The objective of this study was to analyze the financial statements and current financial situation of Citadel Communications Corporation (the Company) and its operating subsidiary, Citadel Broadcasting Company (Citadel). The Company is described as a mid-sized market radio broadcaster that, upon completion of pending transactions, will own or operate 138 FM and 61 AM stations concentrated in 42 mid-sized markets (Business Wire, 2000a). Its stations work to establish themselves under brand names such as "The Bull" or "Cat Country" and to popularize their drive-time, on-air personalities (Hoover's Online, 2000).
The Company appears to be in excellent overall financial health, with 199 sales of $178.5 (millions) and a 1-year sales growth rate in 1999 of 31.8 percent. Net income for 1999 was $9.0 (millions); a total of 1,970 employees were associated with the Company in 1999, with a 1-year employee growth rate of 25.8 percent. The Chairman, President and Chief Executive Office (CEO) of the Company is Lawrence R. Wilson (Hoover's Online, 2000).
First-quarter 2000 financials also indicate continued growth For the three months ended March 1, 2000, consolidated net revenue increased 47.8 percent to $46.1 million from $31.2 million in the same period of 1999. Broadcast cash flow (BCF), defined as station operating income including depreciation, amortization and corporate general and administrative expenses) rose 70.5 percent to $13.3 million in the first quarter of 2000, compared to $7.8 million in the corresponding period of 1999 (Business Wire, 2000a). CEO Lawrence Wilson commented that:
Citadel achieved explosive growth in the first quarter,
underscoring its leadership position as the industry's
premier radio broadcaster in mid-sized markets. Demand
for advertising was strong, with both national spots and
local categories posting double-digit gains during the
quarter. Reflecting our successful acquisition a...