Cumulus Media Inc. (NASDAQ: CMLS) (the "Company," "Cumulus Media,"
"we," "us," or "our") today announced operating results for the
three and nine months ended September 30, 2024.
Mary G. Berner, President and Chief Executive
Officer of Cumulus Media, said, "During the third quarter, we
delivered revenue and EBITDA in-line with pacing commentary and
analyst estimates. Given the market challenges, we maintained our
focus on what we can control. Specifically, we continued investing
to drive growth in our digital businesses, including in digital
marketing services which increased revenue nearly 40% in the
quarter; capitalizing on areas of improvement in national and
political ad spending; maximizing operating cash flow; and
improving operating leverage through ongoing expense
reductions."
Berner continued, "Looking forward, the
advertising environment remains uncertain. Nonetheless, Cumulus has
a valuable set of assets with which to navigate that uncertainty
including: profitable and fast-growing digital businesses; a vast
national platform that can reach audiences whenever and wherever
they choose to listen; extensive feet-on-the-street local sales
capabilities which allow us to walk product through the door;
premium programming with particular strength in sports and
news/talk; an extensive untapped audio library; and a leadership
team with a strong track record of expense management and
disciplined stewardship of capital. As we continue to execute
against our priorities, we see many paths for leveraging these
assets to maximize the value they produce for our
shareholders."
Q3 Key Highlights:
- Posted total net revenue of $203.6 million, a decline of 1.8%
year-over-year
- Generated digital revenue of $40.0 million, up 7.5%
year-over-year
- Grew digital marketing services by 38% driven by an increase in
new customers, improved customer retention and higher average order
size
- Increased number of radio-only customers who also bought
digital marketing services by 32% year-over-year
- Increased digital revenue to 20% of total company revenue
- Recorded net loss of $10.3 million compared to net income of
$2.7 million in Q3 2023 and Adjusted EBITDA(1) of $24.1 million
compared to $26.9 million in Q3 2023
- Generated $3.9 million of cash from operations
- Reported total debt(2)(3) of $673.0 million, total debt at
maturity(1)(2)(3) of $642.1 million, and net debt less total
unamortized discount(1)(2)(3) of $590.0 million at September 30,
2024, including total debt due in 2026(3) of $23.9 million
Operating Summary (dollars in thousands, except
percentages and per share data):
For the three months
ended September 30, 2024, the Company reported net
revenue of $203.6 million, a decrease of 1.8% from
the three months ended September 30, 2023, net loss
of $10.3 million and Adjusted EBITDA of $24.1
million.
For the nine months
ended September 30, 2024, the Company reported net
revenue of $608.5 million, a decrease of 2.4% from
the nine months ended September 30, 2023, net loss
of $52.2 million and Adjusted EBITDA of $57.7
million.
As Reported |
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
|
% Change |
Net revenue |
$ |
203,598 |
|
|
$ |
207,419 |
|
(1.8)% |
Net (loss) income |
$ |
(10,321) |
|
|
$ |
2,722 |
|
N/A |
Adjusted EBITDA |
$ |
24,051 |
|
|
$ |
26,925 |
|
(10.7)% |
Basic (loss) income per
share |
$ |
(0.61) |
|
|
$ |
0.17 |
|
N/A |
Diluted (loss) income per
share |
$ |
(0.61) |
|
|
$ |
0.16 |
|
N/A |
As Reported |
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
|
% Change |
Net revenue |
$ |
608,500 |
|
|
$ |
623,247 |
|
|
(2.4)% |
Net loss |
$ |
(52,174) |
|
|
$ |
(19,813) |
|
|
(163.3)% |
Adjusted EBITDA |
$ |
57,669 |
|
|
$ |
67,930 |
|
|
(15.1)% |
Basic loss per share |
$ |
(3.10) |
|
|
$ |
(1.13) |
|
|
(174.3)% |
Diluted loss per share |
$ |
(3.10) |
|
|
$ |
(1.13) |
|
|
(174.3)% |
Revenue Detail Summary (dollars in
thousands):
As Reported |
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
|
% Change |
Broadcast radio revenue: |
|
|
|
|
|
Spot |
$ |
96,397 |
|
$ |
105,890 |
|
(9.0)% |
Network |
|
42,564 |
|
|
40,360 |
|
5.5% |
Total broadcast radio
revenue |
|
138,961 |
|
|
146,250 |
|
(5.0)% |
Digital |
|
40,020 |
|
|
37,215 |
|
7.5% |
Other |
|
24,617 |
|
|
23,954 |
|
2.8% |
Net revenue |
$ |
203,598 |
|
$ |
207,419 |
|
(1.8)% |
As Reported |
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
|
% Change |
Broadcast radio revenue: |
|
|
|
|
|
Spot |
$ |
288,776 |
|
$ |
310,668 |
|
(7.0)% |
Network |
|
126,032 |
|
|
130,355 |
|
(3.3)% |
Total broadcast radio
revenue |
|
414,808 |
|
|
441,023 |
|
(5.9)% |
Digital |
|
113,864 |
|
|
106,842 |
|
6.6% |
Other |
|
79,828 |
|
|
75,382 |
|
5.9% |
Net revenue |
$ |
608,500 |
|
$ |
623,247 |
|
(2.4)% |
Balance Sheet Summary (dollars in
thousands):
|
|
September 30, 2024 |
|
December 31, 2023 |
Cash and cash equivalents |
|
$ |
52,154 |
|
$ |
80,660 |
Term Loan due 2026 (3) |
|
$ |
1,203 |
|
$ |
329,510 |
Senior Notes due 2026 (3) |
|
$ |
22,697 |
|
$ |
346,245 |
Term Loan due 2029 (2)
(3) |
|
$ |
327,205 |
|
$ |
— |
Senior Notes due 2029 (2)
(3) |
|
$ |
321,889 |
|
$ |
— |
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
Capital expenditures |
$ |
3,328 |
|
$ |
7,051 |
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
Capital expenditures |
$ |
15,881 |
|
$ |
21,026 |
(1) Adjusted EBITDA, total debt at maturity and
net debt less total unamortized discount are not financial measures
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) The exchange offer was accounted for as a
debt modification resulting in a prospective yield adjustment and
the carrying value was not changed. The $33.1 million difference
between the principal amounts exchanged and the resulting principal
amounts will be amortized to interest expense (thereby reducing
interest expense) over the life of the debt. As of September 30,
2024, $15.4 million and $15.5 million of unamortized difference for
the Term Loan due 2029 and the Senior Notes due 2029, respectively,
remain.
(3) Excludes any debt issuance
costs.Earnings Conference Call DetailsThe Company
will host a conference call today at 8:30 AM ET to discuss its
third quarter 2024 operating results. NetRoadshow (NRS) is the
service provider for this call. They will require email address
verification (one-time only) and will provide registration
confirmation. To participate in the conference call, please
register in advance using the link on the Company's investor
relations website at www.cumulusmedia.com/investors. Upon
completing registration, a calendar invitation will follow with
call access details, including a unique PIN, and replay
details.
To join by phone with operator-assisted dial-in, domestic
callers should dial 833-470-1428 and international callers should
dial 404-975-4839. If prompted, the participant access code is
535839. 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.
Please see an update to the Company’s investor
presentation on the Company's investor relations website at
www.cumulusmedia.com/investors, which may be referenced on the
conference call. Unless otherwise specified, information contained
in the investor presentation or on our website is not incorporated
into this press release or other documents we file with, or furnish
to, the SEC.
Forward-Looking
StatementsCertain 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 and our plans and objectives.
Any such forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and other factors that
may cause actual results, performance or achievements to differ
from those contained in or implied by the forward-looking
statements as a result of various factors. Such factors include,
among others, risks and uncertainties related to the implementation
of our strategic operating plans, the continued uncertain financial
and economic conditions, the rapidly changing and competitive media
industry, and the economy in general. We are subject to additional
risks and uncertainties described in our quarterly and annual
reports filed with the Securities and Exchange Commission from time
to time, including in the "Risk Factors," and "Management’s
Discussion and Analysis of Financial Condition and Results of
Operations" sections contained therein. You should not rely on
forward-looking statements since they involve known and unknown
risks, uncertainties and other factors that are, in some cases,
beyond the Company’s control, and the unexpected occurrence or
failure to occur of any such events or matters could cause our
actual results, performance, financial condition or achievements to
differ materially from those expressed or implied by such
forward-looking statements. 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 MediaCumulus
Media (NASDAQ: CMLS) is an audio-first media 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 400 owned-and-operated
radio stations across 84 markets; delivers nationally-syndicated
sports, news, talk, and entertainment programming from iconic
brands including the NFL, the NCAA, the Masters, Infinity Sports
Network, AP News, the Academy of Country Music Awards, and many
other world-class partners across more than 9,800 affiliated
stations through Westwood One, the largest audio network in
America; and inspires listeners through the Cumulus Podcast
Network, 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.
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 a 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 credit agreements.
In determining Adjusted EBITDA, we exclude the
following from net (loss) income: interest, taxes, depreciation,
amortization, stock-based compensation expense, gain or loss on the
exchange, sale, or disposal of any assets or stations or early
extinguishment of debt, restructuring costs, expenses relating to
acquisitions and divestitures, non-routine legal expenses incurred
in connection with certain litigation matters, and non-cash
impairments of assets, if any.
Management believes that Adjusted EBITDA, with
and excluding impact of political advertising, 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 and comparing the operational
and financial performance among media companies. Management has
also observed that Adjusted EBITDA, with and excluding impact of
political advertising, is 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 these metrics to be extremely useful.
The Company presents revenue, excluding impact
of political revenue. As a result of the cyclical nature of the
electoral system and the seasonality of the related political
revenue, management believes presenting net revenue, excluding
impact of political revenue, provides useful information to
investors about the Company’s revenue growth comparable from period
to period.
The Company presents the non-GAAP financial
measure total debt at maturity which is total debt principal,
gross, less total unamortized debt discount. In addition, the
Company presents the non-GAAP financial measure net debt less total
unamortized discount which is total debt at maturity less cash and
cash equivalents. Management believes that total debt at maturity
and net debt less total unamortized discount are important measures
to monitor leverage and evaluate the balance sheet.
We refer to Adjusted EBITDA, with and excluding
the impact of political advertising, net revenue, excluding the
impact of political revenue, total debt at maturity, and net debt
less total unamortized discount 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 DepartmentIR@cumulus.com404-260-6600
Supplemental Financial Data and
Reconciliations
Cumulus Media
Inc.Unaudited Condensed Consolidated Statements of
Operations(Dollars in thousands)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenue |
|
$ |
203,598 |
|
|
$ |
207,419 |
|
|
$ |
608,500 |
|
|
$ |
623,247 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Content costs |
|
|
76,368 |
|
|
|
76,740 |
|
|
|
235,056 |
|
|
|
238,939 |
|
Selling, general & administrative expenses |
|
|
93,890 |
|
|
|
91,834 |
|
|
|
283,009 |
|
|
|
280,536 |
|
Depreciation and amortization |
|
|
14,721 |
|
|
|
13,950 |
|
|
|
44,270 |
|
|
|
43,780 |
|
Corporate expenses |
|
|
10,430 |
|
|
|
12,243 |
|
|
|
35,182 |
|
|
|
36,740 |
|
Stock-based compensation expense |
|
|
1,049 |
|
|
|
1,471 |
|
|
|
3,457 |
|
|
|
4,089 |
|
Restructuring costs |
|
|
357 |
|
|
|
2,212 |
|
|
|
4,475 |
|
|
|
13,219 |
|
Debt exchange costs |
|
|
98 |
|
|
|
— |
|
|
|
16,369 |
|
|
|
— |
|
Loss (gain) on sale of assets or stations |
|
|
6 |
|
|
|
(8,614) |
|
|
|
60 |
|
|
|
(15,895) |
|
Total operating expenses |
|
|
196,919 |
|
|
|
189,836 |
|
|
|
621,878 |
|
|
|
601,408 |
|
Operating income (loss) |
|
|
6,679 |
|
|
|
17,583 |
|
|
|
(13,378) |
|
|
|
21,839 |
|
Non-operating expense: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(17,043) |
|
|
|
(17,862) |
|
|
|
(52,029) |
|
|
|
(53,468) |
|
Interest income |
|
|
34 |
|
|
|
634 |
|
|
|
526 |
|
|
|
1,715 |
|
Gain on early extinguishment of debt |
|
|
— |
|
|
|
843 |
|
|
|
170 |
|
|
|
9,849 |
|
Other (expense) income, net |
|
|
(32) |
|
|
|
(26) |
|
|
|
14,774 |
|
|
|
(312) |
|
Total non-operating expense, net |
|
|
(17,041) |
|
|
|
(16,411) |
|
|
|
(36,559) |
|
|
|
(42,216) |
|
(Loss) income before income taxes |
|
|
(10,362) |
|
|
|
1,172 |
|
|
|
(49,937) |
|
|
|
(20,377) |
|
Income tax benefit
(expense) |
|
|
41 |
|
|
|
1,550 |
|
|
|
(2,237) |
|
|
|
564 |
|
Net (loss) income |
|
$ |
(10,321) |
|
|
$ |
2,722 |
|
|
$ |
(52,174) |
|
|
$ |
(19,813) |
|
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 September 30, 2024 |
|
Three Months Ended September 30, 2023 |
GAAP net (loss) income |
|
$ |
(10,321) |
|
|
$ |
2,722 |
|
Income tax benefit |
|
|
(41) |
|
|
|
(1,550) |
|
Non-operating expense, including net interest expense |
|
|
17,041 |
|
|
|
17,254 |
|
Depreciation and amortization |
|
|
14,721 |
|
|
|
13,950 |
|
Stock-based compensation expense |
|
|
1,049 |
|
|
|
1,471 |
|
Loss (gain) on sale or disposal of assets or stations |
|
|
6 |
|
|
|
(8,614) |
|
Gain on early extinguishment of debt |
|
|
— |
|
|
|
(843) |
|
Restructuring costs |
|
|
357 |
|
|
|
2,212 |
|
Debt exchange costs |
|
|
98 |
|
|
|
— |
|
Non-routine legal expenses |
|
|
960 |
|
|
|
122 |
|
Franchise taxes |
|
|
181 |
|
|
|
201 |
|
Adjusted EBITDA |
|
$ |
24,051 |
|
|
$ |
26,925 |
|
As Reported |
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
GAAP net loss |
|
$ |
(52,174) |
|
|
$ |
(19,813) |
|
Income tax expense (benefit) |
|
|
2,237 |
|
|
|
(564) |
|
Non-operating expense, including net interest expense |
|
|
36,729 |
|
|
|
52,065 |
|
Depreciation and amortization |
|
|
44,270 |
|
|
|
43,780 |
|
Stock-based compensation expense |
|
|
3,457 |
|
|
|
4,089 |
|
Loss (gain) on sale or disposal of assets or stations |
|
|
60 |
|
|
|
(15,895) |
|
Gain on early extinguishment of debt |
|
|
(170) |
|
|
|
(9,849) |
|
Restructuring costs |
|
|
4,475 |
|
|
|
13,219 |
|
Debt exchange costs |
|
|
16,369 |
|
|
|
— |
|
Non-routine legal expenses |
|
|
1,848 |
|
|
|
298 |
|
Franchise taxes |
|
|
568 |
|
|
|
600 |
|
Adjusted EBITDA |
|
$ |
57,669 |
|
|
$ |
67,930 |
|
The following tables reconcile the as reported net revenue and
as reported Adjusted EBITDA, both including and excluding the
impact of political, for the periods presented herein (dollars in
thousands):
|
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
As reported net revenue |
|
$ |
203,598 |
|
|
$ |
207,419 |
|
Political revenue |
|
|
(4,379) |
|
|
|
(826) |
|
As reported net revenue,
excluding impact of political revenue |
|
$ |
199,219 |
|
|
$ |
206,593 |
|
|
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
As reported Adjusted EBITDA |
|
$ |
24,051 |
|
|
$ |
26,925 |
|
Political EBITDA |
|
|
(3,941) |
|
|
|
(744) |
|
As reported Adjusted EBITDA,
excluding impact of political EBITDA |
|
$ |
20,110 |
|
|
$ |
26,181 |
|
|
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
As reported net revenue |
|
$ |
608,500 |
|
|
$ |
623,247 |
|
Political revenue |
|
|
(8,487) |
|
|
|
(1,733) |
|
As reported net revenue,
excluding impact of political revenue |
|
$ |
600,013 |
|
|
$ |
621,514 |
|
|
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
As reported Adjusted EBITDA |
|
$ |
57,669 |
|
|
$ |
67,930 |
|
Political EBITDA |
|
|
(7,638) |
|
|
|
(1,560) |
|
As reported Adjusted EBITDA,
excluding impact of political EBITDA |
|
$ |
50,031 |
|
|
$ |
66,370 |
|
The following table reconciles total debt principal, gross, the
most directly comparable financial measure calculated and presented
in accordance with GAAP, to total debt at maturity and net debt
less total unamortized discount (dollars in thousands):
|
|
As of September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
Total debt principal,
gross |
|
$ |
672,994 |
|
|
$ |
675,755 |
|
Less: Total unamortized
discount |
|
|
(30,877) |
|
|
|
— |
|
Total debt at maturity |
|
|
642,117 |
|
|
|
675,755 |
|
Less: Cash and cash
equivalents |
|
|
(52,154) |
|
|
|
(82,807) |
|
Net debt less total
unamortized discount |
|
$ |
589,963 |
|
|
$ |
592,948 |
|
Cumulus Media (NASDAQ:CMLS)
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Von Nov 2024 bis Dez 2024
Cumulus Media (NASDAQ:CMLS)
Historical Stock Chart
Von Dez 2023 bis Dez 2024