PURCHASE, N.Y. - Townsquare Media, Inc. (NYSE:TSQ), a digital media and marketing solutions company, has announced the repurchase of 1.5 million shares of its Class A common stock from MSG National Properties, LLC. The transaction, completed today, involved buying back the shares at $9.76 each, an 11% discount from the stock's closing price on March 28, 2024.
This buyback is part of Townsquare's ongoing strategy to reduce share count and follows previous repurchases, including the June 2023 buyback of 1.5 million shares from MSG at $9.70 per share and the March 2021 repurchase from Oaktree Capital Management, L.P.
The total purchase price amounted to $14.6 million and was funded using the company's cash reserves. Townsquare highlighted its robust cash flow from operations, which increased 35% in 2023 to $68 million, or approximately $4.07 per basic share. With the latest transaction, this figure rises to roughly $4.47 per basic share, marking an accretion of about 10%.
Following the buyback, Townsquare's outstanding shares have been reduced to 15.2 million. CEO Bill Wilson expressed satisfaction with the repurchase, noting that nearly 10% of total outstanding shares have been bought back in a move that is immediately beneficial for shareholders. Since 2021, the company has repurchased 16.2 million shares at an average price of $7.19, while also reducing leverage.
Wilson also pointed out the company's strong cash generation, which has enabled it to buy back equity and debt and invest in digital growth, alongside introducing and recently increasing a high-yielding dividend by 5%. The dividend yield stood at 7% as of March 28, 2024.
With a solid cash balance post-transaction, Townsquare aims to maintain financial flexibility and is confident in its ability to continue delivering value to shareholders through revenue growth, EBITDA, cash flow, leverage reduction, dividend payments, and potential future share repurchases.
The company reaffirmed its Q1 2024 and full-year guidance, expecting net revenue between $98.5 million and $100 million for the first quarter and between approximately $440 million and $460 million for the full year. Adjusted EBITDA guidance is set at $17.5 million to $18.5 million for Q1 and $100 million to $110 million for the year.
This news is based on a press release statement from Townsquare Media, Inc.
InvestingPro Insights
Townsquare Media's (NYSE:TSQ) recent share repurchase reflects a broader strategy that has been highlighted by InvestingPro as a significant move by management. According to InvestingPro Tips, the management has been aggressively buying back shares, which is seen as a positive sign of confidence in the company's future. Additionally, the company pays a significant dividend to shareholders, with a dividend yield of 7.19% as of the end of 2023, further reinforcing its commitment to returning value to its investors.
From a financial perspective, Townsquare Media's market capitalization stands at $182.63 million, while the company's Price / Book ratio as of the last twelve months ending Q4 2023 is at a high of 28.49. The Price / Earnings (P/E) ratio, adjusted for the same period, is 6.81, which may suggest a more reasonable valuation when considering expected earnings. Moreover, the company's revenue for the last twelve months as of Q4 2023 was $454.23 million, although it experienced a slight decline of 1.91% in revenue growth during that period.
Investors looking for additional insights can find more valuable InvestingPro Tips for Townsquare Media, which include analysis on the company's valuation, cash flow yield, and profitability predictions. There are currently 9 additional InvestingPro Tips available for TSQ, which can be accessed at: https://www.investing.com/pro/TSQ. To gain further in-depth analysis and tips, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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