With no analyst conference call scheduled, Citadel Broadcasting issued a press release that its Q4 revenues plunged 12.7% to $214.2 million. The company said it is negotiating with its lenders to obtain a waiver or amendment to its senior credit facility. As of December 31st, the company’s outstanding bank debt was just over $2 billion.
Segment operating income in Q4 declined 22.1% to $67.3 million, with $18.6 million of the $19.1 million decline at the radio group and $500,000 at the ABC Radio Networks. Segment operating income for the radio group was $59.7 million and for the radio network business $7.6 million.
Citadel reduced its outstanding debt by $41.5 million during the quarter, but is still heavily leveraged. “As of December 31, 2008, the Company is in compliance with its debt covenants under its senior credit facility. However, the expected continuing decline in radio revenues in the first half of 2009 and the resulting projected decline in operating profits creates uncertainty regarding the Company’s ability to continue to comply with its debt covenants under its senior credit facility through 2009. As a result, the Company is currently working with its lenders to obtain a waiver of or amendment to its senior credit facility; however, there can be no assurance that the Company will be able to do so. In the event that the Company does not obtain a waiver or amendment, then the Company will likely be in default of its senior credit facility,” Citadel said in its quarterly announcement.
The company has delayed filing its annual 10-K report with the SEC. Citadel said it expects to make the filing by the end of this month.