• Cumulus Reports Operating Results for Fourth Quarter and Full Year 2017

    Source: Nasdaq GlobeNewswire / 28 Mar 2018 22:14:09   Europe/London

    ATLANTA, March 28, 2018 (GLOBE NEWSWIRE) --

    Cumulus Media Inc. (PINK:CMLSQ) (the “Company,” “we,” “us,” or “our”) today announced operating results for the three months and year ended December 31, 2017.  

    For the three months ended December 31, 2017, the Company reported net revenue of $293.9 million, down 1.9% from the three months ended December 31, 2016, net loss of $206.1 million and Adjusted EBITDA of $49.9 million, down 12.3% from the quarter ended December 31, 2016.  For the year ended December 31, 2017, the Company reported net revenue of $1,135.7 million, a decrease of 0.5% from the year ended December 31, 2016, net loss of $206.6 million and Adjusted EBITDA of $217.8 million, up 5.8% from the year ended December 31, 2016. During the fourth quarter of 2017, the Company recorded a noncash impairment charge against FCC licenses of $335.9 million. During the fourth quarter of 2016, the Company recorded noncash impairment charges against FCC licenses and goodwill of $603.1 million.

    On November 29, 2017, the Company and certain of its direct and indirect subsidiaries filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York (the “Chapter 11 Filings”).  The Chapter 11 Filings are being jointly administered under the caption In re Cumulus Media Inc., et al, Case No. 17-13381.

    Mary Berner, President and Chief Executive Officer of Cumulus Media Inc. said, "Our 2017 financial performance is a true testament to our employees’ hard work and commitment to our turnaround plan. Having also made the decision to definitively address our overleveraged balance sheet, we look forward to completing our financial restructuring and continuing our progress in the months ahead."

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

      
     Three Months Ended December 31,
     2017 2016 % Change
    Net revenue$293,861  $299,541  (1.9)%
    Net loss$(206,116) $(543,677) **
    Adjusted EBITDA (1)$49,852  $56,865  (12.3)%
    Basic and diluted loss per share$(7.03) $(18.57)  
      
     Year Ended December 31,
     2017 2016 % Change
    Net revenue$1,135,662  $1,141,400  (0.5)%
    Net loss$(206,565) $(510,720) **
    Adjusted EBITDA (1)$217,751  $205,867  5.8%
    Basic and diluted loss per share$(7.05) $(17.45)  
              

    ** Calculation is not meaningful

           
      December 31, 2017 December 31, 2016 % Change
    Cash and cash equivalents $102,891  $131,259  (21.6)%
           
      Term loan $1,722,209  $1,810,266  (4.9)%
      7.75% Senior Notes 610,000  610,000  %
    Total debt $2,332,209  $2,420,266  (3.6)%
                


      
     Three Months Ended December 31,
     2017 2016 % Change
    Capital expenditures$11,287  $6,333  78.2%
      
     Year Ended December 31,
     2017 2016 % Change
    Capital expenditures$31,932  $23,037  38.6%
               
    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 December 31, 2017

    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 finance and administration, legal, human resources and information technology functions.

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

       
      Three Months Ended December 31, 2017
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Net revenue $201,913  $91,298  $650  $293,861 
    % of total revenue 68.7% 31.2% 0.2% 100.0%
    $ change from three months ended December 31, 2016 $(7,843) $2,195  $(32) $(5,680)
    % change from three months ended December 31, 2016 (3.7)% 2.5% (4.7)% (1.9)%
       
      Three Months Ended December 31, 2016
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Net revenue $209,756  $89,103  $682  $299,541 
    % of total revenue 70.0% 29.7% 0.2% 100.0 
                 

    Net (loss) income

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

       
      Three Months Ended December 31, 2017
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Net (loss) income $(296,452) $1,286  $89,050  $(206,116)
    $ change from three months ended December 31, 2016 $265,007  $(515) $73,069  $337,561 
    % change from three months ended December 31, 2016 ** 28.6% ** **
       
      Three Months Ended December 31, 2016
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Net (loss) income $(561,459) $1,801  $15,981  $(543,677)
                     

    ** Calculation is not meaningful

    Adjusted EBITDA

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

       
      Three Months Ended December 31, 2017
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Adjusted EBITDA $51,019  $8,040  $(9,207) $49,852 
    $ change from three months ended December 31, 2016 $(7,896) $3,054  $(2,171) $(7,013)
    % change from three months ended December 31, 2016 (13.4)% 61.3% (30.9)% (12.3)%
                 
      Three Months Ended December 31, 2016
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Adjusted EBITDA $58,915  $4,986  $(7,036) $56,865 
                     

    ** Calculation is not meaningful

    Results for Year Ended December 31, 2017

    Net Revenue

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

       
      Year Ended December 31, 2017
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Net revenue $786,963  $346,165  $2,534  $1,135,662 
    % of total revenue 69.3% 30.5% 0.2% 100.0%
    $ change from year ended December 31, 2016 $(15,433) $9,555  $140  $(5,738)
    % change from year ended December 31, 2016 (1.9)% 2.8% 5.8% (0.5)%
                 
      Year Ended December 31, 2016
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Net revenue $802,396  $336,610  $2,394  $1,141,400 
    % of total revenue 70.3% 29.5% 0.2% 100.0%
                 

    Net (loss) income

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

      Year Ended December 31, 2017
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Net (loss) income $(178,410) $25,635  $(53,790) $(206,565)
    $ change from year ended December 31, 2016 $177,788  $36,706  $89,661  $304,155 
    % change from year ended December 31, 2016 49.9% 331.6% 62.5% **
                
      Year Ended December 31, 2016
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    Net loss $(356,198) $(11,071) $(143,451) $(510,720)

    ** Calculation is not meaningful

    Adjusted EBITDA

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

        
       Year Ended December 31, 2017
       Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
     Adjusted EBITDA $204,588  $51,034  $(37,871) $217,751 
     $ change from year ended December 31, 2016 $(13,604) $28,050  $(2,562) $11,884 
     % change from year ended December 31, 2016 (6.2)% 122.0% (7.3)% 5.8%
        
      Year Ended December 31, 2016 
      Radio
    Station
    Group
     Westwood One Corporate
    and Other
     Consolidated 
    Adjusted EBITDA $218,192  $22,984  $(35,309) $205,867  
                      

    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, 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, 2017 (the “2017 Form 10-K”) and any previously 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 (PINK:CMLSQ) 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 445 owned-and-operated stations broadcasting in 90 US media markets (including eight of the top 10), approximately 8,000 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 further information, please contact:
    Cumulus Media Inc.
    Collin Jones
    Investor Relations
    collin@cumulus.com
    404-260-6600

     
    CUMULUS MEDIA INC.
    (Debtor-In-Possession)
    Unaudited Condensed Consolidated Statements of Operations
    (Dollars in thousands, except per share data)
     
      Three Months Ended
    December 31,
     Year Ended December 31,
      2017 2016 2017 2016
    Net revenue $293,861  $299,541  $1,135,662  $1,141,400 
    Operating expenses:        
    Content costs 111,588  115,254  402,978  427,780 
    Selling, general & administrative expenses 123,346  120,426  477,535  472,900 
    Depreciation and amortization 14,629  19,244  62,239  87,267 
    LMA fees 2,747  2,473  10,884  12,824 
    Corporate expenses 9,215  6,975  37,956  35,383 
    Stock-based compensation expense 191  565  1,614  2,948 
    Acquisition-related and restructuring costs 17,375  (1,420) 19,492  1,817 
    Loss (gain) on sale of assets or stations 86  1,460  (2,499) (95,695)
    Impairment of intangible assets and goodwill 335,909  603,149  335,909  604,965 
    Total operating expenses 615,086  868,126  1,346,108  1,550,189 
    Operating loss (321,225) (568,585) (210,446) (408,789)
    Non-operating (expense):        
    Reorganization items, net (31,603)   (31,603)  
    Interest expense (23,210) (34,738) (126,952) (138,634)
    Interest income 30  129  136  493 
    Gain (loss) on early extinguishment of debt   8,017  (1,063) 8,017 
    Other (loss) income, net (299) 441  (363) 2,039 
    Total non-operating expense, net (55,082) (26,151) (159,845) (128,085)
    Loss before income taxes (376,307) (594,736) (370,291) (536,874)
    Income tax benefit 170,191  51,059  163,726  26,154 
    Net loss $(206,116) $(543,677) $(206,565) $(510,720)
    Basic and diluted loss per common share:        
    Basic:  Loss per share $(7.03) $(18.57) $(7.05) $(17.45)
    Diluted:  Loss per share $(7.03) $(18.57) $(7.05) $(17.45)
    Weighted average basic common shares outstanding 29,306,374  29,275,111  29,306,374  29,270,455 
    Weighted average diluted common shares outstanding 29,306,374  29,275,111  29,306,374  29,270,455 
                 

    Non-GAAP Financial Measure
    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 performance of the Company as a whole and each of our reportable segments, respectively. 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, Adjusted EBITDA, excluding the impact of LMA fees, is a key metric for purposes of calculating and determining compliance with certain covenants in our Credit Agreement.

    In deriving this measure, the Company excludes from Adjusted EBITDA items not related to core operations and those that are non-cash including: depreciation, amortization, stock-based compensation expense, gain or loss on the exchange or sale of any assets or stations, early extinguishment of debt, local marketing agreement fees, expenses relating to acquisitions, restructuring costs, reorganization items and non-cash impairments of assets.

    Management 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 and comparing the operational and financial performance among media companies. Management 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 Agreement. Given the relevance to our overall value, management believes that investors consider the metric to be extremely useful.

    Adjusted EBITDA should not be considered in isolation or as a substitute for net (loss) income, 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 months and years ended December 31, 2017 and 2016 (dollars in thousands):

       
      Three Months Ended December 31, 2017
      Radio Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    GAAP net (loss) income $(296,452) $1,286  $89,050  $(206,116)
    Income tax benefit     (170,191) (170,191)
    Non-operating (income) expense, including net
    interest expense
     (1) 130  23,350  23,479 
    LMA fees 2,747      2,747 
    Depreciation and amortization 8,730  5,490  409  14,629 
    Stock-based compensation expense     191  191 
    Loss on sale of assets or stations 86      86 
    Reorganization items, net     31,603  31,603 
    Impairment of intangible assets and goodwill 335,909      335,909 
    Acquisition-related and restructuring costs   1,134  16,241  17,375 
    Franchise and state taxes     140  140 
    Adjusted EBITDA $51,019  $8,040  $(9,207) $49,852 


       
      Three Months Ended December 31, 2016
      Radio Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    GAAP net (loss) income $(561,459) $1,801  $15,981  $(543,677)
    Income tax expense     (51,059) (51,059)
    Non-operating (income) expense, including net
    interest expense
       (104) 34,268  34,164 
    LMA fees 2,473      2,473 
    Depreciation and amortization 13,290  5,521  433  19,244 
    Stock-based compensation expense     545  545 
    Loss (gain) on sale of assets or stations 1,462    (2) 1,460 
    Impairment of intangible assets 603,149      603,149 
    Acquisition-related and restructuring costs   (2,232) 812  (1,420)
    Franchise and state taxes     3  3 
    Gain on early extinguishment of debt     (8,017) (8,017)
    Adjusted EBITDA $58,915  $4,986  $(7,036) $56,865 
                     


      Year Ended December 31, 2017
      Radio Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    GAAP net (loss) income $(178,410) $25,635  $(53,790) $(206,565)
    Income tax benefit     (163,726) (163,726)
    Non-operating expense (income), including net
    interest (income) expense
     (6) 537  126,648  127,179 
    LMA fees 10,884      10,884 
    Depreciation and amortization 38,734  21,836  1,669  62,239 
    Stock-based compensation expense     1,614  1,614 
    (Gain) loss on sale of assets or stations (2,523)   24  (2,499)
    Reorganization items, net     31,603  31,603 
    Impairment of intangible assets and goodwill 335,909      335,909 
    Acquisition-related and restructuring costs   3,026  16,466  19,492 
    Franchise and state taxes     558  558 
    Loss on early extinguishment of debt     1,063  1,063 
    Adjusted EBITDA $204,588  $51,034  $(37,871) $217,751 
                     


      Year Ended December 31, 2016
      Radio Station
    Group
     Westwood One Corporate
    and Other
     Consolidated
    GAAP net loss $(356,198) $(11,071) $(143,451) $(510,720)
    Income tax benefit     (26,154) (26,154)
    Non-operating expense, including net interest
    expense
     13  122  135,967  136,102 
    LMA fees 12,824      12,824 
    Depreciation and amortization 54,071  31,178  2,018  87,267 
    Stock-based compensation expense     2,948  2,948 
    Gain on sale of assets or stations (95,667)   (28) (95,695)
    Impairment of intangible assets and goodwill 603,149  1,816    604,965 
    Acquisition-related and restructuring costs   939  878  1,817 
    Franchise and state taxes     530  530 
    Gain on early extinguishment of debt     (8,017) (8,017)
    Adjusted EBITDA $218,192  $22,984  $(35,309) $205,867 

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