Entercom Communications Corp. Reports First Quarter 2001 Results
(Bala Cynwyd, PA.) Entercom Communications Corp. (NYSE: ETM) today reported financial results for the quarter ended March 31, 2001. Net revenues were $69.5 million, a decrease of 2% from the same period in 2000. Broadcast cash flow was $23.1 million, a decrease of 6% from the same period in 2000. After Tax Cash Flow ("ATCF") for the quarter was $15.1 million, up slightly from the prior year, or $0.33 per basic share, which was unchanged from the prior year.On a same station basis, the Company realized a 4% decrease in net revenues and a 6% decrease in broadcast cash flow for the quarter compared to the prior year. Station expenses were 3% less than the prior year.
Entercom stations gained revenue market share in all but three of its measured markets continuing its strong record of outperforming in the markets in which it operates.
ATCF is defined as income (loss) before accounting change plus the following: depreciation and amortization, non-cash compensation expense, deferred tax provision, and elimination of any gains or losses (net of current tax) on assets, investments or derivative instruments. Same station results reflect stations operated by Entercom for at least the current quarter and reflect pro forma adjustments for changes to significant sports contracts.
Management's guidance remains the same as that previously released. For the quarter ended June 30, 2001, the Company expects net revenues of $97 million, broadcast cash flow of $41 million and after tax cash flow of $26 million, or $0.57 per basic share. For the year 2001 the Company expects revenues of $363 million, broadcast cash flow of $151 million and after tax cash flow of $96 million, or $2.10 per basic share.
Effective this year, the Company will show income or expense related to quarterly revaluation of derivative instruments related to its senior debt. For this quarter the Company recognized a charge for the cumulative prior period effect as an accounting change, as well as a charge for the current quarter. On a per share basis before the accounting change related to derivative instruments, the Company reported a loss of $0.04 for the current quarter as compared to breakeven in the prior year. The increase in loss per share is primarily attributable to non-cash charges for an equity loss in its new startup internet affiliate, LMIV, non-cash expenses related to revaluation of derivative activities and a decrease in broadcast cash flow.
On January 26, 2001, the Chicago Board Options Exchange began listing Entercom options. Entercom was also added to the S&P MidCap 400 on January 29, 2001. Entercom owns 95 radio stations in 18 markets. As of March 31, 2001, the Company had 45.3 million shares of Common Stock outstanding. Shares of Entercom Communications Corp. are traded on the New York Stock Exchange under the symbol ETM.
Entercom will hold a conference call regarding this quarterly earnings release on Thursday, May 10, at 11:00 A.M. Eastern Time. The public may access the conference call by dialing 773-756-4767. A replay of the conference call will be available through May 14, 2001, by dialing 402-998-1584. A webcast of the conference call will be available beginning the following day and available through May 18, at the Company's website: www.Entercom.com.
This news announcement contains certain forward-looking statements that are based upon current expectations and involve 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 U.S. Securities and Exchange Commission. Readers should note that these statements may 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. Entercom assumes no obligation to publicly update or revise any forward-looking statements.
Contact:
Steve Fisher
Executive Vice President and Chief Financial Officer
610-660-5647
Entercom First Quarter 2001
Earnings Release
ENTERCOM COMMUNICATIONS CORP.
CONDENSED CONSOLIDATED FINANCIAL DATA
(amounts in thousands, except per share data)
(Unaudited)
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended March 31
2001
2000
Net Revenues
$ 69,455
$ 70,877
Station Operating Expenses
46,360
46,193
Broadcast Cash Flow
23,095
24,684
Depreciation and Amortization
11,496
10,477
Corporate General and Administrative Expenses
3,330
3,167
Net Expense from Time Brokerage Agreement Fees
4
Net Loss on Sale of Assets
23
7
Operating Income
8,246
11,029
Other Expense (Income) Items:
Interest Expense
7,911
9,390
Financing Cost of Convertible Preferred Securities
1,953
1,953
Interest Income
(95)
(106)
Equity Loss from Unconsolidated Affiliate
850
-
Net Loss on Derivative Instruments
478
-
Loss Before Income Tax Benefit and Accounting Change
(2,851)
(208)
Income Tax Benefit
(1,102)
(122)
Loss Before Accounting Change
(1,749)
(86)
Cumulative Effect of Accounting Change, Net of Taxes
(566)
-
Net Loss
$ (2,315)
$ (86)
Loss Before Accounting Change Per Share - Basic and Diluted
$ (0.04)
$ (0.00)
Net Loss Per Share - Basic and Diluted
$ (0.05)
$ (0.00)
After Tax Cash Flow
$ 15,082
$ 14,968
After Tax Cash Flow Per Share - Basic
$ 0.33
$ 0.33
Weighted Common Shares Outstanding - Basic
45,250
45,188
Weighted Common Shares Outstanding - Diluted (a)
45,250
45,188
SELECTED BALANCE SHEET DATA
March 31, 2001
March 31, 2000
(unaudited)
(unaudited)
Cash and Cash Equivalents
$ 13,087
$ 10,466
Working Capital
52,740
55,528
Total Assets
1,463,695
1,403,325
Senior Debt
445,335
472,769
Total Shareholders' Equity
733,599
685,707
a) Diluted weighted common shares outstanding are the same as basic weighted common shares outstanding as the impact of potentially dilutive equivalent shares for the Convertible Preferred Securities and for the stock options of approximately 0.7 million shares using the treasury stock method would be anti-dilutive.
