ATLANTA, Aug. 14, 2017 (GLOBE NEWSWIRE) -- Cumulus Media Inc. (NASDAQ:CMLS) (the "Company," "we," "us," or "our") today announced operating results for the three and six months ended June 30, 2017.  

For the three months ended June 30, 2017, the Company reported net revenue of $290.5 million, up 1.2% from the three months ended June 30, 2016, net income of $5.7 million and Adjusted EBITDA of $67.4 million which was up 6.7% from the three months ended June 30, 2016. For the six months ended June 30, 2017, the Company reported net revenue of 554.6 million, down 0.2% from the six months ended June 30, 2016, net loss of $1.7 million and Adjusted EBITDA of $106.1 million which was up 1.0% from the six months ended June 30, 2016.

Mary Berner, President and Chief Executive Officer of Cumulus Media Inc. said, "Our second quarter results provide further evidence of the success of our turnaround strategies as we posted a year-over-year increase in Adjusted EBITDA for the first time in over three years despite what continues to be a tough market environment."

Operating Summary (in thousands, except percentages and per share data):
 
    Three Months Ended June 30,
    2017   2016   % Change
Net revenue   $ 290,531     $ 287,193     1.2 %
Net income   $ 5,672     $ 1,066     **
Adjusted EBITDA (1)   $ 67,400     $ 63,180     6.7 %
Basic and diluted income per share   $ 0.19     $ 0.04      

    Six Months Ended June 30,
    2017   2016   % Change
Net revenue   $ 554,561     $ 555,723     (0.2 )%
Net loss   $ (1,723 )   $ (13,363 )   **
Adjusted EBITDA (1)   $ 106,133     $ 105,114     1.0 %
Basic and diluted loss per share   $ (0.06 )   $ (0.46 )    

    June 30, 2017   December 31, 2016   % Change
Cash and cash equivalents   $ 141,195     $ 131,259     7.6 %
             
Term loan (2)   $ 1,810,266     $ 1,810,266     %
7.75% senior notes (3)   610,000     610,000     %
Total debt   $ 2,420,266     $ 2,420,266     %

    Three Months Ended June 30,
    2017   2016   % Change
Capital expenditures   $ 7,467     $ 7,301     2.3 %

    Six Months Ended June 30,
    2017   2016   % Change
Capital expenditures   $ 13,203     $ 11,462     15.2 %

(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 Measure and Definition".(2) Term loan excludes debt issuance costs/discounts of $26,053 and $29,909 at June 30, 2017 and December 31, 2016, respectively.(3) 7.75% senior notes exclude debt issuance costs/discounts of $4,969 and $6,200 at June 30, 2017 and December 31, 2016, respectively.

**      Calculation not meaningful

Results for Three Months Ended June 30, 2017

Net Revenue

The Company operates in two reportable segments, the Radio Station Group and Westwood One. The Radio Station Group revenue is derived primarily from the sale of broadcasting time to local, regional and national advertisers. Westwood One revenue is generated primarily through network advertising.

Corporate and Other includes overall executive, administrative and support functions for both of the Company's reportable segments, including programming, finance, legal, human resources and information technology functions.

The following tables present our net revenue by segment (dollars in thousands).
    Three Months Ended June 30, 2017
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Net revenue   $ 208,596     $ 81,234     $ 701     $ 290,531  
% of total revenue   71.8 %   28.0 %   0.2 %   100.0 %
$ change from three months ended June 30, 2016   $ (1,368 )   $ 4,704     $ 2     $ 3,338  
% change from three months ended June 30, 2016   (0.7 )%   6.1 %   0.3 %   1.2 %

    Three Months Ended June 30, 2016
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Net revenue   $ 209,964     $ 76,530     $ 699     $ 287,193  
% of total revenue   73.1 %   26.7 %   0.2 %   100.0 %

Net income (loss)

The following tables present our net income (loss) by segment (dollars in thousands).
    Three Months Ended June 30, 2017
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Net income (loss)   $ 46,803     $ 10,976     $ (52,107 )   $ 5,672  
$ change from three months ended June 30, 2016   $ 398     $ 10,089     $ (5,881 )   $ 4,606  
% change from three months ended June 30, 2016   0.9 %   **   (12.7 )%   **

**            Calculation not meaningful
    Three Months Ended June 30, 2016
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Net income (loss)   $ 46,405     $ 887     $ (46,226 )   $ 1,066  

Adjusted EBITDA

The following tables present our Adjusted EBITDA by segment (dollars in thousands).
    Three Months Ended June 30, 2017
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Adjusted EBITDA   $ 59,870     $ 16,942     $ (9,412 )   $ 67,400  
$ change from three months ended June 30, 2016   $ 549     $ 4,014     $ (343 )   $ 4,220  
% change from three months ended June 30, 2016   0.9 %   31.0 %   (3.8 )%   6.7 %

    Three Months Ended June 30, 2016
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Adjusted EBITDA   $ 59,321     $ 12,928     $ (9,069 )   $ 63,180  

Results for Six Months Ended June 30, 2017

Net Revenue

The following tables present our net revenue by segment (dollars in thousands).
    Six Months Ended June 30, 2017
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Net revenue   382,197     171,090     1,274     $ 554,561  
% of total revenue   68.9 %   30.9 %   0.2 %   100.0 %
$ change from six months ended June 30, 2016   $ (4,244 )   $ 2,996     $ 86     $ (1,162 )
% change from six months ended June 30, 2016   (1.1 )%   1.8 %   7.2 %   (0.2 )%

    Six Months Ended June 30, 2016
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Net revenue   $ 386,441     $ 168,094     $ 1,188     $ 555,723  
% of total revenue   69.5 %   30.3 %   0.2 %   100.0 %

Net income (loss)

The following tables present our net income (loss) by segment (dollars in thousands).
    Six Months Ended June 30, 2017
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Net income (loss)   $ 75,341     $ 13,241     $ (90,305 )   $ (1,723 )
$ change from six months ended June 30, 2016   $ 4,197     $ 15,239     $ (7,796 )   $ 11,640  
% change from six months ended June 30, 2016   5.9 %   **   (9.4 )%   **

**            Calculation not meaningful
    Six Months Ended June 30, 2016
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Net income (loss)   $ 71,144     $ (1,998 )   $ (82,509 )   $ (13,363 )

Adjusted EBITDA

The following tables present our Adjusted EBITDA by segment (dollars in thousands).
    Six Months Ended June 30, 2017
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Adjusted EBITDA   $ 98,911     $ 25,911     $ (18,689 )   $ 106,133  
$ change from six months ended June 30, 2016   $ (4,130 )   $ 5,224     $ (75 )   $ 1,019  
% change from six months ended June 30, 2016   (4.0 )%   25.3 %   (0.4 )%   1.0 %

    Six Months Ended June 30, 2016
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
Adjusted EBITDA   $ 103,041     $ 20,687     $ (18,614 )   $ 105,114  

Earnings Call InformationCumulus Media Inc. will host a teleconference today at 4:30 PM eastern time to discuss its second quarter 2017 operating results.

The conference call dial-in number for domestic callers is 877-830-7699. International callers should dial 574-990-0924 for conference call access.  If prompted, the conference ID is 56090542. Please call five to ten minutes in advance to ensure that you are connected prior to the presentation.

Following completion of the call, a replay can be accessed until 11:59 PM eastern time, September 14, 2017. Domestic callers can access the replay by dialing 855-859-2056 or 404-537-3406, replay code 56090542. International callers should dial +44 (0)145255000 for conference replay access. An archive of the webcast will be available beginning 24 hours after the call for a period of 30 days.

A link to the webcast of the conference call and the related earnings presentation will be available on the investor section of the Cumulus Media Inc. website ( www.cumulus.com/investors).

Forward-Looking StatementsCertain statements in this release may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Such statements are statements other than historical fact and relate to our intent, belief or current expectations primarily with respect to certain historical and our future operating, financial, and strategic performance. Any such forward-looking statements are not guarantees of future performance and may involve risks and uncertainties. Actual results may differ from those contained in or implied by the forward-looking statements as a result of various factors including, but not limited to, risks and uncertainties relating to the need for additional funds to service our debt and to execute our business strategy, our ability to access borrowings under our revolving credit facility, our ability from time to time to renew one or more of our broadcast licenses, changes in interest rates, changes in the fair value of our investments, the timing of, and our ability to complete any acquisitions or dispositions pending from time to time, costs and synergies resulting from the integration of any completed acquisitions, our ability to effectively manage costs, our ability to generate and manage growth, the popularity of radio as a broadcasting and advertising medium, changing consumer tastes, the impact of general economic conditions in the United States or in specific markets in which we currently do business, industry conditions, including existing competition and future competitive technologies and cancellation, disruptions or postponements of advertising schedules in response to national or world events, our ability to generate revenues from new sources, including local commerce and technology-based initiatives, the impact of regulatory rules or proceedings that may affect our business from time to time, our ability to continue to meet the listing standards for our Class A common stock to continue to be listed for trading on the NASDAQ stock market, the write off of a material portion of the fair value of our FCC broadcast licenses and goodwill, and other risk factors described from time to time  in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2016 (the "2016 Form 10-K") and any subsequent filings. Many of these risks and uncertainties are beyond our control, and the unexpected occurrence or failure to occur of any such events or matters could significantly alter our actual results of operations or financial condition. Cumulus Media Inc. assumes no responsibility to update any forward-looking statement as a result of new information, future events or otherwise.

About Cumulus MediaA leader in the radio broadcasting industry, Cumulus Media combines high-quality local programming with iconic, nationally syndicated media, sports and entertainment brands to deliver premium content choices to the 245 million people reached each week through its 447 owned-and-operated stations broadcasting in 90 US media markets (including eight of the top 10), more than 8,000 broadcast radio stations affiliated with its Westwood One network and numerous digital channels. Together, the Cumulus/Westwood One platforms make Cumulus Media one of the few media companies that can provide advertisers with national reach and local impact. Cumulus/Westwood One is the exclusive radio broadcast partner to some of the largest brands in sports, entertainment, news and talk, including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYs, the Academy of Country Music Awards, the American Music Awards, the Billboard Music Awards, Westwood One News, and more. Additionally, it is the nation's leading provider of country music and lifestyle content through its NASH brand, which serves country fans nationwide through radio programming, exclusive digital content, and live events.

CUMULUS MEDIA INC. Unaudited Condensed Consolidated Statements of Operations (Dollars in thousands, except per share data)
 
    Three Months Ended June 30,   Six Months Ended June 30,
    2017   2016   2017   2016
Net revenue   $ 290,531     $ 287,193     $ 554,561     $ 555,723  
Operating expenses:                
Content costs   93,289     97,133     195,069     197,178  
Selling, general and administrative expenses   120,506     117,860     234,896     235,087  
Depreciation and amortization   16,120     22,969     32,402     46,066  
Local marketing agreement fees   2,713     2,482     5,420     7,870  
Corporate expenses   9,476     9,203     18,742     18,713  
Stock-based compensation expense   530     790     1,068     1,668  
Acquisition-related and restructuring costs   467     1,421     1,618     3,687  
Loss (gain) on sale of assets or stations   104     (3,146 )   (2,502 )   (3,141 )
Impairment of intangible assets and goodwill       1,816         1,816  
Total operating expenses   243,205     250,528     486,713     508,944  
Operating income   47,326     36,665     67,848     46,779  
Non-operating expense:                
Interest expense   (34,344 )   (34,486 )   (68,407 )   (68,967 )
Interest income   35     140     72     225  
Other (expense) income, net   (111 )   (4 )   (28 )   716  
Total non-operating expense, net   (34,420 )   (34,350 )   (68,363 )   (68,026 )
Income (loss) before income taxes   12,906     2,315     (515 )   (21,247 )
Income tax (expense) benefit   (7,234 )   (1,249 )   (1,208 )   7,884  
Net income (loss)   $ 5,672     $ 1,066     $ (1,723 )   $ (13,363 )
Basic and diluted earnings (loss) per common share:                
Basic:  Earnings (loss) per share   $ 0.19     $ 0.04     $ (0.06 )   $ (0.46 )
Diluted:  Earnings (loss) per share   $ 0.19     $ 0.04     $ (0.06 )   $ (0.46 )
Weighted average basic common shares outstanding   29,306,374     29,291,128     29,306,374     29,273,774  
Weighted average diluted common shares outstanding   29,306,374     29,336,502     29,306,374     29,273,774  

                               

Non-GAAP Financial Measure and DefinitionFrom time to time we utilize certain financial measures that are not prepared or calculated in accordance with GAAP to assess our financial performance and profitability. Adjusted EBITDA is the financial metric utilized by the Company to analyze the cash flow generated by our business. This measure isolates the amount of income generated by our core operations after the incurrence of corporate, general and administrative expenses. The Company also uses this measure to determine the contribution of our core operations to the funding of our corporate resources utilized to manage our operations and our non-operating expenses including debt service and acquisitions. In addition, consolidated Adjusted EBITDA, excluding the impact of local marketing agreement fees, is a key metric for purposes of calculating and determining our compliance with certain covenants contained in our Credit Agreement.

In deriving this measure, the Company excludes depreciation, amortization and stock-based compensation expense, as these do not represent cash payments for activities directly related to our core operations. The Company also excludes any gain or loss on the exchange or sale of any assets and any gain or loss on derivative instruments, early extinguishment of debt, and local marketing agreement fees as they are not associated with core operations. Expenses relating to acquisitions and restructuring costs are also excluded from the calculation of Adjusted EBITDA as they are not directly related to our ongoing core operations. The Company also excludes any costs associated with impairment of assets as they do not require a cash outlay.

The Company believes that Adjusted EBITDA, although not a measure that is calculated in accordance with GAAP, is commonly employed by the investment community as a measure for determining the market value of a media company and comparing the operational and financial performance among media companies. The Company has also observed that Adjusted EBITDA is routinely employed to evaluate and negotiate the potential purchase price for media companies. Given the relevance to our overall value, the Company believes that investors consider the metric to be extremely useful.

Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss), operating income, cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with GAAP. In addition, Adjusted EBITDA may be defined or calculated differently by other companies, and comparability may be limited.

The following tables reconcile net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for the three and six months ended June 30, 2017 and 2016 (dollars in thousands):
    Three Months Ended June 30, 2017
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
GAAP net income (loss)   $ 46,803     $ 10,976     $ (52,107 )   $ 5,672  
Income tax expense           7,234     7,234  
Non-operating (income) expense, including net interest expense   (1 )   133     34,288     34,420  
Local marketing agreement fees   2,713             2,713  
Depreciation and amortization   10,251     5,449     420     16,120  
Stock-based compensation expense           530     530  
Loss on sale of assets or stations   104             104  
Acquisition-related and restructuring costs       384     83     467  
Franchise and state taxes           140     140  
Adjusted EBITDA   $ 59,870     $ 16,942     $ (9,412 )   $ 67,400  

    Three Months Ended June 30, 2016
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
GAAP net income (loss)   $ 46,405     $ 887     $ (46,226 )   $ 1,066  
Income tax expense           1,249     1,249  
Non-operating expense, including net interest expense   17     63     34,270     34,350  
Local marketing agreement fees   2,482             2,482  
Depreciation and amortization   13,538     8,894     537     22,969  
Stock-based compensation expense           790     790  
Gain on sale of assets or stations   (3,121 )       (25 )   (3,146 )
Impairment of intangible assets       1,816         1,816  
Acquisition-related and restructuring costs       1,268     153     1,421  
Franchise and state taxes           183     183  
Adjusted EBITDA   $ 59,321     $ 12,928     $ (9,069 )   $ 63,180  

    Six Months Ended June 30, 2017
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
GAAP net income (loss)   $ 75,341     $ 13,241     $ (90,305 )   $ (1,723 )
Income tax expense           1,208     1,208  
Non-operating (income) expense, including net interest expense   (3 )   275     68,091     68,363  
Local marketing agreement fees   5,420             5,420  
Depreciation and amortization   20,655     10,903     844     32,402  
Stock-based compensation expense           1,068     1,068  
Gain on sale of assets or stations   (2,502 )           (2,502 )
Acquisition-related and restructuring costs       1,492     126     1,618  
Franchise and state taxes           279     279  
Adjusted EBITDA   $ 98,911     $ 25,911     $ (18,689 )   $ 106,133  

    Six Months Ended June 30, 2016
    Radio Station Group   Westwood One   Corporate and Other   Consolidated
GAAP net income (loss)   $ 71,144     $ (1,998 )   $ (82,509 )   $ (13,363 )
Income tax benefit           (7,884 )   (7,884 )
Non-operating expense, including net interest expense   16     166     67,844     68,026  
Local marketing agreement fees   7,870             7,870  
Depreciation and amortization   27,127     17,876     1,063     46,066  
Stock-based compensation expense           1,668     1,668  
Gain on sale of assets or stations   (3,116 )       (25 )   (3,141 )
Impairment of intangible assets       1,816         1,816  
Acquisition-related and restructuring costs       2,827     860     3,687  
Franchise and state taxes           369     369  
Adjusted EBITDA   $ 103,041     $ 20,687     $ (18,614 )   $ 105,114  
For further information, please contact:Cumulus Media Inc.Collin JonesInvestor Relationscollin@cumulus.com404-260-6600

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