Cumulus Media Reports Quarterly Revenue Dropped 30 Percent

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

Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, "In the third quarter, the Company continued to focus on maximizing revenue performance, executing meaningful expense reductions, protecting cash through efficient working capital management and strengthening our balance sheet. 

"Despite the extraordinary challenges of operating through a pandemic, we have reduced debt by $269 million and increased cash by $316 million since emerging from bankruptcy in 2018 (a net debt reduction of more than $585 million or 46%.) We believe that these actions, along with record-setting political revenues, will allow us to navigate through and emerge from the COVID-19 crisis with considerable ability to support our growth initiatives and capitalize on strategic and operating opportunities in 2021 and beyond."

Third Quarter 2020 Key Highlights:

• Grew revenue sequentially each month, with total September revenues up 35% over June
• Improved spot revenue performance each month, both in total and excluding political
• Achieved continued digital revenue growth, led by podcasting growth of nearly 50% year-over-year
• Realized record-setting political revenue of $5.8 million
• Generated positive cash from operations, driven by tight expense and working capital management
• Realized over $25 million of fixed cost expense reductions in Q3 year-over-year
• Continue to anticipate total reductions of more than $85 million in 2020
• Improved EBITDA performance each month
• Continued to strengthen the Company’s balance sheet and financial flexibility
• Finished with $353.7 million of cash – excluding M&A, cash increased by $3.5 million from June 30, 2020
• Completed initial closing of previously announced tower portfolio monetization for net proceeds of $202.3 million
• Paid down $49.0 million of term loan at transaction closing and $47.2 million of senior secured bonds on November 3rd

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

• For the three months ended September 30, 2020, the Company reported net revenue of $196.4 million, a decrease of 30.1% from the three months ended September 30, 2019, net loss of $15.8 million and Adjusted EBITDA of $20.3 million.
• For the three months ended September 30, 2020, the Company reported same station net revenue of $196.4 million, a decrease of 29.4% from the three months ended September 30, 2019, and same station Adjusted EBITDA of $20.4 million.
• For the nine months ended September 30, 2020, the Company reported net revenue of $570.3 million, a decrease of 31.1% from the nine months ended September 30, 2019, net loss of $59.5 million and Adjusted EBITDA of $41.7 million.
• For the nine months ended September 30, 2020, the Company reported same station net revenue of $568.9 million, a decrease of 29.5% from the nine months ended September 30, 2019, and same station Adjusted EBITDA of $42.6 million, a decrease of 73.8% from the nine months ended September 30, 2019.