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Cumulus Media Reports Operating Results for the Third Quarter 2024

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Cumulus Media (NASDAQ: CMLS) reported Q3 2024 financial results with total net revenue of $203.6 million, down 1.8% year-over-year. The company's digital revenue grew 7.5% to $40.0 million, with digital marketing services increasing by 38%. However, the company recorded a net loss of $10.3 million compared to net income of $2.7 million in Q3 2023. Broadcast radio revenue declined 5.0% to $138.9 million, while digital revenue now represents 20% of total company revenue. The company generated $3.9 million in cash from operations and reported total debt of $673.0 million at quarter-end.

Cumulus Media (NASDAQ: CMLS) ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato netto totale di 203,6 milioni di dollari, in calo dell'1,8% rispetto all'anno precedente. I ricavi digitali dell'azienda sono cresciuti del 7,5% a 40,0 milioni di dollari, con i servizi di marketing digitale che sono aumentati del 38%. Tuttavia, l'azienda ha registrato una perdita netta di 10,3 milioni di dollari rispetto a un utile netto di 2,7 milioni di dollari nel terzo trimestre 2023. I ricavi della radiofonia tradizionale sono diminuiti del 5,0% a 138,9 milioni di dollari, mentre i ricavi digitali ora rappresentano il 20% del fatturato totale dell'azienda. L'azienda ha generato 3,9 milioni di dollari in contante dalle operazioni e ha riportato un debito totale di 673,0 milioni di dollari alla fine del trimestre.

Cumulus Media (NASDAQ: CMLS) reportó los resultados financieros del tercer trimestre de 2024 con unos ingresos netos totales de 203.6 millones de dólares, una disminución del 1.8% en comparación con el año anterior. Los ingresos digitales de la compañía crecieron un 7.5% a 40.0 millones de dólares, con un aumento del 38% en los servicios de marketing digital. Sin embargo, la compañía registró una pérdida neta de 10.3 millones de dólares en comparación con un ingreso neto de 2.7 millones de dólares en el tercer trimestre de 2023. Los ingresos de la radio convencional cayeron un 5.0% a 138.9 millones de dólares, mientras que los ingresos digitales ahora representan el 20% de los ingresos totales de la compañía. La compañía generó 3.9 millones de dólares en efectivo de las operaciones y reportó una deuda total de 673.0 millones de dólares al final del trimestre.

큐물루스 미디어 (NASDAQ: CMLS)는 2024년 3분기 재무 결과를 보고하며 총 순수익이 2억 3백 60만 달러로 작년 대비 1.8% 감소했다고 발표했습니다. 회사의 디지털 수익은 7.5% 증가하여 4천만 달러에 이르렀으며, 디지털 마케팅 서비스는 38% 증가했습니다. 그러나 회사는 2023년 3분기의 순이익 270만 달러에 비해 1천만 달러의 순손실을 기록했습니다. 방송 라디오 수익은 5.0% 감소하여 1억 3천8백90만 달러에 달했으며, 디지털 수익은 현재 회사 총 수익의 20%를 차지합니다. 회사는 운영을 통해 390만 달러의 현금을 생성했고 분기 말에 6억 7천3백만 달러의 총 부채를 보고했습니다.

Cumulus Media (NASDAQ: CMLS) a annoncé les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires net total de 203,6 millions de dollars, en baisse de 1,8 % par rapport à l'année précédente. Les revenus numériques de la société ont augmenté de 7,5 % pour atteindre 40,0 millions de dollars, les services de marketing numérique ayant progressé de 38 %. Cependant, la société a enregistré une perte nette de 10,3 millions de dollars par rapport à un bénéfice net de 2,7 millions de dollars au troisième trimestre 2023. Les revenus de la radio traditionnelle ont diminué de 5,0 % pour s'établir à 138,9 millions de dollars, tandis que les revenus numériques représentent désormais 20 % du chiffre d'affaires total de la société. L'entreprise a généré 3,9 millions de dollars de liquidités provenant de ses opérations et a déclaré une dette totale de 673,0 millions de dollars à la fin du trimestre.

Cumulus Media (NASDAQ: CMLS) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Gesamtumsatz von 203,6 Millionen US-Dollar, was einem Rückgang von 1,8 % im Vergleich zum Vorjahr entspricht. Die digitalen Einnahmen des Unternehmens stiegen um 7,5 % auf 40,0 Millionen US-Dollar, wobei die digitalen Marketingdienste um 38 % zulegten. Das Unternehmen verzeichnete jedoch einen Nettoverlust von 10,3 Millionen US-Dollar im Vergleich zu einem Nettoertrag von 2,7 Millionen US-Dollar im dritten Quartal 2023. Die Einnahmen aus Rundfunkradio sanken um 5,0 % auf 138,9 Millionen US-Dollar, während die digitalen Einnahmen jetzt 20 % des Gesamtertrags des Unternehmens ausmachen. Das Unternehmen erwirtschaftete 3,9 Millionen US-Dollar Bargeld aus dem operativen Geschäft und meldete zum Quartalsende eine Gesamtverschuldung von 673,0 Millionen US-Dollar.

Positive
  • Digital revenue increased 7.5% YoY to $40.0 million
  • Digital marketing services revenue grew 38%
  • Network radio revenue increased 5.5% to $42.6 million
  • 32% increase in radio-only customers adding digital marketing services
Negative
  • Net loss of $10.3 million compared to $2.7 million profit in Q3 2023
  • Total revenue declined 1.8% YoY to $203.6 million
  • Broadcast radio spot revenue decreased 9.0% to $96.4 million
  • Adjusted EBITDA decreased 10.7% to $24.1 million
  • Total debt stands at $673.0 million

Insights

The Q3 results reveal concerning trends for Cumulus Media. While digital revenue grew 7.5% to $40.0 million, core broadcast radio revenue declined 5.0%, leading to a net loss of $10.3 million compared to a profit last year. The company's debt position remains substantial at $673.0 million, with significant maturities approaching in 2026 and 2029.

The bright spot is digital marketing services growth of 38%, but this hasn't been enough to offset traditional radio weakness. The 9.0% decline in spot advertising revenue signals continued challenges in the core business. With Adjusted EBITDA falling 10.7% to $24.1 million and operating cash flow at just $3.9 million, the company's financial flexibility appears

The shifting media landscape continues to pressure Cumulus's traditional radio business model. While the company is making progress in digital transformation, with digital now representing 20% of total revenue, the pace of digital growth isn't sufficient to overcome legacy business declines. The 32% increase in radio customers adopting digital services shows promise in cross-selling initiatives.

The uncertain advertising environment and significant debt burden create substantial headwinds. Despite management's focus on cost control and digital growth, the company's market position remains challenged without a clear path to sustainable profitability.

Increased Digital Marketing Services Revenue by 38%, Total Digital Revenue by 8%

Reported Q3 Total Revenue of $204 Million, Down 1.8%, in Line with Pacing Guidance

ATLANTA, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Cumulus Media Inc. (NASDAQ: CMLS) (the "Company," "Cumulus Media," "we," "us," or "our") today announced operating results for the three and nine months ended September 30, 2024.

Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, "During the third quarter, we delivered revenue and EBITDA in-line with pacing commentary and analyst estimates. Given the market challenges, we maintained our focus on what we can control. Specifically, we continued investing to drive growth in our digital businesses, including in digital marketing services which increased revenue nearly 40% in the quarter; capitalizing on areas of improvement in national and political ad spending; maximizing operating cash flow; and improving operating leverage through ongoing expense reductions."

Berner continued, "Looking forward, the advertising environment remains uncertain. Nonetheless, Cumulus has a valuable set of assets with which to navigate that uncertainty including: profitable and fast-growing digital businesses; a vast national platform that can reach audiences whenever and wherever they choose to listen; extensive feet-on-the-street local sales capabilities which allow us to walk product through the door; premium programming with particular strength in sports and news/talk; an extensive untapped audio library; and a leadership team with a strong track record of expense management and disciplined stewardship of capital. As we continue to execute against our priorities, we see many paths for leveraging these assets to maximize the value they produce for our shareholders."

Q3 Key Highlights:

  • Posted total net revenue of $203.6 million, a decline of 1.8% year-over-year

  • Generated digital revenue of $40.0 million, up 7.5% year-over-year

    • Grew digital marketing services by 38% driven by an increase in new customers, improved customer retention and higher average order size
    • Increased number of radio-only customers who also bought digital marketing services by 32% year-over-year
    • Increased digital revenue to 20% of total company revenue
  • Recorded net loss of $10.3 million compared to net income of $2.7 million in Q3 2023 and Adjusted EBITDA(1) of $24.1 million compared to $26.9 million in Q3 2023

  • Generated $3.9 million of cash from operations

  • Reported total debt(2)(3) of $673.0 million, total debt at maturity(1)(2)(3) of $642.1 million, and net debt less total unamortized discount(1)(2)(3) of $590.0 million at September 30, 2024, including total debt due in 2026(3) of $23.9 million

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

For the three months ended September 30, 2024, the Company reported net revenue of $203.6 million, a decrease of 1.8% from the three months ended September 30, 2023, net loss of $10.3 million and Adjusted EBITDA of $24.1 million.

For the nine months ended September 30, 2024, the Company reported net revenue of $608.5 million, a decrease of 2.4% from the nine months ended September 30, 2023, net loss of $52.2 million and Adjusted EBITDA of $57.7 million.

As ReportedThree Months Ended September 30, 2024 Three Months Ended September 30, 2023 % Change
Net revenue$203,598  $207,419 (1.8)%
Net (loss) income$(10,321)  $2,722 N/A
Adjusted EBITDA$24,051  $26,925 (10.7)%
Basic (loss) income per share$(0.61)  $0.17 N/A
Diluted (loss) income per share$(0.61)  $0.16 N/A


As ReportedNine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 % Change
Net revenue$608,500  $623,247  (2.4)%
Net loss$(52,174)  $(19,813)  (163.3)%
Adjusted EBITDA$57,669  $67,930  (15.1)%
Basic loss per share$(3.10)  $(1.13)  (174.3)%
Diluted loss per share$(3.10)  $(1.13)  (174.3)%

Revenue Detail Summary (dollars in thousands):

As ReportedThree Months Ended September 30, 2024 Three Months Ended September 30, 2023 % Change
Broadcast radio revenue:     
Spot$96,397 $105,890 (9.0)%
Network 42,564  40,360 5.5%
Total broadcast radio revenue 138,961  146,250 (5.0)%
Digital 40,020  37,215 7.5%
Other 24,617  23,954 2.8%
Net revenue$203,598 $207,419 (1.8)%


As ReportedNine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 % Change
Broadcast radio revenue:     
Spot$288,776 $310,668 (7.0)%
Network 126,032  130,355 (3.3)%
Total broadcast radio revenue 414,808  441,023 (5.9)%
Digital 113,864  106,842 6.6%
Other 79,828  75,382 5.9%
Net revenue$608,500 $623,247 (2.4)%

Balance Sheet Summary (dollars in thousands):

  September 30, 2024 December 31, 2023
Cash and cash equivalents $52,154 $80,660
Term Loan due 2026 (3) $1,203 $329,510
Senior Notes due 2026 (3) $22,697 $346,245
Term Loan due 2029 (2) (3) $327,205 $
Senior Notes due 2029 (2) (3) $321,889 $


 Three Months Ended September 30, 2024 Three Months Ended September 30, 2023
Capital expenditures$3,328 $7,051


 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023
Capital expenditures$15,881 $21,026

(1) Adjusted EBITDA, total debt at maturity and net debt less total unamortized discount are not financial measures 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) The exchange offer was accounted for as a debt modification resulting in a prospective yield adjustment and the carrying value was not changed. The $33.1 million difference between the principal amounts exchanged and the resulting principal amounts will be amortized to interest expense (thereby reducing interest expense) over the life of the debt. As of September 30, 2024, $15.4 million and $15.5 million of unamortized difference for the Term Loan due 2029 and the Senior Notes due 2029, respectively, remain.

(3) Excludes any debt issuance costs.

Earnings Conference Call Details
The Company will host a conference call today at 8:30 AM ET to discuss its third quarter 2024 operating results. NetRoadshow (NRS) is the service provider for this call. They will require email address verification (one-time only) and will provide registration confirmation. To participate in the conference call, please register in advance using the link on the Company's investor relations website at www.cumulusmedia.com/investors. Upon completing registration, a calendar invitation will follow with call access details, including a unique PIN, and replay details.

To join by phone with operator-assisted dial-in, domestic callers should dial 833-470-1428 and international callers should dial 404-975-4839. If prompted, the participant access code is 535839. Please call five to ten minutes in advance to ensure that you are connected prior to the call.

The conference call will also be broadcast live in listen-only mode through a link on the Company’s investor relations website at www.cumulusmedia.com/investors. This link can also be used to access a recording of the call, which will be available shortly following its completion.

Please see an update to the Company’s investor presentation on the Company's investor relations website at www.cumulusmedia.com/investors, which may be referenced on the conference call. Unless otherwise specified, information contained in the investor presentation or on our website is not incorporated into this press release or other documents we file with, or furnish to, the SEC.

Forward-Looking Statements
Certain 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 our future operating, financial, and strategic performance and our plans and objectives. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements to differ from those contained in or implied by the forward-looking statements as a result of various factors. Such factors include, among others, risks and uncertainties related to the implementation of our strategic operating plans, the continued uncertain financial and economic conditions, the rapidly changing and competitive media industry, and the economy in general. We are subject to additional risks and uncertainties described in our quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the "Risk Factors," and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" sections contained therein. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control, and the unexpected occurrence or failure to occur of any such events or matters could cause our actual results, performance, financial condition or achievements to differ materially from those expressed or implied by such forward-looking statements. Cumulus Media assumes no responsibility to update any forward-looking statements, which are based upon expectations as of the date hereof, as a result of new information, future events or otherwise.

About Cumulus Media
Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 400 owned-and-operated radio stations across 84 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, Infinity Sports Network, AP News, the Academy of Country Music Awards, and many other world-class partners across more than 9,800 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. For more information visit www.cumulusmedia.com.

Non-GAAP Financial Measures

From 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. Consolidated adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") is a financial metric by which management and the chief operating decision maker allocate resources of the Company and analyze the performance of the Company as a whole. Management 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 the funding of our non-operating expenses including debt service and acquisitions. In addition, consolidated Adjusted EBITDA is a key metric for purposes of calculating and determining our compliance with certain covenants contained in our credit agreements.

In determining Adjusted EBITDA, we exclude the following from net (loss) income: interest, taxes, depreciation, amortization, stock-based compensation expense, gain or loss on the exchange, sale, or disposal of any assets or stations or early extinguishment of debt, restructuring costs, expenses relating to acquisitions and divestitures, non-routine legal expenses incurred in connection with certain litigation matters, and non-cash impairments of assets, if any.

Management believes that Adjusted EBITDA, with and excluding impact of political advertising, 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. Management has also observed that Adjusted EBITDA, with and excluding impact of political advertising, is routinely utilized to evaluate and negotiate the potential purchase price for media companies. Given the relevance to our overall value, management believes that investors consider these metrics to be extremely useful.

The Company presents revenue, excluding impact of political revenue. As a result of the cyclical nature of the electoral system and the seasonality of the related political revenue, management believes presenting net revenue, excluding impact of political revenue, provides useful information to investors about the Company’s revenue growth comparable from period to period.

The Company presents the non-GAAP financial measure total debt at maturity which is total debt principal, gross, less total unamortized debt discount. In addition, the Company presents the non-GAAP financial measure net debt less total unamortized discount which is total debt at maturity less cash and cash equivalents. Management believes that total debt at maturity and net debt less total unamortized discount are important measures to monitor leverage and evaluate the balance sheet.

We refer to Adjusted EBITDA, with and excluding the impact of political advertising, net revenue, excluding the impact of political revenue, total debt at maturity, and net debt less total unamortized discount as the "Non-GAAP Financial Measures." Non-GAAP Financial Measures should not be considered in isolation or as a substitute for net income, net revenue, 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, Non-GAAP Financial Measures may be defined or calculated differently by other companies and, therefore, comparability may be limited.

For further information, please contact:
Cumulus Media Inc.
Investor Relations Department
IR@cumulus.com
404-260-6600

Supplemental Financial Data and Reconciliations

Cumulus Media Inc.
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands)

  Three Months Ended September 30, Nine Months Ended September 30,
   2024   2023   2024   2023 
Net revenue $203,598  $207,419  $608,500  $623,247 
Operating expenses:        
Content costs  76,368   76,740   235,056   238,939 
Selling, general & administrative expenses  93,890   91,834   283,009   280,536 
Depreciation and amortization  14,721   13,950   44,270   43,780 
Corporate expenses  10,430   12,243   35,182   36,740 
Stock-based compensation expense  1,049   1,471   3,457   4,089 
Restructuring costs  357   2,212   4,475   13,219 
Debt exchange costs  98      16,369    
Loss (gain) on sale of assets or stations  6   (8,614)   60   (15,895) 
Total operating expenses  196,919   189,836   621,878   601,408 
Operating income (loss)  6,679   17,583   (13,378)   21,839 
Non-operating expense:        
Interest expense  (17,043)   (17,862)   (52,029)   (53,468) 
Interest income  34   634   526   1,715 
Gain on early extinguishment of debt     843   170   9,849 
Other (expense) income, net  (32)   (26)   14,774   (312) 
Total non-operating expense, net  (17,041)   (16,411)   (36,559)   (42,216) 
(Loss) income before income taxes  (10,362)   1,172   (49,937)   (20,377) 
Income tax benefit (expense)  41   1,550   (2,237)   564 
Net (loss) income $(10,321)  $2,722  $(52,174)  $(19,813) 

        

The following tables reconcile net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for the periods presented herein (dollars in thousands):        

As Reported Three Months Ended September 30, 2024 Three Months Ended September 30, 2023
GAAP net (loss) income $(10,321)  $2,722 
Income tax benefit  (41)   (1,550) 
Non-operating expense, including net interest expense  17,041   17,254 
Depreciation and amortization  14,721   13,950 
Stock-based compensation expense  1,049   1,471 
Loss (gain) on sale or disposal of assets or stations  6   (8,614) 
Gain on early extinguishment of debt     (843) 
Restructuring costs  357   2,212 
Debt exchange costs  98    
Non-routine legal expenses  960   122 
Franchise taxes  181   201 
Adjusted EBITDA $24,051  $26,925 


As Reported Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023
GAAP net loss $(52,174)  $(19,813) 
Income tax expense (benefit)  2,237   (564) 
Non-operating expense, including net interest expense  36,729   52,065 
Depreciation and amortization  44,270   43,780 
Stock-based compensation expense  3,457   4,089 
Loss (gain) on sale or disposal of assets or stations  60   (15,895) 
Gain on early extinguishment of debt  (170)   (9,849) 
Restructuring costs  4,475   13,219 
Debt exchange costs  16,369    
Non-routine legal expenses  1,848   298 
Franchise taxes  568   600 
Adjusted EBITDA $57,669  $67,930 

The following tables reconcile the as reported net revenue and as reported Adjusted EBITDA, both including and excluding the impact of political, for the periods presented herein (dollars in thousands):

  Three Months Ended September 30, 2024 Three Months Ended September 30, 2023
As reported net revenue $203,598  $207,419 
Political revenue  (4,379)   (826) 
As reported net revenue, excluding impact of political revenue $199,219  $206,593 


  Three Months Ended September 30, 2024 Three Months Ended September 30, 2023
As reported Adjusted EBITDA $24,051  $26,925 
Political EBITDA  (3,941)   (744) 
As reported Adjusted EBITDA, excluding impact of political EBITDA $20,110  $26,181 


  Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023
As reported net revenue $608,500  $623,247 
Political revenue  (8,487)   (1,733) 
As reported net revenue, excluding impact of political revenue $600,013  $621,514 


  Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023
As reported Adjusted EBITDA $57,669  $67,930 
Political EBITDA  (7,638)   (1,560) 
As reported Adjusted EBITDA, excluding impact of political EBITDA $50,031  $66,370 

The following table reconciles total debt principal, gross, the most directly comparable financial measure calculated and presented in accordance with GAAP, to total debt at maturity and net debt less total unamortized discount (dollars in thousands):

  As of September 30,
   2024   2023 
Total debt principal, gross $672,994  $675,755 
Less: Total unamortized discount  (30,877)    
Total debt at maturity  642,117   675,755 
Less: Cash and cash equivalents  (52,154)   (82,807) 
Net debt less total unamortized discount $589,963  $592,948 

FAQ

What was Cumulus Media's (CMLS) revenue in Q3 2024?

Cumulus Media reported total net revenue of $203.6 million in Q3 2024, representing a 1.8% decrease from Q3 2023.

How much did CMLS digital marketing services grow in Q3 2024?

Cumulus Media's digital marketing services revenue grew by 38% in Q3 2024, driven by new customers, improved retention, and higher average order size.

What was Cumulus Media's (CMLS) net income/loss for Q3 2024?

Cumulus Media reported a net loss of $10.3 million in Q3 2024, compared to a net income of $2.7 million in Q3 2023.

What percentage of CMLS total revenue came from digital in Q3 2024?

Digital revenue represented 20% of Cumulus Media's total company revenue in Q3 2024.

Cumulus Media Inc.

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