Digital, Podcasting Leads Cumulus To Strong Results

Cumulus Media Inc. today announced operating results for the three and six months ended June 30, 2022. 

Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, "Our ability to deliver yet another quarter of strong results is testament both to the quality of our strategic plan and the discipline and relentlessness with which we implement it.  Specifically, we have deployed our multi-platform audio-first content strategy, developed multiple digital businesses, significantly reduced fixed costs, undertaken high ROI internal investments, and created a best-in-class balance sheet that gives the Company substantial financial flexibility and capital allocation optionality. Given our track record, we have tremendous confidence in our ability, under this plan, to grow shareholder value."

Mary Berner

Berner added, “Despite the challenging macro environment, we increased revenue in the quarter by more than 5%, driven by our digital businesses whose growth accelerated in Q2 to 20% year-over-year. Additionally, bolstered by our ongoing focus on fixed cost reductions, this quarter we generated additional cash from operations and increased net income, EBITDA and EBITDA margins vs. the same period last year. We also efficiently executed nearly half of our $50 million share repurchase authorization and bought back $50 million of bonds at a discount, while simultaneously reducing net leverage(1) to 3.8x, the lowest it’s been in more than a decade. With a robust political spending season anticipated, we are on trend toward achieving our net leverage target of less than 3.5 times and EBITDA at the low end of our 2022 guidance range.” 

➤Key Financial Highlights: 

• Increased second quarter revenue by 5% year-over-year 
• Digital revenue up 20% led by podcasting (+27%) and digital marketing services (+22%)
• Strength in local spot (+8%) revenue largely offsetting declines in national spot and network 
• Recorded second quarter net income of $8.7 million compared to a net loss of $5.9 million in Q2 2021
• Achieved second quarter EBITDA of $45.5 million, an increase of 23% year-over-year, with year-over-year EBITDA margin(1) improvement of approximately 280 basis points, driven by permanent fixed cost reductions
• Continued reduction of net leverage(1), achieving the lowest levels in more than a decade – best among peers
• Retired $49.8 million of senior notes at an average purchase price of 96.8% of par, bringing year-to-date debt reduction to $62.3 million
• Generated $6.2 million of cash from operations, bringing year-to-date cash generation from operations to $30.5 million
• Reported total debt of $744 million at 6/30/22 and net debt(1) of $635 million
• Reduced net leverage from 4.7x at 12/31/2021 to 3.8x at 6/30/22
• Completed $25 million Dutch tender offer (reducing share count by 1.7 million or 8.7% of outstanding Class A shares as of 6/3/22) with $25 million remaining under the previously announced share repurchase authorization.