Category: Media and Marketing

Raising 2020 estimates. Upon further review post the company’s 10Q filing, we are raising our 2020 cash flow estimate from $11.6 million to $12.7 million. We are encouraged by the intermediate term cost reduction strategies that provide positive upside cash flow surprise potential given the prospects of improving revenue trends.

Cost reductions are significant. Payroll reductions of 5% to 10%, cutback in 401K contributions, and layoffs will save the company roughly $825,000 per month. We believe that the magnitude of these cost reductions are not fully reflected in our estimates and…

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Raising 2020 estimates. Upon further review post the company’s 10Q filing, we are raising our 2020 cash flow estimate from $11.6 million to $12.7 million. We are encouraged by the intermediate term cost reduction strategies that provide positive upside cash flow surprise potential given the prospects of improving revenue trends.

Cost reductions are significant. Payroll reductions of 5% to 10%, cutback in 401K contributions, and layoffs will save the company roughly $825,000 per month. We believe that the magnitude of these cost reductions are not fully reflected in our estimates and…

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First quarter was roughly in line with expectations. Revenues of $58.25 million was in line with our $58.29 million estimate. Adj. EBITDA of $3.43 million was lower than our $4.79 million estimate, but an unexpected $1.2 million reserve for bad debt collections accounted for virtually all of the variance.

Revenue trends in Q2 appear in line. Company provided revenues for April and May, down 24% and 23% respectively, with June trending better. We believe that our Q2 revenue estimate of $50.1 million (down 22.5%) is…

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FCC Lifts Foreign Ownership Rules. The FCC recently lifted the Foreign Ownership rules from 25% to 100%, a significant “win” for Cumulus. In the past, Foreign companies were prohibited from owning a large stake in U.S. based media companies.

What does this mean? Cumulus issued warrants to debt holders as a part of its bankruptcy reorganization in 2018. The company did not certify that the special warrants were 100 percent U.S. owned and controlled. The recent FCC move allows those companies to convert the warrants into voting common stock. Upon the execution of the warrants, Cumulus estimated that foreign entities would control 34 percent on a voting basis and 31 percent on an equity basis. This move also allows…

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First quarter was roughly in line with expectations. Revenues of $58.25 million was in line with our $58.29 million estimate. Adj. EBITDA of $3.43 million was lower than our $4.79 million estimate, but an unexpected $1.2 million reserve for bad debt collections accounted for virtually all of the variance.

Revenue trends in Q2 appear in line. Company provided revenues for April and May, down 24% and 23% respectively, with June trending better. We believe that our Q2 revenue estimate of $50.1 million (down 22.5%) is…

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FCC Lifts Foreign Ownership Rules. The FCC recently lifted the Foreign Ownership rules from 25% to 100%, a significant “win” for Cumulus. In the past, Foreign companies were prohibited from owning a large stake in U.S. based media companies.

What does this mean? Cumulus issued warrants to debt holders as a part of its bankruptcy reorganization in 2018. The company did not certify that the special warrants were 100 percent U.S. owned and controlled. The recent FCC move allows those companies to convert the warrants into voting common stock. Upon the execution of the warrants, Cumulus estimated that foreign entities would control 34 percent on a voting basis and 31 percent on an equity basis. This move also allows…

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Adjusting 2020 estimates. This report reflects our adjustments to our 2020 estimates, which reflects higher costs to support the prospect for faster revenue growth and margin improvement in 2021.

Duplicate expenses in 2020. There is spending to develop news feeds, international financial data feeds, analytics, and mutual fund information. For now, it is carrying the costs of development, combined with the costs of third party vendors. As such, we expect margins to improve in 2021 as development costs decline and…

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Adjusting 2020 estimates. This report reflects our adjustments to our 2020 estimates, which reflects higher costs to support the prospect for faster revenue growth and margin improvement in 2021.

Duplicate expenses in 2020. There is spending to develop news feeds, international financial data feeds, analytics, and mutual fund information. For now, it is carrying the costs of development, combined with the costs of third party vendors. As such, we expect margins to improve in 2021 as development costs decline and…

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Solid Q1. First quarter results were largely in line with expectations in spite of Covid 19 that wrecked the economy and many businesses. Revenues increased 3.3%, in line with our expectations. Adj. EBITDA was lower, $191,000 versus our $414,000 estimate, largely due to investments into new products that are expected to be rolled out in

Management clearly was hoping for a better quarter. The company was impacted by Covid as some clients paused services and some even shuttered. Even though companies appear more cautious, Quotemedia appears to be benefiting from a shift toward work from…

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Beats on revenue. Q1 revenues of $40.5 million was better than our $39.5 million estimate, in spite of the Covid impact, estimated to have adversely affected revenues by $2 million. Costs were a little higher than expected, and, as such, adj. EBITDA was shy of our loss of $1.7 million, coming in at a loss of $2.4 million.

Encouragingly, maintaining quarterly outlook. The Covid impact appears to be relatively modest, hitting its marketing services business, but not its contact center or market fulfillment businesses. Our revenue estimates have been adjusted for the exit of its direct mail operations to Summit Direct Mail, which will save $2 million to $3 million in annualized savings. Adj. EBITDA is expected to be positive in coming quarters for…

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Solid Q1. First quarter results were largely in line with expectations in spite of Covid 19 that wrecked the economy and many businesses. Revenues increased 3.3%, in line with our expectations. Adj. EBITDA was lower, $191,000 versus our $414,000 estimate, largely due to investments into new products that are expected to be rolled out in

Management clearly was hoping for a better quarter. The company was impacted by Covid as some clients paused services and some even shuttered. Even though companies appear more cautious, Quotemedia appears to be benefiting from a shift toward work from…

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Beats on revenue. Q1 revenues of $40.5 million was better than our $39.5 million estimate, in spite of the Covid impact, estimated to have adversely affected revenues by $2 million. Costs were a little higher than expected, and, as such, adj. EBITDA was shy of our loss of $1.7 million, coming in at a loss of $2.4 million.

Encouragingly, maintaining quarterly outlook. The Covid impact appears to be relatively modest, hitting its marketing services business, but not its contact center or market fulfillment businesses. Our revenue estimates have been adjusted for the exit of its direct mail operations to Summit Direct Mail, which will save $2 million to $3 million in annualized savings. Adj. EBITDA is expected to be positive in coming quarters for…

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Q1 disappoints given impact from Covid. Total revenues of $227.9 million was below our $250.7 million estimate. We believe that the majority of the variance was due to the cancellation of the March Madness, NCAA Tournament, due to Covid 19. Operating cash flow (Adj. EBITDA) was $27.7 million versus our $34.3 million estimate.

Radio takes a big hit. Radio broadcasting has been uniquely hit given stay at home rules that limit driving in cars where listenership largely happens. The second quarter spot advertising decline is expected to be roughly 50%. We are lowering our Q2 revenue and cash flow estimates and full year 2020 and 2021 estimates to reflect a…

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