Cumulus Media Inc. Announces Fourth Quarter and YTD 2000 Results; Q4 Same Station BCF Grows 70.3%; Q4 Pro Forma BCF Grows 30.9%.Business Editors ATLANTA--(BUSINESS WIRE)--March 15, 2001 Cumulus Media Cumulus Media, Inc. (also known as Cumulus Broadcasting) NASDAQ: CMLS is a large owner of radio stations in markets in the United States with 307 stations in 61 markets as of December 31, 2005. Inc.'s (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CMLS CMLS Central Minnesota Legal Services CMLS Chemical Movement in Layered Soils CMLS Centralized Mail List Services (GSA) CMLS Contractor Maintenance & Logistics Support ) fourth quarter financial results conference call will be later this morning, Thursday Thursday: see week. March 15, 2001 at 11:00 AM Eastern Time to review the Company's fourth quarter and calendar year financial results. The call will be open to the general public on a listen only basis. The dial in number is (801) 303-7410 for both international and domestic calls. Please call five to ten minutes in advance to ensure that you are connected prior to the presentation. Following its completion, a replay of the call can be accessed for seven business days by dialing (402) 220-1490. The access code for the replay is 1127. Cumulus Media Inc. (NASDAQ: CMLS) today reported results for the three and twelve month periods ended December December: see month. 31, 2000. The quarter ended December 31, 2000 was marked by meaningful cash flow improvement from the prior year due to the realization of operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. savings resulting from management actions taken in the 2nd half of the year. The quarter also ended with a consolidated and a newly staffed corporate management team in the new headquarters in Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. . Finally, the quarter was marked by additional non-recurring items, including $5.2 million in other income and $6.9 million in non-cash, non-recurring charges in connection with the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of goodwill and net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. on two non-broadcast assets. The gain and the charges are discussed below. Fourth Quarter, 2000 Operating Performance For the three months ended December 31, 2000 net revenues increased $1.8 million, or 3.2%, to $57.5 million compared to $55.7 million for the same period in 1999. Broadcast Cash Flow (defined as station operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (loss) before depreciation, amortization, LMA LMA left mentoanterior (position of fetus). fees, non-cash stock compensation expense and other non-recurring charges) increased $4.9 million, or 40.4%, to $17.2 million from $12.3 million for the same period in 1999. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (defined as operating income (loss) before depreciation, amortization, LMA fees, non-cash stock compensation expense and other non-recurring charges) increased $2.3 million, or 24.3% to $11.5 million from $9.2 million for the same period in 1999. This increase in EBITDA was achieved despite $2.8 million of non-recurring corporate overhead incurred during the quarter. After Tax Cash Flow ("ATCF ATCF After Tax Cash Flow ATCF Automated Tropical Cyclone Forecasting ATCF As The Crow Flies ATCF Automated Tropical Cyclone Forecast (meteorology) ATCF air traffic control facility ATCF Aero Touring Club de France ATCF Air Traffic Control Flight "), defined as Net Loss Attributable to Common Shareholders plus depreciation and amortization, plus or minus non-cash tax expense (benefits) and other non-cash or non-recurring items, was ($1.6) million, or ($0.05) per share for the three months ended December 31, 2000. This compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to ATCF of ($7.0) million, or ($0.22) per share for the three months ended December 31, 1999. Basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share was ($0.32) for the three months ended December 31, 2000. This compares favorably to a basic and diluted loss per share of ($0.43) for the three months ended December 31, 1999. On a same station basis, net revenues for the 160 stations in 30 markets operated for at least a full year increased $0.1 million, or 0.4%, to $33.5 million for the three months ended December 31, 2000, compared to net revenues of $33.4 million for the three-month period ended December 31, 1999. Same station Broadcast Cash Flow increased $4.5 million, or 70.3%, to $10.8 million for the three months ended December 31, 2000, compared to $6.3 million for the three months ended December 31, 1999. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, after all announced acquisitions and divestitures, net revenues for the 225 stations in 46 markets decreased $0.1 million, or 0.1%, to $57.1 million for the three months ended December 31, 2000, compared to net revenues of $57.2 million for the three-month period ended December 31, 1999. Pro forma Broadcast Cash Flow increased $4.2 million, or 30.9%, to $17.8 million for the three months ended December 31, 2000, compared to $13.6 million for the three months ended December 31, 1999. Performance for twelve months ended December 31, 2000 For the twelve months ended December 31, 2000, net revenues increased $45.9 million, or 25.5%, to $225.9 million, from $180.0 million for the twelve months ended December 31, 1999. Including a charge of $20.2 million to bad debt expense in the third quarter, Broadcast Cash Flow decreased $12.1 million, or 25.9%, to $34.6 million for the twelve months ended December 31, 2000, compared to $46.7 million for the twelve months ended December 31, 1999. As a result of the non-recurring charge discussed above, and non-recurring corporate overhead incurred in 2000, EBITDA decreased $22.2 million, or 57.5%, to $16.3 million for the twelve months ended December 31, 2000, compared to $38.5 million for the twelve months ended December 31, 1999. For the twelve months ended December 31, 2000, ATCF was ($29.4) million, or ($0.84) per share. This compares to ATCF of ($12.3) million, or ($0.50) per share for the twelve months ended December 31, 1999. Basic and diluted loss per share was ($0.49) for the twelve months ended December 31, 2000, compared to ($1.50) for the twelve months ended December 31, 1999. On a same station basis, net revenue for the 160 stations in 30 markets operated for at least a full year increased $2.1 million, or 1.7%, to $126.5 million for the twelve months ended December 31, 2000, when compared to net revenue of $124.4 million for the twelve month period ended December 31, 1999. Same station Broadcast Cash Flow decreased $2.5 million, or 7.8%, to $29.6 million for the twelve months ended December 31, 2000, compared to $32.1 million for the twelve months ended December 31, 1999. On a pro forma basis, after all announced acquisitions and divestitures, net revenue for the Company's 225 stations in 46 markets increased $4.6 million, or 2.2%, to $215.3 million for the twelve months ended December 31, 2000, compared to net revenues of $210.7 million for the twelve-month period ended December 31, 1999. Pro forma Broadcast Cash Flow decreased $1.8 million, or 3.2%, to $56.0 million for the twelve months ended December 31, 2000, compared to $57.8 million for the twelve months ended December 31, 1999. Cumulus cumulus: see cloud. Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Lew a. 1. Lukewarm; tepid. Dickey noted, "During the fourth quarter, we realized meaningful expense reductions across our entire platform as a direct result of actions taken in the second half of 2000. Cumulus' expense base is now beginning to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. more closely with that of our peers. This fiscal discipline will serve us well as we navigate (1) "Surfing the Web." To move from page to page on the Web. (2) To move through the menu structure in a software application. a particularly difficult advertising environment." Gain on Sale of Assets; Non-Recurring Charge for Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of Net Assets and Goodwill; The Company recorded $5.2 million of other income for the three months ended December 31, 2000. The largest component of this non-operating income was the non-recurring gain on the sale of assets in connection with Company's completion of the second phase of the asset exchange and sale with Clear Channel Communications Not to be confused with clear channel radio stations, which are AM radio stations with certain technical parameters. Clear Channel Communications (NYSE: CCU) is a media conglomerate company based in the United States. (NYSE NYSE See: New York Stock Exchange : CCU CCU abbr. 1. coronary care unit 2. critical care unit CCU critical care unit. CCU Critical care unit, see there ) on October 2, 2000. Also, in connection with a recoverability review of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of certain non-radio assets, the Company recorded a $6.9 million, non-recurring charge comprised of 1) a $5.1 million charge to write down the carrying value of certain long-lived assets related to the Company's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Broadcast Software International ("BSI BSI - British Standards Institute "); and 2) a $1.8 million charge to charge to write down the carrying value of certain long-lived assets related to the Company's wholly owned subsidiary the Advisory Board. The write-down of these non-radio assets underscores management's commitment to focus exclusively on radio operations. Executive Vice-President and Chief Financial Officer Marty Gausvik noted, " The fourth quarter was a critical transition period for our Company. After we successfully completed the majority of the Clear Channel transaction and the entire Connoisseur Communications acquisition without incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. any additional indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , the new management team turned its focus to operations, which will remain our focus throughout 2001. We achieved meaningful expense reductions during the fourth quarter, and we will continue to closely monitor our expense levels and strive for greater efficiencies across our platform." About Cumulus Media Inc. Giving effect to the completion of all pending acquisitions and divestitures, Cumulus Media will own and operate 225 radio stations in 46 mid-size and smaller U.S. media markets. The Company's headquarters are in Atlanta, GA, and its web site is www.cumulus.com. In addition, the Company owns and operates a multi-market radio network in the English-speaking Caribbean. For additional information regarding the Company contact Daniel O'Donnell Daniel or Danny O'Donnell may refer to
Certain statements within this release constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward looking statements are subject to numerous known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements in light of future decisions by the Company, and by market, economic, competitive, regulatory and technological developments beyond the Company's control. The words or phrases "guidance," "expect," "anticipate," "estimates" and "forecast" and similar words or expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or are forward-looking statements. Investors should examine the filings that are made with the SEC by the Company from time to time, which more fully describe the risks and uncertainties associated with Cumulus Media Inc.'s business. Except as otherwise stated in this news announcement, Cumulus Media Inc. does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
CUMULUS MEDIA INC.
Fourth Quarter 2000 Results
Three Months Ended Twelve Months Ended
December 31, 2000 December 31, 2000
2000 1999 2000 1999
---- ---- ---- ----
Historical:
Net Revenues $57,440 $55,669 $225,911 $180,019
Broadcast Cash Flow 17,242 12,279 34,575 46,691
BCF Margins 30.0% 22.1% 15.3% 25.9%
Markets Operated One Year
(30 Markets; 160 Stations):
Net Revenues $33,558 $33,435 $126,545 $124,450
Broadcast Cash Flow(i) 10,821 6,355 29,606 32,112
BCF Margins 32.2% 19.0% 23.4% 25.8%
Pro Forma (46 Markets; 225
Stations):
Net Revenues $57,121 $57,171 $215,297 $210,737
Broadcast Cash Flow(i) 17,818 13,607 55,986 57,815
BCF Margins 31.2% 23.8% 26.0% 27.4%
(i) Year to date totals exclude the impact
of one-time and non-recurring charges
CAPITALIZATION
December 31, 2000 December 31, 2000
Actual Pro Forma (1)
------ -------------
Cash and cash equivalents $10,979 $10,000
======= =======
Long-term debt, including
current maturities:
Term loan facility 125,000 125,000
Senior Subordinated Notes 160,000 160,000
Other 228 228
--- ---
Total long-term debt 285,228 285,228
------- -------
13.75% Series A Redeemable
Preferred Stock 117,530 117,530
12.00% Series B Redeemable
Preferred Stock 2,575 40,000
Total Stockholders' equity 470,651 470,651
-------- -------
Total capitalization $875,984 $913,409
======== ========
(1) Pro Forma for all remaining acquisitions and divestitures
CUMULUS MEDIA INC. Fourth Quarter 2000 Quarter Results
CUMULUS MEDIA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Three Twelve Twelve
Months Months Months Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2000 1999 2000 1999
---- ---- ---- ----
Gross broadcast
revenues $62,986 $60,128 $246,244 $194,940
Less: Agency
commissions (5,546) (4,459) (20,333) (14,921)
------- ------- -------- --------
Net broadcast
revenues 57,440 55,669 225,911 180,019
Station operating
expenses 40,198 43,390 191,336 133,328
------ ------ ------- -------
Broadcast Cash Flow 17,242 12,279 34,575 46,691
Corporate G&A expense 5,772 3,054 18,232 8,204
----- ----- ------ -----
EBITDA 11,470 9,225 16,343 38,487
Depreciation and
amortization 13,526 9,103 44,003 32,564
LMA fees 1,086 1,142 4,825 4,165
Restructuring and
other charges 6,930 0 16,226 0
----- ------ ------ --
Operating
income (loss) (10,072) (1,020) (48,711) 1,758
Other (income) expenses:
Interest expense 8,700 7,679 32,771 27,041
Interest income (622) (2,110) (6,716) (4,164)
Other (income)
expense, net (5,206) 132 (73,280) (627)
Income(loss) before
income taxes (12,944) (6,721) (1,486) (20,492)
Income tax expense
(benefit) (5,550) (2,253) 812 (6,870)
Net income (loss) (7,394) (4,468) (2,298) (13,622)
Preferred stock
dividend, accretion
of discount and
deemed dividend 3,893 9,545 14,875 23,790
Net income (loss)
attributable to
common (11,287) (14,013) (17,173) (37,412)
Basic and diluted loss
per common share:
Net income (loss)
attributable to
common (0.32) (0.43) (0.49) (1.50)
Weighted Average
Shares Common
Shares 35,166 32,581 35,139 24,938
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