NEW YORK (TheStreet) -- Cumulus Media (CMLS) was rising 9.5% to $7.38 in late afternoon trading on Tuesday after the second-largest owner and operator of FM and AM radio stations in the U.S. reported its fourth-quarter and full-year earnings.
Cumulus reported net revenue of $275.5 million for the quarter, a 4.5% year-over-year increase from the $263.6 million in 2012. Adjusted EBIDTA fell 12.6% year over year to $83.9 million from $96.1 million. The company also reported pro forma revenue of $328.3 million, a 0.8% year-over-year increase from $325.6 million. Pro forma adjusted EBIDTA was $96.2 million, a 5.7% year-over-year increase from $91.1 million.
The pro forma results include Cumulus' acquisition of WestwoodOne in Dec. 2013 and Townsquare Media in Nov. 2013.
For the full year, reported net revenue totaled $1.03 billion, a 2.4% increase from $1 billion in 2012. Adjusted EBIDTA fell 7.8% to $330.02 million from $358.05 million. Pro forma revenue for the year was $1.246 billion, down 1.4 % from $1.263 billion. Pro forma adjusted EBIDTA was $363.4 million, down 4.9% from $382.1 million.
"Strong execution, along with continued traction in our key growth initiatives, resulted in pro forma revenue up 1% and Adjusted EBITDA up 6%," said Chairman and CEO Lew Dickey in the company's statement. "In spite of tough political comps, this marked our third consecutive quarter of top and bottom line growth."
TheStreet Ratings team rates CUMULUS MEDIA INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CUMULUS MEDIA INC (CMLS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 112.38% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 2.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CUMULUS MEDIA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CUMULUS MEDIA INC swung to a loss, reporting -$0.67 versus $0.04 in the prior year. This year, the market expects an improvement in earnings ($0.17 versus -$0.67).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Media industry and the overall market, CUMULUS MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 87.4% when compared to the same quarter one year ago, falling from $56.05 million to $7.04 million.
- You can view the full analysis from the report here: CMLS Ratings Report