KKR-Backed Simon & Schuster Asks to Delay to Financial Results

(Bloomberg) -- Publisher Simon & Schuster Inc. is seeking a 90-day extension to file its audited financial results for 2023 and for the first quarter of 2024, according to people with knowledge of the matter.

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The closely held company informed lenders this week that it needs more time to file the results, said the people, who asked not to be identified discussing a private matter. The firm, which was carved out of Paramount Global last year, is working with a different auditor, they said.

The request comes as the company released a financial snapshot that showed a roughly 8% decline in revenue for 2023 when compared to the prior year period, they said. Revenue in the first-quarter was also down on year-over-year basis. The 2022 revenues were bolstered from the strong sales from author Colleen Hoover, an author with a strong social media following, another person familiar said.

Some lenders are now requesting that the company provide more data points regarding its financial performance ahead of Thursday’s consent deadline, according to the people. Simon & Schuster has offered lenders a temporary extension of their call protection — which guards against early repayment of debt — in exchange for allowing the publisher to delay its financial report.

Meanwhile, its cash balance in the first-quarter was materially higher than earlier forecasts, one of the people said.

KKR & Co last year acquired Simon & Schuster for $1.62 billion in all-cash transaction, according to a press release.

Its roughly $1.1 billion term loan is quoted slightly lower to about 99.75 cents on the dollar, compared to slightly above par prior to the news, according to data compiled by Bloomberg.

Messages left with the company were not returned, while a representative with KKR declined to comment.

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