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CUMULUS NEWS RELEASE NOV 8, 1999 CUMULUS MEDIA INC., Growth Continues
- Same Station Cash Flow up 43.2%
MILWAUKEE, WI November 8, 1999 -- Cumulus Media Inc. (NASDAQ: CMLS), currently the nation’s third largest owner-and-operator of radio stations (based upon the number of stations owned or to be acquired pursuant to pending acquisition agreements), today reported third quarter 1999 results marked by significant increases in revenue, broadcast cash flow and margins when compared to the third quarter of 1998. Three months ended September 30, 1999 Consolidated net revenue on a historical basis was $48.0 million, up 67.1% from $28.7 million for the third quarter in 1998. Broadcast cash flow was $17.1 million, up 94.7% from $8.8 million. Due to non-cash depreciation and amortization expense, and interest expense related to the acquisition of 203 stations since the Company’s inception on May 22, 1997 though September 30, 1999 and accrued dividends on the Company’s Series A Preferred Stock, the Company reported a net loss, attributable to common stock, of $4.0 million during the third quarter of 1999, or $(.14) per share versus $(.53) per share in 1998. The Company’s historical results of operations from period to period are not directly comparable because of the impact of various acquisitions and dispositions that the Company has completed since its inception. On a same-station basis, net revenue for the 127 stations in 22 markets operated for at least a full year was $29.6 million, up 19.0% from the previous year’s net revenue of $24.8 million. Broadcast cash flow was $10.6 million, up 43.2% from $7.4 million. Broadcast cash flow margins increased to 36.0% in 1999 compared to 29.9% in the third quarter of 1998. For the 36 markets and 195 stations operated since January 1, 1999 net revenue was $41.2 million, up 20.5% from the previous year’s net revenue of $34.2 million. Broadcast cash flow was $15.4 million, up 58.0% from $9.7 million. Broadcast cash flow margins increased to 37.3% in 1999 compared to 28.4% in the third quarter of 1998. On a Pro-forma basis (assuming all 247 stations owned or operated under an LMA agreement at any time during the applicable period were owned or operated under an LMA agreement for the full period), consolidated net revenues increased 14.4% to $50.7 million and broadcast cash flow increased 43.0% to $17.6 million compared to the quarter ended September 30, 1998 when revenues and cash flow were $44.3 million and $12.3 million respectively. Broadcast cash flow margins increased to 34.8% in 1999 compared to 27.8% in the third quarter of 1998. Nine months ended September 30, 1999 For the nine months ended September 30, 1999, Cumulus reported consolidated net revenue on a historical basis of $125.7 million, up 99.2% from $63.1 million for nine months ended September 30, 1998. Broadcast cash flow for the nine months was $35.7 million, up 124.6% versus $15.9 million for the same period in 1998. Due to non-cash depreciation and amortization expense, and interest expense related to the station acquisitions and non-cash dividends on preferred stock, the Company reported a net loss attributable to the common stock of $26.7 million, or $(1.19) per share for the nine months ended September 30, 1999 versus a net loss of $19.9 million, or $(1.02) per share for the comparable period in 1998. The Company’s historical results of operations from period to period are not directly comparable because of the impact of various acquisitions and dispositions that the Company has completed since its inception. On a same station basis, net revenue for the 127 stations in 22 markets operated for at least a full year was $80.2 million, up 19.4% from the previous year’s net revenues of $67.1 million for the same period. Broadcast cash flow was $23.9 million, up 60.5% from $14.9 million. Broadcast cash flow margins increased to 29.8% in 1999 compared to 22.2% in the third quarter of 1998. For the 195 stations in 36 markets operated since January 1, 1999, net revenue for the nine months ended September 30, 1999 was $112.6 million, up 19.9% from the previous year’s net revenue of $93.9 million. Broadcast cash flow was $32.7 million, up 51.2% from $21.6 million. Broadcast cash flow margins increased to 29.1% in 1999 compared to 23.0% in the third quarter of 1998. On a Pro-forma basis (assuming all 247 stations owned or operated under an LMA agreement at any time during the applicable period were owned or operated under an LMA agreement for the full period), consolidated net revenues increased 14.3% to $139.1 million and broadcast cash flow increased 36.8% to $38.1 million compared to the nine months ended September 30, 1998 when revenues and cash flow were $121.7 million and $27.8 million respectively. Broadcast cash flow margins increased to 27.4% in 1999 compared to 22.9% in the third quarter of 1998. "We are delighted with the results," said Richard Weening, Cumulus Executive Chairman. "The Cumulus business model is moving into full swing as we continue to optimize each market cluster with improved radio stations and an expanded sales organization." "Reflective of the capabilities of our operating teams and the efficiency and effectiveness of the integration processes in place, for the third quarter we generated slightly higher growth rates in the larger same station group than we did for the more mature same station portfolio," Weening continued. "This also validates our Company’s acquisition discipline in terms of the consistently high quality of assets we assemble through original consolidation." "In addition to consistent focus on operational improvements at the stations that we operate, we are committed to maintaining a prudent capital structure that reflects where we are in the development curve of the assets we operate or intend to acquire." "We recently filed a Form S-3 Registration Statement with the Securities and Exchange Commission to sell more equity during the fourth quarter of 1999. The follow-on offering, if successful, will position us to continue our internal and external growth strategies at prudent leverage levels, which will provide the benefit of improved cash flows." On July 27, 1999, the Company completed a follow-on public stock offering selling 9,664,000 shares of its Class A Common Stock for 22.919 per share, after underwriter’s discounts and commissions. The net proceeds of the offering were approximately $221.5 million. In addition, on August 10, 1999, the underwriters exercised their option to purchase an additional 1,449,600 shares of Class A Common Stock at $22.919 per share. Exercise of the option resulted in an additional $33.2 million in net offering proceeds to the Company. During the quarter, the Company’s existing credit facility was amended and restated. The amended facility provides for aggregate principal borrowings of $225 million consisting of a term loan facility due September 30, 2007 of $75 million, a term loan facility due February 28, 2008 of $50 million and two revolving credit commitments of $50 million. Under the terms of the Credit Facility, the Company drew down $125 million on the term loan facilities upon the closing of the facility on August 31, 1999. The proceeds of the borrowings under the Amended and Restated Credit Facility were used to repay the Company’s outstanding indebtedness under its previous credit facility and to finance acquisitions. Cumulus Media Inc. is the parent Company of Cumulus Broadcasting Inc., which along with its other subsidiaries, owns and operates station clusters in mid-size markets. The Company commenced operations May 22, 1997. Cumulus is the third largest U.S. radio operating company in terms of stations owned. Pro forma the completion of all pending acquisitions, Cumulus Media will own and operate 261 radio stations in 48 mid-size and smaller U.S. media markets. After giving pro forma effect for the pending acquisitions, the Company will own, on average, over 5 radio stations per market, will enjoy either the first or second position in terms of revenue share in 44 of its markets, and is number one in 26 markets. In addition, the Company owns and operates a multi-market radio network in the English-speaking Caribbean. This news announcement contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Key risks are described in the Company’s reports filed with the U.S. Securities and Exchange Commission. Readers should note that these statements may be impacted by several factors including changes in the economic climate and the in the business of radio broadcasting. Accordingly, the Company’s actual performance may vary from those stated or implied herein. # # #
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# # # CUMULUS MEDIA INC.
(1) Pro forma for the shares issued in connection with
the Company’s Follow-On Public Stock Offering, which was completed on July
22, 1999, and including the exercise of the underwriter’s over allotment
of 1,449,600 shares on August 10, 1999.
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