The financial effects of the coronavirus pandemic continues to be felt at broadcasters with Beasley Media making additional rollbacks this week.
In a memo to employees sent yesterday, Beasley CEO Caroline Beasley announced that the company will extend and make additional financial cutbacks including reducing performance based bonus distributions for bonuses earned in Q3 and Q4, extending the 10% wage cut for salaried full-time employees and extending the 10% reduction in hours for full-time hourly employees through the end of 2020. The company will also be extending all employees currently on furlough through the end of the year but Beasley states that some may return sooner based on the needs of each individual market. Caroline Beasley will also continue her own 20% cut in compensation through the end of the year.
The additional cutbacks follow an SEC filing last month projecting that it was unlikely to be able to comply with its First Lien Leverage Ratio as of June 30, 2020 and was seeking to enter into an amendment to its credit facility in the coming weeks, and projects that it will be in compliance with the financial covenants, as amended, over the next twelve months. If the Company is unable to obtain an amendment to its credit facility, it would result in an event of default thereunder, which would materially affect its results of operations, liquidity and financial condition.
The company also made another round of cuts this week. Among the known departures:
Classic Rock 94.7 WCSX morning co-host Erin Vermeulen departs after three years after being notified her contract would not be renewed. Vermeulen joined WCSX in June 2017 to co-host mornings with Jim O’Brien after previously working at 640 KFI Los Angeles. The Detroit native has also worked in the Denver and Phoenix markets as well as internationally in Cairo, Dubai, and South Africa.
“The Robb Show” hosted by Rob Garguilo is out at nights at Classic Rock “96 K-Rock” WRXK Bonita Springs/Fort Myers. Garguilo joined WRXK in January 2019 after previously serving as a producer for Bubba The Love Sponge.
Country 102.5 WKLB Boston Program Director and National Country Format Brand Manager David Corey announced last week that he would be leaving the company later this month after being unable to come to terms on a new contract.
Crossing Broad reports that four unnamed staffers have been let go in Philadelphia as well.
Caroline Beasley’s memo follows:
Words cannot begin to express my sincere gratitude and appreciation for your continued support and dedication throughout these unprecedented times.
The recent horrific and senseless tragedy that claimed the life of George Floyd was unconscionable. As a company, we are committed to using our voice for the positive and peaceful change needed to move our nation forward in ensuring justice and equality for all.
The pandemic has changed the world as we know it and, as a result, has created an unforeseen new sense of “normal” in our daily lives.
We are very grateful for your on-going commitment over the past several months. As a result of your efforts, we have been able to support our local communities and make a real difference in the lives of our listeners and their families during their greatest time of need.
Similar to other companies, Beasley has evolved the way we approach our daily operations as a result of the economic impact caused by the pandemic. Our initial plan, originally unveiled in March, was structured with the #1 goal of keeping our employees safe during these unprecedented times and resuming our business operations at the appropriate time (approved by state and local governments).
No one could have ever anticipated that several of our markets would not begin the first phase of the reopening process until June. As a result, we must continue to adapt to the new financial environment we are facing within each of our individual markets. We will be reducing performance based bonus distributions for bonuses earned in Q3 and Q4, extending the 10% wage cut for salaried full-time employees and extending the 10% reduction in hours for full-time hourly employees. These cuts will be effective through December 31, 2020, respecting any outstanding contractual obligations. In addition, the company will be extending furloughs until the end of the year. Some employees may return sooner, based upon the needs of the company on a market to market basis. I will also personally continue to forego 20% of my compensation until the end of the year.
As a family-owned company that has served the community for nearly 60 years and cares about its employees, decisions like these are never easy. We are very grateful for your continued support.
As history has proven time and time again, when challenges arise, one thing is certain… we, as individuals and as a nation, remain resilient.
Our communities count on us to be there for them and serve as a voice for the voiceless. Please remember that what you do matters.
Better days will be ahead. Thank you for all you do.
