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Description of Business Townsquare is a community-focused digital and broadcast media and digital marketing solutions company principally focused outside the top 50 markets in the U.S. Townsquare Ignite, our robust digital advertising division, specializes in helping businesses of all sizes connect with their target audience through data-driven, results based strategies, by utilizing a) our pro…
10.49% operating margin is respectable but not wide. ROIC at 7.86%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 5.6% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 51% versus the prior year, cash generation momentum has weakened. Net debt of $480M represents 31.2x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$420M
▼ -5.6% YoY
Net Income (TTM)
-$7M
▲ +9.4% YoY
Op. Margin
8.53%
▲ +5.6pp YoY
ROIC
5.81%
▲ +4.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$20M
▼ -50.9% YoY
Op. Cash Flow (TTM)
$35M
▼ -37.2% YoY
Net Debt
$482M
Cash & Equiv.
$2M
5Y CAGR: +2.6%
5Y CAGR: -1.4%
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