Core Viewpoint - Kaskela Law LLC is investigating Townsquare Media, Inc. on behalf of long-term investors due to a significant decline in the company's stock value and potential violations of securities laws or fiduciary duties by the company's officers and directors [1][3]. Stock Performance - Since May 2024, Townsquare Media's stock price has dropped from over $12.00 per share to less than $7.00 per share, representing a decline of over 41% [2]. Legal Investigation - The investigation aims to determine if Townsquare Media and its executives breached securities laws or fiduciary responsibilities in relation to recent corporate actions [3].

Group 1 - Townsquare Media (NYSE: TSQ) is often misunderstood as a traditional radio stock, but it is primarily a digital advertising play [1] - The company's roots are in radio, yet its business model has evolved to focus significantly on digital advertising [1]

Company Overview - Townsquare Media, Inc. is a community-focused digital and broadcast media and digital marketing solutions company primarily targeting markets outside the top 50 in the U.S. [4] - The company operates Townsquare Ignite, a digital advertising division that utilizes proprietary programmatic advertising technology and a portfolio of over 400 local news and entertainment websites and mobile apps [4]. - Townsquare Interactive provides subscription digital marketing services to small and medium-sized businesses (SMBs), offering a SaaS business management platform, website design, SEO, and other digital services [4]. Upcoming Financial Results - Townsquare Media will release its first quarter 2025 financial results before the market opens on May 8, 2025 [1]. - A conference call to discuss these results will take place on the same day at 8:00 a.m. Eastern Time [1]. - The conference call can be accessed via a dial-in number and will also be available as a live webcast on the company's investor relations page [2].

Financial Data and Key Metrics Changes - In Q4 2024, net revenue increased by 2.6% year-over-year to $117.8 million, exceeding the guidance range [31] - Full year net revenue declined by 0.7% year-over-year to $451 million, within the guidance set at the beginning of the year [31] - Adjusted EBITDA for Q4 increased by 25.8% year-over-year to $31.2 million, while full year adjusted EBITDA was approximately flat, increasing by 0.4% to $100.4 million [32] Business Line Data and Key Metrics Changes - Digital Advertising net revenue grew by 5.5% year-over-year to $159 million, contributing 35% of total company net revenue [12][33] - Townsquare Interactive returned to year-over-year revenue growth in Q4 with a 1.9% increase, although full year revenue decreased by 8.4% [35] - Broadcast Advertising net revenue decreased by 4.1% in Q4 and declined by 1.3% for the full year, but segment profit increased by 11.1% year-over-year [36][38] Market Data and Key Metrics Changes - Digital revenue accounted for 52% of total net revenue, significantly higher than the industry average [11] - Digital Advertising growth accelerated to 15.5% in Q4, driven by strong programmatic advertising [17][33] - The company expects Digital Advertising revenue growth rates to continue in the high-single-digits for Q1 2025 [48] Company Strategy and Development Direction - The company is focused on a Digital First strategy, with plans to invest heavily in digital platforms and solutions [11][45] - The Media Partnership Division was launched to expand third-party revenue streams, with expectations of significant growth in the coming years [15][91] - The company views the Broadcast segment as a mature cash cow, while anticipating continued declines in revenue but maintaining strong profit margins [28][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the advertising market's health despite economic uncertainties, expecting strong growth in Digital Advertising [110][114] - The company anticipates a continued shift from traditional advertising to digital, benefiting from its comprehensive digital solutions [28][80] - Management expects to maintain a strong cash flow generation and continue to reduce debt while supporting a high-yielding dividend [40][46] Other Important Information - The company ended 2024 with $33 million in cash and generated $49 million in cash flow from operations [8][40] - A successful refinancing of debt was completed, extending maturities until 2030 [42][54] - The Board approved a dividend increase to $0.20 per share, reflecting confidence in the company's strategy and cash flow [46] Q&A Session Summary Question: Can you provide more details on Townsquare Interactive's subscriber numbers and expectations for Q1 2025? - Management noted that subscriber growth has returned, with expectations for revenue growth to double from Q4's 2% to at least 4% in Q1 2025, alongside a projected profit increase of 20% [63][64] Question: What are the current subscription rates for Townsquare Interactive? - The average revenue per user (ARPU) remains around $300, with some offerings exceeding $400, but management expects this to remain stable over the next two years [69][72] Question: How does the company view potential M&A opportunities in light of deregulation? - Management believes they are well-positioned to acquire radio assets, particularly in markets outside the top 50, and sees potential for both acquisitions and partnerships to drive growth [86][90] Question: What is the outlook for Broadcast revenue trends excluding political advertising? - Management expects Broadcast revenue to decline in line with previous years, projecting a 6% decline for 2025, while emphasizing the growth potential in Digital Advertising [101][102] Question: How is the company managing economic uncertainty in its Interactive and Ignite businesses? - Management reported that despite economic challenges, the advertising market remains healthy, with strong growth expected in Digital Advertising and Interactive segments [110][114]

Investor Presentation INVESTOR PRESENTATION March 2025 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation contains, and our other communications may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements, written, oral or ...

Core Viewpoint - Townsquare Media reported quarterly earnings of $0.60 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.34 per share a year ago [1] - The company posted revenues of $117.81 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.01%, but up from $114.79 million year-over-year [2] Financial Performance - Townsquare's earnings per share (EPS) for the last four quarters have not surpassed consensus estimates, with the most recent quarter's earnings aligning with expectations [2] - The company has exceeded consensus revenue estimates twice in the last four quarters [2] Stock Performance - Townsquare shares have declined approximately 14.3% since the beginning of the year, compared to a 4.1% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $103.48 million, and for the current fiscal year, it is $1.12 on revenues of $450.65 million [7] - The outlook for the Broadcast Radio and Television industry, where Townsquare operates, is currently in the top 27% of Zacks industries, suggesting a favorable environment for performance [8]

Digital Revenue and Advertising - Digital revenue reached $234.0 million in 2024, accounting for 52% of total net revenue, compared to $232.5 million and 51% in 2023[37] - Digital Advertising segment generated $158.6 million in 2024, up from $150.3 million in 2023[38] - Subscription Digital Marketing Solutions segment revenue was $75.3 million in 2024, down from $82.2 million in 2023[40] - Broadcast Advertising segment revenue was $209.0 million in 2024, a slight decrease from $211.7 million in 2023[46] - The company generated approximately 83% of its net revenue from local and regional advertisers in various industries for the year ended December 31, 2024[52] - Political advertising revenue can vary significantly between even and odd-numbered years, impacting overall revenue[108] Digital Strategy and Market Position - The company emphasizes a "Digital First" strategy, with digital advertising expected to grow to represent approximately 80% of all advertising spend by 2029[34] - The total addressable market for Townsquare Interactive is approximately $32 billion, targeting around 8.8 million small and medium-sized businesses[44] - The digital programmatic advertising platform provides access to over 250 billion impressions per day, positioning the company among the largest in-house media trading desks[38] - The company is dependent on retaining its digital audience to maintain business performance[108] Radio Operations and Market Reach - The company operates 344 radio stations across 74 local markets, significantly expanding its reach since its founding in 2010[33] - As of March 11, 2025, the company owns and operates 344 radio stations across 74 local markets, all outside the top 50 markets in the U.S.[47] - The company operates a total of 6 radio stations in Abilene, TX, and 5 in Albany-Schenectady-Troy, NY, among other markets[86] - The company has an estimated market share of over 35.0% in radio advertising revenue in many of its markets[101] - The company estimates that it has more than a 35.0% share of local radio advertising revenue in many of its markets, which may attract scrutiny from the DOJ[101] Financial Performance and Investments - Revenue from the "Other" category, which includes live events, was $8.1 million in 2024, down from $10.0 million in 2023[51] - The company recorded $17.4 million in capital expenditures for the year ended December 31, 2024, representing 3.9% of net revenue[56] - The company plans to continue investing in digital businesses, including Townsquare Ignite and Townsquare Interactive, to drive further growth[58] - The company’s substantial indebtedness could adversely impact its financial condition[108] Employee Relations and Corporate Governance - As of December 31, 2024, the company employed 2,049 full and part-time employees[78] - The company has no employees covered by collective bargaining agreements and considers employee relations satisfactory[78] - The company has instituted diversity training for newly hired employees and ongoing training during employment[76] - The company has a 401(k) plan with matching contributions as part of its employee benefits[8] - The company reported that no single customer accounted for more than 1% of revenue in the years ended December 31, 2024, and 2023[53] Regulatory and Compliance Issues - The FCC granted all license renewal applications for the company's radio stations for full eight-year terms in the last renewal cycle[82] - The next license renewal cycle for the company's radio stations begins in 2027[82] - The company has been subject to several EEO audits without receiving notice of any violations that could materially affect operations[97] Risks and Challenges - The company faces risks related to its acquisition strategy, including potential inability to complete future acquisitions due to market and financial conditions[108] - The company must respond to technological changes to remain competitive in the industry[108] - The company is subject to risks associated with potential future asset impairment of its FCC licenses and goodwill[109] - The company’s engagement with third-party service providers increases exposure to security and data privacy risks[110] - The company monitors economic conditions closely and may implement precautionary measures in response to observed or anticipated reductions in revenue due to economic challenges[71]

Financial Performance - Total Digital Net Revenue increased by 10.8% year-over-year in Q4 2024, reaching $117.8 million[9] - Digital Advertising Net Revenue grew by 15.5% year-over-year, amounting to $41.6 million in Q4 2024[9] - Adjusted EBITDA for Q4 2024 rose by 25.8% year-over-year to $31.2 million[11] - Net income for Q4 2024 was reported at $25.0 million, an increase of $26.9 million compared to a net loss of $1.9 million in Q4 2023[10] - For the full year 2024, net revenue decreased by 0.7% to $451.0 million, with Digital Advertising Net Revenue increasing by 5.5%[12] - Net revenue for Q4 2024 was $117.813 million, a slight increase from $114.786 million in Q4 2023, while total revenue for the year decreased to $450.982 million from $454.231 million[30] - Operating income for Q4 2024 was $21.326 million, compared to a loss of $7.890 million in Q4 2023, indicating a significant improvement in operational performance[30] - Net income for Q4 2024 was $25.041 million, a turnaround from a net loss of $1.878 million in Q4 2023, reflecting a positive shift in financial results[30] - Basic income per share for Q4 2024 was $1.59, compared to a loss of $0.14 in Q4 2023, demonstrating improved earnings performance[30] - Net loss for the twelve months ended December 31, 2024, was $10,928, significantly improved from a net loss of $43,022 in 2023[37] Cash and Debt Management - The company repurchased $36 million of debt and $24 million of equity in 2024, enhancing its financial position[1] - The company ended 2024 with a cash balance of $33 million and net leverage improved to 4.33x[15] - Long-term debt decreased to $465.756 million from $499.658 million, showing a reduction in financial leverage[28] - Cash and cash equivalents decreased to $32.990 million from $61.046 million, indicating a decline in liquidity[28] - Cash flows from operating activities for the twelve months ended December 31, 2024, were $48,748, down from $67,827 in 2023[33] - Cash and cash equivalents at the end of the period were $32,990, down from $61,549 at the end of 2023[35] Strategic Initiatives - Townsquare Ignite's digital advertising solutions are positioned as a key growth driver, aligning with the company's Digital First strategy[2] - The company continues to focus on digital technology development and market expansion as part of its strategic initiatives[22] Revenue Breakdown - Digital Advertising revenue increased by 15.5% to $42,074 for the three months ended December 31, 2024, compared to $36,434 in 2023[37] - Subscription Digital Marketing Solutions revenue increased by 1.9% to $19,495,000 in Q4 2024, while it decreased by 8.4% for the full year to $75,343,000[38] - The Digital Advertising net revenue excluding political revenue was $41,608,000, reflecting a 14.4% increase from $36,359,000 in Q4 2023[38] - The subscription segment generated $42,074,000 in net revenue for Q4 2024, up from $36,434,000 in Q4 2023, marking a growth of 15.5%[42] - Digital advertising solutions contributed $55,546,000 to net revenue in Q4 2024, compared to $57,903,000 in Q4 2023, reflecting a decline of 4.1%[42] Cost Management - Total operating costs and expenses decreased by 9.3% to $429,289 for the twelve months ended December 31, 2024, compared to $473,370 in 2023[37] - Direct operating expenses for Q4 2024 totaled $80,581,000, an increase from $83,896,000 in Q4 2023, resulting in a decrease of 3.8%[42] - Direct operating expenses for the subscription segment in 2024 were $117,916,000, compared to $104,381,000 in 2023, an increase of 13.1%[42] Segment Performance - Segment Profit for the three months ended December 31, 2024, rose by 20.5% to $37,232,000 compared to $30,890,000 in 2023[40] - Adjusted Net Income for the three months ended December 31, 2024, was $10,321,000, up from $6,072,000 in 2023[40] - Adjusted EBITDA for the three months ended December 31, 2024, increased to $31,179,000 from $24,778,000 in 2023[41] - Political revenue for the three months ended December 31, 2024, surged by 334.5% to $7,199,000 compared to $1,657,000 in 2023[38] - Yearly segment profit for 2024 was $124,200,000, compared to $125,034,000 in 2023, showing a marginal decline of 0.7%[42] - The digital marketing segment reported a profit of $19,852,000 in Q4 2024, up from $15,705,000 in Q4 2023, representing a growth of 26.7%[42] - The company reported a segment loss of $259,000 in the other category for Q4 2024, an improvement from a loss of $398,000 in Q4 2023[42]

Core Insights - Townsquare Media, Inc. reported a net revenue growth of +2.6% year-over-year for Q4 2024, with total digital net revenue increasing by +10.8% [2][11] - The company achieved an Adjusted EBITDA growth of +25.8% year-over-year in Q4 2024, driven by strong performance in digital segments and political revenue [2][11] - Townsquare's digital advertising segment, Townsquare Ignite, saw a net revenue increase of +15.5% year-over-year in Q4 2024 [2][11] Financial Performance - For Q4 2024, net revenue was $117.8 million, up from $114.8 million in Q4 2023, with digital advertising contributing $41.6 million [10][11] - The company reported a net income of $25.0 million for Q4 2024, an increase of $26.9 million compared to a net loss of $1.9 million in the same period last year [12][30] - Adjusted EBITDA for Q4 2024 was $31.2 million, up from $24.8 million in Q4 2023 [13][30] Segment Performance - Digital Advertising segment revenue increased by $5.6 million, or 15.5%, while Subscription Digital Marketing Solutions revenue rose by $0.4 million, or 1.9% in Q4 2024 [10][33] - Broadcast Advertising segment revenue decreased by $2.4 million, or 4.1%, in Q4 2024 [10][33] - For the full year 2024, Digital Advertising revenue increased by $8.3 million, or 5.5%, while Subscription Digital Marketing Solutions revenue decreased by $6.9 million, or 8.4% [14][33] Capital Management - The company repurchased $36 million of Senior Secured Notes and $24 million of common stock in 2024 [2][11] - Townsquare completed a debt refinancing, entering into a new $490 million credit agreement with maturities extended to 2030 [2][11] - The Board of Directors approved a quarterly cash dividend of $0.20 per share, reflecting a +1.3% increase from the previous dividend [3][2] Guidance - For Q1 2025, net revenue is expected to be between $98 million and $100 million, with Adjusted EBITDA projected between $17 million and $18 million [9] - For the full year 2025, net revenue is anticipated to be between $435 million and $455 million, with Adjusted EBITDA expected between $90 million and $98 million [9]

PURCHASE, N.Y., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare” or the “Company”) announced today that it will release fourth quarter 2024 financial results before the market opens on Monday, March 17, 2025. The Company will host a conference call to discuss certain fourth quarter 2024 financial results on Monday, March 17, 2025 at 8:00 a.m. Eastern Time. The conference call dial-in number is 1-800-717-1738 (U.S. & Canada) or 1-646-307-1865 (International) and the conferen ...