Looking for the next apple? This is the orchard.
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Join Playboy CEO Ben Kohn at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Ben to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule
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Join Esports Entertainment Group (GMBL) CEO Grant Johnson at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Grant to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule
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Monday, January 04, 2021
Tribune Publishing Co is a print and online media company that publishes various newspapers and websites. It creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities. The company manages its business as two distinct segments, M and X. Segment M is comprised of the company’s media groups excluding their digital revenues and related digital expenses, except digital subscription revenues when bundled with a print subscription. Segment X includes the company’s digital revenues and related digital expenses from local Tribune websites, third party websites, mobile applications, digital only subscriptions, Tribune Content Agency and BestReviews.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Large influx of cash. The company closed on the sale of BestReviews for a total price of $160 million. Tribune owns 60% of the company and we estimate that net proceeds from the transaction will be roughly $88 million. In total, the company is expected to have roughly $230 million in cash, including $30 million of restricted cash, or over $6 per share. We are raising our financial assessment from 3.5 to 4.0, which is above average.
Surprising upside guidance. Management guided 2021 adjusted EBITDA between $105 million and $113 million, well above our back of the envelop estimate of $79 million upon the sale of BestReviews. In fact, the guidance exceeds our original estimate of $99.2 million, which included BestReviews …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
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Join Salem Media (SALM) CFO Evan Masyr at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Evan to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule
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Thursday, December 17, 2020
Tribune Publishing Co is a print and online media company that publishes various newspapers and websites. It creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities. The company manages its business as two distinct segments, M and X. Segment M is comprised of the company’s media groups excluding their digital revenues and related digital expenses, except digital subscription revenues when bundled with a print subscription. Segment X includes the company’s digital revenues and related digital expenses from local Tribune websites, third party websites, mobile applications, digital only subscriptions, Tribune Content Agency and BestReviews.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Announces sale of its interest in BestReviews. The company plans to sell BestReviews to Nexstar Broadcasting for a total of $160 million. Tribune’s 60% interest would be worth roughly $100 million, less taxes and fees. The transaction is expected to close by year end.
Sale viewed favorably. Tribune purchased its 60% interest in BestReviews three years earlier for $66 million, with a tax basis estimated to be roughly $60 million. As such, the sale of its interest for $100 million represents a substantial return on its investment, with net proceeds from the sale estimated to be roughly $89 million, or $2.40 per share …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Thursday, December 17, 2020
Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Updates Political Estimate. Management indicated that Political advertising will be a strong $400 million plus for the full year 2020. The company crossed the $400 million mark yesterday, and Political continues to pour in. This implies that the fourth quarter will have a record breaking $215 million plus in Political.
Georgia on its mind. The updated forecast is the result of an influx of Political advertising from the Senate run-offs in Georgia, which has gained National attention as the election holds the outcome of the balance of power in the U.S. Senate. The company’s stations cover Augusta, Albany, Columbus, Savannah, and Thomasville, Georgia. Notably, the company picked up WALB in Albany, WTOC-Savannah …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Thursday, December 17, 2020
Esports Entertainment Group Inc is a development-stage online gambling company focused purely on esports. The company’s principal business operations include design, develop and test wagering systems.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Plans to acquire online casino operator. The company announced plans to acquire Lucky Dino, an online casino operator, for roughly $30 million. The acquisition fills in the hole for its gambling operations, which will now offer casino, sportsbook betting, and esports betting. The acquisition will be funded by $30 million in debt and is expected to close early next year. We view the acquisition favorably as it broadens the company’s gambling platform and strengthens its financial viability.
Accretive acquisition. Lucky Dino is expected to generate $24 million in revenues in fiscal 2021 and $29 million in fiscal 2022, with cash flow of $5 million and $6.5 million, respectively …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Wednesday, December 16, 2020
Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others. The segments through which the company operates its businesses are classified into Local marketing solutions and Entertainment segments. Revenues are generated from commercials through broadcasts and sale of internet based advertisements.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Provides preliminary Q4 results. Q4 revenues are expected to nicely exceed guidance, now expected to be down a more modest 2.7% to 4.5% versus previous expectations of down 7.5%. Cash flow, as measured by adjusted EBITDA, is expected to be between $27 million to $28 million, versus the previous expectations of roughly $25 million.
Favorable revenue trends. We believe that the favorable preliminary Q4 results is in large part due moderating broadcast advertising trends, excluding Political, which is encouraging as the company cycles toward easing comps in 2021 …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) is pleased to report the results of a Preliminary Economic Assessment (“PEA”) regarding the Company’s Cusi Mine, located in Chihuahua State, Mexico.
This press release features multimedia. View the full release here.
This PEA report was prepared as a National Instrument 43-101 Technical Report for Sierra Metals Inc. (“Sierra Metals”) by SRK Consulting (Canada) Inc. (“SRK”). The full technical report will be filed on SEDAR within 45 days of this news release.
Highlights of the PEA include:
Luis Marchese, CEO of Sierra Metals commented: “I am very encouraged by the results of this PEA which support the Company’s organic growth strategy and plan to profitably develop and expand the Cusi Mine production rate to 2,400 TPD from today’s capacity of 1,200 TPD, based on current analyst consensus silver metal price estimates of US$20 per oz long-term. The Company plans to continue with its disciplined approach of profitable growth and now plans to proceed with the next step of the completion of a prefeasibility study to further de-risk the plan and determine the best path forward.”
He continued “The PEA study compared the value of the current operations at Cusi at 1,200 TPD against several output expansion alternatives from 2,400 to 3,500 TPD and determined 2,400 TPD as the optimum production level based on our current mineral resource base.”
He concluded, “Cusi is the smallest of our three mining operations, however, its silver resources which include 31.3 million ounces of Measured and Indicated plus 23 million ounces of Inferred provide Sierra Metals with economic leverage to the improving silver market fundamentals. We are continuing with our strategy to increase the value of the Company on a per share basis. This builds upon the demonstrated success we have shown with increasing our current mineral resource base and improving the throughput at all mines.”
Mineral Resource Estimate
The Property is in the Cusihuarachi District of Chihuahua State, Mexico, approximately 135 km southwest of Chihuahua City. Epithermal mineralization has been mined in the area since its discovery in the early 1800’s. Mineralization is bound between regionally significant northwest trending faults; eight mineralized zones are recognized at the property, mineralized zones are up to 10 meters across and include silicified faults, veins, and breccias. Seven epithermal veins are recognized at the property, veins typically range between 0.5 and 2.0 meters wide, dip steeply, extend 100 to 200 meters along strike, and extend up to 400 meters depth. Vein orientations range between northeast and northwest.
This PEA considers depleted Measured, Indicated, and Inferred resources reported in 2020 by SRK and effective as of August 31, 2020. The results of this PEA shown in Table 1-1 are indicative of conceptual potential and are not definitive.
Table 1-1: Summary of Mineral Resources estimate as reported by SRK,2020(EffectiveAugust 31, 2020)
Source: SRK, 2020
(1) Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, lead and zinc assays were capped where appropriate.
(2) Mineral resources are reported at a single cut-off grade of 95 g/t AgEq based on metal price assumptions*, metallurgical recovery assumptions, personnel costs (US$10.56/t), mine operation, transport and maintenance costs (US$24.86.41/t), processing operation and maintenance (US$11.86/t), and general and administrative and other costs (US$3.20/t).
* Metal price assumptions considered for the calculation of the cut-off grade and equivalency are: Silver: (US$/oz 20.0), Lead (US$/lb. 0.91), Zinc (US$/lb. 1.07) and Gold (US$/oz 1,541.00). Source: CIBC Global Mining Group, Consensus Forecast, September 30, 2020
The resources were estimated by SRK. Giovanny Ortiz, B.Sc., PGeo, FAusIMM #304612 of SRK, a Qualified Person, performed the resource calculations for the Cusi Mine.
** Based on the historical production information of Cusi, the metallurgical recovery assumptions are: 87% Ag, 57% Au, 86% Pb, 51% Zn.
Mining Methodology
Bench and fill mining method is currently used in the main areas of the mine and to a lesser extent, room and pillar mining is also used. The mining method used varies depending on geotechnical constraints, mineralization trends, dimensions, and mine production targets.
Using the updated Mineral Resource estimate, Sierra Metals performed an expansion analysis to determine how the Cusi mine could achieve higher sustainable production rates. The analysis indicated that higher production rates are achievable through the massification of the bench and fill mining method in the new production areas, which will allow the sustainability of the operation.
Mineral Processing
The Mal Paso Plant, located approximately 50 kilometers from the Cusi Mine, uses a conventional crushing-milling-flotation circuit to recover mineral and to produce commercial quality Lead/Silver and Zinc concentrates. Mineral is delivered from the mine to the plant in 20-tonne trucks.
Mineral processing and the recovery of the mineral is demonstrated, and silver recoveries are established at 87%.
The Mal Paso Plant increased throughput from 450 TPD at the beginning of 2018 to 1,200 TPD currently. In line with proposed increases in mine output, the processing capacity at Mal Paso will increase to 2,400 TPD in 2024.
Economic Analysis
This PEA indicates an after tax NPV of US$81 million (using a discount rate of 8%) at 2,400 TPD (in 2024). Total operating cost for the life of mine is US$352 million, equating to a total operating cost of US$35.24 per tonne milled and US$8.83 per silver equivalent ounce. Highlights of the PEA are provided in Table 1-2.
Table 1-2: PEA Highlights
Quality Control
All technical data contained in this news release has been reviewed and approved by:
Americo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects to Sierra Metals is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Sierra Metals
Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
The Company’s Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.
For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:
Continue to Follow, Like and Watch our progress:
Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc
Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.
Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 30, 2020 for its fiscal year ended December 31, 2019 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.
The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.
Mike McAllister
Vice President, Investor Relations
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Email: info@sierrametals.com
Americo Zuzunaga
Vice President of Corporate Planning
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Luis Marchese
CEO
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Source: Sierra Metals Inc.
The global transportation market is undergoing rapid change. Efforts to reduce global warming are resulting in more stringent emissions standards to reduce near-term greenhouse gas emissions, coupled with a longer-dated push toward electric vehicle adoption. Beneficiaries include mining companies that produce clean-air metals, including platinum and palladium for catalytic converters, and producers of battery metals, including copper, lithium, nickel, and cobalt. While the increasing need for metals used for EV batteries has been well-chronicled, investors may be unaware of the severe palladium supply deficit that has been driving high palladium prices. As a result, palladium is the most expensive of the four precious metals (gold, silver, palladium, and platinum).
What are Platinum Group Metals?
Palladium is one of six platinum-group metals, along with ruthenium, rhodium, osmium, iridium, and platinum. About 84%, or 9.6 million ounces of palladium ends up in the exhaust systems in cars to reduce toxic pollutants. The metal is mined primarily in Russia and South Africa, and mostly extracted as a by-product from mining other metals, including platinum and nickel. As a result, producers have not been able to quickly respond to higher prices due to limited dedicated production. Demand has increased due to stricter auto emissions standards and a move away from diesel power vehicles which use platinum for the auto catalysts. As a result, new sources of palladium supply are needed to meet demand and help achieve stricter air quality standards.
The figure below summarizes palladium supply and demand during the period 2009 through 2019.
Palladium Supply and Demand
Source: Johnson Matthey Market Report, May 2020
Will Automakers Switch to Platinum?
Most notably, palladium prices have benefited from a multi-year supply deficit driven by limited new supply sources and increasing environmental regulations that has increased demand. As a result, the price of palladium surpassed gold in 2019. Year-to-date through December 4, 2020, palladium futures prices increased 23.2% to $2,355 per ounce, compared with gold’s rise of 18.7% to $1,840 per ounce. While platinum is a substitute metal in catalytic converters, its price increased only 10.2% to $1,071 per ounce during the same period. While automakers originally switched from platinum to palladium in the 2000s to take advantage of palladium’s lower price, they have been reluctant to switch back due to potential disruptions to existing supply and manufacturing configurations, compliance with existing standards, the limited impact such a change would have on overall vehicle cost, and automakers’ focus on next generation technologies. According to the Financial Times, Nornickel, one of the largest producers of palladium, believes automakers have little appetite for changes in the catalyst chemistry as their engineering resources are focused on meeting new tighter emission legislation and carmakers are too busy transitioning to EV technologies and do not want to devote resources to new auto catalyst technologies. Most platinum group element mining companies produce both platinum and palladium so partial substitution, while not fully eliminating the palladium supply deficit, would likely provide a lift for platinum prices.
What about Electric Vehicles?
While widespread adoption of electric vehicles could meaningfully impact the supply and demand fundamentals for both platinum and palladium, it will likely take many years for electric vehicles to have a significant impact. First, auto catalyst demand for palladium is significant and supplies have been in a multi-year deficit that will take time to correct. Second, hybrid vehicles are expected to bridge the transition from internal combustion engines to battery powered vehicles. Hybrid electric vehicles also require palladium to reduce emissions and support growth in palladium demand. Perhaps the holy grail for investors is to identify mining companies that can capitalize on trends in both the clean air and battery metals markets with a diversified base of resources.
Suggested Reading:
Tyko Nickel Project Drilling Program Yields Success
When Does OPEC Expect Oil Demand to Plateau?
Exploration and Production: 2020-3Q Review and Outlook
Virtual Road Show Series – Thursday December 10 @ 1pm EST
Join Palladium One Mining President & CEO, Derrick Weyrauch for this exclusive corporate presentation, followed by a Q & A session moderated by Mark Reichman, Noble’s senior research analyst, featuring questions taken from the audience. Registration is free, but attendance is limited to 100. Register Now | View All Upcoming Road Shows
Sources:
Why Palladium is Suddenly a More Precious Metal: QuickTake, Bloomberg, Eddie van der Walt and Ranjeetha Pakiam, January 20, 2021
PGM Market Report, Johnson Matthey, Alison Cowley, May 2020.
Palladium Surges Again but the Focus Will Soon Shift to Platinum, Forbes, Tim Treadgold, January 19, 2020.
Platinum, Palladium Prices Diverge as Car Makers See Uneven Recovery, Wall Street Journal, Will Horner, September 18, 2020.
BASF Aims to Cut Cost of Gasoline Catalysts with Switch from Palladium to Platinum, Automotive News Europe, Elena Mazneva and Justina Vasquez, March 11, 2020.
Russia’s Norilsk Says Carmakers Will Not Switch from Palladium, Financial Times, Henry Sanderson, February 26, 2020.
Another Reason to be Bullish on Palladium: The Hybrid Car Boom, Bloomberg, Yuliya Fedorina and Rupert Rowling, December 28, 2018
Friday, November 13, 2020
Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A solid quarter. The company exceeded both revenue and cash flow expectations in its third quarter results, driven in part by strong Political advertising. Total company revenues were $60.6 million, 6% better than our $57.1 million estimate. Cash flow, as measured by adjusted EBITDA, was $9.6 million, a strong 25% above our $7.7 million estimate.
A Political boost. The latest results benefited from extraordinary Political advertising, which was $1.9 million. Political was well ahead of the mid term elections in Q3 2018 at $1.2 million and the last general election in Q3 2016 of $1.5 million. Management indicated that Q4 Political advertising will be north of $2 million, which will likely get another boost from the run-off Senate elections …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Friday, November 13, 2020
Harte-Hanks is a marketing services company that provides multichannel marketing solutions as well as consulting, data analytics, and strategic assessment. The company’s offerings focus on business-to-business, retail, finance, and automotive segments through digital, social, mobile, and print media offerings. Harte-Hanks strives to develop better customer relationships through its marketing and analytical services for clients. The majority of its revenue is derived from its marketing services in the retail, technology, and consumer brand segments.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q3 outperforms. Q3 revenues of $47.7 million was significantly better than our $43.8 million estimate driven by a one-time project in its customer care/call center. We estimate that the one-time project contributed roughly $5 million in the quarter, or the variance to our Q3 revenue estimate. Notably, Q3 represented a sequential quarterly revenue improvement from Q2. Due to earlier cost cuts, the company over achieved our cash flow estimate, with adjusted EBITDA of $3.2 million versus our $2.2 million estimate.
Driving efficiencies. While revenue trends appear to be improving, management continues to drive operating efficiencies, with facility consolidations and further cost cuts. We believe these measures should allow the company to show strong cash flow growth in 2021. At this time, we are maintaining our 2021 estimates, although we believe that the company could over achieve our cash flow estimate with …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Tuesday, November 10, 2020
Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others. The segments through which the company operates its businesses are classified into Local marketing solutions and Entertainment segments. Revenues are generated from commercials through broadcasts and sale of internet based advertisements.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Outperforms highest expectations. Q3 revenues of $95.3 million was better than our recent upwardly revised revenue estimate of $92.1 million. Cash flow, as measured by adj. EBITDA, was $17.5 million, significantly better than our $11.3 million estimate. The results benefited from a large $4.4 million in Political advertising, above our upwardly revised $2.6 million estimate, and accounted for the large variance in our estimates.
Improving results, even without Political. Revenue trends appear to be moderating even without the benefit of Political advertising. Q4 advertising pacings are down 17%, a sequential improvement from the 21% decline in q3, ex Political. Its Digital Interactive business continues its double-digit revenue growth in Q4, up an expected 16%, a sequential acceleration from 14% growth in Q3 …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
