Townsquare Media, Inc. (TSQ) saw its loss widen to $3.05 million, or $0.16 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.46 million, or $0.08 a share. On the other hand, adjusted net loss for the quarter widened to $2.89 million, or $0.16 a share from a loss of $1.52 million or $0.09 a share, a year ago.
Revenue during the quarter dropped 6.37 percent to $88.42 million from $94.43 million in the previous year period. Gross margin for the quarter contracted 114 basis points over the previous year period to 17.42 percent. Total expenses were 96.29 percent of quarterly revenues, up from 93.87 percent for the same period last year. That has resulted in a contraction of 242 basis points in operating margin to 3.71 percent.
Operating income for the quarter was $3.28 million, compared with $5.79 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.06 million compared with $11.97 million in the prior year period. At the same time, adjusted EBITDA margin contracted 130 basis points in the quarter to 11.37 percent from 12.68 percent in the last year period.
"2017 has started off well, with first quarter net revenue of $88.4 million, net loss of $3.0 million and Adjusted EBITDA of $10.1 million, in line with our expectations," commented Steven Price, chairman and chief executive officer of Townsquare. "Our Local Marketing Solutions segment, which increased 1.2% over the prior year period, and 2.5% excluding the impact of political revenue, continues to show consistent, organic growth demonstrating the strength of our local products and services. Our local digital offerings have been especially strong, and we believe we will see continued strength as we begin to utilize our first party data capabilities in combination with our digital platform."
Operating cash flow remains almost stable
Cash flow from operating activities was almost stable for the quarter at $3.96 million, when compared with the previous year period
The company has spent $7.44 million cash to meet investing activities during the quarter as against cash outgo of $5.20 million in the last year period. It has incurred net capital expenditure of $5.64 million on net basis during the quarter, down 0.21 percent or $0.01 million from year ago period.
The company has spent $7.45 million cash to carry out financing activities during the quarter as against cash outgo of $0.72 million in the last year period.
Cash and cash equivalents stood at $40.63 million as on Mar. 31, 2017, up 31.84 percent or $9.81 million from $30.82 million on Mar. 31, 2016.
Working capital increases
Townsquare Media has recorded an increase in the working capital over the last year. It stood at $46.86 million as at Mar. 31, 2017, up 22.57 percent or $8.63 million from $38.23 million on Mar. 31, 2016. Current ratio was at 1.79 as on Mar. 31, 2017, up from 1.61 on Mar. 31, 2016.
Days sales outstanding went up to 57 days for the quarter compared with 54 days for the same period last year.
At the same time, days payable outstanding went up to 11 days for the quarter from 10 for the same period last year.
Debt comes down marginally
Townsquare Media has recorded a decline in total debt over the last one year. It stood at $564.11 million as on Mar. 31, 2017, down 4.14 percent or $24.38 million from $588.49 million on Mar. 31, 2016. Total debt was 52.70 percent of total assets as on Mar. 31, 2017, compared with 55.60 percent on Mar. 31, 2016. Debt to equity ratio was at 1.45 as on Mar. 31, 2017, down from 1.63 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.40 for the quarter from 0.68 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
