Making Radio Stronger In A Disaster
DG Lost $98.6 Million in First Nine Months
11-16-2012
That's according to the latest 10Q filing by Dial Global. One year ago the company reported a loss of $17 million. For the quarter, DG lost $71 million, compared to $5.2 a year earlier. Keep in mind, Dial Global merged with Westwood One a little over a year ago. And, there's more. DG blames some of its bad numbers on "a certain nationally syndicated talker."
The filing also says based on current projections, and minus any outside debt or equity capital, Dial Global will breach its debt leverage and interest coverage accounts for December and beyond. And, here are the reasons for that.
The Dial Global filing says "We believe our 2012 results were adversely impacted by, among other things, late cancellations in ad buys (which we believe was a by-product of the election and renewed economic uncertainty), competitive factors, such as a greater diversity of digital ad platforms (into which ad budgets have flowed) and increased competition from our major competitors, and advertisers' response to controversial statements by a certain nationally syndicated talk radio personality in March 2012."
"If we are unable to obtain further amendments to our Credit Facilities to modify the requirements of the financial ratio covenants contained therein and certain other terms thereof, depending on our future results, management cannot assure that we will be in compliance with the terms of the Credit Facilities in subsequent periods in 2013 or thereafter absent additional debt or equity capital from third parties. The discussions with our lenders to date have contemplated a separate comprehensive amendment to our Credit Facilities to better position the Company to achieve compliance with the terms of its Credit Agreements in the future, and the waiver is intended to provide the parties further opportunity to continue these negotiations."
"There can be no assurance, however, that the lenders under the Credit Facilities will agree to amend the Credit Facilities in the manner we seek, on terms acceptable to us, or at all. As a result, it is possible that we will not be in compliance with the terms of the Credit Facilities in future periods, which would result in an event of default under the Credit Facilities. If such an event of default occurs, there can be no assurance that the lenders under the Credit Facilities will grant us a waiver on terms acceptable to us, or at all."
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(1/23/2013 7:11:31 PM) DG has the exact same management styles as it did 10 years ago. It keeps new talent in useless positions while keeping old, stale programmers in programming positions. Society evolves and grows while DG doesn't. Much like the majority of the radio industry, the "out with the old and in with the new" needs to happen regularly and often. '30 years experience' in media should not be a sign to hire, but a sign to find someone younger. |
| - Annoyed |
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(1/10/2013 2:54:27 PM) Did anyone ever really think this company was well managed? |
| - Ebogle |
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(12/14/2012 12:34:46 PM) Has anyone taken a close look at this company's balance sheet? Here is the newsflash: Dial Global is on the verge of bankruptcy. It has about $16M in the bank and $247M of debt due in the next year. Why does the industry not recognize this? |
| - David Thomas |
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(11/16/2012 5:52:32 PM) Schultz may have "suspended" himself, staying one step ahead of his network, but the proverbial toothpaste was already out of the tube. Laurence, I sense the knee-jerk double standard of the group you speak for...the same group, by the way, that called for the boycott on Rush. A boycott that failed, but also an attempt (again) at stifling comment. You should be ashamed, but I suspect you're not. Indeed you feel a sense of self-righteousness. |
| - Sluggo |
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(11/16/2012 1:31:15 PM) After Ed Schultz called Laura Ingraham a "slut", he apologized profusely and actually imposed a suspension on HIMSELF. And if Dick Cheney had died even before he gulled 'W' into naming him VP, the latter might not have involved the country in its biggest misadventure. |
| - Laurence Glavin |
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