Cumulus Media(US:CMLS)2024-11-01 12:04Revenue Performance - Net revenue for the three months ended September 30, 2024, decreased by $3.8 million, or 1.8%, compared to the same period in 2023, primarily due to a reduction in spot revenue of $9.5 million[116]. - For the nine months ended September 30, 2024, net revenue was $608.5 million, a decrease of $14.7 million, or 2.4%, compared to $623.2 million in the same period in 2023[114]. - Net revenue for the nine months ended September 30, 2024, decreased by $14.7 million, or 2.4%, primarily due to reductions in spot and network revenues of $21.9 million and $4.3 million, respectively[128]. EBITDA and Profitability - Adjusted EBITDA for the three months ended September 30, 2024, was $24.1 million, a decrease of $2.9 million, or 10.7%, from $26.9 million in the same period in 2023[113]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $57.7 million, a decrease of $10.3 million from $67.9 million for the same period in 2023[141]. - Net loss for the three months ended September 30, 2024, was $10.3 million, compared to a net income of $2.7 million in the same period in 2023, representing a change of $13.0 million[113]. - The loss before income taxes for the nine months ended September 30, 2024, was $49.9 million, compared to a loss of $20.4 million in the same period in 2023, representing an increase of $29.6 million[114]. Expenses - Content costs for the three months ended September 30, 2024, decreased by $0.4 million, or 0.5%, primarily due to reduced spending on third-party station inventory[117]. - Selling, general and administrative expenses increased by $2.1 million, or 2.2%, for the three months ended September 30, 2024, primarily driven by higher trade expenses[118]. - Corporate expenses decreased by $4.0 million, or 25.1%, for the three months ended September 30, 2024, primarily due to lower incentive compensation and restructuring expenses[120]. - Selling, general and administrative expenses increased by $2.5 million, or 0.9%, for the nine months ended September 30, 2024, driven by higher trade expenses and personnel costs[130]. - Corporate expenses increased by $5.4 million, or 10.1%, for the nine months ended September 30, 2024, primarily due to $16.4 million of debt exchange costs[132]. Interest and Tax - Interest expense for the three months ended September 30, 2024, decreased by $0.8 million, or 4.6%, compared to the same period in 2023[123]. - Total interest expense for the nine months ended September 30, 2024, decreased by $1.4 million, or 2.7%, compared to the same period in 2023[135]. - Interest income for the nine months ended September 30, 2024, decreased by $1.2 million, or 69.3%, due to reduced investment in government money market funds[136]. - The effective tax rate for the three months ended September 30, 2024, was approximately 0.4%, compared to an effective tax rate of approximately (132.3)% for the same period in 2023[125]. Cash Flow and Financing - As of September 30, 2024, the company had $52.2 million in cash and cash equivalents, having used $20.1 million for operating activities in the nine months ended September 30, 2024[144]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $(20.1) million, a decrease from $28.4 million provided in the same period in 2023[160]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $(979) thousand, compared to $(3.2) million in the same period in 2023[161]. - Net cash used in financing activities for the nine months ended September 30, 2024, was $(7.4) million, significantly lower than $(49.8) million in the same period in 2023[162]. Debt and Share Repurchase - The company completed a Term Loan Exchange Offer, exchanging $328.3 million in aggregate principal amount of its Term Loan due 2026 for $311.8 million in aggregate principal amount of Term Loan due 2029[151]. - The maturity date of all borrowings under the 2020 Revolving Credit Facility has been extended to March 1, 2029, with aggregate commitments increased to $125.0 million[154]. - Holdings accepted $323.0 million in Senior Notes due 2026 in exchange for approximately $306.4 million in Senior Notes due 2029, reflecting a successful Notes Exchange Offer[156]. - The Company did not repurchase any shares of its outstanding Class A common stock during the nine months ended September 30, 2024, while it repurchased 323,285 shares for approximately $1.5 million during the same period in 2023[157]. - As of September 30, 2024, $25.0 million of the Company's outstanding Class A common stock remained available for repurchase under the current share repurchase program[159]. - The Company incurred $16.4 million in debt exchange costs during the nine months ended September 30, 2024, contributing to the operating loss for the period[159]. - The Inflation Reduction Act of 2022 imposed a 1% excise tax on stock repurchases, but the tax owed on shares repurchased during the nine months ended September 30, 2023, was not material[158]. Off-Balance Sheet Arrangements - There were no off-balance sheet arrangements as of September 30, 2024[164].