Entercom Communications Slips To Loss In Q1; Revenue Declines - Quick Facts

(RTTNews) - Entercom Communications Corp. (ETM), a media and entertainment company, on Thursday reported net loss for the first quarter of $9.14 million or $0.07 per share, compared to net income of $3.13 million or $0.02 per share in the year-ago period.

The latest quarter's results included a non-cash impairment charge of $1.1 million, compared to $30.4 million in the year-ago period.

Adjusted loss for the quarter was $0.01 per share, compared to adjusted earnings of $0.03 per share a year ago.

Net revenues for the quarter declined 4 percent to $297.03 million from $309.01 million in the prior-year quarter.

On average, analysts polled by Thomson Reuters expected the company to report break even for the quarter on revenues of $304.04 million. Analysts' estimates typically exclude special items.

Entercom Communications said that to mitigate the impact of the downturn in revenues and to preserve liquidity, it has reduced fixed costs by $150 million during the remainder of 2020.

The company will also realize reduced variable expenses tied to revenues, and cut planned capital expenditures by over 40 percent to a revised range of between $25 million and $30 million for 2020.

Due to benefits provided by the CARES Act, Entercom Communications now expects cash income tax payments to be less than $10 million for 2020. In addition, the company realized $10.8 million of proceeds from the sale of WAAF-FM in Boston in April.