Townsquare Media, Inc. (NYSE:TSQ) Q3 2019 Earnings Conference Call - Final Transcript
Nov 05, 2019 • 08:00 am ET
Good morning and welcome to Townsquare's Third Quarter 2019 Conference Call. As a reminder, today's call is being recorded and your participation implies consent to such recording. [Operator Instructions] A brief question-and-answer session will follow the formal the presentation. [Operator Instructions]
With that, I would like to introduce the first speaker of today's call, Claire Yenicay, Executive Vice President. Ma'am, you may proceed.
Thank you, operator. And good morning to everyone. Thank you for joining us today for Townsquare's third quarter financial update. With me on the call today are Bill Wilson, our CEO; and Stuart Rosenstein, our CFO and Executive Vice President. Please note that during this call, we may make statements that provide information other than historical information, including statements relating to the company's future prospects. These statements are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from those projections.
These statements reflect the company's beliefs based on current conditions that are subject to certain risks and uncertainties that are detailed in the company's annual report on Form 10-K filed with the SEC and we incorporate these by reference for this call. We may also discuss certain non-GAAP financial measures, including adjusted EBITDA; adjusted EBITDA, excluding political; and adjusted operating income, and make certain pro forma adjustments. Such non-GAAP financial measures should be used in conjunction with all the information contained in the quarterly and year-end reports available on our website. We do not provide reconciliations on forward-looking statements due to the inability to estimate certain components of forward-looking statements that are not available without unreasonable efforts.
At this time, I would like to turn the call over to Bill Wilson.
Thank you, Claire, and thank you all for joining us this morning. We are pleased to share another quarter of strong financial results with you today and to confirm that we remain on track to having a breakout 2019. Let me start by first sharing with you that both net revenue and adjusted EBITDA exceeded the guidance that we laid out on our previous earnings call. In the third quarter, Townsquare's net revenue increased a very strong plus 7.9% ex-political over the prior year, plus 6.2% including political, and our adjusted EBITDA increased an impressive plus 12.9% ex-political and plus 6.7% including political over the prior year.
Just like in Q1 and Q2, this quarter's strong revenue and EBITDA growth was driven by the consistent strength of our advertising and Townsquare Interactive segments. It is also worth noting, that we ended the third quarter with 4.7 times net leverage, our lowest net leverage ever and we continue to make reducing our net debt a priority. We believe Townsquare's strong Q3 and year-to-date results demonstrate that our local first strategy, combined with our talented team's execution, is accelerating our transformation from being a leading traditional radio broadcaster to being a premier local media and entertainment