In its 2023 Annual Earnings report released on Monday, MediaCo Holding, the parent of Hip Hop “Hot 97” 97.1 WQHT and Adult R&B 107.5 WBLS New York, expressed that management has concluded that there is substantial doubt about their ability to continue as a going concern within one year after the date that the financial statements were issued.
MediaCo says it has experienced downturns in revenues and profitability and expects those to continue for an undetermined period of time. As of December 31, 2023, MediaCo had $6.5 million owed to Emmis in a Convertible Promissory Note that has $7.1 million due through April 1, 2025. Due to the debt service obligation, MediaCo management anticipates that it will be unable to meet its liquidity needs for the next twelve months with cash and cash equivalents on hand and projected cash flows from operations. The company says it is prepared to implement additional cost cutting measures as necessary and intends to seek additional borrowings to meet its debt service obligations, if needed. The company says as of December 31 it had $7.1 million in cash and cash equivalents and net working capital of $2.2 million down from $15.3 million in case and $13.3 million in working capital at the end of 2022 due to payment of income taxes related to its sale of its Outdoor division and lower accounts receivable as sales declined.
MediaCo also notes that its stock is in danger of being delisted by Nasdaq. The stock fell below $1 per share for 30 consecutive business days in September 2023 and were given 180 days to regain compliance for ten consecutive days followed by an additional 180 day extension until September 9, 2024.
MediaCo total net revenue in 2023 was $32,391,000 down from $38,595,000 in 2022 a drop of 16.1 percent. Operating expenses for the two stations were $32,633,00, down by $214,000 as lower Summer Jam production costs, ratings costs, and music license fees were partially offset by higher non-cash lease expenses related to a move to a new office space in February 2023.
MediaCo Holding stock has jumped up in the past five days closing at 53 cents per share on Thursday, March 28 and at 86 cents per share today.
