ihrt-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2024

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO __________

Commission File Number

001-38987

IHEARTMEDIA, INC.

(Exact name of registrant as specified in its charter)


Delaware		26-0241222
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

20880 Stone Oak Parkway
San Antonio,	Texas	78258
(Address of principal executive offices)		(Zip Code)

(210) 822-2828

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share	IHRT	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated Filer ☒ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

Outstanding at May 6, 2024

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Class A Common Stock, $.001 par value

123,451,749

Class B Common Stock, $.001 par value

21,346,613

IHEARTMEDIA, INC.

INDEX


		Page No.
Part I – Financial Information
Item 1.	Financial Statements	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Comprehensive Loss	2
	Consolidated Statements of Changes in Stockholders' Equity (Deficit)	3
	Consolidated Statements of Cash Flows	4
	Notes to Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31
Part II – Other Information
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 3.	Defaults Upon Senior Securities	32

Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33
Signatures		35

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IHEARTMEDIA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


(In thousands, except share and per share data)	March 31, 2024		December 31, 2023
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	361,403	$	346,382
Accounts receivable, net of allowance of $37,742 in 2024 and $38,055 in 2023	878,353		1,041,214
Prepaid expenses	135,234		93,131

Other current assets	38,082		26,189
Total Current Assets	1,413,072		1,506,916
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net	529,114		558,865
INTANGIBLE ASSETS AND GOODWILL
Indefinite-lived intangibles - licenses and other	1,114,479		1,113,979
Other intangibles, net	1,111,236		1,173,210
Goodwill	1,721,349		1,721,483
OTHER ASSETS
Operating lease right-of-use assets	693,545		704,992
Other assets	175,517		173,166
Total Assets	$	6,758,312	$	6,952,611
CURRENT LIABILITIES
Accounts payable	$	215,410	$	236,162
Current operating lease liabilities	73,775		73,832
Accrued expenses	196,110		317,575

Accrued interest	53,164		61,987
Deferred revenue	163,310		158,540
Current portion of long-term debt	289		340
Total Current Liabilities	702,058		848,436
Long-term debt	5,216,503		5,214,810
Noncurrent operating lease liabilities	749,365		762,820
Deferred income taxes	315,679		339,768
Other long-term liabilities	173,281		171,535
Commitments and contingent liabilities (Note 6)
STOCKHOLDERS' DEFICIT
Noncontrolling interest	6,400		9,397
Preferred stock, par value $.001 per share, 100,000,000 shares authorized, no shares issued and outstanding	—		—
Class A Common Stock, par value $.001 per share, authorized 1,000,000,000 shares, issued and outstanding 124,416,225 and 124,299,288 shares in 2024 and 2023, respectively	125		125
Class B Common Stock, par value $.001 per share, authorized 1,000,000,000 shares, issued and outstanding 21,346,613 and 21,347,363 shares in 2024 and 2023, respectively	21		21
Special Warrants, 5,043,336 and 5,101,870 issued and outstanding in 2024 and 2023, respectively	—		—
Additional paid-in capital	2,955,043		2,947,096
Accumulated deficit	(3,348,650)		(3,330,142)
Accumulated other comprehensive loss	(1,347)		(1,128)
Cost of shares (999,647 in 2024 and 983,589 in 2023) held in treasury	(10,166)		(10,127)
Total Stockholders' Deficit	(398,574)		(384,758)
Total Liabilities and Stockholders' Deficit	$	6,758,312	$	6,952,611

See Notes to Consolidated Financial Statements

IHEARTMEDIA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)


(In thousands, except per share data)	Three Months Ended March 31,
		2024		2023
Revenue		$	799,038	$	811,239
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)		341,360		344,620
Selling, general and administrative expenses (excludes depreciation and amortization)		385,144		402,801
Depreciation and amortization		105,162		108,512
Impairment charges		1,508		3,947
Other operating expense, net		572		221
Operating loss		(34,708)		(48,862)
Interest expense, net		95,515		95,457
Gain (loss) on investments, net		91,994		(6,505)
Equity in earnings (loss) of nonconsolidated affiliates		(45)		40
Gain on extinguishment of debt		—		4,625
Other expense, net		(496)		(99)
Loss before income taxes		(38,770)		(146,258)
Income tax benefit (expense)		20,662		(76,105)
Net loss		(18,108)		(222,363)
Less amount attributable to noncontrolling interest		400		(103)
Net loss attributable to the Company		$	(18,508)	$	(222,260)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments		(219)		(46)





Other comprehensive loss, net of tax		(219)		(46)
Comprehensive loss		(18,727)		(222,306)
Less amount attributable to noncontrolling interest		—		—
Comprehensive loss attributable to the Company		$	(18,727)	$	(222,306)
Net loss attributable to the Company per common share:
Basic		$	(0.12)	$	(1.50)
Weighted average common shares outstanding - Basic		149,795		148,365
Diluted		$	(0.12)	$	(1.50)
Weighted average common shares outstanding - Diluted		149,795		148,365

See Notes to Consolidated Financial Statements

IHEARTMEDIA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)

(UNAUDITED)


(In thousands, except share data)						Controlling Interest
	Common Shares(1)			Non- controlling Interest		Common Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock
	Class A Shares	Class B Shares	Special Warrants													Total
Balances at December 31, 2023	124,299,288	21,347,363	5,101,870	$	9,397	$	146	$	2,947,096	$	(3,330,142)	$	(1,128)	$	(10,127)	$	(384,758)
Net income (loss)				400		—		—		(18,508)		—		—		(18,108)
Vesting of restricted stock and other	57,653			—		—		—		—		—		(39)		(39)
Share-based compensation				—		—		7,947		—		—		—		7,947
Dividends declared and paid to noncontrolling interests				(3,397)		—		—		—		—		—		(3,397)
Conversion of Special Warrants to Class A and Class B Shares	58,534	—	(58,534)	—		—		—		—		—		—		—
Conversion of Class B Shares to Class A Shares	750	(750)		—		—		—		—		—		—		—

Other comprehensive loss				—		—		—		—		(219)		—		(

SEC Form 10-Q filed by iHeartMedia Inc.