iHeartMedia(IHRT) - 2025 Q1 - Quarterly Report

Part I – Financial Information Item 1. Financial Statements The Q1 2025 financial statements reflect a slight revenue increase, a significant net loss, decreased assets, and a widened stockholders' deficit Consolidated Balance Sheets As of March 31, 2025, total assets decreased to $5.27 billion, total liabilities slightly decreased, and the total stockholders' deficit widened to $1.65 billion Consolidated Balance Sheet Summary (Unaudited) | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,159,561 | $1,361,842 | | Total Assets | $5,268,093 | $5,571,696 | | Total Current Liabilities | $729,832 | $870,280 | | Long-term debt | $5,032,066 | $5,048,968 | | Total Liabilities | $6,914,216 | $6,943,476 | | Total Stockholders' Deficit | $(1,646,123) | $(1,371,780) | Consolidated Statements of Comprehensive Loss Q1 2025 saw a slight revenue increase and improved operating loss, but a significant $280.9 million net loss, primarily due to higher income tax expense and an investment loss Consolidated Statements of Comprehensive Loss Summary (Unaudited) | (In thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $807,101 | $799,038 | | Operating loss | $(25,434) | $(34,708) | | Gain (loss) on investments, net | $(18,594) | $91,994 | | Income tax benefit (expense) | $(135,359) | $20,662 | | Net loss | $(280,883) | $(18,108) | | Net loss attributable to the Company | $(281,224) | $(18,508) | | Net loss per common share - Basic & Diluted | $(1.84) | $(0.12) | Consolidated Statements of Cash Flows In Q1 2025, cash used for operating activities slightly increased, investing activities shifted from providing to using cash, and overall cash and cash equivalents decreased by $91.9 million Consolidated Statements of Cash Flows Summary (Unaudited) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Cash used for operating activities | $(60,944) | $(59,277) | | Cash provided by (used for) investing activities | $(20,067) | $78,015 | | Cash used for financing activities | $(11,038) | $(3,548) | | Net (decrease) increase in cash | $(91,866) | $15,021 | | Cash, cash equivalents and restricted cash at end of period | $167,714 | $361,403 | Notes to Consolidated Financial Statements Notes detail segment performance, debt structure, and liquidity, highlighting three reportable segments and $559.1 million in total available liquidity as of March 31, 2025 - The company operates three reportable segments: Multiplatform Group (Broadcast radio, Networks, Sponsorships), Digital Audio Group (Digital businesses, Podcasting), and Audio & Media Services Group (Katz Media, RCS)[24] - As of March 31, 2025, the company had total available liquidity of $559.1 million, comprising $167.7 million in cash and $391.4 million in borrowing availability under its ABL Facility[20] Revenue by Segment (Q1 2025 vs Q1 2024) | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Multiplatform Group | $472,978 | $493,463 | | Digital Audio Group | $277,287 | $238,968 | | Audio & Media Services Group | $59,323 | $69,168 | | Total Revenue | $807,101 | $799,038 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) MD&A highlights 1.0% consolidated revenue growth driven by Digital Audio, offset by Multiplatform decline, improved operating loss, but a significantly widened net loss, with $150 million in anticipated 2025 savings - Modernization initiatives implemented in 2024 are anticipated to generate approximately $150 million of net savings for the full year 2025[83] Key Financial Metrics (Q1 2025 vs Q1 2024) | (In thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $807,101 | $799,038 | 1.0% | | Operating loss | $(25,434) | $(34,708) | (26.7)% | | Net loss | $(280,883) | $(18,108) | 1,451.2% | | Adjusted EBITDA | $104,588 | $104,617 | — % | Results of Operations Q1 2025 consolidated revenue grew 1.0% due to Digital Audio's 16.0% increase, offset by Multiplatform and Audio & Media Services declines, while net loss significantly widened due to investment and tax swings Revenue by Stream (Q1 2025 vs Q1 2024) | (In thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Multiplatform Group | $472,978 | $493,463 | (4.2)% | | Broadcast Radio | $340,736 | $359,338 | (5.2)% | | Digital Audio Group | $277,287 | $238,968 | 16.0% | | Podcast | $116,036 | $90,624 | 28.0% | | Audio & Media Services Group | $59,323 | $69,168 | (14.2)% | | Total Revenue | $807,101 | $799,038 | 1.0% | - The increase in net loss to $281.2 million was primarily due to a $101.4 million gain on the sale of the company's investment in BMI in Q1 2024 and an increase in income tax expense in Q1 2025[93][95] Segment Results Q1 2025 Digital Audio Group revenue grew 16.0% with 27.8% EBITDA increase, while Multiplatform and Audio & Media Services Groups experienced revenue and EBITDA declines Segment Performance (Q1 2025 vs Q1 2024) | (In thousands) | Revenue | Segment Adjusted EBITDA | | :--- | :--- | :--- | | Multiplatform Group | | | | Q1 2025 | $472,978 | $70,007 | | Q1 2024 | $493,463 | $77,182 | | % Change | (4.2)% | (9.3)% | | Digital Audio Group | | | | Q1 2025 | $277,287 | $87,083 | | Q1 2024 | $238,968 | $68,127 | | % Change | 16.0% | 27.8% | | Audio & Media Services Group | | | | Q1 2025 | $59,323 | $15,798 | | Q1 2024 | $69,168 | $23,695 | | % Change | (14.2)% | (33.3)% | Liquidity and Capital Resources As of March 31, 2025, total available liquidity was $559.1 million, deemed sufficient for the next twelve months, with anticipated $333.7 million in remaining 2025 debt service and increased net debt - Total available liquidity as of March 31, 2025 was $559.1 million, consisting of $167.7 million in cash and $391.4 million of borrowing base availability under the ABL Facility[116] - Anticipated cash payments to service debt for the remainder of 2025 are approximately $333.7 million[118] Net Debt Calculation | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Debt | $5,054,577 | $5,071,469 | | Less: Debt Premium | $278,106 | $289,752 | | Less: Cash and cash equivalents | $167,714 | $259,580 | | Net Debt | $4,608,757 | $4,522,137 | Item 3. Quantitative and Qualitative Disclosures About Market Risk The company faces market risks from interest rates, foreign currency, and inflation, with 45% of long-term debt at variable rates, where a 100 basis point change impacts quarterly interest expense by $5.4 million - As of March 31, 2025, approximately 45% of the company's long-term debt bore interest at floating rates[129] - A 100 basis point change in floating interest rates is estimated to change quarterly interest expense by $5.4 million[129] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[138] - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[139] Part II – Other Information Item 1. Legal Proceedings The company is involved in various ordinary course legal proceedings, accruing for probable and estimable losses, which could materially affect future results - The company is involved in a variety of legal proceedings in the ordinary course of business and has accrued for probable and estimable losses[142] Item 1A. Risk Factors No material changes in risk factors were reported since the last Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors were reported since the last Annual Report on Form 10-K[143] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company did not issue unregistered equity securities but repurchased 292,544 Class A common shares at $2.20 per share from employees for tax withholding obligations Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 1 - January 31 | 3,040 | $2.21 | | February 1 - February 28 | 268,829 | $2.20 | | March 1 - March 31 | 20,675 | $2.20 | | Total | 292,544 | $2.20 | - The repurchased shares were tendered by employees to satisfy tax withholding obligations in connection with the vesting of restricted stock[145]