By Josh Beckerman
Troika Media Group said there is substantial doubt about its ability to continue as a going concern and said it is in talks with senior lender Blue Torch about waivers that expire Friday.
The branding and marketing company also said revenue fell 31% to $58.7 million for the second quarter ended June 30 as net loss narrowed to $12.3 million from $18.1 million. Results reflected decreased spending by insurance clients within the managed services revenue stream.
Shares were down 6.4% after hours to $1.03.
Troika said capital structure issues and the costs of the Blue Torch debt “have materially impacted” the company’s liquidity and it noted the “material amounts of time management has spent on the restructuring process.”
The company didn’t make a principal and interest payment due to Blue Torch on Sept. 30. It said in a Wednesday securities filing that the outside date for a waiver was extended to Friday from last Friday.
Troika said in February that it hired Jefferies to optimize the company’s capital structure and to explore strategic alternatives. At the time, Troika said it had “refined our business model since the acquisition of Converge Direct in second quarter 2022 to take advantage of substainably higher margin opportunities to meaningfully improve strategic and financial results.”
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