CUMULUS MEDIA Reports Operating Results for the Second Quarter 2021

ATLANTA, Aug. 04, 2021 (GLOBE NEWSWIRE) — Cumulus Media Inc. (NASDAQ: CMLS) today announced operating results for the six months ended June 30, 2021.

Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, “This quarter’s results clearly reflect the success we are having in accelerating our positive revenue trajectory. In addition to the continued improvement in the core radio business, total digital revenue grew by 55% year-over-year, with each of our digital channels posting new all-time highs. Additionally, we enhanced our considerable stronghold in the news/talk ecosystem with The Dan Bongino Show, now on over 300 radio stations – the largest launch ever for a new and original syndication. We also significantly deepened our position in the fast-growing sports betting space with an innovative and expansive multi-year, multi-platform marketing and content partnership with WynnBET, which is poised to become one of our largest clients through this new relationship.”

Berner added, “We continue to reduce the Company’s fixed cost structure, increasing our expectation for fixed cost reductions to $70 million in 2022 from our prior guidance of $50 million versus the 2019 baseline. Additionally, we bolstered our cash and balance sheet with the highly accretive, $34 million monetization of our Nashville real estate. Looking forward, we are confident that we will see significant top-line growth and meaningful recovery in EBITDA, which, along with our substantial financial flexibility, gives us multiple pathways for continued growth of shareholder value.”

Key Highlights:

  • Delivered continued positive revenue trajectory across all ad channels
    • Increased total revenue by 54% year-over-year
    • Increased digital revenue by 55% year-over-year with streaming, local digital marketing services and podcasting revenue streams all reaching new all-time highs
  • Announced multiple major platform-wide partnerships with meaningful upside
    • Launched The Dan Bongino Show (an extension of our successful podcast relationship), which now has 300+ affiliates, a record-breaking start for a new and original syndicated show
    • Established strong beachhead in the sports betting sector through unique multi-year partnership with WynnBET, the premier mobile sports betting app from Wynn Resorts
  • Enhanced margins and operating leverage from fixed cost actions
    • Realized more than $10 million of year-over-year permanent cost reductions in the quarter
    • Announced an additional $20 million of permanent fixed cost reductions expected to be realized in 2022 (now anticipating more than $70 million in aggregate vs. 2019 baseline)
  • Further strengthened balance sheet with $175 million debt paydown
    • Finished the quarter with $125 million of cash on hand (excluding the aforementioned debt paydown, an increase of $6 million compared with March 31, 2021)
    • Reported total debt of $826 million at June 30, 2021, and net debt of $701 million
  • Completed $34 million sale of Nashville non-core real estate on August 2, 2021
    • Proceeds required to pay down debt, subject to reinvestment rights
    • Results in slight operating income benefit with no business impact

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

For the three months ended June 30, 2021, the Company reported net revenue of $224.7 million, an increase of 53.9% from the three months ended June 30, 2020, net loss of $5.9 million and Adjusted EBITDA of $36.9 million.

For the six months ended June 30, 2021, the Company reported net revenue of $426.4 million, an increase of 14.0% from the six months ended June 30, 2020, net loss of $27.8 million and Adjusted EBITDA of $45.8 million.

As Reported Three Months Ended
June 30, 2021
Three Months Ended
June 30, 2020
% Change
Net revenue $ 224,718 $ 146,022 53.9 %
Net loss $ (5,891 ) $ (36,316 ) 83.8 %
Adjusted EBITDA (1) $ 36,857 $ (6,375 ) N/A
Basic loss per share $ (0.29 ) $ (1.79 ) 83.8 %
Diluted loss per share $ (0.29 ) $ (1.79 ) 83.8 %
As Reported Six Months Ended
June 30, 2021
Six Months Ended
June 30, 2020
% Change
Net revenue $ 426,446 $ 373,936 14.0 %
Net loss $ (27,809 ) $ (43,667 ) 36.3 %
Adjusted EBITDA (1) $ 45,789 $ 21,350 114.5 %
Basic loss per share $ (1.36 ) $ (2.15 ) 36.7 %
Diluted loss per share $ (1.36 ) $ (2.15 ) 36.7 %

Revenue Detail Summary (dollars in thousands):

As Reported Three Months Ended
June 30, 2021
Three Months Ended
June 30, 2020
% Change
Broadcast radio revenue:
Spot $ 120,886 $ 72,437 66.9 %
Network 55,346 41,767 32.5 %
Total broadcast radio revenue 176,232 114,204 54.3 %
Digital 31,422 20,341 54.5 %
Other 17,064 11,477 48.7 %
Net revenue $ 224,718 $ 146,022 53.9 %
As Reported Six Months Ended
June 30, 2021
Six Months Ended
June 30, 2020
% Change
Broadcast radio revenue:
Spot $ 213,783 $ 194,380 10.0 %
Network 117,375 107,450 9.2 %
Total broadcast radio revenue 331,158 301,830 9.7 %
Digital 58,501 42,227 38.5 %
Other 36,787 29,879 23.1 %
Net revenue $ 426,446 $ 373,936 14.0 %

Balance Sheet Summary (dollars in thousands):

June 30, 2021 December 31, 2020
Cash and cash equivalents $ 124,978 $ 271,761
Term loan due 2026 (2) $ 356,240 $ 469,411
6.75% Senior notes (2) $ 449,695 $ 452,836
2020 Revolving credit facility $ $ 60,000
Payroll Protection Program loans $ 20,000 $
Six Months Ended
June 30, 2021
Six Months Ended
June 30, 2020
Capital expenditures $ 11,971 $ 5,575

(1)   Adjusted EBITDA is not a financial measure calculated or presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For additional information, see “Non-GAAP Financial Measures.”
(2)   Excludes unamortized debt issuance costs.

About CUMULUS MEDIA
CUMULUS MEDIA (NASDAQ: CMLS) is a leading media, advertising, and marketing services company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 413 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across nearly 7,300 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the CUMULUS Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.