ATLANTA, Feb. 27, 2024 (GLOBE NEWSWIRE) — Cumulus Media Inc. (NASDAQ:CMLS) (the “Company,” “Cumulus Media,” “we,” “us,” or “our”) today announced operating results for the three months and year ended December 31, 2023.
Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, “While 2023 was a tough year across the media landscape, we were able to offset some of the effects of the weak national advertising climate through strong execution in our key focus areas. Specifically, we grew our digital businesses, meaningfully reduced fixed costs, and improved our balance sheet. Looking ahead, though national advertisers are expressing interest in increasing their radio buys, as of yet, ad demand remains choppy, reducing our visibility into the rest of 2024. That said, our industry-leading performance during similarly weak macro environments gives us significant confidence in our ability to navigate through this one and rebound strongly when the advertising market improves.”
2023 Key Highlights:
Posted total net revenue of $844.5 million, a decline of 11.4% year-over-year, or 10.0% on an ex-political basis
Generated digital revenue of $146.4 million, an increase of 2.9% year-over-year – representing 17% of total revenue
Increased streaming revenue by 16% driven by audience growth from NFL streaming
Grew local digital marketing services 13% driven by the addition of new products and investment in our digital sales capabilities
Recorded net loss of $117.9 million compared to net income of $16.2 million in 2022 reflecting a 2023 pre-tax non-cash impairment charge of $65.3 million compared to a pre-tax non-cash impairment of $15.5 million in 2022, both primarily all reflecting FCC related charges
Recorded Adjusted EBITDA(1) of $90.7 million compared to $166.0 million in 2022
Generated cash to support debt paydown and share buybacks
Generated cash flow from operations of $31.7 million and completed accretive non-core asset sales of $17.8 million
Retired $43.6 million face value of debt at an average price of 77.4% of par, bringing total debt retired to $130.2 million, or 16.2% of total debt since the beginning of 2022
Repurchased $7.2 million of shares, bringing shares repurchased to $39.0 million, or 22.5% percent of shares outstanding since the beginning of 2022
Reported total debt of $675.8 million at December 31, 2023, and net debt(1) of $595.1 million
Received $14.8 million in cash proceeds from the closing of the previously announced sale of Broadcast Music, Inc.
Debt Exchange Offering
The Company is separately announcing an exchange offer for Cumulus Media New Holdings Inc.’s (the “Issuer”) outstanding 6.750% Senior Secured First-Lien Notes due 2026 for new 8.750% Senior Secured First-Lien Notes due 2029 (“New Notes”) to be issued by the Issuer. Concurrently, the Issuer is also offering lenders under the Issuer’s senior secured term loans (the “Old Term Loans”) borrowed under its credit agreement, dated as of September 26, 2019, the opportunity to exchange their Old Term Loans for new senior secured term loans (the “New Term Loans”) issued under a new credit agreement.
Operating Summary (dollars in thousands, except percentages and per share data):
For the three months ended December 31, 2023, the Company reported net revenue of $221.3 million, a decrease of 11.9% from the three months ended December 31, 2022, net loss of $98.1 million and Adjusted EBITDA of $22.8 million.
For the year ended December 31, 2023, the Company reported net revenue of $844.5 million, a decrease of 11.4% from the year ended December 31, 2022, net loss of $117.9 million and Adjusted EBITDA of $90.7 million.
As Reported
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
% Change
Net revenue
$
221,301
$
251,270
(11.9
)%
Net loss
$
(98,066
)
$
(54
)
181,503.7
%
Adjusted EBITDA
$
22,798
$
42,717
(46.6
)%
Basic loss per share
$
(5.94
)
$
(0.00
)
N/A
Diluted loss per share
$
(5.94
)
$
(0.00
)
N/A
As Reported
Year Ended
December 31, 2023
Year Ended
December 31, 2022
% Change
Net revenue
$
844,548
$
953,506
(11.4
)%
Net (loss) income
$
(117,879
)
$
16,235
N/A
Adjusted EBITDA
$
90,728
$
165,982
(45.3
)%
Basic (loss) income per share
$
(6.83
)
$
0.83
N/A
Diluted (loss) income per share
$
(6.83
)
$
0.81
N/A
Revenue Detail Summary (dollars in thousands):
As Reported
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
% Change
Broadcast radio revenue:
Spot
$
101,379
$
124,099
(18.3
)%
Network
52,148
63,525
(17.9
)%
Total broadcast radio revenue
153,527
187,624
(18.2
)%
Digital
39,583
37,708
5.0
%
Other
28,191
25,938
8.7
%
Net revenue
$
221,301
$
251,270
(11.9
)%
As Reported
Year Ended
December 31, 2023
Year Ended
December 31, 2022
% Change
Broadcast radio revenue:
Spot
$
412,047
$
479,834
(14.1
)%
Network
182,503
229,772
(20.6
)%
Total broadcast radio revenue
594,550
709,606
(16.2
)%
Digital
146,425
142,312
2.9
%
Other
103,573
101,588
2.0
%
Net revenue
$
844,548
$
953,506
(11.4
)%
Balance Sheet Summary (dollars in thousands):
December 31, 2023
December 31, 2022
Cash and cash equivalents
$
80,660
$
107,433
Term loan due 2026 (2)
$
329,510
$
338,452
6.75% Senior notes (2)
$
346,245
$
380,927
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