Slide 1: Third Quarter 2019
Third Quarter 2019 November 7, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward Looking Language Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors
Slide 3: iHeartMedia Executive Summary
iHeartMedia Executive Summary Q3 Financial Highlights include: ▪ Listed as “IHRT” on NASDAQ on July 18, 2019 ▪ Resilient Broadcast and Networks revenue streams; fast-growing Digital revenue ▪ Strong free cash flow will drive de-leveraging ▪ Consolidated revenue grew by 3.0% on a reported basis; 4.9%
Slide 4: Stable and Growing Traditional Radio Business
Stable and Growing Traditional Radio Business ▪ Broadcast and Networks together represent our traditional radio business which is stable and growing. In the third quarter: ▪ Broadcast revenue grew +0.4% excluding impact of political revenue ▪ Growth at Networks grew +9.2% year-over-year and accelera
Slide 5: Fast-Growing Digital Driven by Podcasting Leadership
Fast-Growing Digital Driven by Podcasting Leadership ▪ iHeart platform has highly-differentiated strategic advantages in podcasting ▪ Clear #1 commercial podcast publisher; only NPR has similar scale overall ▪ Ideally positioned to expand podcast audiences via unique cross-promotion capabilities as
Slide 6: Investing in IT / Tech to Drive Cost Efficiencies and Future Growth
Investing in IT / Tech to Drive Cost Efficiencies and Future Growth ▪ We continue to invest in initiatives that will create sustainable revenue growth and streamline and drive efficiencies, driving higher margins ▪ Maintenance capex is ~$30-$40 million per year ▪ $80-$90 million of estimated $110-$1
Slide 7: Robust Free Cash Flow Drives Powerful De-Leveraging
Robust Free Cash Flow Drives Powerful De-Leveraging …Drives De-Leveraging, Attractive Business Model… Increasing Shareholder Value • Core broadcast and network revenues remain • Robust free cash flow generation stable Resilient & Growing • Track record of broadcast radio industry drives de-leveragin
Slide 8: Q3 '19 Financial Results
Q3 '19 Financial Results: $US Dollars in millions Successor Company Predecessor Company Three Months Ended Three Months Ended September 30, September 30, 2019 2018 Variance Revenue $ 948.3 $ 920.5 3.0% Direct operating expenses 291.0 268.6 8.3% SG&A expenses 341.4 329.4 3.6% Corporate expenses 70.0
Slide 9: YTD Q3 '19 Financial Results
YTD Q3 '19 Financial Results: Predecessor Non-GAAP Predecessor $US Dollars in millions Successor Company Company Combined Company Nine Months Ended Nine Months Ended May 2 - Sept 30 January 1 - May 1 September 30, September 30, 2019 2019 2019 2018 Variance Revenue $ 1,584.0 $ 1,073.5 $ 2,657.5 $ 2,5
Slide 10: iHeartMedia Revenue Streams
iHeartMedia Revenue Streams: Predecessor $US Dollars in millions Successor Company Company Three Months Ended Three Months Ended September 30, September 30, 2019 2018 Variance Revenue Broadcast Radio 573.0 576.5 (0.6)% Digital 96.7 72.4 33.4% Networks 160.1 146.6 9.2% Sponsorship and Events 55.5 53.
Slide 11: Political Revenue Impact by Segment
Political Revenue Impact by Segment: Predecessor $US Dollars in millions Successor Company Company Three Months Ended Three Months Ended September 30, September 30, 2019 2018 Variance Revenue Political Revenue Impact: Audio Segment $ 5.6 $ 11.5 $ (5.9) Audio & Media Svs Segment 1.6 11.6 (10.0) Total
Slide 12: Capital Expenditures
Capital Expenditures $USD in millions Key Drivers: iHeartMedia, Inc. • IT infrastructure and back office Nine Months Ended September 30, automation 2019 2018 Variance • Leasehold improvements Audio $ 68.4 $ 40.8 $ 27.6 Audio & Media Services 4.1 2.5 1.6 2019 Full-Year CapEx Guidance Corp 10.0 4.2 5.
Slide 13: Debt
Debt Successor Company Predecessor Company $USD in millions Maturity 9/30/2019 12/31/2018 iHeartCommunications, Inc. Cash and cash equivalents $ 277.1 $ 224.0 Term Loan Facility due 2026(1) 2026 $ 2,757.4 $ — Debtors-in-Possession Facility(2) — — Asset-based Revolving Credit Facility(2) 2023 — — 6.3
Slide 14: Appendix
Appendix @ iHeartMEDIA
Slide 15: Q3 2019 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Q3 2019 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA $US Dollars in millions Successor Company Predecessor Company Three Months Ended Three Months Ended September 30, September 30, 2019 2018 Net income $ 12,374 $ 71,783 Loss from discontinued operations, net of tax — 49,491 Inco
Slide 16: YTD 2019 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
YTD 2019 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA $US Dollars in millions Successor Company Predecessor Company Non-GAAP Combined Predecessor Company Nine Months Ended Nine Months Ended May 2 - Sept 30 Jan 1 - May 1 September 30, September 30, 2019 2019 2019 2018 Net income
Slide 17: Q3 2019 Reconciliation of Free Cash Flow from Continuing Operations
Q3 2019 Reconciliation of Free Cash Flow from Continuing Operations to Cash Provided by Operating Activities from Continuing Operations (In thousands) Successor Company Predecessor Company Three Months Ended Three Months Ended September 30, September 30, 2019 2018 Cash provided by operating activiti
Slide 18: Q3 2019 Reconciliation of Revenues excluding Effects of Political Revenue
Q3 2019 Reconciliation of Revenues excluding Effects of Political Revenue to Revenues (In thousands) Successor Company Predecessor Company Three Months Ended Three Months Ended September 30, September 30, 2019 2018 Consolidated revenue $ 948,338 $ 920,492 Excluding: Political revenue (7,151) (23,125
Slide 19: YTD 2019 Reconciliation of Revenues excluding Effects of Political Revenue
YTD 2019 Reconciliation of Revenues excluding Effects of Political Revenue to Revenues Predecessor Predecessor (In thousands) Successor Company Company Non-GAAP Combined Company Nine Months Ended Nine Months Ended May 2 - Sept 30 Jan 1 - May 1 September 30, September 30, 2019 2019 2019 2018 Consolid
Slide 20: About iHeartMedia, Inc.
About iHeartMedia, Inc. iHeartMedia, Inc. (NASDAQ: IHRT) is the number one audio company in America based on consumer reach. The company's leadership position in audio extends across multiple platforms, including more than 850 live broadcast stations; its iHeartRadio service available across more th