Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q4 2021 Earnings Presentation
26 slides from Iheartmedia's earnings presentation, Feb 23, 2022
Slide 1: Fourth Quarter 2021 Investor Presentation
Fourth Quarter 2021 Investor Presentation February 23, 2022 NASDAQ: IHRT
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: Executive Summary
Executive Summary Ø Q4 2021 Consolidated Results ▪ Q4 Revenue of $1,062 million up 14% YoY; exceeding prior guidance of up approximately 10% ◦ Excluding the impact of Political, Q4 revenue was up 25% YoY ◦ Q4 2021 Consolidated Revenue up 3.5% vs Q4 2019 ▪ Consolidated Adjusted EBITDA of $294 million
Slide 4: Segment Reporting: 2021 Q4 Results
Segment Reporting: 2021 Q4 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % $US Dollars in millions Three Months Ended December 31, 2021 Three Months Ended December 31, 2021 2021 2020 % Chg 2021 2020 % Chg Q4 2021 Q4 2020 Q3 2021 Q2 2021 Multiplatform Group $ 726.3 $ 665.0 9.2 % $ 248.7 $ 20
Slide 5: Continued Strong Digital Growth Directly Translating to Revenue Mix Shift
Continued Strong Digital Growth Directly Translating to Revenue Mix Shift Q1 2019 Q4 2021 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $796MM) (% Composition1) (Total $1,062MM) Audio Media Audio Media 6% 6% Services Services Podcast 1% Digital Audio 10% Podcast 9% Group Digital
Slide 6: iHeart Has the Only Total Audio Media Ecosystem
iHeart Has the Only Total Audio Media Ecosystem CONTENT DISTRIBUTION TECHNOLOGY Broadcast & Digital Hosting/Infrastructure, Data, Monetization, and Measurement Radio Stations & Station Websites Events (Local & National) Networks Email Newsletters and iHeart Websites Personalities 860+ O&O Broadcast
Slide 7: LTM Revenue Index to 2010
7 LTM Revenue Index to 2010 100.0 120.0 140.0 20.0 40.0 - 60.0 80.0 Jan-10 May-10 Sep-10 Jan-11 May-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jul-13 Nov-13 Mar-14 Source: Miller Kaplan as of December 2021, Broadcast and Network Radio Gross Revenue Jul-14 Nov-14 Apr-15 Aug-15 Dec-15 Industry ex-iHM Apr-1
Slide 8: Outperforming Quarterly YoY Revenue Growth: MAGNA Digital Ex-Podcast
Outperforming Quarterly YoY Revenue Growth MAGNA Digital Ex-Podcast 125% 100% 75% 50% +36% 25% +20% Industry 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 -25% 8 Source: MAGNA US Media Forecast Dec 2021, MAGNA Digital Ex-Podcast includes: Audio (ex-podcast), Social, Display, Video, Search, and Other (i
Slide 9: Outperforming Quarterly YoY Revenue Growth: MAGNA Podcast
Outperforming Quarterly YoY Revenue Growth MAGNA Podcast 200% 160% 120% +130% 80% 40% +30% Industry 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 9 Source: MAGNA US Media Forecast Dec 2021
Slide 10: iHeartPodcast Network's Audience Has Grown 10X Faster Than Closest Competitors
iHeartPodcast Network’s Audience Has Grown 10X Faster than Its Closest Competitors Since 2019 Growth vs 2019 Podtrac U.S. Unique Monthly Podcast Audience +104% 30 M 25 M +11% 20 M 15 M +57% 10 M +46% 5M 0M 10 Source: Podtrac Rankings, Jan 2019 – Jan 2022
Slide 11: And Leading Podcast Publisher Across All Podtrac Categories
And Leading Podcast Publisher Across All Podtrac Categories Most Shows In Podtrac Most Shows In Podtrac Most Shows RANKING THE TOP 10 by category 1MM+ LISTENS 116 41 46 35 18 19 25 13 17 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 19 consecutive months
Slide 12: iHeartRadio is the #1 Podcast Publisher in the US
iHeartRadio is the #1 Podcast Publisher in the US with More Downloads than the Next 4 Publishers Combined PODCAST PUBLISHER MONTHLY DOWNLOADS MONTHLY AUDIENCE 422,467,000 30,320,000 173,120,000 19,881,000 74,138,000 11,360,000 99,935,000 10,015,000 55,266,000 8,007,000 48,483,000 7,427,000 37,997,00
Slide 13: Q4 '21 Financial Results
Q4 '21 Financial Results Three Months Three Months Ended Ended $US Dollars in millions December 31, September 30, 2021 2020 Variance 2021 Revenue $ 1,062.0 $ 935.5 13.5 % $ 928.1 Direct operating expenses 385.6 328.9 17.2 % 325.8 SG&A expenses 414.3 376.8 10.0 % 390.1 Depreciation & amortization 126
Slide 14: FY 2021 Financial Results
FY 2021 Financial Results Year Ended $US Dollars in millions December 31, 2021 2020 Variance Revenue $ 3,558.3 $ 2,948.2 20.7 % Direct operating expenses 1,324.7 1,137.8 16.4 % SG&A expenses 1,519.4 1,395.0 8.9 % Depreciation & amortization 469.4 402.9 16.5 % Impairment charges 57.7 1,738.8 Other op
Slide 15: iHeartMedia Q4 Revenue Streams
iHeartMedia Q4 Revenue Streams Three Months Ended $US Dollars in millions December 31, 2021 2020 Variance Revenue Broadcast Radio $ 519.1 $ 494.7 4.9 % Networks 136.5 135.1 1.0 % Sponsorship and Events 66.7 34.6 92.7 % Other 4.0 0.6 524.3 % Multiplatform Group $ 726.3 $ 665.0 9.2 % Digital ex. Podca
Slide 16: iHeartMedia FY 2021 Revenue Streams
iHeartMedia FY 2021 Revenue Streams Year Ended $US Dollars in millions December 31, 2021 2020 Variance Revenue Broadcast Radio $ 1,812.3 $ 1,604.9 12.9 % Networks 503.1 485.0 3.7 % Sponsorship and Events 160.3 107.7 48.9 % Other 13.4 9.4 42.9 % Multiplatform Group $ 2,489.0 $ 2,206.9 12.8 % Digital
Slide 17: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended $US Dollars in millions December 31, 2021 2020 Variance Revenue Political Revenue Impact: Multiplatform Group $ 6.9 $ 50.5 $ (43.6) Digital Audio Group 0.8 3.7 (2.9) Audio & Media Services Group 2.8 40.8 (38.0) Total $ 10.5 $ 95.1 $ (84.5) Year
Slide 18: Capital Expenditures
Capital Expenditures $USD in millions Year Ended December 31, 2021 2020 Variance Multiplatform Group $ 130.9 $ 51.5 $ 79.4 Digital Audio Group 23.9 16.1 7.8 Audio & Media Services Group 14.5 5.1 9.4 Corporate 14.1 12.5 1.6 Total Gross Capital Expenditures $ 183.4 $ 85.2 $ 98.2 Proceeds from Real Est
Slide 19: Debt
Debt December 31, December 31, $USD in millions Maturity 2021 2020 iHeartCommunications, Inc. Cash and cash equivalents $ 352.1 $ 720.7 Term Loan Facility due 2026 2026 $ 1,864.0 $ 2,080.3 Incremental Term Loan Facility due 2026 2026 401.2 447.8 Asset-based (1) Revolving Credit Facility 2023 — — 6.3
Slide 20: Appendix
20 Appendix MEDIA
Slide 21: Segment Reporting: FY 2021 Results
Segment Reporting: FY 2021Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % $US Dollars in millions Year Ended December 31, 2021 Year Ended December 31, 2021 2021 2020 % Chg 2021 2020 % Chg 2021 2020 Multiplatform Group $ 2,489.0 $ 2,206.9 12.8 % $ 743.3 $ 483.4 53.8 % 29.9 % 21.9 % Digital A
Slide 22: Q4 2021 and FY 2021 Reconciliation of Free Cash Flow
Q4 2021 and FY 2021 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities Three Months Three Months Ended Ended (In thousands) December 31, September 30, 2021 2020 2021 Cash provided by operating activities $ 133,980 $ 79,784 $ 95,736 Purchases of property, plant and equipment (8
Slide 23: Q4 2021 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q4 2021 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Three Months Ended Ended $US Dollars in thousands December 31, September 30, 2021 2020 2021 Net income (loss) $ 111,954 $ 2,943 $ 3,673 Income tax (benefit) expense (68,846) 25,858 (27,147) Interest expense, net 79,895 86,
Slide 24: FY 2021 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
FY 2021 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Year Ended $US Dollars in thousands December 31, 2021 2020 Net loss $ (158,389) $ (1,915,222) Income tax (benefit) expense 8,391 (183,623) Interest expense, net 332,384 343,745 Depreciation and amortization 469,417 402,929 EBITDA $ 651
Slide 25: Q4 2021 and FY 2021 Reconciliation of Revenue Excluding Political
Q4 2021 and FY 2021 Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue Three Months Ended Year Ended (In thousands) December 31, December 31, 2021 2020 2021 2020 Consolidated revenue $ 1,062,019 $ 935,530 $ 3,558,340 $ 2,948,218 Excluding: Political revenue (10,548) (95,097)
Slide 26: About iHeartMedia, Inc.
About iHeartMedia, Inc. iHeartMedia (Nasdaq: IHRT) is the number one audio company in the United States, reaching nine out of 10 Americans every month. It consists of three business groups. With its quarter of a billion monthly listeners, the iHeartMedia Multiplatform Group has a greater reach than