Cumulus Reports Fourth Quarter and Full Year 2002 Results.Business Editors ATLANTA--(BUSINESS WIRE)--Feb. 18, 2003 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. (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 ) -- Q4 Pro Forma Net Revenue Grows 9% -- Q4 Pro Forma EBITDA Grows 20% -- Q4 Free Cash Flow Grows to $11.4 Million vs. $(0.8) Million in Prior Year -- Q4 EPS $(0.03) vs. $(0.48) in Prior Year -- Q4 Pro Forma Leverage Falls to 5.2x vs. 9.2x in Prior Year Cumulus Media Inc. (NASDAQ: CMLS) today reported financial results for the three and twelve months ended December December: see month. 31, 2002. Lew a. 1. Lukewarm; tepid. Dickey, Chairman, President and Chief Executive Officer, commented, "The fourth quarter of 2002 was marked by greater than expected 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 revenue growth and our ninth 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. We also continued to de-lever the Company through several repurchases of our 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. and 10 3/8% Notes. These repurchases reduced our pro forma leverage to 5.2x and will dramatically reduce our interest expense going forward, enhancing our future ability to generate free cash flow." Historical results are attached. Historical or "as reported" financial data of Cumulus Media Inc. is not comparable from year to year because of the acquisition and disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of radio stations by the Company during the periods covered. Financial highlights (in thousands, except per share data and percentages) are as follows:
Three Months Ended Twelve Months Ended
December 31, % December 31, %
2002 2001 Change 2002 2001 Change
---- ---- ------ ---- ---- ------
As Reported:
Net revenue $70,753 $50,951 39% $252,597 $202,087 25%
Station operating
expenses 43,922 34,305 28% 159,766 142,357 12%
Broadcast cash flow
(1) 26,831 16,646 61% 92,831 59,730 55%
Broadcast cash flow
margin (2) 38% 33% 37% 30%
EBITDA (3) 23,568 13,085 80% 79,121 44,550 78%
Free cash flow (4) $11,378 $ (812) -- $ 26,656 $ (8,445) --
Free cash flow per
common share $ 0.18 $ (0.02) -- $ 0.49 $ (0.24) --
Same Station Results: (5)
Net revenue $54,331 $50,524 8% $208,233 $198,956 5%
Broadcast cash flow
(1) 19,601 17,316 13% 74,291 61,604 21%
Broadcast cash flow
margin (2) 36% 34% 36% 31%
Pro Forma Results: (6)
Net revenue $70,305 $64,648 9% $269,785 $253,391 7%
Broadcast cash flow
(1) 26,799 22,761 18% 99,683 83,530 19%
Broadcast cash flow
margin (2) 38% 35% 37% 33%
EBITDA (3) 23,536 19,654 20% 85,973 70,865 21%
EBITDA Margin (7) 34% 30% 32% 28%
(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 LMA fee expense, net
interest expense, dividends on the Series A Preferred Stock,
income taxes paid and maintenance/investment 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 i) all acquisitions
entered into during the period which were operated under the terms
of a local marketing agreement; ii) all acquisitions and
dispositions consummated during the period as if completed at the
beginning of each period presented and exclude the results of
Broadcast Software International. As of December 31, 2002 the pro
forma totals include the results of 258 stations in 54 markets.
(7) EBITDA margin is defined as EBITDA as a percentage of net
revenues.
Results of Operations Three Months Ended December 31, 2002 Compared to Three Months Ended December 31, 2001 Net revenues for the fourth quarter of 2002 increased $19.8 million to $70.8 million, a 39% increase from the fourth 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 $9.6 million to $43.9 million, an increase of 28% over the fourth quarter of 2001, primarily as a result of acquisitions completed in Q1 2002. 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 $10.2 million to $26.8 million, an increase of 61% from the fourth quarter of 2001, for the reasons discussed above. On a pro forma basis, which includes the results of all transactions completed during the three month 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 earliest periods presented, net revenues for the fourth quarter of 2002 increased $5.7 million to $70.3 million, an increase of 9% from the fourth 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 $4.0 million to $26.8 million, an increase of 18% from the fourth 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 38% for the fourth quarter of 2002 from 35% for the fourth quarter of 2001. Nonoperating expense, net for the fourth quarter of 2002 increased $4.1 million to $9.9 million compared to $5.8 million in fourth quarter of 2001. This increase was primarily the result of a $2.8 million extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. loss recorded in connection with the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $27.4 million in aggregate principal of the Company's 10 3/8% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes due 2008 ("10 3/8% Notes"). This increase was also due to higher levels of interest expense incurred during the fourth quarter of 2002 versus the prior year. Preferred stock dividends, accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of discount, deemed dividends and redemption premiums redemption premium See call premium. for the fourth quarter of 2002 increased $2.9 million to $7.7 million compared to $4.8 million in the prior year, primarily as a result of $7.2 million in redemption premiums paid during the quarter in connection with the Company's repurchase of 52,819 shares of its 13 3/4% Series A Cumulative Exchangeable Redeemable Redeemable Eligible for redemption under the terms of an indenture. Preferred Stock due 2009 ("Series A Preferred Stock"). This increase was partially offset by lower accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. dividends in the current quarter attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to fewer outstanding shares of the issue following the repurchases. Twelve Months Ended December 31, 2002 Compared to Twelve Months Ended December 31, 2001 Net revenues for the twelve months ended December 31, 2002 increased $50.5 million to $252.6 million, a 25% 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. Station operating expenses increased $17.4 million to $159.8 million, an increase of 12% over the same period in 2001, primarily as a result of acquisitions completed in Q1 2002, offset by a 2.5% decrease in expenses associated with stations operated since January January: see month. 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 $33.1 million to $92.8 million, an increase of 55% from the twelve months ended December 31, 2001, for the reasons discussed above. On a pro forma basis, which includes the results of all transactions completed during the twelve month period as if each were consummated at the beginning of the earliest periods presented, net revenues for the twelve months ended December 31, 2002 increased $16.4 million to $269.8 million, an increase of 7% 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 $16.2 million to $99.7 million, an increase of 19% 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 37% for the twelve months ended December 31, 2002 from 33% for the twelve months ended December 31, 2001. Nonoperating expense, net for the twelve months ended December 31, 2002 increased $18.0 million to $36.4 million compared to $18.4 million in the prior year. This increase was primarily the result of i) a $6.3 million extinguishment loss incurred in the first quarter 2002 in connection with the early retirement of the Company's existing credit facility, ii) a $2.8 million extinguishment loss recorded in the fourth quarter 2002 in connection with the repurchase of $27.4 million in aggregate principal of the Company's 10 3/8% Notes and iii) $10.3 million of net gains realized in the prior year in connection with the sale of radio stations. This increase was also due to higher levels of interest expense incurred in the current year. Preferred stock dividends, accretion of discount, deemed dividends and redemption premiums for the twelve months ended December 31, 2002 increased $9.6 million to $27.3 million compared to $17.7 million in the prior year, primarily as a result of $15.0 million in redemption premiums paid in the third and fourth quarters in connection with the Company's repurchase of 120,321 shares of its Series A Preferred Stock. This increase was partially offset by lower accrued dividends in the current year attributable to fewer outstanding shares of the issue following the repurchases. Liquidity, Leverage and Financial Position As of December 31, 2002, the Company had $60.4 million in cash on hand. Leverage, defined under the terms of the Company's credit facility as total 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. divided by trailing 12-month EBITDA as adjusted for certain non-recurring expenses, was 4.9x at December 31, 2002. During the fourth quarter, the Company successfully negotiated and completed the repurchase of 52,819 shares of its Series A Preferred Stock for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $60.0 million, including redemption premiums. As of December 31, 2002, Cumulus' outstanding Series A Preferred Stock balance was $14.2 million, representing 14,168 shares outstanding. Also during the fourth quarter, the Company completed the repurchase of $27.4 million in aggregate principal of its 10 3/8% Notes for $29.6 million, including repurchase premiums. Subsequent to December 31, 2002 and during the month of January 2003, the Company repurchased an additional $30.1 million in aggregate principal of the 10 3/8% Notes for $32.5 million, including repurchase premiums. Pro forma for the repurchases completed in January, Cumulus' outstanding 10 3/8% Notes balance at December 31, 2002 was $102.5 million. In January 2003, the Company drew $43.0 million on its existing $112.5 million revolver revolver: see small arms. revolver Pistol with a revolving cylinder that provides multishot action. Some early versions, known as pepperboxes, had several barrels, but as early as the 17th century pistols were being made with a revolving chamber to under its credit facility. Proceeds from these borrowings were used to fund the previously announced acquisitions of stations in Ft. Walton Beach, Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and and 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. (see "Acquisitions and Dispositions" below). At December 31, 2002 and pro forma for the 10 3/8% Notes repurchases completed in January and the Macon, GA and Ft. Walton Beach, FL acquisitions that also were completed in January, Cumulus cumulus: see cloud. had net long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and preferred stock of $447.3 million, consisting of $330.5 million in bank debt, $102.5 million in 10 3/8% Notes, $0.2 million in other debt and $14.2 million in Series A Preferred Stock. Including the results of all announced pending acquisitions, the ratio of net long-term debt and preferred stock (including the January repurchases of the 10 3/8% Notes) to trailing 12-month pro forma EBITDA as of December 31, 2002 is approximately 5.2x. Acquisitions and Dispositions On January 31, 2003, the Company completed the acquisition of WDDO-AM, WDEN-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. , WMAC-AM, 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, Georgia 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 #154) from U.S. Broadcasting Limited Partnership, for approximately $35.5 million in cash. This 8-station cluster cluster, in astronomy: see star cluster; galaxy. (1) Two or more systems working together. See clustering. (2) Also called an "allocation unit" or "file allocation unit," it is some number of disk sectors that are treated as a unit. has been operated by the Company under the terms of a local marketing agreement since October October: see month. 1, 2002. On January 10, 2003, the Company completed the acquisition of WKSM-FM, WNCV-FM, WYZB-FM, WZNS-FM and WFTW-AM serving the Ft. Walton Beach, Florida market (Arbitron market rank # 217) from East Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by Broadcasters, Inc. In connection with the acquisition the Company paid approximately $28.5 million in cash and 95,938 shares of Class A Common Stock. This 5-station cluster has been operated by the Company under the terms of a local marketing agreement since October 1, 2002. 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. Statements in this release, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the integration of acquisitions and any earnings or revenue projections, 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. " 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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. 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 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. 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 National Market under the symbol: CMLS. Cumulus Media Inc. will host a teleconference later today at 5:00 p.m. Eastern Time to discuss fourth quarter results. To access this teleconference live, please visit the Company's web site at www.cumulus.com or dial (630) 395-0030 for both domestic callers and international callers. The pass code for the call is CUMULUS. Immediately after completion of the call, a replay can be accessed until 11:59 PM EST EST electroshock therapy. EST abbr. electroshock therapy February February: see month. 25, 2003. Domestic callers can access the replay by dialing (800) 754-7871. International callers may access the replay by dialing (402) 220-0361.
CUMULUS MEDIA INC.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 2002 2001
---- ---- ---- ----
Revenues $ 77,925 $ 55,960 $ 278,320 $ 222,185
Less: agency commission (7,172) (5,009) (25,723) (20,098)
--------- -------- ---------- ---------
Net revenues 70,753 50,951 252,597 202,087
Operating expenses:
Station operating
expenses, excluding
depreciation,
amortization and
LMA fees 43,922 34,305 159,766 142,357
Depreciation and
amortization 3,332 13,577 16,865 50,585
LMA fees 1,051 255 1,368 2,815
Corporate general and
administrative (excluding
non-cash stock
compensation expense) 3,263 3,561 13,710 15,180
Non-cash stock
compensation (166) -- 171 --
Restructuring and other
charges (40) 6,814 (971) 6,781
--------- -------- ---------- ---------
Total operating
expenses 51,362 58,512 190,909 217,718
--------- -------- ---------- ---------
Operating income
(loss) 19,391 (7,561) 61,688 (15,631)
--------- -------- ---------- ---------
Nonoperating income
(expense):
Interest expense (8,077) (7,206) (31,705) (30,876)
Interest income 517 164 2,479 2,160
Loss on early
extinguishments of debt (2,824) -- (9,115) --
Other income, net 498 1,230 1,957 10,300
--------- -------- ---------- ---------
Total nonoperating
expense, net (9,886) (5,812) (36,384) (18,416)
--------- -------- ---------- ---------
Income (loss)
before income
taxes 9,505 (13,373) 25,304 (34,047)
Income tax benefit (expense) (3,703) 1,256 (76,357) 3,494
--------- -------- ---------- ---------
Income (loss)
before the
cumulative effect
of a change in
accounting principle,
net of tax 5,802 (12,117) (51,053) (30,553)
Cumulative effect of a change
in accounting principle, net
of tax -- -- (41,700) --
--------- -------- ---------- ---------
Net income (loss) 5,802 (12,117) (92,753) (30,553)
Preferred stock dividends,
accretion of discount,
deemed dividends and
redemption premiums 7,711 4,766 27,314 17,743
--------- -------- ---------- ---------
Net loss attributable to
common stockholders $ (1,909)$(16,883)$ (120,067)$ (48,296)
========= ======== ========== =========
Basic and diluted loss per
common share
Basic and diluted loss per
common share before the
cumulative effect of a
change in accounting
principle $ (0.03)$ (0.48)$ (1.44)$ (1.37)
Cumulative effect
of a change in
accounting
principle -- -- (0.76) --
--------- -------- ---------- ---------
Basic and diluted loss
per common share $ (0.03)$ (0.48)$ (2.20)$ (1.37)
========= ======== ========== =========
Weighted average common
shares outstanding 62,713 35,175 54,467 35,170
========= ======== ========== =========
Cumulus Media Inc.
Reconciliation between Historical GAAP Results
And Pro Forma Results for the Three Months Ended
December 31, 2002
(dollars in thousands)
Historical Pro Forma
GAAP Adjustments Results
------------ ----------- ----------
Net Revenue $70,753 $(448)(1) $70,305
Station Operating Expenses $43,922 $(416)(2) $43,506
BCF $26,831 $(32) $26,799
Corporate Overhead $3,263 -- $3,263
EBITDA $23,568 $(32) $23,536
(1) Reflects the elimination of revenues from Broadcast Software
International.
(2) Reflects the elimination of operating expenses from Broadcast
Software International ($388) and from divested stations ($28).
Cumulus Media Inc.
Reconciliation between Historical GAAP Results
And Pro Forma Results for the Twelve Months Ended
December 31, 2002
(dollars in thousands)
Historical Pro Forma
GAAP Adjustments Results
------------ ----------- -----------
Net Revenue $252,597 $17,188 (3) $269,785
Station Operating Expenses $159,766 $10,336 (4) $170,102
BCF $92,831 $6,852 $99,683
Corporate Overhead $13,710 -- $13,710
EBITDA $79,121 $6,852 $85,973
(3) Reflects the addition of revenues related to acquisitions
completed in Q1 2002 ($9,501) and pending station acquisitions
operated under LMA agreements during the 4th quarter 2002 (Ft.
Walton Beach and Macon)($9,687). Increase is offset by the
elimination of revenues from Broadcast Software International
($1,844) and from divested stations ($156).
(4) Reflects the addition of expenses related to acquisitions
completed in Q1 2002 ($5,718) and pending acquisitions operated
under LMA agreement during the 4th quarter of 2002 (Ft. Walton
Beach and Macon)($6,546). Increase is offset by the elimination of
operating expenses of Broadcast Software International ($1,659)
and from divested stations ($269).
CAPITALIZATION
(dollars in thousands)
December 31, December 31,
2002 2002
Actual Pro Forma(1)
--------------- --------------
Cash and cash equivalents $ 60,380 $5,000
=============== ==============
Long-term debt, including current
maturities:
Bank Debt and Other Secured Debt 287,500 330,500
Senior Subordinated Notes 132,582 102,477
Other 180 180
--------------- --------------
Total long-term debt 420,262 433,157
--------------- --------------
13.75% Series A Redeemable Preferred
Stock 14,168 14,168
Total Stockholders' equity 720,840 720,840
--------------- --------------
Total capitalization $ 1,155,270 $ 1,168,165
=============== ==============
(1) Pro forma for the completion of all pending acquisitions and
dispositions and the January 2003 repurchases of $30.1 million in
aggregate principal of the 10 3/8% Notes.
Net Debt and Preferred Stock to TTM
Pro Forma EBITDA Ratio (2) 5.2x
(2) Ratio calculated as (dollars in thousands):
Funded debt and Preferred Stock as of December
31, 2002 $434,430
Less: January 2003 Notes repurchases (30,105)
Plus: January 2003 credit facility borrowings 43,000
-------
Net Debt and Preferred Stock as of December 31, 2002 447,325
Divided by Trailing Twelve Months Pro Forma
EBITDA (includes the results of all pending acquisitions) 85,973
Ratio 5.2x
CUMULUS MEDIA INC.
2002 Quarterly 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 December 31, 2002:
-----------------------------------------------------------------
BCF Margin % # of Revenue BCF Average
Markets BCF %
----------------------------- ------------- --------- -------- -------
greater than 35.0% 28 $171,756 $79,375 46.2%
25.0% to 34.9% 12 43,809 13,482 30.8%
20.0% to 24.9% 4 11,560 2,682 23.2%
10.0% to 19.9% 7 17,046 2,440 14.3%
0.0% to 9.9% 2 3,880 255 6.6%
less than 0.0% 1 1,674 (985) (58.8%)
-------- --------- -------- -------
Subtotal 54 $249,725 $97,249 38.9%
Trade, Other -- 20,060 2,434 12.1%
--------- -------- -------
Totals 54 $269,785 $99,683 36.9%
Pro Forma for the Trailing Twelve months ended September 30, 2002:
------------------------------------------------------------------
BCF Margin % # of Revenue BCF Average
Markets BCF %
----------------------------- ------------- --------- -------- -------
greater than 35.0% 24 $155,601 $71,995 46.3%
25.0% to 34.9% 14 51,072 15,920 31.2%
20.0% to 24.9% 4 11,696 2,810 24.0%
10.0% to 19.9% 7 17,509 2,732 15.6%
0.0% to 9.9% 4 7,871 370 4.7%
less than 0.0% 1 1,218 (819) (67.2%)
-------- --------- -------- -------
Subtotal 54 $244,967 $93,008 38.0%
Trade, Other -- 19,160 2,432 12.7%
--------- -------- -------
Totals 54 $264,127 $95,440 36.1%
Activity for Q4 2002
Markets Markets Markets Net Markets
BCF Margin % at Moving Moving Change at
9/30/02 Out In In 12/31/02
Category
------------------------ --------- ------- ------- --------- ---------
greater than 35.0% 24 (1) 5 4 28
25.0% to 34.9% 14 (5) 3 (2) 12
20.0% to 24.9% 4 (2) 2 -- 4
10.0% to 19.9% 7 (2) 2 -- 7
0.0% to 9.9% 4 (2) -- (2) 2
less than 0.0% 1 -- -- -- 1
Total 54 (12) 12 -- 54
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