Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare”, the “Company,” “we,” “us,” or “our”) announced today its financial results for the first quarter ended March 31, 2024.

“I am pleased to share that Townsquare’s first quarter results met our previously issued guidance, and that we are building momentum and gaining market share, primarily due to our local focus and our unique and differentiated digital platform. First quarter net revenue decreased -3.4% year-over-year and Adjusted EBITDA decreased -9.9% year-over-year, both in-line with our expectations. Our first quarter performance improved over the fourth quarter across each of our segments. Importantly, our Digital Advertising segment returned to revenue growth in the first quarter (+1.3% year-over-year), and our Townsquare Interactive segment achieved net subscriber growth and month-over-month revenue growth in March, a meaningful turning point for the business. In total, Digital represented 53% of Townsquare’s first quarter 2024 net revenue and Adjusted Operating Income,” commented Bill Wilson, Chief Executive Officer of Townsquare Media, Inc. “The strong cash generation characteristics of our assets provided us the ability to execute two attractive equity transactions in April using cash on hand: the accretive share repurchase of 1.5 million shares from MSG at an 11% discount to the pre-announcement share price, and an option buyout at an attractive price point, thereby avoiding shareholder dilution. In addition, during the quarter we repurchased $4 million of our common stock, and paid a high-yielding dividend while also investing in our business. We ended the quarter with a strong cash balance of $57 million, and following the April equity transactions, maintained a cash balance of $28 million at the end of April, retaining financial flexibility moving forward.”

Mr. Wilson continued, “Our performance and building momentum reinforces my confidence in our Digital First Local Media strategy, our focus on markets outside of the Top 50 U.S. cities, and our path moving forward. I am pleased to share that others share this view as well. Boyar Research, founded in 1975 and a leading firm of in-depth, independent research on publicly traded U.S. companies, highlighted Townsquare as their “Opportunity Pick” in March 2024, and in their report they derive an intrinsic value of Townsquare of $25.30 per share based on a sum-of-the-parts valuation. They also invited me to be a guest on their podcast, “The World According to Boyar”. Both the report and the podcast are available to our current and prospective investors on our website.”

“Townsquare’s differentiated Digital Advertising platform has already returned to growth, Townsquare Interactive is solidly on the path to recovery, and our mature, cash cow Broadcast Advertising platform has and continues to generate a solid profit, contributing to our strong cash generation. Due to our current cash position and our strong cash generation, we retain financial flexibility moving forward and we are confident in our ability to build shareholder value for our investors through long-term net revenue, Adjusted EBITDA and cash flow growth, net leverage reduction, future dividend payments, and potential future share repurchases,” concluded Mr. Wilson.

The Company announced today that its Board of Directors approved a quarterly cash dividend of $0.1975 per share. The dividend will be payable on August 1, 2024 to shareholders of record as of the close of business on July 15, 2024. As of yesterday’s closing price that reflects a dividend yield of approximately 6%.

Segment Reporting
We have three reportable operating segments, Subscription Digital Marketing Solutions, Digital Advertising and Broadcast Advertising. The Subscription Digital Marketing Solutions segment includes our subscription digital marketing solutions business, Townsquare Interactive. The Digital Advertising segment, marketed externally as Townsquare Ignite, includes digital advertising on our owned and operated digital properties, our first party data digital management platform and our digital programmatic advertising platform. The Broadcast Advertising segment includes our local, regional, and national advertising products and solutions delivered via terrestrial radio broadcast, and other miscellaneous revenue that is associated with our broadcast advertising platform. The remainder of our business is reported in the Other category, which includes our live events business.

First Quarter Results*

• As compared to the first quarter of 2023:
  • Net revenue decreased 3.4%, and 4.2% excluding political
  • Net income increased $3.5 million
  • Adjusted EBITDA decreased 9.9%
  • Total Digital net revenue decreased 5.2%
    • Subscription Digital Marketing Solutions (“Townsquare Interactive”) net revenue decreased 15.3%
    • Digital Advertising net revenue increased 1.3%
  • Total Digital Adjusted Operating Income decreased 22.8%
    • Subscription Digital Marketing Solutions Adjusted Operating Income decreased 9.7%
    • Digital Advertising Adjusted Operating Income decreased 30.1%
  • Broadcast Advertising net revenue decreased 1.0%, and decreased 2.8% excluding political
• Diluted income per share was $0.06
• Repurchased 0.4 million shares of the Company’s common stock at an average price of $10.80
• In April 2024, repurchased and retired 1.5 million shares of the Company’s common stock at an average price of $9.76

  per share

• In April 2024, purchased and retired 3.2 million options expiring in July 2024 for a net purchase price of $3.61 per

  option
  *See below for discussion of non-GAAP measures.

Guidance
For the second quarter of 2024, net revenue is expected to be between $117.5 million and $119.0 million, and Adjusted EBITDA is expected to be between $26.0 million and $27.0 million.

For the full year 2024, net revenue guidance is reaffirmed to be between $440 million and $460 million, and Adjusted EBITDA guidance is reaffirmed to be between $100 million and $110 million.

Quarter Ended March 31, 2024 Compared to the Quarter Ended March 31, 2023

Net Revenue
Net revenue for the three months ended March 31, 2024 decreased $3.5 million, or 3.4%, to $99.6 million as compared to $103.1 million in the same period in 2023. Subscription Digital Marketing Solutions net revenue decreased $3.3 million, or 15.3%, Broadcast Advertising net revenue decreased $0.5 million, or 1.0%, and Other net revenue decreased $0.2 million, or 7.8%, as compared to the same period in 2023. Digital Advertising net revenue increased $0.4 million, or 1.3%, as compared to the same period in 2023. Excluding political revenue of $1.1 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively, net revenue decreased $4.3 million, or 4.2%, to $98.6 million, Broadcast Advertising net revenue decreased $1.3 million, or 2.8%, to $44.5 million, and Digital Advertising net revenue increased $0.4 million, or 1.2%, to $34.1 million.

Net Income (Loss)
For the three months ended March 31, 2024, we reported net income of $1.6 million, as compared to a net loss of $1.9 million in the same period last year. The increase was primarily due to a $6.9 million decrease in non-cash impairment charges, a $3.1 million increase in Other income and a $1.4 million decrease in direct operating expenses, partially offset by a $3.5 million decrease in net revenue, a $1.2 million increase in transaction and business realignment costs, and a $1.1 million increase in stock-based compensation.

Adjusted EBITDA
Adjusted EBITDA for the three months ended March 31, 2024 decreased $1.9 million, or 9.9%, to $17.5 million, as compared to $19.4 million in the same period last year. Adjusted EBITDA (Excluding Political) decreased $2.6 million, or 13.7%, to $16.6 million, as compared to $19.3 million in the same period last year.