Audacy Stock today

[davideduardo]

All of the assets transferred to Audacy Atlas *maybe* on a good day are capable of commanding $150 million in proceeds in aggeregate (most of that would come from tower site sale-leasebacks) ?

I'm taking a total stab in the dark on that number.

While that might give the company room some wiggle room from either a liquidity or lender appeasement vantage point, that doesn't strike me as a number sufficient to resolve the company's financial ailments on a long-term basis.

It could serve as a component of a broader, more comprehensive strategy, though.

It lets them pay the interim interest payment, but not the settlement due next year (IIRC).

 

[Deleted User]

What group is next to circle the drain?

Beasley is under performing in a huge way

They have a way til they hit bottom, but considering how many friends of mine they have screwed over I'm not going to cry if any members of the Beasley family have to sell of their mansions in Florida.

 

[TheBigA]

What group is next to circle the drain?

It's sort of a misnomer, because all of the radio companies that have gone through bankruptcy lately are still in business. Cumulus, iHeart, Alpha, Bustos, and several others are still in the radio business. We really haven't seen a total liquidation in a while. And as far as losing their mansions, the way companies are set up, with "limited liability," none of the key people ever put their own fortunes or property at risk. Take a look at Ed Stolz and his Royce company. He is protected from any liability, regardless of what happens to his stations. Employees of these companies need to understand this.

 

[Johnburrows]

The idea of a stock market is that anyone can buy or sell shares at will.

This is true, but the super rich can manipulate it. I’m sure if you or I had some shares, we would not have enough to manipulate an entire stock price. It’s a rich vs poor thing. The rich control everything .

 

[Johnburrows]

It's sort of a misnomer, because all of the radio companies that have gone through bankruptcy lately are still in business. Cumulus, iHeart, Alpha, Bustos, and several others are still in the radio business. We really haven't seen a total liquidation in a while. And as far as losing their mansions, the way companies are set up, with "limited liability," none of the key people ever put their own fortunes or property at risk. Take a look at Ed Stolz and his Royce company. He is protected from any liability, regardless of what happens to his stations. Employees of these companies need to understand this.

Of course they are in business. They restructured their entire debt for far less than they owed

 

[TheBigA]

It’s a rich vs poor thing. The rich control everything .

Welcome to the real world. The choice is between the rich or the state. In communist countries, the state controls everything.

Which do you prefer?

 

[TheBigA]

Of course they are in business. They restructured their entire debt for far less than they owed

But they gave up equity. So now the lenders own the company and they decide how the company is run.

 

[Johnburrows]

That this thread is exploring the financial aspect of broadcasting and media is particularly interesting.

As relates to stock buybacks, I think those posters here who oppose buybacks are specifically referring to companies that have received bailouts from the federal government, that is taxpayer dollars, to buy back stock. Typically, this drives up the share price which also inflates the CEOs and COOs compensation that may be based on the value of the stock. Here's the perspective of Robert Reich, a particularly knowledgeable chap when it comes to economics.

Now, as to "kicking the can down the road;" this is a common ploy that's been used in a number of businesses. However, it may not be the ideal time to make such an "ask." We may be at the dawn of another banking crisis which certainly would not be kind to media businesses in distress.

Read this assessment and take note of the chart just under the second paragraph. Next week, which coincides with Audacy's investor conference call, could be a particularly stressful week for banks and lending institutions. Time will tell, but this may turn into a disturbingly rough road for Audacy.

If one opposes stock buybacks, it’s because only the rich with a ton of stock that can actually buy back and MANIPULATE the stock price, so the not so rich will invest on what they think is true progress with a stock on the upswing.

 

[Johnburrows]

Welcome to the real world. The choice is between the rich or the state. In communist countries, the state controls everything.

Which do you prefer?

This poster prefers leveling the playing field. A company should not have the right to purposefully inflate a stock price knowing the business itself is not performing well

 

[Johnburrows]

But they gave up equity. So now the lenders own the company and they decide how the company is run.

Cumulus/Citadel filed 2x! They still can’t get it right. Look at their financials. It’s as simple as this. Too much debt, not enough revenue

 

[Johnburrows]

What group is next to circle the drain?

Beasley is under performing in a huge way

They have a way til they hit bottom, but considering how many friends of mine they have screwed over I'm not going to cry if any members of the Beasley family have to sell of their mansions in Florida.

Audacy is actually running at a net revenue LOSS. They are not making 1 penny as a company. They are just paying off huge interest on the debt and expenses they took on. Go to financials and look at NET REVENUE MARGINS. Tells you all you need to know

 

[TheBigA]

If one opposes stock buybacks, it’s because only the rich with a ton of stock that can actually buy back and MANIPULATE the stock price, so the not so rich will invest on what they think is true progress with a stock on the upswing.

Have you ever bought stock? It sounds like you haven't. Anyone who buys any stock is warned to do research on what they're buying, because stocks can lose value. All internal purchases are reported to the SEC and are made public. Last year, there was a small scandal when it was disclosed that some stocks were being driven by shady forces. There is no safe place to put money, as seen by yesterday's collapse of the Silicon Valley Bank.

This poster prefers leveling the playing field. A company should not have the right to purposefully inflate a stock price knowing the business itself is not performing well

There is no level playing field in a free market economy. How much government interference do you want in the economy?

Cumulus/Citadel filed 2x! They still can’t get it right. Look at their financials. It’s as simple as this. Too much debt, not enough revenue

If they can get lenders to give them money, they can stay in business. It's a free country.

 

[Johnburrows]

EBITA for Audacy, which as you know is cash flow, or net profit is minus 10 million. They are operating their company 10 million in the hole. So how do you get out of that? Either decrease expenses 10 mill, increase rev 10 mill, and then your just even.

this company has about 1.2 billion in gross revenue and 1.3 in expenses.

they gave to liquidate, restructure, or sell.

they won’t sell as they would get killed.

they will liquidate to get them back a little bit.
they will restructure with chapter 11

 

[Johnburrows]

Have you ever bought stock? It sounds like you haven't. Anyone who buys any stock is warned to do research on what they're buying, because stocks can lose value. All internal purchases are reported to the SEC and are made public. Last year, there was a small scandal when it was disclosed that some stocks were being driven by shady forces. There is no safe place to put money, as seen by yesterday's collapse of the Silicon Valley Bank.



There is no level playing field in a free market economy. How much government interference do you want in the economy?



If they can get lenders to give them money, they can stay in business. It's a free country.

No, I don’t buy stock. I invest very conservatively.

I am all for free enterprise and capitalism, but the game is tilted by the Uber rich, which is a shame. It is what it is I guess.

I realize stock buy back is legal. But what novices do not realize is that it is done purposefully to manipulate stick price. They then lose, as the stock goes lower much after that.

You are very right in what you are saying, which is essentially, “oh well, that’s the way it is”.

If that’s the case, you really should not have an opinion on this either way. It just is what it is.

Also, yes, there are safe and safer places to put your money. A publicity traded bank is not one of them

 

[flybynight]

Plus you have 7% inflation driving up operating costs.

That 7% is hitting employees more than the company itself, unless the company is hellbent on giving everybody a 7% raise---and considering how much radio companies love giving raises, I'm sure this is quite a dilemma for them.

 

[davideduardo]

I realize stock buy back is legal. But what novices do not realize is that it is done purposefully to manipulate stick price. They then lose, as the stock goes lower much after that.

Of course it increases the value of each remaining share, as the totality of the company is divided fewer ways. And the profit per share is raised because total net income is divided into fewer parts.

Also, yes, there are safe and safer places to put your money. A publicity traded bank is not one of them

Actually, most bank shares are a very good investment. Like cars or "significant others", there are good choices and bad ones.

 

[Rusty Bridges]

And yet, after all this back and forth, it's strange that big-signal 102.5 was included in Audacy Atlas ... unless maybe it's a two-fer deal. Want the big FM? You gotta take the weakling 107.7 too. Spinning 102.5 and 107.7 would leave Audacy with WBEN; WGR; WWWS + translator; and Kiss 98.5 ... seems a very weak combo to sell or divest. And the more thought given, would it be a surprise to see WWKB and WGR moved to Grand Island, 1520 reduced to a 10k DA day/1k DA night signal with just enough RF to cover the city of license, and WGR running 5k day non-DA (as present) / 1k DA night, diplexed on the WBEN Grand Island two tower array.

 

[davideduardo]

EBITDA for Audacy, which as you know is cash flow, or net profit is minus 10 million. They are operating their company 10 million in the hole. So how do you get out of that? Either decrease expenses 10 mill, increase rev 10 mill, and then your just even.

EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization. It is not net income "less 10 million". It is net income less those four non-operational expenses. In the case of Audacy, Interest is many times more than $10 million.

In 2021, Audacy had $92,100,000 in interest expense. And $52.1 million in amortization and depreciation. It had EBITDA of $145,000,000 but the total of interest and depreciation/amortization ate it all up.

this company has about 1.2 billion in gross revenue and 1.3 in expenses.

Including interest, amortization and depreciation. On operations, they made $132,000,000.

 

[TheBigA]

That 7% is hitting employees more than the company itself, unless the company is hellbent on giving everybody a 7% raise---and considering how much radio companies love giving raises, I'm sure this is quite a dilemma for them.

You don't think inflation hits a company when they pay for office supplies, gas for company vehicles, leases, utilities, or insurance?

But yes, Audacy just did a new contract for union workers in NYC, and they all received a raise.

 

[SirRoxalot]

And yet, after all this back and forth, it's strange that big-signal 102.5 was included in Audacy Atlas ... unless maybe it's a two-fer deal. Want the big FM? You gotta take the weakling 107.7 too. Spinning 102.5 and 107.7 would leave Audacy with WBEN; WGR; WWWS + translator; and Kiss 98.5 ... seems a very weak combo to sell or divest. And the more thought given, would it be a surprise to see WWKB and WGR moved to Grand Island, 1520 reduced to a 10k DA day/1k DA night signal with just enough RF to cover the city of license, and WGR running 5k day non-DA (as present) / 1k DA night, diplexed on the WBEN Grand Island two tower array.

Isn't the Buffalo FM cap at 4 for any owner? Cumulus is the only big player with any room and perhaps attractive stations in other markets for a swap if it's not a straight cash deal. I'd guess it would be a cash+swap deal with Cumulus for 102.5 and maybe a straight-out sale for 107.7. Buddy's been after that for a long time and can probably raise the money for it, especially if Audacy has already written down the value.

Audacy can fund raises for the people who are left after the next round of cuts. Another consideration that deserves a hard look is what's included in amortization and depreciation. Are they writing down the value of the stations they own like many other groups are? Is that a tactic to convince existing investors that they won't get much if they force a bankruptcy and take the stations in return? It's arguable that radio stations aren't worth what they once were, but some of the write-downs recently from other owners seem a bit extreme.