Cumulus Media Earnings: Costs Climb, Revenue Plummets

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Cumulus Media Inc. (NASDAQ:CMLS) reported a drop to a loss in the first quarter driven by higher costs. Cumulus Media is a radio broadcasting company that owns and operates FM and AM radio station clusters serving mid-sized markets throughout the United States.

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Cumulus Media Earnings Cheat Sheet for the First Quarter

Results: Reported a loss of $1.2 million (12 cents per diluted share) in the quarter. Cumulus Media Inc. had a net income of $16.1 million or 37 cents per share in the year-earlier quarter.

Revenue: Fell 57.6% to $24.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cumulus Media Inc. fell short of the mean analyst estimate of a loss of 3 cents per share. It fell short of the average revenue estimate of $252.7 million.

Quoting Management: Lew Dickey, Chairman & CEO stated, “The first quarter of 2012 was marked by significant progress in our integration of Citadel as we build Cumulus into a robust platform company that strategically monetizes content, distribution and technology. Complementing this progress was the continued deleveraging of our balance sheet, as well as strategic portfolio management that will enable us tremendous financial flexibility going forward.”

Key Stats:

A year-over-year revenue decrease last quarter breaks a two-quarter streak of revenue increases. Revenue rose more than fourfold in the fourth quarter of the last fiscal year and 96.1% in the third quarter of the last fiscal year.

For two quarters in a row, the company has come in under analyst estimates. In the fourth quarter of the last fiscal year, it missed expectations by 11 cents with a loss of 7 cents versus a mean estimate of net income of 4 cents per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the second quarter is 8 cents per share, a drop from 13 cents. The average estimate for the fiscal year is now 26 cents per share, down from 44 cents sixty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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