Cumulus Reports Revenues Up For Q4 And Year 2010
Investor Call Presents Citadel Merger Details
March 14, 2011 at 6:15 AM (PT)
CUMULUS MEDIA has reported financial results for the three and twelve months ended DECEMBER 31st, 2010.
Net revenues for the three months ended DECEMBER 31st, 2010 increased $0.2 million, or 0.3%, to $69.8 million, compared to $69.6 million for the three months ended DECEMBER 31st, 2009. Cash revenue increased $3.8 million, or 6.2%, for the three months ending DECEMBER 31st, 2010, but was offset by a decrease in non-cash trade revenue of $3.6 million, or 45.6%, as compared to the three months ended DECEMBER 31st, 2009.
Station operating expenses for the three months ended DECEMBER 31st, 2010 decreased $5.0 million, or 11.4%, to $39.0 million, compared to $44.0 million for the three months ended DECEMBER 31st, 2009. This change is primarily attributable to a $3.4 million decrease in trade expense.
Net revenues for the year ended DECEMBER 31st, 2010 increased $7.3 million, or 2.8%, to $263.3 million, compared to $256.0 million for the year ended DECEMBER 31st, 2009, primarily due to an $8.6 million increase in national and political revenue, which was offset by a decrease of $1.3 million spread over the remainder of the revenue categories.
Station operating expenses for the year ended DECEMBER 31st, 2010 decreased $5.9 million, or 3.5%, to $159.8 million, compared to $165.7 million for the year ended DECEMBER 31st, 2009.
Chairman/CEO LEW DICKEY, "The previously announced transactions to acquire CITADEL MEDIA, as well our affiliate CUMULUS MEDIA PARTNERS, will uniquely position us to aggressively compete in the nascent recovery in the local ad markets. This recovery is beginning to take root as evidenced by our Q4 results which demonstrate strong cash revenue and Adjusted EBITDA growth. Our Q4 performance capped a year of exceptional growth in our Adjusted EBITDA and free cash flow, which enabled us to materially de-lever our balance sheet. We plan to continue de-leveraging both CMI and CMP as we anticipate closing the CITADEL transaction later this year with the attendant global refinancing into onebalance sheet."
Cumulus Media Partners And Citadel Broadcasting
The Company also commented on it's pending acquisition of CUMULUS MEDIA PARTNERS, writing "For the 12 months ended DECEMBER 3st, 2010, we recorded net revenues of approximately $4.0 million in management fees from CMP. As previously announced, the Company entered into a definitive agreement to acquire the remaining equity interests of CMP it does not currently own."
CUMULUS also commented on its pending acquisition of CITADEL BROADCASTING, writing "Also as previously announced, on MARCH 9th, 2011 the Company entered into a definitive merger agreement to purchase CITADEL BROADCASTING CORP., under which the Company would acquire all of the outstanding common stock and warrants of CITADEL at a price of $37 per share. CITADEL owns and operates 225 radio stations in over 50 markets and also operates the CITADEL MEDIA business, which is among the largest radio networks in the U.S.
"In connection with the acquisition of CITADEL BROADCASTING, the Company has obtained commitments for up to $500 million in equity financing and commitments for up to $2.525 billion in senior secured credit facilities and $500 million in senior note bridge financing, the proceeds of which shall pay the cash portion of the merger consideration, and effect a refinancing of the combined entity (the Company, CMP and CITADEL). Final terms of the debt financing will be set forth in definitive agreements relating to such indebtedness."
View Citadel Merger Presentation
During TODAY's conference call for investors, Chairman/Pres./CEO LEW DICKEY gave a Merger Presentation, which you can view here.