Trading of Audacy stock was halted Tuesday afternoon with the New York Stock Exchange informing the Philadelphia-based audio content provider that it will initiate a delisting proceeding.
In a memo to employees, Audacy CEO David Field said the NYSE informed the company Tuesday that it was not in compliance with continued listing standards because its common stock traded at an “abnormally low selling price.”
When trading of Audacy stock was halted at 2 p.m., the share price was down more than 12% to 9 cents from Monday’s close of 11 cents.
The Philadelphia Business Journal reports Field said Audacy intends to appeal the NYSE’s decision to delist the company's stock. Audacy was planning to conduct a reverse stock split, where shares of the company’s stock are effectively merged to form a smaller number of proportionally more valuable shares. If it reduced the number of its shares tenfold at Monday's closing price, the per-share value would exceed the required $1. The NYSE requires shareholder approval to conduct a reverse stock split, something sources said the company is planning to do at its annual shareholder meeting on May 24.
“The timing of today’s events is unfortunate since a reverse stock split could have avoided us tripping the NYSE’s “abnormally low selling price” standard,” Field said in the memo.
During the appeal period, Field said Audacy will remain an NYSE-listed company but NYSE trading will be suspended and the company’s common stock will be traded over the counter. He said Audacy expects the appeal process to take place over the summer and the company is hopeful it will find its way back to the exchange later this year as it implements plans that include the reverse stock split, the continued execution of liability management plans and working with its financial advisors to refinance debt. If the appeal is ultimately unsuccessful, Field said Audacy may move its stock to another exchange or trading platform.
“While this news is disappointing, it has zero impact on Audacy’s ability to serve listeners and customers or run our operations effectively,” Field said. “To be clear, we are business as usual. Our radio stations, digital platforms, podcasts, and all other products and services will continue operating normally. We continue to execute a robust action plan to emerge healthy from current conditions.”
The NYSE informed the company last August that it was not in compliance with its listing standards, which require a minimum average closing price of $1 per share over 30 consecutive trading days. Audacy has been facing the prospect of delisting ever since.
Audacy’s stock price last exceeded $1 on July 5. When the NYSE sent its notice on Aug. 1, Audacy's stock closed at 59 cents. The current share price of 9 cents is close to a 52-week low for the stock, with the high being $1.94. That represents a sharp decline from the nearly $11 its stock was trading at when Audacy acquired CBS Radio in November 2017.
Last week, after another quarter of declining revenue and soft advertising demand, top executives at Audacy faced some tough questions from analyats. The company experienced a revenue decline of 5.7% in the first quarter, with an operating loss of $12.2 million compared to operating income of $8.5 million during the same quarter last year. It reported adjusted EBITDA of $3.5 million and a net loss of $35.9 million in 1Q compared to $26 million in adjusted EBITDA and an $11 million net loss during the first three months of 2022.
The company also said the soft advertising demand that has been in place for the past year could get worse before getting better.
Audacy has more than 220 radio stations across the country.
When trading of Audacy stock was halted at 2 p.m., the share price was down more than 12% to 9 cents from Monday’s close of 11 cents.
.png) |
| David Field |
“The timing of today’s events is unfortunate since a reverse stock split could have avoided us tripping the NYSE’s “abnormally low selling price” standard,” Field said in the memo.
During the appeal period, Field said Audacy will remain an NYSE-listed company but NYSE trading will be suspended and the company’s common stock will be traded over the counter. He said Audacy expects the appeal process to take place over the summer and the company is hopeful it will find its way back to the exchange later this year as it implements plans that include the reverse stock split, the continued execution of liability management plans and working with its financial advisors to refinance debt. If the appeal is ultimately unsuccessful, Field said Audacy may move its stock to another exchange or trading platform.
“While this news is disappointing, it has zero impact on Audacy’s ability to serve listeners and customers or run our operations effectively,” Field said. “To be clear, we are business as usual. Our radio stations, digital platforms, podcasts, and all other products and services will continue operating normally. We continue to execute a robust action plan to emerge healthy from current conditions.”
Audacy’s stock price last exceeded $1 on July 5. When the NYSE sent its notice on Aug. 1, Audacy's stock closed at 59 cents. The current share price of 9 cents is close to a 52-week low for the stock, with the high being $1.94. That represents a sharp decline from the nearly $11 its stock was trading at when Audacy acquired CBS Radio in November 2017.
Last week, after another quarter of declining revenue and soft advertising demand, top executives at Audacy faced some tough questions from analyats. The company experienced a revenue decline of 5.7% in the first quarter, with an operating loss of $12.2 million compared to operating income of $8.5 million during the same quarter last year. It reported adjusted EBITDA of $3.5 million and a net loss of $35.9 million in 1Q compared to $26 million in adjusted EBITDA and an $11 million net loss during the first three months of 2022.
The company also said the soft advertising demand that has been in place for the past year could get worse before getting better.
Audacy has more than 220 radio stations across the country.
No comments:
Post a Comment