Take this with grain of salt, it's a press release.
https://investors.iheartmedia.com/news/ ... fault.aspx
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iHeartMedia Announces Cost Savings Initiatives
- audiophile
- Posts: 8660
- Joined: Sat Dec 04, 2004 9:21 pm
- Location: Between 88 and 108 MHz.
iHeartMedia Announces Cost Savings Initiatives
Ask not what your country can do FOR you; ask what they are about to do TO YOU!!
- rugratsonline
- Posts: 496
- Joined: Sat Dec 04, 2004 1:20 pm
Re: iHeartMedia Announces Cost Savings Initiatives
I was expecting them to announce that they're downgrading from a radio equivalent of McDonald's to a radio equivalent of a 7-Eleven.
- MWmetalhead
- Site Admin
- Posts: 12346
- Joined: Sun Oct 31, 2004 11:23 am
Re: iHeartMedia Announces Cost Savings Initiatives
Here's what the press release means in plain speak:
- We borrowed damn near as much as we could borrow under our Asset Based Line of Credit;
- We're stockpiling cash because we think our vendors and customers might be scared shitless by how piss poor our pro forma cash flow from operations looks;
- Our Asset Based Lenders (and other lenders) are basically at our mercy for the time being since the ABL credit facility does not mature until 2023 and is covenant-lite;
- We are hyping our digital business's growth without giving any hard data because the truth of the matter is such growth is only a drop in the bucket compared to how fast we're hemorrhaging revenue at our AM/FM properties, at our concert business, and at Premiere;
- We hope and pray we find a way back to positive cash flow before our Asset Based Line of Credit is deemed a current period maturity.
iHeartMedia is nothing more than a slowly melting glacier...
iHM's stock price was trading around $18 per share earlier this year. It's now trading at $7.48. Earlier this month, the price dipped below $5 per share!
BTW, their outdoor business is f*cked, too. Its stock is trading at $0.76 per share. Within the last 30 days, it was trading as low as $0.36 per share! In January, the stock was trading at much higher levels - around $3 per share.
- We borrowed damn near as much as we could borrow under our Asset Based Line of Credit;
- We're stockpiling cash because we think our vendors and customers might be scared shitless by how piss poor our pro forma cash flow from operations looks;
- Our Asset Based Lenders (and other lenders) are basically at our mercy for the time being since the ABL credit facility does not mature until 2023 and is covenant-lite;
- We are hyping our digital business's growth without giving any hard data because the truth of the matter is such growth is only a drop in the bucket compared to how fast we're hemorrhaging revenue at our AM/FM properties, at our concert business, and at Premiere;
- We hope and pray we find a way back to positive cash flow before our Asset Based Line of Credit is deemed a current period maturity.
iHeartMedia is nothing more than a slowly melting glacier...
iHM's stock price was trading around $18 per share earlier this year. It's now trading at $7.48. Earlier this month, the price dipped below $5 per share!
BTW, their outdoor business is f*cked, too. Its stock is trading at $0.76 per share. Within the last 30 days, it was trading as low as $0.36 per share! In January, the stock was trading at much higher levels - around $3 per share.
Morgan Wallen is a piece of garbage.
Re: iHeartMedia Announces Cost Savings Initiatives
They're going to save $150 million by cutting executive salaries and 401(k) matches? That doesn't seem likely...
- MWmetalhead
- Site Admin
- Posts: 12346
- Joined: Sun Oct 31, 2004 11:23 am
Re: iHeartMedia Announces Cost Savings Initiatives
Here's what the press release said:
I also suspect there'll be another wave of permanent job reductions at some point.
So, a good chunk of the $200 million in "new" savings comes from furloughs that will be financed by our tax dollars.In addition to the in-year expected savings of approximately $50 million related to the modernization initiatives announced in February, the Company has also initiated an additional $200 million in operating expense savings for 2020 driven by:
- Reductions in compensation for senior management and other employees
- Furloughing of certain employees that are non-essential at this time
- Suspension of new employee hiring, travel and entertainment expenses and 401(k) matching program
- Major reduction of consultant fees and other discretionary expenses
Total direct operating expense savings in 2020 are expected to be approximately $250 million
I also suspect there'll be another wave of permanent job reductions at some point.
Morgan Wallen is a piece of garbage.