iHeartMedia Promotes Three Senior Programmers To Division Executive Vice Presidents In Its National Programming Group

New Additions to the Executive Vice President of Programming Team Will Work Closely With Recently Announced Division Presidents As Part of iHeartMedia’s New Operating Structure For Its Markets

New York, NY – January 16, 2020 – iHeartMedia announced today that three of its senior programming executives have been named Division Executive Vice Presidents of Programming for the iHeartMedia National Programming Group, effective immediately.

Jeff Hurley, Tony Travatto and Angela Watson Charles will now join current Executive Vice Presidents of Programming Andrew Jeffries, Thea Mitchem, Maynard and Gene Romano. They will report to Brad Hardin, Chief Operating Officer of the iHeartMedia National Programming Group.

Each member of iHeart’s Executive Vice President of Programming team will partner with the company’s Division Presidents, collaborating with each Division to provide national programming assets, services and resources: 

  • Mitchem and Jeffries will work with Kevin LeGrett and Scott Hopeck and the Region Division, which is comprised of the company’s largest markets, like New York and Los Angeles, that each reach hundreds of cities, communities and trading areas for local businesses. 
  • Romano and Maynard will work with Division Presidents Tom McConnell, Tony Coles and Linda Byrd and the Metro Division, which houses markets that are large areas that still encompass multiple communities – but are not regional hubs like the company’s largest markets.
  • Travatto, Hurley and Watson Charles will work with Division Presidents Shosh Abromovich, Nick Gnau and Dan Lankford and the Community Division, which includes markets that focus on the shared needs of one community and one trading area for most businesses and advertisers and will also group markets into areas which are geographically close and culturally similar.

“We’re excited to add Angela, Jeff and Tony to our already extremely talented Executive Vice President of Programming team,” said Tom Poleman, Chief Programming Officer for iHeartMedia. “They each have deep experience building great local brands with a blend of math and magic, and they’ll provide excellent leadership to our programmers in our Community Division markets.”

Hurley has served as Regional Senior Vice President of Programming for iHeartMedia’s Allentown/Harrisburg Region since 2013. He joined iHeartMedia in 2004 as the Program Director for WHKF-FM Harrisburg, Pennsylvania and later worked as a Program Director, Operations Manager and on-air personality for brands in the Region. Hurley’s on-air background includes stations in Philadelphia; Cincinnati; Rochester, New York; Tulsa, Oklahoma; Wilkes-Barre, Pennsylvania and Elmira, New York.

Travatto brings more than 20 years of experience to his new role, most recently as Senior Vice President of Programming for iHeartMedia Detroit and Program Director for Channel 955, Detroit's #1 Hit Music Station, and 100.3 WNIC, The Best Variety Of The 80’s, 90’s & Today. He joined iHeartMedia in 2005 as the Program Director for iHeartMedia San Antonio’s KXXX-FM and has served on iHeartMedia’s CHR brand team. Travatto’s background includes working at radio stations in Michigan and Illinois.

Watson Charles began her career at iHeartMedia in 1990 as a Promotions intern for WQUE-FM before transitioning into programming and as an on-air personality. In 2015, she was named Senior Vice President of Programming for iHeartMedia New Orleans’ eight stations. Also known as Uptown Angela, Watson Charles is the midday on-air personality for Q93, New Orleans Hip Hop and R&B Station, where she has been number one in her daypart for more than two decades.

IHM Press Release Date
IHM Press Category

iHeartMedia Announces Division Leadership For Its New Markets Group Organization

NEW YORK – January 15, 2020 – iHeartMedia today announced that nine of its senior executives will be Division Presidents of the new iHeartMedia Markets Group organization, effective immediately. These executives – Shosh Abromovich, Linda Byrd, Tony Coles, Julie Donohue, Nick Gnau, Scott Hopeck, Dan Lankford, Kevin LeGrett and Tom McConnell – will report into Greg Ashlock, President of the iHeartMedia Markets Group. 

This is part of iHeartMedia’s recently announced Markets Group structure, which utilizes the company’s major investments in technology and artificial intelligence (AI) to maximize the performance of each of its markets – and the company overall – with its unique scale and multiple platforms; leadership in audio; and its expertise in consumers, monetization and data. The new structure will enhance iHeartMedia’s position as the number one audio company in America, continue its successful transformation as a technology- and data-powered 21st century media company, and accelerate the development of new platforms and services.

Under the new organizational structure, the company will now group its markets by common needs and characteristics into three distinctly different divisions to make sharing of resources and experiences easier and more targeted. LeGrett and Hopeck will lead the Region Division; McConnell, Coles and Byrd will lead the Metro Division; Abromovich, Gnau and Lankford will lead the Community Division; and Donohue will lead the Multi-Market Partnerships Division.

“It’s an exciting time at iHeart as we launch our new Markets Group structure to capitalize on our unparalleled reach and groundbreaking technology to create one-of-a-kind platforms and services for our employees, partners and listeners,” said Ashlock.  “Our nine Division Presidents bring a complementary portfolio of knowledge, leadership and diverse functional expertise that will position us well as we continue to transform and modernize as the leader in the audio space.”

In addition, the company’s Integrated Revenue Strategies group, led by President Hartley Adkins, will be merged into the iHeartMedia Markets Group and Adkins will become Chief Operating Officer (COO) of the Markets Group working closely with Ashlock. 

The Region Division

Led by LeGrett and Hopeck, the Region Division comprises the company’s largest markets, like New York and Los Angeles, that each reach hundreds of cities, communities and trading areas for local businesses.

LeGrett previously served as Division President and Executive Vice President of Operations for the iHeartMedia Markets Group overseeing Los Angeles, Phoenix, San Diego, Dallas, Houston, San Antonio, Austin and Washington, D.C., and with responsibility for leading political strategy.  He is a 20+ year media veteran who joined iHeartMedia in 2010 as Vice President/Market Manager for its Rochester, New York market. LeGrett’s background includes serving as Market President for iHeartMedia Los Angeles and as Senior Vice President of Operations, overseeing more than 220 radio stations and 46 markets of all sizes in the Northeast and Midwest regions.

Hopeck previously served as Division President for iHeartMedia Markets Group with responsibility for the company’s New York City, Chicago, Philadelphia and San Francisco/Sacramento Regions.  He is a 20-year media veteran with extensive experience in digital and sports marketing, and has been with iHeartMedia for more than 15 years. Hopeck previously served as Region President of iHeartMedia New York. His extensive media background also includes serving as Market President for iHeartMedia Phoenix, Senior Vice President of Sales for iHeartMedia Atlanta and General Manager of the company's Braves Radio Network. Prior to iHeartMedia, he served at other media companies including Viacom. 

The Metro Division

Led by McConnell, Coles and Byrd, the Metro Division houses markets that are large areas that still encompass multiple communities – but are not regional hubs like the company’s largest markets.

A media and marketing veteran with more than 20 years of experience, McConnell previously served as Division President of the iHeartMedia Markets Group with the responsibility for the P&L of more than 200 stations across the Northeastern United States in Regions including Boston, Detroit, Hartford, North and South Ohio, and Pittsburgh. During his 20+ years in the media and entertainment industry, McConnell has overseen more than 75 media markets of all sizes and scope and held expansive senior leadership positions across sales, programming and operational divisions. He has led numerous corporate projects that have yielded financial success not only in the market operations, but in a variety of iHeartMedia divisions.

Coles previously served as Executive Vice President of Programming for iHeartMedia, working closely with the Division Presidents. With more than 25 years of experience in the radio industry, Coles has held various on-air, programming and management positions and previously served as Senior Vice President of Programming for the West Region, where he led all programming strategy initiatives throughout the region. His background also includes serving in a dual role as Vice President of Programming for iHeartMedia Chicago and National Hot AC Brand Manager. He has also held positions as iHeartMedia’s Regional Vice President of Programming for the West and Operations Manager in Portland, Oregon. 

Byrd previously served as Division President for the iHeartMedia Markets Group, overseeing markets in North Florida, Georgia, Alabama, Mississippi, Tennessee, South Carolina, North Carolina and Virginia.  She is a 40-year media veteran who has been with iHeartMedia since 1982. Her extensive media experience includes serving as President of iHeartMedia’s Central/North Florida region and overseeing operations in Orlando. During her tenure, Byrd has received many prestigious honors, including Radio Ink Magazine’s General Manager of the Year, and received the Silver Medal Award by the American Advertising Federation for outstanding advertising professional in Central Florida. She was also the first woman to serve as Chairman of the Florida Association of Broadcasters. 

The Community Division

Led by Abromovich, Gnau and Lankford, the Community Division includes markets that focus on the shared needs of one community and one trading area for most businesses and advertisers and will also group markets into areas which are geographically close and culturally similar.

Abromovich has spent over a decade with iHeartMedia, most recently serving as Market President for iHeartMedia Toledo.  As Market President, she worked closely with the programming, business and sales teams and oversaw on-air and digital programming operations as well as creating new business and revenue growth opportunities for the market’s seven stations. Prior to joining iHeartMedia Toledo, she held Digital Sales Manager, Local Sales Manager and General Sales Manager positions for iHeartMedia Detroit. Abromovich began her career as an Account Executive for iHeartMedia Detroit.

Gnau most recently served as President of iHeartMedia’s Philadelphia Region. During his more than 25 years with the company, Gnau has served as a Market Manager and President in a number of markets, including Detroit, Grand Rapids, Marion, Chillicothe, Lima, Toledo, Dayton and Muskegon. He began his radio career on a street team before becoming an Account Executive.

Lankford previously served as Region President of iHeartMedia’s Allentown-Harrisburg Region, where he was responsible for eight markets encompassing 37 radio stations throughout Pennsylvania and the Delmarva Peninsula. Lankford brings more than 35 years of experience in broadcasting, digital, sales and content creation to his role. He began his career as an on-air morning host and later ran stations in New York, Massachusetts, New Hampshire and New Jersey before joining iHeartMedia in 1999. During his time at iHeartMedia, he has led the programming, business and sales teams as Market President and Market Manager for brands in Pennsylvania and Ohio.

The Multi-Market Partnerships Division

Julie Donohue is the President of the Multi-Market Partnerships Division, which empowers iHeart sales teams, regardless of market size and location, to access and leverage all the assets iHeartMedia offers. Prior to this, she spent four years as the Senior Vice President of Multi-Market Partnerships, where she oversaw enterprise business development for the Markets Group. Donohue previously led integrated marketing efforts for iHeartMedia’s Chicago market for 13 years, including managing event and digital efforts and developing a sales team into strategic marketing partners. Her background also includes a 13-year tenure at CBS in Chicago, where she served as the Director of Sales and led the infinity promotions group Midwest office.

 

Forward-Looking Statements

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 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. In addition, any statements that refer to expectations or other characterizations of future events or circumstances, such as statements about our goals, and changes to our organizational structure and the expected impacts of such changes, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. 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. Various 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, including in the section entitled “Item 1A. Risk Factors” of iHeartMedia, Inc.’s most recent Annual Report on Form 10-K and 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.

IHM Press Release Date
IHM Press Category

iHeartMedia Names Yesenia Bello Senior Vice President of Multicultural Sales

NEW YORK – October 21, 2019 – iHeartMedia announced today that Yesenia Bello has been named iHeartMedia’s Senior Vice President of Multicultural Sales, effective immediately. Bello will report to Alan Korowitz, Executive Vice President of National Platforms, and will be based out of New York.

In her new role, Bello will be responsible for developing sales opportunities with key multicultural advertisers and their agencies across iHeartMedia broadcast stations, digital, podcast, events and Premiere Networks, which includes “Tu Mañana and On The Move with Enrique Santos,” “The Breakfast Club” and the “Steve Harvey Morning Show.” She will also work closely with Enrique Santos, Chairman and Chief Creative Officer of iHeartLatino, to create an innovative go-to-market audio strategy for iHeartMedia’s Hispanic portfolio. In addition, she will also lead sales efforts for the iHeartRadio Fiesta Latina annual mega-concert in Miami, which celebrates the best artists and performers in Latin music today.

“It’s a critical time for audio and media companies with people having a variety of platforms vying for their attention,” said Alan Korowitz, EVP of National Platforms for iHeartMedia. “This is especially true for multicultural audiences. As the leader in audio and a company that reaches more Hispanic and African-American audiences than any other company, iHeartMedia understands that better than anyone. That’s why we’re so excited to have someone with Yesenia’s background and expertise spearheading our multicultural sales efforts.” 

“I’m thrilled to join iHeartMedia during a time when cultural sound is creating a seismic shift in the music industry and is reshaping how we consume and how we experience music,” said Bello. “iHeart has a great history of embracing its Hispanic and African-American listeners and I can’t wait to help create an innovative, strategic focus in Multicultural audiences that will deliver incremental growth across iHeartMedia’s portfolio of assets.”

Bello brings 15 years of Multicultural media experience to her new role. She began her sales career at Telemundo Network, where she helped develop the multi-million dollar advertising business for the company’s New York and Chicago regions. After almost eight years at Telemundo, Bello joined Hulu’s Latino division as an account executive and later held positions as National Sales Manager for Hulu Latino and later its Multicultural team that allowed her to work with major brands across all regions of the United States. Bello most recently worked at Google, where she focused on Multicultural strategy and sales for YouTube advertisers. She immigrated to the United States from the Dominican Republic at the age of 11 and received her B.S. in Communications from CUNY College of Staten Island.

 

IHM Press Release Date
IHM Press Category

iHeartMedia Chairman and Chief Executive Officer Bob Pittman to Participate in Goldman Sachs 28th Annual Communacopia Conference

NEW YORK — September 5, 2019 — iHeartMedia, Inc. (NASDAQ: IHRT) announced today that Bob Pittman, the company’s Chairman and Chief Executive Officer, will participate in a question and answer session during the Goldman Sachs Communacopia Conference in New York, NY on Thursday September 19, 2019 at 10:30 a.m. Eastern Time.

A live webcast of the session will be available to the general public through a link on the Investors homepage of iHeartMedia’s website (https://investors.iheartmedia.com/). A replay of the audio webcast will be available in the Events & Presentation section of iHeartMedia’s Investors homepage.

 

 

IHM Keywords
IHM Press Release Date
IHM Press Category

iHeartMedia, Inc. Reports Results For 2019 Second Quarter

San Antonio, TX, August 15, 2019 –iHeartMedia, Inc. (NASDAQ: IHRT) today reported financial results for the quarter ended June 30, 2019.  IHRT successfully emerged from Chapter 11 on May 1, 2019 with a streamlined capital structure and completed the listing of its shares on the NASDAQ stock exchange (ticker: “IHRT”) on July 18, 2019.

Financial Highlights

Second Quarter

  • Revenue of $913.3 million, up 2.4% year-over-year
    • Excluding political revenue1, revenue increased 3.9%
    • Digital revenue increased 32.8% year-over-year 
  • Operating income of $181.6 million was up 0.2% year-over-year
  • Adjusted EBITDA1of $262.9 million, up 3.2% year-over-year
  • Adjusted EBITDA margins1improved to 28.8% from 28.6%, up 20 basis points year-over-year

 

Year-to-Date

  • Revenue of $1,709.1 million, up 2.7% year-over-year
    • Excluding political revenue1, revenue increased 3.7%
    • Digital revenue increased 30.6% year-over-year 
  • Operating income of $200.7 million was down from $243.3 million in the six months ended June 30, 2018 due to non-cash impairment charge of $91.4 million in first quarter of 2019
  • Adjusted EBITDA1of $419.9 million, up 6.4% year-over-year
  • Adjusted EBITDA margins1improved to 24.6% from 23.7%, up 90 basis points year-over-year

 

2019 Full Year Guidance

  • Reaffirming consolidated revenue growth of low single digits
  • Adjusted EBITDA margins expected to be 27-29% 
  • Expect to generate free cash flow of $250-$275 million in the second half of the year, resulting in expected cash at year-end of $375-$400 million
    • Available cash anticipated to be used primarily for debt reduction

 

1See Supplemental Disclosure Regarding Non-GAAP Financial Information.

“iHeartMedia is the number one audio company in America and the only true multi-platform audio company able to reach consumers at scale,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. “There are two segments of the audio sector -- radio, which provides companionship and connection when people want to join the world; and the music collection segment, which people use when they want to tune out and escape the world.   As the leader in the radio, or companionship, segment of the audio sector, iHeartMedia uses its unparalleled reach and consumer connection to deliver a compelling experience for our audiences and revenue opportunities across our multiple platforms.  As we look ahead, iHeartMedia intends to increase our share of radio advertising spend, participate in TV and digital advertising revenue pools, extend our leadership in podcasting and drive sponsorship revenue.”

“We successfully emerged from Chapter 11 on May 1, 2019 and are pleased that the restructuring process resulted in a capital structure that matches our successful operating business. We now have an iHeart business that will focus exclusively on increasing our lead as the number one audio company in the U.S.  As demonstrated in our results, iHeartMedia’s increased revenue and overall positive financial performance reflects the resilience and growth of our businesses and the value of our recent investments, particularly in podcasting and data and analytics,” said Rich Bressler, President, Chief Operating Officer, and Chief Financial Officer. “We are focused on building long-term shareholder value through a combination of operational and capital structure initiatives and we are prioritizing de-leveraging in our capital allocation policies.”

Key Operational Highlights

 

Continued to outperform the broadcast radio industry

 

  • Outperformed the broadcast radio industry by over 350 basis points this year alone, according to Miller Kaplan.
  • iHeartMedia is ranked #1 in over 4 times more markets than the next largest broadcast group in its top 160 markets.  
  • iHeartMedia reaches 275 million Americans - more than the top two closest broadcast radio competitors combined.

 

Extended leadership in the fast-growing podcast segment

 

  • #1 commercial podcaster in America measured by monthly downloads and unique listeners as measured by Podtrac.
  • More than 300% growth in podcast listeners on the iHeartRadio app in the last year.
  • Expanded unique monthly podcast audience by 277% year over year - faster than any other major company. 
  • Launched new original podcasts on iHeartRadio, including “Insomniac,” hosted by Scott Benjamin, “Sleepwalkers,” hosted by Emmy and Peabody Award winner Oz Woloshyn and co-hosted by Karah Preiss, former host of The Huffington Post science show “Talk Nerdy To Me,” and “Life Will Be the Death of Me,” hosted by comedian Chelsea Handler. 

Produced events that enhance artist partnerships, provide crossover promotions for our stations and deliver unique brand building and activation opportunities to advertisers

  • Announced the lineup for the “2019 iHeartRadio Music Festival,” the annual two-day event hosted at Las Vegas’ T-Mobile Arena, which will be broadcast live via iHeartMedia radio stations across more than 150 markets and will air on a televised special on The CW Network and will be live-streamed on The CW App.
  • Hosted the “2019 iHeartRadio Wango Tango Presented by The JUVÉDERM® Collection of Dermal Fillers” at the Dignity Health Sports Park in Los Angeles, which was exclusively broadcast in a 90-minute television special on Freeform, livestreamed by LiveXLive, and aired on iHeartMedia radio stations across 100 markets.
  • Showcased Country music’s biggest superstars at the sixth annual “iHeartCountry Festival Presented by Capital One®” at the Frank Erwin Center in Austin, Texas, which was broadcasted live in over 100+ local markets and on iHeartRadio.com, as well as livestreamed exclusively on LiveXLive.

Expanded our reach through digital and social channels

  • Posted our 12thconsecutive month of year-over-year total listening hours growth, as of June 2019.
  • Finished the quarter with more than 130 million registered users on the iHeartRadio app.
  • Recorded 13 million monthly unique visitors on Snapchat and 23 million monthly unique visitors on YouTube. 

 

Consolidated Results of Operations

GAAP and Non-GAAP Measures

 

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined2

 

Predecessor Company

 

 

 

Period from May 2, 2019 through June 30,

 

 

Period from April 1, 2019 through May 1,

 

Three Months Ended June 30,

 

Three Months Ended June 30,

 

%

 

2019

 

 

2019

 

2019

 

2018

 

Change

Revenue

$

635,646

 

 

 

$

277,674

 

 

$

913,320

 

 

$

891,764

 

 

2.4

%

Operating income

$

133,688

 

 

 

$

47,891

 

 

$

181,579

 

 

$

181,239

 

 

0.2

%

Net income (loss)

$

38,793

 

 

 

$

11,298,524

 

 

$

11,337,317

 

 

$

(69,899

)

 

nm

Adjusted EBITDA1

$

194,753

 

 

 

$

68,097

 

 

$

262,850

 

 

$

254,784

 

 

3.2

%

 

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined2

 

Predecessor Company

 

 

 

Period from May 2, 2019 through June 30,

 

 

Period from January 1, 2019 through May 1,

 

Six Months Ended June 30,

 

Six Months Ended June 30,

 

%

 

2019

 

 

2019

 

2019

 

2018

 

Change

Revenue

$

635,646

 

 

 

$

1,073,471

 

 

$

1,709,117

 

 

$

1,664,536

 

 

2.7

%

Operating income

$

133,688

 

 

 

$

67,040

 

 

$

200,728

 

 

$

243,349

 

 

(17.5

)%

Net income (loss)

$

38,793

 

 

 

$

11,184,141

 

 

$

11,222,934

 

 

$

(486,893

)

 

nm

Adjusted EBITDA1

$

194,753

 

 

 

$

225,149

 

 

$

419,902

 

 

$

394,758

 

 

6.4

%

Certain prior period amounts have been reclassified to conform to the 2019 presentation of financial information throughout the press release.

  1. See the end of this press release for reconciliations of (i) Adjusted EBITDA to net income (loss) and (ii) revenue, excluding political advertising revenue, to revenue. See also the definition of Adjusted EBITDA and Adjusted EBITDA margin under the Supplemental Disclosure section in this release.
  2. See Supplemental Disclosure Regarding Non-GAAP Financial Information.

As of June 30, 2019, we had 145,274,997 common shares and warrants outstanding, including 56,873,782 shares of Class A Common Stock, 6,947,567 shares of Class B Common Stock and 81,453,648 special warrants. The Class B Common Stock and the special warrants are convertible on a 1:1 basis into shares of Class A Common Stock, upon satisfaction of certain conditions.

Second Quarter 2019 Results

Revenue increased $21.6 million, or 2.4%, during the second quarter of 2019 as compared to the second quarter of 2018. Revenue increased as a result of higher digital revenue which increased $22.5 million driven by growth in podcasting, primarily as a result of our acquisition of Stuff Media in October 2018, as well as other digital revenue, including live radio and other on-demand services.  Broadcast spot revenue decreased $7.8 million, primarily driven by an $8.1 million decrease in political revenue as a result of 2018 being a mid-term congressional election year, partially offset by increased programmatic buying by our national customers.  Revenue from our Network businesses, including both Premiere and Total Traffic & Weather, increased $8.9 million, and Audio and Media Services revenue decreased $2.9 million as a result of a $4.1 million decrease in political revenue.

Direct operating expenses increased $13.1 million, or 5.0%, during the second quarter of 2019 as compared to the second quarter of 2018.  Higher direct operating expenses were driven primarily by higher variable expenses, including digital royalties, content costs and production expenses from higher podcasting and digital subscription revenue.  We also incurred a $1.2 million increase as a result of the application of fresh start accounting, and a $1.2 million increase due to the impact of the adoption of the new leasing standard in the first quarter of 2019.  SG&A expenses increased $2.5 million, or 0.8%, during the second quarter of 2019 as compared to the second quarter of 2018. Higher employee costs, primarily driven by the acquisitions of Stuff Media and Jelli in the fourth quarter of 2018, were partially offset by lower commissions as a result of our revenue mix and by a $1.3 million impact as a result of the application of fresh start accounting.

Operating income increased $0.3 million, or 0.2%, during the second quarter of 2019 as compared to the second quarter of 2018.

Net income of $11.3 billion during the second quarter of 2019 was driven by a net gain of $9.5 billion recognized in relation to our emergence from bankruptcy and a $1.8 billion gain on disposal of our Outdoor business.

The Company's Adjusted EBITDA increased 3.2% to $262.9 million during the second quarter of 2019 as compared to the second quarter of 2018.

YTD 2019 Results

Revenue increased $44.6 million, or 2.7%, during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018. The increase in revenue is primarily due to higher digital revenue of $39.1 million driven by growth in podcasting, primarily as a result of our acquisition of Stuff Media in October 2018, as well as other digital revenue, including live radio and other on-demand services and revenue from our Network businesses, including both Premiere and Total Traffic & Weather, which increased $15.0 million.  Broadcast spot revenue decreased $10.7 million, primarily due to a $10.9 million decrease in political revenue as a result of 2018 being a mid-term congressional election year.  Audio and Media Services revenue decreased $0.9 million due to a $5.1 million decrease in political revenue.

Direct operating expenses increased $39.2 million, or 7.8%, during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018.  Higher direct operating expenses were driven primarily by higher digital royalties, content costs and compensation-related expenses from higher podcasting and digital subscription revenue, as well as higher production costs related to our events, including the iHeartRadio Music Awards. We also incurred a $2.4 million increase in lease expense due to the impact of the adoption of the new leasing standard in the first quarter of 2019.  SG&A expenses decreased $10.8 million, or 1.6%, during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018.  The decrease in our SG&A expenses was due to lower trade and barter expenses, primarily resulting from timing, partially offset by higher employee costs, primarily driven by the acquisitions of Stuff Media and Jelli in the fourth quarter of 2018. 

Operating income decreased $42.6 million, or 17.5%, during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018 as a result of a $91.4 million non-cash impairment charge recorded in the first quarter of 2019.

Net income of $11.2 billion in the six months ended June 30, 2019 was driven by a net gain of $9.5 billion recognized in relation to our emergence from bankruptcy and a $1.8 billion gain on disposal of our Outdoor business.

The Company's Adjusted EBITDA increased 6.4% to $419.9 million during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018.

Liquidity and Financial Position

As of June 30, 2019, we had $127.2 million of cash on our balance sheet.  We made cash interest payments of $137.5 million in the six months ended June 30, 2019 compared to $206.9 million in the six months ended June 30, 2018.  For the six months ended June 30, 2019, cash provided by operating activities was $43.0 million, cash used for investing activities was $278.9 million and cash used for financing activities was $56.2 million.

Capital expenditures for the six months ended June 30, 2019 were $53.6 million compared to $27.3 million in the six months ended June 30, 2018. We estimate total capital expenditures for 2019 to be between $110 million and $120 million.

Our emergence from bankruptcy resulted in a new capital structure with significantly lower levels of long-term debt and a corresponding decrease in debt service requirements after emergence compared to historical debt levels.  Our consolidated long-term debt decreased from $20.5 billion to approximately $5.8 billion.

Our primary sources of liquidity are cash on hand, which consisted of $127.2 million as of June 30, 2019, cash flow from operations and borrowing capacity under our ABL Facility. As of June 30, 2019, we had no borrowings outstanding under the ABL Facility, a borrowing base of $450.0 million and $59.2 million of outstanding letters of credit, resulting in $390.8 million of excess availability.  We expect that our primary uses of liquidity will be to fund our working capital, make interest payments and voluntary prepayments of principal payments on our long-term debt, capital expenditures and other obligations.

Over the past ten years, we have transitioned our Audio business from a single platform radio broadcast operator to a company with multiple platforms including podcasting, networks and live events. We have also invested in numerous technologies and businesses to increase the competitiveness of our inventory with our advertisers and our audience. We believe that our ability to generate cash flow from operations from these business initiatives and borrowing capacity under our ABL Facility, taken together, will provide sufficient resources to operate our businesses, fund capital expenditures and other obligations and make principal and interest payments on our long-term debt that will ultimately de-lever our balance sheet over time.

On August 7, 2019, we completed the sale of $750.0 million in aggregate principal amount of 5.25% Senior Secured Notes due 2027 (the "Notes") in a private placement. We used the net proceeds from the Notes, together with cash on hand, to prepay at par $740.0 million of borrowings outstanding under our Term Loan Facility.  Our Term Loan Facility called for quarterly principal payments of approximately $8.75 million in addition to interest payments at LIBOR + 4.00%.  As a result of our $740 million pre-payment, no such principal payments are required for the remaining term of the Term Loan Facility - resulting in an approximately $35 million annual reduction in required debt service payments.  In addition, annual cash interest payments are expected to be approximately $7 million lower than would have been required before the refinancing transaction.

Comparison of operating performance:

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined2

 

Predecessor Company

 

 

 

Period from May 2, 2019 through June 30,

 

 

Period from April 1, 2019 through May 1,

 

Three Months Ended June 30,

 

Three Months Ended June 30,

 

%

 

2019

 

 

2019

 

2019

 

2018

 

Change

Revenue

$

635,646

 

 

 

$

277,674

 

 

$

913,320

 

 

$

891,764

 

 

2.4

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

Direct operating expenses (excludes depreciation and amortization)

184,291

 

 

 

92,581

 

 

276,872

 

 

263,752

 

 

5.0

%

Selling, general and administrative expenses (excludes depreciation and amortization)

227,140

 

 

 

103,552

 

 

330,692

 

 

328,200

 

 

0.8

%

Corporate expenses (excludes depreciation and amortization)

34,390

 

 

 

18,979

 

 

53,369

 

 

52,478

 

 

1.7

%

Depreciation and amortization

59,383

 

 

 

14,544

 

 

73,927

 

 

64,877

 

 

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

Other operating income (expense), net

3,246

 

 

 

(127

)

 

3,119

 

 

(1,218

)

 

 

Operating income

$

133,688

 

 

 

$

47,891

 

 

$

181,579

 

 

$

181,239

 

 

 

Depreciation and amortization

59,383

 

 

 

14,544

 

 

73,927

 

 

64,877

 

 

 

Other operating expense (income), net

(3,246

)

 

 

127

 

 

(3,119

)

 

1,218

 

 

 

Non-cash compensation expense

1,889

 

 

 

5,430

 

 

7,319

 

 

6,856

 

 

 

Restructuring and reorganization expenses

3,039

 

 

 

105

 

 

3,144

 

 

594

 

 

 

Adjusted EBITDA1

194,753

 

 

 

68,097

 

 

262,850

 

 

254,784

 

 

 

 

 

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined2

 

Predecessor Company

 

 

 

Period from May 2, 2019 through June 30,

 

 

Period from January 1, 2019 through May 1,

 

Six Months Ended June 30,

 

Six Months Ended June 30,

 

%

 

2019

 

 

2019

 

2019

 

2018

 

Change

Revenue

$

635,646

 

 

 

$

1,073,471

 

 

$

1,709,117

 

 

$

1,664,536

 

 

2.7

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

Direct operating expenses (excludes depreciation and amortization)

184,291

 

 

 

359,696

 

 

543,987

 

 

504,818

 

 

7.8

%

Selling, general and administrative expenses (excludes depreciation and amortization)

227,140

 

 

 

436,345

 

 

663,485

 

 

674,292

 

 

(1.6

)%

Corporate expenses (excludes depreciation and amortization)

34,390

 

 

 

66,020

 

 

100,410

 

 

105,376

 

 

(4.7

)%

Depreciation and amortization

59,383

 

 

 

52,834

 

 

112,217

 

 

132,251

 

 

 

Impairment charges

 

 

 

91,382

 

 

91,382

 

 

 

 

 

Other operating income (expense), net

3,246

 

 

 

(154

)

 

3,092

 

 

(4,450

)

 

 

Operating income

$

133,688

 

 

 

$

67,040

 

 

$

200,728

 

 

$

243,349

 

 

 

Depreciation and amortization

59,383

 

 

 

52,834

 

 

112,217

 

 

132,251

 

 

 

Impairment

 

 

 

91,382

 

 

91,382

 

 

 

 

 

Other operating expense (income), net

(3,246

)

 

 

154

 

 

(3,092

)

 

4,450

 

 

 

Non-cash compensation expense

1,889

 

 

 

13,241

 

 

15,130

 

 

13,536

 

 

 

Restructuring and reorganization expenses

 

3,039

 

 

 

498

 

 

3,537

 

 

1,172

 

 

 

Adjusted EBITDA1

$

194,753

 

 

 

$

225,149

 

 

$

419,902

 

 

$

394,758

 

 

 

Certain prior period amounts have been reclassified to conform to the 2019 presentation of financial information throughout the press release.

  1. See the end of this press release for reconciliations of (i) Adjusted EBITDA to net income (loss) and (ii) revenue, excluding political advertising revenue, to revenue. See also the definition of Adjusted EBITDA under the Supplemental Disclosure section in this release.
  2. See Supplemental Disclosure Regarding Non-GAAP Financial Information.

TABLE 1 - Statements of Operations

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined

 

Predecessor Company

 

Period from May 2, 2019 through June 30,

 

 

Period from April 1, 2019 through May 1,

 

Three Months Ended June 30,

 

Three Months Ended June 30,

 

2019

 

 

2019

 

2019

 

2018

Revenue

$

635,646

 

 

 

$

277,674

 

 

$

913,320

 

 

$

891,764

 

Operating expenses:

 

 

 

 

 

 

 

 

Direct operating expenses (excludes depreciation and amortization)

184,291

 

 

 

92,581

 

 

276,872

 

 

263,752

 

Selling, general and administrative expenses (excludes depreciation and amortization)

227,140

 

 

 

103,552

 

 

330,692

 

 

328,200

 

Corporate expenses (excludes depreciation and amortization)

34,390

 

 

 

18,979

 

 

53,369

 

 

52,478

 

Depreciation and amortization

59,383

 

 

 

14,544

 

 

73,927

 

 

64,877

 

Other operating income (expense), net

3,246

 

 

 

(127

)

 

3,119

 

 

(1,218

)

Operating income

133,688

 

 

 

47,891

 

 

181,579

 

 

181,239

 

Interest expense

69,711

 

 

 

(400

)

 

69,311

 

 

10,613

 

Loss on investments, net

 

 

 

 

 

 

 

9,175

 

Equity in loss of nonconsolidated affiliates

(24

)

 

 

(59

)

 

(83

)

 

(32

)

Other income (expense), net

(9,157

)

 

 

150

 

 

(9,007

)

 

(2,058

)

Reorganization items, net

 

 

 

9,497,944

 

 

9,497,944

 

 

(68,740

)

Income from continuing operations before income taxes

54,796

 

 

 

9,546,326

 

 

9,601,122

 

 

108,971

 

Income tax benefit (expense)

(16,003

)

 

 

(100,289

)

 

(116,292

)

 

(142,032

)

Income (loss) from continuing operations

38,793

 

 

 

9,446,037

 

 

9,484,830

 

 

(33,061

)

Income (loss) from discontinued operations, net of tax

 

 

 

1,854,677

 

 

1,854,677

 

 

(33,229

)

Net income (loss)

38,793

 

 

 

11,300,714

 

 

11,339,507

 

 

(66,290

)

Less amount attributable to noncontrolling interest

 

 

 

2,190

 

 

2,190

 

 

3,609

 

Net income (loss) attributable to the Company

$

38,793

 

 

 

$

11,298,524

 

 

$

11,337,317

 

 

$

(69,899

)

 

 

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined

 

Predecessor Company

 

Period from May 2, 2019 through June 30,

 

 

Period from January 1, 2019 through May 1,

 

Six Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

 

2019

 

2019

 

2018

Revenue

$

635,646

 

 

 

$

1,073,471

 

 

$

1,709,117

 

 

$

1,664,536

 

Operating expenses:

 

 

 

 

 

 

 

 

Direct operating expenses (excludes depreciation and amortization)

184,291

 

 

 

359,696

 

 

543,987

 

 

504,818

 

Selling, general and administrative expenses (excludes depreciation and amortization)

227,140

 

 

 

436,345

 

 

663,485

 

 

674,292

 

Corporate expenses (excludes depreciation and amortization)

34,390

 

 

 

66,020

 

 

100,410

 

 

105,376

 

Depreciation and amortization

59,383

 

 

 

52,834

 

 

112,217

 

 

132,251

 

Impairment charges

 

 

 

91,382

 

 

91,382

 

 

 

Other operating income (expense), net

3,246

 

 

 

(154

)

 

3,092

 

 

(4,450

)

Operating income

133,688

 

 

 

67,040

 

 

200,728

 

 

243,349

 

Interest expense

69,711

 

 

 

(499

)

 

69,212

 

 

331,746

 

Loss on investments, net

 

 

 

(10,237

)

 

(10,237

)

 

9,175

 

Equity in loss of nonconsolidated affiliates

(24

)

 

 

(66

)

 

(90

)

 

(63

)

Other expense, net

(9,157

)

 

 

23

 

 

(9,134

)

 

(22,474

)

Reorganization items, net

 

 

 

9,461,826

 

 

9,461,826

 

 

(260,795

)

Income (loss) from continuing operations before income taxes

54,796

 

 

 

9,519,085

 

 

9,573,881

 

 

(362,554

)

Income tax benefit (expense)

(16,003

)

 

 

(39,095

)

 

(55,098

)

 

20,701

 

Income (loss) from continuing operations

38,793

 

 

 

9,479,990

 

 

9,518,783

 

 

(341,853

)

Loss from discontinued operations, net of tax

 

 

 

1,685,123

 

 

1,685,123

 

 

(157,477

)

Net income (loss)

38,793

 

 

 

11,165,113

 

 

11,203,906

 

 

(499,330

)

Less amount attributable to noncontrolling interest

 

 

 

(19,028

)

 

(19,028

)

 

(12,437

)

Net income (loss) attributable to the Company

$

38,793

 

 

 

$

11,184,141

 

 

$

11,222,934

 

 

$

(486,893

)

 

 

TABLE 2 - Selected Balance Sheet Information

Selected balance sheet information for June 30, 2019 and December 31, 2018:

 

Successor Company

 

 

Predecessor Company

(In millions)

June 30, 2019

 

 

December 31, 2018

Cash

$

127.2

 

 

 

$

224.0

 

Total Current Assets

1,113.7

 

 

 

2,235.0

 

Net Property, Plant and Equipment

834.2

 

 

 

502.2

 

Total Assets

10,997.8

 

 

 

12,269.5

 

Current Liabilities (excluding current portion of long-term debt)

672.2

 

 

 

1,201.5

 

Long-term Debt (including current portion of long-term debt)

5,810.5

 

 

 

46.1

 

Shareholders’ Equity (Deficit)

2,820.0

 

 

 

(11,560.3

)

Included within the Predecessor Company's Consolidated Balance Sheet as of December 31, 2018 were current assets, long-term assets, current liabilities and long-term liabilities of $1,015.8 million, $3,351.5 million, $729.8 million and $5,872.3 million, respectively, of the Company's Outdoor business classified as discontinued operations.

 

 

TABLE 3 - Total Debt

At June 30, 2019 and December 31, 2018, iHeartMedia, Inc. had total debt and cash and cash equivalents of:

(In millions)

Successor Company

 

 

Predecessor Company

 

June 30, 2019

 

 

December 31, 2018

Term Loan Facility due 2026(1)

$

3,498.2

 

 

 

$

 

Debtors-in-Possession Facility(2)

 

 

 

 

Asset-based Revolving Credit Facility due 2023(2)

 

 

 

 

6.375% Senior Secured Notes due 2026

800.0

 

 

 

 

Other Secured Subsidiary Debt

4.4

 

 

 

 

Total Secured Debt

4,302.6

 

 

 

 

 

 

 

 

 

8.375% Senior Unsecured Notes due 2027

1,450.0

 

 

 

 

Other Subsidiary Debt

57.9

 

 

 

46.1

 

Purchase accounting adjustments and original issue discount

 

 

 

 

Long-term debt fees

 

 

 

 

Liabilities subject to compromise(3)

 

 

 

15,149.5

 

Total Debt

5,810.5

 

 

 

15,195.6

 

Less:  Cash and cash equivalents

127.2

 

 

 

224.0

 

 

$

5,683.3

 

 

 

$

14,971.6

 

1On August 7, 2019, we completed the sale of $750.0 million in aggregate principal amount of 5.25% Senior Secured Notes due 2027 (the "Notes") in a private placement. We used the net proceeds from the Notes, together with cash on hand, to prepay at par $740.0 million of borrowings outstanding under our term loan facility.

2The Debtors-in-Possession Facility (the "DIP Facility"), which terminated with our emergence from the Chapter 11 Cases, provided for borrowings of up to $450.0 million. Upon the effectiveness of the Plan of Reorganization on May 1, 2019, the DIP Facility was repaid and canceled and we entered into the Asset-based Revolving Credit Facility (the "ABL Facility"). As of June 30, 2019, we had a facility size of $450.0 million under iHeartCommunications' ABL Facility, had no outstanding borrowings and had $59.2 million of outstanding letters of credit, resulting in $390.8 million of excess availability.

3In connection with our Chapter 11 Cases, the $6.3 billion outstanding under the Senior Secured Credit Facilities, the $1,999.8 million outstanding under the 9.0% Priority Guarantee Notes due 2019, the $1,750.0 million outstanding under the 9.0% Priority Guarantee Notes due 2021, the $870.5 million of 11.25% Priority Guarantee Notes due 2021, the $1,000.0 million outstanding under the 9.0% Priority Guarantee Notes due 2022, the $950.0 million outstanding under the 10.625% Priority Guarantee Notes due 2023, $6.0 million outstanding Other Secured Subsidiary Debt, the $1,781.6 million outstanding under the 14.0% Senior Notes due 2021, the $475.0 million outstanding under the Legacy Notes and $10.8 million outstanding Other Subsidiary Debt were reclassified to Liabilities subject to compromise in our Consolidated Balance Sheet during the Predecessor period.

The current portion of long-term debt was $53.4 million and $46.1 million as of June 30, 2019 and December 31, 2018, respectively.

On May 1, 2019, in accordance with the Plan of Reorganization iHeart Operations, Inc., a wholly-owned subsidiary, issued and sold 60,000 shares of Series A Perpetual Preferred Stock for net proceeds of $58.4 million.  The Series A Preferred Stock is mandatorily redeemable in ten years and is therefore classified as debt on our balance sheet, with dividends treated as interest expense.

Supplemental Disclosure Regarding Non-GAAP Financial Information

The following tables set forth the Company’s Adjusted EBITDA for the three months and six months ended June 30, 2019 and 2018. Adjusted EBITDA is defined as consolidated Operating income adjusted to exclude restructuring and reorganization expenses included within Direct operating expenses, Selling, General and Administrative expenses, (“SG&A”) and Corporate expenses and non-cash compensation expenses included within Corporate expenses, as well as the following line items presented in our Statements of Operations: Depreciation and amortization; Impairment charges; and Other operating income (expense), net. Alternatively, Adjusted EBITDA is calculated as Consolidated net income (loss), adjusted to exclude Income tax (benefit) expense, Interest expense, Depreciation and amortization, Reorganization items, net, Other (income) expense, net, Loss on investments, net, Equity in earnings (loss) of nonconsolidated affiliates, Impairment charges, Other operating (income) expense, net, share-based compensation, and restructuring and reorganization expenses. Restructuring expenses primarily include severance expenses incurred in connection with cost savings initiatives and other expenses for matters management does not believe to be indicative of on-going operations. Reorganization expenses primarily include the amortization of retention bonus amounts paid or payable to certain members of management directly as a result of the Reorganization.

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 this measure 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 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, the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded.

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.

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.

As required by the SEC rules, the Company provides reconciliations below to the most directly comparable amounts reported under GAAP, including (i) Adjusted EBITDA to net income (loss) and (ii) revenue, excluding political advertising revenue, to revenue.

Predecessor - Successor Presentation

Our financial results for the periods from April 1, 2019 through May 1, 2019, from January 1, 2019 through May 1, 2019 and for the three and six months ended June 30, 2018 are referred to as those of the “Predecessor” period. Our financial results for the period from May 2, 2019 through June 30, 2019 are referred to as those of the “Successor” period. Our results of operations as reported in our Consolidated Financial Statements for these periods are prepared in accordance with GAAP. Although GAAP requires that we report on our results for the period from April 1, 2019 through May 1, 2019, from January 1, 2019 through May 1, 2019 and the period from May 2, 2019 through June 30, 2019 separately, management views the Company’s operating results for the three and six months ended June 30, 2019 by combining the results of the applicable Predecessor and Successor periods because such presentation provides the most meaningful comparison of our results to prior periods.

The Company cannot adequately benchmark the operating results of the period from May 2, 2019 through June  30, 2019 against any of the previous periods reported in its Consolidated Financial Statements without combining it with the period from April 1, 2019 through May 1, 2019 and the period from January 1, 2019 through May 1, 2019 and does not believe that reviewing the results of this period in isolation would be useful in identifying trends in or reaching conclusions regarding the Company’s overall operating performance. Management believes that the key performance metrics such as revenue, operating income and Adjusted EBITDA for the Successor period when combined with the Predecessor period provides more meaningful comparisons to other periods and are useful in identifying current business trends. Accordingly, in addition to presenting our results of operations as reported in our Consolidated Financial Statements in accordance with GAAP, the tables and discussion included within this release also present the combined results for the three and six months ended June 30, 2019.

The combined results for the three months ended June 30, 2019, which we refer to herein as the results for the "three months ended June 30, 2019" represent the sum of the reported amounts for the Predecessor period from April 1, 2019 through May 1, 2019 and the Successor period from May 2, 2019 through June 30, 2019.  The combined results for the six months ended June 30, 2019, which we refer to herein as the results for the "six months ended June 30, 2019" represent the sum of the reported amounts for the Predecessor period from January 1, 2019 through May 1, 2019 and the Successor period from May 2, 2019 through June 30, 2019. These combined results are not considered to be prepared in accordance with GAAP and have not been prepared as pro forma results per applicable regulations. The combined operating results do not reflect the actual results we would have achieved absent our emergence from bankruptcy and may not be indicative of future results.

 

 

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined

 

Predecessor Company

 

Period from May 2, 2019 through June 30,

 

 

Period from April 1, 2019 through May 1,

 

Three Months Ended June 30,

 

Three Months Ended June 30,

 

2019

 

 

2019

 

2019

 

2018

Net income (loss)

$

38,793

 

 

 

$

11,300,714

 

 

$

11,339,507

 

 

$

(66,290

)

(Income) loss from discontinued operations, net of tax

 

 

 

(1,854,677

)

 

(1,854,677

)

 

33,229

 

Income tax (benefit) expense

16,003

 

 

 

100,289

 

 

116,292

 

 

142,032

 

Interest expense

69,711

 

 

 

(400

)

 

69,311

 

 

10,613

 

Depreciation and amortization

59,383

 

 

 

14,544

 

 

73,927

 

 

64,877

 

EBITDA from continuing operations

$

183,890

 

 

 

$

9,560,470

 

 

$

9,744,360

 

 

$

184,461

 

Reorganization items, net

 

 

 

(9,497,944

)

 

(9,497,944

)

 

68,740

 

(Gain) loss on investments, net

 

 

 

 

 

 

 

(9,175

)

Other (income) expense, net

9,157

 

 

 

(150

)

 

9,007

 

 

2,058

 

Equity in (earnings) loss of nonconsolidated affiliates

24

 

 

 

59

 

 

83

 

 

32

 

Impairment charges

 

 

 

 

 

 

 

 

Other operating (income) expense, net

(3,246

)

 

 

127

 

 

(3,119

)

 

1,218

 

Share-based compensation

3,039

 

 

 

105

 

 

3,144

 

 

594

 

Restructuring and reorganization expenses

1,889

 

 

 

5,430

 

 

7,319

 

 

6,856

 

Adjusted EBITDA from continuing operations

$

194,753

 

 

 

$

68,097

 

 

$

262,850

 

 

$

254,784

 

 

 

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined

 

Predecessor Company

 

Period from May 2, 2019 through June 30,

 

 

Period from January 1, 2019 through May 1,

 

Six Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

 

2019

 

2019

 

2018

Net income (loss)

$

38,793

 

 

 

$

11,165,113

 

 

$

11,203,906

 

 

$

(499,330

)

(Income) loss from discontinued operations, net of tax

 

 

 

(1,685,123

)

 

(1,685,123

)

 

157,477

 

Income tax (benefit) expense

16,003

 

 

 

39,095

 

 

55,098

 

 

(20,701

)

Interest expense

69,711

 

 

 

(499

)

 

69,212

 

 

331,746

 

Depreciation and amortization

59,383

 

 

 

52,834

 

 

112,217

 

 

132,251

 

EBITDA from continuing operations

$

183,890

 

 

 

$

9,571,420

 

 

$

9,755,310

 

 

$

101,443

 

Reorganization items, net

 

 

 

(9,461,826

)

 

(9,461,826

)

 

260,795

 

(Gain) loss on investments, net

 

 

 

10,237

 

 

10,237

 

 

(9,175

)

Other (income) expense, net

9,157

 

 

 

(23

)

 

9,134

 

 

22,474

 

Equity in (earnings) loss of nonconsolidated affiliates

24

 

 

 

66

 

 

90

 

 

63

 

Impairment charges

 

 

 

91,382

 

 

91,382

 

 

 

Other operating (income) expense, net

(3,246

)

 

 

154

 

 

(3,092

)

 

4,450

 

Share-based compensation

3,039

 

 

 

498

 

 

3,537

 

 

1,172

 

Restructuring and reorganization expenses

1,889

 

 

 

13,241

 

 

15,130

 

 

13,536

 

Adjusted EBITDA from continuing operations

$

194,753

 

 

 

$

225,149

 

 

$

419,902

 

 

$

394,758

 

 

 

Reconciliation of Revenue, excluding Political Advertising Revenue, to Revenue

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined

 

Predecessor Company

 

 

 

Period from May 2, 2019 through June 30,

 

 

Period from April 1, 2019 through May 1,

 

Three Months Ended June 30,

 

Three Months Ended June 30,

 

%
Change

 

2019

 

 

2019

 

2019

 

2018

 

Consolidated revenue

$

635,646

 

 

 

$

277,674

 

 

$

913,320

 

 

$

891,764

 

 

2.4

%

Excluding: Political revenue

(3,196

)

 

 

(1,696

)

 

(4,892

)

 

(17,088

)

 

 

Consolidated revenue, excluding effects of political revenue

$

632,450

 

 

 

$

275,978

 

 

$

908,428

 

 

$

874,676

 

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

Audio revenue

$

596,230

 

 

 

$

260,461

 

 

$

856,691

 

 

$

831,948

 

 

3.0

%

Excluding: Political revenue

(2,669

)

 

 

(1,360

)

 

(4,029

)

 

(12,112

)

 

 

Audio revenue excluding, effects of political revenue

$

593,561

 

 

 

$

259,101

 

 

$

852,662

 

 

$

819,836

 

 

4.0

%

 

 

 

 

 

 

 

 

 

 

 

Audio & media services revenue

$

40,537

 

 

 

$

17,970

 

 

$

58,507

 

 

$

61,417

 

 

(4.7

)%

Excluding: Political revenue

(527

)

 

 

(336

)

 

(863

)

 

(4,976

)

 

 

Audio & media services revenue, excluding effects of political revenue

$

40,010

 

 

 

$

17,634

 

 

$

57,644

 

 

$

56,441

 

 

2.1

%

 

 

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined

 

Predecessor Company

 

 

 

Period from May 2, 2019 through June 30,

 

 

Period from January 1, 2019 through May 1,

 

Six Months Ended June 30,

 

Six Months Ended June 30,

 

%

Change

 

2019

 

 

2019

 

2019

 

2018

 

Consolidated revenue

$

635,646

 

 

 

$

1,073,471

 

 

$

1,709,117

 

 

$

1,664,536

 

 

2.7

%

Excluding: Political revenue

(3,196

)

 

 

(4,777

)

 

(7,973

)

 

(24,084

)

 

 

Consolidated revenue, excluding effects of political revenue

$

632,450

 

 

 

$

1,068,694

 

 

$

1,701,144

 

 

$

1,640,452

 

 

3.7

%

 

 

 

 

 

 

 

 

 

 

 

Audio revenue

$

596,230

 

 

 

$

1,006,677

 

 

$

1,602,907

 

 

$

1,557,050

 

 

2.9

%

Excluding: Political revenue

(2,669

)

 

 

(3,980

)

 

(6,649

)

 

(17,558

)

 

 

Audio revenue excluding, effects of political revenue

$

593,561

 

 

 

$

1,002,697

 

 

$

1,596,258

 

 

$

1,539,492

 

 

3.7

%

 

 

 

 

 

 

 

 

 

 

 

Audio & media services revenue

$

40,537

 

 

 

$

69,362

 

 

$

109,899

 

 

$

110,759

 

 

(0.8

)%

Excluding: Political revenue

(527

)

 

 

(797

)

 

(1,324

)

 

(6,526

)

 

 

Audio & media services revenue, excluding effects of political revenue

$

40,010

 

 

 

$

68,565

 

 

$

108,575

 

 

$

104,233

 

 

4.2

%

 

 

Revenue Streams

The tables below present the comparison of our historical revenue streams for the periods presented:

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined

 

Predecessor Company

 

 

 

Period from May 2, 2019 through June 30,

 

 

Period from April 1, 2019 through May 1,

 

Three Months Ended June 30,

 

Three Months Ended June 30,

 

%

 

2019

 

 

2019

 

2019

 

2018

 

Change

Broadcast Radio

$

390,540

 

 

 

$

170,632

 

 

$

561,172

 

 

$

568,968

 

 

(1.4

)%

Digital

64,238

 

 

 

26,840

 

 

91,078

 

 

68,574

 

 

32.8

%

Networks

105,426

 

 

 

50,889

 

 

156,315

 

 

146,981

 

 

6.4

%

Sponsorship and Events

31,790

 

 

 

10,617

 

 

42,407

 

 

41,256

 

 

2.8

%

Audio and Media Services

40,537

 

 

 

17,970

 

 

58,507

 

 

61,417

 

 

(4.7

)%

Other

4,236

 

 

 

1,483

 

 

5,719

 

 

6,169

 

 

(7.3

)%

Eliminations

(1,121

)

 

 

(757

)

 

(1,878

)

 

(1,601

)

 

 

  Revenue, total

$

635,646

 

 

 

$

277,674

 

 

$

913,320

 

 

$

891,764

 

 

2.4

%

 

 

(In thousands)

Successor Company

 

 

Predecessor Company

 

Non-GAAP Combined

 

Predecessor Company

 

 

 

Period from May 2, 2019 through June 30,

 

 

Period from January 1, 2019 through May 1,

 

Six Months Ended June 30,

 

Six Months Ended June 30,

 

%

 

2019

 

 

2019

 

2019

 

2018

 

Change

Broadcast Radio

$

390,540

 

 

 

$

657,864

 

 

$

1,048,404

 

 

$

1,059,111

 

 

(1.0

)%

Digital

64,238

 

 

 

102,789

 

 

167,027

 

 

127,941

 

 

30.6

%

Networks

105,426

 

 

 

189,088

 

 

294,514

 

 

279,032

 

 

5.5

%

Sponsorship and Events

31,790

 

 

 

50,330

 

 

82,120

 

 

79,148

 

 

3.8

%

Audio and Media Services

40,537

 

 

 

69,362

 

 

109,899

 

 

110,759

 

 

(0.8

)%

Other

4,236

 

 

 

6,606

 

 

10,842

 

 

11,818

 

 

(8.3

)%

Eliminations

(1,121

)

 

 

(2,568

)

 

(3,689

)

 

(3,273

)

 

 

  Revenue, total

$

635,646

 

 

 

$

1,073,471

 

 

$

1,709,117

 

 

$

1,664,536

 

 

2.7

%

 

Conference Call

iHeartMedia, Inc. will host a conference call to discuss results on August 15, 2019, at 8:30 a.m. Eastern Time. The conference call number is (800) 230-1059 (U.S. callers) and (612) 234-9959 (International callers) and the passcode for both is 470499. A live audio webcast of the conference call will also be available on the Investors homepage of iHeartMedia's website investor.iheartmedia.com. After the live conference call, a replay will be available for a period of thirty days. The replay numbers are (800) 475-6701 (U.S. callers) and (320) 365-3844 (International callers) and the passcode for both is 470799. An archive of the webcast will be available beginning 24 hours after the call for a period of thirty days.

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 factors which may cause the actual results, performance or achievements of iHeartMedia, Inc. and its subsidiaries, including iHeartMedia Capital I, LLC and iHeartCommunications, Inc., 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. In addition, any statements that refer to expectations or other characterizations of future events or circumstances, such as statements about our business plans, strategies and initiatives, our expectations about certain markets and our liquidity, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. 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. Various 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, including in the section entitled “Item 1A. Risk Factors” of iHeartMedia, Inc.’s Annual Reports on Form 10-K and 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.

IHM Keywords
IHM Press Release Date
IHM Press Category

iHeartMedia, Inc. to Report Quarterly Financial Results on August 15, 2019

New York, NY -- August 2, 2019—iHeartMedia, Inc. (NASDAQ: IHRT) announced today that on Thursday, August 15, 2019, it will issue financial results for the quarter ending June 30, 2019. The company will conduct a conference call at 8:30 a.m. (ET), following the release of its earnings announcement.

A live audio webcast of the call will be available on the Investors homepage of iHeartMedia’s website (https://investor.iheartmedia.com/) beginning at 8:30 a.m. (ET) on August 15th. The conference call can also be accessed by dialing (800) 230-1059 (domestic) or (612) 234-9959 (international) using PIN number 470499. Please call five minutes in advance to ensure that you are connected prior to the call.

An audio replay of the call will be available beginning at 10:30 a.m. (ET) on August 15th in the Events & Presentations section of iHeartMedia’s Investors home page, and at (800) 475-6701 (domestic) or (320) 365-3844 (international) using PIN number 470499.

The earnings release and any other information related to the call will be accessible on the Investors home page of iHeartMedia’s website.

IHM Press Release Date
IHM Press Category

iHeartMedia, Inc. Announces Upsize and Pricing of Offering of 5.25% Senior Secured Notes Due 2027

San Antonio, TX, August 1, 2019 – iHeartMedia, Inc. (NASDAQ: IHRT) (the “Company”) announced today that its indirect, wholly-owned subsidiary, iHeartCommunications, Inc. (“iHeartCommunications”), upsized and priced an offering of $750,000,000 aggregate principal amount of 5.25% Senior Secured Notes due 2027 (the “Notes”), an upsize of $250,000,000 over the amount previously announced. The issuance and sale of the Notes is expected to be completed on August 7, 2019, subject to customary closing conditions.

The Notes will be guaranteed on a senior secured basis by iHeartCommunications’ direct parent, iHeartMedia Capital I, LLC, and the subsidiaries of iHeartCommunications that guarantee iHeartCommunications’ term loan facility. The Notes and the related guarantees will be secured, subject to permitted liens and certain other exceptions, by a first priority lien on substantially all of the assets of iHeartCommunications and the guarantors (other than accounts receivable and related assets), and by a second priority lien on accounts receivable and related assets.

iHeartCommunications intends to use the proceeds from the Notes, together with cash on hand, to prepay at par a portion of the outstanding borrowings under its term loan facility, to pay accrued and unpaid interest thereon to, but excluding, the date of prepayment, and to pay fees and expenses related to the offering of the Notes and the use of proceeds therefrom.

The Notes and related guarantees will be offered only to persons reasonably believed to be “qualified institutional buyers” in reliance on the exemption from registration pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to persons outside of the United States in compliance with Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities and foreign securities laws.

This press release is for informational purposes only and shall not constitute an offer to sell nor the solicitation of an offer to buy the Notes or any other securities. The offering is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful.

Forward-Looking Statements

This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain words such as “may,” “will,” “intend,” “expect,” “believe,” “would,” “estimate,” “continue,” or “future,” or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements.

IHM Press Release Date
IHM Press Category

iHeartMedia, Inc. Announces Proposed Private Offering Of Senior Secured Notes

San Antonio, TX, August 1, 2019– iHeartMedia, Inc. (NASDAQ: IHRT) announced today that its indirect, wholly-owned subsidiary, iHeartCommunications, Inc. (“iHeartCommunications”), will offer, subject to market and customary conditions, $500,000,000 aggregate principal amount of Senior Secured Notes due 2027 (the “Notes”) in a private offering that is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”).

The Notes will be guaranteed on a senior secured basis by iHeartCommunications’ direct parent, iHeartMedia Capital I, LLC, and the subsidiaries of iHeartCommunications that guarantee iHeartCommunications’ term loan facility. The Notes and the related guarantees will be secured, subject to permitted liens and certain other exceptions, by a first priority lien on substantially all of the assets of iHeartCommunications and the guarantors (other than accounts receivable and related assets), and by a second priority lien on accounts receivable and related assets.

iHeartCommunications intends to use the proceeds from the Notes, together with cash on hand, to prepay at par a portion of the outstanding borrowings under its term loan facility, to pay accrued and unpaid interest thereon to, but excluding, the date of prepayment, and to pay fees and expenses related to the offering of the Notes and the use of proceeds therefrom.

The Notes and related guarantees will be offered only to persons reasonably believed to be “qualified institutional buyers” in reliance on the exemption from registration pursuant to Rule 144A under the Securities Act and to persons outside of the United States in compliance with Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities and foreign securities laws.

This press release is for informational purposes only and shall not constitute an offer to sell nor the solicitation of an offer to buy the Notes or any other securities. The offering is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful. 

 

Forward-Looking Statements

This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain words such as “may,” “will,” “intend,” “expect,” “believe,” “would,” “estimate,” “continue,” or “future,” or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements.

IHM Keywords
IHM Press Release Date
IHM Press Category

iHeartMedia to Ring the NASDAQ Stock Market Opening Bell

New York, NY – July 18, 2019 – iHeartMedia, Inc. announced that Chairman and Chief Executive Officer Bob Pittman and President, COO and CFO Rich Bressler will ring the opening bell today, July 18, to commemorate the listing of the Company’s Class A common stock on the NASDAQ Global Select Market. The stock will begin trading today under the ticker “IHRT.”

The opening bell will ring at 9:30 a.m. ET and the ceremony can be viewed live at https://new.livestream.com/nasdaq/live.

IHM Press Release Date
IHM Press Category

iHeartMedia Announces It Has Been Approved for Listing on the NASDAQ Global Select Market

New York, NY -- June 28, 2019 – iHeartMedia, Inc. (OTC PINK: IHTM) today announced that its Class A common stock has been approved for listing on the NASDAQ Global Select Market. Upon listing, iHeartMedia’s Class A common stock will trade under the ticker “IHRT.”

As previously announced, iHeart had been evaluating all paths to achieve a listing of its Class A common stock on a recognized U.S. stock exchange following emergence from its restructuring process. iHeartMedia has determined that a listing on the NASDAQ Global Select Market is the optimal strategy for iHeartMedia and all of the company’s stakeholders.

As a result, the Company has requested the withdrawal of its previously filed registration statement on Form S-1 with the U.S. Securities and Exchange Commission. iHeartMedia’s management team will be meeting with investors the week of July 15 in advance of a listing date of July 18, 2019.

“This is an exciting time for our company and an important step in the evolution of iHeartMedia. Our listing on the NASDAQ will provide greater liquidity for existing shareholders, allow us to diversify our investor base, and give us improved access to public capital markets in the future,” said Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc.

 

IHM Keywords
IHM Press Release Date
IHM Press Category