Emmis Communications has been down this rocky road before. In the latest filing with the Securities and Exchange Commission released this week, Emmis points to the possibility of selling assets to stay above water fiscally.
“We have one station in New York City and two stations in Chicago where we believe the sale value could exceed the prospects for cash flow generation as part of our portfolio,” the filing with the SEC says.
It goes on to say that Emmis is “optimistic about the growth potential for these stations.”
However, “as the market for buying and selling radio stations improves, we may from time to time explore sales of one or more of these stations as a means of maintaining compliance with certain covenants in our senior credit facility.”
It’s not the first time that Emmis has echoed these sentiments. They first told the SEC several quarters ago that selling part of the portfolio could happen.
The three Emmis New York stations are WQHT/Hot 97 (Hip Hop), WRKS/Kiss-FM (Urban), and WRXP/101.9 FM (Adult Album Alternative).
If ratings are any indication, ‘RXP, calling themselves The N.Y. Rock Experience, could be holding the short straw.
The station, since switching from the Smooth Jazz CD 101.9 format in February 2008, has consistently struggled. Their best numbers came December 2009 with a 2.5.
The latest Arbitron PPM ratings for September put ‘RXP at a 2.0, the lowest for a commercial FM station in New York.
Just last month, owner Jeff Smulyan failed in his bid take Indianapolis-based Emmis private.
FishbowlNY attempted to reach WRXP program director Leslie Fram for a comment.