Revenue during the quarter grew 27.93 percent to $165.76 million from $129.57 million in the previous year period. Gross margin for the quarter expanded 9 basis points over the previous year period to 30.83 percent. Total expenses were 76.51 percent of quarterly revenues, up from 71.56 percent for the same period last year. That has resulted in a contraction of 495 basis points in operating margin to 23.49 percent.

Operating income for the quarter was $38.94 million, compared with $36.85 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $44.66 million compared with $33.72 million in the prior year period. At the same time, adjusted EBITDA margin improved 92 basis points in the quarter to 26.94 percent from 26.03 percent in the last year period.

"In the third quarter, net revenue and Adjusted EBITDA increased 28% and 32% over the prior year, respectively, and net income decreased 4%. Excluding the impact of a one-time impairment charge, net income increased 12% over the prior year," commented Steven Price, chairman and chief executive officer of Townsquare. “On a pro forma basis, our Local Marketing Solutions segment continued its positive momentum by delivering another quarter of solid growth, with net revenue increasing approximately 4% over the prior year period. These results were offset by a decline in our Entertainment segment due primarily to exceptionally poor weather at four of our largest fairs. Excluding those fairs, Townsquare’s pro forma net revenue and Adjusted EBITDA increased approximately 2% and 3%, respectively."

The company has spent $16.69 million cash to meet investing activities during the nine month period as against cash outgo of $65.01 million in the last year period.

The company has spent $17.68 million cash to carry out financing activities during the nine month period as against cash inflow of $54.70 million in the last year period.

Cash and cash equivalents stood at $38.41 million as on Sep. 30, 2016, up 36.90 percent or $10.35 million from $28.06 million on Sep. 30, 2015.

Working capital increases sharply
Townsquare Media, Inc. has recorded an increase in the working capital over the last year. It stood at $56.50 million as at Sep. 30, 2016, up 34.97 percent or $14.64 million from $41.86 million on Sep. 30, 2015. Current ratio was at 1.93 as on Sep. 30, 2016, up from 1.66 on Sep. 30, 2015.

Days sales outstanding went down to 36 days for the quarter compared with 46 days for the same period last year.

At the same time, days payable outstanding went down to 8 days for the quarter from 10 for the same period last year.