Cumulus Stays In The Black in 1Q

A Bit Of Growth In 1Q

CUMLUS MEDIA reported positive numbers, albeit barely positive, in its 1Q '08 report. Net revenues for 1Q increased from $72.4-$72.9 million, an increase of 0.7%, primarily due to increased local advertising partially offset by a decline in national advertising. Cash revenues for 1Q increased from $68.8-$69.7 million, an increase of 1.3% versus 1Q '07.

Station operating expenses decreased from $51.6 million to $51.1 million, a decrease of 1.0% from the first quarter of 2007. This decrease was primarily attributable to general expense decreases across our station platform.

Station operating income (defined as operating income before LMA fees, depreciation and amortization, non-cash stock compensation, costs associated with the pending merger and corporate general and administrative expenses) increased from $20.8 million to $21.8 million, an increase of 4.8% from the first quarter of 2007, for the reasons discussed above.

For the period JANUARY 1st, 2007 through MARCH 31st, 2007, net revenues for the three months ended MARCH 31, 2008 increased $1.0 million to $72.9 million, an increase of 1.4% from the same period in 2007. This increase is primarily due to increased local advertising partially offset by a decline in national advertising. Pro forma cash revenues for the 1Q increased from $68.3 million to $69.7 million, an increase of 2.0% versus the first quarter of 2007, for the reasons discussed above. Barter revenues for 1Q decreased 10.9%, from $3.6 million, versus 1Q '07. Pro forma station operating income increased $1.2 million, an increase of 5.4% from the same period in 2007 primarily due to increased cash revenues.

Revenue for 2Q '08 is currently pacing slightly down as compared to the 2Q '07. The Company expects station operating expenses will be down slightly when compared to the same period in 2007.

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