GlobeNewswire Inc | Nov 3, 2021 04:01PM EDT

November 03, 2021

ATLANTA, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Cumulus Media Inc. (NASDAQ: CMLS) (the Company, "CUMULUS MEDIA," we, us, or our) today announced operating results for the nine months ended September30, 2021.

Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, "Our third quarter results exceeded expectations across the board, despite the ongoing impacts of COVID-19. This performance is yet another strong example of the continuing success of our evolution from a one-dimensional radio company to a multi-dimensional, audio-first media company. We see significant and continued upside potential and multiple drivers of shareholder value, which include additional radio market recovery, several fast-growing digital business lines, attractive free cash flow conversion, a strong balance sheet and liquidity profile, and substantial optionality regarding future capital allocation.

Key Highlights:

-- Released new investor presentation on September 20th highlighting the Companys strategic positioning and levers to drive future shareholder value the presentation (updated through 3Q) can be found on our website -- Delivered continued positive revenue trajectory across all ad channels Increased total revenue by 21% year-over-yearIncreased digital revenue by 67% year-over-year -- Further strengthened balance sheet through cash generation, M&A and debt forgiveness Generated $13 million of cash from operations and $34 million of gross proceeds from Nashville land saleFinished quarter with total cash balance of $153 millionReceived forgiveness of $20 million of PPP Loans (after quarter end)Reported total debt of $826 million as of September 30th and net debt of $673 million, an approximately 45% reduction since June 30, 2018 ($653 million pro forma for PPP Loan forgiveness) (1) -- Reiterating 2022 EBITDA guidance range of $175 - $200 million (2)Implied 2022 revenue of approximately $1.0+ billionMaintain expectation of more than $70 million of permanent fixed cost reductions vs. 2019



(1) Net debt is defined as total debt of $826 million less cash and cash equivalents of $153 million. Pro forma for PPP Loan forgiveness gives effect to the $20 million in PPP Loan forgiveness. June 30, 2018 was the first reporting period following the Company's emergence from bankruptcy.(2) With respect to our forward-looking guidance, no reconciliation between a non-GAAP measure to the closest corresponding GAAP measure is included because we are unable to quantify certain reconciling amounts that would be required to be included in the GAAP measure without unreasonable efforts such as certain non-operating expenses, income tax expense (benefit), stock-based compensation expense and restructuring costs, due to the high variability, unpredictability and low visibility with respect to the amounts. We also believe such reconciliations would imply a degree of precision that may be misleading to investors. The unavailable information could have a significant impact on the company's future financial results.

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

For thethree months endedSeptember30, 2021, the Company reported net revenue of$237.7 million, an increase of 21.0%from thethree months ended September30, 2020, net income of$27.4 million and Adjusted EBITDA of$45.8 million.

For thenine months endedSeptember30, 2021, the Company reported net revenue of$664.2 million, an increase of 16.5%from thenine months ended September30, 2020, net loss of$0.4 millionand Adjusted EBITDA of$91.6 million.

Three Months Three MonthsAs Reported Ended Ended % Change September 30, September 30, 2021 2020Net revenue $ 237,716 $ 196,385 21.0 %Net income (loss) $ 27,448 $ (15,803 ) N/A Adjusted EBITDA ^(^3^) $ 45,828 $ 20,331 125.4 %Basic income (loss) per share $ 1.34 $ (0.78 ) N/A Diluted income (loss) per $ 1.32 $ (0.78 ) N/A share

As Reported Nine Months Ended Nine Months Ended % Change September 30, 2021 September 30, 2020Net revenue $ 664,163 $ 570,321 16.5 %Net loss $ (360 ) $ (59,470 ) 99.4 %Adjusted EBITDA ^(^3^) $ 91,617 $ 41,681 119.8 %Basic loss per share $ (0.02 ) $ (2.93 ) 99.3 %Diluted loss per share $ (0.02 ) $ (2.93 ) 99.3 %

Revenue Detail Summary (dollars in thousands):

Three Months Three MonthsAs Reported Ended Ended % Change September 30, September 30, 2021 2020Broadcast radio revenue: Spot $ 122,004 $ 108,734 12.2 %Network 63,873 52,767 21.0 %Total broadcast radio 185,877 161,501 15.1 %revenueDigital 33,337 19,946 67.1 %Other 18,502 14,938 23.9 %Net revenue $ 237,716 $ 196,385 21.0 %

(3) 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 Measures.

Nine Months Ended Nine Months EndedAs Reported September 30, September 30, % Change 2021 2020Broadcast radio revenue: Spot $ 335,787 $ 303,113 10.8 %Network 181,249 160,217 13.1 %Total broadcast radio 517,036 463,330 11.6 %revenueDigital 91,837 62,173 47.7 %Other 55,290 44,818 23.4 %Net revenue $ 664,163 $ 570,321 16.5 %

Balance Sheet Summary (dollars in thousands):

September 30, 2021 December 31, 2020Cash and cash equivalents $ 152,917 $ 271,761 Term loan due 2026 ^(^4^) $ 356,240 $ 469,411 6.75% Senior notes ^(^4^) $ 449,695 $ 452,836 2020 Revolving credit facility $ ? $ 60,000 Payroll Protection Program loans $ 20,000 $ ?

Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020Capital expenditures $ 21,988 $ 9,559

(4) Excludes unamortized debt issuance costs.

Earnings Conference Call DetailsThe Company will host a conference call today at 4:30 PM ET to discuss its third quarter 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 624261. 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 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 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 412 owned-and-operated radio 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 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. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees. 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 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, we exclude the following from net income (loss): interest, taxes, depreciation, amortization, stock-based compensation expense, gain or loss on the exchange, sale, or disposal of any assets or stations, local marketing agreement fees, 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 the metric 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 Companys revenue growth comparable from period to period.

The Company presents the non-GAAP financial measure "net debt" which is total debt less cash and cash equivalents. Management believes that net debt is an important measure to monitor leverage and evaluate the balance sheet. We refer to Adjusted EBITDA, with and excluding the impact of political advertising, net revenue, excluding impact of political revenue, and net debt 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 Nine Months Ended September September September September 30, 30, 30, 30, 2021 2020 2021 2020Net revenue $ 237,716 $ 196,385 $ 664,163 $ 570,321 Operating expenses: Content costs 87,279 82,014 260,309 236,304 Selling, general & 93,213 86,323 276,375 269,856 administrative expensesDepreciation and 13,223 13,151 39,796 39,063 amortizationLocal marketing 373 984 1,062 3,037 agreement feesCorporate expenses 12,171 7,897 44,691 23,069 Stock-based 1,372 861 3,787 2,565 compensation expenseRestructuring costs 2,474 8,168 6,948 13,431 (Gain) loss on sale ordisposal of assets or (20,197 ) 1,930 (20,659 ) 7,513 stationsImpairment of ? ? ? 4,509 intangible assetsTotal operating 189,908 201,328 612,309 599,347 expensesOperating income (loss) 47,808 (4,943 ) 51,854 (29,026 )Non-operating expense: Interest expense (16,187 ) (15,930 ) (51,827 ) (48,977 )Other expense, net (505 ) (12 ) (330 ) (70 )Total non-operating (16,692 ) (15,942 ) (52,157 ) (49,047 )expense, netIncome (loss) before 31,116 (20,885 ) (303 ) (78,073 )income taxesIncome tax (expense) (3,668 ) 5,082 (57 ) 18,603 benefitNet income (loss) $ 27,448 $ (15,803 ) $ (360 ) $ (59,470 )

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 periods presented herein (dollars in thousands):

Three Months Three MonthsAs Reported Ended Ended September 30, September 30, 2021 2020GAAP net income (loss) $ 27,448 $ (15,803 )Income tax expense (benefit) 3,668 (5,082 )Non-operating expense, including net 16,692 15,942 interest expenseLocal marketing agreement fees 373 984 Depreciation and amortization 13,223 13,151 Stock-based compensation expense 1,372 861 (Gain) loss on sale or disposal of assets (20,197 ) 1,930 or stationsRestructuring costs 2,474 8,168 Non-routine legal expenses 589 ? Franchise taxes 186 180 Adjusted EBITDA $ 45,828 $ 20,331

Nine Months Nine MonthsAs Reported Ended Ended September 30, September 30, 2021 2020GAAP net loss $ (360 ) $ (59,470 )Income tax expense (benefit) 57 (18,603 )Non-operating expense, including net 52,157 49,047 interest expenseLocal marketing agreement fees 1,062 3,037 Depreciation and amortization 39,796 39,063 Stock-based compensation expense 3,787 2,565 Impairment of intangible assets ? 4,509 (Gain) loss on sale or disposal of assets (20,659 ) 7,513 or stationsRestructuring costs 6,948 13,431 Non-routine legal expenses 8,216 ? Franchise taxes 613 589 Adjusted EBITDA $ 91,617 $ 41,681

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 Three Months Ended Ended September 30, September 30, 2021 2020As reported net revenue $ 237,716 $ 196,385 Political revenue (943 ) (5,842 )As reported net revenue, excluding impact of $ 236,773 $ 190,543 political revenue

Three Months Three Months Ended Ended September 30, September 30, 2021 2020As reported Adjusted EBITDA $ 45,828 $ 20,331 Political EBITDA (849 ) (5,258 )As reported Adjusted EBITDA, excluding impact $ 44,979 $ 15,073 of political EBITDA

Nine Months Nine Months Ended Ended September 30, September 30, 2021 2020As reported net revenue $ 664,163 $ 570,321 Political revenue (3,265 ) (11,951 )As reported net revenue, excluding impact of $ 660,898 $ 558,370 political revenue

Nine Months Nine Months Ended Ended September 30, September 30, 2021 2020As reported Adjusted EBITDA $ 91,617 $ 41,681 Political EBITDA (2,939 ) (10,756 )As reported Adjusted EBITDA, excluding impact $ 88,678 $ 30,925 of political EBITDA