Entercom Q4 Net Revenues Grew 1% to $414M, Loss Widens

RADIO ONLINE | Tuesday, February 25, 2020

Entercom

Entercom Communications reported fourth quarter net revenues rose one percent to $414.1 million as compared to $411.4 million in 2018. Operating loss for the quarter was $455.5 million up from $377.6 million, while Adjusted EBITDA grew 2% to $113 million from $111.1 million. The company posted a net loss of $487.5 million ($3.64 per diluted share) as compared to a net loss of $386.9 million ($2.80) in the year-ago period. Adjusted net income per diluted share was 40 cents compared to 35 cents.

"I am pleased to report that Entercom achieved its fifth consecutive quarter of growth, completing a year in which the company delivered strong financial performance as Net Revenue, Adjusted EBITDA, and Adjusted Net Income Per Share grew 2% (3% ex-political), 10%, and 19%, respectively," stated Entercom Chairman, President and CEO David J. Field. "Our significant investments in podcasting, digital, and data and analytics, along with the expansion of our sports, networks and events businesses, are beginning to reshape our company and position us for sustained growth as we enhance our integrated, multi-platform offerings to advertisers increasingly interested in the undervalued and emerging audio space."

In February, Entercom announced an agreement to sell WAAF-FM/Boston to Educational Media Foundation (EMF) for $10.8 million in cash. EMF began programming the station on February 22 under a network affiliation agreement. The transaction is expected to close in the second quarter of 2020.

In December, the company executed a debt transaction in which it extended the maturity of most of its revolving credit facility from November, 2022 to August, 2024, lowered the margin on its Term Loan B by 25 basis points and issued an additional $100 million of its senior secured second-lien notes. The company used the proceeds of the additional notes to repay $97 million of its Term Loan B and pay fees, expenses and accrued interest.

As of December 31, 2019, the Company had outstanding $887 million of senior debt under its credit facilities, $425 million in second-lien notes and $400 million in senior notes (the amounts of senior debt and senior notes both exclude unamortized premium). In addition, the Company had $20 million in cash on hand.