ATLANTA - Cumulus Media Inc. (NASDAQ: NASDAQ:CMLS), a leading audio-first media company, announced today the appointment of Steven M. Galbraith to its Board of Directors, expanding its board's financial expertise. The company expressed confidence that Galbraith's extensive background in investment management and his status as a significant shareholder will be valuable in driving future growth. According to InvestingPro data, the company faces significant challenges with a current market capitalization of just $13.4 million and a debt-to-equity ratio of 3.37x, suggesting the new appointment comes at a crucial time.
Galbraith is a managing member of Kindred Capital Advisors LLC and holds a substantial personal investment in Cumulus Media. His financial acumen has been honed through roles such as managing member of Herring Creek Capital, a partner at Maverick Capital, and Chief Investment Officer at Morgan Stanley (NYSE:MS). His influence extended to academia as an Adjunct Professor at Columbia University Business School, where he taught securities analysis for a decade. The appointment comes as InvestingPro analysis shows the company trading at a notably low Price/Book multiple of 0.06x, with 12 additional key insights available to subscribers.
His advisory experience includes a tenure with the Office of Financial Research, contributing to the U.S. Treasury's efforts to enhance financial system stability and transparency. Galbraith's commitment also spans various non-profit and educational organizations, including board positions at Tufts University, the National Constitution Center, Success Academy Charter Schools, Third Way, the Educational Equity Lab, and the American Friends of Hebrew University Endowment.
In addition to his non-profit work, Galbraith's board experience extends to the Narragansett Brewing Company, Equity Data Science, and Said Holdings Limited. His appointment is seen as a strategic move by Cumulus Media to leverage his investment insights and experience in shaping the company's strategies in an evolving media landscape.
Cumulus Media reaches over a quarter billion people monthly through its 400 owned-and-operated radio stations, national syndication of sports, news, talk, and entertainment, and its rapidly growing podcast network. The company aims to connect with audiences across various platforms, including digital, mobile, social, and voice-activated devices, providing comprehensive marketing services and live event experiences. Despite its broad reach, financial metrics from InvestingPro indicate revenue declined by 5.11% in the last twelve months, with the company's overall financial health score rated as WEAK. For detailed analysis and comprehensive insights, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
This announcement is based on a press release statement from Cumulus Media Inc. The addition of Galbraith to the board is expected to contribute to the company's pursuit of new opportunities in the media sector.
In other recent news, Cumulus Media reported its Q3 earnings, meeting analyst expectations with revenues of $203.6 million and EBITDA at $24.1 million. The company's digital segment demonstrated significant growth, particularly in digital marketing services, which saw a 40% increase. Despite a minor decrease in podcasting revenue, Cumulus Media continues its progress in digital strategy and debt reduction.
The company's Q3 revenue and EBITDA aligned with analysts' forecasts, with digital revenue now accounting for 20% of total revenue, an 8% year-over-year increase. National advertising revenue, bolstered by live sports, contributed to the broadcast radio segment's strength. Cumulus Media achieved $8 million in cost reductions and reduced net debt by over 50% since 2018.
However, the company anticipates a slight dip in Q4 revenues, with an expected increase in political ad spending. Despite concerns about the economic environment and the presidential election affecting spending, Cumulus Media remains confident in its strategic direction and asset value. The company plans to continue investing in digital initiatives and reducing debt.
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