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Cumulus Media Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 5, 2012 04:11PM

Cumulus Media Inc. (CMLS) filed Quarterly Report for the period ended 2012-09-30. Cumulus Media, Inc. has a market cap of $418.7 million; its shares were traded at around $2.47 with a P/E ratio of 7.1 and P/S ratio of 0.8. Cumulus Media, Inc. had an annual average earning growth of 1.9% over the past 10 years.



Highlight of Business Operations:

Primarily as a result of the completion of the significant transactions described below during the third quarter of 2011, we believe that our results of operations for the three and nine months ended September 30, 2012 will provide only limited comparability to our results of operations for the three and nine months ended September 30, 2011. Investors are cautioned to not place undue reliance on any such comparison. Aggregate revenues of $43.3 million and $123.3 million for the three and nine months ended September 30, 2012, respectively, attributable to Cumulus Media Partners LLC (“CMP”) and $172.4 million and $511.8 million for the three and nine months ended September 30, 2012, respectively, attributable to Citadel are included in the accompanying unaudited condensed consolidated financial statements for such periods.

Our radio stations strive to maximize revenue by managing their on-air inventory of advertising. The optimal number of advertisements available for sale depends on the programming format of a particular station. Each of our stations has a general target level of on-air inventory available for advertising. This target level of inventory for sale may vary at different times of the day but tends to remain stable over time. We seek to broaden our base of advertisers in each of our markets by providing a wide array of audience demographic segments across our cluster of stations, thereby providing each of our potential advertisers with an effective means of reaching a targeted demographic group. Our selling and pricing activity is based on demand for our radio stations’ on-air inventory. In the broadcasting industry, radio stations sometimes utilize trade or barter agreements that exchange advertising time for goods or services such as travel or lodging, instead of for cash. Trade revenue totaled $20.4 million and $12.8 million in the nine months ended September 30, 2012 and 2011, respectively. Our advertising contracts are generally short-term. We generate most of our revenue from local and regional advertising, which is sold primarily by a station’s sales staff. Local advertising represented approximately 72.5% and 75.0% of our total revenues during the nine months ended September 30, 2012 and 2011, respectively.

Net Revenues. Net revenues for the three months ended September 30, 2012 increased $150.6 million, or 120.7%, to $275.4 million, compared to $124.8 million for the three months ended September 30, 2011. This increase reflects the full period impact of net revenues from CMP and Citadel, including a $4.6 million increase in political advertising. Revenue growth was partially offset by short term revenue impacts resulting from strategic format changes in some markets, general downward trends in the overall macro economic environment for radio and reduced use of trade advertising on acquired stations.

Net Revenues. Net revenues for the nine months ended September 30, 2012 increased $553.7 million, or 232.0%, to $792.4 million, compared to $238.7 million for the nine months ended September 30, 2011. This increase reflects the impact of net revenues from CMP and Citadel, as well as a $10.6 million increase in political advertising. Revenue growth was partially offset by short term revenue impacts resulting from strategic format changes in some markets, general downward trends in the overall macro economic environment for radio and reduced use of trade advertising on acquired stations.

For the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011, net cash provided by operating activities increased $96.3 million as compared to the nine months ended September 30, 2011. The increase was primarily due to an increase in net revenues of $553.7 million, partially offset by an aggregate decrease in cash provided by operating assets and liabilities of $41.0 million and increases in operating expenses and cash paid for interest of $313.1 million and $117.6 million, respectively.

Read the The complete Report



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