"Citadel Broadcasting today (Feb. 29) brought home a very bad report card
and the big guy, chairman of the board and CEO Farid Suleman, says things
are going to change. And change fast -- beginning this week and over the
next two weeks. It could get ugly.
Citadel had a fourth quarter net loss of $848 million, Citadel losses were
“primarily attributable to lower revenues in our San Francisco, Calif.;
Washington, D.C.; Chicago, Ill., etc.
Suleman said that Citadel began instituting major restructuring of the
company’s major markets this past week and will continue over the next two
weeks. The restructuring will “create a very significant savings in costs
and position the stations for major growth even in a zero-based growth
environment,” he said, adding that because of the changes, the company will
offer no financial guidance for the year.
“There is at least $20 million of potential cash flow from assets that are
just not producing any cash flow right now. There is another $15 to $20
million in streamlining and expense reductions to make the company more
responsive to the market,” Suleman said. “2008 is the time and it will all
be done before the end of the first quarter. “
Suleman said, “You want to get every opportunity to perform. The environment
is such that you don’t have too much time so there could be changes across
the board,” Suleman said. “The time for talk is over and it is now time for
the walk. We will have a plan to get everything done in next three to six
months and we expect to see major changes in 2009 and 2010. But everything
will be done in 2008,” Suleman concluded. "