Entercom Reports Revenue Was Up 2 Percent in Q4

Entercom Communications Corp. Thursday reported financial results for the quarter ended December 31, 2014.

Fourth Quarter Highlights

• Net revenues for the quarter increased 2% to $101.5 million
• Station expenses increased 3% to $63.3 million
• Station operating income was flat at $38.2 million
• Adjusted EBITDA increased 1% to $33.0 million
• Adjusted net income per share increased 3% to $0.32
• Free cash flow increased 4% to $23.4 million

Full Year Highlights

• Net revenues for the year increased 1% to $379.8 million
• Station expenses increased 3% to $258.3 million
• Station operating income decreased 3% to $121.5 million
• Adjusted EBITDA decreased 5% to $99.3 million
• Adjusted net income per share was flat at $0.79
• Free cash flow decreased 7% to $56.1 million

David J. Field, President and Chief Executive Officer, stated: “After finishing 2014 with modest gains in net revenues, adjusted net income and free cash flow, Entercom is looking forward to a promising year of opportunity in 2015. Our recently announced Lincoln Financial Media acquisition will add a number of terrific new markets and brands to our lineup and should be accretive to shareholders with no material impact on our solid balance sheet. And we are well-positioned to capitalize on a number of other significant growth opportunities throughout the organization.”

David Field

Entercom's best performing markets during the quarter were Buffalo, Indianapolis, Kansas City and Sacramento.  Boston has accelerated into 2015 and is now delivering strong top line and bottom line growth as well as significant ratings growth at both WEEI and WAAIm according to Field.

On his earnings call with financial analysts, Field touted Entercom's new SmartReach Digital division,  a full scale digital agency in Denver and the launching of dedicated sales operations in 12 markets during the spring and summer months. "Revenues are growing significantly in percentage terms, but from a small base in its early stage whilst we do to the long lead times in the business."

"We are excited about where this business is going in 2015 and beyond."

He also cited the acquisition of Lincoln Financial Group’s Radio Division for $105 million. "Lincoln is a great fit as it enables us to enter three new top 20 markets Miami, Atlanta and San Diego plus Denver where we already operate. The transaction fulfils our disciplined acquisition criteria as it enhances our competitive position and growth potential and should be accretive to shareholders in its first year of operations while having a minimal impact on leverage."