The debt decreased slightly and the cash-on-hand increased by $63 million in the time since Endeavor most recently shared financial data. The company is carrying significant debt. It reports cash-on-hand of $830.9 million. It reports that it has longterm debt of $4.6 billion and liabilities of $7.2 billion.
Revenues at Endeavor Content Group increased substantially during the second quarter of 2019, a three-month period that also saw the entertainment company reduce its losses.
Endeavor was initially expected to have launched its public offering by late summer, but those plans were postponed in part because the company is finalizing its acquisition of On Location Experiences, a high-end events business. It also wanted to wait to test the markets until after its second quarter numbers were made available — numbers it hopes will make a case that it is a growing company, not a diminished old media player.
Endeavor is run by CEO Ari Emanuel (pictured) and Executive Chairman Patrick Whitesell.
The company pulled back the curtain on its finances as it continues to prepare for an initial public offering, one that has been greeted with a healthy degree of skepticism from the financial community. Endeavor maintains that it has grown far beyond its roots representing movie and television stars into a heavily diversified company involved in sports, fashion, and scripted entertainment. Some analysts believe that Endeavor is too dependent on volatile businesses such as talent representation and is overly leveraged after embarking on an acquisitions binge that saw the company buy the UFC, as well as sports and modeling agency IMG.
Gene Maddaus contributed to this report.” />
Adjusted EBITDA also increased, rising from $113 million to $165.7 million. Revenues grew 33% year-over-year from $780.7 million to $1.04 billion over the three-month period ending in June. Adjusted net income swung from a loss of $40.3 million to a gain of $47 million. Net losses dropped significantly, falling from $328.7 million in the year-ago period to $67.7 million. Still, the most recent picture it presented in filings was rosier than the one it initially offered investors.
The improvement in revenues was partly attributed to the sale of sports media rights, specifically involving tennis and soccer. The reduction in losses was due to lower income taxes and lower costs related to its compensation packages for executives.

“Endeavor’s dual-class structure will likely disqualify it from inclusion in FTSE Russell and S&P Dow Jones indices, which Endeavor notes could adversely affect the market price of its Class A common stock,” the alert said.
“The potential for conflicts of interest with public investors echoes current practices in Endeavor’s representation business that have enriched the agency at the expense of its clients, and that recently caused 1,400 writer-clients to walk away from the firm,” said WGA West director of research Laura Blum-Smith.
The WGA took Endeavor to task a month ago, sending a June 26 letter to William Hinman, director of the SEC’s corporate finance division, accusing Endeavor of misrepresenting the number of clients it has in its talent representation units in the IPO prospectus. Endeavor strongly denied the guild’s assertion in June.
The Writers Guild of America West is turning up the heat on Endeavor's planned initial public offering, accusing the parent of WME of widespread potential conflicts of interest.
Endeavor declined to comment to Thursday's investor alert with a reprsentative noting that the company is in a "quiet period" prior to the IPO.
The parties have turned to the courts to settle their differences, with the WGA suing the big four agencies, and three agencies so far — WME, CAA and UTA — suing the WGA back. Following a strong vote of support in March from writers, the WGA instructed guild members on April 12 to “fire” their agents after the sides failed to reach an agreement on a new Code of Conduct that ended longstanding industry practices.
No new talks have been scheduled. The alert referenced the current stalemate between the WGA and WME. The WGA called off negotiations with the Association of Talent Agents on June 21 in favor of pursuing individual talks with nine top agencies as it enforces a total ban on packaging fees and affiliated production for agents representing guild members.
“These provisions are particularly concerning as the company concedes that its top executives may have conflicts of interest with public investors, noting ‘Messrs. Emanuel’s and Whitesell’s, Executive Holdco’s and the Silver Lake Equityholders’ interests may not be fully aligned with yours, which could lead to actions that are not in your best interest," it added.
Endeavor’s structure also includes “poison pills” designed to give company insiders indefinite control, the alert warned.
The WGA has scored a trio of victories with a pair of midsize agencies, Verve and Kaplan Stahler, agreeing to sign the code of conduct and a group of Abrams Artists agents forming a new agency that will sign the code.” />
“This is not a theoretical concern as Endeavor’s conflicts of interest with its clients are currently having an impact on the company’s representation segment, where it has lost 1400 writer-clients since April," the guild said in Thursday's investor alert.
The alert said Endeavor’s dual-class stock structure gives CEO Emanuel, executive chairman Whitesell, and affiliates of private equity owner Silver Lake control of most of the company’s non-traded Class Y shares, which carry 20 votes compared to the single-vote public Class A shares.
The WGA West issued a second “Investor Alert” on Thursday in advance of Endeavor’s IPO, warning that the new public company’s corporate governance structure dramatically favors company insiders including top executives Ari Emanuel and Patrick Whitesell and restricts public investors’ ability to exercise meaningful oversight.

"Audio is hot, and we are the No. based on consumer reach," iHeartMedia touted in the filing. 1 audio media company in the U.S.
In an S-1 filing with the SEC Wednesday, iHeartMedia said, "We intend to use the net proceeds from this offering to repay indebtedness." The company set a placeholder amount of $100 million as the amount to be raised (used to calculate the registration fee), which is not indicative of the size of the offering.
As it nears the exit of a year-long bankruptcy reorganization, iHeartMedia filed paperwork laying the groundwork for an initial public offering — to raise money to pay off its debts.
Among the risk factors cited in its IPO prospectus, iHeartMedia said there could be "substantial market overhang from securities issued in the Reorganization and freely tradeable as of the date of this offering." The company's stock remains available to trade on an over-the-counter basis.
The company owns 848 radio stations in 160 markets and the iHeartRadio music and podcast streaming service, which has 128 million registered users. It also produces over 20,000 local live events per year and eight major national tentpole events, including the iHeartRadio Music Festival and iHeartRadio Music Awards, and claims to be the largest commercial podcast publisher.
Formerly known as Clear Channel, iHeartMedia filed for Chapter 11 bankruptcy in March 2018 after amassing more than $20 billion in debt following a leveraged buyout a decade earlier.
The company enlisted Goldman Sachs and Morgan Stanley as underwriters for its potential IPO.” />
Its $976 million of adjusted EBITDA (earnings before interest, taxes, depreciation and amortizaiton), represents a 27% margin. That, iHeartMedia claimed, is the highest adjusted EBITDA margin of any major advertising-supported audio media company, iHeartMedia claimed. For full-year 2018, iHeartMedia generated $3.6 billion in revenue — essentially flat from the year prior — and a net loss of $38 million on a pro-forma basis (backing out Clear Channel Outdoor).
The radio broadcasting giant and podcast leader may decide to pursue an IPO, or execute a direct listing (as Spotify did in its unconventional IPO last year).
This January, a U.S. Also in January, the company said chairman and CEO Bob Pittman and Rich Bressler, president, COO and CFO, have extended their contracts by four years. court approved iHeartMedia's bankruptcy plan, which will cut its debt from $16.1 billion to $5.75 billion. The plan calls for iHeartMedia and billboard operator Clear Channel Outdoor to be separated, creating two independent public companies. The execs will remain in their respective roles following the completion of restructuring process.