Cumulus Media Reports Drop In Net Revenue

Cumulus Media Inc. Monday announced operating results for the three and six months ended June 30, 2018. Highlights:

• Fresh out of a Chapter 11 reorganization, Cumulus Media (NASDAQ:CMLS) has posted Q2 earnings where revenues and EBITDA declined slightly Y/Y.
• Net income of $706.1M included an after-tax gain of $671M associated with its emergence from bankruptcy (in a plan that became effective June 4).
• Key operating performance measures and financial results weren't materially affected by the reorganization, Cumulus says.
• “In the second quarter, we emerged from Chapter 11 with new and supportive ownership, a billion dollars less debt and results that demonstrate our operational and financial momentum, despite industry challenges and the distractions posed by our Chapter 11 proceedings," says CEO Mary Berner.

Results for the 2018 periods reflect the combined results of the Successor and Predecessor Companies in connection with the Company's emergence from Chapter 11.

For the three months ended June 30, 2018, the Company reported:

• Net revenue of $285.2 million, down 1.8% from the three months ended June 30, 2017
• Net income of $706.1 million
• Adjusted EBITDA of $66.4 million, which was down 1.5% from the three months ended June 30, 2017. 

For the six months ended June 30, 2018, the Company reported:

• Net revenue of $548.9 million, down 1.0% from the six months ended June 30, 2017
• Net income of $701.1 million
• Adjusted EBITDA of $106.6 million, which was up 0.5% from the six months ended June 30, 2017. 

Net income for the three and six months ended June 30, 2018 included after-tax gains associated with the Company's emergence from Chapter 11 of $671.0 million and $641.0 million, respectively.

Mary Berner

Mary Berner, President and Chief Executive Officer of Cumulus Meida said, “In the second quarter, we emerged from Chapter 11 with new and supportive ownership, a billion dollars less debt and results that demonstrate our operational and financial momentum, despite industry challenges and the distractions posed by our Chapter 11 proceedings. Normalizing those results for $4.8 million of write-offs related to United States Traffic Network’s well-publicized financial problems, our Adjusted EBITDA grew in the quarter by 5.5%.”

Berner continued, “Looking forward, we are excited about the potential of our digital products, improved pricing and inventory management across the entire platform and our young but fast-growing podcasting business to supplement the performance of our core business. These growth drivers, combined with our continued focus on operating fundamentals, our reduced debt load, our ability to generate significant free cash flow and our renewed focus on optimization of our portfolio of assets, position us well to build substantial shareholder value in the quarters and years to come.”