Entercom Communications First Quarter Net Revenues Increase 3% and Operating Income Increases 434%

Adjusted EBITDA Increases 42%

PHILADELPHIA–(BUSINESS WIRE)–Entercom Communications Corp. (NYSE: ETM) today reported financial
results for the quarter ended March 31, 2019.

First Quarter Highlights

• Net revenues for the quarter were $309.0 million, up 3% compared to
  $300.6 million in the first quarter of 2018
• Total operating expense for the quarter was $278.6 million compared to
  $294.9 million in the first quarter of 2018
• Net income per diluted share for the quarter was $0.02, compared to a
  net loss per diluted share of ($0.10) in the first quarter of 2018
• Adjusted EBITDA for the quarter was $42.7 million, up 42% compared to
  $30.1 million in the first quarter of 2018

David J. Field, President and Chief Executive Officer, stated: “I am
pleased to report that Entercom delivered another strong quarter of
performance as revenues increased 3% and Adjusted EBITDA surged 42%. Our
transformational investments in new products and capabilities and the
hard work of our team are beginning to pay off as we capitalize on our
scale and the abundant growth opportunities in Audio. Second quarter
revenues are pacing up by more than 4% and we are excited about our
progress across multiple areas of the business and by the dynamic future
ahead.”

Additional Information

In February, the Company announced a definitive agreement to acquire
NASH FM 94.7 in New York City, and two stations in Springfield, MA from
Cumulus Media Inc. (Nasdaq: CMLS) in exchange for Entercom’s
three-station cluster in Indianapolis. The transaction is immediately
accretive to Entercom. Entercom and Cumulus began programming the
respective stations being acquired under Local Marketing Agreements on
March 1, 2019. The exchange transaction is expected to close in the
second quarter of 2019.

During the first quarter, the Company completed the sale of surplus
land, buildings and towers to a third party for $25 million in cash and
used this cash and cash on hand to fully pay off the $180 million
outstanding balance on its revolving credit facility.

Later today, the Company expects to issue $325 million in 6.50% senior
secured second-lien notes due 2027. The Company plans to use the
proceeds of the issuance, as well as cash on its balance sheet and
borrowings under its revolver, to repay $425 million of its senior
secured Term Loan and to pay fees and expenses related to the issuance.
In addition, later today the Company expects to amend the financial
covenant in its senior secured credit agreement such that the
calculation of Consolidated Secured Net Leverage Ratio only includes
first lien secured debt.

As of March 31, 2019, the Company had outstanding $1,292 million of
senior debt under its credit facilities and $400 million in senior notes
(both amounts exclude unamortized premium from purchase price
accounting). In addition, the Company had $68 million in cash on hand.

Earnings Conference Call and Company Information

Entercom will hold a conference call and simultaneous webcast regarding
the quarterly earnings release on Tuesday April 30, 2019 at 10:00 AM
Eastern Time. The public may access the conference call by dialing Toll
Free: (888) 889-0278 and Toll: (312) 470-7365, passcode: Entercom
(domestic and international callers). Participants may also listen to a
live webcast of the call by visiting the “Investor Relations” section of
Entercom’s website at www.entercom.com.
A replay of the conference call will be available for one week by
dialing (888) 568-0425. A webcast replay of the conference call will be
available beginning six hours after the call on the Company’s website
for a period of two weeks. Additional information is available on the
Company’s website at www.entercom.com.

Certain Definitions

All references to per share data, unless stated otherwise, are presented
as per diluted share. All references to shares outstanding, unless
stated otherwise, are presented to exclude unvested restricted stock
units. All references to net debt are outstanding debt net of cash on
hand.

Station Expenses consist of station operating expenses excluding
non-cash compensation expense.

Corporate Expenses consist of corporate general and
administrative expenses excluding non-cash compensation expense.

Station Operating Income consists of operating income (loss)
before: depreciation and amortization; time brokerage agreement fees
(income); corporate general and administrative expenses; non-cash
compensation expense (which is otherwise included in station operating
expenses); impairment loss; merger and acquisition costs, other expenses
related to the refinancing; non-recurring expenses recognized for
restructuring charges or similar costs, including transition and
integration costs; and gain or loss on sale or disposition of assets.

Adjusted EBITDA consists of net income (loss) available to common
shareholders, adjusted to exclude: income taxes (benefit); income from
discontinued operations, net of income taxes or benefit; total other
income or expense; net interest expense; depreciation and amortization;
time brokerage agreement fees (income); non-cash compensation expense
(which is otherwise included in station operating expenses and corporate
G&A expenses); other expenses related to the refinancing; impairment
loss, merger and acquisition costs, preferred stock dividends;
non-recurring expense recognized for restructuring charges or similar
costs, including transition and integration costs, and gain or loss on
sale or disposition of assets.

Adjusted Free Cash Flow consists of operating income (loss): (i)
plus depreciation and amortization; net (gain) loss on sale or disposal
of assets; non-cash compensation expense (which is otherwise included in
station operating expenses and corporate general and administrative
expenses); impairment loss; merger and acquisition costs; other income
and non-recurring expenses recognized for restructuring charges or
similar costs, including transition and integration costs; income from
discontinued operations (excluding income taxes or tax benefit); and
(ii) less net interest expense (excluding amortization of deferred
financing costs or debt premium), Adjusted Income Taxes Paid, capital
expenditures and amortizable intangibles.

Adjusted Income Taxes Paid consist of income tax paid, adjusted
to exclude taxes paid related to the gain/loss on sale or exchange of
radio station assets; and taxes paid related to the gain/loss on sale of
redundant property.

Adjusted Net Income (Loss) consists of net income (loss)
available to common shareholders adjusted to exclude: (i) income taxes
(benefit) as reported, including income taxes otherwise included in
income from discontinued operations; (ii) gain/loss on sale of assets,
derivative instruments and investments; (iii) non-cash compensation
expense; (iv) impairment loss; (v) merger and acquisition costs, and
non-recurring expenses recognized for restructuring charges or similar
costs, including transition and integration costs; and (vi) gain/loss on
early extinguishment of debt. For purposes of comparability, income
taxes are reflected at the expected statutory federal and state income
tax rate of 30% without discrete items of tax.

Adjusted Net Income (Loss) Per Share – Diluted includes any
dilutive equivalent shares when not anti-dilutive. Convertible Preferred
Stock is treated as if it never converted for the purposes of Adjusted
Net Income (Loss) Per Share – Diluted.

Non-GAAP Financial Measures

It is important to note that station operating income, station
expense, corporate expense, Adjusted EBITDA, Adjusted Net Income, Adjusted
Net Income (Loss) Per Share – Diluted, Adjusted Free Cash
Flow and Adjusted Income Taxes Paid are not measures of
performance or liquidity calculated in accordance with generally
accepted accounting principles (“GAAP”). Management believes that these
measures are useful as a way to evaluate the Company and the means for
management to evaluate our radio stations’ performance and operations.
Management believes that these measures are useful to an investor in
evaluating our performance because they are widely used in the broadcast
industry as a measure of a radio company’s operating performance.

Certain adjusted non-GAAP financial measures are presented in this
release (e.g., Adjusted Net Income (Loss) and Adjusted Net Income (Loss)
Per Share – Diluted). The adjustments exclude gain/loss on sale of
assets, derivative instruments, and investments; non-cash compensation
expense, other income, impairment loss, merger and acquisition costs,
other expenses related to the refinancing, and gain/loss on early
extinguishment of debt and non-recurring expenses recognized for
restructuring charges or similar costs, including transition and
integration costs. For purposes of comparability, income taxes are
reflected at the expected federal and state income tax rate of 30%,
without adjustment for discrete tax adjustments.

Management believes these adjusted non-GAAP measures provide useful
information to Management and investors by excluding certain income,
expenses and gains and losses that may not be indicative of the
Company’s core operating and financial results. Similarly, Management
believes these adjusted measures are a useful performance measure
because certain items included in the calculation of net income (loss)
may either mask or exaggerate trends in the Company’s ongoing operating
performance. Further, the reconciliations corresponding to these
adjusted measures, by identifying the individual adjustments, provide a
useful mechanism for investors to consider these adjusted measures with
some or all of the identified adjustments.

Management uses these non-GAAP financial measures on an ongoing basis to
help track and assess the Company’s financial performance. You, however,
should not consider non-GAAP measures in isolation or as substitutes for
net income (loss), operating income, or any other measure for
determining our operating performance that is calculated in accordance
with generally accepted accounting principles. These non-GAAP measures
are not necessarily comparable to similarly titled measures employed by
other companies. The accompanying financial tables provide
reconciliations to the nearest GAAP measure of all non-GAAP measures
provided in this release.

Note Regarding Forward-Looking Statements

The information in this news release is being widely disseminated in
accordance with the Securities and Exchange Commission’s Regulation FD.
This
news announcement contains certain forward-looking statements that are
based upon current expectations and certain unaudited pro forma
information that is presented for illustrative purposes only and
involves certain risks and uncertainties within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. Additional information
and key risks are described in the Company’s filings on Forms S-4, 8-K,
10-Q and 10-K with the Securities and Exchange Commission. Readers
should note that these statements might be impacted by several factors
including changes in the economic and regulatory climate and the
business of radio broadcasting, in general. The unaudited pro forma
information and same station operating data reflect adjustments and are
presented for comparative purposes only and do not purport to be
indicative of what has occurred or indicative of future operating
results or financial position. Accordingly, the Company’s actual
performance may differ materially from those stated or implied herein.
The Company assumes no obligation to publicly update or revise any
unaudited pro forma or forward-looking statements.

About Entercom Communications Corp.

Entercom Communications Corp. (NYSE: ETM) is a leading American media
and entertainment company reaching and engaging over 170 million people
monthly through its premier collection of highly rated, award winning
radio stations, digital platforms and live events. As one of the
country’s two largest radio broadcasters, Entercom offers integrated
marketing solutions and delivers the power of local connection on a
national scale with coverage of close to 90% of persons 12+ in the top
50 markets. Entercom is the #1 creator of live, original, local audio
content and the nation’s unrivaled leader in news and sports radio.
Learn more about Philadelphia-based Entercom at www.entercom.com,
Facebook and Twitter (@Entercom).For
further information, or to receive future Entercom Communications news
announcements via e-mail, please contact JCIR at 212/835-8500 or [email protected].

Contacts

Joseph Jaffoni, Jennifer
Neuman, Norberto Aja
JCIR
(212)
835-8500
[email protected]