Core Points - iHeartMedia, The Martin Luther King III Foundation, and Legacy+ announced the launch of a new podcast series titled "My Legacy," which will premiere on January 20, 2025, focusing on the stories of influential leaders and public figures [1][2] - The podcast will feature notable guests such as Mel Robbins, Dr. Sanjay Gupta, David Oyelowo, and others, who will share their personal journeys alongside family members or trusted confidantes [2][3] - iHeartMedia will award a $5 million Spotlight Media Grant to the 'Realize the Dream' initiative, aimed at inspiring communities to perform 100 million hours of service by January 15, 2029, the 100th anniversary of Dr. King's birth [4] Company Overview - iHeartMedia is the leading audio media company in America, with a significant audience reach, including 90% of Americans listening to its broadcast radio monthly [14] - The company is the largest podcast publisher, with more downloads than its closest competitors combined, and has a strong social media presence [14] Initiative Details - The 'Realize the Dream' initiative is designed to encourage community service and promote Dr. King's vision of peace, justice, and equality [4][11] - The initiative aims to mobilize individuals and organizations to contribute to their communities through acts of love and goodwill [11]

Group 1 - The article discusses the implications of high leverage on company equity, indicating that when things go wrong, equity may become a "stub" with value derived from its convexity [1] - It highlights the probability that conditions may improve before any restructuring or debt equitization occurs, suggesting a potential for recovery [1]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $205 million for Q3 2024, within the guidance range of $200 million to $220 million [15][33] - Consolidated revenues increased by 5.8% year-over-year, aligning with the guidance of mid-single digits [15][31] - Consolidated direct operating expenses rose by 7.8%, primarily due to higher variable content costs related to increased digital revenues [31][32] Business Line Data and Key Metrics Changes - The Digital Audio Group generated revenues of $301 million, up 12.7% year-over-year, representing approximately 30% of total revenue [16][34] - The Multiplatform Group's revenues were $620 million, down 1.1% year-over-year, and adjusted EBITDA was $130 million, down from $162 million in the prior year [22][36] - The Audio & Media Services Group saw revenues of $90 million, up 45.3% year-over-year, with adjusted EBITDA increasing to $44 million from $17 million [28][37] Market Data and Key Metrics Changes - The company noted strong momentum in the podcast business and digital advertising, contributing to the overall revenue growth [14][15] - Political advertising had a positive impact, although the company expects political revenues to be slightly lower than previous cycles [44][45] Company Strategy and Development Direction - The company is focused on modernizing its operations, which includes flattening the organization and leveraging technology to improve efficiency and reduce costs by approximately $200 million in 2025 [11][12][42] - A Transaction Support Agreement was entered with debtholders representing approximately 80% of outstanding debt, aimed at extending debt maturities and reducing overall debt levels [6][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a recovery year for advertising revenues, with expectations for continued growth in the digital and podcast segments [13][52] - The company anticipates a slight dip in political revenues but expects non-political spending to resume post-election [45][46] Other Important Information - The company reported a net debt position of approximately $4.79 billion, the lowest in its history, with total liquidity of $858 million [41][40] - Free cash flow for Q3 was $73 million, compared to $68 million in the prior year [41] Q&A Session All Questions and Answers Question: Insights on 2025 guidance and advertising market - Management indicated confidence in the advertising market improving, citing consumer engagement and the effectiveness of ad tech [51][52] Question: Concerns about on-air talent and quality - Management clarified that technology allows for better talent allocation without reducing on-air talent, enhancing the quality of offerings [61][62] Question: Details on the Transaction Support Agreement and cash allocation - Management explained that the agreement will extend maturities and maintain cash interest expenses, with a focus on reducing leverage over time [73][75]

Core Viewpoint - iHeartMedia's stock experienced a significant surge due to a combination of a reasonable earnings report and a successful debt restructuring, despite mixed earnings results [1]. Financial Performance - iHeartMedia's Q3 sales increased by 5.8% year over year, reaching $1.01 billion, largely driven by political advertising [2]. - The company reported a net loss of $41.3 million, which is worse than the previous year's loss of $9 million [2]. - Adjusted EBITDA remained stable at $204.6 million, with digital audio services showing strong revenue growth while other operations remained flat [3]. Debt Restructuring - Management successfully renegotiated 80% of the company's debt during Q3, extending the maturity dates on $4.1 billion of debt by three years without increasing interest rates [4]. - The guidance indicates a projected $200 million in positive free cash flows by 2025, with plans to use some of this cash to reduce debt [4]. - The debt-to-EBITDA leverage ratio is expected to decrease from 7.2x to approximately 3.2 by the end of 2028, which should alleviate interest payments currently at $95.7 million for the quarter [5]. Digital Strategy - iHeartMedia's digital revenues grew by 13% year over year, reflecting a strong online strategy [6]. - Despite the digital growth, the company continues to rely heavily on its traditional radio presence, which may limit its long-term strategy [7].

Core Insights - iHeartMedia reported a quarterly loss of $0.16 per share, significantly worse than the Zacks Consensus Estimate of a $0.02 loss, marking a 900% earnings surprise [1] - The company's revenues for the quarter ended September 2024 were $1.01 billion, exceeding the Zacks Consensus Estimate by 0.55% and up from $952.99 million a year ago [2] - iHeartMedia shares have declined approximately 34.8% year-to-date, contrasting with the S&P 500's gain of 24.3% [3] Financial Performance - Over the last four quarters, iHeartMedia has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $1.18 billion, while for the current fiscal year, it is -$6.11 on revenues of $3.91 billion [7] Market Outlook - The earnings outlook for iHeartMedia is unfavorable, leading to a Zacks Rank of 4 (Sell), indicating expected underperformance in the near future [6] - The Broadcast Radio and Television industry, to which iHeartMedia belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Revenue Performance - Consolidated revenue for Q3 2024 was $1,008.1 million, an increase of $55.1 million or 5.8% compared to $953.0 million in Q3 2023[102] - Digital Audio Group revenue increased by $33.8 million or 12.7%, and Segment Adjusted EBITDA increased by $6.3 million or 6.8% compared to the prior year's third quarter[102] - Audio & Media Services Group revenue increased by $28.1 million or 45.3%, with Segment Adjusted EBITDA rising by $27.4 million or 161.6%, primarily driven by increased political revenue[102] - Consolidated revenue increased by $55.1 million, or 5.8%, to $1,008.1 million for the three months ended September 30, 2024, compared to the same period in 2023[107] - Digital Audio Group revenue rose by $33.8 million, or 12.7%, driven by increased demand for digital advertising[107] - Revenue from the Multiplatform Group decreased by $62.4 million, or 3.6%, for the nine months ended September 30, 2024, primarily due to a decline in broadcast advertising[108] - Podcast revenue grew by $11.4 million, or 11.1%, year-over-year, driven by increased demand from advertisers[133] - Consolidated revenues increased for the nine months ended September 30, 2024, primarily driven by growth in the Digital Audio Group and political revenue, despite lower revenue in the Multiplatform Group[156] Operating Income and Expenses - Operating income for Q3 2024 was $76.7 million, an increase of $7.7 million from $69.0 million in Q3 2023[102] - Direct operating expenses increased by $29.7 million, or 7.8%, during the three months ended September 30, 2024, mainly due to higher variable content costs[109] - SG&A expenses rose by $25.2 million, or 6.4%, during the three months ended September 30, 2024, driven by higher non-cash trade expenses related to major events[111] - Operating expenses for the Digital Audio Group rose by $27.5 million, primarily due to higher variable content costs[134] - Operating expenses for the Audio & Media Services Group increased by $0.6 million, primarily due to higher sales commissions related to increased demand for digital advertising[138] Net Loss and Adjusted EBITDA - Net loss for Q3 2024 was $41.3 million, an increase of $32.3 million from $9.0 million in Q3 2023[102] - Net loss attributable to the Company was $41.3 million for the three months ended September 30, 2024, an increase of $32.2 million compared to the same period in 2023[124] - Adjusted EBITDA for Q3 2024 was $204.6 million, a slight increase of $0.8 million from $203.8 million in Q3 2023[102] - Adjusted EBITDA for the three months ended September 30, 2024, was $204.6 million, slightly up from $203.8 million for the same period in 2023[140] Cash Flow and Liquidity - Cash flows from operating activities were $102.8 million, up from $96.2 million in the prior year's third quarter[102] - Free cash flow for Q3 2024 was $73.3 million, an increase from $67.7 million in the prior year's third quarter[102] - Free cash flow for the three months ended September 30, 2024, was $73.3 million, compared to $67.7 million for the same period in 2023[143] - Cash provided by operating activities increased to $70.2 million for the nine months ended September 30, 2024, up from $59.0 million in the same period of 2023, reflecting improved receivable collections[149] - Total available liquidity as of September 30, 2024, was $858.1 million, consisting of $431.8 million in cash and cash equivalents and $426.3 million in borrowing base availability[155] Impairment Charges - Non-cash impairment charges of $304.1 million and $616.1 million were recorded for FCC licenses and goodwill, respectively, due to economic uncertainty[99] - Impairment charges recorded were $922.1 million for the nine months ended September 30, 2024, down from $965.1 million in the same period of 2023[115] - The company experienced a $304.1 million impairment of indefinite-lived intangible assets as of June 30, 2024, resulting in a carrying value of $809.9 million for FCC licenses[184] - A $616.1 million impairment of goodwill was recorded as of June 30, 2024, due to the carrying values of certain reporting units exceeding their fair values[189] Debt and Interest - As of September 30, 2024, total debt was $5.22 billion, with net debt at $4.79 billion after accounting for cash and cash equivalents[168] - The company anticipates approximately $85.4 million in cash interest payments for the remainder of 2024, a decrease from $88.5 million in the same period of 2023, due to lower interest rates[158] - Interest expense decreased by $3.8 million during the three months ended September 30, 2024, due to lower outstanding principal on senior unsecured notes[117] - As of September 30, 2024, approximately 43% of the company's long-term debt bore interest at floating rates, with an estimated interest expense change of $17.2 million for a 100 bps change in floating interest rates[177] Market Conditions and Future Outlook - Economic uncertainty due to higher interest rates since 2022 has led to lower advertising spending, adversely impacting revenue and cash flows[181] - The company is exposed to market risks from changes in interest rates, foreign currency exchange rates, and inflation[176] - The company anticipates a 2.0% over-the-air revenue growth and 3.0% digital revenue growth beyond the initial five-year period, with a 1.0% revenue growth assumed in the terminal period[185] - Operating margins are projected to increase from 8.0% in the first year to an industry average margin of up to 16.3% by year 3, depending on market size[185] - The company expects its lowest financial performance in the first quarter of the calendar year, a trend anticipated to continue in the future[175] - Future cash flows are projected based on detailed multi-year forecasts reflecting the current advertising outlook across the company's businesses[190] Strategic Agreements - The company entered into a Transaction Support Agreement on November 6, 2024, with lenders representing approximately 77% of its outstanding senior secured notes due 2026[161] - The anticipated cash payments related to the exchange offer transactions are estimated to range from $250 million to $295 million[166] - The company remains confident in its strategy and available liquidity to fund capital expenditures and other obligations despite market uncertainties[159]

Exhibit 99.1 rtMEDIA IHEARTMEDIA, INC. REPORTS RESULTS FOR 2024 THIRD QUARTER New York, NY, November 7, 2024 – iHeartMedia, Inc. (Nasdaq: IHRT) today reported financial results for the quarter ended September 30, 2024. Financial Highlights: 1 Announced Debt Exchange Transactions and Cost Efficiency Actions ▪ Entered into a transaction support agreement with a group of debt holders representing approximately 80% of the Company's outstanding term loan and notes to exchange $4.1 billion of existing debt; exten ...

Hundreds of jobs will be slashed at iHeart Media as the debt-ridden radio and podcast giant has been crushed by music streaming, The Post has learned.The company headed by CEO Bob Pittman has cut less than 5% of a workforce of more than 10,000 employees, a source with knowledge said, amounting to hundreds of job losses as the company streamlines its business and eliminates redundancies.Wendy Goldberg, an iHeart spokeswoman, confirmed the layoffs. She noted that the company has focused on expanding its Gen Z ...

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market in September, consider joining Out Fox The Street . Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat and direc ...

Investors in iHeartMedia, Inc. (IHRT) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 18, 2024 $5.00 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could als ...