Entercom Reports Revenue Up, Expenses Down

Entercom Communications today reported financial results for the quarter ended September 30, 2018.

Third Quarter Highlights

• Net revenues for the quarter were $378.5 million, compared to $122.3 million in the third quarter of 2017. On a same-station basis, net revenues for the quarter were $378.5 million compared to $395.2 million in the third quarter of 2017
• Total operating expense for the quarter was $299.8 million, compared to $108.8 million in the third quarter of 2017
• Total same-station cash expense for the quarter was $291.8 million, a decrease of 4.5% compared to $305.5 million in the third quarter of 2017
• Operating income for the quarter was $78.7 million, compared to $13.5 million in the third quarter of 2017
• Net income per diluted share for the quarter was $0.26, compared to $0.09 in the third quarter of 2017
• Pro Forma Adjusted EBITDA for the quarter was $86.7 million, compared to $89.7 million in the third quarter of 2017

David Field

David J. Field, President and Chief Executive Officer, stated: “As we close in on the one year anniversary of our transformational merger with CBS Radio, we are very pleased with our progress and excited about the momentum we are building across multiple growth initiatives.  Revenues have improved significantly since the first half of the year and the fourth quarter is on track for significant growth, currently pacing up 4%.  Expenses are down significantly, driven by synergies, and we anticipate solid double digit EBITDA growth in the fourth quarter.  In addition, we have now completed all of our previously announced divestitures and land sales, generating roughly $200 million in cash proceeds.”

During the 3rd quarter, Entercom completed its sale of four radio stations in San Francisco and four radio stations in Sacramento to Bonneville International Corporation for $141 million. These stations had been held separate from the Company through an FCC divestiture trust and were being operated by Bonneville under a time brokerage agreement.

The Company closed the sale of a tower site adjacent to O’Hare Airport in Chicago for $46 million and the sale of an office building on Venice Boulevard in Los Angeles for $26 million during the 3rd quarter. The Company plans to use a portion of these proceeds to fund facilities consolidation projects in two of its markets and to purchase this property through a tax-free 1031 exchange. As a result, the sale proceeds are held in a qualified intermediary for tax purposes and are classified on the Company’s balance sheet as restricted cash.

In September, the Company completed its acquisition of Philadelphia station WBEB-FM for $56.4 million in cash. At the same time, the Company completed the sale of WXTU-FM in Philadelphia, PA to Beasley Broadcast Group, Inc. for $38.0 million in cash. The Company used the WXTU-FM sale proceeds and cash on hand to fund the WBEB-FM acquisition.

As of September 30, 2018, the Company had outstanding $1,525 million of senior debt under its credit facilities and $400 million in senior notes (both amounts exclude unamortized premium from purchase price accounting). In addition, the Company had $270 million in cash on hand, including $70 million in restricted cash.