AUD - Audacy: A Multi-Platform Leader In Audio Contending With Debt

• Audacy, one of the largest radio broadcasters in the United States, is evolving into a multi-platform leader in audio entertainment.
• Local advertising was particularly hard hit by the pandemic, though with the re-opening, total net revenues for Q2 are pacing up over 70%, year-over-year.
• Longer-term growth potential comes from sports betting, digital (podcasts and streaming) and events, which may help to offset secular decline in radio broadcasting.
• If 2022 recovers to 2019 levels, Audacy would be relatively inexpensive, with a forward free cash flow yield of about ~23%, and forward EV/Adjusted-EBITDA of ~6.8.
• Audacy's indebtedness is substantial, at around 4.9x 2019 Adj.EBITDA levels. Management expects to be "comfortably compliant" on covenants, but the need to pay down debt could nevertheless weigh on the company.

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