This week say Cumulus Media Inc. Chief Financial Officer Joseph P. Hannan exit the company after six years “to pursue other interests.” The Atlanta-based radio giant, which lost $546.5 million in 2015, named named John F. Abbot its new CFO as of July 1.
Abbot recently was CFO of Telx Holdings Inc., a provider of connectivity, co-location and cloud services in the data center industry. Before that, he was CFO of cable television company Insight Communications Co.
Noble Financial analyst Michael Kupinski says the move is "not a good sign" for the company.
He commented Thursday:
- Restructuring likely. We believe that JP Hanann's departure is a sign that the company's fundamentals are weak and that a capital restructuring is likely
- Odds for an upturn in fundamentals appear low. In our view, national advertising for the company is expected to be weak and its stations are likely to under perform the industry as a whole
- Equity could get wiped out in a capital restructuring. Near current levels, CMLS shares trade at 8.9 times enterprise value to estimated 2016 cash flow