Cumulus Media Inc. Q2 Pro Forma Net Revenue Grows 5.0%; Q2 Pro Forma EBITDA Grows 19.5%.Business Editors ATLANTA--(BUSINESS WIRE)--July 25, 2002 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. (Nasdaq:CMLS CMLS Central Minnesota Legal Services CMLS Chemical Movement in Layered Soils CMLS Centralized Mail List Services (GSA) CMLS Contractor Maintenance & Logistics Support ) today reported financial results for the three and six month periods ended June June: see month. 30, 2002. Lew a. 1. Lukewarm; tepid. Dickey, Chairman, President and Chief Executive Officer, commented, "Cumulus cumulus: see cloud. is pleased to report strong revenue performance in Q2 2002 along with the Company's achievement of its seventh consecutive quarter of 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 growth and BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter margin improvement." Historical results are attached. Financial highlights (in thousands, except per share data and percentages) are as follows:
Three Months Ended Six Months Ended
June 30, % June 30, %
2002 2001 Change 2002 2001 Change
------- ------- ------ -------- ------- ------
As Reported:
Net Revenues $69,782 $55,072 26.7% $114,730 $99,660 15.1%
Station
operating
expenses 40,830 36,719 11.2% 74,270 72,131 3.0%
Broadcast
cash flow(1) 28,952 18,353 57.8% 40,460 27,529 47.0%
Broadcast cash
flow margin(2) 41.5% 33.3% 35.3% 27.6%
EBITDA(3) 25,521 14,684 73.8% 33,481 20,026 67.2%
Free cash
flow(4) 10,967 964 -- 12,494 (3,979) --
Free cash flow
per common
share $0.20 $0.03 -- $0.27 $(0.11) --
Same Station
Results:(5)
Net Revenue $56,915 $54,511 4.4% $101,245 $98,339 3.0%
Broadcast
cash flow(1) 22,882 19,003 20.4% 34,292 28,242 21.4%
Broadcast cash
flow margin(2) 40.2% 34.9% 33.9% 28.7%
Pro Forma
Results:(6)
Net Revenue $69,495 $66,160 5.0% $123,719 $118,632 4.3%
Broadcast cash
flow(1) 28,898 24,387 18.5% 44,243 37,012 19.5%
Broadcast cash
flow margin(2) 41.6% 36.9% 35.8% 31.2%
EBITDA(3) 25,467 21,305 19.5% 37,264 30,334 22.8%
EBITDA Margin(7) 36.6% 32.2% 30.1% 25.6%
(1) Broadcast cash flow is defined as operating income before
depreciation and amortization, LMA fees, corporate general and
administrative expenses, non-cash stock compensation and
restructuring and other charges.
(2) Broadcast cash flow margin is defined as broadcast cash flow as a
percentage of net revenues.
(3) EBITDA is defined as operating income before depreciation and
amortization, LMA fees, non-cash stock compensation and
restructuring and other charges.
(4) Free cash flow is defined as EBITDA less net interest expense,
dividends on the Series A Preferred Stock, income taxes paid and
capital expenditures.
(5) Same station results include the 220 stations in 46 markets
operated since January 1, 2001.
(6) Pro forma results include the results of all acquisitions and
dispositions entered into or consummated during the period as if
completed at the beginning of each period presented. As of June
30, 2002 the pro forma totals include the results of 243 stations
in 52 markets.
(7) EBITDA margin is EBITDA as a percentage of net revenues.
Results of Operations Three Months Ended June 30, 2002 Compared to Three Months Ended June 30, 2001 Net revenues for the second quarter of 2002 increased $14.7 million to $69.8 million, a 26.7% increase from the second quarter of 2001, primarily as a result of acquisitions completed in Q1 2002 combined with increases in local and national revenues over the prior year period. Station operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased $4.1 million to $40.8 million, an increase of 11.2% over the second quarter of 2001, primarily as a result of acquisitions completed in Q1 2002, offset by a 4.2% decrease in expenses associated with stations operated since January January: see month. 1, 2001. Broadcast cash flow (defined as 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. before depreciation and amortization, LMA LMA left mentoanterior (position of fetus). fees, corporate general and administrative expenses, non-cash stock compensation and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other charges) increased $10.6 million to $29.0 million, an increase of 57.8% from the second quarter of 2001, for the reasons discussed above. 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, which includes the results of all transactions completed during the period as if each were consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. at the beginning of the periods presented, net revenues for the second quarter of 2002 increased $3.3 million to $69.5 million, an increase of 5.0% from the second quarter of 2001. Pro forma broadcast cash flow (defined as operating income (loss) before depreciation, amortization, LMA fees, corporate general and administrative expense, non-cash stock compensation, restructuring and other charges; and excluding the results of Broadcast Software International) increased $4.5 million to $28.9 million, an increase of 18.5% from the second quarter of 2001. Pro forma broadcast cash flow margin (defined as pro forma broadcast cash flow as a percentage of pro forma net revenues) increased to 41.6% for the second quarter of 2002 from 36.9% for the second quarter of 2001. Six Months Ended June 30, 2002 Compared to Six Months Ended June 30, 2001 Net revenues for the six months ended June 30, 2002 increased $15.1 million to $114.7 million, a 15.1% increase from the same period in 2001, primarily as a result of acquisitions completed in Q1 2002 combined with increases in year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. local and national revenues over the prior year period. The increase in revenues was partially offset by decreases in trade revenue as the Company continues to de-emphasize de-em·pha·size tr.v. de-em·pha·sized, de-em·pha·siz·ing, de-em·pha·siz·es To decrease the emphasis on; minimize the importance of. de-em this revenue stream. Station operating expenses increased $2.1 million to $74.3 million, an increase of 3.0% over the same period in 2001, primarily as a result of acquisitions completed in Q1 2002, offset by a 4.5% decrease in expenses associated with stations operated since January 1, 2001. Broadcast cash flow (defined as operating income before depreciation and amortization, LMA fees, corporate general and administrative expenses, non-cash stock compensation and restructuring and other charges) increased $12.9 million to $40.5 million, an increase of 47.0% from the same period in 2001, for the reasons discussed above. On a pro forma basis, which includes the results of all transactions completed during the six month period as if each were consummated at the beginning of the periods presented, net revenues for the six months ended June 30, 2002 increased $5.1 million to $123.7 million, an increase of 4.3% from the same period in 2001. Pro forma broadcast cash flow (defined as operating income (loss) before depreciation, amortization, LMA fees, corporate general and administrative expense, non-cash stock compensation, restructuring and other charges; and excluding Broadcast Software International) increased $7.2 million to $44.2 million, an increase of 19.5% from the same period in 2001. Pro forma broadcast cash flow margin (defined as pro forma broadcast cash flow as a percentage of pro forma net revenues) increased to 35.8% for the six months ended June 30, 2002 from 31.2% for the six months ended June 30, 2001. Acquisitions and Dispositions On May 28, 2002 the Company signed an Asset Purchase Agreement with U.S. Broadcasting Limited Partnership to acquire the broadcasting and related assets of WDDO-AM, WDEN-AM, WMAC-AM, WAYS-FM The station that became known as FM99 and later 99 WAYS, Your Hit Music Station started out as WMAZ-FM. Albert Sanders and Bill Powell were the early leaders. Sanders headed up WMAZ-TV, and Powell managed WMAZ-AM and FM and WAYS-FM. , WDEN-FM, WPEZ-FM WPEZ-FM is a radio station in Macon, Georgia. The format is adult contemporary. In the beginning, the station was Z-108. In the early 2000s, the station swapped frequencies with B-93.7. also a Macon, Georgia radio station specializing in Top 40 music. , WMKS-FM and WMGB-FM serving the Macon Macon (mā`kən, mā`kŏn), city (1990 pop. 106,612), seat of Bibb co., central Ga., at the head of navigation on the Ocmulgee River; inc. 1823. , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. market (Arbitron Arbitron (NYSE: ARB) is a radio audience research company in the United States which collects listener data on radio audiences similar to that collected by Nielsen Media Research on television audiences. market rank #152). The aggregate purchase price for these assets is approximately $35.5 million, of which $34.0 million will be funded in cash and $1.5 million will be funded in shares of Cumulus' Class A Common Stock. U.S. Broadcasting's market-leading Macon cluster is expected to be accretive in 2002 and will strengthen Cumulus' position in the southeastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . On May 14, 2002, the Company signed an Asset Purchase Agreement with Baldwin Baldwin, cities, United States Baldwin. 1 Uninc. city (1990 pop. 22,719), Nassau co., SE N.Y., on the south shore of Long Island, on Baldwin Bay; settled 1640s. A fishing center and summer resort, it has varied manufactures. Broadcasting Company Noun 1. broadcasting company - a company that manages tv or radio stations company - an institution created to conduct business; "he only invests in large well-established companies"; "he started the company in his garage" to acquire the broadcasting and related assets of its fourth FM station in the market, WAVH-FM, serving the Mobile, Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). market (Arbitron market rank #92). The aggregate purchase price for these assets is approximately $5.1 million. The Company also commenced operation of the station on June 1, 2002, under the terms of a local marketing agreement. On May 10, 2002 the Company completed the purchase of 5 radio stations Columbus-Starkville, MS, from Charisma An earlier presentation graphics program for Windows from Micrografx that included a comprehensive media manager for managing large libraries of image, sound and video clips. Broadcasting Co., for approximately $4.1 million in cash. On May 6, 2002 the Company signed a Purchase Agreement with Wilks Broadcasting, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and Wilks License Co., LLC to acquire the broadcasting and related assets of WSGW-AM, WGER-FM, WTCF-FM, WCEN-FM WCEN-FM (94.5 FM, "The Moose") is a radio station broadcasting a country music format. WCEN has been licensed in Hemlock, Michigan since 2001. It first began broadcasting in 1959 and was originally licensed in Mount Pleasant, Michigan. Sources
On April 23, 2002, the Company completed the sale of its stations in Columbus, Georgia Columbus is a city in Muscogee County, Georgia, United States. It is the primary city of the Columbus, Georgia Metropolitan Statistical Area, an MSA which encompasses all of Columbus, Georgia, Chattahoochee, Harris, Marion, and Muscogee counties, Georgia, and Russell County, to 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. and subsidiaries ("CCU CCU abbr. 1. coronary care unit 2. critical care unit CCU critical care unit. CCU Critical care unit, see there "), which CCU has operated under an LMA agreement since October October: see month. 2000. As of the closing date, the Company received $4.1 million in cash as final payment on this transaction. The tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. of these stations had been conveyed to CCU in a preliminary closing that occurred on October 2, 2000. Business Outlook The following statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , and actual results may differ materially. See "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. " below. Cumulus Media Inc. undertakes no obligation to update these statements. For the third quarter of 2002, the Company expects pro forma net revenues to increase between 4% and 5%, and EBITDA to increase between 13% and 15% over respective pro forma results from the third quarter 2001. Public Offering of Class A Common Stock On May 22, 2002, the Company completed the offering of 11,500,000 shares of its Class A Common Stock. Of the 11,500,000 shares, 10,549,448 shares were offered by the Company and 950,552 shares were offered by certain shareholders of the Company. The Company raised $199.2 million in aggregate net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). , of which it intends to use $55.6 million for the previously announced acquisition of stations in Saginaw, Michigan from Wilks Broadcasting, $34.0 million for the acquisition of stations in Macon, Georgia from U.S. Broadcasting Limited Partnership and the balance for general corporate purposes, which could include the repayment of 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 redemption of the Series A Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. or to fund potential future acquisitions. Cumulus did not receive any proceeds from the sale of shares by the selling shareholders. Adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142 On January 1, 2002, the Company adopted SFAS No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ", which eliminates the annual amortization of goodwill and certain long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. assets with indefinite INDEFINITE. That which is undefined; uncertain. INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure. 2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those lives. The Company has determined that its FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. broadcast licenses meet the criteria criteria (krītēr´ē  ),n. of indefinite lived intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. as set forth in SFAS No. 142. The elimination of amortization of FCC broadcast licenses and goodwill will decrease amortization expense and increase reported earnings in 2002, by approximately $32.0 million annually. Amortization expense for the six months ended June 30, 2002 was approximately $0.7 million as compared with $17.1 million in the same period last year. Assuming SFAS No. 142 was in effect at the beginning of 2001, the net loss before cumulative effect of change in accounting principle would have been $6.3 million, or $0.42 per share, for the six months ended June 30, 2001. In connection with the transitional goodwill 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. evaluation required to be completed by SFAS No.142, the Company completed its assessment during the second quarter of 2002 and has determined that there is no indication that a goodwill impairment exists. As previously announced, the Company recognized an impairment charge in the first quarter of 2002 of $41.7 million, net of tax, related to the Company's evaluation of its FCC broadcast licenses. This non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. was reflected as a Cumulative Effect of a Change in Accounting Principle and will not limit the Company's ability to generate future cash flows. Also as previously announced, in connection with the Company's adoption of SFAS No. 142 and the related suspension of amortization of broadcast licenses for book purposes, the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of the Company's deferred tax liabilities relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc those intangible assets will no longer be assured within its net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carry-forward See Loss Carry-Back. period. Accordingly, the Company recorded a $57.9 million non-cash charge to income tax expense effective January 1, 2002 to establish a valuation allowance against the Company's deferred tax assets. Forward-Looking Statements Statements in this release, including statements relating to the integration of acquisitions and any earnings or revenue projections, are "forward-looking" statements, which are statements that relate to Cumulus Media Inc.'s future plans, revenues, broadcast cash flows, earnings, objectives, expectations, performance, and similar projections, as well as any facts or assumptions underlying these statements or projections. Actual results may differ materially from the results expressed or implied in these forward-looking statements, due to various risks, uncertainties or other factors. These factors include competition within the radio broadcasting The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry, advertising demand in our markets, the possibility that advertisers may cancel (character) Cancel - (CAN, Control-X) ASCII character 24. or postpone post·pone tr.v. post·poned, post·pon·ing, post·pones 1. To delay until a future time; put off. See Synonyms at defer1. 2. To place after in importance; subordinate. schedules in response to political events, competition for audience share, our success in executing and integrating acquisitions, our ability to generate sufficient cash flow to meet our debt service obligations and finance operations The execution of the joint finance mission to provide financial advice and guidance, support of the procurement process, providing pay support, and providing disbursing support.See also financial management. , and other risk factors described from time to time in Cumulus Media Inc.'s filings with the Securities and Exchange Commission, including Cumulus Media Inc.'s Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2001. Cumulus Media Inc. assumes no responsibility to update the forward-looking statements contained in this release as a result of new information, future events or otherwise. Cumulus Media Inc. is the second largest radio company in the United States based on station count. Giving effect to the completion of all announced pending acquisitions and divestitures, Cumulus Media Inc. will own and operate 260 radio stations in 54 mid-size and smaller U.S. media markets. The Company's headquarters are 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. , GA, and its web site is www.cumulus.com. Cumulus Media Inc. shares are traded on the NASDAQ under the symbol: CMLS. Cumulus Media Inc. will host a teleconference later today at 11:00 a.m. Eastern Time to discuss second quarter results. To access this teleconference live, please visit the company's web site at www.cumulus.com or dial (888) 625-1618 for domestic calls and (312) 470-7418 for international callers. The pass code for the call is CUMULUS. Approximately two hours after completion of the call, a replay can be accessed until 11:59 PM August 1, 2002. Domestic callers can access the replay by dialing (800) 925-2964. International callers may access the replay by dialing (402) 220-4125.
CUMULUS MEDIA INC.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2002 2001 2002 2001
--------- --------- --------- ---------
Revenues $ 77,244 $ 60,966 $ 126,759 $ 109,931
Less: agency
commission (7,462) (5,894) (12,029) (10,271)
--------- --------- --------- ---------
Net revenues 69,782 55,072 114,730 99,660
Operating expenses:
Station operating
expenses, excluding
depreciation
amortization and
LMA fees 40,830 36,719 74,270 72,131
Depreciation and
amortization 4,748 12,081 8,920 24,365
LMA fees 172 1,154 257 2,168
Corporate general and
administrative
(excluding non-cash
stock compensation
expense) 3,431 3,669 6,979 7,503
Non-cash stock
compensation (105) -- 57 --
Restructuring and other
charges -- (33) -- (33)
--------- --------- --------- ---------
Total operating
expenses 49,076 53,590 90,483 106,134
--------- --------- --------- ---------
Operating income
(loss) 20,706 1,482 24,247 (6,474)
--------- --------- --------- ---------
Nonoperating income
(expense):
Interest expense (8,325) (7,754) (15,351) (15,721)
Interest income 374 1,121 624 1,698
Loss on early
extinguishments of
debt -- -- (6,291) --
Other income (expense),
net 2,674 (8,850) 1,480 7,398
--------- --------- --------- ---------
Total nonoperating
(expenses) income,
net (5,277) (15,483) (19,538) (6,625)
--------- --------- --------- ---------
Income (loss) before
income taxes 15,429 (14,001) 4,709 (13,099)
Income tax benefit
(expense) (5,386) 1,932 (67,790) 1,644
--------- --------- --------- ---------
Income (loss) before
the cumulative effect
of a change in
accounting principle,
net of tax 10,043 (12,069) (63,081) (11,455)
Cumulative effect of a
change in accounting
principle, net of tax -- -- (41,700) --
--------- --------- --------- ---------
Net income (loss) 10,043 (12,069) (104,781) (11,455)
Preferred stock dividends
and accretion of discount 4,623 4,387 9,245 8,476
--------- --------- --------- ---------
Net income (loss)
attributable to common
stockholders $ 5,420 $ (16,456) $(114,026) $ (19,931)
========= ========= ========= =========
Basis income (loss)
per common share
Income (loss) per common
share before the
cumulative effect of
a change in accounting
principle $ 0.10 $ (0.47) $ (1.56) $ (0.57)
Cumulative effect of
a change in
accounting principle -- -- (0.90) --
--------- --------- --------- ---------
Income (loss) per
common share $ 0.10 $ (0.47) $ (2.46) $ (0.57)
========= ========= ========= =========
Diluted income (loss)
per common share
Income (loss) per common
share before the
cumulative effect
of a change in
accounting principle $ 0.09 $ (0.47) $ (1.56) $ (0.57)
Cumulative effect
of a change in
accounting principle -- -- (0.90) --
--------- --------- --------- ---------
Income (loss) per common
share $ 0.09 $ (0.47) $ (2.46) $ (0.57)
========= ========= ========= =========
Weighted average basic
common shares
outstanding 56,067 35,215 46,278 35,210
========= ========= ========= =========
Weighted average
diluted common shares
outstanding 59,297 35,215 46,278 35,210
========= ========= ========= =========
Cumulus Media Inc.
Reconciliation between Historical GAAP Results
And Pro Forma Results for the Three Months Ended
June 30, 2002
(dollars in thousands)
Historical Pro Forma
GAAP Adjustments Results
-------- ----------- ---------
Net Revenue $ 69,782 $ (287)(1) $ 69,495
Station Operating Expenses $ 40,830 $ (233)(2) $ 40,597
BCF $ 28,952 $ (54) $ 28,898
Corporate Overhead $ 3,431 -- $ 3,431
EBITDA $ 25,521 $ (54) $ 25,467
(1) Reflects the elimination of revenues from Broadcast Software
International ($287)
(2) Reflects the elimination of operating expenses from divested
businesses ($24) and expenses of Broadcast Software International
($209)
Cumulus Media Inc.
Reconciliation between Historical GAAP Results
And Pro Forma Results for the Six Months Ended
June 30, 2002
(dollars in thousands)
Historical Pro Forma
GAAP Adjustments Results
-------- ----------- ---------
Net Revenue $114,730 $ 8,989(3) $123,719
Station Operating Expenses $ 74,270 $ 5,206(4) $ 79,476
BCF $ 40,460 $ 3,783 $ 44,243
Corporate Overhead $ 6,979 -- $ 6,979
EBITDA $ 33,481 $ 3,783 $ 37,264
(3) Reflects the addition of revenue related to acquisitions completed
in Q1 2002 ($9,501), offset by the elimination of revenues from
Broadcast Software International ($512).
(4) Reflects the addition of expenses related to acquisitions
completed in Q1 2002 ($5,718), offset by the elimination of
operating expenses from divested businesses ($27) and expenses of
Broadcast Software International ($485).
CAPITALIZATION
(dollars in thousands)
June 30, 2002 June 30, 2002
Actual Pro Forma(1)
---------- ----------
Cash and cash equivalents $209,465 $90,803
========== ==========
Long-term debt, including current
maturities:
Bank Debt and Other Secured Debt 287,500 287,500
Senior Subordinated Notes 160,000 160,000
Other 193 193
---------- ----------
Total long-term debt 447,693 447,693
---------- ----------
13.75% Series A Redeemable Preferred
Stock 134,489 119,730
Total Stockholders' equity 721,837 721,837
---------- ----------
Total capitalization $1,304,019 $1,289,260
========== ==========
(1) Pro forma for the completion of all pending acquisitions and
dispositions, excluding the stock portion of the Macon, Georgia
purchase price, and the July 2002 redemption of 14,759 shares of
Series A Preferred Stock.
Net Debt and Preferred Stock to TTM Pro Forma EBITDA Ratio(2) 5.9x
(2) Ratio calculated as (dollars in thousands):
Funded debt and Preferred Stock as of June 30, 2002 $ 582,182
Less: July 2002 Preferred Stock redemptions (14,759)
Less: Pro forma cash balance as of June 30, 2002 (90,803)
---------
Net Debt and Preferred Stock as of June 30, 2002 476,620
---------
Divided by Trailing Twelve Months Pro Forma EBITDA
(includes the results of all pending acquisitions) 80,948
---------
Ratio 5.9x
CUMULUS MEDIA INC.
2002 Quarterly and Year to Date Results
BCF Margin Composition Analysis
(dollars in thousands)
The following analysis of our market portfolio separates each market
into one of six categories based upon trailing twelve month BCF
performance for analytical purposes only. We believe this analytical
distribution of our markets is helpful in assessing the portfolio's
financial and operational development.
Pro Forma for the Trailing Twelve months ended June 30, 2002:
BCF Margin % # of Markets Revenue BCF Average BCF %
-------------- -------------- --------- --------- -------------
> 35.0 23 $147,895 $ 67,681 45.8%
25.0% to 34.9% 14 46,355 14,096 30.4%
20.0% to 24.9% 3 7,711 1,635 21.2%
10.0% to 19.9% 7 17,762 2,676 15.1%
0.0% to 9.9% 2 3,572 131 3.7%
< 0.0 3 4,692 (689) (14.7%)
-------------- -------------- --------- --------- -------------
Subtotal 52 $227,987 $ 85,530 37.5%
Trade, Other -- 19,200 2,068 10.8%
-------------- -------------- --------- --------- -------------
Totals 52 $247,187 $ 87,598 35.4%
Pro Forma for the Trailing Twelve months ended March 31, 2002:
BCF Margin % # of Markets Revenue BCF Average BCF %
-------------- -------------- --------- --------- -------------
> 35.0 23 $145,675 $ 65,311 44.8%
25.0% to 34.9% 12 40,686 12,008 29.5%
20.0% to 24.9% 3 8,389 1,881 22.4%
10.0% to 19.9% 8 20,924 2,941 14.1%
0.0% to 9.9% 3 4,983 162 3.3%
< 0.0 3 3,925 (850) (21.7%)
-------------- -------------- --------- --------- -------------
Subtotal 52 $224,582 $ 81,453 36.3%
Trade, Other -- 19,271 1,634 8.5%
-------------- -------------- --------- --------- -------------
Totals 52 $243,853 $ 83,087 34.1%
Activity for Q2 2002
Markets Markets Markets Net Change Markets
BCF Margin % at 3/31/02 Moving Out Moving In In Category at 6/30/02
------------ ---------- ---------- --------- ----------- ----------
> 35.0% 23 -- -- -- 23
25.0% to 34.9% 12 -- 2 2 14
20.0% to 24.9% 3 (2) 2 -- 3
10.0% to 19.9% 8 (2) 1 (1) 7
0.0% to 9.9% 3 (1) -- (1) 2
< 0.0% 3 -- -- -- 3
Total 52 (5) 5 -- 52
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