Cumulus Media(US:CMLS)2019-08-08 12:27Financial Performance - Net revenue for the Successor Company for the three months ended June 30, 2019 was $279.7 million, a decrease of 2.0% compared to $285.2 million for the combined period in 2018[163]. - Operating income for the Successor Company was $81.1 million, representing a significant increase of 92.3% compared to $42.2 million in the combined period of 2018[163]. - Net income for the Successor Company was $42.9 million, down 93.9% from $706.1 million in the combined period of 2018, primarily due to reorganization items[163]. - Adjusted EBITDA for the three months ended June 30, 2019 was $61.8 million, a decrease of 6.8% from $66.4 million in the previous year[163]. - Adjusted EBITDA for the consolidated entity for the six months ended June 30, 2019, was $103,623, reflecting a decrease of 2.8% from the previous year[208]. - The overall consolidated net revenue for the six months ended June 30, 2019, was $547,169, down from $548,928 in the same period of 2018[207]. Revenue Sources - The company experienced a decrease in local broadcast advertising revenue, which contributed to the decline in net revenue[166]. - Digital revenue increased, partially offsetting the losses from local broadcast advertising revenue[166]. - The Cumulus Radio Station Group generated net revenue of $193,162 thousand, representing 69.1% of total revenue, with a decline of 5.1% year-over-year[201]. - Westwood One's net revenue for the six months ended June 30, 2019, was $186,123, an increase of 5.7% compared to the same period in 2018[205]. - The company noted that the increase in revenue at Westwood One was primarily driven by higher broadcast and digital revenue[201]. Costs and Expenses - Content costs increased to $93.8 million for the three months ended June 30, 2019, up 4.3% from $90.0 million in the previous year[163]. - Corporate expenses, including stock-based compensation and restructuring costs, increased by 34.9% to $22.7 million[163]. - Interest expense for the three months ended June 30, 2019 was $21.2 million, reflecting a significant increase compared to the previous year[163]. - Selling, general and administrative expenses for the Successor Company for the three months ended June 30, 2019 decreased primarily due to a reduction in bad debt expense, with a recognized bad debt expense of $4.1 million in the previous period[169]. - Content costs for the Successor Company for the six months ended June 30, 2019 increased due to higher digital costs associated with increased digital revenue[185]. - Corporate expenses for the Successor Company for the six months ended June 30, 2019 increased primarily due to higher restructuring costs related to station disposal and swap transactions[189]. Taxation - Income tax expense for the Successor Company for the three months ended June 30, 2019 was $17.0 million on pre-tax book income of $59.9 million, resulting in an effective tax rate of approximately 28.3%[177]. - The effective tax rate for the Successor Company for the six months ended June 30, 2019 was approximately 27.9%, influenced by state and local income taxes and non-deductible expenses[194]. Cash Flow and Debt Management - Cash generated from operating activities for the Successor Company was $49.0 million for the six months ended June 30, 2019, compared to $29.1 million for the Predecessor Company during the same period in 2018[220]. - The total principal of long-term debt was reduced from $1,300 million at emergence to $1,104 million as of June 30, 2019, reflecting effective debt management strategies[220]. - Net cash provided by investing activities for the Successor Company was $92,804, primarily due to proceeds from the EMF Sale[228]. - Net cash used in financing activities included $500 million from the issuance of 6.75% Senior Notes, which contributed to repaying $639.2 million of debt under the Term Loan[230]. - As of June 30, 2019, $603.7 million of long-term debt bore interest at a variable rate, indicating exposure to interest rate fluctuations that could impact earnings[233]. Asset Management - The Gain on sale or disposal of assets for the Successor Company for the three months ended June 30, 2019 was $47.8 million, which included a $47.6 million gain on the EMF Sale[173]. - The company experienced a loss on the sale or disposal of assets amounting to $47,724, indicating challenges in asset management[216]. - Restructuring costs totaled $15,801, reflecting ongoing efforts to optimize operational efficiency[216].