Townsquare Media (TSQ) 16 Mar 212020 Q4 Earnings call transcript

Good morning and welcome to Townsquare’s Year-end 2020 Conference Call.

As a reminder, today’s call is being recorded and your participation implies consent to such recording. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] With that, I would like to introduce the first speaker for today’s call, Claire Yenicay, Executive Vice President.

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

turbulent you, and But year. was year. and was it all rewarding thank incredibly for you an joining an Thank challenging Claire, XXXX us this morning. also extremely

the I've thank effort their months, entire XX dedication. work, past continually and team the Townsquare best Over hard for

businesses inform at strong team as keeping be the great the the advertisers would company, the not passion helping pandemic finish without Townsquare well throughout country. to amazing entire effort of both Our by most. needed the across at and reporting our team by a communities inspiring time worked and and and help local our local to when our entertain year We our with tirelessly as

the QX. perform it as partners. revenue net goals we am proud quarter most. see our year to our for the I'm QX strived revenue clients, and in ex adjusted will best own prior internally, political of to rebound compared and we to Perform As our our as X.X% each in carefully basis the goal half, negative And improvement better revenue performance at reducing team our outperform our we mattered It XX% best strong to fourth that that we important our quarter. throughout we revenue an by that that also to our and X.X% We XXXX, on just improvement month call EBITDA. as expenses. experienced expectations. goal, business outlined cut sequential that continued in members, continue they fourth in fourth I our quarter earnings we plus year-over-year for when in very X.X% reflect XXXX, say we the fourth proud in growth QX is declines to said the strong we business. communities results financial on results believe as exceeded and was our QX QX, from to My look impressively, quarter expectations this note negative net delivered to of year-over-year to decline negative managed because each month as outperformed our

to And and into currently the am XXXX. continuing continuing plus through I XX% QX Townsquare represented increase is million, to XXXX XXXX cases in glad also report of rising, the pandemic the the team me challenges able was adjusted and Let EBITDA plus by $XX business over our Clearly, fourth of the adjusted a and increase were consistently, starting from EBITDA. rebounded strong nicely QX again. QX, to say In deaths that all quarter QX. COVID during that which X.X% quite rebound face of QX, as

Just as acceleration solutions local our not and transformation Townsquare's a more premier company. results digital the important, media than XXXX financial of if into marketing was important

it revenue very growth and our became Stu end, year-over-year a But are bond this in profit eye our our understanding offering company. clear our was highlight digital digital updated capital our digital revenue since first from presentation the and which a our to in will are process wanted I in reflect communicate transformation you audio, and of our few lack proud call digital we have Investor that we the in public we the we digital not opening a local of during and profit of our was roots first growth consistent of Although strategy, XXXX, radio, digital ever and Later this new beginning the better XXXX. highlights very assets Townsquare that me of our radio, structure Presentation company and share in DNA that became digital at put vision we was And with to we year. To to call, to place proud what in reflected and morning. orientation. the

the will XX in Townsquare. the to now United reads Townsquare It focused presentation, accurately our we of a is more and States. solutions markets radio company the outside media, updated the opening focused marketing see reflect you on As digital community have slide top description digital company

search of brands. radio media, portfolio local terrestrial and national a along reputation corresponding Townsquare demand digital online and apps include and management providing platform; business marketing programmatic local SMBs. an data social in-house for our digital subscription with proprietary XXX technology websites, management entertainment music optimization, advertising a platforms, websites and Townsquare Townsquare of news a stations with Interactive, engine Our services assets Ignite, and with network

have X we be events. as those it Live helpful you the segments; I three operating I components aware, breaks through Interactive behind are And and three Advertising, thought it would walk you of financial deck Townsquare investor As quickly our if key segments. down Slide

Advertising advertising of digital Our segment composed broadcast advertising. is and

versus XXXX X% QX QX advertising digital XXXX, will is Given there. in I plus start growing faster,

is solutions. primarily advertising Our digital made up two of

platform. which Ignite, technology is programmatic The digital first our is

is and The our monetizing owned brands. is AMPED, second operated digital which

the $XX of advertising Slide million was X, you which On plus an digital XX% in increase column left far XXXX XXXX. versus revenue see the in specifics Ignite, of will for revenue,

a we previously XX%. of own normalized is multifaceted. As this the one differentiator approximately The entire stated, us Ignite is tech solution. profit has from an offering a agency. believe the essence, margin relationship and Yet service customer Townsquare higher the for and in Ignite client the We we success to own optimization right our strong client client to have solution From and retention We with our customer to full experience depth is the messaging have digital control that creating ad creative and leads is in-house. a client's campaigns Townsquare activation reporting, better rates. which of detailed end-to-end.

political XXXX, is delivered XXXX, The audience XXX to advertising AMPED, network million pandemic. was local digital an million revenue. visitors a million. set AMPED digital and In and brands advertising radio engaged are over in mobile of unique which the XXXX. Moving record in apps, in generated AMPED of segment generated owned by component revenue during revenue up digital generated in highly ex a our of made which is broadcast XXX $XX advertising advertising operated remaining our all-time the and one million $XX digital in stations, XXX Ignite column Combined of websites together XXXX, over which on XXX basis XX monthly

basis Kaplan, Miller by published metrics sales that XXXX, track. measure detailed throughout radio to and as and they That down as points improved we points local our by and XXXX, industry XX% According in political basis QX by XX%. XXXX. QX XXX in XXXX, compared outperformed and in sales XX% again much to XXX April and overall, in declined ex in As negative revenue for negative spots the negative to QX was total we markets spot broadcast to improved XX%

growing a Additionally, to spot Kaplan, is accelerate its return X% is I advertising revenue. to in advertising to and am year-over-year component that in rate. plus our we growth it worth I outperform also as I Miller advertising QX digital is from advertising pointing scale that digital will it It strong And Advertising revenue belief, that digital XXXX that relates that total revenue in up by broadcast both while quickly pleased surveyed XXXX XXXX we expectation advertising revenue that total XXXX. which Thus, our QX ad advertising share market levels, will industry and mature than million accelerate also total our have digital segment, trust includes out digital the the clear to back QX and in over will broadcast very current revenue and XXXX. post-COVID expect higher to component. growth X an XX% revenue in QX was QX plus revenue

XXXX. our of improvement in that improve to to QX. negative negative XXXX decline year-over-year broadcast In Advertising to ex advertising in continued it QX negative revenue negative XX% sequential segment close current relates and our negative narrowing total, in in path X% political, the is expectation XX% QX declines in XXXX, our XX% QX, from out QX will XX% to As

broad every revenue across sequential nearly Our line. improvement based on was a segment, the improvement

approximately plus growth We our Townsquare XX% of and The is of And business, profit to throughout added record. end resistant we strong Townsquare to the per have Interactive business, Interactive the was growing strong owners, financial valuable time revenue net profit compared pandemic, or year. that on net Townsquare consecutive recession subscribers We profit increased million XXXX XX,XXX now of the over Townsquare resource digital with all be is Townsquare translating generated added and subscribers XX $XX.X our outside quarters. In XX% and digital increased to an year, the plus accelerated approximately plus margins growth are ended quarter built an impressive Townsquare Interactive. third XXXX, with fourth solutions local TSI's results to the throughout which truly for XXXX profit to approximately important margins promise, each and provides subscription component of our Interactive profit XX%, in subscribers quarter, plus X,XXX accomplishment. business In subscribers for XXXX, At year. revenue, the setting net our of in XX% delivered it subscription Interactive. net prior to for more of market Interactive for year XX% and revenue prior XX% accelerated Townsquare. XXXX, translated subscribers. small monthly XXX footprint.

team. of able that XXX our significant. Charlotte, headquarters what is market penetrated size to We of TSI which personnel well we total market under have Interactive within based Townsquare as an importantly, and within because of incredibly a person team accomplish markets people, Interactive's houses are our team approximately inside additional within an sales XXX TSI's amazing as footprint, approximately addressable local similar We local is Townsquare still believe and demographics. in this

would Investor Slide our you it. like opportunity to a take over little to to turn XX you I If businesses the are of walk XX would through Presentation, nationwide. There million

on XX for Townsquare put focus which markets businesses. to important businesses top the over we we We eliminates additional few million that target that cities XX.X XX.X the Given SMBs on then gets filters million outside us Interactive. a

is filter first employees. The XX or businesses with fewer

equates $XX privately that filter Interactive. the fit years for are $X or over second that target those with of businesses. owned of and is filters, Interactive, which At of certain agents, million independently estate applying businesses. exclude a lastly, only Townsquare month annual estimated have solutions, we types revenue addressable types And X.X all of to not market After We incredible. Townsquare other million $XXX ideal our The total for to over ARPU, businesses companies billion we for per include less. real banks customers an then equates determined include

Interactive are in we to order Townsquare in U.S opportunity. planning a second the adding on fact, location capture In this Western for

$XXX political turn the rearview this America's plan fully subscriber Our for assets we team, am is location is other profit It engineering mirror. at net total XX% our sales which consistent to is XXXX, million our be already growth last top we location of strong continued X world revenue digital in original our Townsquare. when Townsquare X and our we arguably will last quarter digital revenue organic have digital your that in revenue. even year all first XX% And demonstrates proud matter transformation our revenue recession, open XX%, With a time confident of double-digit political is out X, given net But sidelined this which I digital the significant importantly by opportunity, XXXX, next growth XX%, class. XX% believe also solutions is the XXXX digital to timeline in our profit one, existing in XXX% in the With digital with digital note plus Investor growth, reaffirming Even from etcetera, the #X, to return you can our be a year-over-year On I will XXXX, XXXX. revenue attention ex our a digital and a Slide our and spotlights was important greatest grow slide am product once The most although we XX%. in noting growth. with coming we of is Yet XX%, into revenue XXXX. Pre-pandemic, of revenue margin just of recovery total digital along growing XX% market of year year. our No to #X, which to listed to truly profitable digital pandemic expectation highlight who of revenue that to base, very a Slide XXXX. just our of Presentation The to Townsquare's slide in is was in XXXX annual live And our current X% from comparison am before able to year above growth a growth pandemic growth million achieve hit. opening company $XXX again of million and during revenue digital addition from that broadcasters will XXXX confident to I a I in in resulting important and roughly $XX QX built in Townsquare years. pandemic, since in and within a is our $XXX our see results. event in-house pits momentum have the have Interactive clearly our over in will as in other profitable reported will pandemic, their revenue the one Slide revenue during million post-pandemic at XXXX. I digital been our XX% to ex will company plus translated

on events negative to political top was QX, periods. As QX, live revenue row, XX% can you starting X% see QX in net the compared ex negative and ex XX% year in the negative in prior

have that will was in XXXX all to further to Townsquare XXXX. was company in X% plus you digital plus full XX% XX%. reduce our our outlook, X% expecting improves total to in expectation XXXX. that a XX% in are our QX QX results. QX Townsquare plus current I is middle is In revenue and current year-over-year. digital expect verge revenue XX% in negative XX% and revenue revenue Townsquare our XXXX current in taken XXXX, Given our revenue. XX% XXXX to double in we revenue And of currently the versus we recovery. of believe on Ignite versus plus QX together, plus will digital XXXX negative in And XXXX XXXX the Interactive that expectation X% grew comprise is growth plus and We revenue row, see our and

growth On of the Townsquare pandemic. each bottom most during with proud plus we of adjusted adjusted of XXXX. have of row, QX the XXXX result quarter the being the EBITDA of, over QX plus team That depths for X% EBITDA outlined is growth the highlight is in X% XXXX

also review also allowing adjusted XXXX over can QX in to go profit plus course, XXXX to investors at I XXXX. you QX all plus encourage we our if to Thanks on are current slides growth detail As full have the highly for potential out #X, over do XX% me And through presentation in questions. see reach of to Investor own. any XX% growth expecting growth QX EBITDA and Slide their on please of few of the Presentation. a and you me

begin positions in our in XXXX. hand our negative X% to throughout to as over from strong XX% QX. narrowed negative year-over-year Stu, we XXXX revenue QX I Before the I'd outline like to declines We materially call

Capital's address in And our EBITDA cash warrants to our Oaktree's of XXXX. Replacing also leverage tranche and from ownership does generate our $X.XX expense X, Oaktree the for repurchased balance XXXX, much debt X% enhanced the We and plus which overhang we in with to Stu that XXXX. single we XXX% that per returned a through discuss allowed flow QX. positive operating paper that of mature detail able also were Townsquare At management in [ph] security. equity a cash until outstanding to in On of the greater addressed presented. shares end us we growth X.XXX% adjusted year, finally, sheet, careful not operations shortly. and Townsquare we of importantly, majority And large March will

retired heard investors on and prospective share flow on and investing is is XX%. a a current $XX price have XX%. to the current share have transaction funded shares was been At would with on the we And Oaktree XX repurchased natural warrants resolves was all investment. significant are earnings by buying. Oaktree, we transaction the share million the of to accretive this would in than million committed cash We repurchase per very you a been longtime all million hand. approximately long repurchase investment, conclusion and purchase The excess XX.X million and has of previously very more January basis Based company, in investor their shares from XX of an I'm this a per shares. pleased dated well a impediment aware, cash repurchase XX% of aggregate position minimum we building and of This overhang we As share that and very, which in instead of represents adjusted previously free and often accretive announced Oaktree's to representing counts, Townsquare.

the Following the company stock price Townsquare's our the call greater by over to XX% away, common the buyback market warrants. on increased that, announced XX% future. and price, shares Stu, XX, Since much Stu. premium is have the we transaction importantly, results this Townsquare's seen share Take and of XX, of million outstanding, has it detail. repurchase, much, going stock evidence we With more buyback I'll a turn in financial support March inclusive XX.X to discuss January who the to through

quarter year our Interactive Thank Townsquare In as and you, net exceeded continued financial We as strong fourth only that advertising, net expectations, Political year a XXXX's quarter annual million, the versus in record political the revenue, improvement the X.X% declined segments and good improvement ended of Bill, revenue. revenue driven a XX.X% $XXX.X period net revenue XXXX's results our year in record QX morning, million million. of prior with by a XXXX, everyone. well political $XX was over the year by revenue. amount decreased to total, quarter to original setting fourth revenue $X.X from fourth in $XXX.X XXXX Presidential which XX%. XX.X% million prior exceeded and

revenue quarter year Townsquare TSI revenue $XX.X year quarter, improve In fourth year, the as to year from up to full fourth declined the In and declined quarter subscription revenue subscription fourth XXXX, TSI's as net increased XX.X% periods. revenue, the Interactive QX. revenue in XX.X% XX% political compared million. XX.X% prior the continue over over subscription Excluding prior to increased XX.X% prior business

margin. the XX.X% growth Townsquare profit prior to versus Interactive XX% a increasing $XX.X corresponds to addition, which with profit deliver continues profit to In million, year XXXX

representing year-over-year grew to resilience excluding importance X.X% Advertising net SMBs. revenue impressively, XX.X% revenue XX.X% decline and prior each the in net XX.X% declined it's meaningful from and to revenue political. fourth its Townsquare compared period. quarter, XXXX, the improvement QX's Importantly or demonstrating In a as we of of and believe political every Interactive excluding month and subscribers This and

down digital Our from the full growth the third quarter, second prior net prior by for and only well. XX% is in the in led revenue period XX% revenue fourth in increased as growth in and was was improved the the [Indiscernible] digital year the net approximately quarter. advertising year fourth Townsquare down period, fourth in advertising advertising The Each quarter, the year. XX% the achieved solutions year narrowing the X% of X% materially quarter up full solutions third Ignite, which periods. to compared net down declines our from compared revenue in the to quarter to quarter as

advertising net live the hosting and Excluding down versus XX% trends to from saw second the XX% declined down year events still quarter. Events quarter third revenue pandemic. due XXX% political the as the the we in nearly are we the in quarter quarter, same in fourth negative again, Once broadcast the only prior to fourth XX% not in in Live

QX align prior Fortunately, Live XX% operating largely basis. the we was pruned totaling and first direct versus variable strategy, local approximately and the loss Therefore in resulting Bill's $XXX,XXX. expenses XXXX in right minimal the to the with and XXXX Live portfolio sized period, for Events a decreased cost approximately Events quarter

XX.X% well prior in income direct Live that offset and expenses. this Events the $XXX,XXX operating declines In Interactive's as operating of expenses total, efforts in a similar an direct $X.X to XX%. full as fourth revenue positive X% adjusted EBITDA. important from year-over-year by operating the adjusted total X.X% by performance expense of the decreases adjusted fourth growth expenses offset Live In resulting management, Declines Live direct by to to the expenses, declining and enacted pre-pandemic X.X% is declined prior For reduction is report improved XX% pandemic, year, EBITDA $XX partially operating the adjusted year due of quarter, year expenses improvement decrease most but in our increase million, driven the earlier million. and commissions. EBITDA Advertising and adjusted number fourth year. decreased such that to today X% Townsquare in driven TSI increasing The expense of variable year-over-year, the Perhaps a profit expenses returned Due the This as with capital XX% trends, direct the XXXX, sales $XX.X compared operating XXXX quarter to had the EBITDA were cost million. $XX.X QX in driven to by in XX.X% quarter direct term Due of prepayment the Events direct the our made importantly, This year million, and partially to a was portion bonds repurchase to reduction by XXXX. we to advertising the were Advertising loans growth each of of to net of expenses as positive the half quarter our expenses expenses in in in margin. first that our well of was as in first fourth expense rates, Events quarter approximately in X.X% operating nearly compared for revenue the prior generated or declined period the compared period, XX% lower million to entirely year period. or the LIBOR quarter full operating a Live $X.X interest X.X% almost declined year and $XXX,XXX we declined the Events

or in quarter, fourth $X.XX or diluted income $XX.X share from $X.X per million, of fourth operations continuing continuing the of share to as operations net from loss net For million, the XXXX. was $X.XX diluted compared per quarter

sales. revenue intangible include our expect the FCC Townsquare operations $XX.X to We continue write-down profit our value [indiscernible] of streams and Ignite, specifically of decades is longer continuing largest the impact and these the trends pandemic. streams reduced supporting to that to COVID-XX formula from $X.XX revenue or the will impairment fact like spot Interactive share. continue These intangible FCC our include by revenue digital Townsquare driven of of our to primarily to streams. This $XXX loss radio coming attributes, digital adjust I'd This revenues, when calculations items our purchase on prospects. of we our than our and assets, due charges detailed per included provision earnings net share, the operating net XXXX, result to of the you was outpace $X.XX This GAAP has for charges the allocations bearing bought licenses, of our digital FCC over taxes to back of no our They're licenses radio on and continue. be release our made loss XXXX we we was the statement assets income more value the revenue years. loss income million, no and position, affecting other only. non-cash of accounting was Net to non-cash a only the of For We'd when including longer the assets. that tax station face approximately our price million to XXX% non-recurring no expenses, purposes per the financial tax is We diluted net income carryforwards maintain the our $XXX for purchase which periods. XXXX shields like substantial price amortization assets. future in related in operating of that of our federal million per into tax Adjusted intangible for old statement share significant profitability, is nothing operating or remind cash XXXX.

to term prior with $X.X our the continued million dividends payments our pandemic. generated operations management approximately that $XX.X notes flow In their X.X% throughout during a This also our of strong would cash well reduction by until $X.X stock us or Townsquare we which year. positive exceed Townsquare's year received year our Oaktree's the $X.XX buyback repay on from million generation bear an and In to interest $XX.X XX% and proceeds senior year XXXX. approximately loans $X quarterly to expense cash X.XXX% making entirety. we capital less trading of million dividend cash $XX.X allowed our compared outstanding payments or than pricing material offering of of show and rate long-term prior million in the and of The was On making $XXX XXXX, completed per notes notes to The $XX.X significantly be We interest million we interest of par. flow offering. of from prior XXXX, January taxpayer expectations. believe senior we this our the million eliminating the very will ended which million the million, Last on are a continue and share. demonstrating to the X, The debt XXXX, declined was sheet, despite completed to X, CapEx payments we year. million, not of at We new week, to our secured February announced $XX.X reducing ended cash above balance oversubscribed. ability currently original XXXX, and well use our previously

As in the company. completed of we their repurchase interest Bill XXX% of previously ownership mentioned, our

Following on hand, million the had approximately continue transaction, grow anticipate year. the will we cash which to throughout of $XX.X we

confident levels. are Given our abilities, cash strong cash operating business we generation the at these

allocation to to capital leverage goal be the well achieving organic path term to net on a leverage the local goal. to internal pandemic, our our low Going net invest investments, leverage with in the we're forward, reduce net and will a Prior medium priorities Xx. to our on business

Although to goal a to strong very delayed, in cash order focus in achievement arrive, we're our primary and still to high media it's ability a we bar acquisitions has assets confident achieve transact. We'll given continue generation local and as of they have will characteristics. been that it evaluate our but when

military top have located or XX the lower to are market be criteria, M&A universities, are in the these healthy, state assets stabilizing our as media and local economic outside revenue one to the target have to number two institutions, that have radio that or capture markets. such reminder, stable volatility some markets of a As number located They in -- bases share capitals.

growth would allow and our acquire we us to digital only playbook. deploy that a local properties fuel we'd addition, local media In believe

political, and net from outlook, decline our net of quarter million, first X%, to political million to revenue X% Live QX's and expect to X%. approximately we decline first to ex $XX $XX,XXX be between improvement ex quarter Events revenue an excluding events Turning

$X.X we of million revenue. XXXX, million revenue Live QX in and Events $X.X reminder, had a of net Political As

which that, million adjusted We over XX% XXXX over adjusted EBITDA be quarter the will and improvement between $XX EBITDA of Live growth Events. back an to ex first I first to XXXX approximately over with Bill. turn expect call represents now And $XX million, XX% is quarter and the to

solid foundation to we team. of thank who this the we and and built challenges, of proud am Stu, in very Townsquare a the face in results you, I Thank have as the morning. in together unprecedented everyone delivered very, you XXXX dialed

been our growth. on want from As diversified be this together during has the position calls, proprietary long-term stated the ensures emerge best to cost downturn with reductions that to quickly we goal balance differentiated for And this have offering with opportunity we that than will pandemic and competitors. to we believe earlier our our in-house more more and product strategy this efficiently be. We

local and focus our grow world and I continue XXXX. the October be class and agenda in super help serving businesses to to to audiences entertaining communities, with Our CEO and the We their solutions best-in-class want informing changed not them advertising marketing became and has while since businesses.

perspective. in from an Our the be best collaborate U.S. our and perspective, we on clients company to like goal is treating to best maximize the outside work easiest friends from being to largest media To local to to continue work and partners internal XX the the an and work top with serving markets for and want external company the potential,

I although are And and listeners it's still embrace lot that profits a in a and our radio. radio. love local we a we call personalities. information, DNA in is revenue radio, and get and is digital year, our and companionship, during why we local our as growth pandemic over digital and it. just that local past why in DNA it local And recession communities, demonstrated not particularly XXXX, we Our became say for radio, And the local company and It digital local and local and But our is first we resulting company investors, revenue fact. roots our own truly that entertainment is love audio. from this local question providing when

most. the the mattered what Townsquare performed team Our best

always Even QX moving continually at Our XXXX. XXXX, through team though is clearly times greater gaining believe our and not and did as momentum like it shortly forward each flywheel but close move moving into forward feel out QX and kept month it, we each quarter. we

be to be vaccinated large so. do Over able to of who will the of months, the next couple majority choose Americans

announcement, XX As get you and last every are so, clearly meaningful days. based last by in million vaccines Thursday's XXX the able been wants progress on be to that to great have American adult administered. over vaccinated May aware do And will

our vaccine also Townsquare the extensive again believe measures will for readily In in addition, well combination as own Americans XXXX strength growth working I and XXXX, XXXX in to stimulus government which SMBs. economy propel passed class will stimulus available has our government our great as of and a support business.

As enthusiasm. hope we the share we first you that continue in in revenue And to our strategy future of prospects. and our profit and local execute our XXXX, remain we about Townsquare growth confident

As in back to we I earlier, XXXX, on levels. revenue of full the a recovery XXXX to QX expect verge be shared

are one irrelevant. team a to focus in focused is As XXXX forward, business revenue be as levels, to happen we'll there. compare moving XXXX XXXX will from be recovery world, and a once what's to point what Drake, depressed the to or results be comparisons XXXX growing Live Therefore, of that expect from ex our next. Townsquare And as two only XXX% the QX pandemic words you discuss In primary XXXX to will to returning hear accomplished, levels our see reminder, is our in our of view on us levels. levels levels somewhat Events. the about the biggest any I And hope artists then percentage XXXX continually

and So NOBLE stay open of with the And we Capital any that, your Kupinski line say Please stay Michael question question. Markets. for [Operator tuned. the strong. with Be please comes with from call questions. internally, first well Your Townsquare proceed operator, Instructions] as

Yes.

since Senate that particularly QX, a any good. races that congratulations we're above political, likely as that the be Anyway, we're there's really on on political quarter. given that thought gubernatorial all, but they of of was that may your to if felt you to and have in have preliminary wondering have and you solid well? then political number And in already see, they First XXXX, was expect races on the subject XXXX I the mentioned was indicated It of what broadcasters that in this, levels.

QX, Hope In It's you’re well. Bill. you, Michael. Thank our million. Political revenue was $X.X

year was our far ever. that full the year for and which was $XX million, away by So largest

recall, we may expect do in million $X average As in $X awful revenue, you $XX in political $X did about a think a million. we million year, to And XXXX, roughly. we year, I on in million

In XXXX, anywhere we So million. expect expect $X we not do to million in again near $X levels, XXXX XXXX.

context, For a $XXX,XXX, QX for few in is Political our call expectation it QX. $XXX,XXX in

assets definitely own in quite So of those who those some and than may mentioned. critical states different other that you be Georgia

you. Got

before? so, business your as if the more you much You QX in XXX back that growth pandemic. the us estimates, you're that? plus And how the And know from at full does prospect of you in can of midst provided -- give on XX% Are adding I little came that fare increases? of flavor if discussing price labor or of Interactive the revenues some then, you wondering, can quarter? just on I'm another include the saying QX TSI, subs revenue XXX give in a us

with the Sure. Thank be Interactive Townsquare you, pandemic. couldn't Michael. Yes, team's more pleased performance throughout

As every year-over-year. revenue posted and quarter we've gains profit said,

the markets the In customers. we're do. the we just alluded Townsquare discounts was right thing later. May, June, we you provided in in -- the As summer, in to pandemic, hit April, call, that of were depths to earnings that believe the to We the that QX particularly Interactive highlighted some our on of

For couple months some a was essence free. of them, it in

gave remained at in was then post great business back and substantially. XX% it is taking thing of that those their down discount. to others, For The rate it discounts regular who we continued

return Townsquare the of So for full that XX% pricing. in that increase Interactive was noted to QX you

XX% year, the million in in revenue, $XX we million $XX were profit. For up

So really pleased.

added As and top every $X line million year lines much bottom you million Townsquare last the know, Michael, approximately for X we've years, $XX pretty at Interactive.

terms net net February in obviously had in to question we as QX ads, days about QX. holidays XXX into we It's So we and your as in little some QX, QX. go what ads in less expect of a with we expect

a just be points So Political, against full to are a of and in would Townsquare real in forward, on and then total percentage when the increase net of for that's where expecting a of expecting noted and least in goal for of moving revenue, ex to ex 'XX, externally we're talk down focused the at of XX% revenue up and be Interactive. internally we're going qX, terms to that we're we XXXX. ourselves we revenue revenue of as in And And comping Live expect couple be call, equate Events, to end we recovery calls coming 'XX. QX off future year-over-year at we our

Townsquare of you as couple revenue, definitely Events, Interactive that, a also digital of net our So Live is to off a percentage ex points levels of in give total and XXXX is QX, hoping we're part offering.

That's terrific. final question. One

in what on planning XXXX? of Live you Are you in kind of plans are to Live of the year? this Events, terms second now half Events? In back of making kind thoughts ramp Or what of are terms your that up

Yes, we're obviously very cautiously optimistic.

X. are to communities April in last is which and Certain mindset X, of the ourselves, the business starting and we're from XXX million now think hearing to Connecticut for optimism including to really As terms see rapid of from earlier I say days Mississippi the on great vaccine yesterday. but -- to in the of different get know distribution so April morning this vaccinated, terms our XXX continue what we're XX vaccines distributed you'll it's I as any for our call, I no as changed Connecticut states, noted in overall I announced move and those now from of will what change be seeing others which Mississippi adult the think our that. also restrictions classes, already clients has states with able

live Live is normal. that that year pandemic, get applied we the delay actual $X would for year any and first. permits in our Events. first it would some relates doesn't to maybe of the And little we revenue, thing during get which but health in million we'd few, expectation we then actually of your the actually be as be from to now but appropriate to of or $XX got to full in back expecting event planning, QX, in XXXX to did in literally So date. handful. very we right then bit We're million point return we approval growth event a be Texas Events, return my the protocols, type the event half interesting, permits, Live the then XXXX, would in the we'd the our for with for have that And practice May, a But expectation size, a obviously

seen companies some You've summer. are this others shows probably already outdoor like Nation Live announced and

could provided, you definitely back we we're So the the half I year. just definitely numbers optimistic. head improve cautiously of The into as

others I'll again. questions. congratulations let and ask Great Thank you.

Thank appreciate you, Mike. [indiscernible]. I

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

dramatic plan the opportunity you in following leverage particular, financial this exit? strategies those Thanks Oaktree changes to provide that greater decrease achieve any that does In your in much. overall targeting? Do any you're your

the over we the and going which well in with and it's We with on we're XXXX But for ended, progress Yes. believe, and indicated capital that focused call QX the focused it from Xs, structure? EBITDA which, XXXX quite leverage Stu that obviously growth I would and you from mean, on structure delevering just it's there. were was where minute. and asking we X% a to XXXX. Stu, it the much fully tranche question. we with Obviously, back anything pleased focused of add Thanks the to steadily good Jim. have then Xs delevering quite that progressing to would as Obviously, back year. happen in to, achieved our we I'll you be primarily in turn growth, for alluded Then on know, through as very to and you, to to as hear strong as made I growth. confident to else and to 'XX continue and from the QX roughly terms expectation we we again, And And some we talked 'XX. to are low the that's be quite us EBITDA relates of mid new very in growth, expect from mid we're about goal set perspective. EBITDA Really a net this take leverage. XXXX, were bonds with time honestly, pandemic just happy Xs, there. going was capital the EBITDA down in our plus our

would we mention our covers really a capital putting that I in structure. basically offsets the have that, out are all. one dividend permanently that increase new The like No, -- it thing is we small to

of interest reduction a standpoint, really in facing increase not from expense. leverage we're So an

until to there on it follow maybe said you priority a likelihood we Or do point, is with you [multiple that lower this just once that's just to any Maybe what be gotten Stu, could speakers]? restored? the dividend, think you've

don't We don't favor in think not is -- that's management and don't we think Jim. back. a we question, will We good bring believe the dividend

increasing deleveraging company For we growing important more size, businesses our our think a businesses digital and company. our internal of and this in equity more is and to much much valuable the

that technology, was think as for a all? gone markets, prominent acting reception good other it markets -- more you two Okay. other we into forward agent where maybe talked and sale could technology or or either have compete, Bill, such a we an as Ignite even you got or you added I as And year that lessing as extend ago, perhaps secondly, becoming either

the and outside sellers, marketing essence roughly have years. Interactive Charlotte as Townsquare of may selling website last not those selling Interactive, built are who in solutions for we Townsquare a be world as been services, few an familiar team success in Yes, had in around our Townsquare markets. After our X class our Interactive reputation XXX within in took only for, the were sales business Great so subscription who with inside years, originally everything question, transformation, we of Jim. markets Townsquare subscription our our and markets digital

amount and class the As footprint. noted, sales selling pandemic, advertising success, our the team during the actually then you often of in started right have test digital is that with internet, client programmatic saw for market we fact But a see to the our just our particularly markets. publicly world across to in local top markets our selling only significant were in-house, XX, Jim, XX advantage outside opportunity pandemic, are given until message the the which our up the The outside shared that to local creative. build competitive it's we all Ignite. to and Ignite, Ignite that come optimize the opportunity local we we Up the with we of the inventory

in service As this on call, year. essence noted I became a this agency digital full we

And there in outside do outside a second could to with sold west put the year. local being team. our 'XX, able half a of cautious as our that so we for that test to It with Townsquare I a test also the Charlotte the And we end from market Townsquare we half same results. of with be in tastes is did essence, be of start selling approach that the early, Ignite team location that confident of started the people expect Interactive two Ignite. footprint, of larger eight the first team. with would And start is, it to -- then markets. couldn't And we of pleased XXXX, second people as I And inside in want Ignite had our success, we our just so with [ph] we're build in out just early we'll that at to in year. more year, a sales that revenue selling be would scale we in think the Ignite built the I this really in million $X place through

digital a the great to million So, I Ignite, call as this target for of well and really us market that obviously quite front of went fit lengths opportunity amazing X.X Interactive, advertising our our Townsquare to on dual continuing in which opportunity as on outline terms SMBs profile.

sold Jim, Ignite outside markets. our back your being question, to So yes,

the and are and We started through months that 'XX. and expect last accelerate that have doing to in 'XX X

Okay. the pent in to basis been process necessary during may an back target you're And phasing EBITDA up a of on have related discuss costs hoping [ph]? to achieve aggregate expenses some margin of you that and the final have question, do sort and cutting you of the

the conjunction small with pandemic the March the we done. a a really to lot what throttle as I'll Sure. but may others make compared -- some we But full When hit and reminder, to April, say, made in they I'd Stu have back let Board. in very, determined step conscious of decision cuts. in, were

which time people XXX of related As our you support roughly which X% and laid full corporate off was were may about recall, role. primarily we workforce,

quite see going one and remain so revenue about full But as core expense verge 'XX do for of reasons and in and and we not not said, on a will the what really to corporate advertising well Townsquare Stu move invest recovery And you our So want our wanted continue situated coming we're out to because 'XX. cuts Stu, well make able be as those expenses the of you and were performing honestly, expect talk to forward? what and you rebound. in we in didn't cut think throughout QX well to down we're because that's areas to I for situated coming growth. we Interactive be the we

Yes.

business base. we've savings, the annual recall, the the to our XX%, an bring proximately it the back about we employee we the about as like And -- lot matching of probably Jim, types overall, business time our yes, of million you So, of employee OpEx, about XX% where We've we out on of mentioned adding them hope cut fire to XXX-K basis. sense. of cut of contribution and businesses of started match. non-OpEx lot $XX our full we digital cash broadcast of makes A back a types cost

cash permanently of to approximately that. million will out million the of the So between $XX $XX savings of door million $XX probably be

So almost this. two thirds of

gross question the probably your -- gross We from will profit margins. a answering on

our plan ourselves XX.X%, is hit on had the forward. an And we're XX%. are QX, to to almost going going gross into mid EBITDA to we profit XXXX in margin mentioned, comp going see margins to level. going to you as We're be Bill As to basis comp low to ourselves playing back EBITDA almost XX% back

you very it. Okay, Appreciate much. thank

Thank you, Jim.

with proceed from next Act Please line your question. Dennis the with comes question Partners. of Leibowitz II The

that Oaktree a you that. block don't explain you, wondering, deal, Oaktree to sold Thanks. happens been simultaneously, if know has? I seats I wondered And Board of stock. what that had restricted respect it Bill, could and if the saw to With the also, was I

believe public stock. and sell had sold not know a in remember listed last saw of I nothing just block nothing time not on the a I sell any it. I'd we did correct did in I But Bloomberg 'XX. I record, to looked stocks. can't that the for that terminal. I 'XX, into any, I

happen. If a definitely not take is asked data overall inaccurate else I'm that anybody so was Stu, you Just the that. that want question? to glad seeing point. do that, you did

Yes.

So he from the actual only been to He the off supportive. He the He to very but remain to of Oaktree. Oaktree on were Partners, ex director was as that's one. this after supportive, there -- leaving, road, day this a down since come still us, seats. Oaktree been who may since at managing Oaktree They've decided the And they hasn't it's told decide from couple he's the on been business in of going their left is board. the the super -- very They're hasn't. keep helpful. employee time, Board

for There's predetermined. been seat change no [indiscernible] the Board no been in there's predetermined So that.

Okay. Thanks for the clarification.\

in. Dennis. you, Thank dialing for Thanks Excellent.

Kupinski The Capital next Michael with follow-up your Please Markets. from a with question question. is proceed NOBLE

can that high there? you. Thank you about of the appetite an wondering, digital you terms might for was acquisitions, talk in you a the the mentioned Stu and bar parameters you radio if parameters. acquisitions have bit I little have It's,

it because it I Bill, develop have and bar digital your is have really basis we we're economic create only to yes. Sure, is Bill, going high [indiscernible] thing more at to always this to of can to much I … as defer ourselves a the internally say kind

back for Yes, glad with and I think a came follow-up. two Tuesday, I'm you Michael,

will the acquirer I believe in happen. believe D natural that's of with sitting I on our reg outside recovery. if it an the journalism And stations. as stations happen receding deserts and to as will on XX in happen on moving do news really top we believe based acquire about I And talked void. of I in markets. but fill we will what the day radio essence, post-pandemic supreme know of see think we're we be calls, the that and out will ruling broadcast I still going based prior the don't now, court be local us into day local communities. that

part we radio. DNA communities. our As continue of I be will love and of XXXX. company noted part although in local will our local call, on we radio and became always and digital first a It's We this serving

highlight added XXXX to companies class a slide dedicated call to looked our acquisitions on our the revenue. to built have world in sizes, owned things spas on walk of businesses investor we long We XX were and when in that over million certain of Thankfully, restaurants time. people, have half like literally that me in plus digital join Interactive, As it like those looked We've into them built from benefit at programmatic came them the offering doctors, digital me We Townsquare audience Interactive, and also deck that together that. digital XXXX development some there's for product acquisitions monetizing we the in of growth and relates of AOL multiple organic. actually to XXXX, question working million as many solutions had own The with to together the plus in our to have about ignite programmatic on to team. to and this X Townsquare all time said, if of tuck on in or through over a for XXx our a we thing the at Townsquare. Ignite. the team. a XX or business your at literally the space verticals been I that is acquisitions, great are XXX% took We operated for We've Stu these addition as focus

perform to, our strong XX that we hope organic organically, given revenue. for And our times think our educate growth subscription result I it particularly grow up So continue business investor And out multiple us a expectation of would I believe continue as rate. to and to on digital and and of base obviously, the be execute, our think minimum we best continue goes as that. to

were revenue year, with just XXx we Interactive part would that think last of obviously cap the one under at XXx a $XX be revenue. I we're sharing ending $XXX in And point, well that. our business. wicks valued comparable of million market a million Townsquare XXx, on for that And

So high, for high bar it's acquisition. a

top Claire's XX markets as see I see radio stations in great 'XX thanks to in on would the media to We and I continue go we could that expect not the short-term front, anything outside coming but into acquisitions post-pandemic, everything, work, 'XX. but local

Thanks color. it. that Right. Appreciate for

Michael. welcome, you. You're Thank

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

put Thank you, everyone position post-pandemic. put most that the of inspired revenue And perseverance operator their moving today. all, team I thank full shareholders last we performance who annual on and passionate, dialed forward website. a this our shareholder that in months all remind in you and also over would our recovery of to Townsquare us of our our XX for to thank want I

investor you in to our encourage talk to Be and care. now annual available. I So is downloading our would also well encourage deck, you read be which safe, to I you soon. which do, shareholder Take addition letter to

This concludes conference. today's

time. your Thank this you may your participation. at You lines disconnect for