Audacy Stock Trading Halted

[TheBigA]

Heard an interesting statistic just today: Of all active podcasts, what is the highest subscriber percentage of any podcast? 5% That podcast? Joe Rogan.

Spotify has several podcasts in the Top 10 most popular. Podcasting is paying for Spotify.

If you look at the Top 50, you'll see NPR, iHeart, Cumulus, WNYC, and WHYY. No Audacy or either of the podcasting companies Audacy bought. To make the list, all they need to do is get a couple million downloads per episode. They need to think in terms of creating national content. That's been hard for them to do.

 

[TheBigA]

The annual Audacy stockholder's meeting took place yesterday, and they voted in favor of the company enacting a reverse stock split:

Stockholders Approve Audacy Reverse Stock Split.

To satisfy New York Stock Exchange rules, Audacy will execute a reverse stock split that will reduce the number of its outstanding shares and increase its share price accordingly. During

www.insideradio.com

The details of the split will be worked out by the company. The intent is for the stock to be returned to the NYSE.

 

[Kelly A]

The annual Audacy stockholder's meeting took place yesterday, and they voted in favor of the company enacting a reverse stock split:

The details of the split will be worked out by the company. The intent is for the stock to be returned to the NYSE.

I suppose it was about their only alternative, but a very temporary solution at best.

If Audacy is going to join the already crowded integrated digital media playfield, they're going to need disposable capital. As we've seen with other traditional/integrated media companies recently, stock investors are looking past media companies in any form. Banks aren't lending to traditional media companies, and even if they did, interest rates on revolving credit lines are ridiculous. I suppose they might find a hedge fund or well heeled VC like Black Rock to buy in, but Audacy would have to make the case that they have some revolutionary new application or service which iHeart, Liberty, Meta, or whomever else doesn't have. I think we all know the likelihood of that occurring.

 

[Mark Roberts]

I suppose it was about their only alternative, but a very temporary solution at best.

If Audacy is going to join the already crowded integrated digital media playfield, they're going to need disposable capital. As we've seen with other traditional/integrated media companies recently, stock investors are looking past media companies in any form. Banks aren't lending to traditional media companies, and even if they did, interest rates on revolving credit lines are ridiculous. I suppose they might find a hedge fund or well heeled VC like Black Rock to buy in, but Audacy would have to make the case that they have some revolutionary new application or service which iHeart, Liberty, Meta, or whomever else doesn't have. I think we all know the likelihood of that occurring.

You'd be amazed at what private equity will fall for. Look at the track records of certain public employee pension funds, especially, for some reason, Canadian ones. They would have done better to buy index funds and ride the markets.

 

[Kelly A]

You'd be amazed at what private equity will fall for.

On the heels of the 2008 recession which crushed traditional media values, PE and hedge funds started figuring out that there was little future to traditional radio and TV. With the plummeting of values post-recession, there wasn't even upside of liquidating properties, should their investment not pan-out.

Not much has changed, if anything the climate has gotten worse. Fast forward to 2021 where social media companies have burned through cash due to excessive growth, but are getting caught up in a similar concern of little to no growth (aka increased revenue). Here in 2023, private equity sees no upside for investing in media companies, especially one's that mainly do just radio.

Look at the track records of certain public employee pension funds, especially, for some reason, Canadian ones. They would have done better to buy index funds and ride the markets.

And I think they'd agree with that comment. Hedge funds, private equity, venture capital, and good ol' fashioned banks, have had fourteen years to figure out that as investments; ad-supported media likely doesn't have a bright future ahead.

 

[Mark Roberts]

I'm actually in agreement with you, but my point is not to underestimate the degree to which private equity is willing to place risky bets. People who say they're quantitatively driven often really aren't. Greater fool theory, and all that.

 

[Larry]

The details of the split will be worked out by the company. The intent is for the stock to be returned to the NYSE.

But is the NYSE obligated to take them back, especially since after the reverse stock split the per share price might only be at $1.00 per share or higher for a few days if at all.

 

[Kelly A]

But is the NYSE obligated to take them back, especially since after the reverse stock split the per share price might only be at $1.00 per share or higher for a few days if at all.

Sure, if the per-share price goes above a couple bucks after the reverse split. Buy's Audacy some time to figure something out.

 

[secondchoice]

IIRC don't they have a big payment due in 2024? Any stock price manulapations will not matter if they can not renegotiate with the lenders. The current ownership had better figure out a plan to show growth in the EBITDA between now and the debt bomb explosion so the lenders see some light at the of the tunnel and don't force a bankruptcy and take over and leave the shareholders with nothing.

 

[TheBigA]

IIRC don't they have a big payment due in 2024? Any stock price manulapations will not matter if they can not renegotiate with the lenders.

Field talked about that in the previously linked articles. He also said that the company has $124 million in cash on hand, which is targeted towards that big payment.

 

[PTBoardOp94]

But is the NYSE obligated to take them back, especially since after the reverse stock split the per share price might only be at $1.00 per share or higher for a few days if at all.

No, they are not obligated.

The NYSE has a second listing rule, regarding market capitalization. A company must have at least $40 million in market capitalization (share price times number of shares) to list itself on the NYSE according to stock exchange rule 802.01(b).

Audacy is currently just over $9 million in market cap.

There may be exceptions to the rule that Audacy might use. Far from an expert on NYSE rules.

 

[secondchoice]

Field talked about that in the previously linked articles. He also said that the company has $124 million in cash on hand, which is targeted towards that big payment.

I believe in November 2024 $632million is due.

Was the sale of $56 million worth of land part of the $124 million? If so the math looks bad to me

 

[TheBigA]

I believe in November 2024 $632million is due.

Was the sale of $56 million worth of land part of the $124 million? If so the math looks bad to me

Here's a link to a story that addresses those points:

Facing Some Big Debt Hurdles, Audacy Says It Has Started Talks With Lenders.

The date may be two years away, but Audacy executives said this week they are already spending plenty of time thinking about Nov. 17, 2024. That is when $632 million

www.insideradio.com

“There are outlines of deal that could accomplish extending our maturities and perhaps other benefits, but it's early stages yet,” Schmaeling said. “I think those conversations will continue for a number of months until we finally get to a point where we have an agreed solution to refinance our 2024 maturities and perhaps other benefits.”

 

[101tm]

Looks like Audacy is continuing to hire (back) talent, another victim of the 2020 “restructuring”:

Greg Ranieri Returns To Audacy As KSON/KWJJ Assistant Brand Manager

After spending the past couple years in the record industry, Greg Ranieri is returning to Audacy as Assistant Brand Manager

radioinsight.com

 

[Y2kTheNewOldies]

https://news.****************/articles/n43722/Audacy-Inks-EVP-COO-Susan-Larkin-to-New-Agreement

Here is more on Audacy. Susan Larkin gets a new contract with Audacy that runs until 2026.

During its annual meeting of shareholders, Audacy's board of directors renewed one executive's contract while a board member has left the company. Executive VP/COO Susan Larkin has signed a new deal keeping with Audacy through at least May 4, 2026, with automatic one-year extensions thereafter unless either party cancels with prior notice. Larkin will make a base salary of $775,000 in the first year, $800,000 in the second year and $825,000 in the third year, plus performance bonuses.

 

[TheBigA]

Salem Media has joined the radio groups (including Audacity) that are not in NASDAQ compliance.

Salem Media Group Falls Out Of Nasdaq Compliance

Salem Media Group has become the latest radio company to see its stock fall out of compliance with its stock

radioinsight.com

 

[101tm]

Salem Media has joined the radio groups (including Audacity) that are not in NASDAQ compliance.

Salem Media Group Falls Out Of Nasdaq Compliance

Salem Media Group has become the latest radio company to see its stock fall out of compliance with its stock

radioinsight.com

While I’m not a fan of the programming Salem puts out, they do seem to be a much more stable and diversified company than AUD. They have non-broadcast assets. It’s hard to find much of a silver lining in anything about Audacy.

 

[secondchoice]

After the Clear Channel / iHeart and Cumulus Bankruptcies, unless you hate you inverters, why would a fund manager have any radio companies stock or debt in their portfolio? There are folks that will take debts that are in or headed towards bankruptcy for a severe discount. The stock price per share isn't worth a lottery ticket. If you really to gamble buy a thousand or two and hope for the best. I would save my money and buy an I bond. At least I would have my principle, interest an inflatable factor protection.

 

[davideduardo]

After the Clear Channel / iHeart and Cumulus Bankruptcies, unless you hate you inverters, why would a fund manager have any radio companies stock or debt in their portfolio? There are folks that will take debts that are in or headed towards bankruptcy for a severe discount. The stock price per share isn't worth a lottery ticket. If you really to gamble buy a thousand or two and hope for the best. I would save my money and buy an I bond. At least I would have my principle, interest an inflatable factor protection.

A lot of the mutual fund investing is in "Total Market" shares. So, if the stock is listed, it is bought in proportion to the market cap of the firm.

 

[secondchoice]

Index funds and a lot of ETFs have "managers" who follow a "formula". These are not considered "managed". The industry term is passive managed. The active managed funds have managers (and researchers) who are supposed make trades that out perform the market. That doesn't happen too often