Townsquare Media, Inc. · NYSE:TSQ
Townsquare Media — Q2 2020 Earnings Presentation
19 slides from Townsquare Media's earnings presentation, August 2020
Slide 1: Investor Presentation August 2020
Investor Presentation August 2020
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation contains, and our other communications may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Slide 3: Introduction to Townsquare (NYSE: TSQ)
INTRODUCTION TO TOWNSQUARE (NYSE: TSQ) We are the leading multi-platform branded media, digital marketing, and live events company focused primarily on small to mid-sized markets in America Owns and operates market-leading branded media platforms: Diversified multi-channel growth strategy broadcast
Slide 4: Comprehensive Marketing & Advertising Solutions for Local Businesses
COMPREHENSIVE MARKETING & ADVERTISING SOLUTIONS FOR LOCAL BUSINESSES ORGANIC & INORGANIC INITIATIVES Ample value creation opportunities DATASQRD TOWNSQUARE ANALYTICS New solutions leveraging core TOWNSQUARE IGNITE relationships TOWNSQUARE INTERACTIVE LIVE EVENTS: ON-SITE ACTIVATION O&O DIGITAL SOLUT
Slide 5: Small and Mid-Sized Market Strategy
SMALL AND MID-SIZED MARKET STRATEGY Townsquare operates in 67 small and mid-sized markets across the US, with virtually no presence in the top 50 markets Average Townsquare market population ~300K (50K – 1M) Advertisers Seek Middle America Consumers
Slide 6: August 10, 2020 Earnings Call Highlights
AUGUST 10, 2020 EARNINGS CALL HIGHLIGHTS ✓2020 started off on a strong note, with pro forma net revenue increasing +6% and +7% in January and February, respectively, but beginning in March, business materially declined related to the COVID-19 pandemic ✓Q2 2020 net revenue declined 34.5% to $74.1 mil
Slide 7: August 10, 2020 Earnings Call Highlights (Cont'd)
August 10, 2020 EARNINGS CALL HIGHLIGHTS (CONT’D) ✓Townsquare has taken a number of actions in order to solidify its liquidity position, and ended Q2 with $70 million of cash ✓In Q2, repaid $65 million of debt: 100% of the amount borrowed under its $50 million Revolving Credit Facility, $9.9 million
Slide 8: Q2 Segment Financial Results
Q2 SEGMENT FINANCIAL RESULTS Actual $ in millions Q2 2019 Q2 2020 Growth % Advertising net revenue $91.5 $57.1 -37.5% Advertising net revenue ex. political $91.0 $56.3 -38.2% Advertising Adj. Operating Income $30.9 $4.6 -85.2% Advertising Margin % 33.7% 8.0% TSI net revenue $15.3 $16.9 10.5% TSI Adj
Slide 9: YTD June Segment Financial Results
YTD JUNE SEGMENT FINANCIAL RESULTS Actual Pro Forma $ in millions YTD 2019 YTD 2020 Growth % YTD 2019 YTD 2020 Growth % Advertising net revenue $165.8 $131.7 -20.6% $165.8 $131.7 -20.6% Advertising net revenue ex. $165.0 $129.5 -21.5% $165.0 $129.5 -21.5% political Advertising Adj. Operating Income
Slide 10: Balance Sheet, Liquidity & Ownership
Balance Sheet, Liquidity & Ownership Capital Allocation Priorities Ownership (as of 8/7/20) # of ▪ Due to the economic uncertainty related to the COVID-19 (shares in millions) Votes Primary Holders pandemic, we plan to preserve our cash balance to enhance our financial flexibility Class A Common Sto
Slide 11: Business Overview
townsquare Business Overview
Slide 12: The Power of Our Brands and Talent
THE POWER OF OUR BRANDS AND TALENT Key Stats Townsquare owns and operates market leading media platforms: broadcast radio, digital, video, social and streaming 321 radio stations 330+ local, community websites Original content and influential local media personalities drive deep, multi-platform audi
Slide 13: Townsquare Ignite
TOWNSQUARE IGNITE (PROGRAMMATIC DIGITAL ADVERTISING) Townsquare Ignite is an effective and efficient advertising solution that enhances our local market presence, brands and trusted relationships with sophisticated precision in-house audience targeting solutions Townsquare Ignite is our proprietary
Slide 14: Townsquare Interactive
TOWNSQUARE INTERACTIVE (TSI) (DIGITAL MARKETING SOLUTIONS) TSI is a leading provider of digital marketing solutions to SMBs interactive TSI provides a wide array of digital services for a recurring monthly subscription fee, including: Key Stats (1) >$70M annual run-rate net revenue (2) Website desig
Slide 15: Borrell Associates Singles Out Townsquare as Top Digital Performer
LEADING RESEARCH FIRM, BORRELL ASSOCIATES, SINGLES OUT TOWNSQUARE AS TOP DIGITAL PERFORMER “ Borrell singles out Townsquare as the top digital performer in the radio Townsquare’s digital ventures are ” business and one of the leading digital fast-growing and impressive companies across all of local
Slide 16: Borrell Associates Singles Out Townsquare as Top Digital Performer
LEADING RESEARCH FIRM, BORRELL ASSOCIATES, SINGLES OUT TOWNSQUARE AS TOP DIGITAL PERFORMER Percentage of Ad Revenue from Digital Sales for U.S. & Canadian Local Media Companies, 2018 Company % from Digital Advertising Company % from Digital Advertising Hibu U.S (yellow Pages) 74.7% Tribune (newspape
Slide 17: Live Events
LIVE EVENTS ▪ As a result of the COVID-19 pandemic, we have postponed or cancelled a large number of our live events in 2020, which has significantly impacted on our Live Events revenue ▪ Largely variable expense base helps offset the negative revenue impact ▪ Live events are a natural extension of
Slide 18: Small and Mid-Sized Market Strategy Is a Competitive Advantage
SMALL AND MID-SIZED MARKET STRATEGY IS A COMPETITIVE ADVANTAGE Townsquare operates in 67 small and mid-sized markets across the US, with virtually no presence in the top 50 markets More attractive competitive landscape Limited focus from larger media players Starved for high quality media and entert
Slide 19: Townsquare
townsquare