On November 9, 2023, Audacy Inc (AUDA, Financial) released its financial results for the third quarter ended September 30, 2023. The company reported a decline in net revenues of 5.6% compared to the same period last year, which was in line with the company's quarterly guidance. This decline was attributed to the challenging conditions in the advertising market, particularly in national business. Despite these headwinds, Audacy Inc (AUDA) managed to reduce its cash operating expenses by 2%.
Financial Highlights and Management Commentary
David J. Field, Chairman, President, and CEO of Audacy Inc (AUDA, Financial), commented on the quarter's performance, stating:
We gained revenue share in the quarter, most significantly in radio in which we have achieved accelerating share growth since the start of the year. We also delivered solid gains in radio ratings share and digital audience metrics while making important progress on our tech roadmap and meaningful expense savings to improve our current and future business model."Field also noted that the company is in constructive conversations with lenders to strengthen its financial position and capitalize on growth opportunities.
Income Statement and Balance Sheet Overview
The income statement revealed a net loss of $234.3 million for the quarter, which was a significant increase from the net loss of $140.9 million in the same quarter of the previous year. This loss included a substantial impairment charge of $272.7 million. Station expenses, excluding non-cash compensation, amounted to $255.7 million, slightly down from $259.2 million in Q3 2022. Corporate expenses, excluding non-cash compensation, increased to $32.1 million from $21.1 million year-over-year.
On the balance sheet, Audacy Inc (AUDA, Financial) reported cash, cash equivalents, and restricted cash of $57.4 million as of September 30, 2023, down from $103.3 million at the end of 2022. The company's total senior debt stood at $1.9 billion, with total shareholders' equity at $126.6 million, a decrease from $520.6 million at the end of the previous year.
Revenue Breakdown and Adjusted Financial Measures
Breaking down the revenue by type, spot advertising (local and national) brought in $185.6 million, digital (including podcasting) contributed $64.8 million, and network, sponsorships and events, and other sources accounted for the remainder. Political revenue was $952 thousand, a decrease from $6.9 million in the same quarter of the previous year.
Adjusted EBITDA for the quarter was $23 million, a decrease from $36.3 million in Q3 2022. The adjusted free cash flow was negative $21.8 million, compared to negative $16.4 million in the prior year's quarter.
Looking Ahead
For the fourth quarter, Audacy Inc (AUDA, Financial) is pacing down 9% on an as-reported basis and down 4% on a same-station, ex-political basis. The company expects total revenues to decline by high single digits and costs to decline by high single digits as well.
Audacy Inc (AUDA, Financial) did not hold a conference call for the third quarter earnings release. However, the company remains focused on navigating the current market challenges and strengthening its financial position for future growth.
Investors and stakeholders are encouraged to review the full earnings release and financial statements to gain a deeper understanding of Audacy Inc (AUDA, Financial)'s performance and strategic direction.
Explore the complete 8-K earnings release (here) from Audacy Inc for further details.
