GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Cumulus Media Inc. Reports Operating Results (10-Q)

August 09, 2012 | About:
10qk

10qk

18 followers
Cumulus Media Inc. (CMLS) filed Quarterly Report for the period ended 2012-06-30.

Cumulus Media Inc. has a market cap of $404.6 million; its shares were traded at around $2.63 with a P/E ratio of 6.3 and P/S ratio of 0.7. 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 in the third quarter of 2011, we believe that our results of operations for the three and six months ended June 30, 2012 will provide only limited comparability to our results of operations for the three and six months ended June 30, 2011. Investors are cautioned to not place undue reliance on any such comparison. Aggregate revenues of $44.1 million and $80.0 million for the three and six months ended June 30, 2012, respectively, attributable to Cumulus Media Partners LLC (CMP) and $184.7 million and $339.4 million for the three and six months ended June 30, 2012, respectively, attributable to Citadel are included in the accompanying unaudited condensed consolidated financial statements for such periods.

Net Revenues. Net revenues for the three months ended June 30, 2012 increased $218.8 million, or 351.5%, to $281.0 million, compared to $62.2 million for the three months ended June 30, 2011. This increase reflects the impact of net revenues from CMP and Citadel, as well as a $2.7 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 and reduced use of trade advertising on acquired stations. Additionally, management fee income decreased $0.8 million primarily related to the completion of the CMP Acquisition and related discontinuation of the CMP management agreement.

Direct Operating Expenses, Excluding Depreciation and Amortization. Direct operating expenses for the three months ended June 30, 2012 increased $133.4 million, or 378.3%, to $168.7 million, compared to $35.3 million for the three months ended June 30, 2011. This increase reflects the impact of direct operating expenses from CMP and Citadel in addition to a $1.3 million increase in broadcast rights. Previously announced synergies resulted in additional expense decreases due to reduced compensation costs, discretionary spending related to promotions and nontraditional revenue generating events, and enhanced expense controls.

Net Revenues. Net revenues for the six months ended June 30, 2012 increased $403.1 million, or 353.9%, to $517.0 million, compared to $113.9 million for the six months ended June 30, 2011. This increase reflects the impact of net revenues from CMP and Citadel, as well as a $4.7 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 and reduced use of trade advertising on acquired stations. Additionally, management fee income decreased $1.9 million primarily related to the completion of the CMP Acquisition and related discontinuation of the CMP management agreement.

For the six months ended June 30, 2012, net cash provided by operating activities increased $34.9 million as compared to the six months ended June 30, 2011. The increase was primarily due to an increase in net revenues of $403.1 million, partially offset by an aggregate decrease in cash provided by operating assets and liabilities of $36.8 million, increases in operating expenses and cash paid for interest of $257.9 million and $85.2 million, respectively.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide