For those looking towards Getty Images financial demise, Moody's Investor Service released some interesting information on August 14, 2015:
https://www.moodys.com/research/Moodys-says-Getty-Images-plan-to-issue-additional-debt-is--PR_332559
Some interesting quotes from the Moody's report:
Given the company's very high leverage and limited free cash flow, Moody's believes capital to be raised by the company to fund additional growth investments should be largely in the form of equity to avoid negative rating actions. Getty Images' senior secured term loan B (roughly $1.85 billion outstanding) is due 2019 and the $550 million 7% senior notes are due 2020. The ability to refinance these debt instruments prior to their maturities becomes increasingly challenged to the extent the company is not able to reduce leverage below current levels.
Basically, Getty Images has a ton of debt to support. They are barely holding it together right now. There are some major loans due in 2019 and 2020 and there are concerns that Getty might not be able to refinance.
Revenue totaled $827 million for the 12 months ended June 30, 2015.
No doubt that the License Compliance division contributes to these revenues. I would even go so far that upper management constantly cracks the whip on them to collect more money. Getty Images desperately needs cash flow to service their debt levels.
If you sign up for a free account of the Moody's Investor Service (as I did), you will find even more goodies (although some reports you have to pay for to read).
Here is another negative report by Moody's about Getty Images from December 15, 2014.
Moody's Changes Outlook of Getty Images from Stable to NEGATIVE!
https://www.moodys.com/research/Moodys-changes-the-outlook-of-Getty-Images-to-Negative-from--PR_314730
This particular article has a LOT of detail that I have not entirely processed yet. But it is mostly bad from the tone of the article.
Moody's Investors Service ("Moody's") changed the rating outlook of Getty Images, Inc. ("Getty Images") to negative from stable due to continuing declines in Midstock revenue and Moody's revised forecast indicating very high leverage over the next 12 months with reduced free cash flow.
At the end of 2014/early 2015, Moody's gave Getty Images very bad marks to their corporate health.
I predict that Getty Images will have to file Chapter 11 bankruptcy in the near future to do a corporate reorg. Short of substantial cash revenue growth or investor cash infusion, their corporate debt seems likely to break them in the near future. Remember this, I am calling it now!
I am betting that most of the Getty Images employees have no clue how bad things are because most of them are only concerned about their salaries and not smart enough to read investor business reports to get the inside poop of a large company. Upper management has no incentive to tell their lower-level employees of the financial crisis Getty Images is in. Lower level employees are always the last to know.
Smart Getty employees will start polishing their resumes and get the hell out before things get really bad. Upper management will always take care of themselves with golden parachutes while the line employees and lower management take a bloodbath.
Getty employees can thank me for advance warning of a future Chapter 11 bankruptcy filing. I don't have confidence Getty will turn it around but, who knows, I could be proven wrong.
https://www.moodys.com/research/Moodys-says-Getty-Images-plan-to-issue-additional-debt-is--PR_332559
Some interesting quotes from the Moody's report:
Given the company's very high leverage and limited free cash flow, Moody's believes capital to be raised by the company to fund additional growth investments should be largely in the form of equity to avoid negative rating actions. Getty Images' senior secured term loan B (roughly $1.85 billion outstanding) is due 2019 and the $550 million 7% senior notes are due 2020. The ability to refinance these debt instruments prior to their maturities becomes increasingly challenged to the extent the company is not able to reduce leverage below current levels.
Basically, Getty Images has a ton of debt to support. They are barely holding it together right now. There are some major loans due in 2019 and 2020 and there are concerns that Getty might not be able to refinance.
Revenue totaled $827 million for the 12 months ended June 30, 2015.
No doubt that the License Compliance division contributes to these revenues. I would even go so far that upper management constantly cracks the whip on them to collect more money. Getty Images desperately needs cash flow to service their debt levels.
If you sign up for a free account of the Moody's Investor Service (as I did), you will find even more goodies (although some reports you have to pay for to read).
Here is another negative report by Moody's about Getty Images from December 15, 2014.
Moody's Changes Outlook of Getty Images from Stable to NEGATIVE!
https://www.moodys.com/research/Moodys-changes-the-outlook-of-Getty-Images-to-Negative-from--PR_314730
This particular article has a LOT of detail that I have not entirely processed yet. But it is mostly bad from the tone of the article.
Moody's Investors Service ("Moody's") changed the rating outlook of Getty Images, Inc. ("Getty Images") to negative from stable due to continuing declines in Midstock revenue and Moody's revised forecast indicating very high leverage over the next 12 months with reduced free cash flow.
At the end of 2014/early 2015, Moody's gave Getty Images very bad marks to their corporate health.
I predict that Getty Images will have to file Chapter 11 bankruptcy in the near future to do a corporate reorg. Short of substantial cash revenue growth or investor cash infusion, their corporate debt seems likely to break them in the near future. Remember this, I am calling it now!
I am betting that most of the Getty Images employees have no clue how bad things are because most of them are only concerned about their salaries and not smart enough to read investor business reports to get the inside poop of a large company. Upper management has no incentive to tell their lower-level employees of the financial crisis Getty Images is in. Lower level employees are always the last to know.
Smart Getty employees will start polishing their resumes and get the hell out before things get really bad. Upper management will always take care of themselves with golden parachutes while the line employees and lower management take a bloodbath.
Getty employees can thank me for advance warning of a future Chapter 11 bankruptcy filing. I don't have confidence Getty will turn it around but, who knows, I could be proven wrong.