2023 Key Highlights:
- Posted total net revenue of
$844.5 million , a decline of 11.4% year-over-year, or 10.0% on an ex-political basis
- Generated digital revenue of
$146.4 million , an increase of 2.9% year-over-year – representing 17% of total revenue- Increased streaming revenue by 16% driven by audience growth from NFL streaming
- Grew local digital marketing services 13% driven by the addition of new products and investment in our digital sales capabilities
- Recorded net loss of
$117.9 million compared to net income of$16.2 million in 2022 reflecting a 2023 pre-tax non-cash impairment charge of$65.3 million compared to a pre-tax non-cash impairment of$15.5 million in 2022, both primarily all reflecting FCC related charges
- Recorded Adjusted EBITDA(1) of
$90.7 million compared to$166.0 million in 2022
- Generated cash to support debt paydown and share buybacks
- Generated cash flow from operations of
$31.7 million and completed accretive non-core asset sales of$17.8 million - Retired
$43.6 million face value of debt at an average price of 77.4% of par, bringing total debt retired to$130.2 million , or 16.2% of total debt since the beginning of 2022 - Repurchased
$7.2 million of shares, bringing shares repurchased to$39.0 million , or 22.5% percent of shares outstanding since the beginning of 2022
- Generated cash flow from operations of
- Reported total debt of
$675.8 million atDecember 31, 2023 , and net debt(1) of$595.1 million - Received
$14.8 million in cash proceeds from the closing of the previously announced sale ofBroadcast Music, Inc.
Debt Exchange Offering
The Company is separately announcing an exchange offer for
Operating Summary (dollars in thousands, except percentages and per share data):
For the three months ended December 31, 2023, the Company reported net revenue of $221.3 million, a decrease of 11.9% from the three months ended December 31, 2022, net loss of $98.1 million and Adjusted EBITDA of $22.8 million.
For the year ended December 31, 2023, the Company reported net revenue of $844.5 million, a decrease of 11.4% from the year ended December 31, 2022, net loss of $117.9 million and Adjusted EBITDA of $90.7 million.
As Reported | Three Months Ended | Three Months Ended | % Change | |||||||
Net revenue | $ | 221,301 | $ | 251,270 | (11.9 | )% | ||||
Net loss | $ | (98,066 | ) | $ | (54 | ) | 181,503.7 | % | ||
Adjusted EBITDA | $ | 22,798 | $ | 42,717 | (46.6 | )% | ||||
Basic loss per share | $ | (5.94 | ) | $ | (0.00 | ) | N/A | |||
Diluted loss per share | $ | (5.94 | ) | $ | (0.00 | ) | N/A |
As Reported | Year Ended | Year Ended | % Change | |||||||
Net revenue | $ | 844,548 | $ | 953,506 | (11.4 | )% | ||||
Net (loss) income | $ | (117,879 | ) | $ | 16,235 | N/A | ||||
Adjusted EBITDA | $ | 90,728 | $ | 165,982 | (45.3 | )% | ||||
Basic (loss) income per share | $ | (6.83 | ) | $ | 0.83 | N/A | ||||
Diluted (loss) income per share | $ | (6.83 | ) | $ | 0.81 | N/A |
Revenue Detail Summary (dollars in thousands):
As Reported | Three Months Ended | Three Months Ended | % Change | |||||||
Broadcast radio revenue: | ||||||||||
Spot | $ | 101,379 | $ | 124,099 | (18.3 | )% | ||||
Network | 52,148 | 63,525 | (17.9 | )% | ||||||
Total broadcast radio revenue | 153,527 | 187,624 | (18.2 | )% | ||||||
Digital | 39,583 | 37,708 | 5.0 | % | ||||||
Other | 28,191 | 25,938 | 8.7 | % | ||||||
Net revenue | $ | 221,301 | $ | 251,270 | (11.9 | )% |
As Reported | Year Ended | Year Ended | % Change | |||||||
Broadcast radio revenue: | ||||||||||
Spot | $ | 412,047 | $ | 479,834 | (14.1 | )% | ||||
Network | 182,503 | 229,772 | (20.6 | )% | ||||||
Total broadcast radio revenue | 594,550 | 709,606 | (16.2 | )% | ||||||
Digital | 146,425 | 142,312 | 2.9 | % | ||||||
Other | 103,573 | 101,588 | 2.0 | % | ||||||
Net revenue | $ | 844,548 | $ | 953,506 | (11.4 | )% |
Balance Sheet Summary (dollars in thousands):
Cash and cash equivalents | $ | 80,660 | $ | 107,433 | ||||
Term loan due 2026 (2) | $ | 329,510 | $ | 338,452 | ||||
6.75% Senior notes (2) | $ | 346,245 | $ | 380,927 |
Year Ended | Year Ended | ||||||
Capital expenditures | $ | 24,814 | $ | 31,062 |
Three Months Ended | Three Months Ended | ||||||
Capital expenditures | $ | 3,788 | $ | 12,502 |
(1) Adjusted EBITDA and net debt are not financial measures calculated or presented in accordance with accounting principles generally accepted in
(2) Excludes unamortized debt issuance costs.
Earnings Conference Call Details
The Company will host a conference call today at
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 214014. 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
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 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" 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) 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 for 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 net debt which is total debt principal, gross, less cash and cash equivalents. Management believes that net debt is an important measure to monitor leverage and evaluate the balance sheet.
We refer to Adjusted EBITDA, with and excluding the impact of political advertising, net revenue, excluding impact of political revenue, and net debt 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:
Investor Relations Department
IR@cumulus.com
404-260-6600
Supplemental Financial Data and Reconciliations
Unaudited Condensed Consolidated Statements of Operations (Dollars in thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net revenue | $ | 221,301 | $ | 251,270 | $ | 844,548 | $ | 953,506 | ||||||||
Operating expenses: | ||||||||||||||||
Content costs | 92,420 | 99,685 | 331,359 | 357,478 | ||||||||||||
Selling, general & administrative expenses | 96,496 | 98,048 | 377,032 | 383,375 | ||||||||||||
Depreciation and amortization | 14,396 | 14,983 | 58,176 | 56,386 | ||||||||||||
Corporate expenses | 10,317 | 11,073 | 47,057 | 48,024 | ||||||||||||
Stock-based compensation expense | 1,181 | 1,517 | 5,270 | 6,229 | ||||||||||||
Restructuring costs | 4,465 | 1,399 | 17,684 | 8,218 | ||||||||||||
Gain on sale of assets or stations | (169 | ) | (452 | ) | (16,064 | ) | (1,537 | ) | ||||||||
Impairment of intangible assets | 65,312 | 15,544 | 65,312 | 15,544 | ||||||||||||
Total operating expenses | 284,418 | 241,797 | 885,826 | 873,717 | ||||||||||||
Operating (loss) income | (63,117 | ) | 9,473 | (41,278 | ) | 79,789 | ||||||||||
Non-operating expense: | ||||||||||||||||
Interest expense | (17,801 | ) | (17,402 | ) | (71,269 | ) | (64,890 | ) | ||||||||
Interest income | 644 | 337 | 2,359 | 340 | ||||||||||||
Gain on early extinguishment of debt | — | 2,620 | 9,849 | 4,496 | ||||||||||||
Other expense, net | (45 | ) | (43 | ) | (357 | ) | (130 | ) | ||||||||
Total non-operating expense, net | (17,202 | ) | (14,488 | ) | (59,418 | ) | (60,184 | ) | ||||||||
(Loss) income before income taxes | (80,319 | ) | (5,015 | ) | (100,696 | ) | 19,605 | |||||||||
Income tax (expense) benefit | (17,747 | ) | 4,961 | (17,183 | ) | (3,370 | ) | |||||||||
Net (loss) income | $ | (98,066 | ) | $ | (54 | ) | $ | (117,879 | ) | $ | 16,235 |
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 | Three Months Ended | ||||||
GAAP net loss | $ | (98,066 | ) | $ | (54 | ) | ||
Income tax expense (benefit) | 17,747 | (4,961 | ) | |||||
Non-operating expense, including net interest expense | 17,202 | 17,108 | ||||||
Depreciation and amortization | 14,396 | 14,983 | ||||||
Stock-based compensation expense | 1,181 | 1,517 | ||||||
Gain on sale or disposal of assets or stations | (169 | ) | (452 | ) | ||||
Impairment of intangible assets | 65,312 | 15,544 | ||||||
Restructuring costs | 4,465 | 1,399 | ||||||
Non-routine legal expenses | 600 | 21 | ||||||
Gain on early extinguishment of debt | — | (2,620 | ) | |||||
Franchise taxes | 130 | 232 | ||||||
Adjusted EBITDA | $ | 22,798 | $ | 42,717 |
As Reported | Year Ended | Year Ended | ||||||
GAAP net (loss) income | $ | (117,879 | ) | $ | 16,235 | |||
Income tax expense | 17,183 | 3,370 | ||||||
Non-operating expense, including net interest expense | 69,267 | 64,680 | ||||||
Depreciation and amortization | 58,176 | 56,386 | ||||||
Stock-based compensation expense | 5,270 | 6,229 | ||||||
Gain on sale or disposal of assets or stations | (16,064 | ) | (1,537 | ) | ||||
Impairment of intangible assets | 65,312 | 15,544 | ||||||
Restructuring costs | 17,684 | 8,218 | ||||||
Non-routine legal expenses | 898 | 544 | ||||||
Gain on early extinguishment of debt | (9,849 | ) | (4,496 | ) | ||||
Franchise taxes | 730 | 809 | ||||||
Adjusted EBITDA | $ | 90,728 | $ | 165,982 |
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 | Three Months Ended | |||||||
As reported net revenue | $ | 221,301 | $ | 251,270 | ||||
Political revenue | (1,566 | ) | (8,298 | ) | ||||
As reported net revenue, excluding impact of political revenue | $ | 219,735 | $ | 242,972 |
Three Months Ended | Three Months Ended | |||||||
As reported Adjusted EBITDA | $ | 22,798 | $ | 42,717 | ||||
Political EBITDA | (1,409 | ) | (7,469 | ) | ||||
As reported Adjusted EBITDA, excluding impact of political EBITDA | $ | 21,389 | $ | 35,248 |
Year Ended | Year Ended | |||||||
As reported net revenue | $ | 844,548 | $ | 953,506 | ||||
Political revenue | (3,299 | ) | (18,425 | ) | ||||
As reported net revenue, excluding impact of political revenue | $ | 841,249 | $ | 935,081 |
Year Ended | Year Ended | |||||||
As reported Adjusted EBITDA | $ | 90,728 | $ | 165,982 | ||||
Political EBITDA | (2,969 | ) | (16,583 | ) | ||||
As reported Adjusted EBITDA, excluding impact of political EBITDA | $ | 87,759 | $ | 149,399 |
The following table reconciles total debt principal, gross, the most directly comparable financial measure calculated and presented in accordance with GAAP, to net debt (dollars in thousands):
As of | ||||||||
2023 | 2022 | |||||||
Total debt principal, gross | $ | 675,755 | $ | 719,379 | ||||
Less: Cash and cash equivalents | (80,660 | ) | (107,433 | ) | ||||
Total debt principal, net | $ | 595,095 | $ | 611,946 |
Source:
2024 GlobeNewswire, Inc., source