Cumulus Media Reports Operating Results for the Second Quarter 2020 and Announces Definitive Agreement to Monetize Tower Portfolio for $213 Million
ATLANTA, Aug. 10, 2020 — Cumulus Media Inc. (NASDAQ: CMLS) (the “Company,” “Cumulus Media,” “we,” “us,” or “our”) today announced operating results for the three and six months ended June 30, 2020.
Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, “Despite the COVID-19 pandemic’s material impact on revenue, the Company generated over $90 million of cash in the quarter through quick and decisive expense actions, strong working capital management and the completion of the sale of land in Bethesda, MD. Ending the quarter with nearly $200 million of cash, we have also entered into an agreement to monetize our tower portfolio for more than $210 million, proceeds which will further add to our liquidity and contribute to significant incremental debt paydown. Our demonstrated ability to rise to a challenge, strong liquidity position and resilient balance sheet are critical assets as we operate through this uncertain environment, and we believe we remain very well-positioned to drive long-term shareholder value through continued aggressive debt reduction and the execution of our growth initiatives.”
Key Highlights:
- Meaningfully mitigated pandemic’s Q2 impacts through significant fixed cost expense reductions
- Nearly $36 million realized in Q2
- Total reductions of more than $85 million expected in 2020
- Delivered sequential monthly revenue and EBITDA improvement through the quarter
- Continued to deliver profitable growth in digital
- Posted positive EBITDA in June
- Substantially increased liquidity and strengthened balance sheet
- Grew cash balance to $197 million, up $91 million from Q1
- Achieved net debt reduction of approximately 10% since March
- Generated $28 million of cash from operations and netted $66 million of additional cash from completion of the sale of land in Bethesda, MD in Q2
- Maintained balance sheet flexibility with no funded debt maturity prior to 2026 or financial maintenance covenants
- Executed agreement to monetize tower portfolio and related assets for $213 million
- Expect funds from deal completion to permit substantial debt paydown and provide additional liquidity
- Anticipate first closing for 85% or more of proceeds in Q4