11-16-2012
That's according to the latest 10Q filing by Dial Global. One year ago the company reported a loss of $17 million. For the quarter, DG lost $71 million, compared to $5.2 a year earlier. Keep in mind, Dial Global merged with Westwood One a little over a year ago. And, there's more. DG blames some of its bad numbers on "a certain nationally syndicated talker."
The filing also says based on current projections, and minus any outside debt or equity capital, Dial Global will breach its debt leverage and interest coverage accounts for December and beyond. And, here are the reasons for that.
The Dial Global filing says "We believe our 2012 results were adversely impacted by, among other things, late cancellations in ad buys (which we believe was a by-product of the election and renewed economic uncertainty), competitive factors, such as a greater diversity of digital ad platforms (into which ad budgets have flowed) and increased competition from our major competitors, and advertisers' response to controversial statements by a certain nationally syndicated talk radio personality in March 2012."
"If we are unable to obtain further amendments to our Credit Facilities to modify the requirements of the financial ratio covenants contained therein and certain other terms thereof, depending on our future results, management cannot assure that we will be in compliance with the terms of the Credit Facilities in subsequent periods in 2013 or thereafter absent additional debt or equity capital from third parties. The discussions with our lenders to date have contemplated a separate comprehensive amendment to our Credit Facilities to better position the Company to achieve compliance with the terms of its Credit Agreements in the future, and the waiver is intended to provide the parties further opportunity to continue these negotiations."
"There can be no assurance, however, that the lenders under the Credit Facilities will agree to amend the Credit Facilities in the manner we seek, on terms acceptable to us, or at all. As a result, it is possible that we will not be in compliance with the terms of the Credit Facilities in future periods, which would result in an event of default under the Credit Facilities. If such an event of default occurs, there can be no assurance that the lenders under the Credit Facilities will grant us a waiver on terms acceptable to us, or at all."
Add a Comment Send This Story To A Friend
