Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q4 2020 Earnings Presentation
23 slides from Iheartmedia's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter 2020 Investor Presentation
Fourth Quarter 2020 Investor Presentation February 25, 2021
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 Results: Strong Sequential Patterns Continue ▪ Q4 Revenue of $936 million down 9% YoY, improving from down 22% YoY in Q3 and 47% YoY in Q2; a substantial increase from $744 million in Q3 ▪ Q4 Revenue benefited from strong digital growth of 53% YoY (Podcast Revenue increased 10
Slide 4: Digital Audio Business to Report Separate Segment Financial Results Starting in Q1 2021
Digital Audio Business to Report Separate Segment Financial Results Starting in Q1 2021 ▪ Our Digital Audio business will operate as iHeartMedia Digital Audio Group ▪ Our industry leading broadcast radio business will be part of iHeartMedia Multiplatform Group ▪ New structure highlights unique finan
Slide 5: New 2021 Segment Reporting: 2020 and 2019 Q4 and Full Year Results
New 2021 Segment Reporting: 2020 and 2019 Q4 and Full Year Results (In millions) Revenue Adjusted EBITDA Margin % Segment 2020 2019 % Change 2020 2019 % Chg 2020 2019 Multiplatform Audio Group $ 665 $ 849 (22)% $ 206 $ 307 (33)% 31% 36% Digital Audio Group 172 112 53% 61 35 74% 35% 31% Q4 Audio & Me
Slide 6: iHeart Has Strategically Created the Best-in-Class Audio Technology Ecosystem
01 iHeart is the only Audio Media company possessing a combination of next generation solutions for broadcast and cutting-edge capabilities for digital This is the result of a targeted and patient multi-year strategy to create a iHeart Has uniquely best-in-class media machine with three prongs (1) c
Slide 7: iHeartMedia Has Executed a Multi-Year Strategy to Create a Synergistic Full-Stack Audio Media Company
iHeartMedia Has Executed a Multi-Year Strategy to Create a Synergistic Full-Stack Audio Media Company Consisting of (1) Content, (2) Distribution, and (3) Technology… 7
Slide 8: Content, Distribution and Technology
Content (—_ @iHeartPODCAST — = of He ms} Ps Vr Radio Stations & Station Websites 400 ist om TH BY Networks @inteartsPoRTs = premiere NETWORKS CK = Attic newon Total Trafic Ko iHeartMedia Total Audio Media Ecosystem Broadcast & Digital Events (Local & National) Om PikteartRAoio Vita FIESTA @ eine Ema
Slide 9: IHRT is Positioned to be Resilient with Streamlined Cost Structure
IHRT is Positioned to be Resilient with Streamlined Cost Structure Delivering Sustained Long-Term Margin Improvement ▪ We took early actions to focus on aggressive cost management and maximizing liquidity to be prepared for a potential protracted recovery ▪ Our modernization and other cost saving in
Slide 10: Q4 '20 Financial Results
Q4 '20 Financial Results $US Dollars in millions Successor Company Successor Company Three Months Ended Three Months Ended December 31, September 30, 2020 2019 Variance 2020 Revenue $ 935.5 $ 1,026.1 (8.8)% $ 744.4 Direct operating expenses 334.9 363.4 (7.8)% 276.7 SG&A expenses 327.2 350.3 (6.6)% 2
Slide 11: Full Year 2020 Financial Results
Full Year 2020 Financial Results Successor Successor Predecessor Non-GAAP $US Dollars in millions Company Company Company Combined Year Ended May 2 - Year Ended December 31, December 31, January 1 - May 1, December 31, 2020 2019 2019 2019 Variance Revenue $ 2,948.2 $ 2,610.1 $ 1,073.5 $ 3,683.5 (20.
Slide 12: iHeartMedia Revenue Streams
iHeartMedia Revenue Streams $US Dollars in millions Successor Company Three Months Ended December 31, 2020 2019 Variance Revenue Broadcast Radio $ 494.7 $ 611.8 (19.1)% Digital 172.2 112.5 53.0 % Networks 135.1 160.1 (15.6)% Sponsorship and Events 34.6 71.9 (51.8)% Audio and Media Services 100.2 66.
Slide 13: Political Revenue Impact by Segment
Political Revenue Impact by Segment $US Dollars in millions Successor Company Three Months Ended December 31, 2020 2019 Variance Revenue Political Revenue Impact: Audio Segment $ 54.3 $ 9.5 $ 44.8 Audio & Media Svs Segment 40.8 4.1 36.7 Total $ 95.1 $ 13.7 $ 81.4 Successor Successor Predecessor Non-
Slide 14: Capital Expenditures
Capital Expenditures $USD in millions Key Drivers: • Reduction driven by cost-savings Year Ended December 31, initiatives 2020 2019 Variance • IT infrastructure and back office Audio $ 73.9 $ 93.2 $ (19.3) automation Audio & Media Services 5.1 5.3 (0.2) • Leasehold improvements Corp 6.2 13.7 (7.5) T
Slide 15: Debt
Debt Successor Company December 31, December 31, $USD in millions Maturity 2020 2019 Cash and cash equivalents $ 720.7 $ 400.3 Term Loan Facility due 2026(1) 2026 $ 2,080.3 $ 2,251.3 (2) Incremental Term Loan Facility due 2026 2026 447.8 — Asset-based Revolving Credit Facility(2)(3) 2023 — — 6.375%
Slide 16: Appendix
Appendix @ iHeartMEDIA
Slide 17: Q4 2020 and Full Year 2020 Reconciliation of Free Cash Flow
Q4 2020 and Full Year 2020 Reconciliation of Free Cash Flow from (used for) Continuing Operations to Cash Provided by Operating Activities provided by (user for) Continuing Operations (In thousands) Successor Company Three Months Three Months Ended Ended December 31, September 30, 2020 2019 2020 Cas
Slide 18: Q4 2020 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Q4 2020 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA $US Dollars in millions Successor Company Three Months Three Months Ended Ended December 31, September 30, 2020 2019 2020 Net income (loss) $ 2,943 $ 62,132 $ (32,112) Income tax benefit (expense) 25,858 (12,670) (15,228) Inte
Slide 19: Full Year 2020 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Full Year 2020 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Successor Successor Predecessor Non-GAAP $US Dollars in millions Company Company Company Combined Year Ended May 2 - Year Ended December 31, December 31, Jan 1 - May 1, December 31, 2020 2019 2019 2019 Net income (loss)
Slide 20: Q4 2020 Reconciliation of Revenue Excluding Effects of Political Revenue
Q4 2020 Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue (In thousands) Successor Company Three Months Ended December 31, 2020 2019 Consolidated revenue $ 935,530 $ 1,026,072 Excluding: Political revenue (95,097) (13,654) Consolidated revenue excluding effects of political
Slide 21: Full Year 2020 Reconciliation of Revenue excluding Effects of Political Revenue
Full Year 2020 Reconciliation of Revenue excluding Effects of Political Revenue to Revenue Successor Successor Predecessor Non-GAAP (In thousands) Company Company Company Combined Year Ended May 2 - Year Ended December 31, December 31, January 1 - May 1, December 31, 2020 2019 2019 2019 Consolidated
Slide 22: Q4 2020 Reconciliation of Digital Revenue Excluding Effects of Podcast Revenue
Q4 2020 Reconciliation of Digital Revenue Excluding Effects of Podcast Revenue to Digital Revenue (In thousands) Successor Company Three Months Ended December 31, 2020 2019 Digital revenue $ 172,168 $ 112,495 Excluding: Podcast revenue (41,960) (21,002) Digital revenue excluding effects of podcast r
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