Cumulus Media(US:CMLS)2020-11-08 08:16Financial Data and Key Metrics Changes - In Q3 2020, total revenue was $196.4 million, down 29.4% from Q3 2019 but up 34.5% over Q2 2020 total revenue [16] - Same-station revenue finished down 29% year-over-year, but improved sequentially each month, with September revenue 35% higher than June [7][16] - EBITDA for the quarter was $20.4 million, with year-to-date free cash flow exceeding $45 million, excluding M&A and ABL draw [19] Business Line Data and Key Metrics Changes - Digital revenue represented over 10% of total revenue, with podcasting up nearly 50% in Q3, delivering record quarterly revenue [9][16] - Political revenue reached $5.8 million, a record for a third quarter, significantly up from $1.7 million in Q3 2019 [17] Market Data and Key Metrics Changes - Spot and network markets were down in the low 30s versus 2019, while digital slightly offset those results with a 2% increase [16] - The company noted that diary markets outperformed PPM markets during the pandemic [7] Company Strategy and Development Direction - The company aims to maximize revenue, manage costs rigorously, and enhance liquidity to emerge from the pandemic well-positioned for long-term success [5] - A focus on expense reduction led to over $25 million in fixed-cost savings in Q3, with expectations of more than $85 million for the year [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about Q4, noting positive momentum in bookings driven by political spending, but acknowledged uncertainty due to the pandemic [13][14] - The company remains disciplined in reengineering its business to maximize revenue and reduce costs, while being prepared to capitalize on opportunities as the economy rebounds [14] Other Important Information - The company completed the initial closing of a tower sale-leaseback transaction, resulting in a cash inflow of $202.3 million, significantly strengthening its balance sheet [22] - Net debt has been reduced by more than $330 million since the beginning of the year [23] - Ongoing litigation with the NCAA regarding rights fees related to the cancellation of March Madness was disclosed, with the company believing in the merits of its position [25] Q&A Session Summary Question: Discussion on cash position and potential M&A opportunities - Management indicated that the large cash position allows for both defensive and opportunistic strategies, with debt repayment being a priority but open to M&A opportunities if they arise [28] Question: Insights on Q4 performance across different channels - Management noted a recovery in both spot and network markets, with political spending benefiting local markets, but remained cautious about the pandemic's impact on future performance [31] Question: Bookings outlook for December - Management refrained from providing specific details on December bookings, indicating that more information would be available in future earnings calls [32]