Entercom Q4 Revenues Up 5%, Earnings Decline

RADIO ONLINE | Wednesday, February 22, 2017

Entercom Communications reported fourth quarter net revenues grew 5% to $123.2 million from $117 million in 2015. Station expenses increased 6% to $81.1 million from $76.7 million, while station operating income (SOI) was up 3% to $42.1 million. Adjusted EBITDA was flat at $35.2 million. The company posted a net income of $10.8 million (27 cents per diluted share) as compared to $13.6 million (34 cents) in the year-ago period.

President/CEO David J. Field stated, "Entercom posted another solid quarter of organic growth, completing an excellent year during which same-station revenues increased 4%, adjusted net income grew 13% and free cash flow improved 16%. And since the start of Q4, we have acquired a great new cluster of stations in Charlotte and successfully refinanced our credit facility to drive our interest expense down by roughly $10 million annually."

He continued, "Of course, our biggest news is our recently announced plan to merge with CBS Radio, a transformational event that will create scale-driven opportunities to compete more effectively with other media to accelerate growth. The combined company will be exceedingly well positioned to serve its listeners, advertisers, communities, shareholders, and employees and we are very excited about the opportunities that lie ahead."

As previously reported, Entercom announced an agreement on February 2 to combine with CBS Radio in a tax-free, all stock Reverse Morris Trust transaction. The merger will give the company positions in all of the top 10 markets and 23 of the top 25 markets. Based on Entercom's current stock price, the combined company will have a pro forma equity value of approximately $2 billion. Upon closing of the transaction, the combined company will be continue to be led by David J. Field.