Entercom uses record free cash flow to repurchase bonds during second quarter

By Jennifer Lanning Drey

Portland, Ore., Aug. 4 - Entercom Communications Corp. reported record free cash flow during the second quarter, which allowed the company to repurchase $10 million of its senior subordinated notes in the public market at a discount rate, Stephen Fisher, chief financial officer of Entercom, said Monday during the company's quarterly earnings call.

Entercom also repurchased 1.3 million of its common shares during the quarter.

The company reported free cash flow of $32.6 million for the second quarter, up from $26.1 million in the second quarter of 2007. The growth was fueled by significant reductions in interest expense and time brokerage agreement fees over the prior year, Fisher said.

Moving forward, the company's primary focus will remain on preserving the integrity of its balance sheet, making acquisitions unlikely, he said.

Entercom's second-quarter EBITDA fell 2% to $44.4 million from $45.2 million in the prior-year quarter. Net revenues dropped by 1% while same-station net revenues decreased by 2% as the company faced difficult deteriorating general economic conditions.

"In the context of the economic and competitive environment we have been facing, I am very pleased by Entercom's second-quarter performance," David J. Field, chief executive officer of Entercom, said during Monday's call.

The company said third-quarter results will reflect declining business fundamentals, but Field said his long-term outlook for the industry remains positive.

"Radio listening remains extremely healthy, in sharp contrast to certain other traditional media that are suffering significant audience erosion and business model deterioration," he said.

Entercom is a Bala Cynwyd, Pa., radio broadcasting company.

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