Cumulus Revenue Down, But Turns Profit
March 3, 2010 at 4:24 PM (PT)
CUMULUS reports that although net revenues for Q4 2009 decreased $5.5 million, or 7.3%, to $69.6 million, net income grew to $6.5 million or $0.16 per share, compared to a net loss of $393.7 million (or $9.55 per share (for the year-ago quarter). The Company also announced the appointment of JOSEPH P. HANNAN as SVP/Treasurer and CFO. He has been Interim CFO since JULY 1st, 2009.
The radio group attributed the revenue decline to "a $3.1 million decrease in political revenue and the impact the recent economic recession has had across our entire station platform and industry at large." As for the immediate future, "We believe that advertising revenue will not have any significant growth at least through the first quarter of 2010, with modest growth in certain categories throughout the remainder of 2010.
"Two areas of potentially strong growth for radio advertising in 2010 could be cyclical political advertising and automotive advertising fueled by a general recovery in that sector. However, despite recent indications of a return to a more normalized marketplace, specific projections remain extremely difficult to provide as traditional advertising buying patterns have been noticeably disrupted as a result of the recent economic recession."
Station operating expenses for Q4 decreased $4.3 million, or 8.9%, to $44.0 million from $48.3 million in 2008 primarily due to our cost containment initiatives implemented in previous quarters, such as employee reductions, continued scrutiny of operating expenses, and lower variable sales commissions paid.
Corporate expenses for the fourth quarter of 2009 increased by $0.2 million, or 4.1%, to $5.0 million from $4.8 million in 2008, primarily due to an increase in professional fees and ongoing restructuring charges.
Depreciation and amortization for the fourth quarter of 2009 decreased $0.3 million, or 11.4%, to $2.8 million from $3.1 million in 2008, primarily due to assets becoming fully depreciated coupled with a decrease in capital expenditures.
Non-cash stock compensation expense remained flat at $0.8 million for the fourth quarter of 2009 compared to 2008.