Cumulus Media, Inc. · OTC:CMLSQ
Cumulus Media — J.P. Morgan 2019 Global High Yield & Leveraged Finance Conference
21 slides from Cumulus Media's conference presentation, Feb 26, 2019
Slide 1: J.P. Morgan 2019 Global High Yield & Leveraged Finance Conference
J.P. Morgan 2019 Global High Yield & Leveraged Finance Conference President & CEO, Mary Berner EVP, CFO & Treasurer, John Abbot February 26, 2019
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS Forward-Looking Statements: Certain statements in this presentation may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Such statements are statements other than historical fa
Slide 3: Cumulus Media connects with 245 million people each week
CUMULUS MEDIA connects with 245 million people each week across multiple platforms with premium content from a portfolio of exclusive, proprietary and licensed programming including leading sports, news and entertainment brands 3
Slide 4: Leading Local & National Audio Platform
LEADING LOCAL & NATIONAL AUDIO PLATFORM LOCAL, NATIONAL & NETWORK SALES NATIONAL AUDIO NETWORK 1,000+ person sales organization 8,000 affiliate stations LOCAL DIGITAL MARKETING OWNED & OPERATED SERVICES SALES RADIO STATIONS 433 stations in NATIONAL PODCAST SALES 89 markets DATA CAPABILITIES MOBILE &
Slide 5: Key Strategic Priorities
KEY STRATEGIC PRIORITIES ENHANCING GROWING OPTIMIZING OPERATING DIGITAL PORTFOLIO PERFORMANCE BUSINESSES Initiatives to grow Investment and M&A to achieve market share, initiatives to drive and/or expand maximize inventory growth in high leadership positions or value and improve potential digital au
Slide 6: Financial Goals
FINANCIAL GOALS 1 2 3 Generate Reduce Invest in as much as net leverage to opportunities with $100 MM < 4.0x meaningful of free cash flow as quickly growth or valuation per year as possible potential 6
Slide 7: Pre-Release of Q4 & Full Year 2018 Results
PRE-RELEASE OF Q4 & FULL YEAR 2018 RESULTS Q4 2018 Financial Highlights: Net revenue of $307 – 309 mm (+4.5 to +5.2% YoY) Adjusted EBITDA of $64 – 66 mm (+28.4 to +32.4% YoY) FY 2018 Financial Highlights: Net revenue of $1.139 – 1.141 bn (+0.3 to +0.5% YoY) Adjusted EBITDA of $233 – 235 mm (
Slide 8: Pre-Release of Q4 & Full Year 2018 Results
PRE-RELEASE OF Q4 & FULL YEAR 2018 RESULTS First full year of net revenue growth in four years, despite overall industry declines Digital growth of more than 60%, accelerating throughout the year Eight straight quarters of revenue market share gains(1) Adjusted EBITDA growth for the second con
Slide 9: Key Strategic Priorities
KEY STRATEGIC PRIORITIES ENHANCING GROWING OPTIMIZING OPERATING DIGITAL PORTFOLIO PERFORMANCE BUSINESSES Initiatives to grow Investment and M&A to achieve market share, initiatives to drive and/or expand maximize inventory growth in high leadership positions or value and improve potential digital au
Slide 10: Key Strategic Priorities: Enhancing Operating Performance
KEY STRATEGIC Cross-Platform Pricing & PRIORITIES Inventory Management • New traffic/billing systems, business intelligence tools and revenue management function • Ability to optimize inventory across sales channels ENHANCING increasing, allowing Company to respond to changes in OPERATING local/nati
Slide 11: Key Strategic Priorities: Growing Digital Businesses
KEY STRATEGIC Cumulus Radio Station Group Digital Initiatives PRIORITIES • CRSG digital growth of more than 45% year-over year in 2018, exceeding industry growth by more than 5x(1) • Full-spectrum local digital GROWING marketing services platform DIGITAL • EPiC Guarantee for local BUSINESSES adverti
Slide 12: Key Strategic Priorities: Optimizing Portfolio
KEY STRATEGIC Sale of Six Stations to Educational Media PRIORITIES Foundation for $103.5 mm • $5-7 mm of collective EBITDA contribution from sold stations OPTIMIZING • Expected net proceeds of $80-90 mm PORTFOLIO Swap of Stations with Entercom Communications 12
Slide 13: Financial Goals
FINANCIAL GOALS 1 2 3 Generate Reduce Invest in as much as net leverage to opportunities with $100 MM < 4.0x meaningful of free cash flow as quickly growth or valuation per year as possible potential 13
Slide 14: Significant Free Cash Flow Generation
SIGNIFICANT FREE CASH FLOW GENERATION Return to maintenance level of capex Expect to in 2019 of $20-25 mm per year generate as much as Low working capital requirements $100 mm of free cash flow Complicated tax profile but favorable per year over tax attributes following restructuring the next severa
Slide 15: Prioritization of Deleveraging
PRIORITIZATION OF DELEVERAGING Utilized $50 mm of cash on hand to make a discounted, voluntary prepayment xAdjusted Coupon ($ in mm) Focused on 12/31/18 EBITDA (bps) Maturity Unrestricted cash$ 27.6 achieving ABL revolver ($50 mm)(1) - L+125-175 Aug-23 First lien term loan 1,243.3 L+450 May-22 < 4.0
Slide 16: Questions?
QUESTIONS?
Slide 17: Appendix
APPENDIX
Slide 18: Reconciliation of Non-GAAP Terms
RECONCILIATION OF NON-GAAP TERMS 18
Slide 19: Reconciliation of Non-GAAP Terms
RECONCILIATION OF NON-GAAP TERMS 19
Slide 20: Reconciliation of Non-GAAP Terms
RECONCILIATION OF NON-GAAP TERMS 20
Slide 21: Reconciliation of Non-GAAP Terms
RECONCILIATION OF NON-GAAP TERMS 21
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