August 4, 2016
CUMULUS MEDIA INC.
2016 Second Quarter
Earnings Call Presentation
Safe Harbor Statement
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this presentation may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform
Act of 1995 and other federal securities laws. Such statements are statements other than historical fact and relate to our intent, belief or current
expectations, primarily with respect to certain historical and our future operating, financial and strategic performance. Any such forward-looking
statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ from those contained in or
implied by the forward-looking statements as a result of various factors including, but not limited to, risks and uncertainties relating to the need for
additional funds to service our debt and to execute our business strategy; our ability to access borrowings under our revolving credit facility; our
ability from time to time to renew one or more of our broadcast licenses; changes in interest rates; changes in the fair value of our investments; the
timing of, and our ability to complete, any acquisitions or dispositions pending from time to time; costs and synergies resulting from the integration
of any completed acquisitions; our ability to effectively manage costs; our ability to effectively drive and manage growth; the popularity of radio as a
broadcasting and advertising medium; changing consumer tastes; the impact of general economic conditions in the United States or in specific
markets in which we currently do business; industry conditions, including existing competition and future competitive technologies and cancellation,
disruptions or postponements of advertising schedules in response to national or world events; our ability to generate revenues from new sources,
including local commerce and technology-based initiatives; the impact of regulatory rules or proceedings that may affect our business or any
acquisitions; our ability to meet the listing standards for our Class A common stock to be listed for trading on the NASDAQ stock market; the write-
off of a material portion of the fair value of our FCC broadcast licenses and goodwill from time to time; or other risk factors described from time to
time in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2015 (the “2015 Form
10-K”) and any subsequent filings. Many of these risks and uncertainties are beyond our control, and the unexpected occurrence or failure to occur
of any such events or matters could significantly alter the actual results of our operations or financial condition. Cumulus Media Inc. assumes no
responsibility to update any forward-looking statement as a result of new information, future events or otherwise.
2
CUMULUS MEDIA INC.
2016 Second Quarter
Earnings Call Presentation
3
Q2 2016 Financial Highlights
Radio Station Group Q2 2016 Segment Commentary
• Revenue growth in national spot, political and digital offset by slight
decline in local spot
• Expense increase of $12.2 million driven by new sports rights, high-
impact programming investments and an out-of-period adjustment
resulting from a recalculation of 2015 music license fees
Westwood One Q2 2016 Segment Commentary
• Revenue decline driven predominantly by weak marketplace demand
as well as the shutdown of the print version of NASH Country Weekly
• Expense decrease of $6.7 million driven by lower variable cost of sales
$299.3 $287.2
$-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
2Q15 2Q16
N
et
R
ev
en
ue
(
$m
m
)
$12.3
$1.1
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2Q15 2Q16
N
et
In
co
m
e
($
m
m
)
$80.8
$63.2
$-
$20.0
$40.0
$60.0
$80.0
$100.0
2Q15 2Q16
A
dj
us
te
d
E
B
IT
D
A
($
mm
)
Cumulus Q2 2016
Financial Performance
4
Our continued underperformance highlights
the challenges that we are addressing, which
are significant but fixable with time.
5
Enhance
Operational
Blocking &
Tackling
1
Institute
Culture
Initiatives
2
Drive
Ratings
Growth
3
Address
Balance
Sheet
4
Four Key Turnaround Initiatives:
6
Enhance
Operational
Blocking &
Tackling
7
Enhance
Operational
Blocking &
Tackling
Alignment of
Authority &
Accountability
Compensation
Alignment for
Senior
Leadership
Deliberate Shift
from Command
& Control to
Greater Local
Autonomy with
Corporate
Support
8
Enhance
Operational
Blocking &
Tackling Action.
Momentum.
Performance.
9
Institute
Culture
Initiatives
10
Institute
Culture
Initiatives
WE ARE FOCUSED.
We will make every decision, including
where we direct our own work efforts,
through the lens of HABU (Is this the
HIGHEST AND BEST USE of our
resources — our people, our time, our
energies and our money?) and will
ensure that we have a thoughtful plan
to execute each decision and activity.
WE ARE RESPONSIBLE.
We will operate as a transparent and
performance-based company, with all
of us taking responsibility for our
efforts and outcomes, celebrating our
successes and their shepherds, and
owning up to — and learning from —
our failures.
WE ARE COLLABORATIVE.
We will work across departments and
disciplines to proactively support each
other’s efforts and endeavors. Silos will be
replaced by community; secrets and
unresponsiveness supplanted by
constructive communication and
responsiveness to each other’s needs. We
will work as a team with shared goals and
successes.
WE ARE EMPOWERED.
We will be empowered as individuals,
valued for, and supported in the unique
contributions we each can make. Without
exception, we will contribute our talents
and time to meeting challenges, fixing
problems and rising to the opportunities
before us. We will become more
empowered individually, and therefore
more powerful as a whole.
11
Institute
Culture
Initiatives
Momentum Continues to Grow…
“Excited for the future”
86%
“Proud to work at Cumulus”
92%
“Changing for the better”
94%
Comparison shown from January 2016 culture survey to May 2016 culture survey of employees
84%
87%
89%
12
34% 34%
25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Total Turnover
A
nn
ua
liz
ed
T
ur
no
ve
r
2015 Full Year 2015 July YTD 2016 July YTD
Institute
Culture
Initiatives
Year-to-Date Turnover Metrics (Through July 2016)
30% 29%
20%
Full-Time Turnover
A
nn
ua
liz
ed
T
ur
no
ve
r 36%
40%
24%
Voluntary Sales
Turnover
A
nn
ua
liz
ed
T
ur
no
ve
r
13
Drive
Ratings
Growth
14
Drive
Ratings
Growth
Reorienting of
Corporate
Resources to
Support and
Analytical
Functions
Financial
Reallocation
Toward
High-Impact
Opportunities
Return of
Authority to
Local Markets
15
Jan-12, 100
Mar-15, 73
Apr-16, 88
May-16, 91
Jun-16, 92
70
75
80
85
90
95
100
105
Drive
Ratings
Growth
PPM Market Ratings (Indexed to January 2012)
Sources: Nielsen, BIA; Calculated as a trailing three month average of Nielsen’s P25-54, M-F, 6a-7p
AQH ratings for Cumulus stations, weighted by market size, averaged across markets and indexed
to January 2012
PPM markets
represented ~53% of
Radio Station Group
Net Revenue in 2015
16
Sp15, 78 Sp16, 79
Fa11, 100
Fa14, 87
Fa15, 82
70
75
80
85
90
95
100
105
4-Book Markets
2-Book Markets
Drive
Ratings
Growth
Diary Market Ratings (Indexed to Fall 2011 Book)
Sources: Nielsen, BIA; Calculated as Nielsen’s P25-54, M-F, 6a-7p AQH ratings for Cumulus stations,
weighted by BIA market size, averaged across markets and indexed to the Fall 2011 ratings book
Diary markets
represented ~46% of
Radio Station Group
Net Revenue in 2015
17
Address
Balance
Sheet
18
Address
Balance
Sheet
• Reviewing all available balance sheet options
to maximize value
• Continuing dialogue with key stakeholders to
explore strategies intended to reduce debt and
secure runway
19
• Overall pacing down low single digits
― Radio Station Group pacing approximately flat
― Westwood One pacing down mid-single digits
• Limited political on the books but expected to ramp in the coming
weeks with the bulk occurring in September
Q3 2016 Pacing
20
Enhance
Operational
Blocking &
Tackling
1
Institute
Culture
Initiatives
2
Drive
Ratings
Growth
3
Address
Balance
Sheet
4
We are in the early innings of a multi-year turnaround
and will continue to focus on the activities that we
believe will provide a foundation for growth.
21
CUMULUS MEDIA INC.
2016 Second Quarter
Financial Results
22
Results for the
Second Quarter
2016:
Net Revenue
(Dollars in thousands)
23
Three Months Ended June 30, 2016
Radio
Station
Group Westwood One
Corporate
and Other Consolidated
Net revenue $ 209,964 $ 76,530 $ 699 $ 287,193
% of total revenue 73.1 % 26.7 % 0.2 % 100.0 %
$ change from three months ended June 30, 2015 $ 466 $ (12,237 ) $ (370 ) $ (12,141 )
% change from three months ended June 30, 2015 0.2 % (13.8 )% (34.6 )% (4.1 )%
Three Months Ended June 30, 2015
Radio
Station
Group Westwood One
Corporate
and Other Consolidated
Net revenue $ 209,498 $ 88,767 $ 1,069 $ 299,334
% of total revenue 70.0 % 29.6 % 0.4 % 100.0 %
Results for the
Second Quarter
2016:
Adjusted EBITDA
(Dollars in thousands)
24
Three Months Ended June 30, 2016
Radio
Station
Group Westwood One
Corporate
and Other Consolidated
Adjusted EBITDA $ 59,321 $ 12,928 $ (9,069 ) $ 63,180
$ change from three months ended June 30, 2015 $ (11,712 ) $ (5,584 ) $ (339 ) $ (17,635 )
% change from three months ended June 30, 2015 (16.5 )% (30.2 )% (3.9 )% (21.8 )%
Three Months Ended June 30, 2015
Radio
Station
Group Westwood One
Corporate
and Other Consolidated
Adjusted EBITDA $ 71,033 $ 18,512 $ (8,730 ) $ 80,815
Results for the
Second Quarter
2016:
Unaudited
Condensed
Consolidated
Statement of
Operations
(Dollars in thousands)
Three Months Ended June 30, Six Months Ended June 30,
2016 2015 2016 2015
Net revenue $ 287,193 $ 299,334 $ 555,723 $ 570,413
Operating expenses:
Content costs 97,133 91,019 197,178 191,826
Selling, general & administrative expenses 117,860 118,548 235,087 234,855
Depreciation and amortization 22,969 25,724 46,066 51,035
LMA fees 2,482 2,572 7,870 5,070
Corporate expenses 9,203 9,219 18,713 18,823
Stock-based compensation expense 790 3,880 1,668 7,743
Acquisition-related and restructuring costs 1,421 (603 ) 3,687 (603 )
(Gain) loss on sale of assets or stations (3,146 ) (84 ) (3,141 ) 735
Impairment of intangible assets and goodwill 1,816 — 1,816 —
Impairment charges - equity interest in Pulser
Media Inc.
—
1,056
—
1,056
Total operating expenses 250,528 251,331 508,944 510,540
Operating income 36,665 48,003 46,779 59,873
Non-operating (expense) income:
Interest expense (34,486 ) (35,412 ) (68,967 ) (70,396 )
Interest income 140 27 225 385
Other (expense) income, net (4 ) 12,373 716 12,757
Total non-operating expense, net (34,350 ) (23,012 ) (68,026 ) (57,254 )
Income (loss) before income taxes 2,315 24,991 (21,247 ) 2,619
Income tax (expense) benefit (1,249 ) (12,692 ) 7,884 (2,335 )
Net income (loss) $ 1,066 $ 12,299 $ (13,363 ) $ 284
25
Results for the
Second Quarter
2016:
Capital
Expenditures
(Dollars in thousands)
Three Months Ended June 30,
2016 2015 % Change
Capital expenditures $ 7,301 $ 4,765 53.2 %
Six Months Ended June 30,
2016 2015 % Change
Capital expenditures $ 11,462 $ 14,860 (22.9 )%
26
Selected Balance
Sheet Data:
Capital Structure
(Dollars in thousands)
June 30, 2016 December 31, 2015 % Change
Cash and cash equivalents $ 49,798 $ 31,657 57.3 %
Term loans 1,838,940 $ 1,838,940 — %
7.75% Senior Notes 610,000 610,000 — %
Total debt $ 2,448,940 $ 2,448,940 — %
27
Update on
Land Sales
• Under contract with a purchase price on a sliding scale
— estimated to be $75 mm
• No revisions to latest timetable — Likely close in 2017
Washington, D.C. (WMAL-AM)
Los Angeles (KABC-AM)
• Under contract for $125 mm
• Approved by City Council on May 25th
28
APPENDIX:
Financial Summary &
Reconciliation to Non-GAAP Term
29
Non-GAAP Financial Measure
Definition of Adjusted EBITDA
Adjusted EBITDA is the financial metric utilized by management to analyze the cash flow generated by our business. This measure isolates the
amount of income generated by our core operations before the incurrence of corporate expenses. Management also uses this measure to
determine the contribution of our core operations to the funding of our corporate resources utilized to manage our operations and our non-operating
expenses including debt service. In addition, Adjusted EBITDA is a key metric for purposes of calculating and determining our compliance with
certain covenants contained in our credit facility. We define Adjusted EBITDA as net income (loss) before any non-operating expenses, including
depreciation and amortization, stock-based compensation expense, gain or loss on sale of assets or stations (if any), gain or loss on derivative
instruments (if any), impairment of assets (if any), acquisition-related and restructuring costs (if any) and franchise and state taxes. In deriving this
measure, management excludes depreciation, amortization, and stock-based compensation expense, as these do not represent cash payments for
activities directly related to our core operations. Management excludes any gain or loss on the exchange or sale of any assets or stations and any
gain or loss on derivative instruments as they do not represent cash transactions nor are they associated with core operations. Expenses relating
to acquisitions and restructuring costs are also excluded from the calculation of Adjusted EBITDA as they are not directly related to our core
operations. Management excludes any non-cash costs associated with impairment of assets as they do not require a cash outlay. Management
believes that Adjusted EBITDA, although not a measure that is calculated in accordance with GAAP, nevertheless is commonly employed by the
investment community as a measure for determining the market value of media companies. Management has also observed that Adjusted EBITDA
is routinely employed to evaluate and negotiate the potential purchase price for media companies and is a key metric for purposes of calculating
and determining compliance with certain covenants in our credit facility. Given the relevance to our overall value, management believes that
investors consider the metric to be extremely useful.
Adjusted EBITDA should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating activities or
any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP. In addition,
Adjusted EBITDA may be defined or calculated differently by other companies and comparability may be limited.
30
Q2 2016
Adjusted EBITDA
Reconciliation
(Dollars in thousands)
The table shown reconciles net
income (loss), the most directly
comparable financial measure
calculated and presented in
accordance with GAAP, to Adjusted
EBITDA for the three months ended
June 30, 2016
31
Three Months Ended June 30, 2016
Radio Station
Group Westwood One
Corporate
and Other Consolidated
Net income (loss) $ 46,405 $ 887 $ (46,226 ) $ 1,066
Income tax expense — — 1,249 1,249
Non-operating expense, including net interest
expense 17
63
34,270
34,350
LMA fees 2,482 — — 2,482
Depreciation and amortization 13,538 8,894 537 22,969
Stock-based compensation expense — — 790 790
Gain on sale of assets or stations (3,121 ) — (25 ) (3,146 )
Impairment of intangible assets — 1,816 — 1,816
Acquisition-related and restructuring costs — 1,268 153 1,421
Franchise and state taxes — — 183 183
Adjusted EBITDA $ 59,321 $ 12,928 $ (9,069 ) $ 63,180
Q2 2015
Adjusted EBITDA
Reconciliation
(Dollars in thousands)
The table shown reconciles net
income (loss), the most directly
comparable financial measure
calculated and presented in
accordance with GAAP, to Adjusted
EBITDA for the three months ended
June 30, 2015
32
Three Months Ended June 30, 2015
Radio Station
Group Westwood One
Corporate
and Other Consolidated
Net income (loss) $ 52,567 $ 7,568 $ (47,836 ) $ 12,299
Income tax (benefit) expense (35 ) — 12,729 12,694
Non-operating (income) expense, including net
interest expense (1 ) 320
22,692
23,011
LMA fees 2,572 — 2,572
Depreciation and amortization 16,014 9,158 551 25,723
Stock-based compensation expense — — 3,880 3,880
Gain on sale of assets or stations (84 ) — — (84 )
Impairment charges - equity interest in Pulser
Media Inc —
1,056
—
1,056
Acquisition-related and restructuring costs — 410 (1,013 ) (603 )
Franchise and state taxes — — 267 267
Adjusted EBITDA $ 71,033 $ 18,512 $ (8,730 ) $ 80,815
33