We now have a greater window into’s Audacy financial uncertainty as revealed in its recent 10-Q filing with the Securities and Exchange Commission. After quietly releasing its second quarter 2023 financial results after undergoing a 1-for-30 reverse stock split, the company’s status as a “Going Concern” and plans to sell assets in Phoenix and Boston have left stakeholders anxious.
As reported by Radio Ink’s sister publication RBR+TVBR, the “Going Concern” statement in the 10-Q filing has prompted Audacy to critically review its liquidity and anticipated capital requirements due to significant macroeconomic uncertainty. The company’s shares, trading as “AUDA” on the Over-the-Counter market, were down to 95 cents on Tuesday, indicating continued noncompliance issues with the NYSE.
Audacy’s management continues to manage liquidity and debt covenant compliance, with actions including divesting non-strategic assets. These efforts have been noted in Buffalo and Memphis, and plans were shared to sell “certain assets” in Phoenix and Boston during Q2 2023. However, these transactions are not expected to involve a station sale and collectively amount to a carrying value of approximately $2.5 million.
While nearly $2.5 million from the sale could aid Audacy’s financial situation, the company’s statement warns that there are still indications of trouble ahead, with forecasts unlikely to be sufficient to maintain compliance with financial covenants for the coming year. This could lead to default, acceleration of related debt, and potential restructuring under bankruptcy protection. Chapter 11 might even be on the horizon for Audacy, further raising substantial doubts regarding the company’s future.
With $926.4 million of debt maturing in 2024 and the still-deflating shares prices, the overall picture raises serious concerns.
