Cumulus Media Inc. (NASDAQ: CMLS) (the "Company," "Cumulus Media,"
"we," "us," or "our") today announced selected preliminary
operating results for the three months ended March 31, 2024.
For the three months ended March 31, 2024, the
Company expects to report net revenue in a range of $199.0 million
to $201.0 million, net loss in a range of $(14.9) million to
$(13.4) million, and Adjusted EBITDA(1) in a range of $7.65 million
to $9.15 million. The Company will issue a press release reporting
its first quarter 2024 operating results at approximately 8:00 AM
EDT on Friday, May 3rd and will host a conference call to discuss
these results at 8:30 AM EDT that day. Conference call details can
be found later in this press release.
Preliminary Operating Results (in
thousands, except percentages):
As Reported |
Three Months EndedMarch 31, 2024 |
|
|
Three Months EndedMarch 31, 2023 |
|
% Change |
Net revenue |
$ 199,000 - $ 201,000 |
|
|
$ |
205,692 |
|
|
(3.3)% - (2.3)% |
Net loss(2) |
$ (14,909) - $ (13,409 |
) |
|
$ |
(21,467 |
) |
|
(30.5)% - (37.5)% |
Adjusted EBITDA |
$ 7,650 - $ 9,150 |
|
|
$ |
10,329 |
|
|
(25.9)% - (11.4)% |
|
|
|
|
|
|
|
|
|
The preliminary operating results set forth above are based
solely on currently available information, which is subject to
change. Readers are cautioned not to place undue reliance on such
preliminary operating results, which constitute
forward-looking statements.
(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.”
(2) The three months ended March 31, 2024 was
positively impacted by a $14.8 million non-operating gain from the
February 2024 sale of Broadcast Music Inc. to a shareholder group
led by New Mountain Capital, LLC. The three months ended March 31,
2023 was positively impacted by the $7.1 million gain on the sale
of WFAS-FM in February 2023.
Earnings Conference Call
DetailsThe Company will host a conference call on May 3rd
at 8:30 AM EDT to discuss its first 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 587250. Please call five to ten minutes in advance to ensure
that you are connected prior to the call.
The conference call will also be broadcast live
in listen-only mode through a link on the Company’s investor
relations website at www.cumulusmedia.com/investors. This link can
also be used to access a recording of the call, which will be
available shortly following its completion.
Forward-Looking
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,
including with regard to returning capital to shareholders. 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, our ability to complete the exchange
offers, the amount and frequency of our shareholder capital
returns, 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.
Not an Offer of any
SecurityThis release is for information purposes only and
is not an offer to sell, or a solicitation of an offer to buy or
sell, any security, and may not be relied upon in connection with
the purchase or sale of any such security.
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 401 owned-and-operated
radio stations across 85 markets; delivers nationally-syndicated
sports, news, talk, and entertainment programming from iconic
brands including the NFL, the NCAA, the Masters, CNN, 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. Cumulus Media is
the only audio media company to provide marketers with local and
national advertising performance guarantees. For more information
visit www.cumulusmedia.com.
Non-GAAP Financial Measure
We utilize a certain financial measure that is
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" or "EBITDA") is the financial metric by which
management and the chief operating decision maker allocate
resources of the Company and analyze the performance of the Company
as a whole. Management also uses this measure to determine the
contribution of our core operations to the funding of our corporate
resources utilized to manage our operations and the funding of our
non-operating expenses including debt service and acquisitions. In
addition, consolidated Adjusted EBITDA is a key metric for purposes
of calculating and determining our compliance with certain
covenants contained in our Refinanced Credit Agreement.
In determining Adjusted EBITDA, we exclude the
following from net loss: 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,
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 for comparing
the operational and financial performance among media companies.
Management has also observed that Adjusted EBITDA 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 this metric to be
extremely useful.
We refer to Adjusted EBITDA as the "Non-GAAP
Financial Measure." The Non-GAAP Financial Measure should not be
considered in isolation or as a substitute for net loss, net
revenue, operating (loss) 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, the Non-GAAP Financial Measure 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
The following table reconciles net loss, 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 March 31, 2024 |
|
|
Three Months EndedMarch 31, 2023 |
GAAP net loss |
|
$ (14,909) - $ (13,409 |
) |
|
$ |
(21,467 |
) |
Income tax expense |
|
1,499 |
|
|
|
5,804 |
|
Non-operating expense, including net interest expense |
|
2,181 |
|
|
|
17,315 |
|
Depreciation and amortization |
|
14,869 |
|
|
|
14,684 |
|
Stock-based compensation expense |
|
1,072 |
|
|
|
1,126 |
|
Loss (gain) on sale or disposal of assets or stations |
|
9 |
|
|
|
(7,009 |
) |
Gain on early extinguishment of debt |
|
— |
|
|
|
(617 |
) |
Restructuring costs |
|
2,130 |
|
|
|
291 |
|
Non-routine legal expenses |
|
608 |
|
|
|
3 |
|
Franchise taxes |
|
191 |
|
|
|
199 |
|
Adjusted EBITDA |
|
$ 7,650 - $ 9,150 |
|
|
$ |
10,329 |
|
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