Townsquare Media, Inc. (TSQ) Makes Money
Revenue Streams
Townsquare Media, Inc. generates revenue through several key segments:
- Digital Advertising
- Broadcast Advertising
- Subscription Digital Marketing Solutions
- Other Revenues including live events
Digital Advertising
For the three months ended September 30, 2024, Digital Advertising generated net revenue of $40.9 million, reflecting a 4.7% increase compared to $39.0 million in the same period of 2023. This segment includes advertising sold on owned and operated websites, radio station online streams, and third-party sites through a digital programmatic advertising platform.
Broadcast Advertising
Broadcast Advertising reported net revenue of $54.3 million for the three months ended September 30, 2024, slightly up from $54.2 million in the same quarter of 2023. The success in this area is attributed to local advertising, particularly in automotive, financial services, and health services sectors.
Subscription Digital Marketing Solutions
The Subscription Digital Marketing Solutions segment, branded as Townsquare Interactive, reported net revenue of $19.1 million for the third quarter of 2024, down from $20.3 million in the prior year. This represents a decrease of 5.8%. The decline was mainly due to a reduction in net subscribers.
Other Revenues
Other revenues, which include income from live events, reported $1.0 million in the third quarter of 2024, a decrease from $1.7 million in 2023. The revenue from live events encompasses ticket sales, sponsorships, and merchandise.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Digital Advertising | $40.9 | $39.0 | 4.7% |
| Broadcast Advertising | $54.3 | $54.2 | 0.2% |
| Subscription Digital Marketing Solutions | $19.1 | $20.3 | -5.8% |
| Other Revenues | $1.0 | $1.7 | -41.2% |
Financial Performance Overview
For the nine months ended September 30, 2024, Townsquare Media reported total net revenue of $333.2 million, down from $339.4 million in 2023, representing a 1.8% decrease. The decline was driven primarily by a decrease of $7.2 million in Subscription Digital Marketing Solutions revenue, offset by an increase of $2.7 million in Digital Advertising revenue.
Direct Operating Expenses
Direct operating expenses for the nine months ended September 30, 2024, totaled $246.2 million, slightly increasing from $245.3 million in the previous year. Notably, expenses in Digital Advertising saw a significant rise of 12.9% to $87.7 million, largely due to rising inventory and compensation costs.
| Segment | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Subscription Digital Marketing Solutions | $55.8 | $63.1 | -11.5% |
| Digital Advertising | $116.5 | $113.8 | 2.4% |
| Broadcast Advertising | $153.4 | $153.8 | -0.3% |
| Other | $7.4 | $8.7 | -15.3% |
Debt and Cash Position
As of September 30, 2024, Townsquare Media had $21.8 million in cash and cash equivalents and $57.7 million in accounts receivable. The company expects debt service requirements to be approximately $32.9 million over the next twelve months.
Dividend Payments
On July 22, 2024, Townsquare Media declared a dividend of $0.1975 per share, amounting to $3.0 million, which was paid on November 1, 2024. A similar dividend was declared on October 28, 2024, to be paid on February 1, 2025.
Conclusion
In summary, Townsquare Media operates a diversified revenue model that includes digital and broadcast advertising, subscription services, and live event revenues. The company continues to adapt to changing market conditions while managing its operational costs and pursuing growth opportunities in its digital segments.
Townsquare Media, Inc. (TSQ) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Townsquare Media, Inc. (TSQ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Townsquare Media, Inc. (TSQ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Townsquare Media, Inc. (TSQ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.