Memorial Day

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While we view Memorial Day as the official summer kick off and enjoying a B-B-Q with friends or family, please remember to set aside some time to honor the service men and women who made the ultimate sacrifice for our freedom. That freedom extends into radio in the form of Freedom of Speech. Whether you agree or disagree with a host, your right to do so is largely a result of those who have gone before us to secure that freedom.

Gene Burns, an unforgettable icon in radio history, believed that talk radio played a crucial role in exercising and preserving our First Amendment Right. He gave one of the most moving speeches about the Freedom of Speech when he accepted the “Freedom of Speech” award at Talker’s. It was so long ago, there is no recording that we could locate (still working on it), but we did find some YouTube videos of Gene that make one realize that even though everything seemingly changes, everything really is the same…. Michael Harrison, founder of Talker’s Magazine and host of podcast Up Close and Far Out is also a huge proponent of Freedom of Speech. He said this in an interview on KNPR “I think talk radio is a very vital expression of the First Amendment,” he said, “And I think that the First Amendment, freedom of speech, is not a tidy affair. You cannot have free speech and have it be nice or the way you like it or only the truth or only things that are political correct. Free speech is the foundation upon which America is built.”

Take a minute this weekend when you’re listening to the radio or watching YouTube videos, about whatever content that you have the freedom to choose, to say thanks to all of those that died to secure your freedom.

May we never forget freedom isn’t free.

Is Radio Ready for a Shakeup?

Important happenings on the horizon – Talker’s Magazine recently shared iHeartMedia’s reports of their “Preliminary Q1 Results Expressing ‘Substantial Doubt’ About Future Given Current Debt Obligations.

What does this mean for radio as we know it right now? No one really knows. IheartMedia currently consists of two main media businesses – Clear Channel Outdoor Holdings and iHeartMedia. According to their website, iHeartMedia currently owns and operates 858 broadcast radio stations serving more than 150 markets, many stations that all of us listen to on a regular basis.

In the past when this has taken place, we’ve seen major restructuring which have included canceling shows, letting hosts go, consolidation, and more if something doesn’t give. On April 27th, iHeartCommunications Inc announced an extension of its deadline for private offers to May 12, 2017.

The fundamentals of radio are still strong but these circumstances have all the ingredients to create a significant conflict for stakeholders, investors, talent and listeners. We will be watching right alongside you to see what happens.

Tell us in the comments below, what do you think will happen?

Read the entire post from Talker’s Magazine below – reproduced with permission from Talker’s.

iHeartMedia Reports Preliminary Q1 Results Expressing ‘Substantial Doubt’ About Future Given Current Debt Obligations.  This report (filed yesterday, 4/20) to the SEC is designed to help the company achieve success with its debt exchange offer that expires for lenders today and for bondholders next Friday (4/28).  But the language is very strong as iHeartMedia preliminarily reports that consolidated revenue is down 2.4% for the first quarter of 2017 compared to the same period in 2016.  The company explains in this filing that it is analyzing, on a quarterly basis, “whether there is substantial doubt about our ability to continue as a going concern for a period of 12 months following the date our financial statements are issued.  A substantial amount of our cash requirements are for debt service obligations.  Although we have generated operating income, we incurred net losses and had negative cash flows from operations for the years ended December 31, 2016 and 2015, as well as for the quarter ended March 31, 2017.  Our current operating plan indicates we will continue to incur net losses and generate negative cash flows from operating activities given iHeartCommunications’ indebtedness and related interest expense.  During the quarter ended March 31, 2017, we spent $570.4 million of cash on payments of principal and interest on our debt, net of facility draws and proceeds received, and anticipate having approximately $1.7 billion of cash interest payment obligations for the full year 2017.  At March 31, 2017, we had debt maturities totaling $316.5 million, $324.2 and $8,369.0 million in 2017, 2018 and 2019, respectively.  Our debt maturities at March 31, 2017 include $305.0 million outstanding under our receivables based credit facility, which matures on December 24, 2017, and $112.1 million of 10% Senior Notes due January 15, 2018.  Based on the significance of the forecasted future negative cash flows, including the maturities of the $305.0 million receivables based credit facility and the $112.1 million 10% Senior Notes due January 15, 2018, and the uncertainty of the outcomes of the Exchange Offers and Term Loan Offers, management anticipates that our financial statements to be issued for the three months ended March 31, 2017 will include disclosure indicating there will be substantial doubt as to our ability to continue as a going concern for a period of 12 months following the date the first quarter 2017 financial statements are issued as a result of uncertainty around our ability to refinance or extend the maturity of our receivables based credit facility, to achieve our forecasted results, and to achieve sufficient cash interest savings from the pending Exchange Offers and Term Loan Offers.

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