Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q2 2019 Earnings Presentation
23 slides from Iheartmedia's earnings presentation, Aug 15, 2019
Slide 1: Second Quarter 2019
Second Quarter 2019 August 15, 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 1. Emerged from Chapter 11 on May 1, 2019 2. As part of our Plan of Reorganization, separated the Outdoor business; focus exclusively on increasing our lead as the number one audio company in the U.S. 3. Listed as “IHRT” on NASDAQ on July 18, 2019 4. Resilient core busi
Slide 4: iHeartMedia Investment Highlights
iHeartMedia Investment Highlights Audio is hot, it’s a diversified, resilient, and growing market with two distinct growth 01 sectors – Radio for companionship and Music Collection to escape the world 02 Unparalleled reach and engagement create a unique leadership position for iHeartMedia 03 iHeartR
Slide 5: iHeartMedia Has the Greatest Reach and Highest Engagement
iHeartMedia Has the Greatest Reach …And Highest Among All U.S. Media Companies… Engagement US Monthly Reach P6+ (Millions) Daily Time Spent (Minutes) 275 Non Ad‐Enabled 252 :30 217 125 123 119 118 :24 80 71 82M 60 54M 38 26 :18 This image cannot currently be display ed. Source: (1) Digital (Google,
Slide 6: iHeartMedia is America's #1 Audio Media Company
iHeartMedia is America’s #1 Audio Media Company(1) And the Only True Multi-Platform Audio Company Multi‐Platform Audience/Usage (Millions) 6
Slide 7: Using its Multiple Platforms, iHeart is the Only Media Company That Can
Using its Multiple Platforms, iHeart is the Only Media Company That Can: REACH EXTEND EXPLORE CONNECT MOBILIZE AMPLIFY + + + + + 275M 130M 130M 250+ 20K+ 194M Broadcast Listeners Registered Users Monthly Downloads Platforms Events Fans Every Month Through Digital and Streams & Thousands of Across Ma
Slide 8: iHeart has a History of Broadcast Radio Outperformance
iHeart has a History of Broadcast Radio Outperformance LTM Revenue Index to 2010 As Measured by Miller Kaplan in 75‐80 Markets 130.0 LTM Revenue Index to 2010 125.0 125.0 120.0 115.0 History of average annual 110.0 outperformance in Broadcast 105.0 Radio of +200 bps since 2010 100.0 95.0 91.6 90.0 J
Slide 9: Only Nation-Wide Broadcast Radio Footprint – iHeart's Foundational Platform
Only Nation-Wide Broadcast Radio Footprint – iHeart’s Foundational Platform 854 IN 160 OWNED + OPERATED MARKETS S TAT I O N S 1Nielsen Audio/Act1, Average Quarter Hour Persons, 2018 annual average, Adults 18‐49, Monday ‐ Sunday 6:00 AM ‐12:00 AM. Station groups include market stations, except parent
Slide 10: Podcasting is The Newest Strategic Audio Platform
Podcasting is The Newest Strategic Audio Platform #1 Commercial Podcaster In the U.S. Diversifies Revenue; Extends Brand And Listening 150 144 130 50 ▸ iHeart scale accelerates distribution GLOBAL DOWNLOADS & STREAMS (M) 45 125 40 and promotes leadership in new US UNIQUE MONTHLY AUDIENCE (M) 35 cont
Slide 11: 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 12: Q2 '19 Financial Results
Q2 '19 Financial Results: Successor Predecessor Non-GAAP Predecessor $US Dollars in millions Company Company Combined Company Three Months Three Months May 2 - June 30 April 1 - May 1 Ended June 30, Ended June 30, 2019 2019 2019 2018 Variance Revenue $ 635.6 $ 277.7 $ 913.3 $ 891.8 2.4% Direct op ex
Slide 13: YTD Q2 '19 Financial Results
YTD Q2 '19 Financial Results: Successor Predecessor Non-GAAP Predecessor $US Dollars in millions Company Company Combined Company Six Months Ended Six Months Ended May 2 - June 30 January 1 - May 1 June 30, June 30, 2019 2019 2019 2018 Variance Revenue $ 635.6 $ 1,073.5 $ 1,709.1 $ 1,664.5 2.7% Dire
Slide 14: iHeartMedia Revenue Streams
iHeartMedia Revenue Streams: Successor Predecessor Non-GAAP Predecessor $US Dollars in millions Company Company Combined Company Three Months Three Months May 2 - June 30 April 1 - May 1 Ended June 30, Ended June 30, 2019 2019 2019 2018 Variance Revenue Broadcast Radio 390.5 170.6 561.2 569.0 (1.4)%
Slide 15: Political Revenue
Political Revenue: Successor Predecessor Non-GAAP Predecessor $US Dollars in millions Company Company Combined Company Three Months Three Months May 2 - June 30 April 1 - May 1 Ended June 30, Ended June 30, 2019 2019 2019 2018 Variance Revenue Political Revenue Impact: Audio $ 2.7 $ 1.4 $ 4.0 $ 12.1
Slide 16: Capital Expenditures
Capital Expenditures $USD in millions iHeartMedia, Inc. Key Drivers: Six Months Ended June 30, • IT infrastructure and back 2019 2018 $ % office automation • Leasehold improvements Audio $ 44.7 $ 23.9 $ 20.8 87.0% Audio & Media Services 2.1 0.8 1.3 162.5% 2019 Full-Year CapEx Corp 6.8 2.7 4.1 151.9%
Slide 17: Capital
Capital Successor Predecessor Company Company $USD in millions Maturity 6/30/2019 12/31/2018 iHeartCommunications, Inc. Cash and cash equivalents $ 127.2 $ 224.0 Term Loan Facility due 2026(1) 2026 $ 3,498.2 $ — Debtors-in-Possession Facility(2) — — Asset-based Revolving Credit Facility(2) 2023 — —
Slide 18: Appendix
Appendix @ iHeartMEDIA
Slide 19: Q2 2019 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Q2 2019 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA $US Dollars in millions Successor Company Predecessor Company Non-GAAP Combined Predecessor Company Three Months Ended Three Months Ended May 2 - June 30 April 1 - May 1 June 30, June 30, 2019 2019 2019 2018 Net income (loss)
Slide 20: 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 Six Months Ended Six Months Ended May 2 - June 30 Jan 1 - May 1 June 30, June 30, 2019 2019 2019 2018 Net income (loss) $ 38,
Slide 21: Q2 2019 Reconciliation of Revenues excluding Effects of Political Revenue
Q2 2019 Reconciliation of Revenues excluding Effects of Political Revenue to Revenues Predecessor Non-GAAP Predecessor (In thousands) Successor Company Company Combined Company Three Months Three Months May 2 - June 30 April 1 - May 1 Ended June 30, Ended June 30, 2019 2019 2019 2018 Consolidated re
Slide 22: YTD 2019 Reconciliation of Revenues excluding Effects of Political Revenue
YTD 2019 Reconciliation of Revenues excluding Effects of Political Revenue to Revenues Predecessor Non-GAAP Predecessor (In thousands) Successor Company Company Combined Company Six Months Ended Six Months Ended May 2 - June 30 Jan 1 - May 1 June 30, June 30, 2019 2019 2019 2018 Consolidated revenue
Slide 23: 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