Cumulus Media, Inc. · OTC:CMLSQ
Cumulus Media — Investor Presentation (November 2017)
18 slides from Cumulus Media's investor presentation, Nov 13, 2017
Slide 1: Introduction
In connection with restructuring discussions, Cumulus Media Inc. (“Cumulus” or the “Company”) prepared a long-term business plan and financial forecast (the “Business Plan Forecast”). The Business Plan Forecast is a four year financial forecast of the Company’s existing operations. It also incorpora
Slide 2: Financial Projections
Financial Projections This presentation contains certain financial projections. These financial projections relate to future performance and reflect the Company’s views as of May 31, 2017, subsequently updated for actual financial results, and are subject to known and unknown risks, uncertainties an
Slide 3: General Securities Laws
General Securities Laws This presentation is not, and under no circumstances is to be construed as, an offering to sell or a solicitation to buy the securities referred to herein in any jurisdiction.
Slide 4: Non-GAAP Financial Measure and Definition
Non-GAAP Financial Measure and Definition From time to time the Company utilizes certain financial measures that are not prepared or calculated in accordance with GAAP to assess the Company’s financial performance and profitability. Adjusted EBITDA is the financial metric utilized by the Company to
Slide 5: Turnaround Launch
Turnaround Launch Given the magnitude of Cumulus’s issues, the Turnaround Strategy reflected a logical “order of operations,” with the first phase (beginning in early 2016) focused on Foundational Initiatives that would provide support for sustained improvement. Priorities: Create preconditions for
Slide 6: Next Phase of Turnaround Strategy
Next Phase of Turnaround Strategy Building on Foundational Initiatives, which are already contributing to improved performance, Cumulus is now implementing additional initiatives to drive EBITDA. Operational Blocking and Tackling Ratings Culture Sales Execution Revenue Programs Digital Pricing / Inv
Slide 7: Key Assumptions for Business Plan Forecast
Below is a description of key assumptions for the Business Plan Forecast. Key Assumptions for Business Plan Forecast Revenue Assumptions Market Forecast 1.0% annual decline in total radio industry revenue RSG Overall market share gains in transactional (agency-driven) and local spot revenues WWO Sal
Slide 8: Foundational Initiatives Assumptions
Foundational Initiatives Assumptions Revenue RSG: Ratings Low single digit ratings share increases RSG: Sales Execution Improving conversion of ratings share growth into revenue share growth over time WWO 1.0% YoY growth in total impressions Market-driven CPM declines of 1.0% YoY (offset by EBITDA E
Slide 9: EBITDA Expansion Initiatives Assumptions
EBITDA Expansion Initiatives Assumptions Revenue Digital C-Suite: Integrated portfolio of branded Cumulus streaming products and (white label) digital solutions Westwood One Podcasts Streaming / Display: Partnership with NextRadio Pricing / Inventory Management Implementation of third party pricing
Slide 10: Historical Industry Revenue
The data below represents aggregate radio industry spot ad revenue for the 52 markets where Cumulus operates. Historical Industry Revenue ($ in millions)
Slide 11: Broadcasting Revenue Share Projections
The Business Plan Forecast for Station Group revenue is based on management’s projections of ratings and the conversion of these ratings into ad sales. Note: Revenue Share Growth is inclusive of broadcasting revenue on account of both Foundational Initiatives as well as EBITDA Expansion Initiatives.
Slide 12: Business Plan Forecast: Projected EBITDA
Projected EBITDA under the Business Plan Forecast is summarized below, with the estimated collective impact of Foundational Initiatives and EBITDA Expansion Initiatives shown in green. Excludes $17.8mm in one-time expenses. Based on management forecasts of overall revenue trends in markets where Cum
Slide 13: Business Plan Forecast: Cash Flow Projections
The cash flow projections do not include current or pro forma (post-restructuring) debt service and any related tax consequences, or any debt restructuring-related professional fees. Note: In late August, the Company paid down its Term Loan by ~$82mm pursuant to its requirement to repay the proceeds
Slide 14: Business Plan Forecast: Further Segment Breakdown
2016 includes a $3.2mm addback for one-time ASCAP / BMI expenses. 2016 includes a $14.6mm addback for one-time expenses related to CBS settlement. Business Plan Forecast: Further Segment Breakdown
Slide 15: Q2 Financial Results
Management believes that Q2 performance demonstrates positive impact from the Foundational Initiatives. Q2 2016 reflects an addback for a one-time $4.0mm music licensing expense to make results more comparable to Q2 2017. Reflects an addback for expenses related to CBS settlement in Q3 2016. Q2 Fina
Slide 16: Q3 Revenue Pacing
The data below represents booked Q3 revenue as of September 11, 2017, compared with the amount booked for Q3 at the same time one year prior. Q3 Revenue Pacing
Slide 17: Real Estate
The Company has approximately 185 properties that management believes have a value below the $20 million threshold from the credit agreement. Based upon internal analysis, the Company estimates that these properties could have a value of $60 to 100 million. No formal appraisals have been completed.
Slide 18: Contract Savings
Management has identified $30-45 million of present value savings that could be achieved as a result of rejecting certain contracts in chapter 11, which would be incremental to the cost savings captured in the Business Plan Forecast. All or a portion of these savings could be achieved through renego
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