• Cumulus Reports Operating Results for Third Quarter 2016

    المصدر: Nasdaq GlobeNewswire / 08 نوفمبر 2016 21:02:05   Europe/London

    ATLANTA, Nov. 08, 2016 (GLOBE NEWSWIRE) -- Cumulus Media Inc. (NASDAQ:CMLS) (the “Company,” “we,” “us,” or “our”) today announced operating results for the three and nine months ended September 30, 2016.  

    For the three months ended September 30, 2016, the Company reported net revenue of $286.1 million, down 1.1% from the three months ended September 30, 2015, net income of $46.3 million and Adjusted EBITDA of $43.9 million, down 37.9% from the quarter ended September 30, 2015. For the nine months ended September 30, 2016, the Company reported net revenue of $841.9 million, down 2.1% from the nine months ended September 30, 2015, net income of $33.0 million and Adjusted EBITDA of $149.0 million, down 24.0% from the nine months ended September 30, 2015.

    Excluding the impact of $14.4 million of expenses incurred during the quarter ended September 30, 2016, to resolve previously disputed syndicated programming and network inventory expenses with CBS Radio Inc., Adjusted EBITDA declined 17.5% from the quarter ended September 30, 2015 and 16.7% from the nine months ended September 30, 2015.

    Mary Berner, President and Chief Executive Officer of Cumulus Media Inc. said, “A year into our turnaround effort, we have made considerable progress against our operational priorities while leading the industry in ratings growth. Though our performance in the quarter was negatively impacted by headwinds which have challenged us all year, we see evidence that our work is paying off financially as we gained share this quarter for the first time in at least four years. As we seek to maintain the momentum of our initial strategies, we have now also launched a focused effort to improve sales execution as the next logical step in our turnaround plan.”

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

     Three Months Ended September 30,
     2016 2015 % Change
    Net revenue$286,136  $289,441  (1.1)%
    Net income (loss)$46,321  $(542,179) ** 
    Adjusted EBITDA (1)$43,884  $70,620  (37.9)%
    Basic and diluted income (loss) per share$1.58  $(18.57)  
              


     Nine Months Ended September 30,
     2016 2015 % Change
    Net revenue$841,859  $859,854  (2.1)%
    Net income (loss)$32,958  $(541,895) ** 
    Adjusted EBITDA (1)$148,998  $196,098  (24.0)%
    Basic and diluted income (loss) per share$1.12  $(18.58)  
              

    ** Calculation is not meaningful

      September 30, 2016 December 31, 2015 % Change
    Cash and cash equivalents $157,601  $31,657  397.8%
            
    Term loans 1,838,940  $1,838,940  %
    7.75% Senior Notes 610,000  610,000  %
    Total debt $2,448,940  $2,448,940  %
                


     Three Months Ended September 30,
     2016 2015 % Change
    Capital expenditures$5,242  $957  447.8%
               


     Nine Months Ended September 30,
     2016 2015 % Change
    Capital expenditures$16,704  $15,817  5.6%
               

    (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 Measure and Definition”.

    Results for Three Months Ended September 30, 2016

    Net Revenue

    The Company operates in two reportable segments, the Radio Station Group and Westwood One. The Radio Station Group revenue is derived primarily from the sale of broadcasting time to local, regional and national advertisers. Westwood One revenue is generated primarily through network advertising.

    Corporate and Other includes overall executive, administrative and support functions for each of the Company’s reportable segments, including information technology, human resources, legal, finance and administrative functions.

    The following tables present our net revenue by segment (dollars in thousands).

      Three Months Ended September 30, 2016
      Radio Station Group Westwood One Corporate and Other Consolidated
    Net revenue $206,199  $79,413  $524  $286,136 
    % of total revenue 72.1% 27.8% 0.1% 100.0%
    $ change from three months ended September 30, 2015 $1,522  $(4,658) $(169) $(3,305)
    % change from three months ended September 30, 2015 0.7% (5.5)% (24.4)% (1.1)%
                 


      Three Months Ended September 30, 2015
      Radio Station Group Westwood One Corporate and Other Consolidated
    Net revenue $204,677  $84,071  $693  $289,441 
    % of total revenue 70.7% 29.1% 0.2% 100.0%
                 

    Net income (loss)

    The following tables present our net income (loss) by segment (dollars in thousands).

      Three Months Ended September 30, 2016
      Radio Station Group Westwood One Corporate and Other Consolidated
    Net income (loss) $134,119  $(10,874) $(76,924) $46,321 
    $ change from three months ended September 30, 2015 $522,257  $134,470  $(68,227) $588,500 
    % change from three months ended September 30, 2015  **  92.5% (784.5)%  ** 
               


      Three Months Ended September 30, 2015
      Radio Station Group Westwood One Corporate and Other Consolidated
    Net loss $(388,138) $(145,344) $(8,697) $(542,179)
                     

    ** Calculation is not meaningful

    Adjusted EBITDA

    The following tables present our Adjusted EBITDA by segment (dollars in thousands).

      Three Months Ended September 30, 2016
      Radio Station Group Westwood One Corporate and Other Consolidated
    Adjusted EBITDA $56,237  $(2,689) $(9,664) $43,884 
    $ change from three months ended September 30, 2015 $(6,795) $(18,809) $(1,132) $(26,736)
    % change from three months ended September 30, 2015 (10.8)%  **  (13.3)% (37.9)%
                  


      Three Months Ended September 30, 2015
      Radio Station Group Westwood One Corporate and Other Consolidated
    Adjusted EBITDA $63,032  $16,120  $(8,532) $70,620 

    ** Calculation is not meaningful

    Results for Nine Months Ended September 30, 2016

    Net Revenue

    The following tables present our net revenue by segment (dollars in thousands).

      Nine Months Ended September 30, 2016
      Radio Station Group Westwood One Corporate and Other Consolidated
    Net revenue $592,640  $247,507  $1,712  $841,859 
    % of total revenue 70.4% 29.4% 0.2% 100.0%
    $ change from nine months ended September 30, 2015 $2,797  $(19,880) $(912) $(17,995)
    % change from nine months ended September 30, 2015 0.5% (7.4)% (34.8)% (2.1)%
                 


      Nine Months Ended September 30, 2015
      Radio Station Group Westwood One Corporate and Other Consolidated
    Net revenue $589,843  $267,387  $2,624  $859,854 
    % of total revenue 68.6% 31.1% 0.3% 100.0%
                 

    Net income (loss)

    The following tables present our net income (loss) by segment (dollars in thousands).

      Nine Months Ended September 30, 2016
      Radio Station Group Westwood One Corporate and Other Consolidated
    Net income (loss) $205,263  $(12,872) $(159,433) $32,958 
    $ change from nine months ended September 30, 2015 $514,301  $126,113  $(65,561) $574,853 
    % change from nine months ended September 30, 2015  **  90.7% (69.8)%  ** 
                   


      Nine Months Ended September 30, 2015
      Radio Station Group Westwood One Corporate and Other Consolidated
    Net loss $(309,038) $(138,985) $(93,872) $(541,895)
                     

    ** Calculation is not meaningful

    Adjusted EBITDA

    The following tables present our Adjusted EBITDA by segment (dollars in thousands).

      Nine Months Ended September 30, 2016
      Radio Station Group Westwood One Corporate and Other Consolidated
    Adjusted EBITDA $159,278  $17,998  $(28,278) $148,998 
    $ change from nine months ended September 30, 2015 $(20,203) $(25,058) $(1,839) $(47,100)
    % change from nine months ended June 30, 2015 (11.3)% (58.2)% (7.0)% (24.0)%
                 


      Nine Months Ended September 30, 2015
      Radio Station Group Westwood One Corporate and Other Consolidated
    Adjusted EBITDA $179,481  $43,056  $(26,439) $196,098 
                    

    The following table presents our net revenue by segment for each quarter during the year ended December 31, 2015 (dollars in thousands).

      Radio Station Group Westwood One Corporate and Other Consolidated
    Net revenue Q1 2015 $175,668  $94,549  $862  $271,079 
    Net revenue Q2 2015    209,498   88,767   1,069   299,334 
    Net revenue Q3 2015    204,677   84,071   693   289,441 
    Net revenue Q4 2015    206,540     101,581     704     308,825 
    Net revenue FY 2015 $796,383  $368,968   $3,328   $1,168,679  
             

    The following table presents our net income (loss) by segment for each quarter during the year ended December 31, 2015 (dollars in thousands).

      Radio Station Group Westwood One Corporate and Other Consolidated
    Net income (loss) Q1 2015 $26,533  $(1,208) $(37,340) $(12,015)
    Net income (loss) Q2 2015 52,567  7,568  (47,836) 12,299 
    Net loss Q3 2015 (388,139) (145,345) (8,695) (542,179)
    Net income (loss) Q4 2015 43,776  (2,195) (46,180) (4,599)
    Net (loss) income FY 2015 $(265,263) $(141,180) $(140,051) $(546,494)
                     

    The following table presents our Adjusted EBITDA by segment for each quarter during the year ended December 31, 2015 (dollars in thousands).

      Radio Station Group Westwood One Corporate and Other Consolidated
    Adjusted EBITDA Q1 2015 $45,416  $8,424  $(9,177) $44,663 
    Adjusted EBITDA Q2 2015 71,033  18,512  (8,730) 80,815 
    Adjusted EBITDA Q3 2015 63,032  16,120  (8,532) 70,620 
    Adjusted EBITDA Q4 2015 62,192  9,902  (9,047) 63,047 
    Adjusted EBITDA FY 2015 $241,673  $52,958  $(35,486) $259,145 
                     

    As previously disclosed, on November 3, 2015, we received a notification from the Listing Qualifications Department of The NASDAQ Stock Market LLC (“NASDAQ”) indicating that we were not in compliance with NASDAQ Listing Rule 5450(a)(1) (the “Rule”) because the minimum bid price of our Class A common stock had closed below $1.00 per share for 30 consecutive business days.

    On October 27, 2016 we received notification from NASDAQ that we had regained compliance with the Rule in order for our Class A common stock to remain listed on the NASDAQ Capital Market.

    Earnings Call Information
    Cumulus Media Inc. will host a teleconference today at 4:30 PM eastern time to discuss its third quarter 2016 operating results.

    The conference call dial-in number for domestic callers is 877-830-7699. International callers should dial 574-990-0924 for conference call access. If prompted, the conference ID is 98715812. Please call five to ten minutes in advance to ensure that you are connected prior to the presentation.

    Following completion of the call, a replay can be accessed until 11:30 PM eastern time, December 8, 2016. Domestic callers can access the replay by dialing 800-585-8367 or 855-859-2056, replay code 98715812. International callers should dial +44 (0)145255000 for conference replay access. An archive of the webcast will be available beginning 24 hours after the call for a period of 30 days.

    A link to the live audio webcast of the conference call and the related earnings presentation will be available on the investor section of the Cumulus Media Inc. website (www.cumulus.com/investors).

    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 certain historical and our future operating, financial, and strategic performance. Any such forward-looking statements are not guarantees of future performance and may 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 relating to the need for additional funds to service our debt and to execute our business strategy, our ability to access borrowings under our revolving credit facility, our ability from time to time to renew one or more of our broadcast licenses, changes in interest rates, changes in the fair value of our investments, the timing of, and our ability to complete any acquisitions or dispositions pending from time to time, costs and synergies resulting from the integration of any completed acquisitions, our ability to effectively manage costs, our ability to generate and manage growth, the popularity of radio as a broadcasting and advertising medium, changing consumer tastes, the impact of general economic conditions in the United States or in specific markets in which we currently do business, industry conditions, including existing competition and future competitive technologies and cancellation, disruptions or postponements of advertising schedules in response to national or world events, our ability to generate revenues from new sources, including local commerce and technology-based initiatives, the impact of regulatory rules or proceedings that may affect our business from time to time, our ability to continue to meet the listing standards for our Class A common stock to continue to be listed for trading on the NASDAQ stock market, the write off of a material portion of the fair value of our FCC broadcast licenses and goodwill, and other risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”) and any subsequently filed Forms 10-Q. 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 Inc. assumes no responsibility to update any forward-looking statement as a result of new information, future events or otherwise.

    About Cumulus Media
    A leader in the radio broadcasting industry, Cumulus Media (NASDAQ:CMLS) combines high-quality local programming with iconic, nationally syndicated media, sports and entertainment brands to deliver premium content choices to the 245 million people reached each week through its approximately 450 owned-and-operated stations broadcasting in 90 US media markets (including eight of the top 10), more than 8,200 broadcast radio stations affiliated with its Westwood One network and numerous digital channels. Together, the Cumulus/Westwood One platforms make Cumulus Media one of the few media companies that can provide advertisers with national reach and local impact. Cumulus/Westwood One is the exclusive radio broadcast partner to some of the largest brands in sports, entertainment, news, and talk, including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYs, the Academy of Country Music Awards, the American Music Awards, the Billboard Music Awards, Westwood One News, and more. Additionally, it is the nation's leading provider of country music and lifestyle content through its NASH brand, which serves country fans nationwide through radio programming, exclusive digital content, and live events. For more information, visit www.cumulus.com

    CUMULUS MEDIA INC.
    Unaudited Condensed Consolidated Statements of Operations
    (Dollars in thousands, except per share data)
     
      Three Months Ended September 30,
     Nine Months Ended September 30,
             
      2016 2015 2016 2015
    Net revenue        
    Operating expenses:286,136  289,441 841,859 859,854 
    Content costs 115,348  94,829  312,526  286,655 
    Selling, general & administrative expenses 117,387  115,562  352,474  350,417 
    Depreciation and amortization 21,957  25,547  68,023  76,582 
    LMA fees 2,481  2,515  10,351  7,585 
    Corporate expenses 9,675  8,186  28,388  27,004 
    Stock-based compensation expense 735  12,304  2,403  20,047 
    Acquisition-related and restructuring costs (450) 13,763  3,237  13,160 
    (Gain) loss on sale of assets or stations (94,014) 57  (97,155) 792 
    Impairment of intangible assets and goodwill   565,584  1,816  565,584 
    Impairment charges - equity interest in Pulser Media Inc.   18,308    19,364 
    Total operating expenses 173,119  856,655  682,063  1,367,190 
    Operating income (loss) 113,017  (567,214) 159,796  (507,336)
    Non-operating (expense) income:        
    Interest expense (34,929) (35,691) (103,896) (106,087)
    Interest income 139  22  364  407 
    Other income (expense), net 882  (151) 1,598  12,601 
    Total non-operating expense, net (33,908) (35,820) (101,934) (93,079)
    Income (loss) before income taxes 79,109  (603,034) 57,862  (600,415)
    Income tax (expense) benefit (32,788) 60,855  (24,904) 58,520 
    Net income (loss) $46,321  $(542,179) $32,958  $(541,895)
    Basic and diluted income (loss) per common share:        
    Basic: Income (loss) per share $1.58  $(18.57) $1.12  $(18.58)
    Diluted: Income (loss) per share $1.58  $(18.57) $1.12  $(18.58)
    Weighted average basic common shares outstanding 29,275,111  29,194,508  29,268,885  29,165,188 
    Weighted average diluted common shares outstanding 29,275,111  29,194,508  29,268,885  29,165,188 
                 

    Non-GAAP Financial Measure and Definition
    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. Adjusted EBITDA is the financial metric utilized by management to analyze the cash flow generated by our business. This measure isolates the amount of income generated by our core operations after the incurrence of corporate, general and administrative expenses. 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 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 credit facility.

    In deriving this measure, the Company excludes depreciation, amortization, and stock-based compensation expense, as these do not represent cash payments for activities directly related to our core operations. The Company excludes any gain or loss on the exchange or sale of any assets as it does not represent a cash transaction. The Company also excludes any gain or loss on the exchange or sale of any assets and any gain or loss on derivative instruments as they do not represent cash transactions nor are they associated with core operations. Expenses relating to acquisitions and restructuring costs are also excluded from the calculation of Adjusted EBITDA as they are not directly related to our core operations. The Company also excludes any costs associated with impairment of assets as they do not require a cash outlay.

    The Company believes that Adjusted EBITDA, although not a measure that is calculated in accordance with GAAP, is commonly employed by the investment community as a measure for determining the market value of a media company. The Company has also observed that Adjusted EBITDA is routinely employed to evaluate and negotiate the potential purchase price for media companies and is a key metric for purposes of calculating and determining compliance with certain covenants in our credit facility. Given the relevance to our overall value, the Company believes that investors consider the metric to be extremely useful.

    Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss), 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, Adjusted EBITDA may be defined or calculated differently by other companies, and comparability may be limited.

    The following tables reconcile net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands):

      Three Months Ended September 30, 2016
     
                 
      Radio Station Group  Westwood One  Corporate and Other  Consolidated 
                 
    Net income (loss)$134,119 $(10,874)$(76,924)$46,321 
    Income tax expense     32,788  32,788 
    Non-operating (income) expense, including net interest expense (2) 59  33,851  33,908 
    LMA fees 2,481      2,481 
    Depreciation and amortization 13,653  7,782  522  21,957 
    Stock-based compensation expense     735  735 
    Gain on sale of assets or stations (94,014)     (94,014)
    Acquisition-related and restructuring costs   344  (794) (450)
    Franchise and state taxes     158  158 
    Adjusted EBITDA $56,237  $(2,689) $(9,664) $43,884 
                     


      Three Months Ended September 30, 2015
     
                 
      Radio Station Group  Westwood One  Corporate and Other  Consolidated 
                 
    Net loss$(388,138)$(145,344)$(8,697)$(542,179)
    Income tax benefit     (60,855) (60,855)
    Non-operating (income) expense, including net interest expense (3) 313  35,510  35,820 
    LMA fees 2,515      2,515 
    Depreciation and amortization 15,900  9,092  555  25,547 
    Stock-based compensation expense     12,304  12,304 
    (Gain) loss on sale of assets or stations (50)   107  57 
    Impairment of intangible assets 432,808  132,672  104  565,584 
    Impairment charges - equity interest in Pulser Media Inc.   18,308    18,308 
    Acquisition-related and restructuring costs   1,079  12,684  13,763 
    Franchise and state taxes     (244) (244)
    Adjusted EBITDA $63,032  $16,120  $(8,532) $70,620 
                     


      Nine Months Ended September 30, 2016
     
                 
      Radio Station Group  Westwood One  Corporate and Other  Consolidated 
                 
    Net income (loss)$205,263 $(12,872)$(159,433)$32,958 
    Income tax expense     24,904  24,904 
    Non-operating expense, including net interest expense 14  226  101,694  101,934 
    LMA fees 10,351      10,351 
    Depreciation and amortization 40,780  25,657  1,586  68,023 
    Stock-based compensation expense     2,403  2,403 
    Gain on sale of assets or stations (97,130)   (25) (97,155)
    Impairment of intangible assets   1,816    1,816 
    Acquisition-related and restructuring costs   3,171  66  3,237 
    Franchise and state taxes     527  527 
    Adjusted EBITDA $159,278  $17,998  $(28,278) $148,998 
                     


      Nine Months Ended September 30, 2015
     
                 
      Radio Station Group  Westwood One  Corporate and Other  Consolidated 
                 
    Net loss$(309,038)$(138,985)$(93,872)$(541,895)
    Income tax benefit     (58,520) (58,520)
    Non-operating (income) expense, including net interest expense (5) 955  92,129  93,079 
    LMA fees 7,585      7,585 
    Depreciation and amortization 47,448  27,562  1,572  76,582 
    Stock-based compensation expense     20,047  20,047 
    Loss on sale of assets or stations 685    107  792 
    Impairment of intangible assets 432,806  132,671  107  565,584 
    Impairment charges -- equity interest in Pulser Media Inc.   19,364    19,364 
    Acquisition-related and restructuring costs   1,489  11,671  13,160 
    Franchise and state taxes     320  320 
    Adjusted EBITDA $179,481  $43,056  $(26,439) $196,098 
                     

    The following tables reconcile net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for the three months ended March 31, 2015, June 30, 2015 and December 31, 2015, respectively (dollars in thousands):

      Three Months Ended March 31, 2015
     
                 
      Radio Station Group  Westwood One  Corporate and Other  Consolidated 
                 
    Net income (loss)$26,533 $(1,208)$(37,340)$(12,015)
    Income tax expense (benefit) 35    (10,392) (10,357)
    Non-operating (income) expense, including net interest expense (1) 320  33,928  34,247 
    LMA fees 2,498      2,498 
    Depreciation and amortization 15,532  9,312  467  25,311 
    Stock-based compensation expense     3,863  3,863 
    Loss on sale of assets or stations 819      819 
    Franchise and state taxes     297  297 
    Adjusted EBITDA $45,416  $8,424  $(9,177) $44,663 
                     


      Three Months Ended June 30, 2015
     
                 
      Radio Station Group  Westwood One  Corporate and Other  Consolidated 
                 
    Net income (loss)$52,567 $7,568 $(47,836)$12,299 
    Income tax (benefit) expense (35)   12,729  12,694 
    Non-operating expense,  including net interest expense (2) 320  22,693  23,011 
    LMA fees 2,572      2,572 
    Depreciation and amortization 16,014  9,158  551  25,723 
    Stock-based compensation expense     3,880  3,880 
    Gain on sale of assets or stations (84)     (84)
    Impairment charges - equity interest in Pulser Media Inc.   1,056    1,056 
    Acquisition-related and restructuring costs   410  (1,013) (603)
    Franchise and state taxes     267  267 
    Adjusted EBITDA $71,032  $18,512  $(8,729) $80,815 
                     


      Three Months Ended December 31, 2015
     
                 
      Radio Station Group  Westwood One  Corporate and Other  Consolidated 
                 
    Net income (loss)$43,776 $(2,195)$(46,180)$(4,599)
    Income tax expense     12,680  12,680 
    Non-operating (income) expense, including net interest expense (2) 293  33,671  33,962 
    LMA fees 2,541    3  2,544 
    Depreciation and amortization 15,894  8,976  653  25,523 
    Stock-based compensation expense     986  986 
    (Gain) loss on sale of assets or stations (17) 2,081    2,064 
    Acquisition-related and restructuring costs   747  2,733  3,480 
    Franchise and state taxes     (371) (371)
    Gain on early extinguishment of debt     (13,222) (13,222)
    Adjusted EBITDA $62,192  $9,902  $(9,047) $63,047 
                     

     

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

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