Entercom Communications Q1 Adjusted Profit Jumps 125%

Entercom Communications Corp. ETM said its net income for the first quarter was $3.99 million or $0.10 a share compared to a net loss of $93 million or a loss of $0.00 a share in the year-ago quarter. On an adjusted basis, the company said that its earnings jumped 125 percent to $0.09 a share, which was $0.02 a share higher than the street analysts' expectations.

Entercom said its net revenues increased 23 percent to $96.1 million in the March quarter from $78.42 million in the previous year quarter. This was also better than the $93.90 million predicted by the Street analysts.

President and CEO David Field said, "I am very pleased to report that the Entercom team delivered an outstanding first quarter, growing revenues by 6% on a same-station basis. Adjusted earnings per share and free cash flow both more than doubled and we continue to enhance our strong balance sheet."

He continued, "Our performance is being driven by many factors, most notably our strategic focus on strong local brands and personalities, and our enhanced sales execution and capabilities. I am also delighted to announce today that Entercom is initiating a quarterly cash dividend of 7 1/2 cents per share, commencing in June. Looking ahead, we feel good about our growth prospects and believe we are well-positioned for continued success."

Entercom also disclosed its Board approved the initiation of a regular quarterly cash dividend program. Accordingly, it declared a dividend of $0.075 per share. The company indicated that the dividend would be payable on June 15, to shareholders of record as of May 25.

On Friday, the stock closed 2.72 percent higher.