Entercom CEO David Field was pleased with Q4 and FY 2010’s results—much more so than Q3. Revenues for the latest quarter increased 6% to $12.1 million. For the full year, revenues grew 5% to $391.4 million. Same-station revenues were up 7%, while the company held expenses to a slim 2% gain. Same station operating income increased 14%. Net income per share was $0.46 per share. Adjusted net income per share increased 28% to $0.37 per share. Free cash flow per share was up 20% to $0.71.
FY revenues increased 5% to $391.4 million, station expenses increased 2% to $257.5 million and resulting in an 11% increase in station operating income ($133.9 million). Same station net revenues increased 5%; same station expenses increased 2% and same station operating income increased 12%. Net income per share increased to $1.23. Free cash flow increased 24% to $86.7 million. Adjusted net income was up 29% to $1.12 per share, while free cash flow per share rose 19% to $2.30.
Field noted that their good free cash flow level enabled them to continue to de-lever the company: “We’ve reduced leverage from 6.0X at the end of Q3 and to 5.6X at the end of Q4 and we are positioned to be able to bring leverage down much further over the course of the year.” As 12/31, the Company had $3.8 million in cash and $650.1 million of senior debt.
He noted Digital Revenues at Entercom were up close to 50% for the quarter. The best performing markets were Denver, Milwaukee, New Orleans, Sacramento and Rochester. The strongest categories were Auto, Insurance, Professional Services, Travel and Political.
Field was also excited about the 1/24-launched simulcast of San Jose Classic Rock “The Fox” in the Bay Area: “We announced an agreement with the University of Southern California to transfer the intellectual property of their San Francisco Classical station KVFC, which they are now broadcasting on their non-comm signals in the market. Now we are simulcasting The Fox on the former KDFC signal, and the combination of these two signals has created the strongest FM superstation in the entire market. We have pretty high confidence that The Fox will rank among the market’s rating leaders, providing substantial revenue and cash flow upside.”
As noted by Katz Radio Group, January revenues were held down a bit, due to a stormy January. January pacing numbers were flattish. “That did meaningfully impact business conditions in many markets,” said Field. “In addition, we faced tough comps in both political and the NFL post-season, which last year featured the Super Bowl-winning New Orleans Saints, which we broadcast.”
Having said that, Field said February and March looked much better and Q2 looks strong. “In addition, advertiser sentiment is positive, with a number of clients telling us they have deferred some of their marketing in January until later, either due to weather-related issues or other strategic reasons.”