Cumulus Media Inc. (NASDAQ:CMLS) (the “Company,” “we,” “us,” or
“our”) today announced operating results for the three and six
months ended June 30, 2016.
For the three months ended June 30, 2016, the Company
reported net revenue of $287.2 million, down 4.1% from the three
months ended June 30, 2015, net income of $1.1 million,
down 91.3% from the three months ended June 30, 2015, and
Adjusted EBITDA of $63.2 million, down 21.8% from the quarter ended
June 30, 2015. For the six months ended June 30,
2016, the Company reported net revenue of $555.7 million, down 2.6%
from the six months ended June 30, 2015, a net loss of $13.4
million and Adjusted EBITDA of $105.1 million, down 16.2% from the
six months ended June 30, 2015.
Mary Berner, President and Chief Executive Officer of Cumulus
Media Inc. said, “The second quarter results underscore the
substantial challenges that we must overcome. However, our
operating strategy is gaining measurable traction with significant
ratings growth, improved employee engagement, reduced turnover and
enhanced operational effectiveness. These are all critical first
steps in the execution of our multi-year turnaround plan.”
Operating Summary (in thousands, except percentages and
per share data):
|
Three Months Ended June 30, |
|
|
2016 |
|
|
|
2015 |
|
|
% Change |
Net revenue |
$ |
|
287,193 |
|
|
$ |
|
299,334 |
|
|
(4.1 |
)% |
Net income |
$ |
|
1,066 |
|
|
$ |
|
12,299 |
|
|
(91.3 |
)% |
Adjusted EBITDA (1) |
$ |
|
63,180 |
|
|
$ |
|
80,815 |
|
|
(21.8 |
)% |
Basic and diluted income
per share |
$ |
|
0.00 |
|
|
|
$ |
|
0.05 |
|
|
|
|
|
Six Months Ended June 30, |
|
|
2016 |
|
|
|
2015 |
|
|
% Change |
Net revenue |
$ |
|
555,723 |
|
|
$ |
|
570,413 |
|
|
(2.6 |
)% |
Net (loss) income |
$ |
|
(13,363 |
) |
|
$ |
|
284 |
|
|
** |
Adjusted EBITDA (1) |
$ |
|
105,114 |
|
|
$ |
|
125,478 |
|
|
(16.2 |
)% |
Basic and diluted loss per
share |
$ |
|
(0.06 |
|
) |
|
$ |
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Calculation is not meaningful
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
December 31, 2015 |
|
% Change |
Cash and cash
equivalents |
|
$ |
49,798 |
|
|
$ |
31,657 |
|
|
57.3 |
% |
|
|
|
|
|
|
|
|
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 June 30, |
|
2016 |
|
2015 |
|
% Change |
Capital expenditures |
$ |
7,301 |
|
|
$ |
4,765 |
|
|
53.2 |
% |
|
Six Months Ended June 30, |
|
2016 |
|
2015 |
|
% Change |
Capital expenditures |
$ |
11,462 |
|
|
$ |
14,860 |
|
|
(22.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
(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”.
Segment Results for Three Months Ended June 30,
2016
Net Revenue
The Company operates two reportable segments, the Radio Station
Group and Westwood One. 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 includes support for each of the Company’s reportable
segments, including information technology, human resources, legal,
finance and administrative functions, as well as overall executive,
administrative and support functions.
The following tables present our net revenue by segment (dollars
in thousands).
|
|
Three Months Ended June 30, 2016 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net revenue |
|
$ |
209,964 |
|
|
$ |
76,530 |
|
|
$ |
699 |
|
|
$ |
287,193 |
|
% of total revenue |
|
73.1 |
% |
|
26.7 |
% |
|
0.2 |
% |
|
100.0 |
% |
$ change from three months
ended June 30, 2015 |
|
$ |
466 |
|
|
$ |
(12,237 |
) |
|
$ |
(370 |
) |
|
$ |
(12,141 |
) |
% change from three months
ended June 30, 2015 |
|
0.2 |
% |
|
(13.8 |
)% |
|
(34.6 |
)% |
|
(4.1 |
)% |
|
|
Three Months Ended June 30, 2015 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net revenue |
|
$ |
209,498 |
|
|
$ |
88,767 |
|
|
$ |
1,069 |
|
|
$ |
299,334 |
|
% of total revenue |
|
70.0 |
% |
|
29.6 |
% |
|
0.4 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
The following tables present our net income (loss) by segment
(dollars in thousands).
|
|
Three Months Ended June 30, 2016 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net income (loss) |
|
$ |
46,405 |
|
|
$ |
887 |
|
|
$ |
(46,226 |
) |
|
$ |
1,066 |
|
$ change from three months
ended June 30, 2015 |
|
$ |
(6,162 |
) |
|
$ |
(6,681 |
) |
|
$ |
1,610 |
|
|
$ |
(11,233 |
) |
% change from three months
ended June 30, 2015 |
|
(11.7 |
)% |
|
(88.3 |
)% |
|
3.4 |
% |
|
(91.3 |
)% |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
The following tables present our Adjusted EBITDA by segment
(dollars in thousands).
|
|
Three Months Ended June 30, 2016 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Adjusted EBITDA |
|
$ |
59,321 |
|
|
$ |
12,928 |
|
|
$ |
(9,069 |
) |
|
$ |
63,180 |
|
$ change from three months
ended June 30, 2015 |
|
$ |
(11,712 |
) |
|
$ |
(5,584 |
) |
|
$ |
(339 |
) |
|
$ |
(17,635 |
) |
% change from three months
ended June 30, 2015 |
|
(16.5 |
)% |
|
(30.2 |
)% |
|
(3.9 |
)% |
|
(21.8 |
)% |
|
|
Three Months Ended June 30, 2015 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Adjusted EBITDA |
|
$ |
71,033 |
|
|
$ |
18,512 |
|
|
$ |
(8,730 |
) |
|
$ |
80,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Results for Six Months Ended June 30,
2016
Net Revenue
The following tables present our net revenue by segment (dollars
in thousands).
|
|
Six Months Ended June 30, 2016 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net revenue |
|
$ |
386,441 |
|
|
$ |
168,094 |
|
|
$ |
1,188 |
|
|
$ |
555,723 |
|
% of total revenue |
|
69.5 |
% |
|
30.2 |
% |
|
0.3 |
% |
|
100.0 |
% |
$ change from six months
ended June 30, 2015 |
|
$ |
1,275 |
|
|
$ |
(15,222 |
) |
|
$ |
(743 |
) |
|
$ |
(14,690 |
) |
% change from six months
ended June 30, 2015 |
|
0.3 |
% |
|
(8.3 |
)% |
|
(38.5 |
)% |
|
(2.6 |
)% |
|
|
Six Months Ended June 30, 2015 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net revenue |
|
$ |
385,166 |
|
|
$ |
183,316 |
|
|
$ |
1,931 |
|
|
$ |
570,413 |
|
% of total revenue |
|
67.5 |
% |
|
32.2 |
% |
|
0.3 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
The following tables present our net income (loss) by segment
(dollars in thousands).
|
|
Six Months Ended June 30, 2016 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net income (loss) |
|
$ |
71,144 |
|
|
$ |
(1,998 |
) |
|
$ |
(82,509 |
) |
|
$ |
(13,363 |
) |
$ change from six months
ended June 30, 2015 |
|
$ |
(7,956 |
) |
|
$ |
(8,358 |
) |
|
$ |
2,667 |
|
|
$ |
(13,647 |
) |
% change from six months
ended June 30, 2015 |
|
(10.1 |
)% |
|
(131.4 |
)% |
|
(3.1 |
)% |
|
(4,805.3 |
)% |
|
|
Six Months Ended June 30, 2015 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net income (loss) |
|
$ |
79,100 |
|
|
$ |
6,360 |
|
|
$ |
(85,176 |
) |
|
$ |
284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
The following tables present our Adjusted EBITDA by segment
(dollars in thousands).
|
|
Six Months Ended June 30, 2016 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Adjusted EBITDA |
|
$ |
103,041 |
|
|
$ |
20,687 |
|
|
$ |
(18,614 |
) |
|
$ |
105,114 |
|
$ change from six months
ended June 30, 2015 |
|
$ |
(13,408 |
) |
|
$ |
(6,249 |
) |
|
$ |
(707 |
) |
|
$ |
(20,364 |
) |
% change from six months
ended June 30, 2015 |
|
(11.5 |
)% |
|
(23.2 |
)% |
|
3.9 |
% |
|
(16.2 |
)% |
|
|
Six Months Ended June 30, 2015 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Adjusted EBITDA |
|
$ |
116,449 |
|
|
$ |
26,936 |
|
|
$ |
(17,907 |
) |
|
$ |
125,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Call InformationCumulus Media Inc.
will host a teleconference today at 4:30 PM eastern time to discuss
its second 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
57711868. 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, September 4, 2016. Domestic callers can
access the replay by dialing 866-247-4222, replay code 57711868.
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 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 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 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 MediaA 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 452
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 June 30, |
|
Six Months Ended June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Net revenue |
|
$ |
287,193 |
|
|
$ |
299,334 |
|
|
$ |
555,723 |
|
|
$ |
570,413 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Content
costs |
|
97,133 |
|
|
91,019 |
|
|
197,178 |
|
|
191,826 |
|
Selling,
general & administrative expenses |
|
117,860 |
|
|
118,548 |
|
|
235,087 |
|
|
234,855 |
|
Depreciation
and amortization |
|
22,969 |
|
|
25,724 |
|
|
46,066 |
|
|
51,035 |
|
LMA
fees |
|
2,482 |
|
|
2,572 |
|
|
7,870 |
|
|
5,070 |
|
Corporate
expenses |
|
9,203 |
|
|
9,219 |
|
|
18,713 |
|
|
18,823 |
|
Stock-based
compensation expense |
|
790 |
|
|
3,880 |
|
|
1,668 |
|
|
7,743 |
|
Acquisition-related and restructuring costs |
|
1,421 |
|
|
(603 |
) |
|
3,687 |
|
|
(603 |
) |
(Gain) loss
on sale of assets or stations |
|
(3,146 |
) |
|
(84 |
) |
|
(3,141 |
) |
|
735 |
|
Impairment
of intangible assets and goodwill |
|
1,816 |
|
|
— |
|
|
1,816 |
|
|
— |
|
Impairment
charges - equity interest in Pulser Media Inc. |
|
— |
|
|
1,056 |
|
|
— |
|
|
1,056 |
|
Total
operating expenses |
|
250,528 |
|
|
251,331 |
|
|
508,944 |
|
|
510,540 |
|
Operating
income |
|
36,665 |
|
|
48,003 |
|
|
46,779 |
|
|
59,873 |
|
Non-operating (expense)
income: |
|
|
|
|
|
|
|
|
Interest
expense |
|
(34,486 |
) |
|
(35,412 |
) |
|
(68,967 |
) |
|
(70,396 |
) |
Interest
income |
|
140 |
|
|
27 |
|
|
225 |
|
|
385 |
|
Other
(expense) income, net |
|
(4 |
) |
|
12,373 |
|
|
716 |
|
|
12,757 |
|
Total
non-operating expense, net |
|
(34,350 |
) |
|
(23,012 |
) |
|
(68,026 |
) |
|
(57,254 |
) |
Income
(loss) before income taxes |
|
2,315 |
|
|
24,991 |
|
|
(21,247 |
) |
|
2,619 |
|
Income tax (expense)
benefit |
|
(1,249 |
) |
|
(12,692 |
) |
|
7,884 |
|
|
(2,335 |
) |
Net income (loss) |
|
$ |
1,066 |
|
|
$ |
12,299 |
|
|
$ |
(13,363 |
) |
|
$ |
284 |
|
Basic and diluted
income (loss) per common share: |
|
|
|
|
|
|
|
|
Basic: Income (loss)
per share |
|
$ |
0.00 |
|
|
$ |
0.05 |
|
|
$ |
(0.06 |
) |
|
$ |
0.00 |
|
Diluted: Income
(loss) per share |
|
$ |
0.00 |
|
|
$ |
0.05 |
|
|
$ |
(0.06 |
) |
|
$ |
0.00 |
|
Weighted average basic
common shares outstanding |
|
234,329,021 |
|
|
233,278,660 |
|
|
234,190,188 |
|
|
233,202,282 |
|
Weighted average
diluted common shares outstanding |
|
234,692,018 |
|
|
233,486,283 |
|
|
234,190,188 |
|
|
233,452,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 before the incurrence of
corporate 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. In addition,
Adjusted EBITDA is a key metric for purposes of calculating and
determining our compliance with certain covenants contained in our
credit facility.
We define Adjusted EBITDA as net income (loss) before any
non-operating expenses, including depreciation and amortization,
stock-based compensation expense, gain or loss on sale of assets or
stations (if any), gain or loss on derivative instruments (if any),
impairment of assets (if any), acquisition-related and
restructuring costs (if any) and franchise and state taxes.
In deriving this measure, management excludes depreciation,
amortization, and stock-based compensation expense, as these do not
represent cash payments for activities directly related to our core
operations. Management excludes any gain or loss on the exchange or
sale of any assets or stations 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. Management excludes any non-cash costs associated with
impairment of assets as they do not require a cash outlay.
Management believes that Adjusted EBITDA, although not a measure
that is calculated in accordance with GAAP, nevertheless is
commonly employed by the investment community as a measure for
determining the market value of 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
facility. 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 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 and six
months ended June 30, 2016 and 2015 (dollars in
thousands):
|
|
Three Months Ended June 30, 2016 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net income (loss) |
|
$ |
46,405 |
|
|
$ |
887 |
|
|
$ |
(46,226 |
) |
|
$ |
1,066 |
|
Income tax
expense |
|
— |
|
|
— |
|
|
1,249 |
|
|
1,249 |
|
Non-operating expense, including net interest expense |
|
17 |
|
|
63 |
|
|
34,270 |
|
|
34,350 |
|
LMA
fees |
|
2,482 |
|
|
— |
|
|
— |
|
|
2,482 |
|
Depreciation
and amortization |
|
13,538 |
|
|
8,894 |
|
|
537 |
|
|
22,969 |
|
Stock-based
compensation expense |
|
— |
|
|
— |
|
|
790 |
|
|
790 |
|
Gain on sale
of assets or stations |
|
(3,121 |
) |
|
— |
|
|
(25 |
) |
|
(3,146 |
) |
Impairment
of intangible assets |
|
— |
|
|
1,816 |
|
|
— |
|
|
1,816 |
|
Acquisition-related and restructuring costs |
|
— |
|
|
1,268 |
|
|
153 |
|
|
1,421 |
|
Franchise
and state taxes |
|
— |
|
|
— |
|
|
183 |
|
|
183 |
|
Adjusted EBITDA |
|
$ |
59,321 |
|
|
$ |
12,928 |
|
|
$ |
(9,069 |
) |
|
$ |
63,180 |
|
|
|
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 (income) expense, including net interest expense |
|
(1 |
) |
|
320 |
|
|
22,692 |
|
|
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 |
|
$ |
71,033 |
|
|
$ |
18,512 |
|
|
$ |
(8,730 |
) |
|
$ |
80,815 |
|
|
|
Six Months Ended June 30, 2016 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net income (loss) |
|
$ |
71,144 |
|
|
$ |
(1,998 |
) |
|
$ |
(82,509 |
) |
|
$ |
(13,363 |
) |
Income tax
benefit |
|
— |
|
|
— |
|
|
(7,884 |
) |
|
(7,884 |
) |
Non-operating expense, including net interest expense |
|
16 |
|
|
166 |
|
|
67,844 |
|
|
68,026 |
|
LMA
fees |
|
7,870 |
|
|
— |
|
|
— |
|
|
7,870 |
|
Depreciation
and amortization |
|
27,127 |
|
|
17,876 |
|
|
1,063 |
|
|
46,066 |
|
Stock-based
compensation expense |
|
— |
|
|
— |
|
|
1,668 |
|
|
1,668 |
|
Gain on sale
of assets or stations |
|
(3,116 |
) |
|
— |
|
|
(25 |
) |
|
(3,141 |
) |
Impairment
of intangible assets |
|
— |
|
|
1,816 |
|
|
— |
|
|
1,816 |
|
Acquisition-related and restructuring costs |
|
— |
|
|
2,827 |
|
|
860 |
|
|
3,687 |
|
Franchise
and state taxes |
|
— |
|
|
— |
|
|
369 |
|
|
369 |
|
Adjusted EBITDA |
|
$ |
103,041 |
|
|
$ |
20,687 |
|
|
$ |
(18,614 |
) |
|
$ |
105,114 |
|
|
|
Six Months Ended June 30, 2015 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net income (loss) |
|
$ |
79,100 |
|
|
$ |
6,360 |
|
|
$ |
(85,176 |
) |
|
$ |
284 |
|
Income tax
(benefit) expense |
|
(2 |
) |
|
— |
|
|
2,337 |
|
|
2,335 |
|
Non-operating (income) expense, including net interest expense |
|
(1 |
) |
|
640 |
|
|
56,620 |
|
|
57,259 |
|
LMA
fees |
|
5,070 |
|
|
— |
|
|
— |
|
|
5,070 |
|
Depreciation
and amortization |
|
31,547 |
|
|
18,470 |
|
|
1,018 |
|
|
51,035 |
|
Stock-based
compensation expense |
|
— |
|
|
— |
|
|
7,743 |
|
|
7,743 |
|
Loss on sale
of assets or stations |
|
735 |
|
|
— |
|
|
— |
|
|
735 |
|
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 |
|
— |
|
|
— |
|
|
564 |
|
|
564 |
|
Adjusted EBITDA |
|
$ |
116,449 |
|
|
$ |
26,936 |
|
|
$ |
(17,907 |
) |
|
$ |
125,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, September 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 |
|
Gain 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 September 30,
2015 |
|
|
Radio Station Group |
|
Westwood One |
|
Corporate and Other |
|
Consolidated |
Net loss |
|
$ |
(388,139 |
) |
|
$ |
(145,345 |
) |
|
$ |
(8,695 |
) |
|
$ |
(542,179 |
) |
Income tax
benefit |
|
— |
|
|
— |
|
|
(60,855 |
) |
|
(60,855 |
) |
Non-operating expense (income), including net interest expense |
|
(2 |
) |
|
314 |
|
|
35,508 |
|
|
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 |
|
414,500 |
|
|
150,980 |
|
|
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 |
|
|
|
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