Meredith Corp. has delayed the release of its quarterly earnings report, due to "an extremely challenging business environment" caused by the COVID-19 pandemic.
In a filing to the U.S. Securities and Exchange Commission (SEC) on Monday, the company says it has experienced “significant advertising campaign cancellations and delays, which have negatively impacted our projections of future income,” as well as “material declines in our equity prices.”
Originally due Monday, the third-quarter earnings report will now be released Thursday, May 14.
The report is for the quarter ending March 31, 2020.
“The effects of the recent outbreak of the novel coronavirus pandemic have had and may continue to have an adverse impact on our business, financial condition, operations, and prospects," the company told the SEC.
Meredith Corp. says this may impact the demand and availability of its products.
The disruption of global financial markets "could in the future negatively affect our access to capital and our liquidity,” the filing continued.
“For example, any sustained materially adverse impact 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, including our credit facility."
In April, Meredith expanded its sales guarantee to assure advertisers investing in its magazine brands amid the crisis.The company also announced short-term pay reductions that would affect roughly 60% of its staff, as well as a salary and hiring freeze, to cut costs during this difficult time for the industry.