Cumulus Revenue Up, Loss Narrows For First Quarter 2022, Rejects Warshaw Bid

Q1 Results

CUMULUS MEDIA first quarter 2022 total revenue rose 15% year-over-year to $232 million, and the company's net loss narrowed 95.9% to $905,000 (4 cents/share). Broadcast radio spot revenue rose 11.9% to $103.9 million, with network revenue up 5.2% to $65.3 million; digital revenue jumped 17.8% to $31.9 million. Adjusted EBITDA increased 249.5% to 31.2 million. With the financial release, the company also announced an up to $50 million stock buyback program, and in a letter to shareholders, rejected CONNOISSEUR MEDIA CEO JEFF WARSHAW's bid to buy the company for $15-$17 a share (NET NEWS 4/15), terming the bid as "significantly undervalu(ing) the Company and... not in the best interests of its shareholders."

Pres./CEO MARY G. BERNER said, "Our outstanding first quarter results once again demonstrate the positive impacts of our ‘audio-first’ strategy to transform the company from a one-dimensional radio broadcaster to a multi-dimensional audio media company. Following a strong 2021 performance, this quarter’s results underscore our ability to deliver value to our shareholders through sustained profitable top- and bottom-line growth and balance sheet de-levering. We delivered sequential revenue improvement for the fifth straight quarter versus the comparable 2019 quarter, grew EBITDA by 250% year-over-year, and generated continued strong cash from operations, which collectively allowed us to achieve the company’s lowest net leverage in over a decade.

"Given our best-among-peers balance sheet, strong financial momentum and the Company’s positive 2022 outlook, we expect ongoing cash flow generation that will support a meaningful return of capital to shareholders now and in the future. Accordingly, as a first step, today we are announcing a $50 million share repurchase program with a plan to commence share repurchases in the near-term. This capital return program is underpinned by our continued belief that the Company is significantly undervalued."

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