Cumulus Second Quarter Revenues, Income Take Big Hit From Pandemic

Down In Q2

CUMULUS MEDIA is the latest media company to report COVID-19-impacted revenue declines for second quarter 2020, recording a 47.8% decrease year-to-year to $146 million (same station down 46.6%). The company touted "significant fixed cost expense reductions" of almost $36 million as "meaningfully mitigat(ing)" the impact of the pandemic. Net income plummeted from a gain of $42.9 million to a loss of $6.4 million ($2.13 to -$1.79/basic and diluted share). Adjusted EBITDA also dropped from $61.8 million to a negative $6.4 million.

Broadcast station revenue was down 51.6% (50.6% on a same-station basis) to $114.2 million, with spot revenue down 55.6% and network revenue off 42.7%. Digital revenue was up 0.7% to $20.3 million.

The company also announced that it will be selling its towers and related assets for $213 million, and the ATLANTA BUSINESS CHRONICLE reports that the buyer is VERTICAL BRIDGE's VB NIMBUS LLC.

Pres./CEO MARY G. BERNER said, "Despite the COVID-19 pandemic’s material impact on revenue, the Company generated over $90 million of cash in the quarter through quick and decisive expense actions, strong working capital management and the completion of the sale of land in BETHESDA, MD. Ending the quarter with nearly $200 million of cash, we have also entered into an agreement to monetize our tower portfolio for more than $210 million, proceeds which will further add to our liquidity and contribute to significant incremental debt paydown. Our demonstrated ability to rise to a challenge, strong liquidity position and resilient balance sheet are critical assets as we operate through this uncertain environment, and we believe we remain very well-positioned to drive long-term shareholder value through continued aggressive debt reduction and the execution of our growth initiatives."

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