Cumulus Media Inc. Reports Operating Results (10-Q)
Cumulus Media Inc. has a market cap of $205.9 million; its shares were traded at around $4.95 with and P/S ratio of 0.8. 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 March 31, 2010 decreased $0.4 million, or 13.1%, to $2.5 million, compared to $2.9 million for the three months ended March 31, 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 first quarter of 2010 decreased $2.0 million, or 33.4%, to $4.1 million compared to $6.1 million in 2009, primarily due to a decrease in corporate expenses associated with our cost containment initiatives including a reduction in salary expense, as well as a decrease in professional fees associated with our defense of certain lawsuits that were subsequently settled in 2009.
Interest Expense, net. Interest expense, net of interest income, for the three months ended March 31, 2010 increased $1.1 million, or 14.1%, to $8.8 million compared to $7.7 million for the three months ended March 31, 2009. Interest expense associated with outstanding debt increased by $2.6 million to $6.7 million as compared to $4.1 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 $58.2 million of debt compared to the same period in the prior year. The following summary details the components of our interest expense, net of interest income (dollars in thousands):
For the three months ended March 31, 2010, net cash provided by operating activities increased $5.5 million to $12.1 million from net cash provided by operating activities of $6.6 million for the three months ended March 31, 2009. The increase is primarily attributable to a $6.5 million increase in accounts payable and accrued expenses related to the timing of certain payments. For the three months ended March 31, 2010 and 2009, our working capital was $(32.4) million and $56.9 million, respectively. We have assessed the implications of the working capital deficiency on our current business and determined, based on our financial condition as of March 31, 2010, that cash on hand and cash expected to be generated from operating activities and, if necessary, further financing activities, will be sufficient to satisfy our anticipated working capital needs including short-term debt service payments.
For the three months ended March 31, 2010, net cash used in investing activities decreased $0.3 million to $0.5 million from net cash used in investing activities of $0.8 million for the three months ended March 31, 2009. The decrease is primarily due to a $0.3 million decrease in capital expenditures.
The Credit Agreement maintains the preexisting term loan facility of $750.0 million, which had an outstanding balance of approximately $647.9 million immediately after closing the amendment, and reduced the preexisting revolving credit facility from $100.0 million to $20.0 million. Incremental facilities are no longer permitted as of June 30, 2009 under the Credit Agreement.
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