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CUMULUS MEDIA Reports Operating Results for 2020

/EIN News/ -- ATLANTA, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Cumulus Media Inc. (NASDAQ: CMLS) (the “Company,” "CUMULUS MEDIA," “we,” “us,” or “our”) today announced operating results for the three months and year ended December 31, 2020.

Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, "Given 2020’s extenuating circumstances, I am extremely proud of the Company’s performance and the efforts of the entire Cumulus team to meet the challenges posed by COVID-19. In the face of the pandemic, we maximized revenue performance, materially reduced expenses, generated cash through strong working capital management, and executed highly accretive divestitures that strengthened our balance sheet. As a result of these efforts and with a recovering economy, we believe that we are well-positioned to return our business to its pre-pandemic trajectory and to capitalize on strategic and financial options to best drive shareholder returns.”

2020 Key Highlights:

  • Improved quarterly revenue performance sequentially from Q2 to Q4, both in total and excluding political
  • Achieved 9.4% year-over-year digital revenue growth (12.1% on a same station basis), driven by podcasting growth of nearly 40%
  • Reduced year-over-year fixed and semi-variable costs by more than $90 million, including nearly $30 million of permanent actions with an annual run-rate benefit of more than $45 million
  • Generated $33.2 million of cash from operations for the full year
  • Completed two significant M&A transactions generating aggregate gross proceeds of $282 million
  • Paid down $54.3 million of term loan and retired $47.2 million of senior notes
  • Finished the year with $271.8 million of cash on hand (an increase of $256.6 million compared with December 31, 2019)

Operating Summary (dollars in thousands, except percentages and per share data):

For the three months ended December 31, 2020, the Company reported net revenue of $245.9 million, a decrease of 13.9% from the three months ended December 31, 2019, net loss of $0.2 million and Adjusted EBITDA of $39.6 million.

For the three months ended December 31, 2020, the Company reported same station net revenue of $245.9 million, a decrease of 13.1% from the three months ended December 31, 2019, and same station Adjusted EBITDA of $39.7 million.

For the year ended December 31, 2020, the Company reported net revenue of $816.2 million, a decrease of 26.7% from the year ended December 31, 2019, net loss of $59.7 million and Adjusted EBITDA of $81.3 million.

For the year ended December 31, 2020, the Company reported same station net revenue of $814.8 million, a decrease of 25.2% from the year ended December 31, 2019, and same station Adjusted EBITDA of $82.2 million, a decrease of 61.6% from the year ended December 31, 2019.


As Reported Three Months Ended
December 31, 2020
  Three Months Ended
December 31, 2019
  % Change
Net revenue $ 245,897     $ 285,468     (13.9 )%
Net (loss) income $ (249 )   $ 1,621     N/A
Adjusted EBITDA (1) $ 39,576     $ 50,662     (21.9 )%
Basic (loss) income per share $ (0.01 )   $ 0.08     N/A
Diluted (loss) income per share $ (0.01 )   $ 0.08     N/A


Same Station (2) Three Months Ended
December 31, 2020
  Three Months Ended
December 31, 2019
  % Change
Net revenue $ 245,897     $ 283,005     (13.1 )%
Adjusted EBITDA (1) $ 39,686     $ 51,827     (23.4 )%


As Reported Year Ended December 31, 2020   Year Ended December 31, 2019   % Change
Net revenue $ 816,218     $ 1,113,445     (26.7 )%
Net (loss) income $ (59,719 )   $ 61,257     N/A
Adjusted EBITDA (1) $ 81,257     $ 212,988     (61.8 )%
Basic (loss) income per share $ (2.94 )   $ 3.04     N/A
Diluted (loss) income per share $ (2.94 )   $ 3.02     N/A


Same Station (2) Year Ended December 31, 2020   Year Ended December 31, 2019   % Change
Net revenue $ 814,772     $ 1,089,781     (25.2 )%
Adjusted EBITDA (1) $ 82,247     $ 214,358     (61.6 )%

Revenue Detail Summary (dollars in thousands):

As Reported Three Months Ended December 31, 2020   Three Months Ended December 31, 2019   % Change
Broadcast radio revenue:          
Spot $ 128,111     $ 158,795     (19.3 )%
Network 72,603     79,884     (9.1 )%
Total broadcast radio revenue 200,714     238,679     (15.9 )%
Digital 23,791     21,618     10.1  %
Other 21,392     25,171     (15.0 )%
Net revenue $ 245,897     $ 285,468     (13.9 )%


Same Station (2) Three Months Ended December 31, 2020   Three Months Ended December 31, 2019   % Change
Broadcast radio revenue:          
Spot $ 128,111     $ 156,910     (18.4 )%
Network 72,603     79,884     (9.1 )%
Total broadcast radio revenue 200,714     236,794     (15.2 )%
Digital 23,791     21,384     11.3  %
Other 21,392     24,827     (13.8 )%
Net revenue $ 245,897     $ 283,005     (13.1 )%


As Reported Year Ended December 31, 2020   Year Ended December 31, 2019   % Change
Broadcast radio revenue:          
Spot $ 431,225     $ 622,695     (30.7 )%
Network 232,820     316,329     (26.4 )%
Total broadcast radio revenue 664,045     939,024     (29.3 )%
Digital 85,963     78,602     9.4  %
Other 66,210     95,819     (30.9 )%
Net revenue $ 816,218     $ 1,113,445     (26.7 )%


Same Station (2) Year Ended December 31, 2020   Year Ended December 31, 2019   % Change
Broadcast radio revenue:          
Spot $ 430,130     $ 605,916     (29.0 )%
Network 232,820     315,089     (26.1 )%
Total broadcast radio revenue 662,950     921,005     (28.0 )%
Digital 85,893     76,642     12.1  %
Other 65,929     92,134     (28.4 )%
Net revenue $ 814,772     $ 1,089,781     (25.2 )%

Balance Sheet Summary (dollars in thousands):

  December 31, 2020   December 31, 2019
Cash and cash equivalents $ 271,761      $ 15,142   
Term loan due 2026 (3) $ 469,411      $ 523,688   
6.75% Senior notes (3) $ 452,836      $ 500,000   
2020 Revolving credit facility $ 60,000      $ —   


  Year Ended December 31, 2020   Year Ended December 31, 2019
Capital expenditures $ 14,868     $ 29,469  


  Three Months Ended December 31, 2020   Three Months Ended December 31, 2019
Capital expenditures $ 5,309     $ 12,070  


(1)   Adjusted EBITDA is not a financial measure calculated or presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For additional information, see “Non-GAAP Financial Measures.”
(2)   Adjusted for all merger and acquisition activity occurring in 2019 and 2020 as if such activity had occurred as of January 1, 2019. Same Station financial measures are not financial measures calculated or presented in accordance with GAAP. For additional information, see “Non-GAAP Financial Measures.”
(3)   Excludes unamortized debt issuance costs.


Earnings Conference Call Details

The Company will host a conference call today at 8:30 AM ET to discuss its fourth quarter and full year 2020 operating results. A link to the webcast of the conference call will be available on the investor section of the Company’s website (www.cumulusmedia.com/investors/). The conference call dial-in number for domestic callers is 833-614-1549 and international callers should dial 914-987-7288 for call access. If prompted, the conference ID number is 6284029. Please call five to ten minutes in advance to ensure that you are connected prior to the call.

The conference call will also be broadcast live in listen-only mode through a link on the Company’s investor relations website at www.cumulusmedia.com/investors. This link can also be used to access a recording of the call, which will be available shortly following its completion.

Forward-Looking Statements

Certain statements in this release may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Such statements are statements other than historical fact and relate to our intent, belief or current expectations primarily with respect to our future operating, financial, and strategic performance. Any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ from those contained in or implied by the forward-looking statements as a result of various factors including, but not limited to, risks and uncertainties related to the implementation of our strategic operating plans, the evolving and uncertain nature of the COVID-19 pandemic and its impact on the Company, the media industry, and the economy in general and other risk factors described from time to time in our filings with the Securities and Exchange Commission. Many of these risks and uncertainties are beyond our control, and the unexpected occurrence or failure to occur of any such events or matters could significantly alter our actual results of operations or financial condition. CUMULUS MEDIA assumes no responsibility to update any forward-looking statements, which are based upon expectations as of the date hereof, as a result of new information, future events or otherwise.

About CUMULUS MEDIA

CUMULUS MEDIA (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month - wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 415 owned-and-operated stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across nearly 7,300 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Non-GAAP Financial Measures

From time to time, we utilize certain financial measures that are not prepared or calculated in accordance with GAAP to assess our financial performance and profitability. Consolidated adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") is the financial metric by which management and the chief operating decision maker allocate resources of the Company and analyze the performance of the Company as a whole. Management also uses this measure to determine the contribution of our core operations to the funding of our corporate resources utilized to manage our operations and the funding of our non-operating expenses including debt service and acquisitions. In addition, consolidated Adjusted EBITDA is a key metric for purposes of calculating and determining our compliance with certain covenants contained in our Refinanced Credit Agreement.

In determining Adjusted EBITDA, the Company excludes the following from net income: interest, taxes, depreciation, amortization, stock-based compensation expense, gain or loss on the exchange, sale or disposal of any assets or stations, early extinguishment of debt, local marketing agreement fees, expenses relating to acquisitions, divestitures, restructuring costs, reorganization items and non-cash impairments of assets, if any.

Because of the significant effect that the Company’s material station acquisitions and dispositions have had on our results of operations, the Company also presents certain financial information herein on a “Same Station” basis, both with and excluding the effect of political advertising in order to address the cyclical nature of the two-year election cycle. Same Station metrics are adjusted for material station acquisitions and dispositions as if these acquisitions and dispositions had occurred as of the beginning of the comparable period in the prior year, as indicated. Same station financial measures excluding the impact of political advertising are further adjusted to exclude the impact of political advertising in the comparable periods.

Management believes that Adjusted EBITDA and Same Station financial measures, with and excluding the impact of political advertising, although not measures that are calculated in accordance with GAAP, are commonly employed by the investment community as measures for determining the market value of a media company and comparing the operational and financial performance among media companies. Management has also observed that Adjusted EBITDA and Same Station financial measures, with and excluding the impact of political advertising, are routinely utilized to evaluate and negotiate the potential purchase price for media companies. Given the relevance to our overall value, management believes that investors consider the metrics to be extremely useful. We refer to Adjusted EBITDA and Same Station financial measures, with and excluding the impact of political advertising, as the "Non-GAAP Financial Measures."

Non-GAAP Financial Measures should not be considered in isolation or as a substitute for net income, net revenue, operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP. In addition, Non-GAAP Financial Measures may be defined or calculated differently by other companies and, therefore, comparability may be limited.

For further information, please contact:
Cumulus Media Inc.
Investor Relations Department
IR@cumulus.com
404-260-6600



Supplemental Financial Data and Reconciliations

CUMULUS MEDIA INC.
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands)

    Three Months Ended   Year Ended
    December
31, 2020
  December
31, 2019
  December
31, 2020
  December
31, 2019
Net revenue   $ 245,897     $ 285,468     $ 816,218     $ 1,113,445  
Operating expenses:                
Content costs   100,774     109,722     337,078     405,653  
Selling, general & administrative expenses   97,839     116,610     367,695     461,218  
Depreciation and amortization   13,227     12,535     52,290     52,554  
Local marketing agreement fees   112     1,117     3,149     3,500  
Corporate expenses   7,934     8,646     31,003     34,372  
Stock-based compensation expense   772     1,494     3,337     5,301  
Restructuring costs   1,428     750     14,859     18,315  
Loss (gain) on sale of assets or stations   1,248     509     8,761     (55,403 )
Impairment of assets held for sale       1,165         6,165  
Impairment of capitalized software development costs   4,139         4,139      
Impairment of intangible assets       15,563     4,509     15,563  
Total operating expenses   227,473     268,111     826,820     947,238  
Operating (loss) income   18,424     17,357     (10,602 )   166,207  
Non-operating expense:                
Interest expense   (19,122 )   (16,816 )   (68,099 )   (82,916 )
Interest income       5     6     25  
Gain on early extinguishment of debt               381  
Other expense, net   (197 )   (133 )   (273 )   (177 )
Total non-operating expense, net   (19,319 )   (16,944 )   (68,366 )   (82,687 )
(Loss) income before income taxes   (895 )   413     (78,968 )   83,520  
Income tax benefit (expense)   646     1,208     19,249     (22,263 )
Net (loss) income   $ (249 )   $ 1,621     $ (59,719 )   $ 61,257  
                 


The following tables reconcile net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for the periods presented herein (dollars in thousands):

       
As Reported   Three Months Ended
December 31, 2020
  Three Months Ended
December 31, 2019
GAAP net (loss) income   $ (249 )   $ 1,621  
Income tax benefit   (646 )   (1,208 )
Non-operating expense, including net interest expense   19,319     16,944  
Local marketing agreement fees   112     1,117  
Depreciation and amortization   13,227     12,535  
Stock-based compensation expense   772     1,494  
Impairment of assets held for sale         1,165  
Impairment of intangible assets         15,563  
Loss (gain) on sale of assets or stations   1,248     509  
Impairment of capitalized software development costs   4,139        
Restructuring costs   1,428     750  
Franchise taxes   226     172  
Adjusted EBITDA   $ 39,576     $ 50,662  


Same Station (2)   Three Months Ended
December 31, 2020
  Three Months Ended
December 31, 2019
Net income   $ 213     $ 2,865  
Income tax benefit   (646 )   (1,208 )
Non-operating expense, including net interest expense   19,319     16,944  
Local marketing agreement fees   112     1,117  
Depreciation and amortization     13,216     12,502  
Stock-based compensation expense   772     1,494  
Impairment of assets held for sale         1,165  
Impairment of intangible assets         15,563  
Loss on sale of assets or stations   838     485  
Impairment of capitalized software development costs   4,139        
Restructuring costs   1,497     728  
Franchise taxes   226     172  
Adjusted EBITDA   $ 39,686     $ 51,827  


As Reported   Year Ended
December 31, 2020
  Year Ended
December 31, 2019
GAAP net (loss) income   $ (59,719 )   $ 61,257  
Income tax (benefit) expense   (19,249 )   22,263  
Non-operating expense, including net interest expense   68,366     83,068  
Local marketing agreement fees   3,149     3,500  
Depreciation and amortization   52,290     52,554  
Stock-based compensation expense   3,337     5,301  
Loss (gain) on sale of assets or stations   8,761     (55,403 )
Impairment of assets held for sale       6,165  
Impairment of capitalized software development costs   4,139      
Impairment of intangible assets   4,509     15,563  
Restructuring costs   14,859     18,315  
Franchise taxes   815     786  
Gain on early extinguishment of debt       (381 )
Adjusted EBITDA   $ 81,257     $ 212,988  


Same Station (2)   Year Ended
December 31, 2020
  Year Ended
December 31, 2019
Net (loss) income   $ (57,160 )   $ 62,705  
Income tax (benefit) expense   (19,249 )   22,263  
Non-operating expense, including net interest expense   68,366     83,068  
Local marketing agreement fees   3,149     3,500  
Depreciation and amortization   52,232     52,522  
Stock-based compensation expense   3,337     5,301  
Loss (gain) on sale of assets or stations   7,270     (55,427 )
Impairment of assets held for sale       6,165  
Impairment of capitalized software development costs   4,139      
Impairment of intangible assets   4,509     15,563  
Restructuring costs   14,839     18,293  
Franchise taxes   815     786  
Gain on early extinguishment of debt       (381 )
Adjusted EBITDA   $ 82,247     $ 214,358  


The following tables reconcile as reported net revenue and as reported Adjusted EBITDA to same station net revenue and same station Adjusted EBITDA, both including and excluding the impact of political, for the periods presented herein (dollars in thousands):

    Three Months Ended
December 31, 2020
  Three Months Ended
December 31, 2019
As reported net revenue   $ 245,897     $ 285,468  
Station dispositions and swaps       (2,463 )
Same station net revenue   $ 245,897     $ 283,005  
Political revenue   (14,306 )   (2,983 )
Same station net revenue, excluding impact of political revenue   $ 231,591     $ 280,022  


    Three Months Ended
December 31, 2020
  Three Months Ended
December 31, 2019
As reported Adjusted EBITDA   $ 39,576      $ 50,662   
Station dispositions and swaps   110      1,165   
Same station Adjusted EBITDA   $ 39,686      $ 51,827   
Political EBITDA   (12,875 )   (2,685 )
Same station Adjusted EBITDA, excluding impact of political EBITDA   $ 26,811      $ 49,142   


    Year Ended
December 31, 2020
  Year Ended
December 31, 2019
As reported net revenue   $ 816,218     $ 1,113,445  
Station dispositions and swaps   (1,446 )   (23,664 )
Same station net revenue   $ 814,772     $ 1,089,781  
Political revenue   (26,256 )   (6,375 )
Same station net revenue, excluding impact of political revenue   $ 788,516     $ 1,083,406  


    Year Ended December 31, 2020   Year Ended December 31, 2019
As reported Adjusted EBITDA   $ 81,257     $ 212,988  
Station dispositions and swaps   990     1,370  
Same station Adjusted EBITDA   $ 82,247     $ 214,358  
Political EBITDA   (23,630 )   (5,738 )
Same station Adjusted EBITDA, excluding impact of political EBITDA   $ 58,617     $ 208,620  

 


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