Cumulus Revenues Down, Loss Widens In First Quarter
May 5, 2016 at 2:06 PM (PT)
CUMULUS MEDIA INC. first-quarter net revenue fell 0.9% to $268.5 million; Adjusted EBITDA dropped 6.1% to $41.9 million, and net loss widened from $12 million to $14.4 million (loss of 6 cents/share). Radio station revenue rose 0.5% to $177 million, while WESTWOOD ONE was off 3.2% to $91.6 million. On a brighter side, Q1 EPS of -$0.06 beat analyst expectations by $0.03, and the revenue beat expectations by $6.52 million
In the conference call, CUMULUS CEO MARY BERNER noted radio's "strong results in MARCH' due to $3.2 million from Political, but it was offset by a $3 revenue million decline from WESTWOOD ONE. "The continued under-performance presents challenges that are fixable with time."
The company also announced that NASDAQ has approved (as of MAY 3rd) the move of CUMULUS Class A common stock from the NASDAQ Global Select Market to the NASDAQ Capital Market, giving it an additional 180 days to bring its stock price up above $1 and remain on the Capital Market; if the stock remains below a dollar and faces delisting, CUMULUS plans to evaluate alternatives including a reverse stock split.
“We are in the early stages of a multi-year turnaround,” CEO MARY BERNER said in the earnings release. “Our first quarter results and second quarter pacings are consistent with the considerable challenges we must overcome. However, we are seeing some signs of progress in each of our turnaround initiatives - enhancing operational blocking and tackling, instituting a strong and positive culture, and driving improved ratings.”
"Although we made meaningful progress, we remain relentlessly focused on operating strategies that will be better focused over time," she added during the conference call. "The challenges before us remain substantial. Our Q2 pacing is down mid-single digits. We expect to continue under-performance in markets. We expect radio down low to mid-single-digits but there will be less political on books. National was a bright spot, our performance was better than recent quarters. The national gains are a reaction from positive PPM changes in our deliver. Local was choppy, which was expected."
At WESTWOOD ONE, "We see continued difficulties, expect to be down high single-digits in Q2."