Cumulus Reports Q1 Financials With Integration Of WestwoodOne
April 30, 2014 at 5:07 AM (PT)
CUMULUS MEDIA has reported operating results for the three months ended MARCH 31st, 2014, and noted a first-quarter net loss of $9.27 million or $0.04 per share, compared to a loss of $8.99 million or $0.07 per share, previous year.
Chairman/CEO LEW DICKEY stated, "This quarter was marked by the accelerated integration of WESTWOODONE. We now expect to complete the two-year integration approximately three quarters ahead of time and will exceed the stated synergies by 5-10%."
The company reported, "On an actual basis, net revenues for the three months ended MARCH 31st, 2014 increased $74.2 million, or 34.1%, to $292.0 million, compared to $217.8 million for the three months ended MARCH 31st, 2013. The increase resulted from increases of $63.6 million, $5.2 million, $1.3 million and $4.1 million in broadcast advertising, digital advertising, political advertising and license fees and other revenue, respectively. These increases were primarily attributable to the addition of the operations of WESTWOODONE, which was acquired by the Company in DECEMBER 2013."
"On a pro forma basis, net revenues for the three months ended MARCH 31st, 2014 increased $10.5 million, or 3.7%, to $292.0 million, from $281.5 million for the three months ended MARCH 31st, 2013," the report continued. "The increase was due to $3.1 million in broadcast advertising revenue, of which $2.2 million was from a LMA in CHICAGO entered into in JANUARY 2014 (the "CHICAGO LMA"), offset by a $9.9 million decline in network spot sales and the loss of approximately $2.2 million of third-party-network station compensation. Broadcast advertising revenue growth also benefited from $13.0 million of reduced producer revenue shares at WESTWOODONE. Digital advertising increased $4.5 million due to revenue from our partnership with RDIO and revenue increases from our streaming and digital commerce initiatives. There was a $1.3 million increase in political advertising revenue; and a $1.6 million increase in affiliate license fees and other non ad-based revenue."
On the company conference call, DICKEY noted in response to a question from NOBLE FINANCIAL GROUP's MICHAEL A. KUPINSKI that the company sold its minority stake in the SAN FRANCISCO GIANTS for $13.5 million in the current quarter and is in the middle of the zoning process for the sale of the land underneath the studios of Talk KABC-A and Classic Rock KLOS/LOS ANGELES, saying that the sale "is clearly a 2014 event for us."