It’s pretty much the same as it has been for quite some time, a smidge over $20 billion. Company executives would not discuss the debt situation on the Wednesday earnings call, citing ongoing negotiations to get that resolved. So, let’s dig a little bit more into the numbers.
The company lost $248.1 million in the quarter compared to $35 million in Q3 2016. For the first nine months of 2017 the company has lost $810 million compared to $402 million a year earlier. In Q3 alone, interest expense was $470 million. The company expects to dole out $1.8 billion dollars in interest expense in 2017, including $344.6 million in Q4.
Through September 30, 2017 iHeartCommunications had $286.4 million in cash, compared to $845 million at the end of 2016.
Several analysts asked questions about debt and liquidity during the earnings call but all were swatted away.
From the iHeart Q3 earnings press release, we find this statement: “Although we have generated operating income in excess of $1.0 billion in each of the years ended December 31, 2016 and 2015, we incurred net losses and had negative cash flows from operations for each of these years as a result of significant cash interest payments arising from our substantial debt balance. For the nine months ended September 30, 2017, we used cash of $558.7 million for operating activities, which included cash paid for interest of $1,426.4 million. Our current forecast indicates we will continue to incur net losses and generate negative cash flows from operating activities as a result of our indebtedness and significant related interest expense.”