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Category: Stock Market and Cumulus Media
Date: 12 November 2019 Stock Price: $13.60 We take a look at the 3rd quarter earnings report of their 2019 fiscal year of Cumulus Media a audio first media and entertainment company delivering content to over a quarter billion people every month
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About Cumulus Media
CUMULUS MEDIA (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month - wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-andoperated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the Academy of Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with personal connections, local impact and national reach through on-air and on-demand digital, mobile, social, and voice-activated platforms, as well integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees
Overview of Cumulus Media's 3rd quarter 2019 earnings report
- Net revenues: $280.808 million (down from $282.254 million for the same quarter of the previous year
- Net revenues decreased by -0.51% over the last 12 months
- Operating expenses: $235.128 million (down from $238.899 million for the same quarter of the previous year)
- Operating expenses decreased by -1.57% over the last 12 months
- Net income: $16.323 million (up from $12.713 million for the same quarter of the previous year)
- Diluted earnings per share: $0.81 (down from $0.63 for the same quarter of the previous year)
- PE ratio of Cumulus Media: 4.3
- Diluted weighted-average shares outstanding: 20.15 million (down from 20.17 million for the same quarter of the previous year)
- Cash and cash equivalents: $7.75 million
- Cash and cash equivalents per share: $0.38
- Cash and cash equivalents makes up 2.82% of Cumulus Media 's market capital
Cumulus Media's management commentary on their 3rd quarter earnings results and guidance
ATLANTA, GA — November 11, 2019: Cumulus Media Inc. (NASDAQ: CMLS) (the “Company,” “we,” “us,” or “our”) today announced operating results for the three and nine months ended September 30, 2019.
Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, “In the third quarter, the Company turned in another strong performance with same station revenue and Adjusted EBITDA growth of 3.9% and 2.2%, respectively, on an ex-political basis. Our operating plan has continued to deliver industry-leading digital revenue growth and continuing growth in our national and network channels. We also made great progress in the quarter on our balance sheet as our free cash flow generation allowed us to fund a voluntary debt prepayment of approximately $29 million, which reduced net leverage to 4.5x. Additionally, we completed a $525 million term loan refinancing that extended our debt maturity and reduced future interest expense.” Within the quarter, the Company reassessed its reportable segments and concluded it has one reportable segment. Prior to this change, the Company had two reportable segments: Cumulus Radio Station Group and Westwood One.
Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, “In the third quarter, the Company turned in another strong performance with same station revenue and Adjusted EBITDA growth of 3.9% and 2.2%, respectively, on an ex-political basis. Our operating plan has continued to deliver industry-leading digital revenue growth and continuing growth in our national and network channels. We also made great progress in the quarter on our balance sheet as our free cash flow generation allowed us to fund a voluntary debt prepayment of approximately $29 million, which reduced net leverage to 4.5x. Additionally, we completed a $525 million term loan refinancing that extended our debt maturity and reduced future interest expense.” Within the quarter, the Company reassessed its reportable segments and concluded it has one reportable segment. Prior to this change, the Company had two reportable segments: Cumulus Radio Station Group and Westwood One.
Cumulus Media (NYSE: CMLS) stock price history
The image below shows the stock price history of Cumulus Media (NASDAQ: CMLS) over the last 5 years. And it's not been a very volatile time for Cumulus media stockholders. The stock decline from around $30 a stock 5 years ago to basically zero when the group filed for Chapter 11 bankruptcy. And now slowly looking to mend and get the group and its stock price back on its feet. With a stock price history like this it is no real surprise investors are staying away from the group's stock.
Recent coverage of Cumulus Media
The extract below covers the latest on Cumulus Media as obtained from TheStreet,com
ATLANTA, Sept. 18, 2019 (GLOBE NEWSWIRE) -- Cumulus Media Inc. [NASDAQ: CMLS] (the "Company," "Cumulus," "we," "us," or "our") today announced the pricing of a new $525 million senior secured term loan B due March 2026. The new term loan will have an interest rate of LIBOR plus 3.75% with a 1.00% LIBOR floor, issued at 99.5% of par. Proceeds from this issuance, along with cash on hand, will be used to pay down and refinance the Company's existing term loan. Upon the closing of the new term loan, which is expected next week, Cumulus will have fully refinanced the $1.3 billion term loan that the Company assumed upon emergence from Chapter 11 on June 4, 2018. Cumulus's debt will then consist of the $525 million new term loan and $500 million of secured bonds issued in June 2019, representing a $275 million reduction in total debt since emergence. The Company's financial position will be further improved by the lower interest rates and 2026 maturity of the new debt.
ATLANTA, Sept. 18, 2019 (GLOBE NEWSWIRE) -- Cumulus Media Inc. [NASDAQ: CMLS] (the "Company," "Cumulus," "we," "us," or "our") today announced the pricing of a new $525 million senior secured term loan B due March 2026. The new term loan will have an interest rate of LIBOR plus 3.75% with a 1.00% LIBOR floor, issued at 99.5% of par. Proceeds from this issuance, along with cash on hand, will be used to pay down and refinance the Company's existing term loan. Upon the closing of the new term loan, which is expected next week, Cumulus will have fully refinanced the $1.3 billion term loan that the Company assumed upon emergence from Chapter 11 on June 4, 2018. Cumulus's debt will then consist of the $525 million new term loan and $500 million of secured bonds issued in June 2019, representing a $275 million reduction in total debt since emergence. The Company's financial position will be further improved by the lower interest rates and 2026 maturity of the new debt.
Cumulus Media (NASDAQ: CMLS) latest stock valuation
So what is Cumulus Media (NASDAQ: CMLS) stock worth based on the release of their latest earnings report? Based on their earnings report our valuation models provide a target (full value) price for Cumulus Media at $14.90 a stock
We therefore believe that the stock of Cumulus Media is close undervalued but we would advise against buying into the stock of Cumulus just yet. The group emerged from bankruptcy not to long ago and still has a mountain of debt that it needs to pay off. Until such time that significant inroads into their debt reduction is made we would not advise investors to invest in Cumulus Media even if the stock is trading at below our target (full value) price. This target is based on various assumptions and the biggest being the group can continue to pay off debt and improve their current financial position
We therefore believe that the stock of Cumulus Media is close undervalued but we would advise against buying into the stock of Cumulus just yet. The group emerged from bankruptcy not to long ago and still has a mountain of debt that it needs to pay off. Until such time that significant inroads into their debt reduction is made we would not advise investors to invest in Cumulus Media even if the stock is trading at below our target (full value) price. This target is based on various assumptions and the biggest being the group can continue to pay off debt and improve their current financial position
Next earnings release for Cumulus Media
It is expected that Cumulus Media's 4th quarter and full fiscal 2019 earnings will be released towards the middle of February 2020