Entercom Communications Corp. Reports Fourth Quarter and Full Year Results

  Entercom Communications Corp. Reports Fourth Quarter and Full Year Results

        Fourth Quarter Revenue Grows 7% and Adjusted EBITDA Grows 17%

Business Wire

BALA CYNWYD, Pa. -- February 8, 2013

Entercom Communications Corp. (NYSE: ETM) today reported financial results for
the quarter and year ended December 31, 2012.

Fourth Quarter Highlights

  *Net revenues for the quarter increased 7% to $102.1 million
  *Station expenses increased 2% to $61.7 million
  *Station operating income increased 16% to $40.4 million
  *Adjusted EBITDA increased 17% to $35.3 million
  *Adjusted net income per share increased 7% to $0.31
  *Free cash flow increased 6% to $22.0 million

Full Year Highlights

  *Net revenues for the year increased 2% to $388.9 million
  *Station expenses decreased 4% to $252.4 million
  *Station operating income increased 14% to $136.6 million
  *Adjusted EBITDA increased 15% to $115.9 million
  *Adjusted net income per share decreased 19% to $0.79
  *Free cash flow decreased to $63.1 million

David J. Field, President and Chief Executive Officer stated: “Entercom
finished 2012 with a solid fourth quarter as Revenues grew by 7% and Adjusted
EBITDA increased by 17%. For the year, prudent cost management drove expenses
down by 4% and enabled a 15% increase in Adjusted EBITDA on 2% Revenue growth.
We enter 2013 with a strong balance sheet, an outstanding lineup of great
brands and content, and a powerful array of emerging digital platforms. We are
also highly enthused by a number of positive industry developments over the
past few months which bolster the industry’s future prospects. Industry
research continues to show robust radio listening levels and strong advertiser
effectiveness, while recent announcements by Sprint, Nielsen and others
reaffirm radio’s importance in today’s media landscape.”

Additional Information

During the quarter, the Company amended its credit facility and lowered the
borrowing cost of its Term B loan. In connection with this amendment, the
Company wrote-off $0.7 million of existing deferred financing fees.

The Company reduced its outstanding net senior debt by $19.3 million during
the quarter. For the year, the Company reduced its outstanding net senior debt
by $37.8 million and lowered its leverage ratio to 4.8x. As of December 31,
2012, the Company had $8.9 million in cash and $569.9 million of senior debt
and senior notes.

During the quarter, the Company made a revision to its previously reported
book income tax expense for 2011. This revision was made to correct an error
in the accounting treatment of certain items when calculating income tax
expense. The adjustment was non-cash, had no impact on the Company’s operating
income or statement of cash flows, and the Company believes the change is not
material. The revised income tax expense affects both second quarter and full
year 2011 results. The financial tables included in this release provide
additional detail on the revision.

Earnings Conference Call and Company Information

Entercom will hold a conference call regarding the quarterly earnings release
on Friday, February 8, 2013 at 10:00 AM Eastern Time. Investors will have the
opportunity to submit questions to the Company regarding the fourth quarter
earnings release by emailing their inquiries to questions@entercom.com.
Questions should be sent at least 10 minutes prior to the call. The Company
will only discuss inquiries made by email prior to the conference call. The
public may access the conference call by dialing 888-889-0278 (passcode:
Entercom). A replay of the conference call will be available and can be
accessed either by dialing866-462-8981 or by visiting the Company’s website:
www.entercom.com. Additional information and reconciliation of same station
results are available on the Company’s website at www.entercom.com.

Entercom Communications Corp. (NYSE: ETM), led by President and CEO David
Field, is one of the largest radio broadcasting companies in the United
States, with a nationwide portfolio of over 100 stations in 23 markets,
including San Francisco, Boston, Seattle, Denver, Portland, Sacramento and
Kansas City.

Known for developing unique and highly successful locally programmed stations,
Entercom is home to some of radio's most distinguished brands and compelling
personalities. The company is also the radio broadcast partner of the Boston
Red Sox, Boston Celtics, Buffalo Bills, Buffalo Sabres, Kansas City Royals,
Memphis Grizzlies, New Orleans Saints, New Orleans Hornets, Oakland Athletics
and San Jose Sharks.

Entercom focuses on creating effective multi-platform marketing solutions for
its customers, incorporating the company's audio, digital and experiential
assets. Additionally, the company has a long-standing commitment to
responsible corporate citizenship and environmental stewardship. Entercom
stations play a vital, hands-on role in improving their communities, providing
over $100 million in annual support for local charitable organizations.

The company's radio stations have received numerous awards, including multiple
Edward R. Murrow Awards for excellence in broadcast journalism, as well as the
National Association of Broadcasters (NAB) Marconi Award for excellence in
radio broadcasting. In 2012, Entercom was named by Information Week as one of
the Top 500 Technology Innovators in the United States.

Certain Definitions

All references to per share data, unless stated otherwise, are presented as
per diluted share. All references to shares outstanding, unless stated
otherwise, are presented to exclude unvested restricted stock units. All
references to net debt are outstanding debt net of cash on hand.

Station expenses consist of station operating expenses excluding non-cash
compensation expense.

Corporate expenses consist of corporate general and administrative expenses
excluding non-cash compensation expense.

Station operating income consists of operating income (loss) before:
depreciation and amortization; time brokerage agreement fees (income);
corporate general and administrative expenses; non-cash compensation expense
(which is otherwise included in station operating expenses); impairment loss;
merger and acquisition costs; and gain or loss on sale or disposition of
assets.

Adjusted EBITDA consists of net income (loss), adjusted to exclude: income
taxes (benefit); total other expense; depreciation and amortization; time
brokerage agreement fees (income); non-cash compensation expense (which is
otherwise included in station operating expenses and corporate G&A expenses);
impairment loss; merger and acquisition costs; and gain or loss on sale or
disposition of assets.

Free cash flow consists of operating income (loss): (i) plus depreciation and
amortization, net (gain) loss on sale or disposal of assets; non-cash
compensation expense (which is otherwise included in station operating
expenses and corporate general and administrative expenses), impairment loss;
merger and acquisition costs; and (ii) less net interest expense (excluding
amortization of deferred financing costs), taxes paid and capital
expenditures.

Adjusted net income consists of net income (loss) adjusted to exclude: (i)
income taxes (benefit) as reported; (ii) gain/loss on sale of assets,
derivative instruments and investments; (iii) non-cash compensation expense;
(iv) other income; (v) impairment loss; (vi) merger and acquisition costs; and
(vii) gain/loss on early extinguishment of debt. For purposes of
comparability, income taxes are reflected at the expected statutory federal
and state income tax rate of 42% without discrete items of tax.

Adjusted net income per share includes any dilutive equivalent shares when not
anti-dilutive.

Same station is computed by comparing the performance of stations operated by
the Company throughout the relevant period to the comparable performance in
the prior year’s corresponding period (excluding non-cash compensation
expense). Any acquisition or disposition of radio stations not deemed to be
material by management are ignored for the purpose of computing this data.
There were no material acquisitions during the periods presented in the above
tables.

Non-GAAP Financial Measures

It is important to note that station operating income, station expense,
corporate expense, same station net revenues, same station expenses, same
station operating income, adjusted EBITDA, adjusted net income, adjusted net
income per share and free cash flow are not measures of performance or
liquidity calculated in accordance with generally accepted accounting
principles (“GAAP”). Management believes that these measures are useful as a
way to evaluate the Company and the means for management to evaluate our radio
stations’ performance and operations. Management believes that these measures
are useful to an investor in evaluating our performance because they are
widely used in the broadcast industry as a measure of a radio company’s
operating performance.

Certain adjusted non-GAAP financial measures are presented in this release
(e.g., adjusted net income and adjusted net income per share). The adjustments
exclude gain/loss on sale of assets, derivative instruments, and investments;
non-cash compensation expense, other income, impairment loss and gain/loss on
early extinguishment of debt. Management believes these adjusted non-GAAP
measures provide useful information to Management and investors by excluding
certain income, expenses and gains and losses that may not be indicative of
the Company’s core operating and financial results. Similarly, Management
believes these adjusted measures are a useful performance measure because
certain items included in the calculation of net income (loss) may either mask
or exaggerate trends in the Company’s ongoing operating performance. Further,
the reconciliations corresponding to these adjusted measures, by identifying
the individual adjustments, provide a useful mechanism for investors to
consider these adjusted measures with some or all of the identified
adjustments.

Management uses these non-GAAP financial measures on an ongoing basis to help
track and assess the Company's financial performance. You, however, should not
consider non-GAAP measures in isolation or as substitutes for net income
(loss), operating income, or any other measure for determining our operating
performance that is calculated in accordance with generally accepted
accounting principles. These non-GAAP measures are not necessarily comparable
to similarly titled measures employed by other companies. The accompanying
financial tables provide reconciliations to the nearest GAAP measure of all
non-GAAP measures provided in this release.

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 certain unaudited pro forma information
that is presented for illustrative purposes only 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. The unaudited pro forma
information and same station operating data reflect adjustments and are
presented for comparative purposes only and do not purport to be indicative of
what has occurred or indicative of future operating results or financial
position. 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 unaudited pro forma or forward-looking
statements.

                                                               
Fourth Quarter 2012
Earnings Release
                                                                    
ENTERCOM COMMUNICATIONS
CORP.
FINANCIAL DATA
(amounts in thousands,
except per share data)
(unaudited)
                                                                    
                              Three Months Ended       Year Ended
                              December 31,             December 31,
                              2012         2011        2012         2011
STATEMENTS OF OPERATIONS
                                                                    
Net Revenues                  $ 102,092    $ 95,134    $ 388,924    $ 382,727
                                                                    
Station Expenses                61,663       60,255      252,350      262,644
Station Expense - Non-Cash      151          226         584          776
Compensation
Corporate Expenses              5,096        4,752       20,704       19,714
Corporate Expenses -            1,619        1,219       5,170        6,895
Non-Cash Compensation
Depreciation And                2,597        2,741       10,839       11,276
Amortization
Impairment Loss                 -            -           22,307       -
Merger And Acquisition          -            -           -            1,542
Costs
Net Time Brokerage              -            -           238          244
Agreement Fees
Net Loss On Sale Or            15          21         138         163
Disposition of Assets
Total Operating Expenses        71,141       69,214      312,330      303,254
                                                               
Operating Income               30,951      25,920     76,594      79,473
                                                                    
Other Expense (Income)
Items:
Net Interest Expense            12,592       8,442       53,446       24,919
Net Loss On Extinguishment      747          1,144       747          1,144
Of Debt
Net (Gain) Loss On              -            1,346       (1,346)      1,346
Derivative Instruments
Net Loss On Investments         73           30          123          30
Other Income                   (37)        (16)       (118)       (32)
Total Other Expense            13,375      10,946     52,852      27,407
                                                                    
Income Before Income Taxes      17,576       14,974      23,742       52,066
(Benefit)
Income Taxes (Benefit)         10,229      4,450      12,474      (14,211)
Net Income                    $ 7,347      $ 10,524    $ 11,268     $ 66,277
                                                                    
Net Income Per Share -        $ 0.20       $ 0.29      $ 0.31       $ 1.82
Basic
                                                                    
Net Income Per Share -        $ 0.19       $ 0.28      $ 0.30       $ 1.76
Diluted
                                                                    
                                                                    
Weighted Common Shares         36,935      36,380     36,906      36,369
Outstanding - Basic
Weighted Common Shares         37,837      37,473     37,810      37,764
Outstanding - Diluted
                                                                    
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
                                                                    
Capital Expenditures          $ 1,901      $ 1,672     $ 3,688      $ 5,712
Income Taxes Paid             $ -          $ -         $ 99         $ 82
Cash Interest                 $ 19,500     $ 4,708     $ 48,568     $ 18,393
                                                                    
SELECTED BALANCE SHEET DATA   December 31,
                              2012         2011
                                                                    
Cash And Cash Equivalents     $ 8,923      $ 3,625
Total Assets                  $ 915,581    $ 919,269
Current Debt                  $ 22,418     $ 3,778
Senior Debt (including        $ 352,592    $ 385,121
Current Debt)
Senior Notes                  $ 217,349    $ 217,103
Total Shareholders' Equity    $ 264,717    $ 248,911
                                                                    
OTHER FINANCIAL DATA
                                                                    
                              Three Months Ended       Year Ended
                              December 31,             December 31,
                              2012         2011        2012         2011
                                                                    
Reconciliation Of GAAP
Station Operating Expenses
To Station Expenses
Station Operating Expenses    $ 61,814     $ 60,481    $ 252,934    $ 263,420
Station Expenses - Non-Cash    (151)       (226)      (584)       (776)
Compensation
Station Expenses              $ 61,663     $ 60,255    $ 252,350    $ 262,644
                                                                    
Reconciliation Of GAAP
Corporate General &
Administrative Expenses To
Corporate Expenses
Corporate General &           $ 6,715      $ 5,971     $ 25,874     $ 26,609
Administrative Expenses
Corporate Expenses -           (1,619)     (1,219)    (5,170)     (6,895)
Non-Cash Compensation
Corporate Expenses            $ 5,096      $ 4,752     $ 20,704     $ 19,714
                                                                    
Reconciliation Of GAAP
Operating Income To Station
Operating Income
Operating Income              $ 30,951     $ 25,920    $ 76,594     $ 79,473
Corporate Expenses              5,096        4,752       20,704       19,714
Corporate Expenses -            1,619        1,219       5,170        6,895
Non-Cash Compensation
Station Expenses - Non-Cash     151          226         584          776
Compensation
Depreciation And                2,597        2,741       10,839       11,276
Amortization
Impairment Loss                 -            -           22,307       -
Merger And Acquisition          -            -           -            1,542
Costs
Net Time Brokerage              -            -           238          244
Agreement Fees
Net Loss On Sale Or            15          21         138         163
Disposition of Assets
Station Operating Income      $ 40,429     $ 34,879    $ 136,574    $ 120,083
                                                                    
Reconciliation Of GAAP Net
Income To Adjusted EBITDA
Net Income                    $ 7,347      $ 10,524    $ 11,268     $ 66,277
Income Taxes (Benefit)          10,229       4,450       12,474       (14,211)
Total Other Expense             13,375       10,946      52,852       27,407
Corporate Expenses -            1,619        1,219       5,170        6,895
Non-Cash Compensation
Station Expenses - Non-Cash     151          226         584          776
Compensation
Depreciation And                2,597        2,741       10,839       11,276
Amortization
Impairment Loss                 -            -           22,307       -
Merger And Acquisition          -            -           -            1,542
Costs
Net Time Brokerage              -            -           238          244
Agreement Fees
Net Loss On Sale Or            15          21         138         163
Disposition of Assets
Adjusted EBITDA               $ 35,333     $ 30,127    $ 115,870    $ 100,369
                                                                    
                              Three Months Ended       Year Ended
                              December 31,             December 31,
                              2012         2011        2012         2011
                                                                    
Reconciliation Of GAAP Net
Income To Free Cash Flow
Net Income                    $ 7,347      $ 10,524    $ 11,268     $ 66,277
Depreciation And                2,597        2,741       10,839       11,276
Amortization
Deferred Financing Costs
Included In Interest            1,122        742         4,405        3,567
Expense
Amortization Of Original                                           
Issue Discount Included In
Interest Expense                64           25          246          25
Non-Cash Compensation           1,770        1,445       5,754        7,671
Expense
Net Loss On Sale Or             15           21          138          163
Disposition of Assets
Net Loss On Early               747          1,144       747          1,144
Extinguishment Of Debt
Impairment Loss                 -            -           22,307       -
Merger And Acquisition          -            -           -            1,542
Costs
Net (Gain) Loss On              -            1,346       (1,346)      1,346
Derivative Instruments
Net Loss On Investments         73           30          123          30
Other Income                    (37)         (16)        (118)        (32)
Income Taxes (Benefit)          10,229       4,450       12,474       (14,211)
Capital Expenditures            (1,901)      (1,672)     (3,688)      (5,712)
Income Taxes Paid              -           -          (99)        (82)
Free Cash Flow                $ 22,026     $ 20,780    $ 63,050     $ 73,004
                                                                    
Reconciliation Of GAAP
Operating Income To Free
Cash Flow:
Operating Income              $ 30,951     $ 25,920    $ 76,594     $ 79,473
Depreciation and                2,597        2,741       10,839       11,276
Amortization
Non-Cash Compensation           1,770        1,445       5,754        7,671
Expense
Impairment Loss                 -            -           22,307       -
Merger And Acquisition          -            -           -            1,542
Costs
Interest Expense, Net of                                           
Interest Income, Deferred
Financing Costs & OID           (11,406)     (7,675)     (48,795)     (21,327)
Capital Expenditures            (1,901)      (1,672)     (3,688)      (5,712)
Net Loss On Sale Or             15           21          138          163
Disposition of Assets
Income Taxes Paid              -           -          (99)        (82)
Free Cash Flow                $ 22,026     $ 20,780    $ 63,050     $ 73,004
                                                                    
Reconciliation Of GAAP Net
Income To Adjusted Net
Income
Net Income                    $ 7,347      $ 10,524    $ 11,268     $ 66,277
Income Taxes (Benefit)          10,229       4,450       12,474       (14,211)
Net Loss On Sale Or             15           21          138          163
Disposition of Assets
Net Loss On Extinguishment      747          1,144       747          1,144
Of Debt
Impairment Loss                 -            -           22,307       -
Merger And Acquisition          -            -           -            1,542
Costs
Net (Gain) Loss On              -            1,346       (1,346)      1,346
Derivative Instruments
Net Loss On Investments         73           30          123          30
Other Income                    (37)         (16)        (118)        (32)
Non-Cash Compensation          1,770       1,445      5,754       7,671
Expense
Adjusted Income Before          20,144       18,944      51,347       63,930
Income Taxes
Income Taxes                   8,460       7,956      21,566      26,850
Adjusted Net Income           $ 11,684     $ 10,988    $ 29,781     $ 37,080
                                                                    
Weighted Average Diluted
Shares Outstanding
Weighted Average Diluted
Shares Outstanding -           37,837      37,473     37,810      37,764
Diluted, As Reported
                                                                    
Adjusted Net Income Per       $ 0.31       $ 0.29      $ 0.79       $ 0.98
Share - Diluted
                                                                    


Effect Of Correction On Consolidated Statements Of Operations And Balance
Sheet
                             
                                Year Ended December 31, 2011
                                As                                As
                                Previously        Adjustment    Revised
                                Reported
                                (amounts in thousands, except per share data)
                                                                  
Income taxes (benefit)          $   (16,444)       $  2,233       $  (14,211)
Net income (loss)               $   68,510         $  (2,233)     $  66,277
Net income per share:
Basic                           $   1.88           $  (0.06)      $  1.82
Diluted                         $   1.81           $  (0.05)      $  1.76
                                

                                Quarter Ended June 30, 2011
                                As                                As
                                Previously         Adjustment     Revised
                                Reported
                                (amounts in thousands, except per share data)
                                                                  
Income taxes (benefit)          $   (29,968)       $  2,233       $  (27,735)
Net income (loss)               $   48,734         $  (2,233)     $  46,501
Net income per share:
Basic                           $   1.34           $  (0.06)      $  1.28
Diluted                         $   1.29           $  (0.06)      $  1.23
                                                                  
                                December 31, 2011
                                As                                As
                                Previously         Adjustment     Revised
                                Reported
                                (amounts in thousands)
                                                                  
Deferred tax liabilities        $   11,317         $  2,233       $  13,550
Total long-term liabilities     $   636,752        $  2,233       $  638,985
Total liabilities               $   668,125        $  2,233       $  670,358
Accumulated deficit             $   (346,565)      $  (2,233)     $  (348,798)
Total shareholders' equity      $   251,144        $  (2,233)     $  248,911
                                                                     

Contact:

Entercom Communications Corp.
Steve Fisher
Executive Vice President and Chief Financial Officer
610-660-5647
 
Press spacebar to pause and continue. Press esc to stop.