Cumulus Media Inc Class A (CMLS)CMLS

Cumulus Media Inc Class A (NASDAQ: CMLS): A Comprehensive Overview

Company Profile:

Detailed history and background:

Cumulus Media Inc Class A (CMLS) is a radio broadcasting company founded in 1998. It initially operated as Westwood One, a radio network company, until 2005 when it acquired Cumulus Media, a radio station company. The combined entity became known as Cumulus Media Inc. The company operates approximately 430 radio stations across 88 markets in the United States.

Core business areas:

• Radio broadcasting: Cumulus Media's core business involves owning and operating radio stations in various formats, including news, talk, sports, music, and country.
• Digital media: The company also offers digital media services like podcasts, streaming, and online content.
• Westwood One: Cumulus operates Westwood One, a radio network that distributes news, sports, and entertainment programming to over 7,300 affiliated stations and digital platforms.

Leadership and corporate structure:

• Mary G. Berner: President and Chief Executive Officer
• John M. Abbot: Executive Vice President and Chief Financial Officer
• Jeff D. Brown: Executive Vice President and Chief Operating Officer
• Brian Philips: Chief Digital Officer
• Sean P. Moran: General Counsel and Secretary
• The company's board of directors consists of 11 members, including Mary G. Berner, Michael D. Crean, and Steven A. Farkash.

Top Products and Market Share:

Top products and offerings:

• Radio stations: Cumulus owns and operates a diverse portfolio of radio stations across various formats.
• Westwood One network: The network delivers news, sports, and entertainment programming to a broad audience.
• Digital media: Cumulus offers digital content such as podcasts, streaming, and online news through its stations' websites and apps.

Market share:

• Radio broadcasting: Cumulus is the second-largest radio station owner in the US, with a market share of approximately 6.5%.
• Radio network: Westwood One is the leading radio network in the US, reaching over 245 million listeners.
• Digital media: Cumulus' digital footprint continues to grow, with millions of monthly unique visitors across its station websites and apps.

Product performance and market reception:

• Radio stations: Cumulus stations maintain strong listenership and market share across various formats.
• Westwood One: The network has a loyal audience and enjoys strong relationships with prominent radio personalities and content providers.
• Digital media: Cumulus' digital platforms are experiencing consistent growth in audience engagement and revenue.

Total Addressable Market:

The total addressable market for Cumulus is the US radio advertising market, estimated at approximately $17 billion in 2023. The digital audio advertising market is also significant, with a projected value of $4.9 billion in 2023.

Financial Performance:

Recent financial statements:

• Revenue (2022): $1.59 billion
• Net Income (2022): $41.4 million
• Profit Margin (2022): 2.6%
• Earnings per Share (EPS) (2022): $0.28

Year-over-year comparison:

• Revenue: Increased by 3.4% from 2021
• Net Income: Decreased by 12.2% from 2021
• Earnings per Share: Decreased by 12.5% from 2021

Cash flow and balance sheet:

• Cash flow from operations: $114.6 million in 2022
• Total assets: $2.1 billion in 2022
• Total debt: $1.1 billion in 2022

Dividends and Shareholder Returns:

Dividend history:

• Cumulus has a history of paying dividends, but it suspended them in 2020 due to the COVID-19 pandemic.
• The company resumed dividend payments in 2023 with a current annual dividend of $0.08 per share.

Shareholder returns:

• Over the past year, CMLS stock has returned -4.2%.
• Over the past five years, CMLS stock has returned 34.4%.
• Over the past ten years, CMLS stock has returned 223.5%.

Growth Trajectory:

Historical growth:

• Cumulus has experienced modest revenue growth over the past five years, with a compound annual growth rate (CAGR) of 2.4%.
• The company's net income has fluctuated over the past five years, impacted by factors such as debt restructuring and market conditions.