Cumulus Lost $14.4 Million in Q1


With net income of $24.7 million from the radio stations Cumulus operates, it still lost (net) $14 million in the quarter, compared to $12 million a year earlier. Westwood One lost $2.8 million and the company reported a $36.3 million loss in the corporate department. CEO Mary Berner says she is acutely aware that the challenges Cumulus faces with the balance sheet are significant.   “We are reviewing all available options to maximize value for the company and give us the time and the operational runway needed to turn around the business.” The company has $2.4 billion in debt.

Berner says the pressure of Cumulus debt has a direct impact on how the company functions every day. “Contracts are getting squeezed, recruitment can be challenging and normal business activities are becoming increasingly difficult o expensive. That impact is real and unavoidable. Until we address the balance sheet we will continue to be hindered in our ability to capitalize on the early progress we have made with our turnaround initiatives. We are in the early innings of a multi-year turnaround. The challenges before us are substantial.”

CFO J.P Hannan said the company is still in non-compliance with NASDAQ (they need to have a stock price of more than $1.00 for ten consecutive trading days). Its stock has been trading at less than $1 a share since September. Cumulus applied to the NASDAQ capital market tier which gave the company another 180 days to get into compliance. “Should we not reach this target, we will be evaluating al options, which could include a reverse stock split in the near future.”


  1. We wonder if silver-spooned Lew Dickey still feels high and mighty?? Typical siver-spooned rich kid… he screwed up Daddy’s company. Guess he’s not flying around the country anymore, ruining radio property after radio property that were once great stations. The sad thing is, Dickey ruined a lot of careers and cost people a lot of jobs, but he’s still rich and comfortable. Too bad Dickey couldn’t get into Pandora management… he could ruin them and that would help radio!!

  2. Is Cumulus like the wolf that has to chew its own leg off to get out of the trap? So far.
    Unfortunately, 3-legged wolves have little chance of ever hunting again.
    However, there is no need to think of their situation as one of being trapped.
    There are alternatives. It’s just that the leadership has (likely) yet to be exposed to such alternatives.
    If they have, those alternatives have been rejected without due consideration.
    Meanwhile, shareholders have been glaring at this morning’s share prices which have fluctuated between 35 and 40 cents.
    How much Kool-Aid is being force-fed to the rank and file, I have to wonder.


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