iHeartMedia, Inc. (Nasdaq: IHRT) today reported financial
results for the quarter and year ended December 31, 2024.
Financial Highlights:1
Completed Debt Exchange Transaction and
Cost Efficiency Actions
- Completed previously announced exchange with a group of debt
holders representing approximately 92% of the Company's outstanding
term loan and notes (the "Debt Exchange Transaction"); exchanging
approximately $4.8 billion of existing debt; extended maturities by
three years; kept consolidated annual cash interest essentially
flat; and provided debt reduction resulting in the lowest Net Debt
in the history of the Company
- Completed modernization cost reduction program expected to
generate $200 million of annual cost savings in 2025. Offset by $50
million of anticipated cost increases for 2025, for an expected net
cost reduction of $150 million
Q4 2024 Consolidated
Results
- Q4 Revenue of $1,118 million, up 4.8% (Excluding Q4 Political
Revenue, Q4 Revenue down 1.8%)
- GAAP Operating income of $105 million vs. $80 million in Q4
2023
- Consolidated Adjusted EBITDA of $246 million, compared to $208
million in Q4 2023, up 18.2%
- Cash provided by operating activities of $1 million
- Free Cash Flow of $(24) million included $89 million of Debt
Exchange Transaction fees and $46 million of the accrued interest
paid for the Debt Exchange Transaction that would have been paid in
2025 under the old debt terms
- Free Cash Flow excluding the impacts of the Debt Exchange
Transaction was $111 million
- Cash balance and total available liquidity2 of $260 million and
$686 million, respectively, as of December 31, 2024
Q4 2024 Digital Audio Group
Results
- Digital Audio Group Revenue of $339 million up 7%
- Podcast Revenue of $140 million up 6%
- Digital Revenue excluding Podcast of $199 million up 7%
- Segment Adjusted EBITDA of $119 million up 2%
- Digital Audio Group Adjusted EBITDA margin of 35.1%
Q4 2024 Multiplatform Group
Results
- Multiplatform Group Revenue of $684 million flat
- Excluding Multiplatform Group Q4 Political Revenue,
Multiplatform Group Q4 Revenue down 5%
- Segment Adjusted EBITDA of $150 million up 6%
- Multiplatform Group Adjusted EBITDA margin of 21.9%
Guidance
- Q1 Consolidated Revenue expected to decline low-single
digits
- Q1 Consolidated Adjusted EBITDA3 expected to be approximately
$100 million to $110 million
- Full Year 2025 Consolidated Revenue expected to be
approximately flat in a non-political year
- Full Year 2025 Consolidated Adjusted EBITDA3 expected to be
approximately $770 million
Full Year 2024
Highlights4
- Revenue of $3,855 million, up 3% YoY, flat excluding political
- Digital Audio Group Revenue up 9%
- Podcast Revenue up 10%
- Digital Revenue excluding Podcast up 8%
- Multiplatform Group Revenue down 3%
- Excluding Multiplatform Group Political Revenue, Multiplatform
Group Revenue down 5%
- GAAP Operating loss of $763 million decreased from GAAP
Operating loss of $797 million in the year ended December 31, 2023.
2024 and 2023 included $923 million and $965 million of non-cash
impairment charges, respectively, primarily related to our goodwill
and indefinite-lived intangible assets balances
- Consolidated Adjusted EBITDA of $706 million, up from $697
million in the year ended December 31, 2023
- Generated Cash Flows from operating activities of $71
million
- Free Cash Flow of $(26) million included $89 million of Debt
Exchange Transaction fees and $46 million of the accrued interest
paid for the Debt Exchange Transaction that would have been paid in
2025 under the old debt terms
- Free Cash Flow excluding the impacts of the Debt Exchange
Transaction was $109 million
Statement from Senior Management
“Our fourth quarter Adjusted EBITDA of $246 million was up 18.2%
vs. prior year, our highest percentage increase in almost three
years, and our consolidated revenues were up 4.8% compared to the
prior year, demonstrating the inherent operating leverage in this
business,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc.
“We are pleased that we successfully completed the comprehensive
exchange transaction discussed last quarter -- extending the
majority of our debt maturities by three years; keeping our
consolidated annual cash interest expense essentially flat; and
providing overall debt reduction. This provides the company with
the flexibility to remain focused on creating shareholder value in
2025 and beyond.”
“In the fourth quarter, the Digital Audio Group’s revenues were
$339 million, and the Digital Audio Group’s Adjusted EBITDA was
$119 million, up 2.1% year-over-year. The Multiplatform Group’s
revenues were $684 million, flat compared to prior year, and
Adjusted EBITDA was $150 million, up 5.9% from $142 million in the
prior-year quarter,” said Rich Bressler, President, COO and CFO of
iHeartMedia, Inc. “At quarter end, we had the lowest Net Debt
position in the history of our company, approximately $4.52 billion
of Net Debt outstanding. Our total liquidity was $686 million at
quarter end, which includes a cash balance of $260 million. Our
quarter ending Net Debt to Adjusted EBITDA ratio was 6.4-times, and
we expect to end the year at approximately 5.5-times -- remaining
on track to achieve our goal of achieving 3.2-times by the end of
2028.”
Consolidated Results of
Operations
Fourth Quarter 2024 Consolidated
Results
Our consolidated revenue increased $51.5 million, or 4.8%,
during the three months ended December 31, 2024 compared to the
same period of 2023 primarily due to increases in political revenue
as 2024 was a presidential election year and digital revenues for
our Digital Audio Group and Audio & Media Services segments.
Digital Audio revenue increased $21.2 million, or 6.7%, driven
primarily by continuing increases in demand for digital
advertising. Multiplatform revenue was flat year-over-year, due to
an increase in political revenues, offset by a decrease in
broadcast advertising due to continued uncertain market conditions
and a decrease in non-cash trade revenues. Audio & Media
Services revenue increased $30.2 million, or 44.7%, primarily as a
result of higher political revenue as well as an increase in
digital revenue.
Consolidated direct operating expenses increased $41.2 million,
or 9.9%, during the three months ended December 31, 2024 compared
to the same period of 2023. The increase was primarily driven by
higher variable content costs, including higher third-party digital
costs and podcast profit sharing expenses related to the increase
in digital revenues, an increase in music license fees, and an
increase in certain costs incurred in connection with executing our
cost savings initiatives.
Consolidated Selling, General & Administrative ("SG&A")
expenses decreased $7.9 million, or 1.7%, during the three months
ended December 31, 2024 compared to the same period of 2023. The
decrease was driven primarily by a decrease in employee
compensation, including lower bonus expense, and lower trade
expense due to the earlier promotion schedule for the 2024
iHeartRadio Music Festival compared to the 2023 iHeartRadio Music
Festival, partially offset by an increase in certain costs incurred
in connection with executing on our cost savings initiatives.
Our consolidated GAAP Operating income was $104.5 million
compared to $79.8 million in the fourth quarter of 2023.
Adjusted EBITDA increased to $246.2 million compared to $208.2
million in the prior-year period.
Cash provided by operating activities was $1.2 million, compared
to $154.1 million in the prior year period primarily due to the
decrease in broadcast revenue and costs incurred related to the
Debt Exchange Transaction including $89.0 million of debt exchange
fees and $46.3 million of accrued interest related to the Debt
Exchange Transaction that would have been paid in 2025 under the
old debt terms, partially offset by an increase in political
revenues. Free Cash Flow was $(24.2) million, compared to $141.9
million in the prior year period. Excluding the impact of the costs
incurred related to the Debt Exchange Transaction, our Adjusted
Free Cash Flow was $111.1 million for the three months ended
December 31, 2024.
Business Segments: Results of
Operations
Fourth Quarter 2024 Multiplatform Group
Results
(In thousands)
Three Months Ended
December 31,
%
Year Ended
December 31,
%
2024
2023
Change
2024
2023
Change
Revenue
$
683,995
$
684,028
—
%
$
2,372,909
$
2,435,368
(2.6
)%
Operating expenses1
534,046
542,493
(1.6
)%
1,911,643
1,881,934
1.6
%
Segment Adjusted EBITDA
$
149,949
$
141,535
5.9
%
$
461,266
$
553,434
(16.7
)%
Segment Adjusted EBITDA margin
21.9
%
20.7
%
19.4
%
22.7
%
1 Operating expenses consist of Direct
operating expenses and SG&A expenses, excluding Restructuring
expenses.
Revenue from our Multiplatform Group was flat YoY, due to an
increase in political revenues as 2024 was a presidential election
year, offset by a decrease in broadcast advertising in connection
with continued uncertain market conditions. Broadcast revenue grew
$8.6 million, or 1.8% YoY, driven by an increase in political
advertising, partially offset by lower spot revenue and non-cash
trade revenue related to the earlier promotion schedule for the
2024 iHeartRadio Music Festival compared to the 2023 iHeartRadio
Music Festival. Networks decreased $6.6 million, or 5.6% YoY.
Revenue from Sponsorship and Events decreased $1.0 million, or 1.5%
YoY.
Operating expenses decreased $8.4 million, or 1.6% YoY, driven
primarily by lower bonus expense based on results and lower
non-cash trade expense related to the 2024 iHeartRadio Music
Festival, partially offset by an increase in broadcast music
license fees.
Segment Adjusted EBITDA Margin increased YoY to 21.9% from
20.7%.
Fourth Quarter 2024 Digital Audio Group
Results
(In thousands)
Three Months Ended
December 31,
%
Year Ended
December 31,
%
2024
2023
Change
2024
2023
Change
Revenue
$
338,892
$
317,695
6.7
%
$
1,164,515
$
1,069,167
8.9
%
Operating expenses1
219,955
201,184
9.3
%
785,575
720,298
9.1
%
Segment Adjusted EBITDA
$
118,937
$
116,511
2.1
%
$
378,940
$
348,869
8.6
%
Segment Adjusted EBITDA margin
35.1
%
36.7
%
32.5
%
32.6
%
1 Operating expenses consist of Direct
operating expenses and SG&A expenses, excluding Restructuring
expenses.
Revenue from our Digital Audio Group increased $21.2 million, or
6.7% YoY, driven by Digital, excluding Podcast revenue, which grew
$13.3 million, or 7.2% YoY, to $199.3 million, driven by an
increase in demand for digital advertising, and Podcast revenue,
which increased $7.9 million, or 6.0% YoY, to $139.6 million,
driven primarily by continued increases in demand for podcasting
from advertisers.
Operating expenses increased $18.8 million, or 9.3% YoY,
primarily driven by higher variable content costs, including higher
third-party digital costs and podcast profit sharing costs related
to the increase in revenues.
Segment Adjusted EBITDA Margin decreased YoY to 35.1% from
36.7%.
Fourth Quarter 2024 Audio & Media
Services Group Results
(In thousands)
Three Months Ended
December 31,
%
Year Ended
December 31,
%
2024
2023
Change
2024
2023
Change
Revenue
$
97,755
$
67,568
44.7
%
$
327,055
$
256,702
27.4
%
Operating expenses1
49,034
46,926
4.5
%
186,381
185,241
0.6
%
Segment Adjusted EBITDA
$
48,721
$
20,642
136.0
%
$
140,674
$
71,461
96.9
%
Segment Adjusted EBITDA margin
49.8
%
30.5
%
43.0
%
27.8
%
1 Operating expenses consist of Direct
operating expenses and SG&A expenses, excluding Restructuring
expenses.
Revenue from our Audio & Media Services Group increased
$30.2 million, or 44.7% YoY, primarily due to higher political
revenue as 2024 was a presidential election year and increased
demand for digital advertising.
Operating expenses increased $2.1 million, or 4.5% YoY,
primarily driven by higher bonus expense based on results,
partially offset by lower employee compensation in connection with
our cost savings initiatives.
Segment Adjusted EBITDA Margin increased YoY to 49.8% from
30.5%.
GAAP and Non-GAAP Measures: Consolidated
(In thousands)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Revenue1
$
1,118,269
$
1,066,783
$
3,854,532
$
3,751,025
Operating income (loss)
104,547
79,780
(763,108
)
(797,311
)
Adjusted EBITDA1
246,208
208,210
705,617
696,598
Net income (loss)
31,928
13,975
(1,009,494
)
(1,100,339
)
Cash provided by operating activities2
1,212
154,104
71,429
213,062
Free cash flow1
(24,208
)
141,890
(26,165
)
110,392
Free cash flow excluding the impacts of
the Debt Exchange Transaction1,3
111,083
141,890
109,126
110,392
_________________________________
1.
*See the end of this press release for
reconciliations of (i) Adjusted EBITDA to Operating income (loss),
(ii) Adjusted EBITDA to Net income (loss), (iii) Free Cash Flow to
Cash provided by operating activities, (iv) Free Cash Flow
excluding the impacts of the Debt Exchange Transaction to Cash
provided by operating activities (v) revenue, excluding political
advertising revenue, to revenue, and (vi) Net Debt to Total Debt.
See also the definitions of Adjusted EBITDA, Free Cash Flow, Free
Cash Flow excluding the impacts of the Debt Exchange Transaction,
Adjusted EBITDA margin, and Net Debt under the Supplemental
Disclosure Regarding Non-GAAP Financial Information section in this
release.
2.
We made cash interest payments of $125.6
million in the three months ended December 31, 2024, compared to
$88.5 million in the three months ended December 31, 2023. The
increase relates to the cash interest paid due to the Debt Exchange
Transaction.
3.
We completed the Debt Exchange Transaction
in the fourth quarter of 2024 which resulted in $89 million of Debt
Exchange Transaction fees and $46.3 million of cash paid for
accrued interest that would have been paid in 2025 under the old
debt terms.
Certain prior period amounts have been reclassified to conform
to the 2024 presentation of financial information throughout the
press release.
Liquidity and Financial
Position
As of December 31, 2024, we had $259.6 million of cash on our
balance sheet. For the twelve months ended December 31, 2024, cash
provided by operating activities was $71.4 million, cash provided
by investing activities was $0.5 million and cash used for
financing activities was $158.3 million.
Capital expenditures for the twelve months ended December 31,
2024 were $97.6 million compared to $102.7 million in the twelve
months ended December 31, 2023. Capital expenditures during the
twelve months ended December 31, 2024 decreased primarily due to
lower spending on real estate optimization initiatives.
As of December 31, 2024, the Company had $5,071.5 million of
total debt and $4,517.9 million of Net Debt. In the fourth quarter
of 2024 we closed on the Debt Exchange Transaction which resulted
in a $150.5 million partial repayment of debt. The terms of our
capital structure include no material maintenance covenants, and as
a result of the Debt Exchange Transaction, the maturity dates were
extended by 3 years for the majority of our debt.
Cash balance and total available liquidity5 were $259.6 million
and $685.9 million, respectively, as of December 31, 2024.
Revenue Streams
The tables below present the comparison of our historical
revenue streams (including political revenue) for the periods
presented:
(In thousands)
Three Months Ended
December 31,
%
Year Ended
December 31,
%
2024
2023
Change
2024
2023
Change
Broadcast Radio
$
493,298
$
484,673
1.8
%
$
1,726,934
$
1,752,166
(1.4
)%
Networks
113,260
119,948
(5.6
)%
437,212
466,404
(6.3
)%
Sponsorship and Events
70,065
71,137
(1.5
)%
187,344
191,434
(2.1
)%
Other
7,372
8,270
(10.9
)%
21,419
25,364
(15.6
)%
Multiplatform Group
683,995
684,028
—
%
2,372,909
2,435,368
(2.6
)%
Digital ex. Podcast
199,303
186,028
7.1
%
715,736
661,319
8.2
%
Podcast
139,589
131,667
6.0
%
448,779
407,848
10.0
%
Digital Audio Group
338,892
317,695
6.7
%
1,164,515
1,069,167
8.9
%
Audio & Media Services
Group
97,755
67,568
44.7
%
327,055
256,702
27.4
%
Eliminations
(2,373
)
(2,508
)
(9,947
)
(10,212
)
Revenue, total
$
1,118,269
$
1,066,783
4.8
%
$
3,854,532
$
3,751,025
2.8
%
Conference Call
iHeartMedia, Inc. will host a conference call to discuss results
and business outlook on February 27, 2025, at 4:30 p.m. Eastern
Time. The conference call number is (888) 596-4144 (U.S. callers)
and +1 (646) 968-2525 (International callers) and the passcode for
both is 8885116. A live audio webcast of the conference call will
also be available on the Investors homepage of iHeartMedia's
website investors.iheartmedia.com. After the live conference call,
a replay will be available for a period of thirty days. The replay
numbers are (800) 770-2030 (U.S. callers) and +1 (609) 800-9909
(International callers) and the passcode for both is 8885116. An
archive of the webcast will be available beginning 24 hours after
the call for a period of thirty days.
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 any other media
company in the U.S. Its leadership position in audio extends across
multiple platforms, including more than 860 live broadcast stations
in over 160 markets nationwide; its National Sales organization;
and the Company’s live and virtual events business. It also
includes Premiere Networks, the industry’s largest Networks
business, with its Total Traffic and Weather Network (TTWN); and
BIN: Black Information Network, the first and only 24/7 national
and local all news audio service for the Black community.
iHeartMedia also leads the audio industry in analytics, targeting
and attribution for its marketing partners with its SmartAudio
suite of data targeting and attribution products using data from
its massive consumer base.
The iHeartMedia Digital Audio Group includes the Company’s
fast-growing podcasting business -- iHeartMedia is the number one
podcast publisher in downloads, unique listeners, revenue and
earnings -- as well as its industry-leading iHeartRadio digital
service, available across more than 500+ platforms and thousands of
devices; the Company’s digital sites, newsletters, digital services
and programs; its digital advertising technology companies; and its
audio industry-leading social media footprint.
The Company’s Audio & Media Services reportable segment
includes Katz Media Group, the nation’s largest media
representation company, and RCS, the world's leading provider of
broadcast and webcast software.
Certain statements herein 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 important factors which
may cause the actual results, performance or achievements of
iHeartMedia, Inc. and its subsidiaries to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. The words or phrases
“guidance,” “believe,” “expect,” “anticipate,” “estimates,”
“forecast” and similar words or expressions are intended to
identify such forward-looking statements. These forward-looking
statements include, but are not limited to, statements regarding
the Company’s ability to realize the intended benefits of the Debt
Exchange Transaction; positioning in uncertain economic environment
and future economic recovery; driving shareholder value; our
anticipated growth; our expected costs savings and other capital
and operating expense reduction initiatives; utilization of new
technologies, programmatic platforms, and revenue opportunities.
improving operational efficiency; future advertising demand; trends
in the advertising industry, including on other media platforms;
strategies and initiatives; our anticipated financial performance,
including our outlook as to first quarter and full year 2025
consolidated results of operations; and our future liquidity and
net leverage are forward-looking statements. These statements are
not guarantees of future performance and are subject to certain
risks, uncertainties and other important factors, some of which are
beyond our control and are difficult to predict. Various risks that
could cause future results to differ from those expressed by the
forward-looking statements included in this press release include,
but are not limited to: risks related to global economic or
political uncertainty and our dependence on advertising revenues;
competition, including increased competition from alternative media
platforms and technologies; dependence upon our brand and the
performance of on-air talent, program hosts and management;
fluctuations in operating costs; technological and industry changes
and innovations; shifts in population and other demographics; risks
related to our use of artificial intelligence, impact of
acquisitions, dispositions and other strategic transactions; risks
related to our indebtedness; legislative or regulatory
requirements; impact of legislation, ongoing litigation or royalty
audits on music licensing and royalties; regulations and concerns
regarding privacy and data protection and breaches of information
security measures; risks related to scrutiny and regulation of
environmental, social and governance matters, risks related to our
Class A common stock; and regulations impacting our business and
the ownership of our securities. Other unknown or unpredictable
factors also could have material adverse effects on the Company’s
future results, performance or achievements. In light of these
risks, uncertainties, assumptions and factors, the forward-looking
events discussed in this press release may not occur. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date stated, or if no date
is stated, as of the date hereof. Additional risks that could cause
future results to differ from those expressed by any
forward-looking statement are described in the Company’s reports
filed with the U.S. Securities and Exchange Commission (SEC),
including in the section entitled “Part I, Item 1A. Risk Factors”
of iHeartMedia, Inc.’s Annual Reports on Form 10-K and “Part II,
Item 1A. Risk Factors” of iHeartMedia, Inc.’s Quarterly Reports on
Form 10-Q. The Company does not undertake any obligation to
publicly update or revise any forward-looking statements because of
new information, future events or otherwise.
APPENDIX
TABLE 1 -
Comparison of operating performance
(In thousands)
Three Months Ended
December 31,
%
Year Ended
December 31,
%
2024
2023
Change
2024
2023
Change
Revenue
$
1,118,269
$
1,066,783
4.8
%
$
3,854,532
$
3,751,025
2.8
%
Operating expenses:
Direct operating expenses (excludes
depreciation and amortization)
455,777
414,556
9.9
%
1,588,931
1,494,234
6.3
%
Selling, general and administrative
expenses (excludes depreciation and amortization)
458,088
465,969
(1.7
)%
1,693,679
1,656,171
2.3
%
Depreciation and amortization
98,733
105,455
409,582
428,483
Impairment charges
537
—
922,681
965,087
Other operating expense
587
1,023
2,767
4,361
Operating income (loss)
$
104,547
$
79,780
$
(763,108
)
$
(797,311
)
Depreciation and amortization
98,733
105,455
409,582
428,483
Impairment charges
537
—
922,681
965,087
Other operating expense
587
1,023
2,767
4,361
Restructuring expenses
33,456
13,882
101,384
60,353
Share-based compensation expense
8,348
8,070
32,311
35,625
Adjusted EBITDA1
$
246,208
$
208,210
18.2
%
$
705,617
$
696,598
1.3
%
1See the end of this press release for
reconciliations of (i) Adjusted EBITDA to Operating income (loss),
and (ii) Adjusted EBITDA to Net income (loss). See also the
definitions of Adjusted EBITDA and Adjusted EBITDA margin under the
Supplemental Disclosure section in this release.
TABLE 2 -
Statements of Operations
(In thousands)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Revenue
$
1,118,269
$
1,066,783
$
3,854,532
$
3,751,025
Operating expenses:
Direct operating expenses (excludes
depreciation and amortization)
455,777
414,556
1,588,931
1,494,234
Selling, general and administrative
expenses (excludes depreciation and amortization)
458,088
465,969
1,693,679
1,656,171
Depreciation and amortization
98,733
105,455
409,582
428,483
Impairment charges
537
—
922,681
965,087
Other operating expense
587
1,023
2,767
4,361
Operating income (loss)
104,547
79,780
(763,108
)
(797,311
)
Interest expense, net
92,627
96,116
379,434
389,775
Gain (loss) on investments, net
(15,956
)
(8,206
)
75,523
(28,130
)
Equity in earnings (loss) of
nonconsolidated affiliates
47
(12
)
(2,646
)
(3,530
)
Gain (loss) on extinguishment of debt
(97,305
)
5,250
(97,305
)
56,724
Other income (expense), net
(1,394
)
454
(926
)
(655
)
Loss before income taxes
(102,688
)
(18,850
)
(1,167,896
)
(1,162,677
)
Income tax benefit
134,616
32,825
158,402
62,338
Net income (loss)
31,928
13,975
(1,009,494
)
(1,100,339
)
Less amount attributable to noncontrolling
interest
438
852
447
2,321
Net income (loss) attributable to the
Company
$
31,490
$
13,123
$
(1,009,941
)
$
(1,102,660
)
TABLE 3 -
Selected Balance Sheet Information
Selected balance sheet information for
December 31, 2024 and December 31, 2023:
(In millions)
December 31,
2024
2023
Cash
$
259.6
$
346.4
Total Current Assets
1,361.8
1,506.9
Net Property, Plant and Equipment
489.8
558.9
Total Assets
5,571.7
6,952.6
Current Liabilities (excluding current
portion of long-term debt)
847.8
848.1
Long-term Debt (including current portion
of long-term debt)
5,071.5
5,215.2
Stockholders' Deficit
(1,371.8
)
(384.8
)
Supplemental Disclosure Regarding
Non-GAAP Financial Information
The following tables set forth the Company’s Adjusted EBITDA,
Adjusted EBITDA margin, revenues excluding political advertising
revenue, and Free Cash Flow, and Free Cash Flow excluding the
impact of the Debt Exchange Transaction for the three and twelve
months ended December 31, 2024 and 2023, and Net Debt as of
December 31, 2024. Adjusted EBITDA is defined as consolidated
Operating income (loss) adjusted to exclude restructuring expenses
included within Direct operating expenses and SG&A expenses,
and share-based compensation expenses included within SG&A
expenses, as well as the following line items presented in our
Statements of Operations: Depreciation and amortization, Impairment
charges, and Other operating expense. Alternatively, Adjusted
EBITDA is calculated as Net income (loss), adjusted to exclude
Income tax benefit, Interest expense, net, Depreciation and
amortization, (Gain) loss on investments, net, (Gain) loss on
extinguishment of debt, Other (income) expense, net, Equity in
(earnings) loss of nonconsolidated affiliates, Impairment charges,
Other operating expense, Share-based compensation expense, and
Restructuring expenses. Restructuring expenses primarily include
expenses incurred in connection with cost-saving initiatives, as
well as certain expenses, which, in the view of management, are
outside the ordinary course of business or otherwise not
representative of the Company's operations during a normal business
cycle. Adjusted EBITDA margin is calculated as Adjusted EBITDA
divided by Revenue.
The Company uses Adjusted EBITDA and Adjusted EBITDA margin,
among other measures, to evaluate the Company’s operating
performance. Adjusted EBITDA is among the primary measures used by
management for the planning and forecasting of future periods, as
well as for measuring performance for compensation of executives
and other members of management. We believe this measure is an
important indicator of the Company’s operational strength and
performance of its business because it provides a link between
operational performance and operating income. It is also a primary
measure used by management in evaluating companies as potential
acquisition targets.
The Company believes the presentation of these measures is
relevant and useful for investors because it allows investors to
view performance in a manner similar to the method used by the
Company’s management. The Company believes it helps improve
investors’ ability to understand the Company’s operating
performance and makes it easier to compare the Company’s results
with other companies that have different capital structures or tax
rates. In addition, the Company believes this measure is also among
the primary measures used externally by the Company’s investors,
analysts and peers in its industry for purposes of valuation and
comparing the operating performance of the Company to other
companies in its industry.
Since Adjusted EBITDA is not a measure calculated in accordance
with GAAP, it should not be considered in isolation of, or as a
substitute for, Operating income (loss) as an indicator of
operating performance and may not be comparable to similarly titled
measures employed by other companies. Adjusted EBITDA is not
necessarily a measure of the Company’s ability to fund its cash
needs. As it excludes certain financial information compared with
Operating income (loss), the most directly comparable GAAP
financial measure, users of this financial information should
consider the types of events and transactions which are
excluded.
We define Free Cash Flow as Cash provided by operating
activities less capital expenditures, which is disclosed as
Purchases of property, plant and equipment in the Company’s
Consolidated Statements of Cash Flows. We define Free Cash Flow
excluding the impacts of the Debt Exchange Transaction as Free Cash
Flow excluding the Debt Exchange Transaction fees and the cash paid
for accrued interest that would have been paid in 2025 under the
old debt terms. We use Free Cash Flow measures, among other
measures, to evaluate the Company’s liquidity and its ability to
generate cash flow. We believe that Free Cash Flow and Free Cash
Flow excluding the impacts of the Debt Exchange Transaction are
meaningful to investors because they provide them with a view of
the Company’s liquidity after deducting capital expenditures, which
are considered to be a necessary component of ongoing operations,
and excluding the impacts of the Debt Exchange Transaction in the
case of Free Cash Flow excluding the impacts of the Debt Exchange
Transaction. In addition, we believe that Free Cash Flow and Free
Cash Flow excluding the impacts of the Debt Exchange Transaction
help improve investors’ ability to compare our liquidity with that
of other companies.
Since Free Cash Flow and Free Cash Flow excluding the impacts of
the Debt Exchange Transaction are not measures calculated in
accordance with GAAP, they should not be considered in isolation
of, or as a substitute for, Cash provided by operating activities
and may not be comparable to similarly titled measures employed by
other companies. Free Cash Flow and Free Cash Flow excluding the
impacts of the Debt Exchange Transaction are not necessarily
measures of our ability to fund our cash needs.
The Company presents revenue, excluding the effects of political
revenue. Due to the cyclical nature of the electoral system and the
seasonality of the related political revenue, management believes
presenting revenue, excluding the effects of political revenue,
provides additional information to investors about the Company’s
revenue growth from period to period.
We define Net Debt as Total Debt less Cash and cash equivalents
and Debt Premium. We define net leverage as Net Debt divided by
Adjusted EBITDA. The Company uses net leverage and Net Debt to
evaluate the Company's liquidity. We believe these measures are an
important indicator of the Company's ability to service its
long-term debt obligations.
Since these non-GAAP financial measures are not calculated in
accordance with GAAP, they should not be considered in isolation
of, or as a substitute for, the most directly comparable GAAP
financial measures as an indicator of operating performance or
liquidity.
As required by the SEC rules, the Company provides
reconciliations below to the most directly comparable measures
reported under GAAP, including (i) Adjusted EBITDA to Operating
income (loss), (ii) Adjusted EBITDA to Net income (loss), (iii)
Free Cash Flow to Cash provided by operating activities, (iv) Free
Cash Flow excluding the impacts of the Debt Exchange Transaction to
Cash provided by operating activities (v) revenue, excluding
political advertising revenue, to revenue, and (vi) Net Debt to
Total Debt.
We have provided forecasted Consolidated Revenue and Adjusted
EBITDA guidance for the quarter ending March 31, 2025 and the full
year 2025, which reflects targets for Adjusted EBITDA and net debt.
Our Earnings Call on February 27, 2025 may present additional
guidance that includes Adjusted EBITDA. A full reconciliation of
the forecasted Adjusted EBITDA, net debt and net leverage on a
non-GAAP basis to the respective most-directly comparable GAAP
metrics cannot be provided without unreasonable efforts due to the
inherent difficulty in forecasting and quantifying with reasonable
accuracy significant items required for the reconciliations,
including gains or losses on investments, extinguishment of debt,
equity in nonconsolidated affiliates, impairment charges, stock
based compensation, and restructuring as well as the Company's cash
and cash equivalent balance.
Reconciliation of Operating income (loss) to Adjusted
EBITDA
(In thousands)
Three Months Ended
December 31,
Year Ended
December 31,
Three Months Ended September
30,
2024
2023
2024
2023
2024
Operating income (loss)
$
104,547
$
79,780
$
(763,108
)
$
(797,311
)
$
76,720
Depreciation and amortization
98,733
105,455
409,582
428,483
101,331
Impairment charges
537
—
922,681
965,087
412
Other operating income, net
587
1,023
2,767
4,361
1,092
Restructuring expenses
33,456
13,882
101,384
60,353
16,767
Share-based compensation expense
8,348
8,070
32,311
35,625
8,263
Adjusted EBITDA
$
246,208
$
208,210
$
705,617
$
696,598
$
204,585
Reconciliation of Net income (loss) to EBITDA and
Adjusted EBITDA
(In thousands)
Three Months Ended
December 31,
Year Ended
December 31,
Three Months Ended September
30,
2024
2023
2024
2023
2024
Net income (loss)
$
31,928
$
13,975
$
(1,009,494
)
$
(1,100,339
)
$
(41,325
)
Income tax expense (benefit)
(134,616
)
(32,825
)
(158,402
)
(62,338
)
20,835
Interest expense, net
92,627
96,116
379,434
389,775
95,715
Depreciation and amortization
98,733
105,455
409,582
428,483
101,331
EBITDA
$
88,672
$
182,721
$
(378,880
)
$
(344,419
)
$
176,556
(Gain) loss on investments, net
15,956
8,206
(75,523
)
28,130
103
(Gain) loss on extinguishment of debt
97,305
(5,250
)
97,305
(56,724
)
—
Other (income) expense, net
1,394
(454
)
926
655
(1,195
)
Equity in (earnings) loss of
nonconsolidated affiliates
(47
)
12
2,646
3,530
2,587
Impairment charges
537
—
922,681
965,087
412
Other operating expense
587
1,023
2,767
4,361
1,092
Restructuring expenses
33,456
13,882
101,384
60,353
16,767
Share-based compensation expense
8,348
8,070
32,311
35,625
8,263
Adjusted EBITDA
$
246,208
$
208,210
$
705,617
$
696,598
$
204,585
Reconciliation of Cash provided by operating activities to
Free Cash Flow and Free Cash Flow Excluding the Impacts of the Debt
Exchange Transaction
(In thousands)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Cash provided by operating activities
$
1,212
$
154,104
$
71,429
$
213,062
Purchases of property, plant and
equipment
(25,420
)
(12,214
)
(97,594
)
(102,670
)
Free cash flow
$
(24,208
)
$
141,890
$
(26,165
)
$
110,392
Interest paid for the Debt Exchange
Transaction1
46,321
—
46,321
—
Debt Exchange Transaction fees1
88,970
—
88,970
—
Free cash flow excluding the impacts of
the Debt Exchange Transaction1
$
111,083
$
141,890
$
109,126
$
110,392
(1) We completed the Debt Exchange
Transaction in the fourth quarter of 2024 which resulted in $89.0
million of Debt Exchange fees, and $46.3 million of cash paid for
accrued interest that would have been paid in 2025 under the old
debt terms.
Reconciliation of Revenue to Revenue excluding Political
Advertising
(In thousands)
Three Months Ended
December 31,
%
Change
Year Ended
December 31,
%
Change
2024
2023
2024
2023
Consolidated revenue
$
1,118,269
$
1,066,783
4.8
%
$
3,854,532
$
3,751,025
2.8
%
Excluding: Political revenue
(82,673
)
(12,631
)
(153,212
)
(30,877
)
Consolidated revenue, excluding
political
$
1,035,596
$
1,054,152
(1.8
)%
$
3,701,320
$
3,720,148
(0.5
)%
Multiplatform Group revenue
$
683,995
$
684,028
—
%
$
2,372,909
$
2,435,368
(2.6
)%
Excluding: Political revenue
(41,186
)
(7,535
)
(73,289
)
(20,658
)
Multiplatform Group revenue, excluding
political
$
642,809
$
676,493
(5.0
)%
$
2,299,620
$
2,414,710
(4.8
)%
Digital Audio Group revenue
$
338,892
$
317,695
6.7
%
$
1,164,515
$
1,069,167
8.9
%
Excluding: Political revenue
(6,076
)
(896
)
(12,880
)
(2,562
)
Digital Audio Group revenue, excluding
political
$
332,816
$
316,799
5.1
%
$
1,151,635
$
1,066,605
8.0
%
Audio & Media Group Services
revenue
$
97,755
$
67,568
44.7
%
$
327,055
$
256,702
27.4
%
Excluding: Political revenue
(35,411
)
(4,200
)
(67,043
)
(7,657
)
Audio & Media Services Group revenue,
excluding political
$
62,344
$
63,368
(1.6
)%
$
260,012
$
249,045
4.4
%
Reconciliation of Total Debt to Net Debt
(In thousands)
December 31,
2024
Current portion of long-term debt
$
22,501
Long-term debt
5,048,968
Total debt
$
5,071,469
Less: Debt premium
293,999
Less: Cash and cash equivalents
259,580
Net debt
$
4,517,890
Segment Results
The following tables present the Company's segment results for
the Company for the periods presented:
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services
Group
Corporate and other reconciling
items
Eliminations
Consolidated
Three Months Ended December 31,
2024
Revenue
$
683,995
$
338,892
$
97,755
$
—
$
(2,373
)
$
1,118,269
Less: Operating expenses(1)
534,046
219,955
49,034
71,399
(2,373
)
872,061
Segment Adjusted EBITDA
$
149,949
$
118,937
$
48,721
$
(71,399
)
$
—
$
246,208
Adjusted EBITDA margin
21.9
%
35.1
%
49.8
%
22.0
%
Depreciation and amortization
(98,733
)
Impairment charges
(537
)
Other operating expense, net
(587
)
Restructuring expenses
(33,456
)
Share-based compensation expense
(8,348
)
Operating income
$
104,547
Operating margin
9.3
%
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services
Group
Corporate and other reconciling
items
Eliminations
Consolidated
Three Months Ended December 31,
2023
Revenue
$
684,028
$
317,695
$
67,568
$
—
$
(2,508
)
$
1,066,783
Less: Operating expenses(1)
542,493
201,183
46,926
70,479
(2,508
)
858,573
Segment Adjusted EBITDA
$
141,535
$
116,512
$
20,642
$
(70,479
)
$
—
$
208,210
Adjusted EBITDA margin
20.7
%
36.7
%
30.5
%
19.5
%
Depreciation and amortization
(105,455
)
Impairment charges
—
Other operating expense, net
(1,023
)
Restructuring expenses
(13,882
)
Share-based compensation expense
(8,070
)
Operating income
$
79,780
Operating margin
7.5
%
(1) Operating expenses consist of Direct
operating expenses and SG&A expenses, excluding Restructuring
expenses and share-based compensation expenses.
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services
Group
Corporate and other reconciling
items
Eliminations
Consolidated
Year Ended December 31, 2024
Revenue
$
2,372,909
$
1,164,515
$
327,055
$
—
$
(9,947
)
$
3,854,532
Less: Operating expenses(1)
1,911,643
785,575
186,381
275,263
(9,947
)
3,148,915
Segment Adjusted EBITDA
$
461,266
$
378,940
$
140,674
$
(275,263
)
$
—
$
705,617
Adjusted EBITDA margin
19.4
%
32.5
%
43.0
%
18.3
%
Depreciation and amortization
(409,582
)
Impairment charges
(922,681
)
Other operating expense, net
(2,767
)
Restructuring expenses
(101,384
)
Share-based compensation expense
(32,311
)
Operating loss
$
(763,108
)
Operating margin
(19.8
)%
Segments
(In thousands)
Multiplatform Group
Digital Audio Group
Audio & Media Services
Group
Corporate and other reconciling
items
Eliminations
Consolidated
Year Ended December 31, 2023
Revenue
$
2,435,368
$
1,069,167
$
256,702
$
—
$
(10,212
)
$
3,751,025
Less: Operating expenses(1)
1,881,934
720,298
185,241
277,166
(10,212
)
3,054,427
Segment Adjusted EBITDA
$
553,434
$
348,869
$
71,461
$
(277,166
)
$
—
$
696,598
Adjusted EBITDA margin
22.7
%
32.6
%
27.8
%
18.6
%
Depreciation and amortization
(428,483
)
Impairment charges
(965,087
)
Other operating income, net
(4,361
)
Restructuring expenses
(60,353
)
Share-based compensation expense
(35,625
)
Operating loss
$
(797,311
)
Operating margin
(21.3
)%
(1) Operating expenses consist of Direct
operating expenses and SG&A expenses, excluding Restructuring
expenses and share-based compensation expenses.
_________________________________
1 Unless otherwise noted, all results are
based on year over year comparisons.
2 Total available liquidity is defined as
cash and cash equivalents plus available borrowings under our ABL
Facility. We use total available liquidity to evaluate our capacity
to access cash to meet obligations and fund operations.
3 A full reconciliation of forecasted
Adjusted EBITDA, net debt and net leverage on a non-GAAP basis to
the respective most-directly comparable GAAP metrics cannot be
provided without unreasonable efforts due to the inherent
difficulty in forecasting and quantifying with reasonable accuracy
significant items required for the reconciliations, including gains
or losses on investments, extinguishment of debt, equity in
nonconsolidated affiliates, impairment charges, stock based
compensation, and restructuring as well as the Company’s cash and
cash equivalents balance.
4 Unless otherwise noted, all results are
based on year over year comparisons.
5 Total available liquidity is defined as
cash and cash equivalents plus available borrowings under our ABL
Facility. We use total available liquidity to evaluate our capacity
to access cash to meet obligations and fund operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250227127613/en/
For further information, please contact:
Media
Wendy Goldberg Chief Communications Officer (212) 377-1105
wendygoldberg@iheartmedia.com
Investors
Mike McGuinness EVP, Deputy CFO, and Head of Investor Relations
(212) 377-1336 mbm@iheartmedia.com
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