Cumulus Media Inc. today reported financial results for the quarter ended March 31, 2013.

Lew Dickey, Chairman & CEO stated, "With the integration and turnaround of the Citadel assets now largely behind us, we are investing in several key content initiatives to drive growth beginning in the back half of this year and accelerating into 2014. We will post positive year-to-date revenue growth through May and expect our investments in CBS Sports Radio, Traffic, Nash and SweetJack to contribute meaningfully to our cash flow beginning in Q4 of this year."

Financial highlights are as follows (in thousands, except percentages) (footnotes follow):

Three Months Ended March 31, 2013 Compared to Three Months Ended March 31, 2012

Net Revenues 

Net revenues for the three months ended March 31, 2013 decreased $3.1 million, or 1.3%, to $232.9 million, compared to $236.0 million for the three months ended March 31, 2012. This decrease was attributable to lower political revenues and general lower advertising spending in some of our markets.

Direct Operating Expenses, Excluding Depreciation and Amortization

Direct operating expenses for the three months ended March 31, 2013 increased $10.6 million, or 6.9%, to $164.2 million, compared to $153.6 million for the three months ended March 31, 2012. The increase was primarily attributable to a $1.0 million increase in sales salaries, a $1.6 millionincrease in Arbitron fees and a $4.9 million increase in expense at our network division as we invest in various content initiatives.

Corporate, General and Administrative Expenses, Including Stock-based Compensation Expenses

Corporate general and administrative expenses, including stock-based compensation expense, for the three months ended March 31, 2013 decreased $2.8 million, or 16.9%, to $13.9 million, compared to $16.7 million for the three months ended March 31, 2012. The decrease was primarily due to a decrease in stock-based compensation expense of $4.3 million, partially offset by a $1.2 million increase in acquisition related costs. Acquisition related costs for the three months endedMarch 31, 2013 included exit costs associated with a lease for vacated Citadel office space.

Interest Expense, net

Total interest expense, net of interest income, for the three months ended March 31, 2013 decreased$6.5 million, or 12.9%, to $44.3 million compared to $50.8 million for the three months endedMarch 31, 2012. Interest expense associated with outstanding debt decreased by $6.5 million to$41.5 million as compared to $48.0 million in the prior year period. Interest expense decreased due to a lower average amount of indebtedness outstanding as a result of principal repayments and a lower weighted average cost of debt.

Capital Expenditures

Capital expenditures for the three months ended March 31, 2013 totaled $2.0 million which represented routine capital expenditures. Capital expenditures during the three months ended March 31, 2012 were $1.1 million.

Earnings (Loss) Per Share

Basic earnings (loss) per share ("EPS") is calculated for the three months ended March 31, 2013 by dividing the loss from continuing operations of $8.9 million adjusted for dividends declared on preferred stock of $2.7 million and the accretion of redeemable preferred stock of $1.0 million by the weighted average number of shares of common stock outstanding during the period, which was 174,748,001. Diluted EPS for the three months ended March 31, 2013 was calculated in the same manner as basic EPS. Potentially dilutive equivalent shares outstanding for the three months ended March 31, 2013 that were excluded from the computation of diluted EPS consisted of approximately 39.8 million shares of common stock issuable on exercise of underlying outstanding stock options and certain warrants.