CMLS - Earnings call transcript Q3 2017

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Operator

Welcome to the Cumulus Media Quarterly Earnings Conference Call. I'll now turn it over to Collin Jones, Senior Vice President of Corporate Development and Strategy. Sir, you may proceed.

Collin Jones

Thank you, operator. Welcome to our Third Quarter 2017 Earnings Call. our Berner; by John our today Abbot. joined CEO, and Mary CFO, I'm

financial link off, statements forward-looking forward-looking note release we expressed may please Before kick the from and certain A of statements securities Actual based that, our on on results are as call reconciliations they and differ can be a our uncertainties. used posted turn both full materially at number this call replay www.cumulus.com/investors. our be be in federal our for of to also implied and non-GAAP After this in These website. found may well under management's current constitute accessed our SEC in to through as XX-Q, will they're also statements portion over to assessments can This terms filings, or the which it corporate website I'll link the a Form be With of and laws. results website. subject is statements. discussed and by the press which risks today can press the can today's description of assumptions these in Investor to presentation, and a be a risks release including around presentation through slide be Mary, of accompanied filed webcast accessed and Time, you. same were call, X:XX Eastern

Mary Berner

release. we One fact grew of consolidated our by estimate momentum final the of we third the our quarter. Westwood and a on for encouraged our that everyone, put we business ago are and group range morning Good for Today, an basis, results both our EBITDA numbers us continued with turnaround the the underscore second station face point XXXX financial in A Colin. operating straight adjusted industry you of both earnings. a is segments. quarter formal plan those hold, weeks pressures, Thanks and taking these On joining today. we pre-released thank negative and the couple In revenue for and

ratings, them. and to initiatives, culture, through performance contribute we more foundational Our blocking execution and and sales going meaningfully expect continue operational forward to tackling,

item new a will over well longer a substantially effort by consolidated term. as revenue grew and On for and As I’m revenue level, adjusted down the give X.X% prior quarter by executed an will EBITDA expense. adjusted for throughout impacted year. driven that side. detail year in our one-time going opportunities reported period, on expense further strategies provide management John this period, in large ex-political, topline over focus increases to X% results, the turnaround last the EBITDA basis, which revenue as grew but one-time X%. by our by growth prior basis, the this more On XX.X% grew the on to Drilling judiciously Normalizing grew the the was year you by expense and segment

and NTR spot industry down digital X.X% to data. revenue Our this down in Group a with environment Station revenue which tough Kaplan X.X% quarter, according Miller and total industry includes operated

is stable outperformed our ex-political an to allowing market. our Station basis. ability X.X% the with beat the more Once down our with However, to engaged of stations in and X.X% ratings work total group us segment revenues improve and on Group substantially a coupled again down for relative force

gains. also quarter quarter in straight quarter fact the market marks fifth row of share and share revenue seventh of In growth this a rating the

at that extends endorsements the the digital is digital of messages collection be the our in C-suite a introduced revenue delivers ago, the we Our On suite advertisers scale. for and to Air Station ways our full digital of to solutions C-Endorsement hold. taking advertisers audience and trusted radio also powerful with product buy. product Group platforms. are that product expand video we marketing through the digital in highly spend sources between their also completed advertising their Two relationship combining endorsement the advertisers a of first designed base our are to mobile improve are radio this In and that quarter, industry social, most the which their and to Videos, initiatives one talent this video roll-out by week help effective other targeted of digital consumers through new local returns announced

months next some On our grown the orbit upcoming industry billing migrate lifts have Group, to system. work to from platform our for XX to traffic operations front, and home the Station standard XX the heavy we system we over wide the as legacy,

XXXX are to established function yield and to continuing initiatives revenue competitive growth strengthening out and our bolster Both we recently continued in of considerable to capabilities. build management to driving these take management formal a our and and beyond. our Additionally, effort essential will bear position pricing

quarters a better We’ve quarter year three Olympics, of consecutive growing after the business the is strong that this and both the sales increasing expense and development one-time sophisticated item large function business. by Moving X.X% I the digital bottom our at more prior the another adjusting growing by EBITDA with Westwood execution, comp and tough benefits driven for grown One market and XX%, on mentioned and growth last One, Westwood from top share in earlier. over delivered for year’s revenue to a and line, quarters, straight network in by now two revenue the the despite even for

revenue both our the quarter. inaugural Next Additionally, franchise contributed quarter in our NASH franchise second now gains at to and EBITDA and NextXRock

a this be low help overall With now is digit, to that mid-single forward. listenership and declining industry and on said critical can critical national at Westwood prior our value focused and measurement expanding impact the the products quarters, of industry targeting advertisers. leading attribution One with I deliver is and platform innovative in to to proposition effort unique data-driven will As services going

we’re One the We that ever in ROI first enhancing purchase the time for A data. audio advertisers the data an branded ever One Radio’s ROI of is well new listing radio weeks established, partnerships in During first with Westwood for behavior. with one quarter, also directly space. for advertiser radio which the now exclusive over these are to with the ago is allow that guarantee, consumers connect Westwood to this validate few advertisers individual high last product, effort way. guarantee patterns the to announced big the partnerships as with we ROI launch but purchasing this able air

podcast, news talk be entertainment, and with music sports, formats. making the side, progress about to are our country, we excited the On we digital of continue leading collection spanning

dollar our less As business quickly, advertising on than call, sold $X,XXX We’ve got first increased last in our I we through both in advertiser a growing new mentioned and multi-million podcast now a force, audio capabilities, demand content. the be of that’s topline for to addition way national and elements talent podcast all necessary of in One others sales Westwood reach, production table promotional with the a space. in meaningful a player to the large the connection its With brings that few can XXXX.

a and face to lack comp, you year-over-year the on high our that we quarter, races year’s will margin that the a will which fourth up. we and year. mostly off-cycle obviously the Now, We October do that substantial fraction comparison X bottom this this quarter, of depress top rather small and political nearly booked heated both political in million I remind year. because political Last in of line looking spend fourth political in

effect We’re in comparison. that by today the already low-single seeing pacing are down pacing we political as impacted digits

earnings we to similar we Excluding of those the are where of at pacing about were quarters flat, political, last call. two in the time each

Finally, before John, turning want I to balance to sheet. comment on over our

As and do to in in debt constraints both the achieve we’ve short term. term quarter our now, said load our for full several ability the long our to business heavy potential

minimal and So it’s restructure to leverage we progress that operations disruption our our the continuing sheet and balance options we available to are explore our to make. reduce imperative with all

goal enter restructuring grace and with discussions effort, the not groups of with on for creditor mind, some discussions been to time. XX day of and in make to our chose So private our we the those week, interest bonds period. as that both part the Last we context now payment in of that in have in

in time our to hope to with that more the and commence of momentum one this groups of turnaround we will John. to third that, will using John, through the a our of quarter creditor restructuring or take develop With both call efforts. We’re detail. implementation continue over I to results continue the will you to our allow us turn who

John Abbot

Mary. you, Thank

the as soft in quarter we declined $XXX.X a Group, Miller which year entirely $XXX.X XXXX, in by an the by for by reported the down was market increase QX At For we million of QX basis markets million revenue by Political Station which a million Radio X.X%. to was well. in environment quarter compared Kaplan driven revenue compete. revenue X.X% higher to contributed which in the the decline $X.X X.X% last on of

on basis, market for the represents quarter, So the fifth context this share down in the X.X% mentioned, in the overall was as Group. at market Group decline, Station straight of but ex-political the the performance an Station Mary quarter gains

ad these results by gains increased for reflected X.X%, in strength also third straight by One, podcast. Westwood sales, syndicated For quarter. services core driven the revenue Overall and share digital

cost in CBS XXXX, quarter an or we XX.X in reported with expenses of on as of Radio. the basis, resolution inventory one-time expenses reported by syndicated disputed to related the of programing expenses; to declined million Turning $XX.X however, million X.X%, QX and

the year. a by from content expenses up These further lower driven in XXXX million, offset inventory by year, terminated X.X% $X lower million in savings year-over-year quarter’s X.X partners were one-time X.X%. normalized or by were expenses $XXX,XXX year-over-year last $X.X for by normalized decreases or partially associated expenses quarter. and higher contracts renegotiated million performance. reductions and driven segment; and CBS expenses Radio in increased Excluding certain commissions revenue One payments expenses from approximately personnel in content in cost by produce also to cost To other for break Station or these the Group QX in reductions down quarter. costs, would declined the the revenue that by the costs decrease decreased increased from Corporate with Westwood the prior

consistent balance to this par, with down significant quarter, estate excluding the however, LA of of that of sales, Related after reported pay our were year had or year; result the guidance, the quarter LA which is that the last versus to XX.X X%. related our billion. As portion of $X.XXX in Below proceeds loan impacted $X.X term a million million in million in at XX.X%. back down, credit a on EBITDA with non-operating net versus XXXX, million in basis, income With $XX.X at on comparison expenditures we we EBITDA that pursuant the the increase in year-over-year year, by agreement. the $XX third loan an estate third our quarter quarter currently note we million delivered these an last But so year, of QX items of of and quarter. to million from X.X that a quarter real no prior the term increased changes, the quarter as adjusted in real the cash of used expenses in $X.X this I’d out of net point in of there closed to terms hand. in our $XX.X third the sale, quarter last In by year, one-time QX million adjusted sites the of million revenue pay XX.X reinvesting and EBITDA capital finished business we expense

plan timing will planning likelihood. still of just buyers ultimately period. contract. a terms Unfortunately, appeal that with approved all the preliminary day our appeal plan for which under to sale transaction D.C. of commission inflows, appeal the in but the planning the have earnings are appeal, clock. In transaction. period pushing Washington which filed now oppose an that The the the approval development that before of still property, the started future allow process Since call, completed, will last be mid-XXXX in the its end anticipate commission we the our property cash the impact XX close-out will We that certainly this us to working consummate to was

the to with everyone To that We $XX subsequently minimum and had related that we in by expectation. listing, NASDAQ on been gross different out mentioned compliance stock notified continue we listing de-listing to proceeds were or of received is notices each. that reasonable million also believe update we a status sales standards two

$X to de-listing before in on rules, NASDAQ sheet listing sheet the second The In we share filed our per definitive October NASDAQ’s appeared an stock these We relates traded business hearing on appeal first the of panel stockholder days. accordance appeal relates anything amount At XX, to we the price and to having the determinations. listing of pending discussions balance our remain with time the ongoing action with don’t below that restructuring our the consecutive for equity have balance and NASDAQ’s and we on to today. status. this appeal report regarding XX

our on period. As continue could significant support been We’ve authorized billing restructure senior either the X-K discussions an X debt or of we notes out to minimizing we payment address a forego Mary also creditor of company using the was effectuated language. of the balances the in contains with potential of on the benefits the that begin connection enter through restructuring a XX XX-Q note we’ve that and a having November implementation that and hope a include In intention that our levels. to Chapter period grace it’s required debt X, develop our the the effort, to in November concerned morning to of our with and this to XX maximizing a that process our efforts It’s interest maintaining to certain with the that disruption result expense process. of issued that be may a restructuring in the said, business significantly our supervised turnaround transaction previous capital goals, committee our desire referenced of Board process, groups while to restructuring Consistent to this our which momentum important restructuring Chapter XX-day our been which and and on due was X.XX% de-levered court our statements, filed the our structure. as way court process discussions

results liquidity that billing concern requires the a billing XX pure that questions in and a could concern address quarter we’ve From we’re language. our reiterate, continue the we our have that evaluation to requirements. capital in all fund restructuring and through to cash attempted comfortable for expenditures that prepared Chapter might capital ample this to Just process to effectuated operating possibility that working transaction With activities, the we a be standpoint, liquidity that remarks.

So we’ll wrap up here. the call

any and reach a to out or to always to with you everyone, speak questions. months. As Thanks Collin feel in free few me follow-up we’ll again

Operator

This you today’s concludes call, now for conference again you Thank us may today. and joining disconnect.

Cumulus Media (CMLS) 9 Nov 172017 Q3 Earnings call transcript