Townsquare Media (TSQ) 11 Aug 202020 Q2 Earnings call transcript

Good morning and welcome to Townsquare’s Second Quarter Conference Call.

As a reminder, today’s call is being recorded and your participation implies consent to such recording. [Operator Instructions] With that, I would like to introduce the first speaker of today’s call, Claire Yenicay, Executive Vice President.

Thank you, operator, and good morning to everyone. Thank you for joining us today for Townsquare’s second quarter financial update. call our Bill President. CFO the and our on Rosenstein, Stuart and me today Wilson, are CEO; With Executive Vice note historical call, provide this expectations, plans to that make future Please that prospects. statements the we company’s information including information, may than and statements relating other during differ under actual considered and from and provision are materially to safe risks of results Act the statements are the Reform XXXX These Private that of cause could uncertainties to forward-looking statements statements. harbor Securities Litigation these subject These are SEC. the year detailed the on company’s those and conditions statements report beliefs reflect for the are based subject uncertainties, ended current December on in that risks annual XX-K but the XX, company’s to XXXX, certain Form with including filed financial also adjusted and certain including income, operating may EBITDA certain adjusted discuss pro adjustments. make non-GAAP measures, forma and We should conjunction in reports non-GAAP used website. this Such year all contained available end quarterly, be measures and current the our information financial in on with would the time, this call to Wilson. Bill I At to over like turn

Claire to affected you, and unprecedented our I’d for as world joining call this last in. you and have who challenging go did and all country that morning. our start to prayers out and by all I time sharing living like thoughts one around us that this our are all been this thank the Thank in we

has our listeners, as and settings challenges The work to to their they what as impress our in been a the their to job, for unique each their our adaptability greater obligation passion communities. and we our and their with never our well super day and local the local continues fulfill by and communities Townsquare to as best every pandemic. dedication company presented Our responsibility due modified and to serve do clients commitment our me do our team to to our do

in Any ensure our well-being team the is remotely. are country, concern open employees to comfortable and the at be team office first and and who numerous their to offices families, and have of the and and offices safety is doing any we and safety continues the our is of implemented foremost each so precautions this. Our their across voluntarily our to it so to not XXX% member is employee’s office, option member return as returning to doing prudent working

such to seamlessly productivity, and past teams Our it. working employees our use X goal workplace Teams, are our of would they we from the transitioned to the as as with by the just the calls, office. have been market, Market months. safety home as have over virtual of believe in visual intersection our and And Microsoft conference efficiently find achieved we has

and entertained and example, regularly to have remotely, the I pandemic, and informed XXX-plus pandemic, the missed TSI the time, beat our on they momentarily. office office profit been to with revenue At majority during person in have teams a continues and studios, the content still this whom and as their working of For will work keep our Carolina air relentlessly have coming Charlotte, been all online. same Townsquare into of subscribers North our Interactive audience both and not growing throughout detail

crave consumers social to and platforms, Over seen channels, coming we specific cetera, is relevant information the surge properties: and video et communities live. they where apps, have a local our past X of their they our months, websites, that to digital as

magnified. coverage have cities previous that reduced in calls, their which As for local X Townsquare and the local in mobile apps, we fill markets, and to only over size stepped as to greatly XX been has, resulting and we have through serve void, TV highlighted the has coverage in has websites on diminished our past local our stations news earnings that years. investment XX COVID-XX the newspapers pandemic locally the

XXX% websites visiting in we news people QX, more than of are the million only prior number people unique their with the broadcast local numerous our visitors solutions per record to performing this radio local and experiencing which also and pandemic X visit, increasing for we year, are community. result, a all-time of experiencing provided visits of digital but read websites cities information the not As people more during engage month, XX record websites New April, all-time local to serve advertising outlets engagement, Portsmouth, our that et Tuscaloosa, To point, creation articles coming our will one grant [indiscernible] station our in are is over to to more specific cetera, per our Hampshire. solutions of brands obtain with Google our online great than us better of $XXX,XXX reasons which why a just Alabama, ever advertising as level

our by hours audience X.X apps We to radio In listening XX% the year-over-year, year. devices, Amazon an also hours station increased as and plus in online have voice-activated to plus total increased as well second XXX-plus our or Echo Google million listening Home. while seen or as cume the radio including total local prior by broadcast quarter, compared acceleration XX% listening

evidence are our of communities be brands informed to the linings beloved are and been of platforms. local entertained our and One where has the broadcast markets our turns audience pandemic in clear digital silver that the XX and their by many the across

detail performance level and today pandemic the hold second more have of stakeholders, on one the quarter we to the our the a earnings our starting has the financial can and had is the provided to is that was business, teams on fully last downturn impressive steps call, perspective. you, brands, brutal our you intention impact markets. our our to from mitigate that recovery our that the believe understand help to we in so taken take a that the It and our we unprecedented same despite of However, provide

from our year year. forma previously plus and very to compared XXXX, X% pro on February revenue highlighted, an off plus and a with January we As the net those note, last respectively, started months excellent strong X%, momentum continuing

with of revenue COVID-XX it up a the brought as live which X.X% basis. and event cancellations, pandemic onset our only pro advertising revenue forma growth with the plus However, QX we on strong ended evaporated significant

QX finished Interactive shared revenue earnings at on and net in down I I has X net relative its overall had QX We to revenue impact negative XX%, XX%. Townsquare plus results, As grew significant actually growth segments, most given our slightly XX.X%. was our that Advertising revenue time, reporting negative be our as will Interactive Townsquare Of in negative plus size. the our call, expected XX% that and better, QX, with

reference, in for our XXXX. For total approximately Advertising of accounted XX% net revenue

to segment Although revenue last Live the in Events less total year, our nearly the represented X% second only segment revenue in of quarter XXX% compared than in XXXX. declined

impact in closed. As the results line were our our limited let’s Therefore, business businesses Advertising the many hardest order cancellations Advertising a new month with were result, majority first. Advertising decline Americans significant the of written smaller its and orders, business. dig was under decline revenue stay-at-home than top in April, temporarily and had a into of the hit as

being to and As we plans businesses see business generated state May, reopening and and began to more county reopen less booked. began to advertising cancellations subject in

negative revenue in we XX% consumers sequential decline to narrowing from XXXX. advertising sequential revenue XX% quarter, advertising improvement in in XX% narrowing XX%, June, as to Advertising narrowing in driven as and decline advertising with the getting remained June, XX% have revenue and months cancel XX% declining XX% in campaigns our throughout improvement improvement declined online the negative June’s showed significantly negative negative in compared brunt with XX% negative June’s by week cancellations broadcast a improved to improved that XX%, year. take digital In negative the translating began declines same engaged by the negative revenue July, material to compared were less to the and in hold negative from took those June’s XX% the Broadcast negative crisis. April, throughout to digital QX. revenue May likely to April sequential across advertising declined prior in the of In negative quarter declines to to as Broadcast in to a advertisers Advertising negative heavily to date second Finally, continued June the negative in markets. in XX% broadcast in Advertising XX% declines from continued cancellations. stronger. negative XX% revenue only second QX, each QX experienced has Digital The total,

business our Advertising addition, month from an strongest year, In July the Townsquare advertised has XX months. as in defined that with advertiser not was of last the business new

will digital both August expect QX better than on expect advertising therefore, booked current July and, for our based than materially will and broadcast be advertising revenue. revenue QX better We be

ad by the most biggest expect, As resulting regions took in and you impacted the hit restrictions would the pandemic the revenues.

did New the see material declined tri-state still York by off net April over For June throughout area, XX% and revenue not in with the quarter, XX%. example, second negative improvements in

better However, pacing infection which currently revenue negative and XX restrictions XX%, negative revenue lifted, rates X and as only quickly, with earlier. XX% August rebounded were months than dropped improving to is July points

XX% opposite June experienced Michigan and New April, down been improving know negative do most are and July XX% X% XX% and negative improved wasn’t trend off pacing and in negative in and pacing in Michigan. the Arizona. negative curious Iowa in in the but like with XX% August, as to At August. least faster XX% in to the have as the New and Thankfully, than England we decline many any the spectrum, not tri-state Michigan currently area, the Florida, such restrictions, That states XX% negative England negative even local where with we the New California XX% and to declines negative faring end in in are states of continues exposure Dakotas, outbreak revenue currently in the with in similar off in improving how I investors in revenue August. July, England pacing severe current down summer in negative July April and in months. hotspots severe, July June, XX% for and negative has currently

Texas, significant new in later and lifted seeing know a a stores, major were well, presence where as small smaller and primaries on spots is markets. quarter although surge $XXX,XXX declines you Texas, contractors in and with In restrictions in earlier also in were and have their concentrated of implemented cities Currently, auto Northeast, and and footprint training. groceries entertainment quickly the do expectation From banks, nowhere and as well QX counterparts cities, furniture as education, than we the bad declined as our rebounded came month not their quarter food some as repair, on based worst our increases at second However, Northeast revenue some category hit is in in XX%, revenue as perspective, the home which state negative were fast experienced the where business but XX% versus insurance, of June in number moving hardest categories, restrictions government. what May, to education health negative the currently in negative the the bright pacing hardware revenue lifted. including during as XX% near August as was we’re midsize were dentists. outbreak. QX $XXX,XXX care, QX. experienced did largest There from to and builders, second Political in is in

to July political roared more back July QX XXXX, has revenue of we alone, revenue than we primary political due Currently, these was of earlier, all have to we generate which million approximately than In revenue political believe a mentioned XX% in booked year, also partially QX, I be that in for the dates and $X booked XXXX. pushback, Xx political will Because $X.X $XX However, would for the greater million. of year, exceed in trends, increases million as PAC we spending. XXXX’s of XXXX political still but political expect in strong QX.

as in quarter Live Events events canceled scheduled our postponed live or we nearly due revenue to XXX% net Our declined pandemic. the the second

base and radio concentrated is streamlining Fortunately, largely local markets and, Event in Live variable. their smaller our events result, to is business after as and that a we now significantly XXXX ‘XX, our expense brands our footprint have a

Events’ our $X.X Live refer declined to income, $XX,XXX, quarter nearly of the segment expenses quarter year, profit. So resulting still approximately the of only a X operating XX%, adjusted to cash And first for positive, second second also is months with as loss $XX,XXX. revenue Events million which I Live although XXX% flow declined small of

strong no for expense generate and variable revenue our management. basis Events, break to our base an given largely Given more to we if of Live EBITDA remainder in flow expect Live the year, even expense our XXXX, were Events for Events Live division cash even we the on approximately

Going involve by that of crowds handful and and state forward, operating we are local proceeding large very not guidelines. only all and events abide cautiously a do small

mass foreseeable future, people. expect, you of operate would live do or any produce for not plan As the we involving gatherings events to

and while communities live are continue communities. so markets events we safety employees to in heritage and local do with We and proceeding look our And to look prioritize audiences the our person in XXX will seeing we forward not health our prudent. safe forward local it’s to until we our and we our of and that again, our confident approximately

to As mid-March severe would it Live and, became that acted pain impact we business that pandemic Events in enact our to revenue reductions help apparent our base, cost a particular, the mitigate we was Advertising expected quickly in COVID-XX the near-term experience. on have going and to

the cost we realized temporary expenses hiring amount In $X.X suspension second long-term decline We contribution program prudent. maximum reductions related of the million to temporary in the we and or expense XXX(k) freezes, prior our not offsetting our million of fixed reduction the these various $XX.X as result quarter, in we quarter, that measures monthly compared approximately a the approximately partially felt would As revenue. actions, of our to second the cost-saving direct workforce, period, other savings the declined year by deem during matching XX% of enacted opportunities. growth hurt operating

for are of cut to and as as would not some we all deeply and talented, cost did expect business. personnel could and slightly that up. as business hit will that Our reductions reopen a not of have, have ground leaner, as minimize to Therefore, so permanent goal expenses these we was running layoffs team we these we in states the world-class place return ready although ramps

strategically already For example, again. we hiring have started

did and number or we headcount our large not focused Ignite on at of functions. or teams instead addition, Interactive the corporate roles Townsquare reductions either In reduce a Townsquare support

we be quarters whenever one ones, we months side other to the steps be, just the but believe the taken now. positioned of may have are positioned from media pandemic, right or on were the that pandemic, to I local companies this this not through However, well importantly and that prevail of most best

focus Now I’d highlights like on quarter. to and the some financial switch directions of second

and be pandemic, be so, profit and foremost a accomplishment. business, built is subscription it recession-resistant growth subscription digital we proven First solutions believe subscriber Interactive. our was a Townsquare truly has revenue, to and marketing Townsquare the impressive to business, Interactive throughout delivering

by During but relevant this assistance. strategy, information resource to about for plans important example, with the pandemic, government a powering for not providing became communication information Townsquare Interactive and tremendous apply only online team by sharing for and our stimulus how also timely local clients them, their

helped COVID-XX health online helped adapt In business a to results curbside adapt websites addition, true, pandemic. to translated the or and and ordering prior for their team use platforms, resource companies not the small to valuable pickup websites owners, restaurants online those did Interactive websites classes, financial and professional strong it which services Townsquare important and for to virtual their their that for and allow Townsquare. e-commerce for retailers for helped fitness adapt offer scheduling provides

consecutive up quarter quarter as XXX, XXX the or Second quarter, of addition net revenue during subscriber increased to XXXX, net ninth QX’s net compared of more with approximately plus quarter the subscribers, plus plus net the QX ending and an from adds. of XX.X% subscribers XXX XX,XXX

of Interactive within Interactive annual reaffirming our the for therefore, years. I achieving base, X expectation QX. of rate Interactive’s revenue million am in to $XXX at is Townsquare revenue confident QX and $XX X Our in million based annual net our Townsquare revenue million, over And run was subscriber Townsquare current on $XX.X end

profit generate Interactive and of $XX XX.X% profit year. strong Townsquare of quarter X profit, in to in QX, first of healthy with million continues addition, a In that’s a $X close margin and in the the million over to months second the

averaging months achieve revenue with month took Interactive’s to TSI expect grow plus strongly base for As of July continue we see subscribers, growth, time to month are took us per period. Interactive of subscriber first months to XX,XXX our begin subscribers, It that QX, XX to XXX net only the month thus next which net to and XX equated we subscribers for adds rest during period. time then the XX,XXX average during an It per to XX%, XXX reach continuing Townsquare subscriber net added XXXX. we each Townsquare that

basis. our that digital the years XX,XXX annualized Given $XXX subscribers, serves by per month, in revenue. driven and second than financial of between a for revenue subscribers in clear the in In expectation be months pace others reach local pandemic. expect point second the differentiator XX% advertising better expect as of media. digital Ignite, and by a million not X Interactive’s roughly annual revenue quarter total of was adds our will XXX XX When we net our was will due we Townsquare our advertising accounted or We adds advertising second one also to Interactive quarter, a solutions This reach Townsquare more million only solutions of quarter. products within programmatic approximately the which but strength, advertising on less. another digital popularity in XX,XXX net quarter, broadcast an of also revenue or our That in will than XXX the highlight solution, net our X to is believe Townsquare strongest or part we faring at less. reach also our in subscriber that likely most subscriber This $XXX years reinforces Townsquare net X we during

solutions QX the compared single entered years. the positive for prior Ignite in Townsquare I declined QX, period, confident and XX% territory Townsquare only to revenue advertising QX to While be X year. thus advertising overall remain And pacing prior X expect from in digits has digital July. to revenue to will negative declined in it in estimate our high revenue that annual $XXX in up Ignite reach We over next Ignite million mid XX.X%

and video, engagement, websites our Additionally, our growth to QX, a to apps not in company, are rebound classified on local this return we ad XX% for this proves given impressions our differentiator and Townsquare’s from industry that if sites, premier real point our but and their expect be a of we in diversification subscription than audience and digital solutions, strength marketing and online display digital although And should and and and radio robust our declined out prior negative company. my apps, or only DNA just and mobile year quite radio, sites to not our our proud more limited increased digital on audio enable of our our we company owned be, operated at this services, are the pandemic Townsquare broadcast honestly is COVID-XX fact media radio the in in which can, marketing others and will digital will own proves a opinion, programmatic our being us quickly advertising as our the or believe levels, digital higher. rather digital assets, QX solutions it In downturn. audience social, advertising to that roots

today a I’m our cash financial bit. final it in highlight and to very will generation The point a third therefore, referring Stu And will is what time spend ability. one, on and is more some I important out

period, our approximately at experienced, million X after and to last the during next of advertising ever nearly in levels the visibility we flow of expectations prudent $XX our As advertising continuing Even payments reductions second we current cash most our the severe today knowledge, position making $X.X operations with our even improve. flow was positive have million was million operations sufficient one as on is provided of revenue declining from revenue in cash sustain and and you that in $XX of does in is that the for management, call, better if the year-to-date strongly by XXXX. quarter with second expense the our interest our based XX% pullbacks cash earnings And positive a and current the shared negative years, we forecasted cash business quarter. our not believe liquidity and result and part on

July, August. necessary believe and in prepared quickly, QX we July in are you for very revenue in that a we work in sequential trust However, on our currently more and I and to provided it. fact, currently in doing are And recover what not through seeing for thorough only and results, that QX in-depth we improvement we our also are August. business the I perspective, but seeing are

Looking direct QX, very I to ahead to transparent. and be want

long Although that industry to recover our Advertising our we have subscription grow, seen Townsquare go Interactive revenue to sequential resume continues in still have improvement a business we and fully in leading we generated XXXX. to and business way then growth

As the second you dependent weeks and or expect, the on are continued future results of few pandemic next winter. and is stage whether of fall over businesses the there the success would opening quarters and a months in

given the as not goal in net will in be providing our XX% to formal QX to compared guidance we continued in from improve is to revenue QX to of XX% negative the QX close year. negative last COVID-XX pandemic, uncertainty Although

in comping had against revenue we in $X.X expect QX, million the QX we are revenue, As case in material event same was we the Live QX Event and no where XXXX. in

our top we the companies away, confident call that, stronger, a and other to profit the are in that discuss results I Stu, over growth. much greater Take it will line in when bottom the to is one growth side local be financial who organic for revenue my line on Stu. With media detail. turn going the of best pandemic, and will this positioned we in we of U.S. However, emerge view,

Thank everyone. morning, good and you, Bill,

for we Exposition events. sold reminder, our a live Bridal XXXX, As

forma well our release, presented to unless as non-GAAP forma year-to-date performance which rates measures. growth pro results stated. of these provide and results for year-to-date sale GAAP Our events, refer Please XXXX the XXXX results as are our tables in earnings pro otherwise the and included

results net $XX.X decreasing financial revenues our to prior with period in EBITDA of quarter $X.X were XX.X% the with over adjusted million line million. expectations, second and Our

call, our net May improvement significant XX%, the country. As respectively, we compared first prior as negative June conference the year, benefit from period. versus April as XX% across a to prior to reported XX% businesses and began and finished the on at marking quarter reopening revenue declined

revenue compared net saw June, to and XX.X% Advertising and prior declined worst as April, April Advertising cancellations, the quarter the year. quarter. XXXX. of terms XX%, advertising sequential XX% same month the a compared revenue our Second net to improvement we in declined was In May of throughout and XX%, respectively, months

the advertising than fared better continued digital during Our quarter our do to broadcasting in solutions the solutions advertising third second and so quarter.

advertising events, year-to-date demonstrate by year-to-date Because of revenue pandemic, our of and subscriber net its period quarter, with or in and second increasing second canceled XXX prior X%. Interactive revenue best-performing quarter from prior XX.X% nearly revenue actually to Ignite versus we year-over-year approximately net base subscribers XXX% as Townsquare in in approximately postponed advertising quarters. the product year. Our quarter the the solution the outpacing advertising resilience, quarter our live in net the Townsquare Ignite’s increased our net was period, resulting by continued one grew second declining

the expense expenses period In operating net Bill And by operating while expenses. on increase earnings the second the XX% do decreased versus expenses direct Events such we were Live operating period, This to by versus the not XX.X% revenue XXX% partially of second efforts approximately the $XX,XXX. direct decrease discussed Interactive as by by license our Events an is year. basis we last in partially commissions direct license reductions, as $X.X reduction direct approximately to advertising largely direct Fortunately, In of or decrease the self-insurance reduction plan, expenses, in advertising other music variable Therefore, including operating the for of X% Townsquare the decreased offset do declines approximately direct that expense temporary were for expenses, hiring fees, operating declined as breakeven prior offset earlier, if of well quarter were various and fees. period. and second quarter Live sales and announced music quarter measures. expenses quarter XX%, we any cost a $X.X XX.X%. the prior in our as million. These operating driven with host and bad freezes, Live declined in compared was total, these the a approximately by income year The $XXX,XXX call of expense compared well of the as not bad Due reductions Live nearly employee Events Events net headcount a in quarter XX%, and year-to-date period, declined positive or expenses decreased interest year loss prior interest year and to second declining to operating in prior medical as expense increases cost debt the expenses Live resulting XX.X% adjusted Events debt and variable. reductions for X% million related rates, year-to-date event, our period, revenue incur driven

that evaluate our a impairment During impacted. FCC used of for to the second of the quarter pandemic, negatively COVID-XX licenses the were assumptions result we XXXX, as

we conditions. Specifically, economic This of cost average use to discount translated increased risk rate on market because the capital. and a impact premium a COVID higher and, higher of therefore, weighted

impairment include the or Townsquare expect in impairment of we like in primarily that to we recorded be revenue result, of intangible intangible approximately no when a assets quarter. continue $XX.X We million the the have result of and took charges total, assets. to revenue charge streams fact the of profit to Ignite, months first a largest the non-cash over reduced X coming pandemic, the include revenue COVID-XX FCC licenses FCC XXXX. million result our of Interactive years. is In digital licenses As the to as of these our of of I value for our no longer value XXX% would of a $XXX FCC second that a we our Townsquare and This non-cash supporting we longer stream. telegraph

continue operating on affecting prospects. no profitability purchase outpace our formulaic or streams sales, accounting future charge we will are has non-cash that purchase revenue our our in write-down expenses, of than XXXX. our This digital the continue. cash XXXX we price a radio As only back position, to company’s nothing bought operating station cancellation They decade-old radio through these made bearing this spot trend more price when allocation revenue,

discussed provision the previously tax face net share $X.X from decrease of financial is for to We for of income assets. loss driven to compared of net the quarter, charge. diluted you loss and the in of net due the the of other related on like the operations tax COVID-XX statement attributes, by the statement NOL the was The federal the significant income in purposes remind continuing GAAP diluted million share net For carry-forwards impairment second continuing maintained and $X.XX taxes decline was million We quarter only. or operations of revenue million included second as tax substantial yields would XXXX. or $XX.X from non-cash amortization pandemic income including primarily per per intangible to our that a $XXX $X.XX to

until approximately will not to cash be We a the that year XXXX. continue taxpayer believe material

adjusted of a XX, our million, XX our our implying balance of June on as and XX as balance was based months $XX Turning was $XXX.X balance sheet, million, million. leverage EBITDA $XX.X trailing June total total our to of X.Xx cash debt net of

a we our during continuing of interest payments, million operations entire generated we as at quarter, QX second positive approximately $X.X end generation million cash amount the to precautionary retired first and second and strong also to due assets’ the value we excess flow outstanding our demonstrating of During cash to Also requirement. XXXX revolver, payment of down term our ability. to flow our $XX.X repaid had loan the million which prior repurchased our the them. the we quarter, repaid as face a measure drawn on from and I of our highlight April hit markets, discount balance $X.X unsecured that million XXXX XX% to flow X.X% at $X.X notes cash pandemic began want we

$X.X during million paid also dividend We of quarter. second the payments

dividend. savings quarterly with XXXX. our not XX% our by In In elected as or quarter, XX% to the compared or approximately $X.X second year-over-year. Board to an forward, XXXX, to a limited spend our As declining we expect $X reminder, expenditures has also continue approximately of capital capital total going we million reduction million expenditures

payroll cash $XX.X In XXXX the months term, order we XXXX million XXXX addition, only during under deferring payments of we and of million preserve by debt from our the of total, the strength payments. data and points by by cash $X.X anticipate cash demonstrate cash $XX.X experiencing the on in In interest declined X holding this sheet operations. reducing million, long-term Act. making taxes near the first CARES our savings In balance until million These in to dividend are paying despite of flow pandemic. $XX flexibility balance

cash call, based at to goal net believe same last we our With the long-term to been which the revenue will XXXX impact business reduce our Xx, achieve are the Bill. to years. levels discussed sufficient same: modeling our we we we of of prior on remains now X for that, leverage to end back remains better even the that turn However, And liquidity earnings over today, on needs the of to as seeing call projections, on I to track part by meet we various the have have that pandemic. the next if the

of the this XX a of year to local Having in time our what far locations by past pandemic years, with Stu, what Townsquare. I time with you Thank who past lot teams me dialed everyone at decade. a our during our asked pride Townsquare my team. I visit and differentiated time our our team that result, morning. prior a the what thank know is is how to commitment their passion knew for a to is they was true their once have company. their the markets most invested serve But and spending recently Number honor of and each often I commitment and office of is day and leader, and and let privilege to to to unparalleled, was you, inspiring, do as over it their a one it over the team Thus, as communities repeatedly. It their a has offering, had strong of solutions, XX Number we two, our and digital chord I diversified of proud the have talented I and did which proud was. minimum not this am foundation. struck is I if this each QX product this with downturn and revenue of more efficiently products coming allowed our than revenue our us weather and from also extremely diversified XX% to XXXX effectively in a

considering is need to during with and our things rather executing the had to One stakeholders and noted is our strategy. pandemic at our three all managing above communities with our and crisis, teams XXXX. long-term strategy, and have outlined expect taking our I Townsquare, position on Number this to call. the in by reductions and liquidity of foremost, we well-thought-out We pain but all unknowns we, that will in that pride business the we local near-term of well-being and cash detail our in double not that help challenges pandemic, pride our ability that a of the on by on that generation through our even want cost all; the flow this core of secondly, carefully down Stu health mitigate our great first existing employees the the placed ensure to spotlight and are alter

strategy, downturn differentiated diversified be believe this our with that reductions balance to this long-term I We more is and and and emerge we growth. be. will product positioned competitors, with goal opportunity stated to together quickly earlier, cost efficiently want our more than offering, that our we to ensures As for our from

speaking to look open hesitate say us opportunity. not we call for and do please call our Be questions. as that, always, as at please the with with operator, Townsquare forward I As every And well, investors to internally, strong. stay

Michael Instructions] [Operator from comes Kupinski first proceed Capital line NOBLE question. with question your you. of the with Please Thank Markets. Your

thanks quarter. revenue month-to-month questions quarter? the taking digital sequential details all the the I the that thanks and them you give you progress for as for specifically and you Townsquare’s in well. of Did improvement on the in the know Interactive, Thank on, for gave way, by the

Yes. which XX.X%, Michael, noted noted that QX, Hey, adds, and Good is on you obviously, morning. in our it in XXX of What hope net we as average the XX%. from call quarterly we up trailing was increased I to saw of July, that well it’s was, growth Bill. also we And XXX.

we XX.X% quarter, the in specific we growth XX% expect rate month-over-month improved and that So highlight in has from growth continue did of QX give didn’t that to July QX. the but a to

Okay, got it.

of terms you expenses, percentage talked terms there in to of anticipating the some In being you those what I reductions? of permanent expense be Is that a about know permanent. are

noted, million a as on workforce believe, reduction over million was our was tied April you did, we that monthly, it So that know, to $X little $X.X I X. of we

So I million would more in $X.X match like company revenue $X things temporary. million permanent. say things would And then probably more would the to other tied are to be XXX(k) the be and that

permanent. month would So a I would million be say roughly $X.X

the X, you quarter any is in your that the Live this at probably be quarter. are revenue planning fourth point? likely But virtually in Event X And I virtually Live know Events to third

Currently not.

revenue for in modeling terms or planning, material our year. and I we revenue no currently what looking QX Live this we Live terms year, and materiality But In in look no planning, at Event will of expecting at or at, rest QX. plotting any am beginning the of of the Event next expecting that are and are of

looking the expenses forward. going I’m or uptick right wondering and we QX the look for this second it if what showed sequential corporate where should what just in in of terms And quarter, expenses, – quarterly I rate at run was in corporate

Sure.

turn to that I Stu. think that was mostly tied to over our audit, but I’ll

Yes, so the auditors. when fees legal professional we and audit costs, increase big a had changed Hi, we in Mike.

Going forward, bit than last down a to little and we year. expect back less come it being

not would or maybe that that Got themselves past just present and misgivings you it. have something pandemic you that? you’re before generally of that is affected now recession a something have you may – of this light how kind But – or kind you you at may this some there if you looked – that opportunities misgivings am nebulous have maybe is different this things that something like on about at maybe a pandemic that like seen and that I look learned the And guess opportunities before shown or from that had if there but this hard just address. question, was you, that pandemic have to at may I wondering addressing. a company and

particular, say, and outside The really cut we appreciate XXXX, XX, size the on size in as in physical have week our noted but that, all news focus back. diversification XX – a days newspaper. I our that, prepared our markets, I based foremost, revenue markets across the of first but back years has starting the X would a on a cut many Yes. in published our been markets Michael. strategy really remarks majority on, I with I television been fact building and when in top on couple severely. the started coverage actually definitely has don’t in ago last company stations who the doing our digital were newspapers And success formed the potentially audience America, of a that. and of have of Local now as markets. And in that there’s noted newspapers when calls,

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It’s if eyes. know think, particularly the were that’s things more doing, we don’t we’re at, I but you that’s I looking differently. what were our shined exactly something it’s like doing – teams’ in completely sales So brighter, really

there’s And bigger Bill, about this also talk onetime explain then little it or if not you bit a Is and opportunity? a it or how – about came is opportunity and just can whether can event the you Google a there?

Yes. Thank Michael. you,

and what is Minnesota, an about they like have So actually in Minneapolis. St. Cloud, done which because seen it XX we minutes about came places hour North have

news We have WJON, is a station. talk which

the practices us on that, Jersey web Tuscaloosa the of to on that KX obviously, will But few share commitment part and seen Radio I the What And it same about. station, They’ve you last and to XXX.X. is your asking us. the was well others, Casper, that this can what and, essence, the we’ve, this during then, over have they’ve X filled I newspaper. came app, one really, compete of and newspapers premier our look New consumers our best or that. then how in, of done particularly industry. asked if an grant decade brands, we the a noted in markets have those situation they with markets some learning’s described, they’re in with you as really grant And to and they this you will that’s don’t as in either to in of described. any cutting have type have, how We And years go and do back dramatically broadcast void like share essence, a Portsmouth. past in most for That that do these playbook to of rest so the

profitable time. just the in, that as interest from be $XXX,XXX. they’ll of won’t on have believe, provided they grants. well But mean core we’re team that Google not digital there grant, a business, amount like a future only be as we communities industry that funds, took in be help But continuing not an And could of amazing our note this but have but future help onetime expressed us – in an they doesn’t because perspective. short the a we’re It engineering really We to and perspective us content overall. is counting but

so Got it. Thank it. Appreciate you much.

Michael. Well, be safe,

too. You

Jim with question Research. proceed next line with Your Goss your the Barrington of from Please Instructions] question. [Operator comes

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definitely. Great Yes, Jim. question,

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that seeing improvement. we’re So

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are categories that In on those? versus a terms core radio, the working stage there is – in with of the you’re Ignite ad difference

Yes.

in broadcasting fast same an particular like Ignite At of coming as from this but grocery wouldn’t retail. time, categories seen, clients that seen in new I homebuilders, difference, repair Ignite. really of well the a lot from as things say, also is – as through as in with big perspective, as home we spenders necessarily for auto us like come a and lot a So We’ve weren’t pandemic, from hard slight go perspective there auto a entertainment and have food hit state well general, specifically governments. during stores,

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corporate support our There so and a any lever because time the but lever in company it’s matters at only business that is not live It differentiator not communities. not we the providing believe in more future, available our perspective, many from local content. But before, and was time XX% X also workforce in we honestly on planning in was tied am The to a a for shared much I QX. as that’s on-air us, they’re levels. as utilizing a I’ve local, to is functions to it X% were that near April this did reduction clearly but or down we even on

it about in when all essence, that DJs they’re local driving have of at it station But QX, XXX% and look original providing trending of we content and noted digital year. so have in influencers, our believe advertising on-air will and look as on-air past, the last be our directly also, is That to actually our in broadcast greater O&O at the side. that Our positive don’t assets is websites the talked we only we staff. talent locally, all we the radio as holistically, at social or, traffic and look I the we local for I ties and than correlated this

we non-personnel-type believe face more, of could a we’re syndicate lies that – do allow real press reductions differentiator. out. but at some first us said, that strategy, I take looking we expenses and there’s So in it’s that local the our some to been expenses believe and reports we That would

and just seen have of those may You markets, Nielsen were X exited smaller in we X markets.

expect And been be we’ve in Nielsen markets also not we there’ll be we was previously will realized in. cost savings starting fall. that that the in other that we So that

of those on-air I’d – assets, our our believe, and make which that are moves I is most most talent team. our before impressive one our So touching

Alright. Thank you much. very Appreciate it.

Jim. got be Be it Thank safe. well, You you.

would to Ladies and remarks. for call question-and-answer turn gentlemen, have Wilson back closing the I we the Mr. reached to Bill session, like and the end of

hopefully, and recovery, half operator. you, Be almost well you generation. Thank to updates, just taking time. provided see for we this want that we digital to Hopefully, and are we dialing until in how And and are in And thank say you with Thank operator, time in-depth information safe, this the particularly learn pandemic. confident everybody, thank be our morning. more flow revenue and next navigating appreciate about really you, our of cash our we and you. you, in

concludes conference. This today’s

may your You you disconnect. Thank now for participation.