Cumulus Media Inc. (NASDAQ:CMLS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 08:30 am ET


Cumulus Media Inc. (NASDAQ:CMLS) Q2 2020 Earnings Conference Call - Final Transcript


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Welcome to the Cumulus Media Quarterly Earnings Conference Call.

I'll now turn it over to Collin Jones, Senior Vice President of Corporate Development & Strategy. Sir, you may proceed.

Collin Jones

Thank you, operator.

Welcome, everyone, to our second quarter 2020 earnings conference call. I'm joined today by our President and CEO, Mary Berner; and our CFO, Frank Lopez-Balboa.

Before we start, please note that certain statements in today's press release and discussed on this call may constitute forward-looking statements under federal securities laws. Actual results may differ materially from the results expressed or implied in forward-looking statements. These statements are based on management's current assessments and assumptions, and they are subject to a number of risks and uncertainties.

In addition, we will also use certain non-GAAP financial measures. We believe the supplementary information is useful to investors, although it should not be considered superior to the measures presented in accordance with GAAP. A full description of these risks as well as financial reconciliations to non-GAAP terms are in our press release and SEC filings.

The press release can be found in the Investor Relations portion of our website and our Form 10-Q was also filed with the SEC shortly before this call. A recording of today's call will be available for about a month, and details for how to access that replay can also be found on our website.

With that, I'll now turn it over to our President and CEO, Mary Berner. Mary?

Mary Berner

Thanks, Collin, and good morning, everyone.

I'd like to start the call by reiterating a point we made on our last call. This Company executed a turnaround before this pandemic crisis and built a track record of both delivering strong financial results and disciplined execution. Notably, we completed a wholesale transformation of the Company's organization and culture. We achieved multiple years of revenue and EBITDA growth, including industry-leading digital revenue growth. We expanded our assets from our on-air foundation to become a multi-channel multi-platform media company with profitable beachheads in high growth segments of the audio ecosystem. We generated significant and consistent free cash flow. We paid down a material level of debt, and we established a strong and flexible balance sheet. As a result, the Company entered the pandemic with significant momentum and in a position of strength and as such is well equipped to deal with and navigate through this disruption regardless of how long it takes.

I also told you that to weather the impacts of the COVID-19 crisis we would rely on our core and well-honed management practices: acute focus, decisive action and efficient execution. During Q2, those practices paid off as we have made fast and meaningful progress to address the revenue impacts of the pandemic, bolster our staying power and position ourselves for long-term success when the crisis abates.

During the quarter, on top of what we announced on our last call, we enacted significant additional and largely permanent expense cuts, bringing the total expected realized fixed cost reductions to $85 million