Muzak reports $65 million 2008 EBITDA, anticipates 'successful 2009'

By Caroline Salls

Pittsburgh, May 4 - Muzak Holdings LLC reported $65 million of EBITDA for the year ended Dec. 31 on $248.9 million in total revenues, according to a company news release.

In comparison, the company posted $68.7 million in EBITDA for the year ended Dec. 31, 2007 on $250.2 million in total revenues.

The company said its EBITDA in fiscal years 2007 and 2008 excluded a total of $6.4 million in non-recurring expenses directly associated with a proposed merger transaction and financial restructuring.

"When Muzak commenced its Chapter 11 case on February 10, 2009, we announced our commitment to maintaining normal operations, further reducing costs, and improving on our already high service levels," chief executive officer Stephen P. Villa said in the release.

"I am proud of Muzak for achieving these objectives, and our ability to continue to fund our business with cash on hand and cash generated by our operations. We believe that we are taking the right steps to position the company for long-term success.

"Our continued focus on delivering quality products and service has helped us further solidify key relationships, and resulted in the signing of many new clients.

"We continue to launch new programs for the benefit of our clients, which demonstrates our commitment to grow the business and expand our offerings.

"The launch of Visual Solutions, our comprehensive digital signage product line, has been well received by our client base and the marketplace. Muzak is looking forward to a successful 2009."

Muzak said its cash on hand has increased since the Chapter 11 filing, and, as of April 30, Muzak had a balance in excess of $35 million, which is believes will be sufficient to support the business.

The company said it does not plan to announce its quarterly or full-year earnings results going forward.

Muzak, a Fort Mill, S.C.-based recorded music company, filed for bankruptcy on Feb. 10 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-10422.

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