As it works through a Chapter 11 bankruptcy restructuring, Citadel Broadcasting reports that Q4 revenues were down 9.9% to $192.9 million. The company said its large market stations generally did better than those in medium and small markets.
“The current economic environment for our industry combined with the Company’s bankruptcy filing made for a difficult fourth quarter. However, our focus on expense reductions enabled the Company to generate segment operating income of over $65 million or a decline of less than 3% when compared to the fourth quarter of 2008. In spite of the bankruptcy filing, the Company has continued to make all of the interest payments required under its senior debt and had approximately $57.4 million in cash as of December 31, 2009. The Company did not need to secure debtor in possession financing,” said CEO Farid Suleman.
Radio station revenues fell 5.1% in Q4 to $161.2 million, with much of that attributed to the lack of political advertising. Segment operating income for the stations was off only 0.2% to $59.5 million, due to cost cutting.
Radio network revenues dropped 29.9% to $32.5 million. The company said the network declione was attributable in part to discontinuing certain programs. Network operating income fell 22% to $5.9 million.
For the entire company, segment operating income fell 2.7% to $65.4 million. On the bottom line, operating income turned positive to the tune of $50.5 million from a loss a year earlier of $787.3 million. That was largely due to an impairment charge of $836.5 million in Q4 2008.