Cumulus Media Inc. Reports Operating Results (10-Q)
Cumulus Media Inc. has a market cap of $126.1 million; its shares were traded at around $3.03 with and P/S ratio of 0.49. Cumulus Media Inc. had an annual average earning growth of 11.6% over the past 10 years.CMLS is in the portfolios of Wallace Weitz of Weitz Wallace R & Co, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: Depreciation and Amortization. Depreciation and amortization for the three months ended June 30, 2010 decreased $0.4 million, or 15.1%, to $2.4 million, compared to $2.8 million for the three months ended June 30, 2009, resulting from a decrease in our asset base due to assets becoming fully depreciated, coupled with a decrease in capital expenditures.
Corporate, General and Administrative Expenses Including Non-cash Stock Compensation. Corporate expenses, including non-cash stock compensation expense for the second quarter of 2010 increased $1.1 million, or 28.3%, to $5.1 million compared to $4.0 million in 2009. This change is primarily attributable to a favorable ruling on certain litigation in the prior year that served to reduce the expense by approximately $0.8 million in the second quarter of 2009. The remaining $0.3 million increase is due to normalized employee costs following a prior period companywide one-week furlough.
Interest Expense, net. Interest expense, net of interest income, for the three months ended June 30, 2010 increased $1.1 million, or 17.9%, to $7.3 million compared to $6.2 million for the three months ended June 30, 2009. Interest expense associated with outstanding debt increased by $3.0 million to $6.8 million as compared to $3.8 million in the prior years period, primarily due to an increase in interest rates, partially offset by a decrease in the borrowing base due to the repayment of approximately $32.1 million of debt compared to the same period in the prior year. The remaining decrease is primarily attributable to a $1.6 million change in fair
Net Revenues. Net revenues for the six months ended June 30, 2010 increased $4.8 million, or 3.9%, to $126.1 million compared to $121.3 million for the six months ended June 30, 2009, primarily due to an increase in revenue from national accounts, political revenue generated by mid-term congressional elections, and increases in internet related revenues. We believe that incremental growth in advertising revenue for the second half of 2010 will be driven primarily by increases in cyclical political spending.
Station Operating Expenses, Excluding Depreciation, Amortization and LMA Fees. Station operating expenses for the six months ended June 30, 2010 decreased $1.2 million, or 1.5%, to $80.3 million, compared to $81.5 million for the six months ended June 30, 2009 as the result of a $2.7 million decrease in salary related expenses as well as a $1.4 million decrease in other general expenses resulting from our ongoing efforts to contain operating costs. These cost savings were partially offset by an increase in trade expenses. We will continue to monitor all our operating costs and to the extent we are able to identify any additional cost saving measures, we will implement them in an attempt to remain in compliance with current and future debt covenant requirements.
Depreciation and Amortization. Depreciation and amortization for the six months ended June 30, 2010 decreased $0.8 million, or 14.1%, to $4.9 million, compared to $5.7 million for the six months ended June 30, 2009, resulting from a decrease in our asset base due to assets becoming fully depreciated coupled with a decrease in capital expenditures.
Read the The complete Report