Cumulus Media Q2 2009 Earnings Transcript

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2009-08-05 11:06:23.0

Tags: Media, Quarter, RBC Capital Markets, Sales Strategy, Sales Force Management, Advertising & Promotion, Sales, Marketing, Seeking Alpha, Cumulus Media Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) We'll take our question from David Bank with RBC Capital Markets.

David Bank - RBC Capital Markets

Thanks, good morning guys.

J.P. Hannan

Good morning.

David Bank - RBC Capital Markets

Last quarter you actually gave us a fair amount of visibility in terms of how the quarter actually trended on a inter-quarter basis, and I was wondering if you could kind of humor us again with April, May, June and then your sense of July, and giving us a little bit more color into sequentially how the quarter went and how its feeling.

And I guess Lu, you're -- just more of your general color about there's been a sense in some of the newspaper, radio and TV operators that maybe we haven't turned positive, certainly but there's been kind of a material improvement between 2Q pacings and or 2Q results and 3Q2 pacing. Just kind of wondering what your overall commentary is on that?

Lewis Dickey, Jr.

Well let me try to answer those in reversed order David. The overall feeling going into the back half of the year. Lets start with some lets start with the most important category which is automotive.

The second quarter in essence represented a run-rate of car sales, in essence some 10 million. And we expect -- we are already seeing that starting to rebound, I think it’s -- in the month of July it was closer to it was north 10 million, closer to 11 million. And with the cash conquers (ph) program it’s continuing to improve. And so we 're seeing that market starting to firm up. And the automotive business really hit the scale September, October of last year; and so we'd like to say they can't cancel you twice.

So we do expect to start to see some firming in that category in the -- starting in the fourth quarter maybe the last month of this quarter. And plus on top of that I think you're starting to get a little bit of wind at their back based on the government stimulus to help move that sector of our economy along.

So I think that's going to be a help. Whether or not I think overall the May was a very difficult month in the quarter just giving you the phasing. We talked about April being down 19%, May was down a large number, 25%; and then June was down under 19% -- at 18.8% as we talked about July as a sub-20% as well. So its too -- everything is booking so late David its very-very difficult to try and forecast where everything is coming, which is why we really don't even want to get guidance for the quarter on the top line.

 

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