Despite Pressure On Public Companies, Emmis Will Keep $4.8M CARES Act Loan.

Story by Inside Radio

Bucking pressure from the Treasury Department, Emmis Communications says it has no plans to return the $4.753 million loan it received under the Paycheck Protection Program. Spokeswoman Kate Snedeker tells the Indianapolis Business Journal the company believes it meets the criteria to participate in the program, part of the federal government’s CARES Act, which aims to provide financial assistance to businesses and individuals affected by the COVID-19 pandemic.

“Like most media companies, Emmis’ revenues have been devastated by the COVID-19 crisis; unlike most media companies, we have been able to keep paying all our employees,” Snedeker said in a statement. “Emmis has always had a people-first culture; now more than ever, that paycheck assurance is critical. The proceeds from the PPP loan will enable us to continue providing stability for our employees while we weather this storm together.”

The PPP, which is administered by the Small Business Administration (SBA), provides money to small businesses so they can pay up to eight weeks of payroll costs, including benefits, according to the U.S. Treasury’s website. The money can also be used for paying rent, utilities and interest on mortgages. If the right conditions are met, much of the loan will be forgiven.

Emmis was one of the lucky applicants. One week ago the $350 billion program was out of money although the federal government resumed lending on Monday after President Donald Trump signed a bill Friday that authorizes an additional $310 billion in funds for the program.

But at least 13 public companies have given back a total of $170 million in the stimulus money, amid mounting scrutiny of publicly traded companies that tapped into the program.

The PPP program offers forgivable, 1% interest loans for companies with a maximum of 500 employees. Emmis employs 449 people.

Among those that have returned the money, according to the Wall Street Journal, are AutoNation, the country’s largest car-dealership chain with a $3 billion market capitalization; Ruth’s Hospitality Group, owner of steakhouse chain Ruth’s Chris; and fast food chain Shake Shack. Those large companies were able to qualify for the loans because they employ fewer than 500 workers in one location.

Last Thursday the Treasury Department changed its guidelines for the paycheck loans “amid criticism that dozens of public companies had received funds even as many small independent businesses missed out,” the Journal reported Sunday. The feds told public companies that could tap capital markets to return the funds by May 7.

Indianapolis-based Emmis owns radio stations in Indianapolis and New York, Indianapolis Monthly magazine and Digonex, a dynamic pricing company. Last month, in its first non-radio acquisition since selling off most of its broadcasting assets, Emmis purchased the sound masking business of Lencore Acoustics Corp. for $75.1 million.

Emmis is among central Indiana’s smallest public companies, per the IBJ, with revenue of $29.3 million in the nine months ending Nov. 30.

Senators Focus On SBA Rule In Effort To Get Federal Aid To Local Media Like Radio.

Story by Inside Radio

There may not be any actual aid to broadcasters struggling to make their payroll, but there’s certainly no shortage of letters from members of Congress to comfort owners as their cash reserves dry up. The latest is from a bipartisan group of Senators to their leadership as negotiations on the next coronavirus-related stimulus bills continue. The lawmakers are asking that they include provisions that would make thousands of local radio stations and newspapers eligible for the Paycheck Protection Program, which offers forgivable loans to small businesses to pay their employees during the COVID-19 crisis.

The letter – signed by Senators Maria Cantwell (D-WA), John Kennedy (R-LA), Amy Klobuchar (D-MN), and John Boozman (R-AR) – says the Small Business Administration explicitly “cut out” local broadcasters and newspapers from the program. That’s because the SBA determined the outlets were exempted by the SBA’s rule, which restricts assistance to companies owned or controlled by larger entities. But the senators say that that while stations and newspapers may be owned by multibillion-dollar corporations, the local outlets “operate independently” and should be allowed to tap into the stimulus effort. The senators think the SBA could craft guidelines that would ensure the local operations benefit from the relief without the financial assistance flowing to the parent companies. They point out a similar waiver was allowed for hotels and restaurants. “The same consideration should extend to local news outlets in light of their vital role in maintaining public health,” the letter says. https://www.cantwell.senate.gov/imo/media/doc/2020%2004%2018%20Local%20Newspaper%20+%20Broadcaster%20Letter.pdf

News Media Alliance President David Chavern said SBA loans have already helped some local news publishers keep reporters employed and their newsrooms running as an essential function, but others have been left out because they are part of groups with other small publishers or non-news businesses. “We are requesting changes to the SBA loan program [that] would allow funds to flow to more local newsrooms,” said Chavern.

Meanwhile in the House, there’s overwhelming support for the government coming to the aid of broadcasters. More than 240 lawmakers have signed a letter to the Trump administration asking it to direct federal advertising funds to local news and media outlets. “This national emergency has caused a near halt to local business activity and in turn, the regular and vital advertising they purchase from local media. Without advertising revenue, local media outlets cannot survive,” the bipartisan coalition wrote. And if there are any federal programs where community outreach is needed, they also urge that to include local media advertising. The letter had been circulating since last week.

The House members also encouraged the President to support any stimulus packages that push recipients of federal dollars to use a portion of what they receive with local media, including those serving minority and rural communities.

What’s motivating lawmakers to stand alongside the media are reports from industry groups showing the impact that a virtual closing down of U.S. business has had. The National Association of Broadcasters found that some local broadcasters have reported that up to 90% of their advertising revenue has been lost, they tell Senate leadership. By some estimates advertising losses for local TV and radio broadcasters are estimated to reach at least $3 billion nationwide. They also point to an IAB survey of advertisers which found that traditional media outlets could see a 43% decline in ad revenue in March and April. And the News Media Alliance says newspapers have lost up to half of their ad revenue for the second quarter. “Local newspapers and broadcasters have been hit hard by the COVID-19 crisis, are essential for maintaining a well-informed public, and deserve our help,” the senators say.

NAB President Gordon Smith welcomed the support in the Senate to expand SBA loans to local radio and TV stations under the Payroll Protection Program. “America’s radio and TV broadcasters take seriously our responsibility to report, inform, comfort and educate our hometowns during these unprecedented times,” Smith said in a statement. “Unfortunately, with economic activity at a standstill, local broadcasters are struggling without the local business advertising dollars that sustain stations and help local businesses generate commerce.”

The NAB joined with other media groups this month in seeking federal aid. They said if another stimulus bill is drafted, it should include an additional $5 to $10 billion in direct funding which federal agencies could spend on local media advertising.
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Read more - US Senate Letter: https://www.cantwell.senate.gov/imo/media/doc/2020%2004%2018%20Local%20Newspaper%20+%20Broadcaster%20Letter.pdf

Emmis Broadcasting To Receive $4.8 Million Loan Courtesy Of CARES Act

Story by Inside Radio

At least one commercial radio broadcaster has secured money from the federal government’s CARES Act, which aims to provide financial assistance to businesses and individuals affected by the COVID-19 pandemic.

Indianapolis-based Emmis Communications, which owns radio stations in Indianapolis and New York, is getting $4.753 million under the Paycheck Protection Program, according to a recent filing with the Securities and Exchange Commission.

The lender is STAR Financial Bank, which is based in Indiana and has more than $2 billion in assets.

The PPP, which is administered by the Small Business Administration (SBA), provides money to small businesses so they can pay up to eight weeks of payroll costs, including benefits, according to the U.S. Treasury’s website. The money can also be used for paying rent, utilities and interest on mortgages. If the right conditions are met, much of the loan will be forgiven. Emmis is one of the lucky applicants. As of today, the $350 billion program is out of money — and it’s not immediately clear when the funds might be replenished.

Meanwhile, the Corporation for Public Broadcasting says in a news release that the CPB Board of Directors has unanimously approved a plan to distribute $75 million in emergency funding to public media courtesy of the CARES Act.

That money, which the CPB says will ensure “the preservation of small or rural stations,” will be split evenly ($37.5 million each) between radio and television, according to a memo to general managers written by CPB CEO and President Pat Harrison.

A list of the recipients — and their grant amounts — is available on the CPB website. https://www.cpb.org/aboutcpb/financials

The CPB says it will work “expeditiously” to distribute the funding once it’s received from the U.S. Treasury.

According to the breakdown outlined in Harrison’s memo, a total of 398 public radio stations will receive $75,000 each, for a total outlay of $29.85 million. The remaining $7.65 million will be divided up amongst 206 other grantees that are characterized as “small” or “rural.” Those stations will receive an additional $37,136 in addition to their initial $75,000.

In total, 192 stations will receive $75,000 each, while 206 others will receive $112,136.

“Public media stations across the country are working harder than ever, and under extraordinary circumstances, to inform and educate the American people,” Harrison says in the release. “Local stations are providing vital information about the COVID-19 pandemic and finding innovative ways to deliver curriculum-based educational programming to homebound students, all while facing declining non-federal revenue. I want to thank Congress for their strong, bipartisan support of public media, and the advisory group which worked so quickly to find a way to distribute these funds in an equitable manner.”

FCC Asks Supreme Court to Review Lower Court Ruling That Invalidated Media Ownership Rules

Story by Inside Radio

The Federal Communications Commission has asked the Supreme Court to review a 2019 Third Circuit Court of Appeals decision that struck down a variety of media ownership rule revisions adopted in 2017. The Solicitor General petitioned the nation’s highest court for what’s known as a writ of certiorari to review the decision in Prometheus Radio Project v. FCC.

In a statement issued Friday afternoon, FCC chair Ajit Pai called the revisions the Commission made to its media ownership rules in November 2017 “long-overdue reforms” intended to “allow broadcasters to compete in today’s dynamic media marketplace.” Pai called the Third Circuit decision that overturned the rules, nearly two years after they were adopted, “the latest obstruction of Commission action and congressional intent in several cases over the last 17 years.” These decisions, Pai said, “have frozen in place decades-old ownership restrictions that have outlived their competitive usefulness in the digital age.”

The latest legal battle over media ownership rules landed in court after the FCC voted 3-2 in November 2017 to abolished the newspaper-broadcast and TV-radio cross-ownership bans, rework the radio AM-FM subcap regulations, and relax several television ownership restrictions, including allowing the same company to own two of the big network affiliates in a single market. Several public interest groups challenged the moves and, in a 2-1 decision issued in September 2019, the Third Circuit struck down the changes. It also blocked the FCC’s plans to create a radio incubator program designed to boost the number of women and minority owners.

Pai’s statement went on to note that the FCC solicited extensive public input, reviewed “voluminous record materials,” and put in place policies intended to strengthen local news outlets. “Absent further action by the Supreme Court, broadcasters will continue to be saddled with outdated regulations,” Pai said. “The Supreme Court’s intervention is necessary to restore the Commission’s discretion to regulate in the public interest and modernize media ownership regulation for the digital age, as Congress intended.”

ICYMI: New York Times (Editorial Board): What’s an Essential Service in a Pandemic? The Post Office

New York Times: What’s an Essential Service in a Pandemic? The Post Office

Story by Committee on Oversight & Reform
Written by the Oversight Democrats Press Office

America’s favorite government agency is on the brink of collapse, and Washington policymakers appear too mired in politics to save it.

Like so many businesses, the United States Postal Service has been hit hard by the coronavirus. Mail volume is down nearly a third over this time last year and continues to fall. The Postal Service is predicting $13 billion in lost revenue this fiscal year as a direct result of the pandemic. In an April 9 telebriefing to the House Oversight and Reform Committee, the postmaster general, Megan Brennan, warned that without financial assistance the agency could run out of money by the end of September.

The Postal Service cannot be allowed to crumble in the midst of a national emergency. Though organized as a self-sustaining quasi-governmental enterprise, run without taxpayer funding, it is not just another business. Even in an increasingly wired world, the agency’s mandate of “universal service” provides a lifeline to remote areas. As this pandemic rages, its 600,000-plus employees are working to ensure that Americans receive their prescriptions and protective equipment and other essential items, no matter where they live. Nearly 500 postal workers have tested positive for the virus, with hundreds more suspected of having it, according to The Washington Post.

This year, the Postal Service is also playing an expanded role in sustaining democracy. In the new world of social distancing, mail-in and absentee voting are crucial to ensuring that Americans do not have to risk their lives to cast their votes. If the Postal Service collapses, it will take with it the infrastructure needed for millions of Americans to participate in the most fundamental act of self-government.

Now layer onto this the millions of census forms delivered to American households through the mail last month, many of which will be filled out and returned the same way.

With all that in mind, one might expect Congress and the White House to be scrambling to throw this vital public institution a lifeline. But, unlike other essential businesses — not to mention favored industries — the Postal Service, in its distress, is facing staunch political resistance that threatens to let it sink.

Part of the problem is longstanding disagreement over the agency’s structure and mission. For years, conservatives have been pushing to privatize the service. A more recent threat arises from President Trump’s personal hostility toward the agency, stemming in part from his contention that it gives sweetheart delivery rates to Amazon, the e-commerce giant led by Jeff Bezos, whom Mr. Trump considers a political enemy. The president has accused Amazon of fleecing the Postal Service and argued that if the agency is having money troubles it should simply raise the rates it charges companies like Amazon and — poof — problem solved. “Should be charging MUCH MORE!” he was tweeting in 2017.

But the president’s own task force determined that package delivery is profitable for the agency, and others have warned that a significant increase in shipping rates could in fact drive private companies to pursue alternatives.

The mail service’s troubles did not begin with the coronavirus. For decades, the agency has suffered a decline in its core business. The volume of first-class mail has dropped from a peak of 103.6 billion pieces in 2001 to 54.9 last year. To help make up the gap, the agency has shifted aggressively into the package delivery business, contracting with private companies, including FedEx, UPS and, yes, Amazon.

On various occasions, the agency has attempted to rein in costs by closing offices or cutting service. That’s when lawmakers tend to step in, deciding that its mission is too vital to tinker with. In 2013, when the Postal Service announced that it would do away with most Saturday delivery, Congress bucked, inserting a provision into that year’s budget to block the move.

Lawmakers know that voters cherish mail service. The Postal Service consistently enjoys the top job rating of any federal agency, according to research by Gallup.

Compounding its current problems, the service is saddled with financial obligations not imposed on other enterprises, private or public. In 2006, Congress passed a bill requiring the agency to set aside around $5.5 billion per year to prepay health care benefits for future retirees. This has put the Postal Service at a competitive disadvantage. Absent this burden, the agency would have turned a profit in each of the past six years, according to a report by the Institute for Policy Studies. There have been multiple attempts by Congress to repeal this mandate.

In its most recent update on the agency, the Government Accountability Office painted a bleak picture: “U.S.P.S.’s overall financial condition is deteriorating and unsustainable. U.S.P.S. has lost $69 billion over the past 11 fiscal years — including $3.9 billion in fiscal year 2018. U.S.P.S.’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its annual revenue.”
In pandemic terms, the Postal Service has several pre-existing conditions that make it vulnerable.

Last month, lawmakers sought to include a $13 billion grant for the agency in the $2 trillion coronavirus relief law. The effort was blocked by Treasury Secretary Steven Mnuchin, who warned that it would derail negotiations. Mr. Trump had threatened to reject the bill if it included a postal bailout, according to reporting by The Washington Post. Lawmakers settled for a $10 billion loan — from the Treasury Department. Mr. Mnuchin has warned that any attempt to insert a postal bailout into the next relief package would be a non-starter.

Long term, the Postal Service will need to restructure its debt obligations, among other significant reforms. Short term, Congress must find a way to shore up the agency on behalf of millions of constituents who depend on it. Last Thursday, Ms. Brennan asked lawmakers for $89 billion in assistance. This would include $25 billion in grants to cover losses from the pandemic, $25 billion for infrastructure modernization, $14 billion in debt payments related to retirement benefits and $25 billion in unrestricted borrowing authority, according to The Times.

This request seems overly ambitious. But it at least provides a starting point for debate about how Congress can — and must — keep postal carriers on their appointed rounds. This essential institution should not be held hostage to political grudges. Now more than ever, Americans need something they can rely on.

President Barack Obama endorses Vice-President Joe Biden for President

Former President Barack Obama endorsed his former vice president Joe Biden in a video released Tuesday.

Read President Obama's full remarks below.

Hi everybody. Let me start by saying the obvious – these aren’t normal times. As we all manage our way through a pandemic unlike anything we’ve seen in a century, Michelle and I hope that you and your families are safe and well. If you’ve lost somebody to this virus, or if someone in your life is sick, or if you’re one of the millions suffering economic hardship, please know that you’re in our prayers. Please know that you’re not alone. Because now’s the time for all of us to help where we can and to be there for each other, as neighbors, as coworkers, and as fellow citizens.

In fact, over the past weeks, we’ve seen plenty of examples of the kind of courage, kindness, and selflessness that we’re going to need to get through one of the most difficult times in our history. Michelle and I have been amazed at the incredible bravery of our medical professionals who are putting their lives on the line to save others. The public servants and health officials battling this disease. The workers taking risks every day to keep our economy running. And everyone who’s making their own sacrifice at home with their families, all for the greater good.

But if there’s one thing we’ve learned as a country from moments of great crisis, it’s that the spirit of looking out for one another can’t be restricted to our homes, or our workplaces, or our neighborhoods, or our houses of worship. It also has to be reflected in our national government. The kind of leadership that’s guided by knowledge and experience; honesty and humility; empathy and grace – that kind of leadership doesn’t just belong in our state capitols and mayors offices. It belongs in the White House.

And that’s why I’m so proud to endorse Joe Biden for President of the United States.

Choosing Joe to be my Vice President was one of the best decisions I ever made, and he became a close friend. And I believe Joe has all the qualities we need in a President right now.

He’s someone whose own life has taught him how to persevere; how to bounce back when you’ve been knocked down.

When Joe talks with parents who’ve lost their jobs, we hear the son of a man who once knew the pain of having to tell his children that he’d lost his.

When Joe talks about opportunity for our kids, we hear the young father who took the train home each night so he could tuck his children into bed – and we hear the influence of Jill, a life-long teacher.

When Joe talks to families who’ve lost a hero, we hear another parent of an American veteran; a kindred spirit; somebody whose faith has endured the hardest loss there is.

That’s Joe. Through all his trials, he’s never once forgotten the values or the moral fiber that his parents passed on to him, and that made him who he is. That’s what steels his faith – in God, in America, and in all of us.

That steel made him an incredible partner when I needed one the most.

Joe was there as we rebuilt from the Great Recession and rescued the American auto industry. He was the one asking what every policy would do for the middle class and everyone striving to get into the middle class. That’s why I asked him to implement the Recovery Act, which saved millions of jobs and got people back on their feet – because Joe gets stuff done.

Joe helped me manage H1N1 and prevent the Ebola epidemic from becoming the type of pandemic we’re seeing now. He helped me restore America’s standing and leadership in the world on the other threats of our time, like nuclear proliferation and climate change.

Joe has the character and the experience to guide us through one of our darkest times and heal us through a long recovery. And I know he’ll surround himself with good people – experts, scientists, military officials who actually know how to run the government and care about doing a good job running the government, and know how to work with our allies, and who will always put the American people’s interests above their own.

Now Joe will be a better candidate for having run the gauntlet of primaries and caucuses alongside one of the most impressive Democratic fields ever. Each of our candidates were talented and decent, with a track record of accomplishment, smart ideas, and serious visions for the future.

And that’s certainly true of the candidate who made it farther than any other – Bernie Sanders. Bernie’s an American original – a man who has devoted his life to giving voice to working people’s hopes, dreams, and frustrations. He and I haven’t always agreed on everything, but we’ve always shared a conviction that we have to make America a fairer, more just, more equitable society. We both know that nothing is more powerful than millions of voices calling for change. And the ideas he’s championed; the energy and enthusiasm he inspired, especially in young people, will be critical in moving America in a direction of progress and hope.

Because for the second time in twelve years, we’ll have the incredible task of rebuilding our economy. And to meet the moment, the Democratic Party will have to be bold.

You know, I could not be prouder of the incredible progress that we made together during my presidency. But if I were running today, I wouldn’t run the same race or have the same platform as I did in 2008. The world is different; there’s too much unfinished business for us to just look backwards. We have to look to the future. Bernie understands that. And Joe understands that. It’s one of the reasons that Joe already has what is the most progressive platform of any major party nominee in history. Because even before the pandemic turned the world upside down, it was already clear that we needed real structural change.

The vast inequalities created by the new economy are easier to see now, but they existed long before this pandemic hit. Health professionals, teachers, delivery drivers, grocery clerks, cleaners, the people who truly make our economy run – they’ve always been essential. And for years, too many of the people who do the essential work of this country have been underpaid, financially stressed, and given too little support. And that applies to the next generation of Americans – young people graduating into unprecedented unemployment. They’re going to need economic policies that give them faith in the future and give them relief from crushing student loan debt.

So we need to do more than just tinker around the edges with tax credits or underfunded programs. We have to go further to give everybody a great education, a lasting career, and a stable retirement.

We have to protect the gains we made with the Affordable Care Act, but it’s also time to go further. We should make plans affordable for everyone, provide everyone with a public option, expand Medicare, and finish the job so that health care isn’t just a right, but a reality for everybody.

We have to return the U.S. to the Paris Agreement, and lead the world in reducing the pollution that causes climate change. But science tells us we have to go much further – that it’s time for us to accelerate progress on bold new green initiatives that make our economy a clean energy innovator, save us money, and secure our children’s future.

Of course, Democrats may not always agree on every detail of the best way to bring about each and every one of these changes. But we do agree that they’re needed. And that only happens if we win this election.

Because one thing everybody has learned by now is that the Republicans occupying the White House and running the U.S. Senate are not interested in progress. They’re interested in power. They’ve shown themselves willing to kick millions off their health insurance and eliminate preexisting condition protections for millions more, even in the middle of this public health crisis, even as they’re willing to spend a trillion dollars on tax cuts for the wealthy. They’ve given polluters unlimited power to poison our air and our water, and denied the science of climate change just as they denied the science of pandemics. Repeatedly, they’ve disregarded American principles of rule of law, and voting rights, and transparency – basic norms that previous administrations observed regardless of party. Principles that are the bedrock of our democracy.

So our country’s future hangs on this election. And it won’t be easy. The other side has a massive war chest. The other side has a propaganda network with little regard for the truth. On the other hand, pandemics have a way of cutting through a lot of noise and spin to remind us of what is real, and what is important. This crisis has reminded us that government matters. It’s reminded us that good government matters. That facts and science matter. That the rule of law matters. That having leaders who are informed, and honest, and seek to bring people together rather than drive them apart – those kind of leaders matter.

In other words, elections matter. Right now, we need Americans of goodwill to unite in a great awakening against a politics that too often has been characterized by corruption, carelessness, self-dealing, disinformation, ignorance, and just plain meanness. And to change that, we need Americans of all political stripes to get involved in our politics and our public life like never before.

For those of us who believe in building a more just, more generous, more democratic America where everybody has a fair shot at opportunity. For those of us who believe in a government that cares about the many, and not just the few. For those of us who love this country and are willing to do our part to make sure it lives up to its highest ideals – now’s the time to fight for what we believe in.

So join us. Join Joe. Go to JoeBiden.com right now. Make a plan for how you are going to get involved. Keep taking care of yourself, and your families, and each other. Keep believing in the possibilities of a better world. And I will see you on the campaign trail as soon as I can.

Thanks.

iHeartMedia, Inc. Announces Cost Savings Initiatives in Response to Coronavirus Pandemic and Provides Business Update

Story by Business Wire

April 14, 2020

Operating Expense Savings (cuts) in 2020 expected to be "$250 MILLION DOLLARS"!! Budget Cut Moves offset the revenue declines resulting from the COVID-19 pandemic.

SAN ANTONIO--(BUSINESS WIRE) iHeartMedia, Inc. today announced certain proactive initiatives in response to the currently weak economic environment resulting from the unfolding novel coronavirus pandemic and also provided an update on the status of its business. iHeartMedia believes that the major actions announced today - in combination with the Company’s highly resilient capital structure -- will substantially expand the Company’s financial flexibility, provide sufficient liquidity to operate effectively even in an extended period of economic weakness, and position the Company for a solid growth trajectory when advertising demand returns to normal levels.

The Company’s proactive initiatives and capital structure supports include:

Cash Balance of $647 million as of March 31, 2020
Over 90% of iHeartMedia Debt Matures in 2026 or Later1
Patient Debt Terms: No Maintenance Covenants for Term Loan or Notes
Fundamental Strengths of the Company’s Margin and Free Cash Flow Profile
Prior Modernization Initiatives Continue: Targeting $100 million in Run-Rate Savings by 2021; expect approximately $50 million in 2020
New Cost Actions: Targeting Further $200 million Savings in 2020
New Capex Actions: Reducing Capex by Expected $80 million in 2020
CARES Act Free Cash Flow Benefit: Estimating $100 million Cash Taxes Savings in 2020
Podcasting and Digital: Strong Audience and Revenue Growth Continuing
Political Advertising: Significant Profit and Free Cash Flow Contribution Expected in 2020

Operating Expense Savings

– In addition to the in-year expected savings of approximately $50 million related to the modernization initiatives announced in February, the Company has also initiated an additional $200 million in operating expense savings for 2020 driven by:

Reductions in compensation for senior management and other employees
Furloughing of certain employees that are non-essential at this time
Suspension of new employee hiring, travel and entertainment expenses and 401(k) matching program
Major reduction of consultant fees and other discretionary expenses
– Total direct operating expense savings in 2020 are expected to be approximately $250 million

– The Company also expects to see decreased variable sales expense and commissions associated with lower revenue

1 The Company’s notes and term loan carry maturity dates of 2026 or later, with minimal required amortization prior to maturity, and the Company’s $450 million ABL Facility matures in 2023. Required principal payments under the ABL Facility are governed by a borrowing-base formula; the Company estimates that potential required principal payments under the ABL prior to its 2023 maturity could range from zero to modest levels, even under current conservative economic-recovery scenarios.

Capital Expenditures and Cash Taxes

– Expect capital expenditures of approximately $75 million to $95 million in 2020 - a decrease of approximately $80 million from our previously announced guidance of $155 million to $175 million, which we believe will enable the Company to make key investments in our strategic initiatives related to Smart Audio and Digital, including podcasting

– Expect an estimated $100 million reduction in cash taxes in 2020 from CARES Act

Revenue Update

– While National, Local and Network revenues have declined year-to-date, Podcasting and Digital revenue continue to show strong growth trends year-over-year

– Political advertising revenue in 2020 expected to remain consistent with prior election years; contribution weighted to the second half of 2020

“We moved quickly to respond to the economic downturn resulting from the COVID-19 pandemic in order to mitigate some of the business impact and to better position ourselves to take advantage of an eventual recovery when normalized demand returns,” said Bob Pittman, iHeart’s Chairman and Chief Executive Officer. “To provide visible and aligned leadership through this downturn, our senior management team and other employees voluntarily agreed to take meaningful reductions in compensation. We want our shareholders to know that we have taken immediate and proactive steps to weather this crisis, and we expect to emerge even stronger given our sufficient liquidity, the continued strength of consumer listening, and our diversified multiple platforms, including digital and especially podcasting. In March, our podcast listening reached an all-time high as measured by number of downloads and monthly unique visitors according to Podtrac, maintaining our position as the #1 commercial podcaster in America. Additionally, listening increased across our other digital platforms including web, Smart TV, Smart Speakers and other connected devices. As we navigate the unprecedented challenges posed by this crisis, we remain confident in our business and focused on the health and safety of our employees.”

“In addition to the previously announced $350 million draw on our $450 million senior secured asset-based revolving credit facility, which provided us with a cash balance of $647 million as of March 31, 2020, we have also identified additional operating expense savings totaling approximately $200 million over the remainder of 2020,” said Rich Bressler, iHeart’s President, Chief Operating Officer and Chief Financial Officer. “These cost savings are in addition to the approximately $50 million of operating expense savings related to the modernization initiatives that we announced in February and will bring our total operating expense savings for 2020 to approximately $250 million, partially offsetting the revenue declines resulting from the COVID-19 pandemic. We believe that iHeart's fundamentally strong cash-generation model, substantial current cash balances, incremental cash savings from the major proactive initiatives announced today, and a patient capital structure position our Company with substantial liquidity reserves and will enable us to build effectively on our audio-market leadership even in highly conservative macro-economic scenarios such as an extended, multi-year period of sustained US economic weakness. We believe this substantial financial flexibility will prove a further competitive strength for our Company should the current economic slowdown continue for a prolonged period. With our experienced management team and leadership position as the #1 audio media company in America, we are confident in our business and continue our focus on driving shareholder value.”

Operational and Financial Overview

– Year-to-date, our revenue has declined compared to last year primarily driven by a downturn in traditional broadcast radio revenues in local, national and network advertising. However, Digital revenue continues to show healthy growth, driven by our leading podcasting business.

– A sharp decline in our Sponsorships business is being driven by the postponement or cancellation of a number of our live events; however, this portion of our business is the smallest contributor to our revenue and earnings and has the lowest margin of any of our segments.

– As the business environment recovers, the Company expects the traditional promotional use of radio to be a strong benefit to us. As businesses reopen both nationally and locally, iHeart believes that it is advantaged by its unparalleled reach and the live and local trusted voices that advertisers need to get their messages out quickly.

– The Company expects the contribution of political advertising revenue in the second half of 2020 to be consistent with prior election years

– iHeart believes that it is more favorably positioned to withstand the current economic environment than its predecessor company’s audio segment was in prior recessions because:

The Company now has diversified products and revenue streams and no longer relies almost exclusively on broadcast radio revenue and it benefits from favorable growth trends in its emerging businesses, such as podcasting, and from a move of ad dollars to audio, including podcasting.
iHeart’s ability to provide digital-like advertising solutions for its broadcast assets using its Smart Audio data and analytics platform, as well as offering its unique programmatic trading platform for broadcast radio.
iHeart has also built out its enhanced marketing solutions capabilities, which provide advertisers with comprehensive campaigns leveraging its multiple platforms and other opportunities beyond the more commoditized and traditional media buying, through the Company’s direct relationships with CEOs, CMOs and senior advertising agency executives.
The Company will provide a further update on its first quarter earnings call.

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of iHeartMedia, Inc. and its subsidiaries (the “Company”), to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements about the impact of COVID-19 on our business, cost-savings opportunities, capital expenditures, the Company’s future capital resources, impacts from the CARES Act, the economic environment and our expected financial results. The words or phrases “guidance,” “believe,” “expect,” “anticipate,” “estimates,” “forecast” and similar words or expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other important factors, some of which are beyond our control and are difficult to predict. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this release include, but are not limited to: impacts from COVID-19; uncertain global economic conditions; increased competition; dependence upon the performance of on-air talent, program hosts and management; fluctuations in operating costs; shifts in population and other demographics; impact of our substantial indebtedness; legislative or regulatory requirements; regulations and concerns regarding privacy and data protection; and the other risks described in “Item 1A. Risk Factors” of iHeartMedia, Inc.’s Annual Reports on Form 10-K for the year ended December 31, 2019. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

About iHeartMedia

iHeartMedia (Nasdaq: IHRT) is the number one audio company in the United States, reaching nine out of 10 Americans every month - and with its quarter of a billion monthly listeners, has a greater reach than any other media company in the U.S. The company’s leadership position in audio extends across multiple platforms including more than 850 live broadcast stations; streaming music, radio and podcasts via its iHeartRadio digital service available across more than 250 platforms and 2,000 devices including smart speakers, digital auto dashes, tablets, wearables, smartphones, virtual assistants, TVs and gaming consoles; through its influencers; social; branded iconic live music events; and podcasts as the #1 commercial podcast publisher globally. iHeartMedia also leads the audio industry in analytics and attribution technology for its marketing partners, using data from its massive consumer base. Visit iHeartMedia.com for more company information.

The New Normal: Programming & Personality In A Once-In-A-Lifetime Crisis.

Story by Inside Radio

Webinar: https://event.webinarjam.com/replay/7/rv9r4s2axbrbyln

The way listeners are using radio has shifted dramatically over the past few weeks, talent coach Tracy Johnson says. With that in mind, Johnson and Benztown President Dave “Chachi” Denes and P1 Media Group Partner Ken Benson provide some insights, tools and support for radio programmers and talent to navigate “The New Normal.”

“Your apps, your streaming and your smart speaker listening is going up,” Johnson told attendees of the webinar, “The New Normal: Programming & Personality In A Once-In-A-Lifetime Crisis.” He suggests switching to Total Line Reporting. “If you’re not doing Total Line Reporting you’re leaving some shares on the table,” he said.

In addition to managing and putting more focus on the digital delivery of your product, more attention should be paid to what’s coming out of the smart speakers at this time.

Music stations should step up their news content, Johnson says. “Step it up a notch from wherever you are now, but don’t turn that dial from one to ten,” he explains. “If you’re not used as a news outlet in your market, don’t suddenly try to become one.” Some suggestions for topical content include “good news” and “hometown heroes” features.

“We’re here to play music and have fun, but now is also a time to inform and educate the audience,” Benson adds. “That is an important piece in what we do today that was different just a short time ago.”

While the public needs to be informed of state and local guidelines on social distancing and how the current school year will play out, Johnson reminded attendees that listeners are coming to music stations looking for relief from the doom and gloom and the hard news they’re getting elsewhere.

“From a programming standpoint I think this is a time to be more comfortable and more familiar than we’ve been before. Listeners are stressed, there’s a lot of anxiety,” he offers. When the listener is highly-stressed, “you want to take a little bit of the edge off,” he says. “I would play less new music and I would take a little bit of an edge off the music. I wouldn’t slow the tempo of the station down, but I would make it more familiar, more comfortable, and probably play more recurrents and more gold.”

Adjust, Don’t Change

Imaging on your station should also be adjusted. “We are seeing a great deal of that,” Denes says. Demand for new and updated imaging at Benztown has increased. “A lot of that is stations reacting and making sure that they are sounding as authentic as possible.”

Adjust, don’t change, was the underlying theme of the webinar attended by more than 700 industry professionals. This also goes for personality-driven shows. Many of the same points made for programming during this unprecedented time mirror what personalities should be doing on-air. “Be who you, don’t change who you are,” Johnson says. “Listening is already disrupted, don’t make it worse by sounding different or being something you’re not.” Some show features may have to be dropped or adjusted during these times, especially those that require listener interaction. Johnson believes it’s a good time to play back some of the “best-of” moments.

Even though every staff member is caught up in the challenges this new normal brings, plans should be made for when life, as we used to know it, returns. “Plan for the parade,” Johnson implores. “When it’s over, be ready.”

The webinar also provided examples of how some radio stations have adjusted to the new normal. Some of these were culled from the new Facebook group “Coronavirus Radio Ideas,” created by P1 Media Group and Benztown, where radio stations and personalities from around the world are exchanging ideas. The group has more than 2,000 members and is loaded with ideas from fellow broadcasters.

A playback of the webinar “The New Normal: Programming & Personality In A Once-In-A-Lifetime Crisis” is available HERE: https://event.webinarjam.com/replay/7/rv9r4s2axbrbyln

Urban One Forced To Make ‘Very Difficult’ Cuts And Furloughs.

Story by Inside Radio

Urban One has joined other radio groups forced to make difficult decisions as the COVID-19 pandemic rattles the U.S. economy, and with it, radio’s advertising revenue stream. A brief memo released by the company explained it has made “very difficult decisions to furlough or layoff many employees, across all divisions of the company.”

“Urban One will not be making comments about specific divisions, stations or individuals but, like every business and person in this country, we are navigating our way through this pandemic,” a statement from the company provided to Inside Radio read. “Urban One remains committed to providing the African American community with a voice and being a source of information to our viewers, listeners and content consumers.”

Among those affected by the cuts and furloughs are:

Dustin Cross, Program Director of CHR “Radio Now 100.9” WNOW-FM Indianapolis and CHR sister “92.1 Radio Now” KROI Houston, has been let go. Cross also hosted afternoons at WNOW-FM and served as the company’s CHR Format Director. Mallory Moreno, night host at WNOW-FM and Amir Diamond, who held the same role at KROI, also exit.

In Atlanta, “Jarard J” Johnson, who hosted nights at urban AC “Majic 107.5” WAMJ, is a victim of the cuts at the company, while Radio One Dallas VP of Programming and Operations Marc McCray has reportedly been furloughed.

In St. Louis, urban contemporary “Hot 104” WHHL midday personality Meghan O’Donnell and afternoon co-host “Miss Pooh” (Ge’Nella McCrary) exit. At urban AC sister WFUN-FM (95.5) afternoon hosts DJ. Kut and Ms. Sinita both depart, the St. Louis Dispatch reports.

Also out is Jerry Smith, Program Director of urban gospel WNNL Raleigh (103.9). Smith also served as Inspirational Content Director for Radio One’s gospel stations.

Below is the text of a memo from Urban One, posted by RadioFacts.com.

“Today is an extremely difficult day for all of us at Radio One and Reach.

“As you are aware, we are faced with a time of uncertainty and it is not business as usual. Our businesses have been dramatically affected by the effect of the coronavirus on our advertisers. We have experienced significant cancellations for second quarter and new business is coming in at a trickling rate. The decline in revenues forces us to react soundly and appropriately to ensure that we are able to operate our businesses going forward.

“Unfortunately, this meant having to make very difficult decisions to furlough or layoff many employees, across all divisions of the company today. While we hope to bring many of them back, unfortunately at this time we do not know when this crisis will end.”
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Read more: https://radioink.com/2020/03/23/virus-reverses-growth-at-urban-one/

NFL Hall of Famer Bobby Mitchell passes at 84 years old - Played for the Cleveland Browns and Washington Redskins

NFL Hall of Famer Bobby Mitchell passes at 84 years old. He played for the Cleveland Browns and Washington Redskins. Mitchell was also a World Class Sprinter in College. (Video above by 60 minutes Sports and the NFL)

CBCF 2020 - The Mission Goes On

April 3, 2020

Dear Kirk,

Due to the COVID-19 crisis, the Congressional Black Caucus Foundation, Inc. (CBCF) joins countless others in navigating these unprecedented times. It is during challenging times that we must continue to embrace community. In the near future, some CBCF events may be postponed, rescheduled or transitioned to a virtual experience. All of our events, programming, research and policy analyses are mission critical for us to continue to make an impact on young people nationwide. The mission must be fulfilled!

In order to continue our more than 40 years of commitment to advancing the global black community, we need your help. Please consider making a contribution to CBCF to help educate the next generation of leaders, specifically by supporting the scholarship fund.

In the past several weeks, we have taken swift action to protect our staff, our interns, and our mission. This fall, young people will return to colleges and universities, and they will need our scholarship assistance. African American students need us now more than ever.

The mission goes on! Please invest in our future. While many of us are uncertain in the present, it is the mission of the CBCF to prepare and support policy and business leaders of tomorrow. Work with us as we work to ensure the global impact of the Leadership Institute.

Thank you for your continued commitment.

Sincerely,

Tonya Veasey
Interim President and CEO

Entercom Broadcasting Enacts Layoffs, Furloughs, Pay Cuts.

Entercom Enacts Layoffs, Furloughs, Pay Cuts.

Entercom has become the latest radio company to institute layoffs, furloughs and pay cuts in the wake of the COVID-19-fueled economic shutdown. The company says it has eliminated numerous positions but didn’t provide a number. In a memo to employees, CEO David Field described the cost reductions as “significant."

www.insideradio.com