Cumulus Media Inc. (NASDAQ: CMLS) (the “Company,” “CUMULUS MEDIA,” “we,” “us,” or “our”) today announced operating results for the three months ended March 31, 2020.
Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, “Regardless of the challenge, the Cumulus team has focused acutely on what matters most, moved decisively where it will make a difference, and executed every effort efficiently and with an eye toward creating value. Our reaction to this unprecedented COVID-19 crisis has been no different. We entered March with strong financial performance, a favorable capital structure and significant liquidity, and we’ve taken swift actions that we believe will help us weather the adverse impacts of the pandemic.”
Berner continued, “Over the past few years, we have made meaningful shifts, both culturally and strategically, expanding from our on-air radio foundation to become a multi-platform audio-first media company, delivering premium content to over a quarter billion listeners each month whenever and however they want it. With our robust portfolio of broadcast, digital, mobile and voice-activated media solutions and integrated digital marketing services, we are very well-positioned to provide advertisers with the personal connections, local impact and massive national reach that will help them quickly reconnect with their customers as the crisis wanes.”
Key Highlights:
- Quick and substantial actions to address COVID-19 pandemic
- Fixed cost reductions of nearly $60 million expected to be realized in 2020
- Curtailment of anticipated 2020 capital expenditures by 40%
- Anticipated significant tax benefits from CARES Act
- Increased cash from active working capital management
- Strong and flexible balance sheet
- Cash balance of $106 million as of March 31, 2020
- No funded debt maturity prior to 2026 – no maintenance covenants
- New $100 million ABL revolving credit facility with 2025 maturity ($60 million drawn)
- Stated commitment to, and history of, de-leveraging (over $275 million of debt paydown from June 2018 to December 2019)
- Consistent operating and management performance (1)
- Meaningful track record of success, including multiple years of revenue and Adjusted EBITDA growth and significant free cash flow generation
- Delivery of top-line and bottom-line growth in 2020 through February
- Continued profitable digital growth of 30.0% in Q1 2020 (+35.8% on a same station basis)
