ATLANTA - Cumulus Media (NASDAQ: NASDAQ:CMLS), a leading audio-first media company, today announced a significant change in its executive team with the appointment of Kriston Aitken as its new Chief Human Resources Officer (CHRO), effective from July 1, 2024. Aitken, who will report directly to President and CEO Mary G. Berner, is set to take over from Todd McCarty following his retirement after a tenure of nearly nine years with the company.
Aitken joined Cumulus Media in 2016 and has served as Senior Vice President of Human Resources for the past two years. With a career that spans almost two decades, she brings extensive experience in human resources management, having previously held various HR roles at Starwood Hotels and Resorts.
In her new role, Aitken will oversee the company's Human Resources strategy and operations, including talent management, compensation, benefits, and the enhancement of the company culture—a key focus for Cumulus Media, as indicated by the 94% of employees who reportedly take pride in their work with the company.
Mary G. Berner, CEO of Cumulus Media, expressed confidence in Aitken's capabilities, citing her nearly eight years of exceptional service as an HR executive with the company. Berner emphasized Aitken's readiness for the role and her dedication to advancing the company's culture.
Moreover, Berner acknowledged McCarty's significant contributions to Cumulus Media, particularly his role in developing a positive and inclusive company culture and establishing a robust HR department.
Cumulus Media operates 401 owned-and-operated radio stations across 85 markets and is known for its national syndication of sports, news, talk, and entertainment programming, as well as its podcast network and integrated digital marketing services. The company prides itself on offering advertisers both local impact and national reach, along with performance guarantees.
This leadership transition is based on information from a press release statement. Aitken's appointment marks a continuation of the company's commitment to maintaining a strong leadership team and a dynamic workplace environment.
In other recent news, Cumulus Media reported mixed results for the first quarter of 2024, highlighted by a strategic financial restructuring and a diverse revenue performance. The company successfully refinanced its capital structure, leading to a debt reduction of approximately $33 million and extended maturities until 2029. Despite a slight decline in total revenue, the digital sector showed promising growth, particularly in digital marketing services and podcasting, which saw a revenue increase of 7% and 25% respectively.
Cumulus Media's cost reduction initiatives have already resulted in a $4 million decrease in fixed costs in Q1, with further savings being explored. An increase in the exchange offer from $100 million to $125 million and a 25% expansion of the ABL facility were also noted.
The company anticipates a slight decrease in Q2 revenue due to macroeconomic uncertainties but remains committed to reducing fixed costs and focusing on strategic priorities. The growth of podcasting and streaming revenue streams is a key focus, with a record 47 shows from Cumulus Media charting on Apple (NASDAQ:AAPL) Podcasts, including 12 local podcasts. Despite the overall growth in digital, the company's total revenue has seen a slight decrease in Q1.
InvestingPro Insights
As Cumulus Media (NASDAQ: CMLS) welcomes Kriston Aitken to the helm of its HR department, the company's financial health remains an essential factor for investors and stakeholders. Cumulus Media operates with a significant debt burden, which is a critical point of consideration for the market. Moreover, management's aggressive share buyback strategy indicates a degree of confidence in the company's valuation and a commitment to shareholder returns. This is particularly noteworthy as the company's Price / Book multiple is currently low, signaling that the stock may be undervalued relative to the company's book value.
InvestingPro data shows Cumulus Media with a market capitalization of $34.78 million and a negative P/E ratio, reflecting challenges in profitability. The company's revenue for the last twelve months as of Q1 2024 stands at $838.91 million, with a gross profit margin of 60.69%. Despite the revenue decline over the last year, Cumulus Media has maintained a solid gross profit margin, which may be indicative of its pricing power and cost management strategies. With a Price / Book multiple of 0.13, the company could attract value investors looking for potentially undervalized opportunities.
Investors interested in further analysis and additional InvestingPro Tips, such as the company's cash burn rate and stock volatility, can find more information at Investing.com/pro/CMLS. Furthermore, users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 14 InvestingPro Tips that could provide a deeper understanding of Cumulus Media's financial and operational prospects.
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