Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q4 2019 Earnings Presentation
20 slides from Iheartmedia's earnings presentation, Feb 27, 2020
Slide 1: Fourth Quarter 2019
Fourth Quarter 2019 February 27, 2020
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: IHRT Q4 and FY 2019 Financial Highlights
IHRT Q4 and FY 2019 Financial Highlights ▪ Strong performance in the fourth quarter and full year '19 was driven by growth in our Digital, Networks and Sponsorships revenue streams ▪ In Q4’19, consolidated revenue was flat on a reported basis; grew 4.3% excluding political – Digital grew 33.6% drive
Slide 4: iHeartMedia Full-Year 2020 Financial Guidance
iHeartMedia Full-Year 2020 Financial Guidance ▪ Mid-single digit revenue growth driven by: – Strong outlook for political ad-spend in presidential election year – Continued momentum in fast-growing Digital business driven by podcasting – Stability in traditional radio business continues to drive out
Slide 5: IHRT's Multiplatform Leadership Drives Shareholder Value
IHRT’s Multiplatform Leadership Drives Shareholder Value 5
Slide 6: Investments in Modernization Will Drive Value-Creation for IHRT Shareholders
Investments in Modernization Will Drive Value-Creation for IHRT Shareholders ▪ IHRT’s modernization is a multi-pronged set of strategic initiatives aimed at creating efficiencies that will position the company for sustainable, long-term growth and drive shareholder value ▪ Our investment in moderniz
Slide 7: Capital Structure Evolution
Capital Structure Evolution ▪ A key component of IHRT’s ability to deliver shareholder value is its clear path and commitment to de-leveraging ▪ Since IHRT’s emergence in May 2019, we have made significant improvements to our capital structure on our path to de-leveraging – Reduced leverage from 5.8
Slide 8: Q4 '19 Financial Results
Q4 '19 Financial Results: $US Dollars in millions Successor Company Predecessor Company Three Months Ended Three Months Ended December 31, December 31, 2019 2018 Variance Revenue $ 1,026.1 $ 1,026.3 —% Direct operating expenses 332.1 288.9 15.0 % SG&A expenses 368.3 373.2 (1.3)% Corporate expenses 6
Slide 9: Full Year 2019 Financial Results
Full Year 2019 Financial Results: Predecessor Non-GAAP Predecessor $US Dollars in millions Successor Company Company Combined Company Year Ended Year Ended May 2 - Dec 31 January 1 - May 1 December 31, December 31, 2019 2019 2019 2018 Variance Revenue $ 2,610.1 $ 1,073.5 $ 3,683.5 $ 3,611.3 2.0 % Di
Slide 10: iHeartMedia Revenue Streams
iHeartMedia Revenue Streams: Predecessor $US Dollars in millions Successor Company Company Three Months Ended Three Months Ended December 31, December 31, 2019 2018 Variance Revenue Broadcast Radio 611.8 628.5 (2.7)% Digital 112.5 84.2 33.6 % Networks 160.1 156.7 2.2 % Sponsorship and Events 71.9 68
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 December 31, December 31, 2019 2018 Variance Revenue Political Revenue Impact: Audio Segment $ 9.5 $ 32.3 $ (22.8) Audio & Media Svs Segment 4.1 23.4 (19.3) Total
Slide 12: Capital Expenditures
Capital Expenditures $USD in millions Key Drivers: iHeartMedia, Inc. • IT infrastructure and back office Year Ended December 31, automation 2019 2018 Variance • Leasehold improvements Audio $ 93.2 $ 72.4 $ 20.8 Audio & Media Services 5.3 5.9 (0.6) 2020 Full-Year CapEx Guidance Corp 13.7 6.9 6.8 • $1
Slide 13: Debt
Debt Successor Company Predecessor Company $USD in millions Maturity 12/31/2019 12/31/2018 iHeartCommunications, Inc. Cash and cash equivalents $ 400.3 $ 224.0 Term Loan Facility due 2026(1)(3)(5) 2026 $ 2,251.3 $ — Debtors-in-Possession Facility(2) — — (2) Asset-based Revolving Credit Facility 2023
Slide 14: Appendix
Appendix @ iHeartMEDIA
Slide 15: Q4 2019 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Q4 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 December 31, December 31, 2019 2018 Net income $ 62,132 $ 224,908 Income from discontinued operations, net of tax — (42,301) I
Slide 16: Full Year 2019 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Full Year 2019 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA $US Dollars in millions Successor Company Predecessor Company Non-GAAP Combined Predecessor Company Year Ended Year Ended May 2 - Dec 31 Jan 1 - May 1 December 31, December 31, 2019 2019 2019 2018 Net income (loss) $ 11
Slide 17: Full Year 2019 and Q4 2019 Reconciliation of Free Cash Flow
Full Year 2019 and Q4 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 December 31, December 31, 2019 2018 Cash provided by o
Slide 18: Q4 2019 Reconciliation of Revenues excluding Effects of Political Revenue
Q4 2019 Reconciliation of Revenues excluding Effects of Political Revenue to Revenues (In thousands) Successor Company Predecessor Company Three Months Ended Three Months Ended December 31, December 31, 2019 2018 Consolidated revenue $ 1,026,072 $ 1,026,295 Excluding: Political revenue (13,654) (55,
Slide 19: Full Year 2019 Reconciliation of Revenues excluding Effects of Political Revenue
Full Year 2019 Reconciliation of Revenues excluding Effects of Political Revenue to Revenues Predecessor Predecessor (In thousands) Successor Company Company Non-GAAP Combined Company Year Ended Year Ended May 2 - Dec 31 Jan 1 - May 1 December 31, December 31, 2019 2019 2019 2018 Consolidated revenu
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