☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 77-0121400 | |
(STATE OR OTHER JURISDICTION OF
| (I.R.S. EMPLOYER
| |
6400 NORTH BELT LINE ROAD IRVING, TEXAS | 75063 | |
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) | (ZIP CODE) |
Symbol(s)
on which registered
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller Reporting Company | ☒ | |||
Emerging Growth Company | ☐ |
Class A | Outstanding at | |
Common Stock, $0.01 par value per share | 21,315,449 shares |
Class B | Outstanding at | |
Common Stock, $0.01 par value per share | 5,553,696 shares |
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December 31, 2020 (Note 1) | March 31, 2021 (Unaudited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,325 | $ | 23,394 | ||||
Trade accounts receivable (net of allowances of $14,069 in 2020 and $13,225 in 2021) | 24,469 | 22,974 | ||||||
Unbilled revenue | 3,192 | 2,548 | ||||||
Other receivables (net of allowances of $124 in 2020 and $424 in 2021) | 1,122 | 1,006 | ||||||
Inventories (net of reserves of $1,499 in 2020 and $1,439 in 2021) | 495 | 588 | ||||||
Prepaid expenses | 6,847 | 7,597 | ||||||
Assets held for sale | 3,346 | — | ||||||
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Total current assets | 45,796 | 58,107 | ||||||
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Notes receivable (net of allowance of $461 in 2020 and $831 in 2021) | 721 | 696 | ||||||
Property and equipment (net of accumulated depreciation of $180,336 in 2020 and $183,136 in 2021) | 79,122 | 78,598 | ||||||
Operating lease right-of-use assets | 48,203 | 46,508 | ||||||
Financing lease right-of-use assets | 152 | 138 | ||||||
Broadcast licenses | 319,773 | 319,773 | ||||||
Goodwill | 23,757 | 23,757 | ||||||
Amortizable intangible assets (net of accumulated amortization of $58,897 in 2020 and $59,478 in 2021) | 4,017 | 3,563 | ||||||
Deferred financing costs | 213 | 187 | ||||||
Other assets | 2,817 | 2,627 | ||||||
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Total assets | $ | 524,571 | $ | 533,954 | ||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,006 | $ | 1,312 | ||||
Accrued expenses | 11,002 | 9,932 | ||||||
Accrued compensation and related expenses | 10,242 | 11,153 | ||||||
Accrued interest | 1,225 | 4,875 | ||||||
Contract liabilities | 11,652 | 12,600 | ||||||
Deferred rent income | 147 | 149 | ||||||
Income taxes payable | 563 | 584 | ||||||
Current portion of operating lease liabilities | 8,963 | 8,615 | ||||||
Current portion of financing lease liabilities | 60 | 60 | ||||||
Current portion of long-term debt | 5,000 | — | ||||||
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Total current liabilities | 50,860 | 49,280 | ||||||
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Long-term debt, less current portion | 213,764 | 225,143 | ||||||
Operating lease liabilities, less current portion | 47,740 | 46,058 | ||||||
Financing (capital) lease liabilities, less current portion | 107 | 94 | ||||||
Deferred income taxes | 68,883 | 69,071 | ||||||
Contract liabilities, long-term | 1,869 | 2,159 | ||||||
Deferred rent income, less current portion | 3,864 | 3,841 | ||||||
Other long-term liabilities | 2,205 | 2,236 | ||||||
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Total liabilities | 389,292 | 397,882 | ||||||
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Commitments and contingencies (Note 16) | ||||||||
Stockholders’ Equity: |
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Class A common stock, $0.01 par value; authorized 80,000,000 shares; 23,447,317 and 23,633,099 issued and 21,129,667 and 21,315,449 outstanding at December 31, 2020 and March 31, 2021, respectively | 227 | 229 | ||||||
Class B common stock, $0.01 par value; authorized 20,000,000 shares; 5,553,696 issued and outstanding at December 31, 2020 and March 31, 2021, respectively | 56 | 56 | ||||||
Additional paid-in capital | 247,025 | 247,493 | ||||||
Accumulated deficit | (78,023 | ) | (77,700 | ) | ||||
Treasury stock, at cost (2,317,650 shares at December 31, 2020 and March 31, 2021) | (34,006 | ) | (34,006 | ) | ||||
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Total stockholders’ equity | 135,279 | 136,072 | ||||||
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Total liabilities and stockholders’ equity | $ | 524,571 | $ | 533,954 | ||||
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December 31, 2020 (Note 1) | June 30, 2021 (Unaudited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,325 | $ | 19,858 | ||||
Trade accounts receivable (net of allowances of $14,069 in 2020 and $14,498 in 2021) | 24,469 | 24,568 | ||||||
Unbilled revenue | 3,192 | 2,639 | ||||||
Other receivables (net of allowances of $124 in 2020 and $455 in 2021) | 1,122 | 1,468 | ||||||
Inventories (net of reserves of $1,499 in 2020 and $1,508 in 2021) | 495 | 719 | ||||||
Prepaid expenses | 6,847 | 7,166 | ||||||
Assets held for sale | 3,346 | — | ||||||
Total current assets | 45,796 | 56,418 | ||||||
Notes receivable (net of allowance of $461 in 2020 and $815 in 2021) | 721 | 636 | ||||||
Property and equipment (net of accumulated depreciation of $180,336 in 2020 and $184,521 in 2021) | 79,122 | 79,415 | ||||||
Operating lease right-of-use | 48,203 | 44,926 | ||||||
Financing lease right-of-use | 152 | 124 | ||||||
Broadcast licenses | 319,773 | 320,008 | ||||||
Goodwill | 23,757 | 23,785 | ||||||
Amortizable intangible assets (net of accumulated amortization of $58,897 in 2020 and $58,476 in 2021) | 4,017 | 3,226 | ||||||
Deferred financing costs | 213 | 174 | ||||||
Other assets | 2,817 | 3,232 | ||||||
Total assets | $ | 524,571 | $ | 531,944 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,006 | $ | 2,357 | ||||
Accrued expenses | 11,002 | 10,667 | ||||||
Accrued compensation and related expenses | 10,242 | 11,139 | ||||||
Accrued interest | 1,225 | 1,227 | ||||||
Contract liabilities | 11,652 | 12,401 | ||||||
Deferred rent income | 147 | 143 | ||||||
Income taxes payable | 563 | 605 | ||||||
Current portion of operating lease liabilities | 8,963 | 8,768 | ||||||
Current portion of financing lease liabilities | 60 | 59 | ||||||
Current portion of long-term debt | 5,000 | — | ||||||
Total current liabilities | 50,860 | 47,366 | ||||||
Long-term debt, less current portion | 213,764 | 225,327 | ||||||
Operating lease liabilities, less current portion | 47,740 | 44,049 | ||||||
Financing (capital) lease liabilities, less current portion | 107 | 82 | ||||||
Deferred income taxes | 68,883 | 68,480 | ||||||
Contract liabilities, long-term | 1,869 | 2,167 | ||||||
Deferred rent income, less current portion | 3,864 | 3,818 | ||||||
Other long-term liabilities | 2,205 | 2,242 | ||||||
Total liabilities | 389,292 | 393,531 | ||||||
Commitments and contingencies (Note 14) | 0 | 0 | ||||||
Stockholders’ Equity: | ||||||||
Class A common stock, $0.01 par value; authorized 80,000,000 shares; 23,447,317 and 23,633,099 issued and 21,129,667 and 21,315,449 outstanding at December 31, 2020 and June 30, 2021, respectively | 227 | 229 | ||||||
Class B common stock, $0.01 par value; authorized 20,000,000 shares; 5,553,696 issued and outstanding at December 31, 2020 and June 30, 2021, respectively | 56 | 56 | ||||||
Additional paid-in capital | 247,025 | 247,577 | ||||||
Accumulated deficit | (78,023 | ) | (75,443 | ) | ||||
Treasury stock, at cost (2,317,650 shares at December 31, 2020 and June 30, 2021) | (34,006 | ) | (34,006 | ) | ||||
Total stockholders’ equity | 135,279 | 138,413 | ||||||
Total liabilities and stockholders’ equity | $ | 524,571 | $ | 531,944 | ||||
Three Months Ended | ||||||||
March 31, | ||||||||
2020 | 2021 | |||||||
Net broadcast revenue | $ | 45,180 | $ | 44,048 | ||||
Net digital media revenue | 9,104 | 9,619 | ||||||
Net publishing revenue | 3,966 | 5,686 | ||||||
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Total net revenue | 58,250 | 59,353 | ||||||
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Operating expenses: | ||||||||
Broadcast operating expenses, exclusive of depreciation and amortization shown below (including $431 and $443 for the three months ended March 31, 2020 and 2021, respectively, paid to related parties) | 37,327 | 33,343 | ||||||
Digital media operating expenses, exclusive of depreciation and amortization shown below | 8,326 | 8,673 | ||||||
Publishing operating expenses, exclusive of depreciation and amortization shown below | 5,062 | 5,205 | ||||||
Unallocated corporate expenses exclusive of depreciation and amortization shown below (including $180 and $3 for the three months ended March 31, 2020 and 2021, respectively, paid to related parties) | 4,210 | 4,288 | ||||||
Depreciation | 2,713 | 2,589 | ||||||
Amortization | 987 | 581 | ||||||
Change in the estimated fair value of contingent earn-out consideration | (5 | ) | — | |||||
Impairment of indefinite-lived long-term assets other than goodwill | 17,254 | — | ||||||
Impairment of goodwill | 307 | — | ||||||
Net (gain) loss on the disposition of assets | 79 | 318 | ||||||
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Total operating expenses | 76,260 | 54,997 | ||||||
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Operating income (loss) | (18,010 | ) | 4,356 | |||||
Other income (expense): | ||||||||
Interest income | — | 1 | ||||||
Interest expense | (4,032 | ) | (3,926 | ) | ||||
Gain on early retirement of long-term debt | 49 | — | ||||||
Net miscellaneous income and expenses | (52 | ) | 22 | |||||
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Net income (loss) before income taxes | (22,045 | ) | 453 | |||||
Provision for income taxes | 33,159 | 130 | ||||||
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Net income (loss) | $ | (55,204 | ) | $ | 323 | |||
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Basic earnings (loss) per share data: | ||||||||
Basic earnings (loss) per share Class A and Class B common stock | $ | (2.07 | ) | $ | 0.01 | |||
Diluted earnings (loss) per share data: | ||||||||
Diluted earnings (loss) per share Class A and Class B common stock | $ | (2.07 | ) | $ | 0.01 | |||
Basic weighted average Class A and Class B shares outstanding | 26,683,363 | 26,736,639 | ||||||
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Diluted weighted average Class A and Class B shares outstanding | 26,683,363 | 27,138,773 | ||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Net broadcast revenue | $ | 39,470 | $ | 46,783 | $ | 84,650 | $ | 90,831 | ||||||||
Net digital media revenue | 9,443 | 10,339 | 18,547 | 19,958 | ||||||||||||
Net publishing revenue | 3,958 | 6,660 | 7,924 | 12,346 | ||||||||||||
Total net revenue | 52,871 | 63,782 | 111,121 | 123,135 | ||||||||||||
Operating expenses: | ||||||||||||||||
Broadcast operating expenses, exclusive of depreciation and amortization shown below (including $435 and $446 for the three months ended June 30, 2020 and 2021, respectively, and $866 and $889 for the six months ended June 30, 2020 and 2021, respectively, paid to related parties) | 33,094 | 36,162 | 70,421 | 69,505 | ||||||||||||
Digital media operating expenses, exclusive of depreciation and amortization shown below | 7,653 | 8,338 | 15,979 | 17,011 | ||||||||||||
Publishing operating expenses, exclusive of depreciation and amortization shown below | 5,567 | 6,426 | 10,629 | 11,631 | ||||||||||||
Unallocated corporate expenses exclusive of depreciation and amortization shown below (including $0 and $2 for the three months ended June 30, 2020 and 2021, respectively, and $180 and $5 for the six months ended June 30, 2020 and 2021, respectively, paid to related parties) | 3,850 | 4,192 | 8,060 | 8,480 | ||||||||||||
Depreciation | 2,718 | 2,741 | 5,431 | 5,330 | ||||||||||||
Amortization | 840 | 545 | 1,827 | 1,126 | ||||||||||||
Change in the estimated fair value of contingent earn-out consideration | 3 | — | (2 | ) | — | |||||||||||
Impairment of indefinite-lived long-term assets other than goodwill | — | — | 17,254 | — | ||||||||||||
Impairment of goodwill | — | — | 307 | — | ||||||||||||
Net (gain) loss on the disposition of assets | 34 | (263 | ) | 113 | 55 | |||||||||||
Total operating expenses | 53,759 | 58,141 | 130,019 | 113,138 | ||||||||||||
Operating income (loss) | (888 | ) | 5,641 | (18,898 | ) | 9,997 | ||||||||||
Other income (expense): | ||||||||||||||||
Interest income | — | — | — | 1 | ||||||||||||
Interest expense | (4,013 | ) | (3,935 | ) | (8,045 | ) | (7,861 | ) | ||||||||
Gain on early retirement of long-term debt | — | — | 49 | — | ||||||||||||
Net miscellaneous income and (expenses) | 6 | 63 | (46 | ) | 85 | |||||||||||
Net income (loss) before income taxes | (4,895 | ) | 1,769 | (26,940 | ) | 2,222 | ||||||||||
Provision for (benefit from) income taxes | (2,380 | ) | (488 | ) | 30,779 | (358 | ) | |||||||||
Net income (loss) | $ | (2,515 | ) | $ | 2,257 | $ | (57,719 | ) | $ | 2,580 | ||||||
Basic income (loss) per share data: | ||||||||||||||||
Basic income (loss) per share | $ | (0.09 | ) | $ | 0.08 | $ | (2.16 | ) | $ | 0.10 | ||||||
Diluted income (loss) per share data: | ||||||||||||||||
Diluted income (loss) per share | $ | (0.09 | ) | $ | 0.08 | $ | (2.16 | ) | $ | 0.10 | ||||||
Basic weighted average shares outstanding | 26,683,363 | 26,869,145 | 26,683,363 | 26,802,892 | ||||||||||||
Diluted weighted average shares outstanding | 26,683,363 | 27,232,423 | 26,683,363 | 27,185,598 | ||||||||||||
Class A | Class B | |||||||||||||||||||||||||||||||
Common Stock | Common Stock | Additional | ||||||||||||||||||||||||||||||
Paid-In | Accumulated | Treasury | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Stock | Total | |||||||||||||||||||||||||
Stockholders’ equity, December 31, 2019 | 23,447,317 | $ | 227 | 5,553,696 | $ | 56 | $ | 246,680 | $ | (23,294 | ) | $ | (34,006 | ) | $ | 189,663 | ||||||||||||||||
Stock-based compensation | — | — | — | — | 103 | — | — | 103 | ||||||||||||||||||||||||
Cash distributions | — | — | — | — | — | (667 | ) | — | (667 | ) | ||||||||||||||||||||||
Net loss | — | — | — | — | — | (55,204 | ) | — | (55,204 | ) | ||||||||||||||||||||||
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Stockholders’ equity, March 31, 2020 | 23,447,317 | $ | 227 | 5,553,696 | $ | 56 | $ | 246,783 | $ | (79,165 | ) | $ | (34,006 | ) | $ | 133,895 | ||||||||||||||||
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Distributions per share | $ | 0.025 | $ | 0.025 | ||||||||||||||||||||||||||||
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Class A | Class B | |||||||||||||||||||||||||||||||
Common Stock | Common Stock | Additional | ||||||||||||||||||||||||||||||
Paid-In | Accumulated | Treasury | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Stock | Total | |||||||||||||||||||||||||
Stockholders’ equity, December 31, 2020 | 23,447,317 | $ | 227 | 5,553,696 | $ | 56 | $ | 247,025 | $ | (78,023 | ) | $ | (34,006 | ) | $ | 135,279 | ||||||||||||||||
Stock-based compensation | — | — | — | — | 78 | — | — | 78 | ||||||||||||||||||||||||
Options exercised | 185,782 | 2 | — | — | 390 | — | — | 392 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 323 | — | 323 | ||||||||||||||||||||||||
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Stockholders’ equity, March 31, 2021 | 23,633,099 | $ | 229 | 5,553,696 | $ | 56 | $ | 247,493 | $ | (77,700 | ) | $ | (34,006 | ) | $ | 136,072 | ||||||||||||||||
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Class A Common Stock | Class B Common Stock | Additional | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Paid-In Capital | Accumulated Deficit | Treasury Stock | Total | |||||||||||||||||||||||||
Stockholders’ equity, December 31, 2019 | 23,447,317 | $ | 227 | 5,553,696 | $ | 56 | $ | 246,680 | $ | (23,294 | ) | $ | (34,006 | ) | $ | 189,663 | ||||||||||||||||
Stock-based compensation | — | — | — | — | 103 | — | — | 103 | ||||||||||||||||||||||||
Cash distributions | — | — | — | — | — | (667 | ) | — | (667 | ) | ||||||||||||||||||||||
Net loss | — | — | — | — | — | (55,204 | ) | — | (55,204 | ) | ||||||||||||||||||||||
Stockholders’ equity, March 31, 2020 | 23,447,317 | $ | 227 | 5,553,696 | $ | 56 | $ | 246,783 | $ | (79,165 | ) | $ | (34,006 | ) | $ | 133,895 | ||||||||||||||||
Distributions per share | $ | 0.025 | $ | 0.025 | ||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 96 | — | — | 96 | ||||||||||||||||||||||||
Net loss | — | — | — | — | — | (2,515 | ) | — | (2,515 | ) | ||||||||||||||||||||||
Stockholders’ equity, June 30, 2020 | 23,447,317 | $ | 227 | 5,553,696 | $ | 56 | $ | 246,879 | $ | (81,680 | ) | $ | (34,006 | ) | $ | 131,476 | ||||||||||||||||
Class A Common Stock | Class B Common Stock | Additional | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Paid-In Capital | Accumulated Deficit | Treasury Stock | Total | |||||||||||||||||||||||||
Stockholders’ equity, December 31, 2020 | 23,447,317 | $ | 227 | 5,553,696 | $ | 56 | $ | 247,025 | $ | (78,023 | ) | $ | (34,006 | ) | $ | 135,279 | ||||||||||||||||
Stock-based compensation | — | — | — | — | 78 | — | — | 78 | ||||||||||||||||||||||||
Options exercised | 185,782 | 2 | — | — | 390 | — | — | 392 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 323 | — | 323 | ||||||||||||||||||||||||
Stockholders’ equity, March 31, 2021 | 23,633,099 | $ | 229 | 5,553,696 | $ | 56 | $ | 247,493 | $ | (77,700 | ) | $ | (34,006 | ) | $ | 136,072 | ||||||||||||||||
Stock-based compensation | — | — | — | — | 84 | — | — | 84 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 2,257 | — | 2,257 | ||||||||||||||||||||||||
Stockholders’ equity, June 30, 2021 | 23,633,099 | $ | 229 | 5,553,696 | $ | 56 | $ | 247,577 | $ | (75,443 | ) | $ | (34,006 | ) | $ | 138,413 | ||||||||||||||||
Three Months Ended March 31, | ||||||||
2020 | 2021 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | (55,204 | ) | $ | 323 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Non-cash stock-based compensation | 103 | 78 | ||||||
Depreciation and amortization | 3,700 | 3,170 | ||||||
Amortization of deferred financing costs | 227 | 213 | ||||||
Non-cash lease expense | 2,252 | 2,161 | ||||||
Provision for bad debts | 1,900 | (295 | ) | |||||
Deferred income taxes | 33,084 | 188 | ||||||
Change in the estimated fair value of contingent earn-out consideration | (5 | ) | — | |||||
Impairment of indefinite-lived long-term assets other than goodwill | 17,254 | — | ||||||
Impairment of goodwill | 307 | — | ||||||
Gain on early retirement of long-term debt | (49 | ) | — | |||||
Net (gain) loss on the disposition of assets | 79 | 318 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable and unbilled revenue | 2,419 | 2,549 | ||||||
Inventories | 70 | (93 | ) | |||||
Prepaid expenses and other current assets | (587 | ) | (750 | ) | ||||
Accounts payable and accrued expenses | 4,478 | 2,490 | ||||||
Operating lease liabilities | (2,407 | ) | (2,497 | ) | ||||
Contract liabilities | 133 | 1,122 | ||||||
Deferred rent income | (84 | ) | 170 | |||||
Other liabilities | 6 | 29 | ||||||
Income taxes payable | 57 | 21 | ||||||
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Net cash provided by operating activities | 7,733 | 9,197 | ||||||
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INVESTING ACTIVITIES | ||||||||
Cash paid for capital expenditures net of tenant improvement allowances | (1,587 | ) | (1,859 | ) | ||||
Capital expenditures reimbursable under tenant improvement allowances and trade agreements | (84 | ) | — | |||||
Deposit on broadcast assets and radio station acquisitions | — | (100 | ) | |||||
Proceeds from sale of assets | 2 | 3,501 | ||||||
Other | (428 | ) | (238 | ) | ||||
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Net cash provided by (used in) investing activities | (2,097 | ) | 1,304 | |||||
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FINANCING ACTIVITIES | ||||||||
Payments to repurchase 6.75% Senior Secured Notes | (3,392 | ) | — | |||||
Proceeds from borrowings under ABL Facility | 33,319 | 16 | ||||||
Payments on ABL Facility | (31,745 | ) | (5,016 | ) | ||||
Proceeds from borrowings under PPP Loans | — | 11,195 | ||||||
Payments of debt issuance costs | (1 | ) | (3 | ) | ||||
Proceeds from the exercise of stock options | — | 392 | ||||||
Payments on financing lease liabilities | (18 | ) | (16 | ) | ||||
Payment of cash distribution on common stock | (667 | ) | — | |||||
Book overdraft | (1,885 | ) | — | |||||
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Net cash provided by (used in) financing activities | (4,389 | ) | 6,568 | |||||
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Net increase in cash and cash equivalents | 1,247 | 17,069 | ||||||
Cash and cash equivalents at beginning of year | 6 | 6,325 | ||||||
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Cash and cash equivalents at end of period | $ | 1,253 | $ | 23,394 | ||||
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Six Months Ended June 30, | ||||||||
2020 | 2021 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | (57,719 | ) | $ | 2,580 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Non-cash stock-based compensation | 199 | 162 | ||||||
Depreciation and amortization | 7,258 | 6,456 | ||||||
Amortization of deferred financing costs | 461 | 426 | ||||||
Non-cash lease expense | 4,464 | 4,348 | ||||||
Provision for bad debts | 3,621 | (325 | ) | |||||
Deferred income taxes | 30,629 | (403 | ) | |||||
Change in the estimated fair value of contingent earn-out consideration | (2 | ) | — | |||||
Impairment of indefinite-lived long-term assets other than goodwill | 17,254 | — | ||||||
Impairment of goodwill | 307 | — | ||||||
Gain on early retirement of long-term debt | (49 | ) | — | |||||
Net (gain) loss on the disposition of assets | 113 | 55 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable and unbilled revenue | 5,530 | 421 | ||||||
Inventories | 10 | (224 | ) | |||||
Prepaid expenses and other current assets | 97 | (319 | ) | |||||
Accounts payable and accrued expenses | 1,720 | 453 | ||||||
Operating leas e liabilities | (3,403 | ) | (4,931 | ) | ||||
Contract liabilities | 7,267 | 1,310 | ||||||
Deferred rent income | (151 | ) | 111 | |||||
Other liabilities | 1,204 | 35 | ||||||
Income taxes payable | 155 | 42 | ||||||
Net cash provided by operating activities | 18,965 | 10,197 | ||||||
INVESTING ACTIVITIES | ||||||||
Cash paid for capital expenditures net of tenant improvement allowances | (2,525 | ) | (3,994 | ) | ||||
Capital expenditures reimbursable under tenant improvement allowances and trade agreements | (94 | ) | (19 | ) | ||||
Deposit on broadcast assets and radio station acquisitions | — | (100 | ) | |||||
Purchases of broadcast assets and radio stations | — | (600 | ) | |||||
Purchases of digital media businesses and assets | — | (1,300 | ) | |||||
Proceeds from sale of assets | 188 | 3,627 | ||||||
Proceeds from the cash surrender value of life insurance policies | 2,363 | — | ||||||
Other | (384 | ) | (814 | ) | ||||
Net cash used in investing activities | (452 | ) | (3,200 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Payments to repurchase 6.75% Senior Secured Notes | (3,392 | ) | 0 | |||||
Proceeds from borrowings under ABL Facility | 38,349 | 16 | ||||||
Payments on ABL Facility | (31,775 | ) | (5,016 | ) | ||||
Proceeds from borrowings under PPP Loans | — | 11,195 | ||||||
Payments of debt issuance costs | (66 | ) | (19 | ) | ||||
Proceeds from the exercise of stock options | — | 392 | ||||||
Payments on financing lease liabilities | (35 | ) | (32 | ) | ||||
Payment of cash distribution on common stock | (667 | ) | — | |||||
Book overdraft | (1,885 | ) | — | |||||
Net cash provided by financing activities | 529 | 6,536 | ||||||
Net increase in cash and cash equivalents | 19,042 | 13,533 | ||||||
Cash and cash equivalents at beginning of year | 6 | 6,325 | ||||||
Cash and cash equivalents at end of period | $ | 19,048 | $ | 19,858 | ||||
Three Months Ended March 31, | ||||||||
2020 | 2021 | |||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Cash paid for interest, net of capitalized interest | $ | 163 | $ | 51 | ||||
Cash paid for interest on finance lease liabilities | $ | 2 | $ | 2 | ||||
Net cash paid for (received from) income taxes | $ | 18 | $ | (79 | ) | |||
Other supplemental disclosures of cash flow information: | ||||||||
Barter revenue | $ | 1,192 | $ | 391 | ||||
Barter expense | $ | 1,034 | $ | 373 | ||||
Non-cash investing and financing activities: | ||||||||
Capital expenditures reimbursable under tenant improvement allowances | $ | 84 | $ | — | ||||
Right-of-use assets acquired through operating leases | $ | 575 | $ | 553 | ||||
Right-of-use assets acquired through financing leases | $ | — | $ | 2 | ||||
Non-cash capital expenditures for property & equipment acquired under trade agreements | $ | 4 | $ | 6 | ||||
Net assets and liabilities assumed in a non-cash acquisition | $ | — | 127 | |||||
Estimated present value of contingent-earn out consideration | $ | — | $ | 11 |
Six Months June 30, | ||||||||
2020 | 2021 | |||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Cash paid for interest, net of capitalized interest | $ | 7,600 | $ | 7,391 | ||||
Cash paid for interest on finance lease liabilities | $ | 4 | $ | 4 | ||||
Net cash paid for (received from) income taxes | $ | (5 | ) | $ | 3 | |||
Other supplemental disclosures of cash flow information: | ||||||||
Barter revenue | $ | 1,705 | $ | 1,065 | ||||
Barter expense | $ | 1,558 | $ | 1,092 | ||||
Non-cash investing and financing activities: | ||||||||
Capital expenditures reimbursable under tenant improvement allowances | $ | 94 | $ | 19 | ||||
Right-of-use | $ | 2,655 | $ | 1,957 | ||||
Right-of-use | $ | — | $ | 4 | ||||
Non-cash capital expenditures for property & equipment acquired under trade agreements | $ | 4 | $ | 27 | ||||
Net assets and liabilities assumed in a non-cash acquisition | $ | — | $ | 129 | ||||
Estimated present value of contingent-earn out consideration | $ | — | $ | 11 |
Certain reclassifications have been made to the prior year financial statements to conform to the presentation in the current year, which had no impact on the previously reported financial statements.
Acquisition Date | Description | Total Consideration | ||||
(Dollars in thousands) | ||||||
June 1, 2021 | KDIA-AM and KDYA-AM San Francisco, California (business acquisition) | $ | 600 | |||
April 28, 2021 | Centerline New Media (business acquisition) | 1,300 | ||||
March 8, 2021 | Triple Threat Trader (asset acquisition) | 127 | ||||
$ | 2,027 | |||||
Description | Total Consideration | |||
(Dollars in thousands) | ||||
Cash payments made upon closing | $ | 1,900 | ||
Deferred payments | 116 | |||
Present value of estimated fair value of contingent earn-out consideration | 11 | |||
Total purchase price consideration | $ | 2,027 | ||
Net Broadcast Assets Acquired | Net Digital Assets Acquired | Total Net Assets | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Assets | ||||||||||||||
Property and equipment | $ | 361 | $ | 1,080 | $ | 1,441 | ||||||||
Broadcast licenses | 235 | 0 | 235 | |||||||||||
Goodwill | 4 | 24 | 28 | |||||||||||
Customer lists and contracts | 0 | 314 | 314 | |||||||||||
Domain and brand names | 0 | 22 | 22 | |||||||||||
$ | 600 | $ | 1,440 | $ | 2,040 | |||||||||
Liabilities | ||||||||||||||
Contract liabilities, short-term | 0 | (13 | ) | (13 | ) | |||||||||
$ | 600 | $ | 1,427 | $ | 2,027 | |||||||||
RECOGNITION
Short- Term | Long- Term | |||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period January 1, 2021 | $ | 11,652 | $ | 1,869 | ||||
Revenue recognized during the period that was included in the beginning balance of contract liabilities | (3,814 | ) | — | |||||
Additional amounts recognized during the period | 7,087 | 524 | ||||||
Revenue recognized during the period that was recorded during the period | (2,559 | ) | — | |||||
Transfers | 234 | (234 | ) | |||||
|
|
|
| |||||
Balance, end of period March 31, 2021 | $ | 12,600 | 2,159 | |||||
|
|
|
| |||||
Amount refundable at beginning of period | $ | 11,607 | 1,869 | |||||
Amount refundable at end of period | $ | 12,588 | 2,159 |
Short-Term | Long-Term | |||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period January 1, 2021 | $ | 11,652 | $ | 1,869 | ||||
Revenue recognized during the period that was included in the beginning balance of contract liabilities | (6,292 | ) | — | |||||
Additional amounts recognized during the period | 13,531 | 756 | ||||||
Revenue recognized during the period that was recorded during the period | (6,948 | ) | — | |||||
Transfers | 458 | (458 | ) | |||||
Balance, end of period June 30, 2021 | $ | 12,401 | $ | 2,167 | ||||
Amount refundable at beginning of period | $ | 11,607 | $ | 1,869 | ||||
Amount refundable at end of period | $ | 12,389 | $ | 2,167 |
Amount | ||||
For the Twelve Months Ended March 31, | (Dollars in thousands) | |||
2022 | $ | 12,600 | ||
2023 | 1,365 | |||
2024 | 472 | |||
2025 | 184 | |||
2026 | 55 | |||
Thereafter | 83 | |||
|
| |||
$ | 14,759 | |||
|
|
Amount | ||||
For the Twelve Months Ended June 30, | (Dollars in thousands) | |||
2022 | $ | 12,401 | ||
2023 | 1,225 | |||
2024 | 608 | |||
2025 | 209 | |||
2026 | 68 | |||
Thereafter | 57 | |||
$ | 14,568 | |||
The length of our typical
Like former revenue recognition guidance, we continue to
significantly.
Broadcast digital advertising revenue consists of local digital advertising, such as the sale of banner advertisements on our owned and operated websites, the sale of advertisements on our own and operated mobile applications, and advertisements in digital newsletters that we produce, as well as national digital advertising, or the sale of custom digital advertising solutions, such as web pages and social media campaigns, that we offer to our customers. Advertising revenue is recorded on a gross basis unless an agency represents the advertiser, in which case, revenue is reported net of the commission retained by the agency.
responsible for delivering the campaign results to our customer with or without the third-party. We are responsible for any payments due to the third-party regardless of the campaign results and without regard to the status of payment from our customer. We have discretion in setting the price to our customer without input or approval from the third-party. Accordingly, revenue is reported gross, as principal, as the performance obligation is delivered, which represents the point in time that control is transferred to the customer thereby completing our performance obligation.
Three Months Ended | ||||||||
March 31, | ||||||||
2020 | 2021 | |||||||
Net broadcast barter revenue | $ | 1,166 | $ | 391 | ||||
Net digital media barter revenue | — | — | ||||||
Net publishing barter revenue | 26 | — | ||||||
Net broadcast barter expense | $ | 1,034 | $ | 373 | ||||
Net digital media barter expense | — | — | ||||||
Net publishing barter expense | — | — |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net broadcast barter revenue | $ | 508 | $ | 674 | $ | 1,674 | $ | 1,065 | ||||||||
Net digital media barter revenue | — | — | — | — | ||||||||||||
Net publishing barter revenue | 5 | — | 31 | — | ||||||||||||
Net broadcast barter expense | $ | 524 | $ | 712 | $ | 1,558 | $ | 1,085 | ||||||||
Net digital media barter expense | — | — | — | — | ||||||||||||
Net publishing barter expense | — | 7 | — | 7 |
Three Months Ended March 31, 2021 | ||||||||||||||||
Broadcast | Digital Media | Publishing | Consolidated | |||||||||||||
(dollars in thousands) | ||||||||||||||||
By Source of Revenue: | ||||||||||||||||
Block Programming—National | $ | 11,461 | $ | — | $ | — | $ | 11,461 | ||||||||
Block Programming—Local | 5,956 | — | — | 5,956 | ||||||||||||
Spot Advertising—National | 3,660 | — | — | 3,660 | ||||||||||||
Spot Advertising—Local | 8,895 | — | — | 8,895 | ||||||||||||
Infomercials | 237 | — | — | 237 | ||||||||||||
Network | 4,871 | — | — | 4,871 | ||||||||||||
Digital Advertising | 5,781 | 4,413 | 62 | 10,256 | ||||||||||||
Digital Streaming | 853 | 844 | — | 1,697 | ||||||||||||
Digital Downloads and eBooks | 60 | 1,479 | 339 | 1,878 | ||||||||||||
Subscriptions | 286 | 2,773 | 158 | 3,217 | ||||||||||||
Book Sales and e-commerce, net of estimated sales returns and allowances | 89 | 31 | 3,208 | 3,328 | ||||||||||||
Self-Publishing Fees | — | — | 1,624 | 1,624 | ||||||||||||
Print Advertising | — | — | 68 | 68 | ||||||||||||
Other Revenues | 1,899 | 79 | 227 | 2,205 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 44,048 | $ | 9,619 | $ | 5,686 | $ | 59,353 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Timing of Revenue Recognition | ||||||||||||||||
Point in Time | $ | 43,425 | $ | 9,619 | 5,686 | $ | 58,730 | |||||||||
Rental Income (1) | 623 | — | — | 623 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 44,048 | $ | 9,619 | $ | 5,686 | $ | 59,353 | |||||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020 | ||||||||||||||||
Broadcast | Digital Media | Publishing | Consolidated | |||||||||||||
(dollars in thousands) | ||||||||||||||||
By Source of Revenue: | ||||||||||||||||
Block Programming—National | $ | 12,034 | $ | — | $ | — | $ | 12,034 | ||||||||
Block Programming—Local | 6,808 | — | — | 6,808 | ||||||||||||
Spot Advertising—National | 3,957 | — | — | 3,957 | ||||||||||||
Spot Advertising—Local | 11,357 | — | — | 11,357 | ||||||||||||
Infomercials | 308 | — | — | 308 | ||||||||||||
Network | 4,388 | — | — | 4,388 | ||||||||||||
Digital Advertising | 3,326 | 4,713 | 99 | 8,138 | ||||||||||||
Digital Streaming | 608 | 915 | — | 1,523 | ||||||||||||
Digital Downloads and eBooks | — | 1,245 | 254 | 1,499 | ||||||||||||
Subscriptions | 282 | 2,135 | 177 | 2,594 | ||||||||||||
Book Sales and e-commerce, net of estimated sales returns and allowances | 76 | 28 | 1,723 | 1,827 | ||||||||||||
Self-Publishing Fees | — | — | 1,402 | 1,402 | ||||||||||||
Print Advertising | 1 | — | 102 | 103 | ||||||||||||
Other Revenues | 2,035 | 68 | 209 | 2,312 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 45,180 | $ | 9,104 | $ | 3,966 | $ | 58,250 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Timing of Revenue Recognition | ||||||||||||||||
Point in Time | $ | 44,563 | $ | 9,104 | $ | 3,966 | $ | 57,633 | ||||||||
Rental Income (1) | 617 | — | — | 617 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 45,180 | $ | 9,104 | $ | 3,966 | $ | 58,250 | |||||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2021 | ||||||||||||||||
Broadcast | Digital Media | Publishing | Consolidated | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
By Source of Revenue: | ||||||||||||||||
Block Programming—National | $ | 23,322 | $ | — | $ | — | $ | 23,322 | ||||||||
Block Programming—Local | 11,773 | — | — | 11,773 | ||||||||||||
Spot Advertising—National | 7,118 | — | — | 7,118 | ||||||||||||
Spot Advertising—Local | 19,441 | — | — | 19,441 | ||||||||||||
Infomercials | 462 | — | — | 462 | ||||||||||||
Network | 9,821 | — | — | 9,821 | ||||||||||||
Digital Advertising | 11,745 | 8,806 | 132 | 20,683 | ||||||||||||
Digital Streaming | 2,093 | 1,706 | — | 3,799 | ||||||||||||
Digital Downloads and eBooks | 200 | 3,173 | 792 | 4,165 | ||||||||||||
Subscriptions | 562 | 6,072 | 262 | 6,896 | ||||||||||||
Book Sales and e-commerce, net of estimated sales returns and allowances | 197 | 98 | 7,502 | 7,797 | ||||||||||||
Self-Publishing Fees | — | — | 3,174 | 3,174 | ||||||||||||
Print Advertising | — | — | 122 | 122 | ||||||||||||
Other Revenues | 4,097 | 103 | 362 | 4,562 | ||||||||||||
$ | 90,831 | $ | 19,958 | $ | 12,346 | $ | 123,135 | |||||||||
Timing of Revenue Recognition | ||||||||||||||||
Point in Time | $ | 89,583 | $ | 19,958 | $ | 12,346 | $ | 121,887 | ||||||||
Rental Income (1) | 1,248 | — | — | 1,248 | ||||||||||||
$ | 90,831 | $ | 19,958 | $ | 12,346 | $ | 123,135 | |||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||
Broadcast | Digital Media | Publishing | Consolidated | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
By Source of Revenue: | ||||||||||||||||
Block Programming—National | $ | 23,804 | $ | — | $ | — | $ | 23,804 | ||||||||
Block Programming—Local | 12,440 | — | — | 12,440 | ||||||||||||
Spot Advertising—National | 6,544 | — | — | 6,544 | ||||||||||||
Spot Advertising—Local | 19,145 | — | — | 19,145 | ||||||||||||
Infomercials | 536 | — | — | 536 | ||||||||||||
Network | 8,614 | — | — | 8,614 | ||||||||||||
Digital Advertising | 6,483 | 9,260 | 151 | 15,894 | ||||||||||||
Digital Streaming | 1,229 | 1,768 | — | 2,997 | ||||||||||||
Digital Downloads and eBooks | — | 3,047 | 504 | 3,551 | ||||||||||||
Subscriptions | 573 | 4,292 | 351 | 5,216 | ||||||||||||
Book Sales and e-commerce, net of estimated sales returns and allowances | 1,663 | 55 | 3,861 | 5,579 | ||||||||||||
Self-Publishing Fees | — | — | 2,453 | 2,453 | ||||||||||||
Print Advertising | 1 | — | 193 | 194 | ||||||||||||
Other Revenues | 3,618 | 125 | 411 | 4,154 | ||||||||||||
$ | 84,650 | $ | 18,547 | $ | 7,924 | $ | 111,121 | |||||||||
Timing of Revenue Recognition | ||||||||||||||||
Point in Time | $ | 83,379 | $ | 18,547 | $ | 7,924 | $ | 109,850 | ||||||||
Rental Income (1) | 1,271 | — | — | 1,271 | ||||||||||||
$ | 84,650 | $ | 18,547 | $ | 7,924 | $ | 111,121 | |||||||||
(1) | Rental income is not applicable to ASC Topic 606, but shown for the purpose of identifying each revenue source presented in total revenue on our Condensed Consolidated Financial Statements within this report on Form 10-Q. |
December 31, 2020 | March 31, 2021 | |||||||
(Dollars in thousands) | ||||||||
Book inventories | $ | 1,994 | $ | 2,027 | ||||
Reserve for obsolescence | (1,499 | ) | (1,439 | ) | ||||
|
|
|
| |||||
Inventory, net— | $ | 495 | $ | 588 | ||||
|
|
|
|
December 31, 2020 | June 30, 2021 | |||||||
(Dollars in thousands) | ||||||||
Book inventories | $ | 1,994 | $ | 2,227 | ||||
Reserve for obsolescence | (1,499 | ) | (1,508 | ) | ||||
Inventory, net— | $ | 495 | $ | 719 | ||||
As of December 31, 2020 | As of March 31, 2021 | |||||||
(Dollars in thousands) | ||||||||
Land | $ | 30,254 | $ | 30,254 | ||||
Buildings | 28,922 | 28,993 | ||||||
Office furnishings and equipment | 36,875 | 37,289 | ||||||
Antennae, towers and transmitting equipment | 78,057 | 78,152 | ||||||
Studio, production and mobile equipment | 29,023 | 29,389 | ||||||
Computer software and website development costs | 33,928 | 34,085 | ||||||
Record and tape libraries | 17 | 17 | ||||||
Automobiles | 1,514 | 1,514 | ||||||
Leasehold improvements | 18,187 | 18,208 | ||||||
Construction-in-progress | 2,681 | 3,833 | ||||||
|
|
|
| |||||
$ | 259,458 | $ | 261,734 | |||||
Less accumulated depreciation | (180,336 | ) | (183,136 | ) | ||||
|
|
|
| |||||
$ | 79,122 | $ | 78,598 | |||||
|
|
|
|
December 31, 2020 | June 30, 2021 | |||||||
(Dollars in thousands) | ||||||||
Land | $ | 30,254 | $ | 30,254 | ||||
Buildings | 28,922 | 28,971 | ||||||
Office furnishings and equipment | 36,875 | 37,229 | ||||||
Antennae, towers and transmitting equipment | 78,057 | 78,549 | ||||||
Studio, production, and mobile equipment | 29,023 | 29,303 | ||||||
Computer software and website development costs | 33,928 | 35,258 | ||||||
Record and tape libraries | 17 | — | ||||||
Automobiles | 1,514 | 1,514 | ||||||
Leasehold improvements | 18,187 | 18,546 | ||||||
Construction-in-progress | 2,681 | 4,312 | ||||||
$ | 259,458 | $ | 263,936 | |||||
Less accumulated depreciation | (180,336 | ) | (184,521 | ) | ||||
$ | 79,122 | $ | 79,415 | |||||
significant unobservable inputs that reflect our own assumptions about the estimates that market participants would use in measuring fair value, including assumptions about risk. If actual future results are less favorable than the
March 31, 2021 | ||||||||||||
(Dollars in thousands) | ||||||||||||
Related Party | Other | Total | ||||||||||
Operating Leases | ||||||||||||
Operating leases ROU assets | $ | 6,642 | $ | 39,866 | $ | 46,508 | ||||||
Operating lease liabilities (current) | $ | 938 | $ | 7,677 | $ | 8,615 | ||||||
Operating lease liabilities (non-current) | 5,860 | 40,198 | 46,058 | |||||||||
|
|
|
|
|
| |||||||
Total operating lease liabilities | $ | 6,798 | $ | 47,875 | $ | 54,673 | ||||||
|
|
|
|
|
|
June 30, 2021 | ||||||||||||
(Dollars in thousands) | ||||||||||||
Operating Leases | Related Party | Other | Total | |||||||||
Operating leases ROU assets | $ | 6,363 | $ | 38,563 | $ | 44,926 | ||||||
Operating lease liabilities (current) | $ | 954 | $ | 7,814 | $ | 8,768 | ||||||
Operating lease liabilities (non-current) | 5,577 | 38,472 | 44,049 | |||||||||
Total operating lease liabilities | $ | 6,531 | $ | 46,286 | $ | 52,817 | ||||||
Weighted Average Remaining Lease Term | ||||
| ||||
Operating leases | 7.9 years | |||
Finance leases | ||||
Weighted Average Discount Rate | ||||
Operating leases | 7.95 | % | ||
Finance leases | % |
Three Months Ended March 31, 2021 | ||||
(Dollars in thousands) | ||||
Amortization of finance lease ROU Assets | $ | 16 | ||
Interest on finance lease liabilities | 2 | |||
|
| |||
Finance lease expense | 18 | |||
Operating lease expense | 3,214 | |||
Variable lease expense | 190 | |||
Short-term lease expense | 157 | |||
|
| |||
Total lease expense | $ | 3,579 | ||
|
|
Six Months Ended June 30, 2021 | ||||
(Dollars in thousands) | ||||
Amortization of finance lease ROU Assets | $ | 32 | ||
Interest on finance lease liabilities | 4 | |||
Finance lease expense | 36 | |||
Operating lease expense | 6,438 | |||
Variable lease expense | 310 | |||
Short-term lease expense | 352 | |||
Total lease expense | $ | 7,136 | ||
Three Months Ended March 31, 2021 | ||||
(Dollars in thousands) | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 3,569 | ||
Operating cash flows from finance leases | 1 | |||
Financing cash flows from finance leases | 16 | |||
Leased assets obtained in exchange for new operating lease liabilities | $ | 553 | ||
Leased assets obtained in exchange for new finance lease liabilities | 2 |
Six Months Ended June 30, 2021 | ||||
(Dollars in thousands) | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 7,097 | ||
Operating cash flows from finance leases | 2 | |||
Financing cash flows from finance leases | 32 | |||
Leased assets obtained in exchange for new operating lease liabilities | $ | 1,957 | ||
Leased assets obtained in exchange for new finance lease liabilities | 4 |
Future minimum lease | Operating Leases | |||||||||||||||||||
Related Party | Other | Total | Finance Leases | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2021 (Apr-Dec) | $ | 1,466 | $ | 11,042 | $ | 12,508 | $ | 65 | $ | 12,573 | ||||||||||
2022 | 1,620 | 10,744 | 12,364 | 57 | 12,421 | |||||||||||||||
2023 | 1,018 | 9,209 | 10,227 | 31 | 10,258 | |||||||||||||||
2024 | 1,014 | 7,030 | 8,044 | 12 | 8,056 | |||||||||||||||
2025 | 1,043 | 5,928 | 6,971 | 4 | 6,975 | |||||||||||||||
Thereafter | 3,797 | 24,763 | 28,560 | — | 28,560 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Undiscounted Cash Flows | $ | 9,958 | $ | 68,716 | $ | 78,674 | $ | 169 | $ | 78,843 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less: imputed interest | (3,160 | ) | (20,841 | ) | (24,001 | ) | (15 | ) | (24,016 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 6,798 | $ | 47,875 | $ | 54,673 | $ | 154 | $ | 54,827 | ||||||||||
|
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|
|
|
|
|
|
| |||||||||||
Reconciliation to lease liabilities: | ||||||||||||||||||||
Lease liabilities—current | $ | 938 | $ | 7,677 | $ | 8,615 | $ | 60 | $ | 8,675 | ||||||||||
Lease liabilities—long-term | 5,860 | 40,198 | 46,058 | 94 | 46,152 | |||||||||||||||
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|
| |||||||||||
Total Lease Liabilities | $ | 6,798 | $ | 47,875 | $ | 54,673 | $ | 154 | $ | 54,827 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Operating Leases | ||||||||||||||||||||
Related Party | Other | Total | Finance Leases | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2021 (July-Dec) | $ | 1,461 | $ | 11,009 | $ | 12,470 | $ | 65 | $ | 12,535 | ||||||||||
2022 | 1,470 | 10,874 | 12,344 | 51 | 12,395 | |||||||||||||||
2023 | 1,017 | 8,817 | 9,834 | 25 | 9,859 | |||||||||||||||
2024 | 1,021 | 6,890 | 7,911 | 10 | 7,921 | |||||||||||||||
2025 | 1,037 | 5,937 | 6,974 | 1 | 6,975 | |||||||||||||||
Thereafter | 3,545 | 22,222 | 25,767 | 0 | 25,767 | |||||||||||||||
Undiscounted Cash Flows | $ | 9,551 | $ | 65,749 | $ | 75,300 | $ | 152 | $ | 75,452 | ||||||||||
Less: imputed interest | (3,020 | ) | (19,463 | ) | (22,483 | ) | (11 | ) | (22,494 | ) | ||||||||||
Total | $ | 6,531 | $ | 46,286 | $ | 52,817 | $ | 141 | $ | 52,958 | ||||||||||
Reconciliation to lease liabilities: | ||||||||||||||||||||
Lease liabilities—current | $ | 954 | $ | 7,814 | $ | 8,768 | $ | 59 | $ | 8,827 | ||||||||||
Lease liabilities—long-term | 5,577 | 38,472 | 44,049 | 82 | 44,131 | |||||||||||||||
Total Lease Liabilities | $ | 6,531 | $ | 46,286 | $ | 52,817 | $ | 141 | $ | 52,958 | ||||||||||
| Twelve Months Ended December 31, 2020 | Three Months Ended March 31, 2021 | ||||||
(Dollars in thousands) | ||||||||
Balance before cumulative loss on impairment, beginning of period | $ | 441,143 | $ | 440,052 | ||||
Accumulated loss on impairment, beginning of period | (103,285 | ) | (120,279 | ) | ||||
|
|
|
| |||||
Balance after cumulative loss on impairment, beginning of period | 337,858 | 319,773 | ||||||
|
|
|
| |||||
Dispositions of radio stations | (1,091 | ) | — | |||||
Impairments based on the estimated fair value of broadcast licenses | (16,994 | ) | — | |||||
|
|
|
| |||||
Balance, end of period after cumulative loss on impairment | $ | 319,773 | $ | 319,773 | ||||
|
|
|
| |||||
Balance, end of period before cumulative loss on impairment | $ | 440,052 | $ | 440,052 | ||||
Accumulated loss on impairment, end of period | (120,279 | ) | (120,279 | ) | ||||
|
|
|
| |||||
Balance, end of period after cumulative loss on impairment | $ | 319,773 | $ | 319,773 | ||||
|
|
|
|
Broadcast Licenses | Twelve Months Ended December 31, 2020 | Six Months Ended June 30, 2021 | ||||||
(Dollars in thousands) | ||||||||
Balance before cumulative loss on impairment, beginning of period | $ | 435,300 | $ | 434,209 | ||||
Accumulated loss on impairment, beginning of period | (97,442 | ) | (114,436 | ) | ||||
Balance after cumulative loss on impairment, beginning of period | 337,858 | 319,773 | ||||||
Acquisitions of radio stations | — | 235 | ||||||
Dispositions of radio stations | (1,091 | ) | — | |||||
Impairments based on the estimated fair value of broadcast licenses | (16,994 | ) | — | |||||
Balance, end of period after cumulative loss on impairment | $ | 319,773 | $ | 320,008 | ||||
Balance, end of period before cumulative loss on impairment | $ | 434,209 | $ | 434,444 | ||||
Accumulated loss on impairment, end of period | (114,436 | ) | (114,436 | ) | ||||
Balance, end of period after cumulative loss on impairment | $ | 319,773 | $ | 320,008 | ||||
Goodwill | Twelve Months Ended December 31, 2020 | Three Months Ended March 31, 2021 | ||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period before cumulative loss on impairment, | $ | 28,454 | $ | 28,520 | ||||
Accumulated loss on impairment | (4,456 | ) | (4,763 | ) | ||||
|
|
|
| |||||
Balance, beginning of period after cumulative loss on impairment | 23,998 | 23,757 | ||||||
|
|
|
| |||||
Acquisitions of radio stations | 66 | — | ||||||
Impairments based on the estimated fair value goodwill | (307 | ) | — | |||||
|
|
|
| |||||
Ending period balance | $ | 23,757 | $ | 23,757 | ||||
|
|
|
| |||||
Balance, end of period before cumulative loss on impairment | 28,520 | 28,520 | ||||||
Accumulated loss on impairment | (4,763 | ) | (4,763 | ) | ||||
|
|
|
| |||||
Ending period balance | $ | 23,757 | $ | 23,757 | ||||
|
|
|
|
Goodwill | Twelve Months Ended December 31, 2020 | Six Months Ended June 30, 2021 | ||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period before cumulative loss on impairment, | $ | 28,454 | $ | 28,520 | ||||
Accumulated loss on impairment | (4,456 | ) | (4,763 | ) | ||||
Balance, beginning of period after cumulative loss on impairment | 23,998 | 23,757 | ||||||
Acquisitions of radio stations | 66 | 4 | ||||||
Acquisitions of digital media entities | — | 24 | ||||||
Impairments based on the estimated fair value goodwill | (307 | ) | — | |||||
Ending period balance | $ | 23,757 | $ | 23,785 | ||||
Balance, end of period before cumulative loss on impairment | 28,520 | 28,548 | ||||||
Accumulated loss on impairment | (4,763 | ) | (4,763 | ) | ||||
Ending period balance | $ | 23,757 | $ | 23,785 | ||||
As of March 31, 2021 | ||||||||||||
Accumulated | ||||||||||||
Cost | Amortization | Net | ||||||||||
(Dollars in thousands) | ||||||||||||
Customer lists and contracts | $ | 24,139 | $ | (22,690 | ) | $ | 1,449 | |||||
Domain and brand names | 20,350 | (19,367 | ) | 983 | ||||||||
Favorable and assigned leases | 2,188 | (1,947 | ) | 241 | ||||||||
Subscriber base and lists | 9,886 | (9,087 | ) | 799 | ||||||||
Author relationships | 2,771 | (2,767 | ) | 4 | ||||||||
Non-compete agreements | 2,041 | (1,991 | ) | 50 | ||||||||
Other amortizable intangible assets | 1,666 | (1,629 | ) | 37 | ||||||||
|
|
|
|
|
| |||||||
$ | 63,041 | $ | (59,478 | ) | $ | 3,563 | ||||||
|
|
|
|
|
|
As of December 31, 2020 | ||||||||||||
Accumulated | ||||||||||||
Cost | Amortization | Net | ||||||||||
(Dollars in thousands) | ||||||||||||
Customer lists and contracts | $ | 24,012 | $ | (22,533 | ) | $ | 1,479 | |||||
Domain and brand names | 20,350 | (19,127 | ) | 1,223 | ||||||||
Favorable and assigned leases | 2,188 | (1,943 | ) | 245 | ||||||||
Subscriber base and lists | 9,886 | (8,974 | ) | 912 | ||||||||
Author relationships | 2,771 | (2,765 | ) | 6 | ||||||||
Non-compete agreements | 2,041 | (1,954 | ) | 87 | ||||||||
Other amortizable intangible assets | 1,666 | (1,601 | ) | 65 | ||||||||
|
|
|
|
|
| |||||||
$62,914 | $(58,897) | $4,017 | ||||||||||
|
|
|
|
|
|
June 30, 2021 | ||||||||||||
Cost | Accumulated Amortization | Net | ||||||||||
(Dollars in thousands) | ||||||||||||
Customer lists and contracts | $ | 23,225 | $ | (21,770 | ) | $ | 1,455 | |||||
Domain and brand names | 20,289 | (19,492 | ) | 797 | ||||||||
Favorable and assigned leases | 2,188 | (1,951 | ) | 237 | ||||||||
Subscriber base and lists | 9,522 | (8,809 | ) | 713 | ||||||||
Author relationships | 2,771 | (2,770 | ) | 1 | ||||||||
Non-compete agreements | 2,041 | (2,028 | ) | 13 | ||||||||
Other amortizable intangible assets | 1,666 | (1,656 | ) | 10 | ||||||||
$ | 61,702 | $ | (58,476 | ) | $ | 3,226 | ||||||
December 31, 2020 | ||||||||||||
Accumulated | ||||||||||||
Cost | Amortization | Net | ||||||||||
(Dollars in thousands) | ||||||||||||
Customer lists and contracts | $ | 24,012 | $ | (22,533 | ) | $ | 1,479 | |||||
Domain and brand names | 20,350 | (19,127 | ) | 1,223 | ||||||||
Favorable and assigned leases | 2,188 | (1,943 | ) | 245 | ||||||||
Subscriber base and lists | 9,886 | (8,974 | ) | 912 | ||||||||
Author relationships | 2,771 | (2,765 | ) | 6 | ||||||||
Non-compete agreements | 2,041 | (1,954 | ) | 87 | ||||||||
Other amortizable intangible assets | 1,666 | (1,601 | ) | 65 | ||||||||
$62,914 | $(58,897) | $4,017 | ||||||||||
| Amortization Expense | |||
(Dollars in thousands) | ||||
2021 (Apr – Dec) | $ | 1,297 | ||
2022 | 1,252 | |||
2023 | 717 | |||
2024 | 92 | |||
2025 | 8 | |||
Thereafter | 197 | |||
|
| |||
Total | $ | 3,563 | ||
|
|
Year Ended December 31, | Amortization Expense | |||
(Dollars in thousands) | ||||
2021 (July – Dec) | $ | 796 | ||
2022 | 1,318 | |||
2023 | 784 | |||
2024 | 117 | |||
2025 | 13 | |||
Thereafter | 198 | |||
Total | $ | 3,226 | ||
During the three and
Date | Principal Repurchased | Cash Paid | % of Face Value | Bond Issue Costs | Net Gain | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
January 30, 2020 | $ | 2,250 | $ | 2,194 | 97.50 | % | $ | 34 | $ | 22 | ||||||||||
January 27, 2020 | 1,245 | 1,198 | 96.25 | % | 20 | 27 | ||||||||||||||
December 27, 2019 | 3,090 | 2,874 | 93.00 | % | 48 | 167 | ||||||||||||||
November 27, 2019 | 5,183 | 4,548 | 87.75 | % | 82 | 553 | ||||||||||||||
November 15, 2019 | 3,791 | 3,206 | 84.58 | % | 61 | 524 | ||||||||||||||
March 28, 2019 | 2,000 | 1,830 | 91.50 | % | 37 | 134 | ||||||||||||||
March 28, 2019 | 2,300 | 2,125 | 92.38 | % | 42 | 133 | ||||||||||||||
February 20, 2019 | 125 | 114 | 91.25 | % | 2 | 9 | ||||||||||||||
February 19, 2019 | 350 | 319 | 91.25 | % | 7 | 24 | ||||||||||||||
February 12, 2019 | 1,325 | 1,209 | 91.25 | % | 25 | 91 | ||||||||||||||
January 10, 2019 | 570 | 526 | 92.25 | % | 9 | 35 | ||||||||||||||
December 21, 2018 | 2,000 | 1,835 | 91.75 | % | 38 | 127 | ||||||||||||||
December 21, 2018 | 1,850 | 1,702 | 92.00 | % | 35 | 113 | ||||||||||||||
December 21, 2018 | 1,080 | 999 | 92.50 | % | 21 | 60 | ||||||||||||||
November 17, 2018 | 1,500 | 1,357 | 90.50 | % | 29 | 114 | ||||||||||||||
May 4, 2018 | 4,000 | 3,770 | 94.25 | % | 86 | 144 | ||||||||||||||
April 10, 2018 | 4,000 | 3,850 | 96.25 | % | 87 | 63 | ||||||||||||||
April 9, 2018 | 2,000 | 1,930 | 96.50 | % | 43 | 27 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
$ | 38,659 | $ | 35,586 | $ | 706 | $ | 2,367 | |||||||||||||
|
|
|
|
|
|
|
|
Date | Principal Repurchased | Cash Paid | % of Face Value | Bond Issue Costs | Net Gain | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
January 30, 2020 | $ | 2,250 | $ | 2,194 | 97.50 | % | $ | 34 | $ | 22 | ||||||||||
January 27, 2020 | 1,245 | 1,198 | 96.25 | % | 20 | 27 | ||||||||||||||
December 27, 2019 | 3,090 | 2,874 | 93.00 | % | 48 | 167 | ||||||||||||||
November 27, 2019 | 5,183 | 4,548 | 87.75 | % | 82 | 553 | ||||||||||||||
November 15, 2019 | 3,791 | 3,206 | 84.58 | % | 61 | 524 | ||||||||||||||
March 28, 2019 | 2,000 | 1,830 | 91.50 | % | 37 | 134 | ||||||||||||||
March 28, 2019 | 2,300 | 2,125 | 92.38 | % | 42 | 133 | ||||||||||||||
February 20, 2019 | 125 | 114 | 91.25 | % | 2 | 9 | ||||||||||||||
February 19, 2019 | 350 | 319 | 91.25 | % | 7 | 24 | ||||||||||||||
February 12, 2019 | 1,325 | 1,209 | 91.25 | % | 25 | 91 | ||||||||||||||
January 10, 2019 | 570 | 526 | 92.25 | % | 9 | 35 | ||||||||||||||
December 21, 2018 | 2,000 | 1,835 | 91.75 | % | 38 | 127 | ||||||||||||||
December 21, 2018 | 1,850 | 1,702 | 92.00 | % | 35 | 113 | ||||||||||||||
December 21, 2018 | 1,080 | 999 | 92.50 | % | 21 | 60 | ||||||||||||||
November 17, 2018 | 1,500 | 1,357 | 90.50 | % | 29 | 114 | ||||||||||||||
May 4, 2018 | 4,000 | 3,770 | 94.25 | % | 86 | 144 | ||||||||||||||
April 10, 2018 | 4,000 | 3,850 | 96.25 | % | 87 | 63 | ||||||||||||||
April 9, 2018 | 2,000 | 1,930 | 96.50 | % | 43 | 27 | ||||||||||||||
$ | 38,659 | $ | 35,586 | $ | 706 | $ | 2,367 | |||||||||||||
The Credit Agreement provides for the following events of default: (i) default forMarch 31,June 30, 2021, we were, and we remain, in compliance with all of the covenants under Credit Agreement.
During the three and
As of December 31, 2020 | As of March 31, 2021 | |||||||
(Dollars in thousands) | ||||||||
6.75% Senior Secured Notes | $ | 216,341 | $ | 216,341 | ||||
Less unamortized debt issuance costs based on imputed interest rate of 7.08% | (2,577 | ) | (2,393 | ) | ||||
|
|
|
| |||||
6.75% Senior Secured Notes net carrying value | 213,764 | 213,948 | ||||||
Asset-Based Revolving Credit Facility principal outstanding | 5,000 | — | ||||||
SBA Paycheck Protection Plan loans | — | 11,195 | ||||||
|
|
|
| |||||
Long-term debt less unamortized debt issuance costs | $ | 218,764 | $ | 225,143 | ||||
|
|
|
| |||||
Less current portion | (5,000 | ) | — | |||||
|
|
|
| |||||
Long-term debt less unamortized debt issuance costs, net of current portion | $ | 213,764 | $ | 225,143 | ||||
|
|
|
|
December 31, 2020 | June 30, 2021 | |||||||
(Dollars in thousands) | ||||||||
6.75% Senior Secured Notes | $ | 216,341 | $ | 216,341 | ||||
Less unamortized debt issuance costs based on imputed interest rate of 7.08% | (2,577 | ) | (2,209 | ) | ||||
6.75% Senior Secured Notes net carrying value | 213,764 | 214,132 | ||||||
Asset-Based Revolving Credit Facility principal outstanding | 5,000 | — | ||||||
SBA Paycheck Protection Program loans | — | 11,195 | ||||||
Long-term debt less unamortized debt issuance costs | $ | 218,764 | $ | 225,327 | ||||
Less current portion | (5,000 | ) | — | |||||
Long-term debt less unamortized debt issuance costs, net of current portion | $ | 213,764 | $ | 225,327 | ||||
For the Year Ended March 31,
Amount | ||||
(Dollars in thousands) | ||||
2022 | $ | — | ||
2023 | — | |||
2024 | 216,341 | |||
2025 | — | |||
2026 | 11,195 | |||
Thereafter | — | |||
|
| |||
$ | 227,536 | |||
|
|
Amount | ||||
For the Year Ended June 30, | (Dollars in thousands) | |||
2022 | $ | 0 | ||
2023 | 0 | |||
2024 | 216,341 | |||
2025 | 0 | |||
2026 | 11,195 | |||
Thereafter | 0 | |||
$ | 227,536 | |||
|
|
|
March 31, 2021 | ||||||||||||||||
Carrying Value on Balance Sheet | Fair Value Measurement Category | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Liabilities: | ||||||||||||||||
Estimated fair value of contingent earn-out consideration included in accrued expenses | $ | 11 | — | — | $ | 11 | ||||||||||
Long-term debt less unamortized debt issuance costs | 225,143 | — | 213,948 | — |
June 30, 2021 | ||||||||||||||||
Carrying Value on Balance Sheet | Fair Value Measurement Category | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Liabilities: | ||||||||||||||||
Estimated fair value of contingent earn-out consideration included in accrued expenses | $ | 11 | — | — | $ | 11 | ||||||||||
Long-term debt less unamortized debt issuance costs | 225,327 | — | 208,779 | — |
June 30, 2021, we computed the income tax provision using the estimated effective annual rate applicable for the full year. We updated our forecast to project income for the 2021 calendar year. In accordance with the guidance under ASC 740-270-25-4, we measured the estimated utilization of the operating loss carryforwards and the release of the valuation allowance for both federal and state jurisdictions.
The company enters
The company also records
The company
Three Months Ended March 31, | ||||||||
2020 | 2021 | |||||||
(Dollars in thousands) | ||||||||
Stock option compensation expense included in corporate expenses | $ | 50 | $ | 28 | ||||
Stock option compensation expense included in broadcast operating expenses | 37 | 28 | ||||||
Stock option compensation expense included in digital media operating expenses | 15 | 22 | ||||||
Stock option compensation expense included in publishing operating expenses | 1 | — | ||||||
|
|
|
| |||||
Total stock-based compensation expense, pre-tax | $ | 103 | $ | 78 | ||||
|
|
|
| |||||
Tax benefit (expense) for stock-based compensation expense | (27 | ) | 20 | |||||
|
|
|
| |||||
Total stock-based compensation expense, net of tax | $ | 76 | $ | 58 | ||||
|
|
|
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Stock option compensation expense included in unallocated corporate expenses | $ | 43 | $ | 24 | $ | 93 | $ | 52 | ||||||||
Stock option compensation expense included in broadcast operating expenses | 37 | 33 | 74 | 61 | ||||||||||||
Stock option compensation expense included in digital media operating expenses | 16 | 27 | 31 | 49 | ||||||||||||
Stock option compensation expense included in publishing operating expenses | — | — | 1 | — | ||||||||||||
Total stock-based compensation expense, pre-tax | $ | 96 | $ | 84 | $ | 199 | $ | 162 | ||||||||
Tax expense for stock-based compensation expense | (25 | ) | (22 | ) | (52 | ) | (42 | ) | ||||||||
Total stock-based compensation expense, net of tax | $ | 71 | $ | 62 | $ | 147 | $ | 120 | ||||||||
Three Months Ended | Three Months Ended | |||||||
March 31, 2020 | March 31, 2021 | |||||||
Expected volatility | 53.96 | % | 74.83 | % | ||||
Expected dividends | 7.30 | % | 0.00 | % | ||||
Expected term (in years) | 7.6 | 7.7 | ||||||
Risk-free interest rate | 1.14 | % | 0.96 | % |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||
June 30, 2020 | June 30, 2020 | June 30, 2021 | June 30, 2021 | |||||||||
Expected volatility | n/a | 53.96 | % | n/a | 74.83 | % | ||||||
Expected dividends | n/a | 7.30 | % | n/a | 0.00 | % | ||||||
Expected term (in years) | n/a | 7.6 | n/a | 7.7 | ||||||||
Risk-free interest rate | n/a | 1.14 | % | n/a | 0.96 | % |
Options | Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||||
(Dollars in thousands, except weighted average exercise price and weighted average grant date fair value) | ||||||||||||||||||||
Outstanding at January 1, 2021 | 2,291,020 | $ | 3.23 | $ | 1.52 | 4.3 years | $ | — | ||||||||||||
Granted | 210,000 | 2.01 | 1.44 | — | ||||||||||||||||
Exercised | (185,782 | ) | 2.11 | 0.97 | 188 | |||||||||||||||
Forfeited or expired | (151,946 | ) | 6.77 | 4.82 | — | |||||||||||||||
|
| |||||||||||||||||||
Outstanding at March 31, 2021 | 2,163,292 | $ | 2.96 | $ | 1.33 | 4.8 years | $ | 1,360 | ||||||||||||
|
| |||||||||||||||||||
Exercisable at March 31, 2021 | 1,086,417 | $ | 3.92 | $ | 1.76 | 2.8 years | $ | 248 | ||||||||||||
|
| |||||||||||||||||||
Expected to Vest | 1,022,493 | $ | 2.98 | $ | 1.34 | 4.7 years | $ | 1,056 | ||||||||||||
|
|
Options | Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||||
(Dollars in thousands, except weighted average exercise price and weighted average grant date fair value) | ||||||||||||||||||||
Outstanding at January 1, 2021 | 2,291,020 | $ | 3.23 | $ | 1.52 | 4.3 years | $ | — | ||||||||||||
Granted | 210,000 | 2.01 | 1.44 | — | ||||||||||||||||
Exercised | (185,782 | ) | 2.11 | 0.97 | 188 | |||||||||||||||
Forfeited or expired | (157,446 | ) | 6.73 | 4.74 | — | |||||||||||||||
Outstanding at June 30, 2021 | 2,157,792 | $ | 2.95 | $ | 1.33 | 4.5 years | $ | 996 | ||||||||||||
Exercisable at June 30, 2021 | 1,210,417 | $ | 3.84 | $ | 1.75 | 2.8 years | $ | 167 | ||||||||||||
Expected to Vest | 899,533 | $ | 2.98 | $ | 1.34 | 4.5 years | $ | 786 | ||||||||||||
Restricted Stock Awards | Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||
(Dollars in thousands, except weighted average exercise price and weighted average grant date fair value) | ||||||||||||||||
Outstanding at January 1, 2021 | 107,990 | $ | 1.85 | 1.67 years | $ | 112 | ||||||||||
Granted | — | — | — | — | ||||||||||||
Lapsed | — | — | — | — | ||||||||||||
Forfeited | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Outstanding at March 31, 2021 | 107,990 | $ | 1.85 | 0.4 years | $ | 317 | ||||||||||
|
|
Restricted Stock Awards | Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||
(Dollars in thousands, except weighted average exercise price and weighted average grant date fair value) | ||||||||||||||||
Outstanding at January 1, 2021 | 107,990 | $ | 1.85 | 1.67 years | $ | 112 | ||||||||||
Granted | — | — | — | — | ||||||||||||
Lapsed | — | — | — | — | ||||||||||||
Forfeited | — | — | — | — | ||||||||||||
Outstanding at June 30, 2021 | 107,990 | $ | 1.85 | 0.6 years | $ | 275 | ||||||||||
.
Press.
Broadcast | Digital Media | Publishing | Unallocated Corporate Expenses | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||
Net revenue | $ | 44,048 | $ | 9,619 | $ | 5,686 | $ | — | $ | 59,353 | ||||||||||
Operating expenses | 33,343 | 8,673 | 5,205 | 4,288 | 51,509 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net operating income (loss) before depreciation, amortization, and net (gain) loss on the disposition of assets | $ | 10,705 | $ | 946 | $ | 481 | $ | (4,288 | ) | $ | 7,844 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Depreciation | 1,525 | 781 | 47 | 236 | 2,589 | |||||||||||||||
Amortization | 4 | 432 | 145 | — | 581 | |||||||||||||||
Net (gain) loss on the disposition of assets | 318 | — | — | — | 318 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net operating income (loss) | $ | 8,858 | $ | (267 | ) | $ | 289 | $ | (4,524 | ) | $ | 4,356 | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||
Net revenue | $ | 45,180 | $ | 9,104 | $ | 3,966 | $ | — | $ | 58,250 | ||||||||||
Operating expenses | 37,327 | 8,326 | 5,062 | 4,210 | 54,925 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairments and net (gain) loss on the disposition of assets | $ | 7,853 | $ | 778 | $ | (1,096 | ) | $ | (4,210 | ) | $ | 3,325 | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Depreciation | 1,645 | 771 | 69 | 228 | 2,713 | |||||||||||||||
Amortization | 9 | 768 | 210 | — | 987 | |||||||||||||||
Change in the estimated fair value of contingent earn-out consideration | — | (5 | ) | — | — | (5 | ) | |||||||||||||
Impairment of indefinite-lived long-term assets other than goodwill | 16,994 | — | 260 | — | 17,254 | |||||||||||||||
Impairment of goodwill | 184 | 10 | 105 | 8 | 307 | |||||||||||||||
Net (gain) loss on the disposition of assets | 79 | — | — | — | 79 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net operating income (loss) | $ | (11,058 | ) | $ | (766 | ) | $ | (1,740 | ) | $ | (4,446 | ) | $ | (18,010 | ) | |||||
|
|
|
|
|
|
|
|
|
|
Broadcast | Digital Media | Publishing | Unallocated Corporate | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||
Inventories, net | $ | — | $ | — | $ | 588 | $ | — | $ | 588 | ||||||||||
Property and equipment, net | 63,671 | 5,977 | 732 | 8,218 | 78,598 | |||||||||||||||
Broadcast licenses | 319,773 | — | — | — | 319,773 | |||||||||||||||
Goodwill | 2,746 | 19,565 | 1,446 | — | 23,757 | |||||||||||||||
Amortizable intangible assets, net | 242 | 3,129 | 192 | — | 3,563 | |||||||||||||||
As of December 31, 2020 | ||||||||||||||||||||
Inventories, net | $ | — | $ | — | $ | 495 | $ | — | $ | 495 | ||||||||||
Property and equipment, net | 64,231 | 6,221 | 741 | 7,929 | 79,122 | |||||||||||||||
Broadcast licenses | 319,773 | — | — | — | 319,773 | |||||||||||||||
Goodwill | 2,746 | 19,565 | 1,446 | — | 23,757 | |||||||||||||||
Amortizable intangible assets, net | 246 | 3,434 | 337 | — | 4,017 |
Broadcast | Digital Media | Publishing | Unallocated Corporate Expenses | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||
Net revenue | $ | 46,783 | $ | 10,339 | $ | 6,660 | $ | — | $ | 63,782 | ||||||||||
Operating expenses | 36,162 | 8,338 | 6,426 | 4,192 | 55,118 | |||||||||||||||
Net operating income (loss) before depreciation, amortization, and net (gain) loss on the disposition of assets | $ | 10,621 | $ | 2,001 | $ | 234 | $ | (4,192 | ) | $ | 8,664 | |||||||||
Depreciation | 1,603 | 860 | 44 | 234 | 2,741 | |||||||||||||||
Amortization | 4 | 397 | 144 | — | 545 | |||||||||||||||
Net (gain) loss on the disposition of assets | — | 65 | (328 | ) | — | (263 | ) | |||||||||||||
Net operating income (loss) | $ | 9,014 | $ | 679 | $ | 374 | $ | (4,426 | ) | $ | 5,641 | |||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||
Net revenue | $ | 39,470 | $ | 9,443 | $ | 3,958 | $ | — | $ | 52,871 | ||||||||||
Operating expenses | 33,094 | 7,653 | 5,567 | 3,850 | 50,164 | |||||||||||||||
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairments, and net (gain) loss on the disposition of assets | $ | 6,376 | $ | 1,790 | $ | (1,609 | ) | $ | (3,850 | ) | $ | 2,707 | ||||||||
Depreciation | 1,641 | 767 | 73 | 237 | 2,718 | |||||||||||||||
Amortization | 5 | 623 | 211 | 1 | 840 | |||||||||||||||
Change in the estimated fair value of contingent earn-out consideration | — | 3 | — | — | 3 | |||||||||||||||
Net (gain) loss on the disposition of assets | 30 | — | — | 4 | 34 | |||||||||||||||
Net operating income (loss) | $ | 4,700 | $ | 397 | $ | (1,893 | ) | $ | (4,092 | ) | $ | (888 | ) | |||||||
Broadcast | Digital Media | Publishing | Unallocated Corporate Expenses | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||
Net revenue | $ | 90,831 | $ | 19,958 | $ | 12,346 | $ | — | $ | 123,135 | ||||||||||
Operating expenses | 69,505 | 17,011 | 11,631 | 8,480 | 106,627 | |||||||||||||||
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairments, and net (gain) loss on the disposition of assets | $ | 21,326 | $ | 2,947 | $ | 715 | $ | (8,480 | ) | $ | 16,508 | |||||||||
Depreciation | 3,128 | 1,641 | 91 | 470 | 5,330 | |||||||||||||||
Amortization | 8 | 829 | 289 | — | 1,126 | |||||||||||||||
Net (gain) loss on the disposition of assets | 318 | 65 | (328 | ) | — | 55 | ||||||||||||||
Net operating income (loss) | $ | 17,872 | $ | 412 | $ | 663 | $ | (8,950 | ) | $ | 9,997 | |||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||
Net revenue | $ | 84,650 | $ | 18,547 | $ | 7,924 | $ | — | $ | 111,121 | ||||||||||
Operating expenses | 70,421 | 15,979 | 10,629 | 8,060 | 105,089 | |||||||||||||||
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairments, and net (gain) loss on the disposition of assets | $ | 14,229 | $ | 2,568 | $ | (2,705 | ) | $ | (8,060 | ) | $ | 6,032 | ||||||||
Depreciation | 3,286 | 1,538 | 142 | 465 | 5,431 | |||||||||||||||
Amortization | 14 | 1,391 | 421 | 1 | 1,827 | |||||||||||||||
Change in the estimated fair value of contingent earn-out consideration | — | (2 | ) | — | — | (2 | ) | |||||||||||||
Impairment of indefinite-lived long-term assets other than goodwill | 16,994 | — | 260 | — | 17,254 | |||||||||||||||
Impairment of goodwill | 184 | 10 | 105 | 8 | 307 | |||||||||||||||
Net (gain) loss on the disposition of assets | 109 | — | — | 4 | 113 | |||||||||||||||
Net operating income (loss) | $ | (6,358 | ) | $ | (369 | ) | $ | (3,633 | ) | $ | (8,538 | ) | $ | (18,898 | ) | |||||
Broadcast | Digital Media | Publishing | Unallocated Corporate | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
As of June 30, 2021 | ||||||||||||||||||||
Inventories, net | $ | — | $ | — | $ | 719 | $ | — | $ | 719 | ||||||||||
Property and equipment, net | 63,616 | 6,746 | 741 | 8,312 | 79,415 | |||||||||||||||
Broadcast licenses | 320,008 | — | — | — | 320,008 | |||||||||||||||
Goodwill | 2,750 | 19,589 | 1,446 | — | 23,785 | |||||||||||||||
Amortizable intangible assets, net | 237 | 2,941 | 48 | — | 3,226 | |||||||||||||||
As of December 31, 2020 | ||||||||||||||||||||
Inventories, net | $ | — | $ | — | $ | 495 | $ | — | $ | 495 | ||||||||||
Property and equipment, net | 64,231 | 6,221 | 741 | 7,929 | 79,122 | |||||||||||||||
Broadcast licenses | 319,773 | — | — | — | 319,773 | |||||||||||||||
Goodwill | 2,746 | 19,565 | 1,446 | — | 23,757 | |||||||||||||||
Amortizable intangible assets, net | 246 | 3,434 | 337 | — | 4,017 |
On April 20, 2021 we entered into an APA to sell Singing News Magazine and Singing News Radio (formerly Solid Gospel Network) for $0.1 million in cash. The buyer will assume the deferred subscription liability of $0.4 million. The sale is expected to close in the second quarter of 2021.
On April 10, 2021, we entered into an agreement to sell approximately 34 acres of land in Lewisville, Texas, currently being used as the transmitter site for company owned radio station KSKY-AM, for $12.1 million in cash. We will retain enough of the property in the southwest corner of the site to operate the station. Following a due diligence period and satisfaction of several contingencies, we expect to close on this transaction in the third quarter of 2021.
Shelf Registration Statement and At-the-Market Facility
In April 2021, we filed a prospectus supplement to our shelf registration statement on Form S-3 with the SEC covering the offering, issuance and sale of up to $15.0 million of the company’s Class A Common Stock pursuant to an at-the-market facility, with B. Riley Securities, Inc. acting as sales agent.
Three Months Ended March 31, | ||||||||
2020 | 2021 | |||||||
(Dollars in thousands) | ||||||||
Reconciliation of Net Broadcast Revenue to Same Station Net Broadcast Revenue |
| |||||||
Net broadcast revenue | $ | 45,180 | $ | 44,048 | ||||
Net broadcast revenue – acquisitions | — | — | ||||||
Net broadcast revenue – dispositions | (223 | ) | 4 | |||||
Net broadcast revenue – format change | (176 | ) | (140 | ) | ||||
|
|
|
| |||||
Same Station net broadcast revenue | $ | 44,781 | $ | 43,912 | ||||
|
|
|
|
Reconciliation of Broadcast Operating Expenses To Same Station Broadcast Operating Expenses |
| |||||||
Broadcast operating expenses | $ | 37,327 | $ | 33,343 | ||||
Broadcast operating expenses – acquisitions | — | — | ||||||
Broadcast operating expenses – dispositions | (502 | ) | (106 | ) | ||||
Broadcast operating expenses – format change | (260 | ) | (178 | ) | ||||
|
|
|
| |||||
Same Station broadcast operating expenses | $ | 36,565 | $ | 33,059 | ||||
|
|
|
|
Reconciliation of Operating Income (Loss) to Same Station Operating Income |
| |||||||
Station Operating Income | $ | 7,853 | $ | 10,705 | ||||
Station operating loss –acquisitions | — | — | ||||||
Station operating loss – dispositions | 279 | 110 | ||||||
Station operating loss – format change | 84 | 38 | ||||||
|
|
|
| |||||
Same Station – Station Operating Income | $ | 8,216 | $ | 10,853 | ||||
|
|
|
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Reconciliation of Net Broadcast Revenue to Same Station Net Broadcast Revenue | ||||||||||||||||
Net broadcast revenue | $ | 39,470 | $ | 46,783 | $ | 84,650 | $ | 90,831 | ||||||||
Net broadcast revenue – acquisitions | — | (79 | ) | — | (79 | ) | ||||||||||
Net broadcast revenue – dispositions | (220 | ) | (42 | ) | (443 | ) | (38 | ) | ||||||||
Net broadcast revenue – format change | (104 | ) | (205 | ) | (280 | ) | (345 | ) | ||||||||
Same Station net broadcast revenue | $ | 39,146 | $ | 46,457 | $ | 83,927 | $ | 90,369 | ||||||||
Reconciliation of Broadcast Operating Expenses To Same Station Broadcast Operating Expenses | ||||||||||||||||
Broadcast operating expenses | $ | 33,094 | $ | 36,162 | $ | 70,421 | $ | 69,505 | ||||||||
Broadcast operating expenses – acquisitions | — | (38 | ) | — | (38 | ) | ||||||||||
Broadcast operating expenses – dispositions | (379 | ) | (79 | ) | (881 | ) | (185 | ) | ||||||||
Broadcast operating expenses – format change | (259 | ) | (206 | ) | (519 | ) | (384 | ) | ||||||||
Same Station broadcast operating expenses | $ | 32,456 | $ | 35,839 | $ | 69,021 | $ | 68,898 | ||||||||
Reconciliation of Operating Income to Same Station Operating Income | ||||||||||||||||
Station Operating Income | $ | 6,376 | $ | 10,621 | $ | 14,229 | $ | 21,326 | ||||||||
Station operating (income) loss –acquisitions | — | (41 | ) | — | (41 | ) | ||||||||||
Station operating loss – dispositions | 159 | 37 | 438 | 147 | ||||||||||||
Station operating loss – format change | 155 | 1 | 239 | 39 | ||||||||||||
Same Station – Station Operating Income | $ | 6,690 | $ | 10,618 | $ | 14,906 | $ | 21,471 | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2020 | 2021 | |||||||
(Dollars in thousands) | ||||||||
Calculation of Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) |
| |||||||
Net broadcast revenue | $ | 45,180 | $ | 44,048 | ||||
Less broadcast operating expenses | (37,327 | ) | (33,343 | ) | ||||
|
|
|
| |||||
Station Operating Income | $ | 7,853 | $ | 10,705 | ||||
|
|
|
| |||||
Net digital media revenue | $ | 9,104 | $ | 9,619 | ||||
Less digital media operating expenses | (8,326 | ) | (8,673 | ) | ||||
|
|
|
| |||||
Digital Media Operating Income | $ | 778 | $ | 946 | ||||
|
|
|
| |||||
Net publishing revenue | $ | 3,966 | $ | 5,686 | ||||
Less publishing operating expenses | (5,062 | ) | (5,205 | ) | ||||
|
|
|
| |||||
Publishing Operating Income (Loss) | $ | (1,096 | ) | $ | 481 | |||
|
|
|
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Calculation of Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) | ||||||||||||||||
Net broadcast revenue | $ | 39,470 | $ | 46,783 | $ | 84,650 | $ | 90,831 | ||||||||
Less broadcast operating expenses | (33,094 | ) | (36,162 | ) | (70,421 | ) | (69,505 | ) | ||||||||
Station Operating Income | $ | 6,376 | $ | 10,621 | $ | 14,229 | $ | 21,326 | ||||||||
Net digital media revenue | $ | 9,443 | $ | 10,339 | $ | 18,547 | $ | 19,958 | ||||||||
Less digital media operating expenses | (7,653 | ) | (8,338 | ) | (15,979 | ) | (17,011 | ) | ||||||||
Digital Media Operating Income | $ | 1,790 | $ | 2,001 | $ | 2,568 | $ | 2,947 | ||||||||
Net publishing revenue | $ | 3,958 | $ | 6,660 | $ | 7,924 | $ | 12,346 | ||||||||
Less publishing operating expenses | (5,567 | ) | (6,426 | ) | (10,629 | ) | (11,631 | ) | ||||||||
Publishing Operating Income (Loss) | $ | (1,609 | ) | $ | 234 | $ | (2,705 | ) | $ | 715 | ||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2020 | 2021 | |||||||
(Dollars in thousands) | ||||||||
Reconciliation of Net Income (Loss) to Operating Income and Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) |
| |||||||
Net income (loss) | $ | (55,204 | ) | $ | 323 | |||
Plus provision for income taxes | 33,159 | 130 | ||||||
Plus net miscellaneous income and (expenses) | 52 | (22 | ) | |||||
Plus gain on early retirement of long-term debt | (49 | ) | — | |||||
Plus interest expense, net of capitalized interest | 4,032 | 3,926 | ||||||
Less interest income | — | (1 | ) | |||||
|
|
|
| |||||
Net operating income (loss) | $ | (18,010 | ) | $ | 4,356 | |||
|
|
|
| |||||
Plus net (gain) loss on the disposition of assets | 79 | 318 | ||||||
Plus change in the estimated fair value of contingent earn-out consideration | (5 | ) | — | |||||
Plus impairment of indefinite-lived long-term assets other than goodwill | 17,254 | — | ||||||
Plus impairment of goodwill | 307 | — | ||||||
Plus depreciation and amortization | 3,700 | 3,170 | ||||||
Plus unallocated corporate expenses | 4,210 | 4,288 | ||||||
|
|
|
| |||||
Combined Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) | $ | 7,535 | $ | 12,132 | ||||
|
|
|
| |||||
Station Operating Income | $ | 7,853 | $ | 10,705 | ||||
Digital Media Operating Income | 778 | 946 | ||||||
Publishing Operating Income (Loss) | (1,096 | ) | 481 | |||||
|
|
|
| |||||
$ | 7,535 | $ | 12,132 | |||||
|
|
|
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Reconciliation of Net Income (Loss) to Operating Income and Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) | ||||||||||||||||
Net income (loss) | $ | (2,515 | ) | $ | 2,257 | $ | (57,719 | ) | $ | 2,580 | ||||||
Plus provision for (benefit from) income taxes | (2,380 | ) | (488 | ) | 30,779 | (358 | ) | |||||||||
Plus net miscellaneous income and (expenses) | (6 | ) | (63 | ) | 46 | (85 | ) | |||||||||
Plus (gain) on early retirement of long-term debt | — | — | (49 | ) | — | |||||||||||
Plus interest expense, net of capitalized interest | 4,013 | 3,935 | 8,045 | 7,861 | ||||||||||||
Less interest income | — | — | — | (1 | ) | |||||||||||
Net operating income (loss) | $ | (888 | ) | $ | 5,641 | $ | (18,898 | ) | $ | 9,997 | ||||||
Plus net (gain) loss on the disposition of assets | 34 | (263 | ) | 113 | 55 | |||||||||||
Plus change in the estimated fair value of contingent earn-out consideration | 3 | — | (2 | ) | — | |||||||||||
Plus impairment of indefinite-lived long-term assets other than goodwill | — | — | 17,254 | — | ||||||||||||
Plus impairment of goodwill | — | — | 307 | — | ||||||||||||
Plus depreciation and amortization | 3,558 | 3,286 | 7,258 | 6,456 | ||||||||||||
Plus unallocated corporate expenses | 3,850 | 4,192 | 8,060 | 8,480 | ||||||||||||
Combined Station Operating Income, Digital Media Operating Income and Publishing Operating Loss | $ | 6,557 | $ | 12,856 | $ | 14,092 | $ | 24,988 | ||||||||
Station Operating Income | $ | 6,376 | $ | 10,621 | $ | 14,229 | $ | 21,326 | ||||||||
Digital Media Operating Income | 1,790 | 2,001 | 2,568 | 2,947 | ||||||||||||
Publishing Operating Income (Loss) | (1,609 | ) | 234 | (2,705 | ) | 715 | ||||||||||
$ | 6,557 | $ | 12,856 | $ | 14,092 | $ | 24,988 | |||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2020 | 2021 | |||||||
(Dollars in thousands) | ||||||||
Reconciliation of Adjusted EBITDA to EBITDA to Net Income (Loss) |
| |||||||
Net income (loss) | $ | (55,204 | ) | $ | 323 | |||
Plus interest expense, net of capitalized interest | 4,032 | 3,926 | ||||||
Plus provision for income taxes | 33,159 | 130 | ||||||
Plus depreciation and amortization | 3,700 | 3,170 | ||||||
Less interest income | — | (1 | ) | |||||
|
|
|
| |||||
EBITDA | $ | (14,313 | ) | $ | 7,548 | |||
|
|
|
| |||||
Plus net (gain) loss on the disposition of assets | 79 | 318 | ||||||
Plus change in the estimated fair value of contingent earn-out consideration | (5 | ) | — | |||||
Plus impairment of indefinite-lived long-term assets other than goodwill | 17,254 | — | ||||||
Plus impairment of goodwill | 307 | — | ||||||
Plus net miscellaneous (income) and expenses | 52 | (22 | ) | |||||
Plus gain on early retirement of long-term debt | (49 | ) | — | |||||
Plus non-cash stock-based compensation | 103 | 78 | ||||||
|
|
|
| |||||
Adjusted EBITDA | $ | 3,428 | $ | 7,922 | ||||
|
|
|
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Reconciliation of Adjusted EBITDA to EBITDA to Net Income (Loss) | ||||||||||||||||
Net income (loss) | $ | (2,515 | ) | $ | 2,257 | $ | (57,719 | ) | $ | 2,580 | ||||||
Plus interest expense, net of capitalized interest | 4,013 | 3,935 | 8,045 | 7,861 | ||||||||||||
Plus provision for (benefit from) income taxes | (2,380 | ) | (488 | ) | 30,779 | (358 | ) | |||||||||
Plus depreciation and amortization | 3,558 | 3,286 | 7,258 | 6,456 | ||||||||||||
Less interest income | — | — | — | (1 | ) | |||||||||||
EBITDA | $ | 2,676 | $ | 8,990 | $ | (11,637 | ) | $ | 16,538 | |||||||
Plus net (gain) loss on the disposition of assets | 34 | (263 | ) | 113 | 55 | |||||||||||
Plus change in the estimated fair value of contingent earn-out consideration | 3 | — | (2 | ) | — | |||||||||||
Plus impairment of indefinite-lived long-term assets other than goodwill | — | — | 17,254 | — | ||||||||||||
Plus impairment of goodwill | — | — | 307 | — | ||||||||||||
Plus net miscellaneous (income) and expenses | (6 | ) | (63 | ) | 46 | (85 | ) | |||||||||
Plus (gain) on early retirement of long-term debt | — | — | (49 | ) | — | |||||||||||
Plus non-cash stock-based compensation | 96 | 84 | 199 | 162 | ||||||||||||
Adjusted EBITDA | $ | 2,803 | $ | 8,748 | $ | 6,231 | $ | 16,670 | ||||||||
Debt Transactions
During the three months ended March 31, 2020, we completed repurchases
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Net Broadcast Revenue | $ | 45,180 | $ | 44,048 | $ | (1,132 | ) | (2.5 | )% | 77.6 | % | 74.2 | % | |||||||||||
Same Station Net Broadcast Revenue | $ | 44,781 | $ | 43,912 | $ | (869 | ) | (1.9 | )% |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Broadcast Revenue | $ | 39,470 | $ | 46,783 | $ | 7,313 | 18.5 | % | 74.7 | % | 73.3 | % | ||||||||||||
Same Station Net Broadcast Revenue | $ | 39,146 | $ | 46,457 | $ | 7,311 | 18.7 | % |
Three Months Ended March 31, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Block Programming: | ||||||||||||||||
National | $ | 12,034 | 26.6 | % | $ | 11,461 | 26.0 | % | ||||||||
Local | 6,808 | 15.1 | % | 5,956 | 13.5 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
18,842 | 41.7 | % | 17,417 | 39.5 | % | |||||||||||
Broadcast Advertising: | ||||||||||||||||
National | 3,957 | 8.8 | % | 3,660 | 8.3 | % | ||||||||||
Local | 11,357 | 25.1 | % | 8,895 | 20.2 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
15,314 | 33.9 | % | 12,555 | 28.5 | % | |||||||||||
Station Digital (local) | 4,293 | 9.5 | % | 7,069 | 16.0 | % | ||||||||||
Infomercials | 308 | 0.7 | % | 237 | 0.5 | % | ||||||||||
Network | 4,388 | 9.7 | % | 4,871 | 11.1 | % | ||||||||||
Other Revenue | 2,035 | 4.5 | % | 1,899 | 4.3 | % | ||||||||||
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|
| |||||||||
Net Broadcast Revenue | $ | 45,180 | 100.0 | % | $ | 44,048 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Block Programming: | ||||||||||||||||
National | $ | 11,770 | 29.8 | % | $ | 11,861 | 25.4 | % | ||||||||
Local | 5,632 | 14.3 | % | 5,817 | 12.4 | % | ||||||||||
17,402 | 44.1 | % | 17,678 | 37.8 | % | |||||||||||
Broadcast Advertising: | ||||||||||||||||
National | 2,587 | 6.6 | % | 3,458 | 7.4 | % | ||||||||||
Local | 7,788 | 19.7 | % | 10,546 | 22.5 | % | ||||||||||
10,375 | 26.3 | % | 14,004 | 29.9 | % | |||||||||||
Broadcast Digital (local) | 5,655 | 14.3 | % | 7,728 | 16.5 | % | ||||||||||
Infomercials | 228 | 0.6 | % | 225 | 0.5 | % | ||||||||||
Network | 4,226 | 10.7 | % | 4,950 | 10.6 | % | ||||||||||
Other Revenue | 1,584 | 4.0 | % | 2,198 | 4.7 | % | ||||||||||
Net Broadcast Revenue | $ | 39,470 | 100.0 | % | $ | 46,783 | 100.0 | % | ||||||||
radio station
Stationspots.
Declines in infomercial revenue
advertising.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Net Digital Media Revenue | $ | 9,104 | $ | 9,619 | $ | 515 | 5.7 | % | 15.6 | % | 16.2 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Digital Media Revenue | $ | 9,443 | $ | 10,339 | $ | 896 | 9.5 | % | 17.9 | % | 16.2 | % |
Three Months Ended March 31, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Digital Advertising, net | $ | 4,713 | 51.8 | % | $ | 4,413 | 45.9 | % | ||||||||
Digital Streaming | 915 | 10.0 | 844 | 8.8 | ||||||||||||
Digital Subscriptions | 2,135 | 23.5 | 2,773 | 28.8 | ||||||||||||
Digital Downloads | 1,245 | 13.7 | 1,479 | 15.4 | ||||||||||||
e-commerce | 28 | 0.3 | 31 | 0.3 | ||||||||||||
Other Revenues | 68 | 0.7 | 79 | 0.8 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Digital Media Revenue | $ | 9,104 | 100.0 | % | $ | 9,619 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
Digital advertising
Three Months Ended June 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Digital Advertising, net | $ | 4,547 | 48.2 | % | $ | 4,393 | 42.5 | % | ||||||||
Digital Streaming | 853 | 9.0 | 862 | 8.3 | ||||||||||||
Digital Subscriptions | 2,157 | 22.8 | 3,299 | 31.9 | ||||||||||||
Digital Downloads | 1,802 | 19.1 | 1,694 | 16.4 | ||||||||||||
e-commerce | 27 | 0.3 | 67 | 0.6 | ||||||||||||
Other Revenues | 57 | 0.6 | 24 | 0.2 | ||||||||||||
Net Digital Media Revenue | $ | 9,443 | 100.0 | % | $ | 10,339 | 100.0 | % | ||||||||
Digital download revenue increased by $0.2 milliondownloads purchased from our church product websites, WorshipHouseMedia.com and SermonSpice.com which wasthe timing of the Easter holiday, which was on Sunday April 4, 2021, withresulting in a majority of the associated revenue being generated on or before March 31, 2021. There were no significant changes in rates.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Net Publishing Revenue | $ | 3,966 | $ | 5,686 | $ | 1,720 | 43.4 | % | 6.8 | % | 9.6 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Publishing Revenue | $ | 3,958 | $ | 6,660 | $ | 2,702 | 68.3 | % | 7.5 | % | 10.4 | % |
Three Months Ended March 31, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Book Sales | $ | 2,693 | 67.9 | % | $ | 4,301 | 75.6 | % | ||||||||
Estimated Sales Returns & Allowances | (970 | ) | (24.5 | ) | (1,093 | ) | (19.2 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Book Sales | 1,723 | 43.4 | 3,208 | 56.4 | ||||||||||||
E-Book Sales | 254 | 6.4 | 339 | 6.0 | ||||||||||||
Self-Publishing Fees | 1,402 | 35.3 | 1,624 | 28.6 | ||||||||||||
Print Magazine Subscriptions | 177 | 4.5 | 158 | 2.8 | ||||||||||||
Print Magazine Advertisements | 102 | 2.6 | 68 | 1.2 | ||||||||||||
Digital Advertising | 99 | 2.5 | 62 | 1.1 | ||||||||||||
Other Revenue | 209 | 5.3 | 227 | 4.0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Publishing Revenue | $ | 3,966 | 100.0 | % | $ | 5,686 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Book Sales | $ | 2,698 | 68.2 | % | $ | 6,212 | 93.3 | % | ||||||||
Estimated Sales Returns & Allowances | (560 | ) | (14.1 | ) | (1,918 | ) | (28.8 | ) | ||||||||
Net Book Sales | 2,138 | 54.1 | 4,294 | 64.5 | ||||||||||||
E-Book Sales | 250 | 6.3 | 453 | 6.8 | ||||||||||||
Self-Publishing Fees | 1,051 | 26.5 | 1,550 | 23.3 | ||||||||||||
Print Magazine Subscriptions | 174 | 4.4 | 104 | 1.6 | ||||||||||||
Print Magazine Advertisements | 91 | 2.3 | 54 | 0.8 | ||||||||||||
Digital Advertising | 52 | 1.3 | 70 | 1.1 | ||||||||||||
Other Revenue | 202 | 5.1 | 135 | 2.0 | ||||||||||||
Net Publishing Revenue | $ | 3,958 | 100.0 | % | $ | 6,660 | 100.0 | % | ||||||||
Regnery
levels prior to the sale.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Broadcast Operating Expenses | $ | 37,327 | $ | 33,343 | $ | (3,984 | ) | (10.7 | )% | 64.1 | % | 56.2 | % | |||||||||||
Same Station Broadcast Operating Expenses | $ | 36,565 | $ | 33,059 | $ | (3,506 | ) | (9.6 | )% |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change | Change | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Broadcast Operating Expenses | $ | 33,094 | $ | 36,162 | $ | 3,068 | 9.3 | % | 62.6 | % | 56.7 | % | ||||||||||||
Same Station Broadcast Operating Expenses | $ | 32,456 | $ | 35,839 | $ | 3,383 | 10.4 | % |
2020 from the release of two successful titles during that period.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Digital Media Operating Expenses | $ | 8,326 | $ | 8,673 | $ | 347 | 4.2 | % | 14.3 | % | 14.6 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Digital Media Operating Expenses | $ | 7,653 | $ | 8,338 | $ | 685 | 9.0 | % | 14.5 | % | 13.1 | % |
The increase in payroll expenses reflects the January 2021 reinstatement of company-wide pay cuts that were implemented in 2020.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Publishing Operating Expenses | $ | 5,062 | $ | 5,205 | $ | 143 | 2.8 | % | 8.7 | % | 8.8 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Publishing Operating Expenses | $ | 5,567 | $ | 6,426 | $ | 859 | 15.4 | % | 10.5 | % | 10.1 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Unallocated Corporate Expenses | $ | 4,210 | $ | 4,288 | $ | 78 | 1.9 | % | 7.2 | % | 7.2 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Unallocated Corporate Expenses | $ | 3,850 | $ | 4,192 | $ | 342 | 8.9 | % | 7.3 | % | 6.6 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Depreciation Expense | $ | 2,718 | $ | 2,741 | $ | 23 | 0.8 | % | 5.1 | % | 4.3 | % |
Depreciation Expense
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Depreciation Expense | $ | 2,713 | $ | 2,589 | $ | (124 | ) | (4.6 | )% | 4.7 | % | 4.4 | % |
The decrease in depreciation expense reflectsof the impact of prior year capital expenditures for data processing equipment and computer software that had shorter estimated useful lives as compared to towers or other assets and were fully depreciated during the current year. There were no changes in our depreciation methods or in the estimated useful lives of our asset groups.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Amortization Expense | $ | 987 | $ | 581 | $ | (406 | ) | (41.1 | )% | 1.7 | % | 1.0 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||||
Amortization Expense | $ | 840 | $ 545 | $ | (295 | ) | (35.1) % | 1.6 | % | 0.9 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net (Gain) Loss on the Disposition of assets | $ | 34 | $ | (263 | ) | $ | (297 | ) | (873.5) % | 0.1 | % | (0.4) % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Interest Expense | $ | (4,013 | ) | $ | (3,935 | ) | 78 | (1.9) % | (7.6) % | (6.2) % | ||||||||||||||
Net Miscellaneous Income and (Expenses) | 6 | 63 | 57 | 950.0% | — % | 0.1% |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Provision for (Benefit from) Income Taxes | $ | (2,380 | ) | $ | (488 | ) | $ | 1,892 | (79.5) % | (4.5) % | (0.8) % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Income (Loss) | $ | (2,515 | ) | $ | 2,257 | $ | 4,772 | (189.7) % | (4.8) % | 3.5 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Broadcast Revenue | $ | 84,650 | $ | 90,831 | $ | 6,181 | 7.3 | % | 76.2 | % | 73.8 | % | ||||||||||||
Same Station Net Broadcast Revenue | $ | 83,927 | $ | 90,369 | $ | 6,422 | 7.7 | % |
Six Months Ended June 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Block Programming: | ||||||||||||||||
National | $ | 23,804 | 28.1 | % | $ | 23,322 | 25.7 | % | ||||||||
Local | 12,440 | 14.7 | % | 11,773 | 13.0 | % | ||||||||||
36,244 | 42.8 | % | 35,095 | 38.6 | % | |||||||||||
Broadcast Advertising: | ||||||||||||||||
National | 6,544 | 7.7 | % | 7,118 | 7.8 | % | ||||||||||
Local | 19,145 | 22.6 | % | 19,441 | 21.4 | % | ||||||||||
25,689 | 30.3 | % | 26,559 | 29.2 | % | |||||||||||
Broadcast Digital (local) | 9,948 | 11.8 | % | 14,797 | 16.3 | % | ||||||||||
Infomercials | 536 | 0.6 | % | 462 | 0.5 | % | ||||||||||
Network | 8,614 | 10.2 | % | 9,821 | 10.8 | % | ||||||||||
Other Revenue | 3,619 | 4.3 | % | 4,097 | 4.5 | % | ||||||||||
Net Broadcast Revenue | $ | 84,650 | 100.0 | % | $ | 90,831 | 100.0 | % | ||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Digital Media | $ | 18,547 | $ | 19,958 | $ | 1,411 | 7.6 | % | 16.7 | % | 16.2 | % |
Six Months Ended June 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Digital Advertising, net | $ | 9,260 | 49.9 | % | $ | 8,806 | 44.1 | % | ||||||||
Digital Streaming | 1,768 | 9.5 | 1,706 | 8.5 | ||||||||||||
Digital Subscriptions | 4,292 | 23.2 | 6,072 | 30.4 | ||||||||||||
Digital Downloads | 3,047 | 16.4 | 3,173 | 15.9 | ||||||||||||
e-commerce | 55 | 0.3 | 98 | 0.5 | ||||||||||||
Other Revenues | 125 | 0.7 | 103 | 0.5 | ||||||||||||
Net Digital Media Revenue | $ | 18,547 | 100.0 | % | $ | 19,958 | 100.0 | % | ||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Publishing Revenue | $ | 7,924 | $ | 12,346 | $ | 4,422 | 55.8 | % | 7.1 | % | 10.0 | % |
Six Months Ended June 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Book Sales | $ | 5,391 | 68.0 | % | $ | 10,513 | 85.2 | % | ||||||||
Estimated Sales Returns & Allowances | (1,530 | ) | (19.3 | ) | (3,011 | ) | (24.4 | ) | ||||||||
Net Book Sales | 3,861 | 48.7 | 7,502 | 60.8 | ||||||||||||
E-Book Sales | 504 | 6.4 | 792 | 6.4 | ||||||||||||
Self-Publishing Fees | 2,453 | 31.0 | 3,174 | 25.7 | ||||||||||||
Print Magazine Subscriptions | 351 | 4.4 | 262 | 2.1 | ||||||||||||
Print Magazine Advertisements | 193 | 2.4 | 122 | 1.0 | ||||||||||||
Digital Advertising | 151 | 1.9 | 132 | 1.1 | ||||||||||||
Other Revenue | 411 | 5.2 | 362 | 2.9 | ||||||||||||
Net Publishing Revenue | $ | 7,924 | 100.0 | % | $ | 12,346 | 100.0 | % | ||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Broadcast Operating Expenses | $ | 70,421 | $ | 69,505 | $ | (916 | ) | (1.3 | )% | 63.4 | % | 56.4 | % | |||||||||||
Same Station Broadcast Operating Expenses | $ | 69,021 | $ | 68,898 | $ | (123 | ) | (0.2 | )% |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Digital Media Operating Expenses | $ | 15,979 | $ | 17,011 | $ | 1,032 | 6.5 | % | 14.4 | % | 13.8 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Publishing Operating Expenses | $ | 10,629 | $ | 11,631 | $ | 1,002 | 9.4 | % | 9.6 | % | 9.4 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Unallocated Corporate Expenses | $ | 8,060 | $ | 8,480 | $ | 420 | 5.2 | % | 7.3 | % | 6.9 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Depreciation Expense | $ | 5,431 | $ | 5,330 | $ | (101 | ) | (1.9 | )% | 4.9 | % | 4.3 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Amortization Expense | $ | 1,827 | $ | 1,126 | $ | (701 | ) | (38.4 | )% | 1.6 | % | 0.9 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Impairment of Indefinite-Lived Long-Term Assets Other Than Goodwill | $ | 17,254 | $ | — | $ | (17,254 | ) | (100.0 | )% | 29.6 | % | — | % |
There were no indications of impairment at March 31, 2021.
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Impairment of Indefinite-Lived Long-Term Assets Other Than Goodwill | $ | 17,254 | $ | — | $ | (17,254 | ) | (100.0 | )% | 15.5 | % | — | % |
Impairment of Goodwill
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 20210 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Impairment of Goodwill | $ | 307 | $ | — | $ | (307 | ) | (100.0 | )% | 0.5 | % | — | % |
There were no indications of impairment at March 31, 2021. as of our interim review during the second quarter of 2020.
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Impairment of Goodwill | $ | 307 | $ | — | $ | (307 | ) | (100.0 | )% | 0.3 | % | — | % |
There were no indications of impairment as of our interim review during the second quarter of 2020.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Net (Gain) Loss on the Disposition of assets | $ | 79 | $ | 318 | $ | 239 | 302.5 | % | 0.1 | % | 0.5 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net (Gain) Loss on the Disposition of assets | $ | 113 | $ | 55 | $ | (58 | ) | (51.3 | )% | 0.1 | % | — | % |
Florida and various fixed asset disposals.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Interest Income | $ | — | $ | 1 | $ | 1 | 100.0 | % | — | % | — | % | ||||||||||||
Interest Expense | (4,032 | ) | (3,926 | ) | 106 | (2.6 | )% | (6.9 | )% | (6.6 | )% | |||||||||||||
Gain on Early Retirement of Long-Term Debt | 49 | — | (49 | ) | (100.0 | )% | 0.1 | % | — | % | ||||||||||||||
Net Miscellaneous Income and (Expenses) | (52 | ) | 22 | 74 | (142.3 | )% | (0.1 | )% | — | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Interest Income | $ | — | $ | 1 | $ | 1 | 100.0 | % | — | % | — | % | ||||||||||||
Interest Expense | (8,045 | ) | (7,861 | ) | (184 | ) | (2.3 | )% | (7.2 | )% | (6.4 | )% | ||||||||||||
Gain on Early Retirement of Long-Term Debt | 49 | — | (49 | ) | (100.0 | )% | — | % | — | % | ||||||||||||||
Net Miscellaneous Income and (Expenses) | (46 | ) | 85 | 131 | (284.8 | )% | — | % | 0.1 | % |
$49,000 for the
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Provision for Income Taxes | $ | 33,159 | $ | 130 | $ | (33,029 | ) | (99.6 | )% | 56.9 | % | 0.2 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Provision for (Benefit from) Income Taxes | $ | 30,779 | $ | (358 | ) | $ | (31,137 | ) | (101.2 | )% | 27.7 | % | (0.3 | )% |
attributable to deductible amortization on indefinite lived assets for fully valued state jurisdictions and projected utilization of operating loss carryforwards.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) |
| % of Total Net Revenue | ||||||||||||||||||||||
Net Income (Loss) | $ | (55,204 | ) | $ | 323 | $ | 55,527 | (100.6 | )% | (94.8 | )% | 0.5 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Income (Loss) | $ | (57,719 | ) | $ | 2,580 | $ | 60,299 | (104.5 | )% | (51.9 | )% | 2.1 | % |
probabilities associated with the potential for contingent earn-out consideration;
(1) | the difference between any recent fair value calculations and the carrying value; |
(2) | financial performance, such as station operating income, including performance as compared to projected results used in prior estimates of fair value; |
(3) | macroeconomic economic conditions, including limitations on accessing capital that could affect the discount rates used in prior estimates of fair value; |
(4) | industry and market considerations such as a decline in market-dependent multiples or metrics, a change in demand, competition, or other economic factors; |
(5) | operating cost factors, such as increases in labor, that could have a negative effect on future expected earnings and cash flows; |
(6) | legal, regulatory, contractual, political, business, or other factors; |
(7) | other relevant entity-specific events such as changes in management or customers; and |
(8) | any changes to the carrying amount of the indefinite-lived intangible asset. |
Contingent Earn-Out Consideration
Our acquisitions may include contingent earn-out consideration as part of the purchase price. The fair value of the contingent earn-out consideration is estimated as of the acquisition date based on the present value of the contingent payments expected to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent earn-out consideration include our own assumptions about the likelihood of payment based on the established benchmarks and discount rates based on our internal rate of return analysis. The fair value measurements include inputs that are Level 3 measurement as discussed in Note 12 in the notes of our Condensed Consolidated Financial Statements contained in Part 1 in this quarterly report on Form 10-Q.
We review the probabilities of possible future payments to the estimated fair value of any contingent earn-out consideration on a quarterly basis over the earn-out period. Actual results are compared to the estimates and probabilities of achievement used in our forecasts. Should actual results increase or decrease as compared to the assumption used in our analysis, the fair value of the contingent earn-out consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent earn-out consideration could cause a material impact and volatility in our operating results.
We believe that we have used reasonable estimates and assumptions to calculate the estimated fair value of any contingent earn-out consideration however, these estimates and assumptions are highly judgmental in nature. Actual results can be materially different from estimates and assumptions.
We review and reevaluate uncertain tax positions on a quarterly basis. Changes in assumptions may result in the recognition of a tax benefit or an additional charge to the tax provision. During the years ended December 31, 2019 and 2020,At June 30, 2021, we recognized liabilities associated with uncertain tax positions around our subsidiary Salem Communications Holding Company’s Pennsylvania tax filing. The position taken on the tax returns follows Pennsylvania Notice
expenses.
Net inventories on hand decreased $0.1 million to $0.6 million at March 31, 2021 compared to a $0.1 million decrease to $0.6 million for the same period of the prior year.
Net cash used in investing activities increased $3.4$2.7 million to $1.3$3.2 million during the three-month
Receipts from asset sales provided $3.5
We have used the PPP loans for eligible purposes and are applying for loan forgiveness based on the terms. During July 2021, the SBA forgave all but $20,000 of the PPP loans.
During July 2021, the SBA forgave all but $20,000 of the PPP loans.
During the three and
Date | Principal Repurchased | Cash Paid | % of Face Value | Bond Issue Costs | Net Gain | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
January 30, 2020 | $ | 2,250 | $ | 2,194 | 97.50 | % | $ | 34 | $ | 22 | ||||||||||
January 27, 2020 | 1,245 | 1,198 | 96.25 | % | 20 | 27 | ||||||||||||||
December 27, 2019 | 3,090 | 2,874 | 93.00 | % | 48 | 167 | ||||||||||||||
November 27, 2019 | 5,183 | 4,548 | 87.75 | % | 82 | 553 | ||||||||||||||
November 15, 2019 | 3,791 | 3,206 | 84.58 | % | 61 | 524 | ||||||||||||||
March 28, 2019 | 2,000 | 1,830 | 91.50 | % | 37 | 134 | ||||||||||||||
March 28, 2019 | 2,300 | 2,125 | 92.38 | % | 42 | 133 | ||||||||||||||
February 20, 2019 | 125 | 114 | 91.25 | % | 2 | 9 | ||||||||||||||
February 19, 2019 | 350 | 319 | 91.25 | % | 7 | 24 | ||||||||||||||
February 12, 2019 | 1,325 | 1,209 | 91.25 | % | 25 | 91 | ||||||||||||||
January 10, 2019 | 570 | 526 | 92.25 | % | 9 | 35 | ||||||||||||||
December 21, 2018 | 2,000 | 1,835 | 91.75 | % | 38 | 127 | ||||||||||||||
December 21, 2018 | 1,850 | 1,702 | 92.00 | % | 35 | 113 | ||||||||||||||
December 21, 2018 | 1,080 | 999 | 92.50 | % | 21 | 60 | ||||||||||||||
November 17, 2018 | 1,500 | 1,357 | 90.50 | % | 29 | 114 | ||||||||||||||
May 4, 2018 | 4,000 | 3,770 | 94.25 | % | 86 | 144 | ||||||||||||||
April 10, 2018 | 4,000 | 3,850 | 96.25 | % | 87 | 63 | ||||||||||||||
April 9, 2018 | 2,000 | 1,930 | 96.50 | % | 43 | 27 | ||||||||||||||
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$ | 38,659 | $ | 35,586 | $ | 706 | $ | 2,367 | |||||||||||||
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Date | Principal Repurchased | Cash Paid | % of Face Value | Bond Issue Costs | Net Gain | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
January 30, 2020 | $ | 2,250 | $ | 2,194 | 97.50 | % | $ | 34 | $ | 22 | ||||||||||
January 27, 2020 | 1,245 | 1,198 | 96.25 | % | 20 | 27 | ||||||||||||||
December 27, 2019 | 3,090 | 2,874 | 93.00 | % | 48 | 167 | ||||||||||||||
November 27, 2019 | 5,183 | 4,548 | 87.75 | % | 82 | 553 | ||||||||||||||
November 15, 2019 | 3,791 | 3,206 | 84.58 | % | 61 | 524 | ||||||||||||||
March 28, 2019 | 2,000 | 1,830 | 91.50 | % | 37 | 134 | ||||||||||||||
March 28, 2019 | 2,300 | 2,125 | 92.38 | % | 42 | 133 | ||||||||||||||
February 20, 2019 | 125 | 114 | 91.25 | % | 2 | 9 | ||||||||||||||
February 19, 2019 | 350 | 319 | 91.25 | % | 7 | 24 | ||||||||||||||
February 12, 2019 | 1,325 | 1,209 | 91.25 | % | 25 | 91 | ||||||||||||||
January 10, 2019 | 570 | 526 | 92.25 | % | 9 | 35 | ||||||||||||||
December 21, 2018 | 2,000 | 1,835 | 91.75 | % | 38 | 127 | ||||||||||||||
December 21, 2018 | 1,850 | 1,702 | 92.00 | % | 35 | 113 | ||||||||||||||
December 21, 2018 | 1,080 | 999 | 92.50 | % | 21 | 60 | ||||||||||||||
November 17, 2018 | 1,500 | 1,357 | 90.50 | % | 29 | 114 | ||||||||||||||
May 4, 2018 | 4,000 | 3,770 | 94.25 | % | 86 | 144 | ||||||||||||||
April 10, 2018 | 4,000 | 3,850 | 96.25 | % | 87 | 63 | ||||||||||||||
April 9, 2018 | 2,000 | 1,930 | 96.50 | % | 43 | 27 | ||||||||||||||
$ | 38,659 | $ | 35,586 | $ | 706 | $ | 2,367 | |||||||||||||
On October 20, 2020, we entered into a fourth amendment to our ABL Facility that provides a
During the three and
As of December 31, 2020 | As of March 31, 2021 | |||||||
(Dollars in thousands) | ||||||||
6.75% Senior Secured Notes | $ | 216,341 | $ | 216,341 | ||||
Less unamortized debt issuance costs based on imputed interest rate of 7.08% | (2,577 | ) | (2,393 | ) | ||||
|
|
|
| |||||
6.75% Senior Secured Notes net carrying value | 213,764 | 213,948 | ||||||
Asset-Based Revolving Credit Facility principal outstanding | 5,000 | — | ||||||
SBA Paycheck Protection Plan loans | — | 11,195 | ||||||
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| |||||
Long-term debt less unamortized debt issuance costs | $ | 218,764 | $ | 225,143 | ||||
|
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|
| |||||
Less current portion | (5,000 | ) | — | |||||
|
|
|
| |||||
Long-term debt less unamortized debt issuance costs, net of current portion | $ | 213,764 | $ | 225,143 | ||||
|
|
|
|
December 31, 2020 | June 30, 2021 | |||||||
(Dollars in thousands) | ||||||||
6.75% Senior Secured Notes | $ | 216,341 | $ | 216,341 | ||||
Less unamortized debt issuance costs based on imputed interest rate of 7.08% | (2,577 | ) | (2,209 | ) | ||||
6.75% Senior Secured Notes net carrying value | 213,764 | 214,132 | ||||||
Asset-Based Revolving Credit Facility principal outstanding | 5,000 | — | ||||||
SBA Paycheck Protection Program loans | — | 11,195 | ||||||
Long-term debt less unamortized debt issuance costs | $ | 218,764 | $ | 225,327 | ||||
Less current portion | (5,000 | ) | — | |||||
Long-term debt less unamortized debt issuance costs, net of current portion | $ | 213,764 | $ | 225,327 | ||||
Amount | ||||
For the Year Ended March 31, | (Dollars in thousands) | |||
2022 | $ | — | ||
2023 | — | |||
2024 | 216,341 | |||
2025 | — | |||
2026 | 11,195 | |||
Thereafter | — | |||
|
| |||
$ | 227,536 | |||
|
|
Amount | ||||
For the Year Ended June 30, | (Dollars in thousands) | |||
2022 | $ | — | ||
2023 | — | |||
2024 | 216,341 | |||
2025 | — | |||
2026 | 11,195 | |||
Thereafter | — | |||
$ | 227,536 | |||
|
in the SEC’s rules and forms, and include controls and procedures designed to ensure that information we are required to disclose in such reports is accumulated and communicated to management, including our principal executive and financial officers, as appropriate, to allow timely decisions regarding required disclosure. Based on that evaluation, our principal executive and financial officers concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.
|
Exhibit Number | Exhibit Description | Form | File No. | Date of First Filing | Exhibit Number | Filed Herewith | ||||||||||||||||
31.1 | Certification of Edward G. Atsinger III Pursuant to Rules 13a-14(a) and 15d-14(a) | |||||||||||||||||||||
— | — | — | — | X | ||||||||||||||||||
31.2 | Certification of Evan D. Masyr Pursuant to Rules 13a-14(a) and 15d-14(a) under the Exchange Act. | — | — | — | — | X | ||||||||||||||||
32.1 | Certification of Edward G. Atsinger III Pursuant to 18 U.S.C. Section 1350. | — | — | — | — | X | ||||||||||||||||
32.2 | Certification of Evan D. Masyr Pursuant to 18 U.S.C. Section 1350. | — | — | — | — | X |
101 | The following financial information from the Quarterly Report on Form 10Q for the three and six months ended | — | — | — | — | X | ||||||||||||||||||||||||||||||
104 | The cover page of this Quarterly Report on Form 10-Q, formatted in inline XBRL. |
SALEM MEDIA GROUP, INC. | ||||||
August 4, 2021 | By: | /s/ EDWARD G. ATSINGER III | ||||
| ||||||
Edward G. Atsinger III | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
August 4, 2021 | By: | /s/ EVAN D. MASYR | ||||
| ||||||
Evan D. Masyr | ||||||
Executive Vice President and Chief Financial Officer | ||||||
(Principal Financial Officer) |
59