Eight days after announcing more than $14 million in stock buybacks from MSG National Properties LLC, Townsquare Media has revealed they’ve also bought back around three million options from its board of directors and company executives.
The transaction was executed at a net purchase price of $3.62 per option, leveraging the difference between the share closing price on April 3, and the option strike price. These options were part of the original grant at the time of Townsquare Media’s IPO in July 2014 and were nearing their expiration date in July 2024.
This new repurchase price of $10.8 million will be covered entirely by Townsquare’s cash reserves.
Bill Wilson, Townsquare Media’s Chief Executive Officer, emphasized the effectiveness of the company’s long-term incentive plan in retaining key personnel and aligning management’s interests with those of the shareholders. He stated, “Our management team owns approximately 11% of shares outstanding today and are well aligned with the company’s investors to build shareholder value.”
Wilson highlighted the company’s robust cash flow from operations, saying, “Once again, we were able to utilize cash on hand to settle the transaction, due to the strong cash generation characteristics of our business model, which produced $68 million of cash flow from operations in 2023 — up 35% year-over-year.”
Wilson will further discuss these financial matters and transactions at its first quarter earnings call on May 9.
