Citadel Reports Net Revenues Down 3% In Q1
May 11, 2011 at 5:24 AM (PT)
CITADEL BROADCASTING has reported certain results for the quarter ended MARCH 31st, 2011. On MARCH 10th, 2011, CITADEL BROADCASTING CORP. entered into a definitive merger agreement with CUMULUS MEDIA INC. under which CUMULUS will acquire CITADEL for $37.00 per share.
For the quarter ended MARCH 31st, 2011, consolidated net revenue was $160.0 million, a $5.0 million, or 3.0%, decrease from the same period in 2010. Compared to the first quarter of 2010, net revenue for radio stations for the first quarter of 2011 was down $1.8 million, or 1.3%, to $136.4 million and net revenue for the Radio Network was down $3.2 million, or 11.4%, to $24.9 million.
Consolidated SOI was $48.1 million, a $1.6 million, or 3.3%, decrease from the same period in 2010. SOI for radio stations increased $0.6 million, or 1.2%, to $47.0 million for the quarter ended MARCH 31st, 2011, compared to $46.4 million for the first quarter of 2010, while SOI for the Radio Network decreased $2.2 million, or 64.7%, to $1.2 million for the quarter ended MARCH 31st, 2011.
Free cash flow was $39.4 million for the first quarter of 2011 compared to $25.0 million for the first quarter of 2010, an increase of $14.3 million, or 57.3%. Free cash flow for the first quarter of 2011, adjusted as though interest had been paid on senior notes during the period (the first payment of which is not contractually due until JUNE 15th) would have been $29.7 million, an increase of $4.7 million, or 18.8% over free cash flow for the first quarter of 2010.
CEO FARID SULEMAN commented, "During the first quarter of 2011, the Company announced the signing of a definitive merger agreement with CUMULUS under which CUMULUS will acquire the Company for $37 per share in a combination of cash and CUMULUS stock. Also during the first quarter, the Company’s free cash flow, as adjusted, increased approximately 19% over the same period in the prior year. This increase in free cash flow was achieved in spite of the decline in SOI at the Radio Network as the Company continues to focus on the growth of its free cash flow. We are very grateful for the dedication and efforts of CITADEL's employees, who continue to remain focused on operations and the closing of the merger."