ATLANTA, GA — August 20, 2018: Cumulus Media Inc. (NASDAQ: CMLS) (the “Company,” “we,” “us,” or “our”) today announced operating results for the three and six months ended June 30, 2018. As described in more detail below, results for the 2018 periods reflect the combined results of the Successor and Predecessor Companies in connection with the Company’s emergence from Chapter 11. For the three months ended June 30, 2018, the Company reported net revenue of $285.2 million, down 1.8% from the three months ended June 30, 2017, net income of $706.1 million and Adjusted EBITDA of $66.4 million, which was down 1.5% from the three months ended June 30, 2017. For the six months ended June 30, 2018, the Company reported net revenue of $548.9 million, down 1.0% from the six months ended June 30, 2017, net income of $701.1 million and Adjusted EBITDA of $106.6 million, which was up 0.5% from the six months ended June 30, 2017. Net income for the three and six months ended June 30, 2018 included after-tax gains associated with the Company’s emergence from Chapter 11 of $671.0 million and $641.0 million, respectively.
As previously disclosed, on November 29, 2017, the Company and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code (“Chapter 11”) in the United States Bankruptcy Court for the Southern District of New York (the “Court”). On May 10, 2018, the Court entered an order confirming the Company’s Plan of Reorganization (the “Plan”). On June 4, 2018, the Plan became effective in accordance with its terms and the Company emerged from Chapter 11.
The Company’s operating results and key operating performance measures on a consolidated basis, as well as within the Cumulus Radio Station Group and Westwood One, were not materially impacted by the reorganization. For the purposes of the analysis of the results presented herein, the Company is presenting the combined results of operations for (1) the period June 4, 2018 to June 30, 2018 of the Successor Company with the period April 1, 2018 to June 3, 2018 of the Predecessor Company, and (2) the period June 4, 2018 to June 30, 2018 of the Successor Company with the period January 1, 2018 to June 3, 2018 of the Predecessor Company. Although, this presentation is not in accordance with accounting principles generally accepted in the United States, the Company believes presenting and analyzing the combined results allows for a more meaningful comparison of results for the three and six month periods ended June 30, 2018 to the three and six months ended June 30, 2017. For more information regarding the Predecessor and Successor Company results, please see the Company’s Form 10-Q for the quarter ended June 30, 2018 to be filed with the Securities and Exchange Commission (the “SEC”) on August 20, 2018.
Mary Berner, President and Chief Executive Officer of Cumulus Media said, “In the second quarter, we emerged from Chapter 11 with new and supportive ownership, a billion dollars less debt and results that demonstrate our operational and financial momentum, despite industry challenges and the distractions posed by our Chapter 11 proceedings. Normalizing those results for $4.8 million of write-offs related to United States Traffic Network’s well-publicized financial problems, our Adjusted EBITDA grew in the quarter by 5.5%.”
Berner continued, “Looking forward, we are excited about the potential of our digital products, improved pricing and inventory management across the entire platform and our young but fast-growing podcasting business to supplement the performance of our core business. These growth drivers, combined with our continued focus on operating fundamentals, our reduced debt load, our ability to generate significant free cash flow and our renewed focus on optimization of our portfolio of assets, position us well to build substantial shareholder value in the quarters and years to come.”