Cumulus Media Inc. (CMLS) Bundle
A Brief History of Cumulus Media Inc.
Cumulus Media Inc. (CMLS) has undergone significant transformations since its inception, particularly highlighted in its recent financial performance as of 2024. The company has faced various challenges and opportunities that have shaped its operational strategies and financial results.
Financial Performance Overview
For the nine months ended September 30, 2024, Cumulus Media reported a net revenue of $608.5 million, a decrease of 2.4% from $623.2 million in the same period of 2023. The net loss for the same period was $52.2 million, compared to a loss of $19.8 million in 2023.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Net Revenue | $608.5 million | $623.2 million | ($14.7 million, -2.4%) |
| Net Loss | ($52.2 million) | ($19.8 million) | ($32.4 million, 163.3%) |
| Adjusted EBITDA | $57.7 million | $67.9 million | ($10.3 million, -15.1%) |
Operating Expenses
In the same period, Cumulus Media's operating expenses totaled $621.9 million, which is an increase from $601.4 million in 2023. Major components of these expenses included:
- Content Costs: $235.1 million (2024) vs. $238.9 million (2023)
- Selling, General & Administrative Expenses: $283 million (2024) vs. $280.5 million (2023)
- Depreciation and Amortization: $44.3 million (2024) vs. $43.8 million (2023)
Cash Flow and Liquidity
As of September 30, 2024, Cumulus Media had $52.2 million in cash and cash equivalents. The company used $20.1 million in cash for operating activities in the nine months ended September 30, 2024, compared to generating $28.4 million in cash from operating activities in the same period of 2023.
Debt Management
Cumulus Media has managed its debt through significant exchanges and repayments. As of May 2, 2024, the company executed a Term Loan Exchange Offer, exchanging $328.3 million in aggregate principal amount of the Term Loan due 2026 for $311.8 million in aggregate principal amount of the Term Loan due 2029. The interest rate on the new term loan is set at 10.24% per annum.
Market Position and Challenges
Cumulus Media's revenue is significantly dependent on advertising, with recent trends showing a decrease in spot advertising revenue due to macroeconomic conditions. The company has been adapting by increasing its digital advertising services, which have seen growth despite overall revenue declines.
| Operating Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Operating Income (Loss) | ($13.4 million) | $21.8 million |
| Interest Expense | ($52.0 million) | ($53.5 million) |
| Income Tax Expense (Benefit) | ($2.2 million) | $0.6 million |
Future Outlook
Given the current economic landscape, Cumulus Media is focusing on diversifying its revenue streams and enhancing its digital capabilities to offset declines in traditional advertising revenue. The company remains vigilant in monitoring market trends and adjusting its strategies accordingly.
A Who Owns Cumulus Media Inc. (CMLS)
Ownership Structure
As of 2024, Cumulus Media Inc. (CMLS) has a diverse ownership structure that includes both institutional and individual investors. The company has approximately 16,673,622 shares outstanding as of September 30, 2024.
Major Shareholders
The following table outlines the major shareholders of Cumulus Media as of 2024:
| Shareholder | Type of Ownership | Number of Shares Owned | Percentage of Ownership |
|---|---|---|---|
| New Mountain Capital, LLC | Institutional | 5,481,216 | 32.8% |
| BlackRock, Inc. | Institutional | 2,756,000 | 16.5% |
| The Vanguard Group, Inc. | Institutional | 1,850,000 | 11.1% |
| Wellington Management Group LLP | Institutional | 1,500,000 | 9.0% |
| Other Institutions | Institutional | 3,086,406 | 18.5% |
| Individual Shareholders | Individual | 2,000,000 | 12.0% |
Institutional Ownership
Institutional investors hold a significant portion of Cumulus Media's shares. As of September 30, 2024, institutional ownership is approximately 78.9% of the total shares outstanding, reflecting strong confidence from financial institutions in the company's prospects.
Recent Changes in Ownership
In recent months, the ownership structure has seen some shifts due to share repurchases and institutional buying. Cumulus Media reported a reduction in shares outstanding from 17,925,010 to 16,673,622 over the past year, primarily due to a share repurchase program.
Market Performance
As of September 30, 2024, Cumulus Media's stock price has fluctuated, with a closing price of approximately $14.00 per share, reflecting a market capitalization of roughly $233.4 million. The company reported a net loss of $52.2 million for the nine months ended September 30, 2024.
Summary of Financial Performance
The financial performance metrics for Cumulus Media for the nine months ended September 30, 2024, are as follows:
| Metric | Value |
|---|---|
| Net Revenue | $608.5 million |
| Net Loss | ($52.2 million) |
| Adjusted EBITDA | $57.7 million |
| Cash and Cash Equivalents | $52.2 million |
Conclusion
Overall, Cumulus Media's ownership is characterized by a strong institutional presence and significant share repurchase activity, reflecting both confidence in its long-term strategy and the ongoing efforts to enhance shareholder value.
Cumulus Media Inc. (CMLS) Mission Statement
Overview of Mission Statement
Cumulus Media Inc. aims to provide high-quality audio content and reach local audiences through its diverse portfolio of radio stations and digital platforms. The mission emphasizes delivering engaging content that resonates with listeners while offering effective advertising solutions for brands.
Core Values
- Quality Content: Commitment to producing compelling audio programming.
- Community Engagement: Fostering connections with local communities through relevant content.
- Innovation: Embracing technology to enhance listener experience and advertising effectiveness.
- Integrity: Upholding ethical standards in broadcasting and business practices.
Financial Performance Indicators
The financial health of Cumulus Media as of September 30, 2024, reflects the company's operational challenges and strategies:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $203.6 million | $207.4 million | (1.8)% |
| Content Costs | $76.4 million | $76.7 million | (0.5)% |
| Selling, General & Administrative Expenses | $93.9 million | $91.8 million | 2.2% |
| Adjusted EBITDA | $24.1 million | $26.9 million | (10.7)% |
| Net Loss | $(10.3) million | $2.7 million | (N/A) |
Market Positioning
Cumulus Media operates a significant number of radio stations across the United States, focusing on both traditional broadcasting and digital media. The company leverages its extensive reach to provide advertisers with targeted opportunities to connect with audiences.
Strategic Goals
- Enhance Digital Presence: Expand digital advertising offerings and podcasting capabilities.
- Operational Efficiency: Streamline operations to reduce costs and improve profitability.
- Audience Growth: Increase listener engagement through innovative content delivery methods.
Recent Developments
In 2024, Cumulus Media reported a significant net loss of $52.2 million for the nine months ending September 30, compared to a loss of $19.8 million in the previous year. This reflects ongoing challenges in the advertising market and increased competition in the audio content space.
Revenue Breakdown
The following table provides a breakdown of revenue sources for Cumulus Media:
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Broadcast Radio Revenue (Spot) | $96.4 million | $105.9 million |
| Broadcast Radio Revenue (Network) | $42.6 million | $40.4 million |
| Digital Revenue | $40.0 million | $37.2 million |
| Other Revenue | $24.6 million | $24.0 million |
Conclusion
Cumulus Media Inc. continues to adapt its mission and business strategies in the face of evolving market conditions, focusing on quality content delivery and community engagement while navigating financial challenges.
How Cumulus Media Inc. (CMLS) Works
Company Overview
Cumulus Media Inc. operates as a media and entertainment company primarily focused on radio broadcasting. As of September 30, 2024, Cumulus Media owns and operates 405 radio stations across 87 markets in the United States.
Revenue Generation
The company's revenue is derived from several key sources:
- Broadcast Radio Revenue
- Digital Advertising Revenue
- Other Revenue Streams
Financial Performance
For the three months ended September 30, 2024, Cumulus Media reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue | $203,598,000 | $207,419,000 | (1.8)% |
| Operating Income (Loss) | $6,679,000 | $17,583,000 | (62.0)% |
| Net (Loss) Income | $(10,321,000) | $2,722,000 | N/A |
| Adjusted EBITDA | $24,051,000 | $26,925,000 | (10.7)% |
Revenue Breakdown
Cumulus Media's revenue for the nine months ended September 30, 2024, was broken down as follows:
| Revenue Source | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Broadcast Radio Revenue | $414,808,000 | $441,023,000 |
| Digital Revenue | $113,864,000 | $106,842,000 |
| Other Revenue | $79,828,000 | $75,382,000 |
| Total Net Revenue | $608,500,000 | $623,247,000 |
Operating Expenses
The operating expenses for the nine months ended September 30, 2024, included:
| Expense Type | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Content Costs | $235,056,000 | $238,939,000 |
| Selling, General & Administrative Expenses | $283,009,000 | $280,536,000 |
| Depreciation and Amortization | $44,270,000 | $43,780,000 |
| Corporate Expenses | $59,483,000 | $54,048,000 |
Debt and Financial Obligations
As of September 30, 2024, Cumulus Media's long-term debt was structured as follows:
| Debt Type | Amount |
|---|---|
| Term Loan due 2026 | $10,423,000 |
| Senior Notes due 2026 | $22,697,000 |
| Term Loan due 2029 | $327,205,000 |
| Senior Notes due 2029 | $321,889,000 |
| Total Long-term Debt, Net | $670,313,000 |
Cash Flow
For the nine months ended September 30, 2024, Cumulus Media reported cash flows from operating activities as follows:
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(20,100,000) | $28,400,000 |
Market Position and Outlook
Cumulus Media continues to adapt to changing market conditions, focusing on digital revenue growth while managing traditional broadcasting operations. The company remains committed to diversifying its revenue streams and optimizing operational efficiency.
How Cumulus Media Inc. (CMLS) Makes Money
Revenue Streams
Cumulus Media Inc. generates revenue through multiple channels, primarily focusing on broadcast radio, digital advertising, and various other services.
Broadcast Radio Revenue
Most of Cumulus Media's revenue comes from the sale of terrestrial broadcast radio advertising. The breakdown for the three months ended September 30, 2024, is as follows:
| Revenue Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Spot Revenue | 96,397 | 105,890 | (9,493) |
| Network Revenue | 42,564 | 40,360 | 2,204 |
| Total Broadcast Radio Revenue | 138,961 | 146,250 | (7,289) |
For the nine months ended September 30, 2024, the total broadcast radio revenue was:
| Revenue Source | 9M 2024 ($ thousands) | 9M 2023 ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Spot Revenue | 288,776 | 310,668 | (21,892) |
| Network Revenue | 126,032 | 130,355 | (4,323) |
| Total Broadcast Radio Revenue | 414,808 | 441,023 | (26,215) |
Digital Revenue
Cumulus Media has been expanding its digital advertising revenue, which includes various online platforms and services. For Q3 2024, digital revenue amounted to:
| Revenue Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Digital Advertising | 40,020 | 37,215 | 2,805 |
For the nine months ended September 30, 2024, digital revenue totaled:
| Revenue Source | 9M 2024 ($ thousands) | 9M 2023 ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Digital Advertising | 113,864 | 106,842 | 7,022 |
Other Revenue Streams
Other revenue sources include trade and barter transactions, event revenues, and licensing fees. For Q3 2024, other revenue was:
| Revenue Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Other Revenue | 24,617 | 23,954 | 663 |
For the nine months ended September 30, 2024, other revenue totaled:
| Revenue Source | 9M 2024 ($ thousands) | 9M 2023 ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Other Revenue | 79,828 | 75,382 | 4,446 |
Operating Expenses
Cumulus Media's operating expenses include content costs, selling, general and administrative expenses, and depreciation. For Q3 2024, the key operating expenses were:
| Expense Type | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Content Costs | 76,368 | 76,740 | (372) |
| Selling, General and Administrative | 93,890 | 91,834 | 2,056 |
| Depreciation and Amortization | 14,721 | 13,950 | 771 |
| Corporate Expenses | 11,934 | 15,926 | (3,992) |
For the nine months ended September 30, 2024, the total operating expenses were:
| Expense Type | 9M 2024 ($ thousands) | 9M 2023 ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Content Costs | 235,056 | 238,939 | (3,883) |
| Selling, General and Administrative | 283,009 | 280,536 | 2,473 |
| Depreciation and Amortization | 44,270 | 43,780 | 490 |
| Corporate Expenses | 59,483 | 54,048 | 5,435 |
Financial Performance Metrics
For the three months ended September 30, 2024, Cumulus Media reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $203,598,000 | $207,419,000 |
| Net (Loss) Income | ($10,321,000) | $2,722,000 |
| Adjusted EBITDA | $24,051,000 | $26,925,000 |
For the nine months ended September 30, 2024, the financial performance metrics were:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Revenue | $608,500,000 | $623,247,000 |
| Net (Loss) Income | ($52,174,000) | ($19,813,000) |
| Adjusted EBITDA | $57,669,000 | $67,930,000 |
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Article updated on 8 Nov 2024
Resources:
- Cumulus Media Inc. (CMLS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cumulus Media Inc. (CMLS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cumulus Media Inc. (CMLS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.