Cumulus Q1 Revenues Up, Income Flat, Buyback Set
May 10, 2006 at 6:08 AM (PT)
CUMULUS first quarter revenues rose 4.4% to $75.269 million, with adjusted EBITDA off 1.9% to $17.515 million, free cash flow off 4.4% at $10.585 million, and net income up from $823,000. to $857,000. (pre-share flat at 1 cent).
The company has also announced that its board has approved a modified "Dutch auction" to buy back up to 11.5 million Class A common shares for between $11. and $12.50/share. The stock to be repurchased is about 24.1% of the company's outstanding Class A shares. Dealer managers for the tender offer are BANC OF AMERICA SECURITIES LLC and UBS SECURITIES LLC, with MACKENZIE PARTNERS, INC. as the information agent. CUMULUS has a definitive agreement to buy back 4.5 million Class B shares and an option to buy another 500,000 shares from BANC OF AMERICA CAPITAL INVESTORS and BA CAPITAL CO.