Entercom Communications Reports 3Q Results

Entercom Communications reported financial results for the quarter ended September 30.

In a release dated November 2, the company stated:

Third Quarter Highlights

- Net revenues for the quarter decreased 14 percent to $99.8 million and station expenses decreased 8 percent to $65.6 million

- Station operating income decreased 23 percent to $34.2 million

- EBITDA decreased 25 percent to $29.7 million

- Net income per share increased from $0.12 to $0.50

- Adjusted net income per share decreased 28 percent to $0.28

- Free cash flow decreased 22 percent to $21.7 million

David J. Field, President and Chief Executive Officer said, "Entercom's third quarter results improved sequentially from the second quarter as business conditions stabilized and the company's cost cutting measures continued to drive expenses lower. We are increasingly optimistic about 2010 based upon a number of indications of improving demand for advertising in the year ahead, particularly in light of easy comparative results after two years of cyclical decline across virtually all ad sectors. Furthermore, we believe that radio's strong audience listening trends and outstanding value proposition for advertisers position the industry to grow at the expense of certain competitive media experiencing significant audience erosion."

- During the quarter, the company entered into an agreement to sell certain of its tower facilities. The company received $4.5 million of sale proceeds in the third quarter and expects to receive additional proceeds in the fourth quarter. In addition, the transaction provides for an earn-out based on the financial performance of the divested towers.

- During the quarter, the company reduced its outstanding net Senior and Senior Subordinated debt by $25.4 million. As of September 30, the company had $20.1 million in cash and cash equivalents, $758.2 million of Senior Debt and $23.9 million of Senior Subordinated Notes. The company repurchased $20.2 million of its Senior Subordinated Notes during the quarter.

Entercom Communications is a radio broadcasting company with a nationwide portfolio in excess of 100 stations in 23 markets, including San Francisco, Boston, Seattle, Denver, Portland, Sacramento and Kansas City.

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