Will Tomorrow Be the Day iHeartMedia’s Future Becomes Clearer? On Sunday, iHeartMedia and Consenting Lenders entered into a Forbearance Agreement that put off iHM’s defaut on an interest payment on 14% Senior Notes until midnight tomorrow (3/7). That gives both sides more time to work out a solution to the company’s $20 billion in debt and avoid putting the matter into the hands of a bankruptcy judge. Analysts watching this case are taking note of the fact that John Malone’s Liberty Media purchased $400 million of iHM’s debt last week and now becomes a creditor in the event of a bankruptcy. Just how important Liberty’s involvement as a creditor becomes remains to be seen but, remember that Liberty came to the aid of SiriusXM when it needed cash and now controls a majority interest in that company. A lot of the consumer press stories covering the iHeartMedia debt saga that TALKERS editors have seen imply the company is on the verge of “failure.” But the reality – borne out by its quarterly financial reports – is that the company is making money. It’s just not making enough to cover interest payments on the massive debt. The latest term sheet from iHeartMedia summarizes a proposed restructuring of the company that would reduce its debt (in exchange for equity) to $5.75 billion. As part of the proposed terms, it would spin off Clear Channel Outdoor Holdings.
And ‘The Loop’ in Chicago Goes to…Educational Media Foundation! At first, today’s FCC filing to transfer classic rock WLUP-FM, Chicago from Merlin Media to non-profit Christian broadcaster Educational Media Foundation for $21.5 million seems surprising, but EMF did recently acquire KSWD, Los Angeles from Entercom and, unlike many secular, commercial broadcasting companies, it has money in the bank. If approved, it’s expected that EMF will install its “K-Love” Christian contemporary format on the station. Unfortunately, the deal means the current staff – including morning personality Erich “Mancow” Muller – will be out of work. The other Merlin Media station still on the block in Chicago is alternative rock WKQX.
Salem Media Group LMAs KPAM, Portland. In a press release issued Monday (3/5), Salem Media Group acknowledges that it is operating news/talk KPAM, Portland and adult standards KKOV “Sunny 1550” – both stations in the process of being sold by Pamplin Broadcasting to Intelli LLC. The presser is titled, “KPAM is Alive and Well” and notes that KPAM airs “live and local drive-time programs – ‘First Edition’ from 6am to 10am and ‘Afternoon Northwest’ from 3pm to 6pm – and syndicated programs such as ‘The Clark Howard Show,’ ‘The Schnitt Show,’ ‘The Michael Medved Show,’ and ‘The Joe Pags Show.’ Hourly news, weather, and sports as well as drive-time traffic are also featured.”
WRKO, Boston Adds Joe Pags Show for Evenings. The WOAI, San Antonio-based Joe Pags show – hosted by Joe Pagliarulo – is joining the program lineup of iHeartMedia’s WRKO, Boston. The Joe Pags show – heard in more than 100 markets across the country – airs in the 7:00 pm to 10:00 pm slot. WRKO program director Michael Czarnecki says “We are thrilled to have Joe join the WRKO weekday line up. Joe does so much more than just political talk. He entertains, makes you think, makes you laugh, heck he even sings. This makes him the perfect addition to the WRKO family.” Pagliarulo states, “When you hear the call letters WRKO, you hear heritage – and a station most hosts can only dream of being on. I’m psyched beyond words that my show is coming to this amazing station. It’s an opportunity I cherish and simply cannot wait to talk with the great people of Boston on a daily basis. Thank you so much to the management team for the trust and support!”
Saga Communications’ Fourth Quarter Net Revenue Rises 2.3%. During 2017, Saga Communications executed the sale of its television stations and purchased radio stations in Charleston and Hilton Head, South Carolina. Those transactions resulted in net income increasing $9.9 million during the fourth quarter of 2017 and $36.5 million for the year. Saga reports that net revenue increased 2.3% to $31.5 million during Q4. For the entire year, net revenue decreased 0.7% to $118.2 million. For the fourth quarter, operating income decreased $433,000 to $5.3 million when adjusted for the $1.5 million charge for impairment of intangible assets. Station operating expense increased 5.4% to $23.2 million (station operating expense includes depreciation and amortization attributable to the stations) primarily due to the acquisition of the Charleston and Hilton Head radio stations. Free cash flow was $6.3 million compared to $7.6 million last year. Same station net revenue decreased 4.2% to $29.5 million primarily due to a decrease in gross political revenue of $1 million and same station operating expense decreased 2.5% to $21.5 million for the quarter.
Urban One Reports Q4 2017 Net Revenue Down 4%. The silver lining in this fourth quarter 2017 financial report from Urban One is that broadcast and digital operating income increased 2.8% compared to the same period in 2016. But overall, net revenue was approximately $109 million, a decrease of 4% from the same period in 2016. Adjusted EBITDA was approximately $38.7 million for the quarter, compared to $30.9 million for the same period in 2016, an increase of 25.6%. Urban One president and CEO Alfred C. Liggins, III says, “Overall, we produced a strong quarter from an Adjusted EBITDA standpoint, and as a result we were able to show full year Adjusted EBITDA growth, despite the challenging market conditions. Our core radio revenues were up slightly for the quarter, excluding the impact of political revenues. Our TV advertising revenues suffered from weak ratings delivery, which was somewhat offset by growth in affiliate revenues. Our digital business benefitted from the integration of our acquisition of the Bossip, Madame Noire and Hip Hop Wired brands, and was up significantly in both revenue and Adjusted EBITDA compared to prior year. We were able to control costs, most notably at TV One and Corporate. During the quarter, we repurchased a further $20 million of our 9.25% notes at a discount, and we remain strongly committed to reducing net leverage.”
TALKERS News Notes. Sports giant ESPN announces James Pitaro is the company’s new chief, taking over for John Skipper, who suddenly stepped down from his position in December in order to address what was termed a long-time substance abuse issue. Pitaro has been serving the Walt Disney company in an executive capacity in the digital realm. Pitaro will also serve as co-chair of Disney’s television segment…..JVC Media’s Long Island news/talk outlet WRCN, Riverhead “LI News Radio 103.9 FM” is presenting a “Spring Back to Business” event designed to be a “networking social get-together” on March 26 at its studio operations at Long Island MacArthur Airport in Ronkonkoma. Station personality Frank MacKay will introduce FOX News Channel and FOX News Radio personality Brian Kilmeade who will take part in a Q&A with attendees.
Bill Lally Dies After Battle with Cancer. Family, friends and the Southern California radio community are mourning the loss of Bill Lally, who passed away over the weekend after a long battle with cancer. Lally was a longtime operations manager and APD at KFI, KLAC and KTLK in Los Angeles who exited the company in 2009 during the massive round of layoffs that took place at then-Clear Channel that year. Prior to moving to Los Angeles, Lally had also served with WABC, New York; Westwood One; WMCA; and CBS RADIO during his career.
Trump-Russia Investigation/Sam Nunberg Subpoena, Financial Reforms Rollback, North Korea-South Korea Talks, Trump Tariffs/Trade War, Senate School Safety Bill, Netanyahu-Trump Meeting, the Oscars, and NBA Action Among Top News/Talk Stories Yesterday (3/5). The investigation into possible connections between the Trump campaign and Russian agents and the bizarre media tour by former Trump aide Sam Nunberg after being subpoenaed by special counsel Robert Mueller; Senate Majority Leader Mitch McConnell proposes rolling back reforms enacted after the 2008 financial crisis; North Korea’s Kim Jong Un meets with South Korean officials; President Trump’s proposed steel and aluminum tariffs and House Speaker Paul Ryan’s move to block them; the U.S. Senate proposes a school safety bill in the aftermath of the Parkland, Florida shooting; embattled Israeli Prime Minister Benjamin Netanyahu’s trip to Washington and his meeting with President Trump; Sunday night’s Academy Awards show; and NBA action were some of the most-talked-about stories on news/talk radio yesterday, according to ongoing research from TALKERS magazine.
Music Radio News and Career Moves. The morning show at iHeartMedia’s hip hop WUSL, Philadelphia “Power 99” adds Roxy Romeo to the cast. She’ll join the “Rise & Grind Morning Show” featuring Mikey Dredd and Mutha Knows, effective March 12. iHM Philly director of urban programming Derrick Corbett says, “To be able to add a talent the likes of Roxy to our staff is phenomenal. She’s an incredible personality who has the ability to make you feel as if you’ve known her for years upon first listen. We’re excited to be able to share her voice with the city of Philadelphia, and that she’s chosen to make ‘Power 99’ her new home.” Romeo was most recently midday jock, APD and music director at the company’s “REAL 103.9” in Las Vegas…..Nate Bell is named program director at iHeartMedia’s hip hop WJLB and urban contemporary WMXD “Mix 92.3” in Detroit. EVP of urban/hip hop programming Doc Wynter says, “We are so excited to have Nate back in our urban programming brain trust. He was missed, but it was destiny for him to come back to iHeartMedia. Things are about to heat up in Detroit!”…..In Charlotte, iHeartMedia names Brooke Morrison afternoon personality for CHR WHQC “Channel 96.1.” Station PD A.J. says, “We are very excited about what Brooke will bring to Charlotte. Her high level of engagement, work ethic and passion for music and entertainment make her a superstar on and off the air. I look forward to her joining the team as we build the next chapter of ‘Channel 96.1.’”