Townsquare Media has purchased and retired 1.5 million shares of stock totaling nearly $15 million in a move similar to one instituted in 2023.
In June of last year, the company bought 1.5 million shares held by MSG National Properties LLC at $9.70 per share. Townsquare bought another 1.5 million shares from the same company at $9.76 which equated to $14.6 million. The company also purchased 12.6 million shares from Oaktree Capital in March 2021 for $6.40 per share.
“We are very pleased to share that we have repurchased just under 10% of our total shares outstanding in an immediately accretive transaction for our shareholders. Since 2021, we have repurchased 16.2 million shares at an average price of $7.19, while simultaneously reducing leverage,” said Townsquare CEO Bill Wilson. “The strong cash generation characteristics of our business model, which produced $68 million of cash flow from operations in 2023, has afforded us the opportunity to actively repurchase equity and debt, while also investing internally in our digital growth engine. In addition, we introduced a high-yielding dividend in 2023, and recently increased it by 5%. Our dividend has a yield of 7% as of March 28, 2024.
“With a strong cash balance of $40 million following this transaction, we will retain financial flexibility moving forward and we are confident in our ability to build shareholder value for our investors through long-term net revenue, Adjusted EBITDA and cash flow growth, net leverage reduction, future dividend payments, and potential future share repurchases. We thank our Board of Directors for their vote of confidence in our medium and long-term business plan to grow revenue and profits, and MSG for their long-term support of our Company.”
The 1.5 million shares purchased by Townsquare Media in this round represent just under 10% of the total outstanding shares.
