Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q2 2021 Earnings Presentation
25 slides from Iheartmedia's earnings presentation, Aug 5, 2021
Slide 1: Second Quarter 2021 Investor Presentation
Second Quarter 2021 Investor Presentation August 5, 2021 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 Q2 Results ▪ Q2 Revenue of $862 million up 76.7% YoY; surpassing the Company's guidance of up approximately 65% YoY ◦ Continues improvement vs. 2019; Q2 2021 down 6% vs. Q2 2019 compared to Q1 2021, which was down 11% vs. Q1 2019 ▪ Adjusted EBITDA of $185 million compared to $(29
Slide 4: Segment Reporting: 2021 Q2 Results
Segment Reporting: 2021 Q2 Results Revenue Adjusted EBITDA Margin % $US Dollars in millions Three Months Ended June 30, 2021 Three Months Ended June 30, 2021 2021 2020 % Chg 2021 2020 % Chg Q2 2021 Q2 2020 Q1 2021 Multiplatform Group $ 605.9 $ 357.1 69.7 % $ 181.4 $ (14.4) NM 29.9 % (4.0) % 21.0 % D
Slide 5: IHRT is Resilient with Streamlined Cost Structure Delivering Sustained Long-Term Margin Improvement
IHRT is Resilient with Streamlined Cost Structure Delivering Sustained Long-Term Margin Improvement Ø We took early actions to focus on aggressive cost management Ø Our modernization and other cost saving initiatives are a multi-pronged set of strategic initiatives aimed at creating lasting structur
Slide 6: iHeart Has the Only Total Audio Media Ecosystem
iHeart Has the Only Total Audio Media Ecosystem Content Broadcast & Digital Technology Platform Distribution Hosting/Infrastructure, Data, Monetization, and Measurement Radio Stations & Station Websites Events (Local & National) Networks Email Newsletters and iHeart Websites Personalities 860+ O&O B
Slide 7: iHeartMedia's Multiyear Podcast Strategy
iHeartMedia’s Multiyear Podcast Strategy Award-winning producer and writer Shonda Rhimes iHeartMedia builds out partners with iHeartMedia In partnership with Enrique the iHeartPodcast to launch Shondaland Santos, iHeartMedia’s Chief Network – a deliberate Creative Officer of iHeartLatino – iHeartMed
Slide 8: iHeartPodcast Network's Audience Has Grown 7X Faster than Its Closest Competitor (NPR) Since 2019
iHeartPodcast Network’s Audience Has Grown 7X Faster than Its Closest Competitor (NPR) Since 2019 Podtrac U.S. Unique Monthly Podcast Audience Growth vs 2019 30 M +113% 25 M +13% 20 M 15 M +46% 10 M +21% 5M 0M 8 Source: Podtrac Rankings, Jan 2019 – June 2021
Slide 9: 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 1MM+ LISTENS iHeartRadio: 137 iHeartRadio: 51 iHeartRadio: 45 Wondery: 38 NPR: 17 NPR: 19 NPR: 24 Wondery: 16 Wondery: 15 #1 in total global downloads #1 in unique U.
Slide 10: iHeartRadio Is the #1 Podcast Publisher in the US
iHeartRadio Is the #1 Podcast Publisher in the US THE MOST CREATORS + THE MOST-ENGAGED SUPERFANS ON THE BIGGEST STAGE IN PODCASTING PODCAST PUBLISHER MONTHLY AUDIENCE MONTHLY DOWNLOADS 31,684,696 251,872,889 20,232,447 151,287,417 10,011,552 81,148,595 8,703,768 51,582,775 7,561,508 47,182,175 7,496
Slide 11: Q2 '21 Financial Results
Q2 '21 Financial Results Three Months Three Months Ended Ended $US Dollars in millions June 30, March 31, 2021 2020 Variance 2021 Revenue $ 861.6 $ 487.6 76.7 % $ 706.7 Direct operating expenses 320.5 244.1 31.3 % 292.8 SG&A expenses 372.6 293.4 27.0 % 342.3 Depreciation & amortization 127.9 103.3 2
Slide 12: Q2 '21 YTD Financial Results
Q2 '21 YTD Financial Results Six Months Ended $US Dollars in millions June 30, 2021 2020 Variance Revenue $ 1,568.3 $ 1,268.3 23.7 % Direct operating expenses 613.3 538.1 14.0 % SG&A expenses 715.0 685.2 4.4 % Depreciation & amortization 235.3 200.1 17.6 % Impairment charges 37.7 1,733.2 Other opera
Slide 13: iHeartMedia Q2 Revenue Streams
iHeartMedia Q2 Revenue Streams Three Months Ended $US Dollars in millions June 30, 2021 2020 Variance Revenue Broadcast Radio $ 451.1 $ 244.0 84.9 % Networks 123.6 96.3 28.3 % Sponsorship and Events 28.6 14.8 93.0 % Other 2.5 1.9 30.6 % Multiplatform Group $ 605.9 $ 357.1 69.7 % Digital ex. Podcast
Slide 14: iHeartMedia Q2 YTD Revenue Streams
iHeartMedia Q2 YTD Revenue Streams Six Months Ended $US Dollars in millions June 30, 2021 2020 Variance Revenue Broadcast Radio $ 809.7 $ 705.7 14.7 % Networks 238.7 230.9 3.4 % Sponsorship and Events 51.0 44.2 15.4 % Other 4.4 6.0 (25.9) % Multiplatform Group $ 1,103.7 $ 986.7 11.9 % Digital ex. Po
Slide 15: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended $US Dollars in millions June 30, 2021 2020 Variance Revenue Political Revenue Impact: Multiplatform Group $ 4.2 $ 4.3 $ (0.1) Digital Audio Group 0.2 0.2 — Audio & Media Services Group 1.2 2.6 (1.4) Total $ 5.6 $ 7.0 $ (1.4) Six Months Ended $US
Slide 16: Capital Expenditures
Capital Expenditures $USD in millions Six Months Ended June 30, 2021 2020 Variance Multiplatform Group $ 31.5 $ 22.8 $ 8.7 Digital Audio Group 11.7 6.7 5.0 Audio & Media Services Group 2.2 1.6 0.6 Corporate 5.7 8.4 (2.7) Total Gross Capital Expenditures $ 51.1 $ 39.5 $ 11.6 Proceeds from Real Estate
Slide 17: Debt
Debt June 30, December 31, $USD in millions Maturity 2021 2020 iHeartCommunications, Inc. Cash and cash equivalents $ 583.3 $ 720.7 Term Loan Facility due 2026 2026 $ 2,069.8 $ 2,080.3 Incremental Term Loan Facility due 2026 2026 445.5 447.8 Asset-based (1) Revolving Credit Facility 2023 — — 6.375%
Slide 18: Subsequent Event - Improved Debt Structure and Deleveraging
Subsequent Event - Improved Debt Structure and Deleveraging June 30, Adjusted June 30, $USD in millions Maturity 2021 Adjustments 2021 ▪ Voluntarily prepaid $250 million of Cash and cash equivalents $ 583.3 $ (250.0) $ 333.3 term loan in July Term Loan Facility due 2026 2026 $ 2,069.8 $ (205.7) $ 1,
Slide 19: Appendix
19 Appendix MEDIA
Slide 20: Segment Reporting: 2021 Q2 YTD Results
Segment Reporting: 2021 Q2 YTD Results Revenue Adjusted EBITDA Margin % $US Dollars in millions Six Months Ended June 30, 2021 Six Months Ended June 30, 2021 2021 2020 % Chg 2021 2020 % Chg 2021 2020 Multiplatform Group $ 1,103.7 $ 986.7 11.9 % $ 286.2 $ 137.8 107.7 % 25.9 % 14.0 % Digital Audio Gro
Slide 21: Q2 2021 and YTD Reconciliation of Free Cash Flow to Cash Provided by Operating Activities
Q2 2021 and Q2 2021 YTD Reconciliation of Free Cash Flow to Cash Provided by Operating Activities Three Months Three Months Ended Ended (In thousands) June 30, March 31, 2021 2020 2021 Cash provided by operating activities $ 29,129 $ 11,369 $ 71,728 Purchases of property, plant and equipment (32,111
Slide 22: Q2 2021 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q2 2021 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Three Months Ended Ended $US Dollars in thousands June 30, March 31, 2021 2020 2021 Net loss $ (31,960) $ (197,317) $ (242,056) Income tax benefit (expense) 24,449 (43,742) 79,935 Interest expense, net 84,887 81,963 85,121
Slide 23: Q2 2021 YTD Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q2 2021 YTD Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Six Months Ended $US Dollars in thousands June 30, 2021 2020 Net income (loss) $ (274,016) $ (1,886,053) Income tax benefit (expense) 104,384 (194,253) Interest expense, net 170,008 172,052 Depreciation and amortization 235,308 200
Slide 24: Q2 2021 and YTD Reconciliation of Revenue Excluding Effects of Political Revenue
Q2 2021 and Q2 2021 YTD Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2021 2020 2021 2020 Consolidated revenue $ 861,605 $ 487,648 $ 1,568,270 $ 1,268,282 Excluding: Political revenue (5,615) (6,989) (
Slide 25: 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