Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q3 2020 Earnings Presentation
20 slides from Iheartmedia's earnings presentation, Nov 9, 2020
Slide 1: Third Quarter 2020 Investor Presentation
Third Quarter 2020 Investor Presentation November 9, 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: Executive Summary
Executive Summary ▪ Q3 Financial Performance Lower YoY, but Substantially Improved from Q2 Levels • Revenue of $744M up 53% sequentially, moving from down 47% YoY in Q2 to down 22% YoY in Q3 • Adjusted EBITDA of $162M down 41% YoY; substantial increase from Q2 level of $(29)M • Positive Free Cash Fl
Slide 4: Our Results Validate Our Multi-Platform Product & Revenue Strategy
Our Results Validate Our Multi-Platform Product & Revenue Strategy ▪ Revenue is now almost evenly split between the Broadcast Radio Revenue line and our other revenue lines, illustrating the progress we are making on becoming a multi-platform company. ▪ Our other revenue lines, which have been the f
Slide 5: IHRT is the #1 Commercial Podcasting Publisher
IHRT is the #1 Commercial Podcasting Publisher ▪ Podcasting continues to be our strongest performing business line, with 74% revenue growth in Q3, and with EBITDA margins above the overall company margins • We had 252 million downloads in September, a 71% increase YoY, as measured by Podtrac • In Q3
Slide 6: IHRT is Positioned to be Resilient with Streamlined Cost Structure
IHRT is Positioned to be Resilient with Streamlined Cost Structure Expected to Provide Long-Term Margin Improvement ▪ IHRT took early actions to focus on aggressive cost management and maximizing liquidity to be prepared for a potential protracted recovery ▪ IHRT’s modernization and other cost savin
Slide 7: Q3 '20 Financial Results
Q3 '20 Financial Results: Successor $US Dollars in millions Successor Company Company Three Months Three Months Ended Ended September 30, June 30, 2020 2019 Variance 2020 Revenue $ 744.4 $ 948.3 (21.5) % $ 487.6 Direct operating expenses 276.7 316.7 (12.6) % 249.9 SG&A expenses 292.6 327.1 (10.6) %
Slide 8: YTD Q3 '20 Financial Results
YTD Q3 '20 Financial Results: Successor Successor Predecessor Non-GAAP $US Dollars in millions Company Company Company Combined Nine Months Ended May 2 - Nine Months Ended September 30, September 30, January 1 - May 1, September 30, 2020 2019 2019 2019 Variance Revenue $ 2,012.7 $ 1,584.0 $ 1,073.5
Slide 9: iHeartMedia Revenue Streams
iHeartMedia Revenue Streams $US Dollars in millions Successor Company Three Months Ended September 30, 2020 2019 Variance Revenue Broadcast Radio $ 404.5 $ 573.0 (29.4) % Digital 112.6 96.7 16.5 % Networks 119.0 160.1 (25.7) % Sponsorship and Events 28.9 55.5 (48.0) % Audio and Media Services 75.0 5
Slide 10: Political Revenue Impact by Segment
Political Revenue Impact by Segment $US Dollars in millions Successor Company Three Months Ended September 30, 2020 2019 Variance Revenue Political Revenue Impact: Audio Segment $ 21.8 $ 5.6 $ 16.2 Audio & Media Svs Segment 17.8 1.6 16.2 Total $ 39.6 $ 7.2 $ 32.4 Successor Successor Predecessor Non-
Slide 11: Capital Expenditures
Capital Expenditures $USD in millions Key Drivers: iHeartMedia, Inc. • Reduction driven by cost-savings Nine Months Ended September 30, initiatives 2020 2019 Variance • IT infrastructure and back office Audio $ 50.4 $ 68.4 $ (18.0) automation Audio & Media Services 2.4 4.1 (1.7) • Leasehold improvem
Slide 12: Debt
Debt Successor Company September 30, December 31, $USD in millions Maturity 2020 2019 Cash and cash equivalents $ 713.7 $ 400.3 Term Loan Facility due 2026(1) 2026 $ 2,085.5 $ 2,251.3 Incremental Term Loan Facility due 2026(2) 2026 448.9 — Asset-based Revolving Credit Facility(2)(3) 2023 — — 6.375%
Slide 13: Appendix
Appendix @ iHeartMEDIA
Slide 14: Q3 2020 Reconciliation of Net Income to EBITDA
Q3 2020 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA $US Dollars in millions Successor Company Three Months Three Months Ended Ended September 30, June 30, 2020 2019 2020 Net income (loss) $ (32,112) $ 12,374 $ (197,317) Income tax benefit (expense) (15,228) 16,758 (43,742) Inte
Slide 15: YTD Q3 2020 Reconciliation of Net Income to EBITDA
YTD Q3 '20 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Successor Successor Predecessor Non-GAAP $US Dollars in millions Company Company Company Combined Nine Months Ended May 2 - Nine Months Ended September 30, September 30, Jan 1 - May 1, September 30, 2020 2019 2019 2019 Net
Slide 16: Q3 2020 and YTD Q3 2020 Reconciliation of Free Cash Flow
Q3 2020 and YTD Q3 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 September 30, June 30, 2020 2019 2020 Cash provi
Slide 17: Q3 2020 Reconciliation of Revenue Excluding Political Revenue
Q3 2020 Reconciliation of Revenue excluding Effects of Political Revenue to Revenue (In thousands) Successor Company Three Months Ended September 30, 2020 2019 Consolidated revenue $ 744,406 $ 948,338 Excluding: Political revenue (39,588) (7,151) Consolidated revenue excluding effects of political r
Slide 18: YTD Q3 2020 Reconciliation of Revenue Excluding Political Revenue
YTD Q3 '20 Reconciliation of Revenue excluding Effects of Political Revenue to Revenue Successor Successor Predecessor Non-GAAP (In thousands) Company Company Company Combined Nine Months Ended May 2 - Nine Months Ended September 30, September 30, January 1 - May 1, September 30, 2020 2019 2019 2019
Slide 19: Q3 2020 Reconciliation of Digital Revenue Excluding Podcast Revenue
Q3 2020 Reconciliation of Digital Revenue excluding Effects of Podcast Revenue to Digital Revenue (In thousands) Successor Company Three Months Ended September 30, 2020 2019 Digital revenue $ 112,589 $ 96,656 Excluding: Podcast revenue (22,626) (13,033) Digital revenue excluding effects of podcast r
Slide 20: 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 – and with its quarter of a billion monthly listeners, has a greater reach than any other media company in the U.S. The company’s leadership position