(Bala Cynwyd, Pa. May 2, 2016) Entercom Communications Corp. (NYSE: ETM) today announced that its Board of Directors has approved the initiation of a dividend program under which the Company intends to pay a regular quarterly cash dividend to its common shareholders. The Board declared an initial quarterly cash dividend of $0.075 per share of Class A and Class B Common stock, payable on June 15, 2016 to shareholders of record as of the close of business on May 25, 2016.
David J. Field, President and Chief Executive Officer, stated: “The decision by Entercom’s Board of Directors to initiate a quarterly cash dividend reflects its confidence in the Company’s strong operating performance, significant cash flow generation, moderate leverage and excellent growth prospects. Entercom’s new dividend amounts to $0.30 per share on an annual basis and represents an approximate 3% yield on its stock price. On an annualized basis, the dividend is approximately 17% of the Company’s trailing twelve-month free cash flow, enabling us to continue to invest in our business, pursue compelling growth opportunities and reduce debt while delivering immediate value to our shareholders.”
Future declarations of quarterly dividends are subject to the determination and discretion of Entercom’s Board of Directors.
Entercom Communications Corp. (NYSE: ETM) founded in 1968, is the fourth-largest radio broadcasting company in the US. Entercom’s portfolio includes 124 highly rated radio stations in 27 top markets. Laser focused on investing in local communities, content and talent, our brands reach and engage 40 million people a week. We are known for developing unique and highly successful locally programmed stations, delivering a curated mix of outstanding local personalities, and a broad range of compelling music, news, talks and sports content. With the integration of SmartReach Digital into our product suite, we deliver unparalleled ROI by connecting brands to audiences through our branded sites and over 6,000 events a year.
Note Regarding Forward-Looking Statements
The information in this news release is being widely disseminated in accordance with the Securities and Exchange Commission’s Regulation FD.
This news announcement contains certain forward-looking statements that are based upon current expectations and involves certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Additional information and key risks are described in the Company’s filings on Forms 8-K, 10-Q and 10-K with the Securities and Exchange Commission. Readers should note that these statements might be impacted by several factors including changes in the economic and regulatory climate and the business of radio broadcasting, in general. Accordingly, the Company’s actual performance may differ materially from those stated or implied herein. The Company assumes no obligation to publicly update or revise any forward-looking statements.
Executive Vice President and Chief Financial Officer