Thursday, November 04, 2021
Cumulus Media (CMLS)
Q3 Gives Credence To Its Favorable 2022 Outlook
CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Favorable Q3 results. While revenues were in line with expectations ($237.7 million versus our estimate of $237.0 million), adj. EBITDA was much better than we thought ($48.5 million versus our estimate of $36.0 million). But, the stand out in the quarter, was the better than expected EBITDA , which reflected aggressive cost reductions. Management indicated that Q3 fixed expenses were reduced by an impressive $10 million. This accounted for virtually all of the upside EBITDA variance.
Reiterates favorable 2022 adj. EBITDA outlook. In spite of some near term revenue headwinds, management appeared sanguine about delivering $175 million to $200 million in adjusted EBITDA for full year 2022. Notably, management plans to deliver more than $70 million in fixed cost reductions in 2022 compared with its 2019 baseline expenses. We believe that the positive upside in EBITDA in Q3 is a …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
