Cumulus Media Q3 Revenues Down 2%
November 14, 2011 at 3:54 PM (PT)
In the wake of its acquisition of CITADEL BROADCASTING as well as CUMULUS MEDIA PARTNERS (CMP), CUMULUS MEDIA reported that its pro forma revenues fell 1.9% in Q3 to $297 million. Excluding the impact of both acquisitions, Q3 revenues for the core CUMULUS MEDIA declined 0.6% to $67 million. The Q3 pro forma-adjusted EBITDA fell 8.4% to $98.4 million, while free cash flow dropped 24.4% to $43.3 million.
Nevertheless, Chairman/CEO LEW DICKEY expressed confidence on CUMULUS' future. "In third quarter, we closed two major acquisitions for a total of $3.1 billion," he said. "Acquiring both CMP and CITADEL was truly transformative for our company. We now own and operate approximately 570 stations in 120 cities in addition to a fully-distributed content network serving over 4500 affiliates nationwide. The attendant financings associated with these transactions enabled us to accretively increase our equity capital base six-fold while extending the maturities of our credit agreements. We now have a true national platform with a large and liquid market capitalization and a flexible, covenant-light debt complex that is designed to optimize free cash flow and de-risk the equity. Our team is making excellent progress on the CITADEL integration and is energized by the upside potential of our newly transformed platform."