Recent

The New Multi-Purpose Stand from CHAUVET DJ, FLEXstand FX ILS Doubles as a Light Show

September 19, 2025

Registration for The 2026 NAMM Show Is Now Open as the Stage is Set for a Historic Gathering

September 19, 2025

AES Board of Governors Elects Agnieszka Roginska as Director

September 19, 2025

Solid State Logic Appoints CJ Lewis to National Sales Manager, Western U.S., for Audio Creation Products

September 19, 2025

Guitar Center’s Fall Guitar-A-Thon Returns with Exclusive New Launches and Epic Seasonal Savings

September 19, 2025

Gibson x Loog Collection

September 19, 2025

MESA/Boogie Bass-800D

September 19, 2025

On-Stage Endpin Anchor Strap for Bass/Cello Delivers Essential Instrument Stability

September 19, 2025
Saturday, September 20, 2025
  • Contact
MMR Magazine
  • Subscribe Now!
    • Subscribe Now!
  • Advertise
  • Email Press Releases!
  • Current Issue
    • Past Issues
  • Newsroom
    • News
    • MMR Global
    • Supplier Scene
    • Upfront
    • People
  • Awards
    • Dealers’ Choice Awards Ballot 2024
    • Don Johnson Award Winners Archive
  • Directory
  • Get Support!
No Result
View All Result
  • Subscribe Now!
    • Subscribe Now!
  • Advertise
  • Email Press Releases!
  • Current Issue
    • Past Issues
  • Newsroom
    • News
    • MMR Global
    • Supplier Scene
    • Upfront
    • People
  • Awards
    • Dealers’ Choice Awards Ballot 2024
    • Don Johnson Award Winners Archive
  • Directory
  • Get Support!
No Result
View All Result
MMR Magazine
No Result
View All Result

Analyst concern over Gibson outlook

Ronnie Dungan by Ronnie Dungan
March 7, 2016
in MMR Global
0
938
SHARES
2.3k
VIEWS
Share on Facebook
ADVERTISEMENT

Gibson Brands had its credit rating downgraded, thanks in part to the poor consumer reception of its 2015 guitar range.

The firm was downgraded by Moody’s Investors Service, which also put the rating on a negative outlook in a strikingly negative report. The rating was downgraded from B3 to Caa1.

ADVERTISEMENT

In addition to the poor sales for its 2015 guitars, Gibson was downgraded because of high turnover in its senior financial management. The downgrade came with an ominous warning that Gibson may not be able to meet its near term financial obligations, including nearly $100 million in obligations due over the next 22 months.

“The ratings also reflect the company’s high leverage at around 8.5 times and the risks associated with the consumer electronics business,” said Moodys.

The downgrade comes on the heels of Gibson aggressively acquiring consumer electronics companies, including Onkyo, and shifting its strategy from focusing primarily on guitars and other instruments to more broadly becoming a music lifestyles company.

Those acquisitions have left the company increasingly leveraged, with a debt to earnings before interest, taxes, depreciation and amortization ratio of 8.5 times, according to Moody’s. That’s up from a debt to EBITDA ratio of 5-times at this time last year.

The company introduced some design changes last year including a robotic tuner called the E-Tune that was standard on many of its flagship models.

Gibson says it is already seeing a financial turnaround on the sales side, and the company has a new CFO to help address stability concerns about senior financial management. 

“The company has posted quarterly results for our quarter ending December 2015 that were materially better than they were for the prior year,” Gibson Chairman and CEO Henry Juszkiewicz said. “While we experienced a soft reception to our 2015 products, we have since introduced our improved 2016 product line that is performing extremely well both in sales to retailers and sell through to consumers globally. We feel we are on an upward trend, poised for an excellent year and are confident of the future.”

Tags: Gibson BrandsMoody Investor Service
Previous Post

Two Old Hippies Announces the Retirement of Bruce Weber Sr. as General Manager

Next Post

Aquila strikes Korean deal; moves against fakes

Related Posts

MMR Global

Registration for The 2026 NAMM Show Is Now Open as the Stage is Set for a Historic Gathering

September 19, 2025
David Leonhard, HK Audio ISM Middle East and India, Manikk Gupta, Managing Partner at Hi-Tech Audio Video Systems Pvt and Christian Jordan HK Audio CSO
MMR Global

HK Audio Names New Indian Distributor

September 19, 2025
MMR Global

Reverb UK Relaunches with a Lower Seller Fee and One-of-a-kind Music Gear

September 18, 2025
MMR Global

Music & Arts Offers Free Commissioned Concert Band Score to Music Educators

September 7, 2025
MMR Global

2025 MMR Dealers’ Choice Awards Nominations – Ballot Closes 9/5!

August 22, 2025
MMR Global

Fulcrum Acoustic Names Audio Acoustics Exclusive Distributor for the Netherlands

August 15, 2025
Next Post

Aquila strikes Korean deal; moves against fakes

Please login to join discussion
  • Trending
  • Comments
  • Latest

MESA/Boogie Bass-800D

September 19, 2025

D’Addario Launches Players Choice Custom String Shop

September 19, 2025

The New Multi-Purpose Stand from CHAUVET DJ, FLEXstand FX ILS Doubles as a Light Show

September 19, 2025

Guitar Center’s Fall Guitar-A-Thon Returns with Exclusive New Launches and Epic Seasonal Savings

September 19, 2025

The New Multi-Purpose Stand from CHAUVET DJ, FLEXstand FX ILS Doubles as a Light Show

Registration for The 2026 NAMM Show Is Now Open as the Stage is Set for a Historic Gathering

AES Board of Governors Elects Agnieszka Roginska as Director

Solid State Logic Appoints CJ Lewis to National Sales Manager, Western U.S., for Audio Creation Products

The New Multi-Purpose Stand from CHAUVET DJ, FLEXstand FX ILS Doubles as a Light Show

September 19, 2025

Registration for The 2026 NAMM Show Is Now Open as the Stage is Set for a Historic Gathering

September 19, 2025

AES Board of Governors Elects Agnieszka Roginska as Director

September 19, 2025

Solid State Logic Appoints CJ Lewis to National Sales Manager, Western U.S., for Audio Creation Products

September 19, 2025
ADVERTISEMENT
The Latest News and Gear in Your Inbox - Sign Up Today!
  • September 2025

    Articles | Digital Issue
  • August 2025

    Articles | Digital Issue
  • July 2025

    Articles | Digital Issue
  • June 2025

    Articles | Digital Issue
  • May 2025

    Articles | Digital Issue
© 2005 - 2025 artistpro, LLC
7012 City Center Way, Suite 207
Fairview, Tennessee 37062
(800) 682-8114

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Subscribe Now!
    • Subscribe Now!
  • Advertise
  • Email Press Releases!
  • Current Issue
    • Past Issues
  • Newsroom
    • News
    • MMR Global
    • Supplier Scene
    • Upfront
    • People
  • Awards
    • Dealers’ Choice Awards Ballot 2024
    • Don Johnson Award Winners Archive
  • Directory
  • Get Support!

© 2005 – 2024 artistpro, LLC 7012 City Center Way, Suite 207 Fairview, Tennessee 37062 (800) 682-8114

This is Modal Title

Click Me
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?