Wednesday, May 3, 2017
iHM Expected To Disclose Insolvency Concerns
According to mysanantonio.com, the radio and billboard giant is expected to resume a string of 27 quarterly losses that was interrupted by a profit in the fourth quarter that came from a $40.6 million one-time gain from the sale of some of its U.S. billboards.
The company warned investors April 20 that it may not survive the next 10 months. IHeart has generated negative cash flow over the last two years, meaning that it’s spending more money on its debt and other expenses than it’s generating. And this year will be no different, the company said. It said the first quarter results will also be weighed down by a $12.8 million charge tied to fluctuations in foreign exchange rates.
Seth Crystall, a Debtwire senior credit analyst, said the loss this year will be higher than the $88.5 million it lost in the first quarter of 2016 when the company pared its losses by selling off some of its assets.
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Posted 2:00:00 AM