GlobeNewswire Inc | Feb 23, 2021 08:01AM EST

February 23, 2021

ATLANTA, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Cumulus Media Inc. (NASDAQ: CMLS) (the Company, "CUMULUS MEDIA," we, us, or our) today announced operating results for the three months and year ended December31, 2020.

Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, "Given 2020s extenuating circumstances, I am extremely proud of the Companys performance and the efforts of the entire Cumulus team to meet the challenges posed by COVID-19. In the face of the pandemic, we maximized revenue performance, materially reduced expenses, generated cash through strong working capital management, and executed highly accretive divestitures that strengthened our balance sheet. As a result of these efforts and with a recovering economy, we believe that we are well-positioned to return our business to its pre-pandemic trajectory and to capitalize on strategic and financial options to best drive shareholder returns.

2020 Key Highlights:

-- Improved quarterly revenue performance sequentially from Q2 to Q4, both in total and excluding political

-- Achieved 9.4% year-over-year digital revenue growth (12.1% on a same station basis), driven by podcasting growth of nearly 40%

-- Reduced year-over-year fixed and semi-variable costs by more than $90 million, including nearly $30 million of permanent actions with an annual run-rate benefit of more than $45 million

-- Generated $33.2 million of cash from operations for the full year

-- Completed two significant M&A transactions generating aggregate gross proceeds of $282 million

-- Paid down $54.3 million of term loan and retired $47.2 million of senior notes

-- Finished the year with $271.8 million of cash on hand (an increase of $256.6 million compared with December 31, 2019)

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

For thethree months endedDecember31, 2020, the Company reported net revenue of$245.9million, a decrease of 13.9%from thethree months endedDecember31, 2019, net loss of$0.2millionand Adjusted EBITDA of$39.6million.

For the three months endedDecember31, 2020, the Company reported same station net revenue of$245.9million, a decrease of 13.1%from the three months endedDecember31, 2019, and same station Adjusted EBITDA of$39.7million.

For theyear endedDecember31, 2020, the Company reported net revenue of$816.2million, a decrease of 26.7%from theyear endedDecember31, 2019, net loss of$59.7millionand Adjusted EBITDA of$81.3million.

For the year endedDecember31, 2020, the Company reported same station net revenue of$814.8 million, a decrease of 25.2%from the year endedDecember31, 2019, and same station Adjusted EBITDA of$82.2million, a decrease of 61.6%from the year endedDecember31, 2019.

Three Months Three Months %As Reported Ended Ended Change December 31, 2020 December 31, 2019Net revenue $ 245,897 $ 285,468 (13.9 ) %Net (loss) income $ (249 ) $ 1,621 N/AAdjusted EBITDA ^(1) $ 39,576 $ 50,662 (21.9 ) %Basic (loss) income per share $ (0.01 ) $ 0.08 N/ADiluted (loss) income per $ (0.01 ) $ 0.08 N/Ashare

Same Station ^(2) Three Months Ended Three Months Ended % Change December 31, 2020 December 31, 2019Net revenue $ 245,897 $ 283,005 (13.1 )%Adjusted EBITDA ^(1) $ 39,686 $ 51,827 (23.4 )%

As Reported Year Ended December Year Ended December % 31, 2020 31, 2019 ChangeNet revenue $ 816,218 $ 1,113,445 (26.7 ) %Net (loss) income $ (59,719 ) $ 61,257 N/AAdjusted EBITDA ^(1) $ 81,257 $ 212,988 (61.8 ) %Basic (loss) income $ (2.94 ) $ 3.04 N/Aper shareDiluted (loss) income $ (2.94 ) $ 3.02 N/Aper share

Same Station ^(2) Year Ended December 31, Year Ended December 31, % 2020 2019 ChangeNet revenue $ 814,772 $ 1,089,781 (25.2 ) %Adjusted EBITDA ^ $ 82,247 $ 214,358 (61.6 )(1) %

Revenue Detail Summary (dollars in thousands):

As Reported Three Months Ended Three Months Ended % Change December 31, 2020 December 31, 2019Broadcast radio revenue:Spot $ 128,111 $ 158,795 (19.3 )%Network 72,603 79,884 (9.1 )%Total broadcast 200,714 238,679 (15.9 )%radio revenueDigital 23,791 21,618 10.1 %Other 21,392 25,171 (15.0 )%Net revenue $ 245,897 $ 285,468 (13.9 )%

Same Station ^(2) Three Months Ended Three Months Ended % Change December 31, 2020 December 31, 2019Broadcast radio revenue:Spot $ 128,111 $ 156,910 (18.4 )%Network 72,603 79,884 (9.1 )%Total broadcast 200,714 236,794 (15.2 )%radio revenueDigital 23,791 21,384 11.3 %Other 21,392 24,827 (13.8 )%Net revenue $ 245,897 $ 283,005 (13.1 )%

As Reported Year Ended December Year Ended December % Change 31, 2020 31, 2019Broadcast radio revenue:Spot $ 431,225 $ 622,695 (30.7 )%Network 232,820 316,329 (26.4 )%Total broadcast radio 664,045 939,024 (29.3 )%revenueDigital 85,963 78,602 9.4 %Other 66,210 95,819 (30.9 )%Net revenue $ 816,218 $ 1,113,445 (26.7 )%

Same Station ^(2) Year Ended December Year Ended December % Change 31, 2020 31, 2019Broadcast radio revenue:Spot $ 430,130 $ 605,916 (29.0 )%Network 232,820 315,089 (26.1 )%Total broadcast radio 662,950 921,005 (28.0 )%revenueDigital 85,893 76,642 12.1 %Other 65,929 92,134 (28.4 )%Net revenue $ 814,772 $ 1,089,781 (25.2 )%

Balance Sheet Summary (dollars in thousands):

December 31, 2020 December 31, 2019Cash and cash equivalents $ 271,761 $ 15,142 Term loan due 2026 ^(3) $ 469,411 $ 523,688 6.75% Senior notes ^(3) $ 452,836 $ 500,000 2020 Revolving credit facility $ 60,000 $ ?

Year Ended December 31, Year Ended December 31, 2020 2019Capital expenditures $ 14,868 $ 29,469

Three Months Ended December Three Months Ended December 31, 2020 31, 2019Capital $ 5,309 $ 12,070 expenditures

Adjusted EBITDA is not a financial measure calculated or presented in(1) accordance with accounting principles generally accepted in the United States of America (?GAAP?). For additional information, see ?Non-GAAP Financial Measures.? Adjusted for all merger and acquisition activity occurring in 2019 and 2020 as if such activity had occurred as of January 1, 2019. Same Station(2) financial measures are not financial measures calculated or presented in accordance with GAAP. For additional information, see ?Non-GAAP Financial Measures.?(3) Excludes unamortized debt issuance costs.

Earnings Conference Call Details

The Company will host a conference call today at 8:30 AM ET to discuss its fourth quarter and full year 2020 operating results. A link to the webcast of the conference call will be available on the investor section of the Companys website (www.cumulusmedia.com/investors/). The conference call dial-in number for domestic callers is 833-614-1549 and international callers should dial 914-987-7288 for call access. If prompted, the conference ID number is 6284029. 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 Companys 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.

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. Any such forward-looking statements are not guarantees of future performance and 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 related to the implementation of our strategic operating plans, the evolving and uncertain nature of the COVID-19 pandemic and its impact on the Company, the media industry, and the economy in general and other risk factors described from time to time in our filings with the Securities and Exchange Commission. 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 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 a leading audio-first media and entertainment 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 415 owned-and-operated 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 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 visitwww.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 the 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 Refinanced Credit Agreement.

In determining Adjusted EBITDA, the Company excludes the following from net income: interest, taxes, depreciation, amortization, stock-based compensation expense, gain or loss on the exchange, sale or disposal of any assets or stations, early extinguishment of debt, local marketing agreement fees, expenses relating to acquisitions, divestitures, restructuring costs, reorganization items and non-cash impairments of assets, if any.

Because of the significant effect that the Companys material station acquisitions and dispositions have had on our results of operations, the Company also presentscertain financial information herein on a Same Station basis, both with and excluding the effect of political advertising in order to address the cyclical nature of the two-year election cycle. Same Station metrics are adjusted for material station acquisitions and dispositions as if these acquisitions and dispositions had occurred as of the beginning of the comparable period in the prior year, as indicated. Same station financial measures excluding the impact of political advertising are further adjusted to exclude the impact of political advertising in the comparable periods.

Management believes that Adjusted EBITDA and Same Station financial measures, with and excluding the impact of political advertising, although not measures that are calculated in accordance with GAAP, are commonly employed by the investment community as measures 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 and Same Station financial measures, with and excluding the impact of political advertising, are 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 the metrics to be extremely useful. We refer to Adjusted EBITDA and Same Station financial measures, with and excluding the impact of political advertising, 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 Companys 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 DepartmentIR@cumulus.com404-260-6600

Supplemental Financial Data and Reconciliations

CUMULUS MEDIA INC.Unaudited Condensed Consolidated Statements of Operations(Dollars in thousands)

Three Months Ended Year Ended December December December December 31, 2020 31, 2019 31, 2020 31, 2019Net revenue $ 245,897 $ 285,468 $ 816,218 $ 1,113,445 Operating expenses: Content costs 100,774 109,722 337,078 405,653 Selling, general &administrative 97,839 116,610 367,695 461,218 expensesDepreciation and 13,227 12,535 52,290 52,554 amortizationLocal marketing 112 1,117 3,149 3,500 agreement feesCorporate expenses 7,934 8,646 31,003 34,372 Stock-based 772 1,494 3,337 5,301 compensation expenseRestructuring costs 1,428 750 14,859 18,315 Loss (gain) on sale 1,248 509 8,761 (55,403 )of assets or stationsImpairment of assets ? 1,165 ? 6,165 held for saleImpairment ofcapitalized software 4,139 ? 4,139 ? development costsImpairment of ? 15,563 4,509 15,563 intangible assetsTotal operating 227,473 268,111 826,820 947,238 expensesOperating (loss) 18,424 17,357 (10,602 ) 166,207 incomeNon-operating expense:Interest expense (19,122 ) (16,816 ) (68,099 ) (82,916 )Interest income ? 5 6 25 Gain on earlyextinguishment of ? ? ? 381 debtOther expense, net (197 ) (133 ) (273 ) (177 )Total non-operating (19,319 ) (16,944 ) (68,366 ) (82,687 )expense, net(Loss) income before (895 ) 413 (78,968 ) 83,520 income taxesIncome tax benefit 646 1,208 19,249 (22,263 )(expense)Net (loss) income $ (249 ) $ 1,621 $ (59,719 ) $ 61,257

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):

Three Months Three MonthsAs Reported Ended Ended December 31, December 31, 2020 2019GAAP net (loss) income $ (249 ) $ 1,621 Income tax benefit (646 ) (1,208 )Non-operating expense, including net 19,319 16,944 interest expenseLocal marketing agreement fees 112 1,117 Depreciation and amortization 13,227 12,535 Stock-based compensation expense 772 1,494 Impairment of assets held for sale ? 1,165 Impairment of intangible assets ? 15,563 Loss (gain) on sale of assets or stations 1,248 509 Impairment of capitalized software 4,139 ? development costsRestructuring costs 1,428 750 Franchise taxes 226 172 Adjusted EBITDA $ 39,576 $ 50,662

Three Months Three MonthsSame Station ^(2) Ended Ended December 31, December 31, 2020 2019Net income $ 213 $ 2,865 Income tax benefit (646 ) (1,208 )Non-operating expense, including net 19,319 16,944 interest expenseLocal marketing agreement fees 112 1,117 Depreciation and amortization 13,216 12,502 Stock-based compensation expense 772 1,494 Impairment of assets held for sale ? 1,165 Impairment of intangible assets ? 15,563 Loss on sale of assets or stations 838 485 Impairment of capitalized software 4,139 ? development costsRestructuring costs 1,497 728 Franchise taxes 226 172 Adjusted EBITDA $ 39,686 $ 51,827

Year Ended Year EndedAs Reported December 31, December 31, 2020 2019GAAP net (loss) income $ (59,719 ) $ 61,257 Income tax (benefit) expense (19,249 ) 22,263 Non-operating expense, including net 68,366 83,068 interest expenseLocal marketing agreement fees 3,149 3,500 Depreciation and amortization 52,290 52,554 Stock-based compensation expense 3,337 5,301 Loss (gain) on sale of assets or stations 8,761 (55,403 )Impairment of assets held for sale ? 6,165 Impairment of capitalized software 4,139 ? development costsImpairment of intangible assets 4,509 15,563 Restructuring costs 14,859 18,315 Franchise taxes 815 786 Gain on early extinguishment of debt ? (381 )Adjusted EBITDA $ 81,257 $ 212,988

Year Ended Year EndedSame Station ^(2) December 31, December 31, 2020 2019Net (loss) income $ (57,160 ) $ 62,705 Income tax (benefit) expense (19,249 ) 22,263 Non-operating expense, including net 68,366 83,068 interest expenseLocal marketing agreement fees 3,149 3,500 Depreciation and amortization 52,232 52,522 Stock-based compensation expense 3,337 5,301 Loss (gain) on sale of assets or stations 7,270 (55,427 )Impairment of assets held for sale ? 6,165 Impairment of capitalized software 4,139 ? development costsImpairment of intangible assets 4,509 15,563 Restructuring costs 14,839 18,293 Franchise taxes 815 786 Gain on early extinguishment of debt ? (381 )Adjusted EBITDA $ 82,247 $ 214,358

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

Three Months Three Months Ended Ended December 31, December 31, 2020 2019As reported net revenue $ 245,897 $ 285,468 Station dispositions and swaps ? (2,463 )Same station net revenue $ 245,897 $ 283,005 Political revenue (14,306 ) (2,983 )Same station net revenue, excluding impact of $ 231,591 $ 280,022 political revenue

Three Months Three Months Ended Ended December 31, December 31, 2020 2019As reported Adjusted EBITDA $ 39,576 $ 50,662 Station dispositions and swaps 110 1,165 Same station Adjusted EBITDA $ 39,686 $ 51,827 Political EBITDA (12,875 ) (2,685 )Same station Adjusted EBITDA, excluding $ 26,811 $ 49,142 impact of political EBITDA

Year Ended Year Ended December 31, December 31, 2020 2019As reported net revenue $ 816,218 $ 1,113,445 Station dispositions and swaps (1,446 ) (23,664 )Same station net revenue $ 814,772 $ 1,089,781 Political revenue (26,256 ) (6,375 )Same station net revenue, excluding impact of $ 788,516 $ 1,083,406 political revenue

Year Ended Year Ended December 31, 2020 December 31, 2019As reported Adjusted EBITDA $ 81,257 $ 212,988 Station dispositions and swaps 990 1,370 Same station Adjusted EBITDA $ 82,247 $ 214,358 Political EBITDA (23,630 ) (5,738 )Same station Adjusted EBITDA, $ 58,617 $ 208,620 excluding impact of political EBITDA