For the three months ended
Preliminary Operating Results (in thousands, except percentages):
As Reported | Three Months Ended | Three Months Ended | % Change | |||||
Net revenue | $ | 205,692 | (3.3)% - (2.3)% | |||||
Net loss(2) | ) | $ | (21,467 | ) | (30.5)% - (37.5)% | |||
Adjusted EBITDA | $ | 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
(2) The three months ended
Earnings Conference Call Details
The Company will host a conference call on
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 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 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
Not an Offer of any Security
This 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
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:
Investor Relations Department
IR@cumulus.com
404-260-6600
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 | Three Months Ended | |||||
GAAP net loss | ) | $ | (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 | $ | 10,329 |
Source:
2024 GlobeNewswire, Inc., source