Cumulus Media(US:CMLS)2020-08-10 14:38Financial Data and Key Metrics Changes - In Q2 2020, total revenue was $146 million, down 46.6% from Q2 2019, with EBITDA at a negative $6.3 million [29][12][33] - The company generated $28 million of cash from operations despite the EBITDA decline, and ended the quarter with nearly $200 million in cash, an increase of $91 million since March [21][10][29] - Net debt decreased slightly over $1 billion to $884 million, a reduction of approximately $124 million [38] Business Line Data and Key Metrics Changes - Digital revenue grew by 3.6% on a same-station basis, with podcasting revenue increasing by more than 25% [14][32] - Network advertising performed better than spot advertising, reflecting efficiency and exposure to large national advertisers [13] - Political advertising was not a significant factor in Q2 but is expected to ramp up in Q3 [25] Market Data and Key Metrics Changes - The company experienced a sequential improvement in revenue declines, with April down 51%, May down 50%, and June down 39% [29] - Smaller markets performed better than larger markets, with some recovery in categories like professional services and general services [24] Company Strategy and Development Direction - The company executed significant expense cuts totaling $85 million for the year to mitigate revenue declines due to COVID-19 [9][20] - A strategic agreement was made to monetize the Tower portfolio for $213 million, which will facilitate further debt pay down and increase cash resources [22][39] - The company aims to capitalize on the rebounding economy while continuing aggressive debt reduction and investment in growth [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating through economic downturns due to strong liquidity and cost actions taken [11][27] - There is uncertainty regarding the timing of a return to a more predictable environment, but bookings are expected to improve materially in Q3 [23][11] - The company remains focused on revenue recovery, expense reductions, and cash management [11] Other Important Information - The company completed the sale of land in Bethesda, Maryland, generating $66 million in net proceeds [36] - The SEC's order on a petition for declaratory ruling was favorable, allowing the company to simplify its share class structure [44][45] Q&A Session Summary Question: July advertising performance and digital opportunities - July results were down about 32%, with more orders in August indicating constructive trends [46] - Digital opportunities remain strong, with podcasting pacing well for Q3 and local digital services performing twice as well as broadcast [48] Question: Westwood One news closure and sports exposure - The decision to close Westwood One news was based on the expensive nature of the business model, with minimal impact on top-line or EBITDA [52] - The company has a larger sports exposure in Q3 compared to Q2, but potential cancellations could impact EBITDA [55]