Those were the words of Cumulus CEO Mary Berner and CFO John Abbot, who reported the company’s quarterly earnings to investors and employees Monday — the first such call since Cumulus’ emergence from bankruptcy on June 4. Berner said the Cumulus business model is solid.
Cumulus emerged from bankruptcy with $1 billion in debt off its books, wiping out about half the debt the company had. The bankruptcy also helped Cumulus escape from what Berner called “unfavorable contracts.”
After stating that what she came upon in late 2015 was a broken company, Berner now says everything is headed in the right direction. “The turnaround was strong, we addressed the debt, we reversed the slide in the ratings, overhauled sales execution, and changed the culture.” Berner will soon be coming up on her three-year anniversary as Cumulus’ CEO.
Berner expects the company to throw off $100 million per year in free cash flow for years to come, which will help the company pay down even more debt.
Abbot said Cumulus is “glad to be back and out of Chapter 11, and we are pleased with the outcome.”