Meredith: More Cuts Could Be Coming
Meredith was supposed to report the company’s earnings report yesterday, but they did not.
Meredith that it is “an extremely challenging business environment" because of the COVID-19 pandemic and informed the U.S. Securities and Exchange Commission it is delaying its quarterly earnings report.
In its SEC filing, Meredith said the pandemic has caused "significant disruption of aspects of our business, including advertising cancellations and delays, reduced demand, loss or disruption of manufacturing and distribution capability, and quarantines and other government actions that have disrupted staffing and "necessary business functions.”
It is so bad that Meredith says that it could default on their outstanding loans.
"Any sustained materially adverse impacts on our revenues and other operating results due to the impact of the COVID-19 pandemic could cause us to breach our operating and financial covenants under our debt obligations."
The result, it said, could be defaults that would entitle lenders to demand immediate payment.
Meredith has cut employees pay, but says more cuts could be coming, saying the company, "may need to take further action to ensure the continuity of our business."
Meredith expects to give their earnings report later this week.