Cumulus: Revenues Fall 48% In Q2, Sell-Offs Minimize COVID-19 Impacts

Cumulus Media Inc. today announced operating results for the three and six months ended June 30, 2020.

Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, "Despite the COVID-19 pandemic’s material impact on revenue, the Company generated over $90 million of cash in the quarter through quick and decisive expense actions, strong working capital management and the completion of the sale of land in Bethesda, MD. Ending the quarter with nearly $200 million of cash, we have also entered into an agreement to monetize our tower portfolio for more than $210 million, proceeds which will further add to our liquidity and contribute to significant incremental debt paydown.

"Our demonstrated ability to rise to a challenge, strong liquidity position and resilient balance sheet are critical assets as we operate through this uncertain environment, and we believe we remain very well-positioned to drive long-term shareholder value through continued aggressive debt reduction and the execution of our growth initiatives."

Key Highlights:

• Meaningfully mitigated pandemic’s Q2 impacts through significant fixed cost expense reductions
• Nearly $36 million realized in Q2
• Total reductions of more than $85 million expected in 2020
• Delivered sequential monthly revenue and EBITDA improvement through the quarter
• Continued to deliver profitable growth in digital
• Posted positive EBITDA in June
• Substantially increased liquidity and strengthened balance sheet
• Grew cash balance to $197 million, up $91 million from Q1
• Achieved net debt reduction of approximately 10% since March
• Generated $28 million of cash from operations and netted $66 million of additional cash from completion of the sale of land in Bethesda, MD in Q2

Operating Summary (dollars in thousands, except percentages and per share data):

• For the three months ended June 30, 2020, the Company reported net revenue of $146.0 million, a decrease of 47.8% from the three months ended June 30, 2019, net loss of $36.3 million and Adjusted EBITDA of $(6.4) million.
• For the three months ended June 30, 2020, the Company reported same station net revenue of $146.0 million, a decrease of 46.6% from the three months ended June 30, 2019, and same station Adjusted EBITDA of $(6.3) million.
• For the six months ended June 30, 2020, the Company reported net revenue of $373.9 million, a decrease of 31.7% from the six months ended June 30, 2019, net loss of $43.7 million and Adjusted EBITDA of $21.4 million.
• For the six months ended June 30, 2020, the Company reported same station net revenue of $372.5 million, a decrease of 29.5% from the six months ended June 30, 2019, and same station Adjusted EBITDA of $22.2 million, a decrease of 78.3% from the six months ended June 30, 2019.