GlobeNewswire Inc | Aug 10, 2020 08:00AM EDT

August 10, 2020

ATLANTA, Aug. 10, 2020 (GLOBE NEWSWIRE) -- Cumulus Media Inc. (NASDAQ: CMLS) (the Company, "CUMULUS MEDIA," we, us, or our) today announced operating results for the three and six months ended June30, 2020.

Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, "Despite the COVID-19 pandemics material impact on revenue, the Company generated over $90 million of cash in the quarter through quick and decisive expense actions, strong working capital management and the completion of the sale of land in Bethesda, MD. Ending the quarter with nearly $200 million of cash, we have also entered into an agreement to monetize our tower portfolio for more than $210 million, proceeds which will further add to our liquidity and contribute to significant incremental debt paydown. Our demonstrated ability to rise to a challenge, strong liquidity position and resilient balance sheet are critical assets as we operate through this uncertain environment, and we believe we remain very well-positioned to drive long-term shareholder value through continued aggressive debt reduction and the execution of our growth initiatives."

Key Highlights:

-- Meaningfully mitigated pandemics Q2 impacts through significant fixed cost expense reductionsNearly $36 million realized in Q2Total reductions of more than $85 million expected in 2020

-- Delivered sequential monthly revenue and EBITDA improvement through the quarter Continued to deliver profitable growth in digitalPosted positive EBITDA in June

-- Substantially increased liquidity and strengthened balance sheet Grew cash balance to $197 million, up $91 million from Q1Achieved net debt reduction of approximately 10% since MarchGenerated $28 million of cash from operations and netted $66 million of additional cash from completion of the sale of land in Bethesda, MD in Q2Maintained balance sheet flexibility with no funded debt maturity prior to 2026 or financial maintenance covenants

-- Executed agreement to monetize tower portfolio and related assets for $213 million Expect funds from deal completion to permit substantial debt paydown and provide additional liquidityAnticipate first closing for 85% or more of proceeds in Q4

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

For thethree months endedJune30, 2020, the Company reported net revenue of$146.0 million, a decrease of 47.8%from thethree months endedJune30, 2019, net loss of$36.3 millionand Adjusted EBITDA of$(6.4) million.

For the three months endedJune30, 2020, the Company reported same station net revenue of$146.0 million, a decrease of 46.6%from the three months endedJune30, 2019, and same station Adjusted EBITDA of$(6.3) million.

For thesix months endedJune30, 2020, the Company reported net revenue of$373.9 million, a decrease of 31.7%from thesix months endedJune30, 2019, net loss of$43.7 millionand Adjusted EBITDA of$21.4 million.

For the six months endedJune30, 2020, the Company reported same station net revenue of$372.5 million, a decrease of 29.5%from the six months endedJune30, 2019, and same station Adjusted EBITDA of$22.2 million, a decrease of 78.3%from the six months endedJune30, 2019.

As Reported Three Months Ended Three Months Ended % June 30, 2020 June 30, 2019 ChangeNet revenue $ 146,022 $ 279,673 (47.8 ) %Net (loss) income $ (36,316 ) $ 42,861 N/AAdjusted EBITDA ^ $ (6,375 ) $ 61,819 N/A(1)Basic (loss) income $ (1.79 ) 2.13 N/Aper shareDiluted (loss) $ (1.79 ) 2.11 N/Aincome per share

Same Station ^ Three Months Ended June Three Months Ended June %(2) 30, 2020 30, 2019 ChangeNet revenue $ 146,012 $ 273,451 (46.6 ) %Adjusted $ (6,274 ) $ 62,496 N/AEBITDA ^(1)

As Reported Six Months Ended June Six Months Ended June % 30, 2020 30, 2019 ChangeNet revenue $ 373,936 $ 547,169 (31.7 ) %Net (loss) income $ (43,667 ) $ 43,312 N/AAdjusted EBITDA ^(1) $ 21,350 $ 103,623 (79.4 ) %Basic (loss) income $ (2.15 ) 2.16 N/Aper shareDiluted (loss) $ (2.15 ) 2.14 N/Aincome per share

Same Station ^ Six Months Ended June Six Months Ended June % Change(2) 30, 2020 30, 2019Net revenue $ 372,485 $ 528,511 (29.5 )%Adjusted EBITDA $ 22,155 $ 102,266 (78.3 )%^(1)

Revenue Detail Summary (dollars in thousands):

As Reported Three Months Ended Three Months Ended % June 30, 2020 June 30, 2019 Change Broadcast radio revenue: Spot $ 72,437 $ 163,111 (55.6 ) % Network 41,767 72,877 (42.7 ) %Total broadcast 114,204 235,988 (51.6 )radio revenue %Digital 20,341 20,208 0.7 %Other 11,477 23,477 (51.1 ) %Net revenue $ 146,022 $ 279,673 (47.8 ) %

Same Station ^(2) Three Months Ended Three Months Ended % June 30, 2020 June 30, 2019 Change Broadcast radio revenue: Spot $ 72,466 $ 158,741 (54.3 ) % Network 41,767 72,504 (42.4 ) %Total broadcast 114,233 231,245 (50.6 )radio revenue %Digital 20,341 19,636 3.6 %Other 11,438 22,570 (49.3 ) %Net revenue $ 146,012 $ 273,451 (46.6 ) %

As Reported Six Months Ended June Six Months Ended June % 30, 2020 30, 2019 Change Broadcast radio revenue: Spot $ 194,380 $ 302,690 (35.8 ) % Network 107,450 158,041 (32.0 ) %Total broadcast 301,830 460,731 (34.5 )radio revenue %Digital 42,227 37,049 14.0 %Other 29,879 49,389 (39.5 ) %Net revenue $ 373,936 $ 547,169 (31.7 ) %

Same Station ^(2) Six Months Ended June Six Months Ended June % 30, 2020 30, 2019 Change Broadcast radio revenue: Spot $ 193,280 $ 289,565 (33.3 ) % Network 107,450 156,800 (31.5 ) %Total broadcast 300,730 446,365 (32.6 )radio revenue %Digital 42,156 35,703 18.1 %Other 29,599 46,443 (36.3 ) %Net revenue $ 372,485 $ 528,511 (29.5 ) %

Balance Sheet Summary (dollars in thousands):

June 30, 2020 December 31, 2019Cash and cash equivalents $ 196,914 $ 15,142 Term loan due 2026 ^(3) $ 521,063 $ 523,688 6.75% Senior notes ^(3) $ 500,000 $ 500,000 2020 Revolving credit facility $ 60,000 $ ?

Six Months Ended June 30, Six Months Ended June 30, 2020 2019Capital $ 5,575 $ 10,715 expenditures

(1) Adjusted EBITDA is not a financial measure calculated or presented in accordance with GAAP. For additional information, see Non-GAAP Financial Measures.(2) 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 financial measures 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.(3) Excludes unamortized debt issuance costs.

Earnings Conference Call DetailsThe Company will host a conference call today at 8:30 AM EDT to discuss its second quarter 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 877-830-7699 for call access. If prompted, the conference ID number is 3379889. Please call five to ten minutes in advance to ensure that you are connected prior to the call.

Following completion of the call, a recording of the call can be accessed via a link at www.cumulusmedia.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 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 MEDIACUMULUS 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 424 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainmentprogramming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the Academy of Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America;and inspires listeners through its rapidly growing networkof original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with personal connections, local impact and national reachthrough on-air 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 eventexperiences. 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 determining Adjusted EBITDA, the Company excludes from net income items not related to core operations and those that are non-cash including: 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.

Adjusted EBITDA and Same Station financial measures, with and excluding the impact of political advertising, 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, Adjusted EBITDA and Same Station financial measures, both with and excluding the impact of political advertising, 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 Six Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019Net revenue $ 146,022 $ 279,673 $ 373,936 $ 547,169 Operating expenses: Content costs 65,725 93,844 154,291 197,596 Selling, general & 79,904 115,817 183,531 229,320 administrative expensesDepreciation and 13,122 13,545 25,912 28,135 amortizationLocal marketing 1,006 438 2,053 1,481 agreement feesCorporate expenses 7,003 8,545 15,172 17,077 Stock-based compensation 985 1,106 1,704 2,314 expenseRestructuring costs 2,343 13,024 5,263 15,801 Loss (gain) on sale of 3,767 (47,750 ) 5,583 (47,724 )assets or stationsImpairment of intangible 4,509 ? 4,509 ? assets Total operating 178,364 198,569 398,018 444,000 expenses Operating (loss) (32,342 ) 81,104 (24,082 ) 103,169 incomeNon-operating expense: Interest expense (15,888 ) (21,191 ) (33,047 ) (43,347 )Interest income 2 8 4 12 Gain on early ? ? ? 381 extinguishment of debtOther expense, net (61 ) (34 ) (64 ) (62 ) Total non-operating (15,947 ) (21,217 ) (33,107 ) (43,016 )expense, net (Loss) income before (48,289 ) 59,887 (57,189 ) 60,153 income taxesIncome tax benefit 11,973 (17,026 ) 13,522 (16,841 )(expense) Net (loss) income $ (36,316 ) $ 42,861 $ (43,667 ) $ 43,312



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 Three Months Ended June 30, 2020 June 30, 2019GAAP net (loss) income $ (36,316 ) $ 42,861 Income tax (benefit) expense (11,973 ) 17,026 Non-operating expense, including 15,947 21,217 net interest expenseLocal marketing agreement fees 1,006 438 Depreciation and amortization 13,122 13,545 Stock-based compensation expense 985 1,106 Loss (gain) on sale of assets or 3,767 (47,750 )stationsImpairment of intangible assets 4,509 ? Restructuring costs 2,343 13,024 Franchise taxes 235 352 Adjusted EBITDA $ (6,375 ) $ 61,819

Same Station ^(1) Three Months Ended Three Months Ended June 30, 2020 June 30, 2019Net (loss) income $ (36,454 ) $ 45,703 Income tax (benefit) expense (11,973 ) 17,026 Non-operating expense, including 15,947 21,217 net interest expenseLocal marketing agreement fees 1,006 438 Depreciation and amortization 13,108 13,471 Stock-based compensation expense 985 1,106 Loss (gain) on sale of assets or 4,076 (49,841 )stationsImpairment of intangible assets 4,509 ? Restructuring costs 2,287 13,024 Franchise taxes 235 352 Adjusted EBITDA $ (6,274 ) $ 62,496

As Reported Six Months Ended Six Months Ended June 30, 2020 June 30, 2019GAAP net loss $ (43,667 ) $ 43,312 Income tax (benefit) expense (13,522 ) 16,841 Non-operating expense, including 33,107 43,397 net interest expenseLocal marketing agreement fees 2,053 1,481 Depreciation and amortization 25,912 28,135 Stock-based compensation expense 1,704 2,314 Loss (gain) on sale of assets or 5,583 (47,724 )stationsImpairment of intangible assets 4,509 ? Restructuring costs 5,263 15,801 Franchise taxes 408 447 Gain on early extinguishment of ? (381 )debtAdjusted EBITDA $ 21,350 $ 103,623

Same Station ^(1) Six Months Ended Six Months Ended June 30, 2020 June 30, 2019Net (loss) income $ (41,706 ) $ 44,361 Income tax (benefit) expense (13,522 ) 16,841 Non-operating expense, including 33,107 43,397 net interest expenseLocal marketing agreement fees 2,053 1,481 Depreciation and amortization 25,738 27,828 Stock-based compensation expense 1,704 2,314 Loss (gain) on sale of assets or 4,690 (49,823 )stationsImpairment of intangible assets 4,509 ? Restructuring costs 5,174 15,801 Franchise taxes 408 447 Gain on early extinguishment of ? (381 )debtAdjusted EBITDA $ 22,155 $ 102,266

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 Ended Three Months Ended June 30, 2020 June 30, 2019As reported net revenue $ 146,022 $ 279,673 Station dispositions and swaps (10 ) (6,222 )Same station net revenue $ 146,012 $ 273,451 Political revenue (1,183 ) (810 )Same station net revenue,excluding impact of political $ 144,829 $ 272,641 revenue

Three Months Ended Three Months Ended June 30, 2020 June 30, 2019As reported Adjusted EBITDA $ (6,375 ) $ 61,819 Station dispositions and swaps 101 677 Same station Adjusted EBITDA $ (6,274 ) $ 62,496 Political EBITDA (1,065 ) (729 )Same station Adjusted EBITDA,excluding impact of political $ (7,339 ) $ 61,767 EBITDA

Six Months Ended Six Months Ended June 30, 2020 June 30, 2019As reported net revenue $ 373,936 $ 547,169 Station dispositions and swaps (1,451 ) (18,658 )Same station net revenue $ 372,485 $ 528,511 Political revenue (6,109 ) (1,693 )Same station net revenue, excluding $ 366,376 $ 526,818 impact of political revenue

Six Months Ended Six Months Ended June 30, 2020 June 30, 2019As reported Adjusted EBITDA $ 21,350 $ 103,623 Station dispositions and swaps 805 (1,357 )Same station Adjusted EBITDA $ 22,155 $ 102,266 Political EBITDA (5,498 ) (1,524 )Same station Adjusted EBITDA, $ 16,657 $ 100,742 excluding impact of political EBITDA