Cumulus Media(US:CMLS)2023-10-26 16:00Financial Performance - Net revenue for the nine months ended September 30, 2023, was $623.2 million, a decrease of $78.99 million or 11.2% compared to $702.2 million for the same period in 2022[160] - Adjusted EBITDA for the nine months ended September 30, 2023, was $67.93 million, down $55.34 million or 44.9% from $123.27 million in the prior year[160] - Operating income fell to $21.84 million, a decline of $48.48 million or 68.9% compared to $70.32 million for the same period in 2022[160] - Net revenue for the three months ended September 30, 2023, decreased by $26.0 million, or 11.2%, compared to the same period in 2022, primarily due to reductions in spot and network revenues[185] - Operating income for the three months ended September 30, 2023, was $17.6 million, down $10.8 million, or 38.1%, from the previous year[183] - Net income for the three months ended September 30, 2023, was $2.7 million, a decrease of $5.8 million, or 68.1%, compared to $8.5 million in 2022[183] - Adjusted EBITDA for the three months ended September 30, 2023, was $26.9 million, down $19.6 million, or 42.2%, from $46.6 million in the same period last year[204] Costs and Expenses - Content costs decreased by $18.9 million or 7.3% to $238.94 million for the nine months ended September 30, 2023, primarily due to lower syndicated programming costs[169] - Content costs for the same period decreased by $6.5 million, or 7.9%, mainly due to lower syndicated programming costs and reduced personnel costs[186] - Selling, general and administrative expenses decreased by $1.4 million, or 1.5%, attributed to lower research expenses and sales commissions[187] - Corporate expenses rose by $5.57 million or 11.5% to $54.05 million for the nine months ended September 30, 2023[160] - Corporate expenses increased by $1.4 million, or 10.0%, primarily due to higher incentive compensation and increased employee benefit costs[189] Debt and Interest - Interest expense increased by $5.98 million or 12.6% to $53.47 million for the nine months ended September 30, 2023[160] - The gain on early extinguishment of debt for the nine months ended September 30, 2023, was $9.85 million, driven by repurchases of $34.7 million and $8.9 million principal amounts of debt[173] Taxation - The effective tax rate for the nine months ended September 30, 2023, was impacted by valuation allowances and changes to projected full-year effective tax rates[174] - The company recorded an income tax benefit of $1.6 million for the three months ended September 30, 2023, compared to an income tax expense of $4.6 million in 2022[193] Cash and Liquidity - Cash and cash equivalents as of September 30, 2023, totaled $82.8 million, with cash generated from operating activities amounting to $28.4 million for the nine months ended September 30, 2023[205] - The company anticipates that its business model and current cash reserves will help manage anticipated liquidity needs for at least the next twelve months[207] Corporate Actions - The company authorized a share repurchase program for up to $25 million of outstanding Class A common stock, which is set to expire on May 15, 2025[178] - The loss on sale or disposal of assets for the nine months ended September 30, 2023, was primarily related to the sales of WDRQ-FM and WFAS-FM[171] Legal Matters - The Ninth Circuit ruled that no public performance right exists for pre-1972 recordings under California law, impacting ongoing litigation involving Pandora[218] - A summary judgment in favor of Pandora was granted on July 25, 2023, indicating an absence of public performance rights owned by the plaintiff[218] - The appeal filed by the plaintiff on August 25, 2023, regarding the Pandora case is still pending, with uncertain implications for the company's financial position[218] Internal Controls - The company has effective disclosure controls and procedures as of September 30, 2023, ensuring timely reporting and decision-making[242]