☒ | 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 INCORPORATION OR ORGANIZATION) | (I.R.S. EMPLOYER IDENTIFICATION NUMBER) | |
6400 NORTH BELT LINE ROAD IRVING, TEXAS | 75063 | |
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) | (ZIP CODE) |
Title of each Class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A Common Stock, $0.01 par value per share | SALM | NASDAQ Global Market |
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 |
Class B | Outstanding at | |
Common Stock, $0.01 par value per share | 5,553,696 shares |
PAGE NO. | ||||
ITEM 1. | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
December 31, 2021 (Note 1) | June 30, 2022 (Unaudited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,785 | $ | 2,540 | ||||
Accounts receivable (net of allowances of $13,022 in 2021 and $7,496 in 2022) | 25,663 | 29,271 | ||||||
Unbilled revenue | 3,406 | 2,960 | ||||||
Other receivables (net of allowances of $455 in 2021 and $586 in 2022) | 1,377 | 2,721 | ||||||
Inventories | 960 | 1,528 | ||||||
Prepaid expenses | 6,772 | 8,380 | ||||||
Assets held for sale | 1,551 | 267 | ||||||
Total current assets | 41,514 | 47,667 | ||||||
Notes receivable (net of allowance of $938 in 2021 and $427 in 2022) | 274 | 1,072 | ||||||
Property and equipment (net of accumulated depreciation of $186,053 in 2021 and $186,881 in 2022) | 79,339 | 79,713 | ||||||
Operating lease right-of-use | 43,560 | 44,020 | ||||||
Financing lease right-of-use | 105 | 90 | ||||||
Broadcast licenses | 320,008 | 313,500 | ||||||
Goodwill | 23,986 | 23,861 | ||||||
Amortizable intangible assets (net of accumulated amortization of $58,110 in 2021 and $58,777 in 2022) | 2,444 | 1,799 | ||||||
Deferred financing costs | 843 | 774 | ||||||
Other assets | 4,039 | 2,773 | ||||||
Total assets | $ | 516,112 | $ | 515,269 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,661 | $ | 2,623 | ||||
Accrued expenses | 12,006 | 18,679 | ||||||
Accrued compensation and related expenses | 13,054 | 12,278 | ||||||
Accrued interest | 1,030 | 952 | ||||||
Contract liabilities | 12,294 | 12,401 | ||||||
Deferred rent income | 157 | 144 | ||||||
Income taxes payable | 1,544 | 222 | ||||||
Current portion of operating lease liabilities | 8,651 | 8,795 | ||||||
Current portion of financing lease liabilities | 58 | 57 | ||||||
Current portion of long-term debt | — | 10 | ||||||
Total current liabilities | 51,455 | 56,161 | ||||||
Long-term debt, less current portion | 170,581 | 155,595 | ||||||
Operating lease liabilities, less current portion | 42,208 | 42,599 | ||||||
Financing (capital) lease liabilities, less current portion | 65 | 53 | ||||||
Deferred income taxes | 67,012 | 65,808 | ||||||
Contract liabilities, long-term | 2,222 | 1,948 | ||||||
Deferred rent income, less current portion | 3,772 | 3,705 | ||||||
Other long-term liabilities | 586 | 65 | ||||||
Total liabilities | 337,901 | 325,934 | ||||||
Commitments and contingencies (Note 14) | 0 | 0 | ||||||
Stockholders’ Equity: | ||||||||
Class A common stock, $0.01 par value; authorized 80,000,000 shares; 23,922,974 and 23,978,741 issued and 21,605,324 and 21,661,091 outstanding at December 31, 2021 and June 30, 2022, respectively | 232 | 232 | ||||||
Class B common stock, $0.01 par value; authorized 20,000,000 shares; 5,553,696 issued and outstanding at December 31, 2021 and June 30, 2022, respectively | 56 | 56 | ||||||
Additional paid-in capital | 248,438 | 248,706 | ||||||
Accumulated deficit | (36,509 | ) | (25,653 | ) | ||||
Treasury stock, at cost (2,317,650 shares at December 31, 2021 and June 30, 2022) | (34,006 | ) | (34,006 | ) | ||||
Total stockholders’ equity | 178,211 | 189,335 | ||||||
Total liabilities and stockholders’ equity | $ | 516,112 | $ | 515,269 | ||||
December 31, 2020 (Note 1) | September 30, 2021 (Unaudited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,325 | $ | 23,781 | ||||
Trade accounts receivable (net of allowances of $14,069 in 2020 and $11,680 in 2021) | 24,469 | 24,429 | ||||||
Unbilled revenue | 3,192 | 3,300 | ||||||
Other receivables (net of allowances of $124 in 2020 and $455 in 2021) | 1,122 | 1,589 | ||||||
Inventories | 495 | 907 | ||||||
Prepaid expenses | 6,847 | 7,970 | ||||||
Assets held for sale | 3,346 | 1,875 | ||||||
Total current assets | 45,796 | 63,851 | ||||||
Notes receivable (net of allowance of $461 in 2020 and $996 in 2021) | 721 | 364 | ||||||
Property and equipment (net of accumulated depreciation of $180,336 in 2020 and $185,127 in 2021) | 79,122 | 78,425 | ||||||
Operating lease right-of-use | 48,203 | 44,100 | ||||||
Financing lease right-of-use | 152 | 121 | ||||||
Broadcast licenses | 319,773 | 320,008 | ||||||
Goodwill | 23,757 | 23,986 | ||||||
Amortizable intangible assets (net of accumulated amortization of $58,897 in 2020 and $57,769 in 2021) | 4,017 | 2,785 | ||||||
Deferred financing costs | 213 | 895 | ||||||
Other assets | 2,817 | 3,678 | ||||||
Total assets | $ | 524,571 | $ | 538,213 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,006 | $ | 2,180 | ||||
Accrued expenses | 11,002 | 11,740 | ||||||
Accrued compensation and related expenses | 10,242 | 10,752 | ||||||
Accrued interest | 1,225 | 2,750 | ||||||
Contract liabilities | 11,652 | 11,561 | ||||||
Deferred rent income | 147 | 114 | ||||||
Income taxes payable | 563 | 626 | ||||||
Current portion of operating lease liabilities | 8,963 | 8,604 | ||||||
Current portion of financing lease liabilities | 60 | 59 | ||||||
Current portion of long-term debt | 5,000 | 0 | ||||||
Total current liabilities | 50,860 | 48,386 | ||||||
Long-term debt, less current portion | 213,764 | 208,559 | ||||||
Operating lease liabilities, less current portion | 47,740 | 43,180 | ||||||
Financing (capital) lease liabilities, less current portion | 107 | 79 | ||||||
Deferred income taxes | 68,883 | 69,287 | ||||||
Contract liabilities, long-term | 1,869 | 2,081 | ||||||
Deferred rent income, less current portion | 3,864 | 3,795 | ||||||
Other long-term liabilities | 2,205 | 2,248 | ||||||
Total liabilities | 389,292 | 377,615 | ||||||
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 23,639,824 issued and 21,129,667 and 21,322,174 outstanding at December 31, 2020 and September 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 September 30, 2021, respectively | 56 | 56 | ||||||
Additional paid-in capital | 247,025 | 247,668 | ||||||
Accumulated deficit | (78,023 | ) | (53,349 | ) | ||||
Treasury stock, at cost (2,317,650 shares at December 31, 2020 and September 30, 2021) | (34,006 | ) | (34,006 | ) | ||||
Total stockholders’ equity | 135,279 | 160,598 | ||||||
Total liabilities and stockholders’ equity | $ | 524,571 | $ | 538,213 | ||||
See accompanying notes |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Net broadcast revenue | $ | 45,391 | $ | 49,591 | $ | 130,041 | $ | 140,422 | ||||||||
Net digital media revenue | 9,808 | 10,645 | 28,355 | 30,603 | ||||||||||||
Net publishing revenue | 5,442 | 5,747 | 13,366 | 18,093 | ||||||||||||
Total net revenue | 60,641 | 65,983 | 171,762 | 189,118 | ||||||||||||
Operating expenses: | ||||||||||||||||
Broadcast operating expenses, exclusive of depreciation and amortization shown below (including $447 and $480 for the three months ended September 30, 2020 and 2021, respectively, and $1,313 and $1,369 for the nine months ended September 30, 2020 and 2021, respectively, paid to related parties) | 34,283 | 37,463 | 104,704 | 106,968 | ||||||||||||
Digital media operating expenses, exclusive of depreciation and amortization shown below | 7,144 | 8,269 | 23,123 | 25,280 | ||||||||||||
Publishing operating expenses, exclusive of depreciation and amortization shown below | 5,814 | 5,213 | 16,443 | 16,844 | ||||||||||||
Unallocated corporate expenses exclusive of depreciation and amortization shown below (including $18 and $0 for the three months ended September 30, 2020 and 2021, respectively, and $198 and $5 for the nine months ended September 30, 2020 and 2021, respectively, paid to related parties) | 3,849 | 4,284 | 11,909 | 12,764 | ||||||||||||
Debt modification costs | — | 2,347 | — | 2,347 | ||||||||||||
Depreciation | 2,677 | 2,788 | 8,108 | 8,118 | ||||||||||||
Amortization | 751 | 427 | 2,578 | 1,553 | ||||||||||||
Change in the estimated fair value of contingent earn-out consideration | (10 | ) | — | (12 | ) | — | ||||||||||
Impairment of indefinite-lived long-term assets other than goodwill | — | — | 17,254 | — | ||||||||||||
Impairment of goodwill | — | — | 307 | — | ||||||||||||
Net (gain) loss on the disposition of assets | 1,381 | (10,607 | ) | 1,494 | (10,552 | ) | ||||||||||
Total operating expenses | 55,889 | 50,184 | 185,908 | 163,322 | ||||||||||||
Operating income (loss) | 4,752 | 15,799 | (14,146 | ) | 25,796 | |||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 1 | — | 1 | 1 | ||||||||||||
Interest expense | (4,024 | ) | (4,026 | ) | (12,069 | ) | (11,887 | ) | ||||||||
Gain on the forgiveness of PPP loans | — | 11,212 | — | 11,212 | ||||||||||||
Gain (loss) on the early retirement of long-term debt | — | (56 | ) | 49 | (56 | ) | ||||||||||
Net miscellaneous income and (expenses) | 1 | 2 | (45 | ) | 87 | |||||||||||
Net income (loss) before income taxes | 730 | 22,931 | (26,210 | ) | 25,153 | |||||||||||
Provision for income taxes | 401 | 837 | 31,180 | 479 | ||||||||||||
Net income (loss) | $ | 329 | $ | 22,094 | $ | (57,390 | ) | $ | 24,674 | |||||||
Basic income (loss) per share data: | ||||||||||||||||
Basic income (loss) per share | $ | 0.01 | $ | 0.82 | $ | (2.15 | ) | $ | 0.92 | |||||||
Diluted income (loss) per share data: | ||||||||||||||||
Diluted income (loss) per share | $ | 0.01 | $ | 0.81 | $ | (2.15 | ) | $ | 0.91 | |||||||
Basic weighted average shares outstanding | 26,683,363 | 26,870,664 | 26,683,363 | 26,825,483 | ||||||||||||
Diluted weighted average shares outstanding | 27,791,353 | 27,280,949 | 26,683,363 | 27,217,382 | ||||||||||||
See accompanying notes |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Net broadcast revenue | $ | 46,783 | $ | 52,452 | $ | 90,831 | $ | 100,884 | ||||||||
Net digital media revenue | 10,339 | 10,804 | 19,958 | 21,104 | ||||||||||||
Net publishing revenue | 6,660 | 5,426 | 12,346 | 9,303 | ||||||||||||
Total net revenue | 63,782 | 68,682 | 123,135 | 131,291 | ||||||||||||
Operating expenses: | ||||||||||||||||
Broadcast operating expenses, exclusive of depreciation and amortization shown below (including $446 and $453 for the three months ended June 30, 2021 and 2022, respectively, and $889 and $901 for the six months ended June 30, 2021 and 2022, respectively, paid to related parties) | 36,162 | 42,489 | 69,505 | 80,610 | ||||||||||||
Digital media operating expenses, exclusive of depreciation and amortization shown below | 8,338 | 8,273 | 17,011 | 16,746 | ||||||||||||
Publishing operating expenses, exclusive of depreciation and amortization shown below | 6,426 | 5,432 | 11,631 | 9,899 | ||||||||||||
Unallocated corporate expenses exclusive of depreciation and amortization shown below (including $2 and $159 for the three months ended June 30, 2021 and 2022, respectively, and $5 and $168 for the six months ended June 30, 2021 and 2022, respectively, paid to related parties) | 4,192 | 4,781 | 8,480 | 9,591 | ||||||||||||
Debt modification costs | — | 20 | — | 248 | ||||||||||||
Depreciation | 2,741 | 2,858 | 5,330 | 5,800 | ||||||||||||
Amortization | 545 | 332 | 1,126 | 666 | ||||||||||||
Change in the estimated fair value of contingent earn-out consideration | — | — | — | (5 | ) | |||||||||||
Impairment of indefinite-lived long-term assets other than goodwill | — | 3,935 | — | 3,935 | ||||||||||||
Impairment of goodwill | — | 127 | — | 127 | ||||||||||||
Net (gain) loss on the disposition of assets | (263 | ) | (6,893 | ) | 55 | (8,628 | ) | |||||||||
Total operating expenses | 58,141 | 61,354 | 113,138 | 118,989 | ||||||||||||
Operating income (loss) | 5,641 | 7,328 | 9,997 | 12,302 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | — | 149 | 1 | 149 | ||||||||||||
Interest expense | (3,935 | ) | (3,389 | ) | (7,861 | ) | (6,783 | ) | ||||||||
Gain (loss) on early retirement of long-term debt | — | 35 | — | (18 | ) | |||||||||||
Earnings from equity method investment | — | 3,913 | — | 3,913 | ||||||||||||
Net miscellaneous income and (expenses) | 63 | (1 | ) | 85 | — | |||||||||||
Net income before income taxes | 1,769 | 8,035 | 2,222 | 9,563 | ||||||||||||
Benefit from income taxes | (488 | ) | (1,082 | ) | (358 | ) | (1,293 | ) | ||||||||
Net income | $ | 2,257 | $ | 9,117 | $ | 2,580 | $ | 10,856 | ||||||||
Basic income per share data: | ||||||||||||||||
Basic income per share | $ | 0.08 | $ | 0.33 | $ | 0.10 | $ | 0.39 | ||||||||
Diluted income per share data: | ||||||||||||||||
Diluted income per share | $ | 0.08 | $ | 0.33 | $ | 0.10 | $ | 0.39 | ||||||||
Basic weighted average shares outstanding | 26,869,145 | 27,214,787 | 26,802,892 | 27,196,081 | ||||||||||||
Diluted weighted average shares outstanding | 27,232,423 | 27,570,881 | 27,185,598 | 27,590,644 | ||||||||||||
See accompanying notes |
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 | ) | ||||||||||||||||||||||
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 | ||||||||||||||||
Stock-based compensation | — | — | — | — | 74 | — | — | 74 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 329 | — | 329 | ||||||||||||||||||||||||
Stockholders’ equity, September 30, 2020 | 23,447,317 | $ | 227 | 5,553,696 | $ | 56 | $ | 246,953 | $ | (81,351 | ) | $ | (34,006 | ) | $ | 131,879 | ||||||||||||||||
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 | ||||||||||||||||||||||||
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 | ||||||||||||||||
Stock-based compensation | — | — | — | — | 78 | — | — | 78 | ||||||||||||||||||||||||
Options exercised | 6,725 | — | — | — | 13 | — | — | 13 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 22,094 | — | 22,094 | ||||||||||||||||||||||||
Stockholders’ equity, September 30, 2021 | 23,639,824 | $ | 229 | 5,553,696 | $ | 56 | $ | 247,668 | $ | (53,349 | ) | $ | (34,006 | ) | $ | 160,598 | ||||||||||||||||
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, 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 | ||||||||||||||||||
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, 2021 | 23,922,974 | $ | 232 | 5,553,696 | $ | 56 | $ | 248,438 | $ | (36,509 | ) | $ | (34,006 | ) | $ | 178,211 | ||||||||||||||||
Stock-based compensation | — | — | — | — | 106 | — | — | 106 | ||||||||||||||||||||||||
Options exercised | 40,913 | — | — | — | 94 | — | — | 94 | ||||||||||||||||||||||||
Lapse of restricted shares | 14,854 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,739 | — | 1,739 | ||||||||||||||||||||||||
Stockholders’ equity, March 31, 2022 | 23,978,741 | $ | 232 | 5,553,696 | $ | 56 | $ | 248,638 | $ | (34,770 | ) | $ | (34,006 | ) | $ | 180,150 | ||||||||||||||||
Stock-based compensation | — | — | — | — | 68 | — | — | 68 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 9,117 | — | 9,117 | ||||||||||||||||||||||||
Stockholders’ equity, June 30, 2022 | 23,978,741 | $ | 232 | 5,553,696 | $ | 56 | $ | 248,706 | $ | (25,653 | ) | $ | (34,006 | ) | $ | 189,335 | ||||||||||||||||
Nine Months Ended September 30, | ||||||||
2020 | 2021 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | (57,390 | ) | $ | 24,674 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Non-cash stock-based compensation | 273 | 240 | ||||||
Depreciation and amortization | 10,686 | 9,671 | ||||||
Amortization of deferred financing costs | 675 | 690 | ||||||
Non-cash lease expense | 6,745 | 6,527 | ||||||
Provision for bad debts | 4,122 | (248 | ) | |||||
Deferred income taxes | 30,954 | 404 | ||||||
Change in the estimated fair value of contingent earn-out consideration | (12 | ) | — | |||||
Impairment of indefinite-lived long-term assets other than goodwill | 17,254 | — | ||||||
Impairment of goodwill | 307 | — | ||||||
Gain on the forgiveness of PPP loans | — | (11,212 | ) | |||||
Gain (loss) on the early retirement of long-term debt | (49 | ) | 56 | |||||
Net (gain) loss on the disposition of assets | 1,494 | (10,552 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable and unbilled revenue | 2,565 | (67 | ) | |||||
Inventories | 99 | (412 | ) | |||||
Prepaid expenses and other current assets | (1,343 | ) | (1,218 | ) | ||||
Accounts payable and accrued expenses | 5,871 | 2,596 | ||||||
Operating lease liabilities | (6,396 | ) | (7,317 | ) | ||||
Contract liabilities | 5,274 | 782 | ||||||
Deferred rent income | (268 | ) | 28 | |||||
Other liabilities | 2,254 | 41 | ||||||
Income taxes payable | 30 | 63 | ||||||
Net cash provided by operating activities | 23,145 | 14,746 | ||||||
INVESTING ACTIVITIES | ||||||||
Cash paid for capital expenditures net of tenant improvement allowances | (3,565 | ) | (6,952 | ) | ||||
Capital expenditures reimbursable under tenant improvement allowances and trade agreements | (140 | ) | (138 | ) | ||||
Deposit on broadcast assets and radio station acquisitions | — | (100 | ) | |||||
Purchases of broadcast assets and radio stations | — | (600 | ) | |||||
Purchases of digital media businesses and assets | (400 | ) | (3,980 | ) | ||||
Proceeds from sale of long-lived assets | 188 | 15,771 | ||||||
Proceeds from the cash surrender value of life insurance policies | 2,363 | — | ||||||
Other | (353 | ) | (1,227 | ) | ||||
Net cash provided by (used in) investing activities | (1,907 | ) | 2,774 | |||||
FINANCING ACTIVITIES | ||||||||
Proceeds from 2028 Notes | — | 114,731 | ||||||
Payments to repurchase or exchange 2024 Notes | (3,392 | ) | (119,443 | ) | ||||
Proceeds from borrowings under ABL Facility | 38,626 | 16 | ||||||
Payments on ABL Facility | (34,452 | ) | (5,016 | ) | ||||
Proceeds from borrowings under PPP Loans | — | 11,195 | ||||||
Payments under PPP loans | — | 17 | ||||||
Payments of debt issuance costs | (124 | ) | (1,921 | ) | ||||
Proceeds from the exercise of stock options | — | 405 | ||||||
Payments on financing lease liabilities | (52 | ) | (48 | ) | ||||
Payment of cash distribution on common stock | (667 | ) | — | |||||
Book overdraft | (1,885 | ) | — | |||||
Net cash used in financing activities | (1,946 | ) | (64 | ) | ||||
Net increase in cash and cash equivalents | 19,292 | 17,456 | ||||||
Cash and cash equivalents at beginning of year | 6 | 6,325 | ||||||
Cash and cash equivalents at end of period | $ | 19,298 | $ | 23,781 | ||||
Six Months Ended June 30, | ||||||||
2021 | 2022 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 2,580 | $ | 10,856 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Non-cash stock-based compensation | 162 | 174 | ||||||
Depreciation and amortization | 6,456 | 6,466 | ||||||
Amortization of deferred financing costs | 426 | 496 | ||||||
Non-cash lease expense | 4,348 | 4,414 | ||||||
Provision for bad debts | (325 | ) | (102 | ) | ||||
Deferred income taxes | (403 | ) | (1,204 | ) | ||||
Change in the estimated fair value of contingent earn-out consideration | — | (5 | ) | |||||
Impairment of indefinite-lived long-term assets other than goodwill | — | 3,935 | ||||||
Impairment of goodwill | — | 127 | ||||||
(Gain) loss on early retirement of long-term debt | — | 18 | ||||||
Net (gain) loss on the disposition of assets | 55 | (8,628 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable and unbilled revenue | 421 | (5,314 | ) | |||||
Inventories | (224 | ) | (568 | ) | ||||
Prepaid expenses and other current assets | (319 | ) | (1,608 | ) | ||||
Accounts payable and accrued expenses | 453 | 5,162 | ||||||
Operating lease liabilities | (4,931 | ) | (4,324 | ) | ||||
Contract liabilities | 1,310 | (167 | ) | |||||
Deferred rent income | 111 | (88 | ) | |||||
Other liabilities | 35 | (518 | ) | |||||
Income taxes payable | 42 | (1,322 | ) | |||||
Net cash provided by operating activities | 10,197 | 7,800 | ||||||
INVESTING ACTIVITIES | ||||||||
Cash paid for capital expenditures net of tenant improvement allowances | (3,994 | ) | (6,153 | ) | ||||
Capital expenditures reimbursable under tenant improvement allowances and trade agreements | (19 | ) | (52 | ) | ||||
Deposit on broadcast assets and radio station acquisitions | (100 | ) | — | |||||
Purchases of broadcast assets and radio stations | (600 | ) | (548 | ) | ||||
Purchases of digital media businesses and assets | (1,300 | ) | (190 | ) | ||||
Return of equity investment in OneParty America LLC | — | 4,500 | ||||||
Equity investment in OneParty America LLC | (500 | ) | (3,500 | ) | ||||
Proceeds from sale of assets | 3,627 | 14,150 | ||||||
Other | (314 | ) | 106 | |||||
Net cash provided by (used in) investing activities | (3,200 | ) | 8,313 | |||||
FINANCING ACTIVITIES | ||||||||
Payments to repurchase 2024 Notes | — | (15,394 | ) | |||||
Proceeds from borrowings under ABL Facility | 16 | 26,229 | ||||||
Payments on ABL Facility | (5,016 | ) | (26,219 | ) | ||||
Proceeds from borrowings under PPP Loans | 11,195 | — | ||||||
Payments of debt issuance costs | (19 | ) | (37 | ) | ||||
Proceeds from the exercise of stock options | 392 | 94 | ||||||
Payments on financing lease liabilities | (32 | ) | (31 | ) | ||||
Net cash provided by (used in) financing activities | 6,536 | (15,358 | ) | |||||
Net increase in cash and cash equivalents | 13,533 | 755 | ||||||
Cash and cash equivalents at beginning of year | 6,325 | 1,785 | ||||||
Cash and cash equivalents at end of period | $ | 19,858 | $ | 2,540 | ||||
Nine Months Ended September 30, | ||||||||
2020 | 2021 | |||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Cash paid for interest, net of capitalized interest | $ | 7,731 | $ | 9,628 | ||||
Cash paid for interest on finance lease liabilities | $ | 6 | $ | 6 | ||||
Net cash paid for (received from) income taxes | $ | 196 | $ | 13 | ||||
Other supplemental disclosures of cash flow information: | ||||||||
Barter revenue | $ | 2,152 | $ | 1,647 | ||||
Barter expense | $ | 1,971 | $ | 1,699 | ||||
Non-cash investing and financing activities: | ||||||||
Capital expenditures reimbursable under tenant improvement allowances | $ | 140 | $ | 138 | ||||
Deferred payments on acquisitions | $ | 708 | 0 | |||||
Right-of-use | $ | 2,715 | $ | 3,466 | ||||
Right-of-use | $ | — | $ | 17 | ||||
Non-cash capital expenditures for property & equipment acquired under trade agreements | $ | 4 | $ | 27 | ||||
Net assets and liabilities assumed in a non-cash acquisition | $ | — | $ | 311 | ||||
Estimated present value of contingent-earn out consideration | $ | — | $ | 11 | ||||
See accompanying notes |
Six Months Ended June 30, | ||||||||
2021 | 2022 | |||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Cash paid for interest, net of capitalized interest | $ | 7,391 | $ | 6,156 | ||||
Cash paid for interest on finance lease liabilities | $ | 4 | $ | 4 | ||||
Net cash paid for (received from) income taxes | $ | 3 | $ | 1,233 | ||||
Other supplemental disclosures of cash flow information: | ||||||||
Barter revenue | $ | 1,065 | $ | 1,525 | ||||
Barter expense | $ | 1,092 | $ | 1,632 | ||||
Non-cash investing and financing activities: | ||||||||
Capital expenditures reimbursable under tenant improvement allowances | $ | 19 | $ | 52 | ||||
Right-of-use | $ | 1,957 | $ | 5,569 | ||||
Right-of-use | $ | 4 | $ | 17 | ||||
Non-cash capital expenditures for property & equipment acquired under trade agreements | $ | 27 | $ | — | ||||
Net assets and liabilities assumed in a non-cash acquisition | $ | 129 | $ | — | ||||
Estimated present value of contingent-earn out consideration | $ | 11 | $ | 6 | ||||
See accompanying notes |
Date | Principal Repurchased | Cash Paid | % of Face Value | Bond Issue Costs | Net Gain (Loss) | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
June 13, 2022 | $ | 5,000 | $ | 4,947 | 98.95 | % | $ | 35 | $ | 18 | ||||||||||
June 10, 2022 | 3,000 | 2,970 | 99.00 | % | 21 | 9 | ||||||||||||||
June 7, 2022 | 2,464 | 2,446 | 99.25 | % | 17 | 1 | ||||||||||||||
May 17, 2022 | 2,525 | 2,500 | 99.00 | % | 18 | 7 | ||||||||||||||
January 12, 2022 | 2,500 | 2,531 | 101.26 | % | 22 | (53 | ) |
Acquisition Date | Description | Total Consideration | ||||
(Dollars in thousands) | ||||||
July 2, 2021 | SeniorResource.com (asset acquisition) | $ | 80 | |||
July 1, 2021 | ShiftWorship.com (business acquisition) | 2,600 | ||||
June 1, 2021 | KDIA-AM andKDYA-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 | ||||
$ | 4,707 | |||||
Description | Total Consideration | |||
(Dollars in thousands) | ||||
Cash payments made upon closing | $ | 738 | ||
Escrow deposits paid in prior years | 60 | |||
Total purchase price consideration | $ | 798 | ||
Description | Total Consideration | |||
(Dollars in thousands) | ||||
Cash payments made upon closing | $ | 4,580 | ||
Deferred payments | 116 | |||
Present value of estimated fair value of contingent earn-out consideration | 11 | |||
Total purchase price consideration | $ | 4,707 | ||
Net Broadcast Assets Acquired | Net Digital Assets Acquired | Total Net Assets | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Assets | ||||||||||||||
Property and equipment | $ | 361 | $ | 3,221 | $ | 3,582 | ||||||||
Broadcast licenses | 235 | 0 | 235 | |||||||||||
Goodwill | 4 | 225 | 229 | |||||||||||
Customer lists and contracts | 0 | 789 | 789 | |||||||||||
Domain and brand names | 0 | 66 | 66 | |||||||||||
$ | 600 | $ | 4,301 | $ | 4,901 | |||||||||
Liabilities | ||||||||||||||
Contract liabilities, short-term | 0 | (194 | ) | (194 | ) | |||||||||
$ | 600 | $ | 4,107 | $ | 4,707 | |||||||||
Net Broadcast Assets | Net Digital Media Assets | Total Net Assets | ||||||||||||
Assets | ||||||||||||||
Property and equipment | $ | 418 | 166 | 584 | ||||||||||
Broadcast licenses | 190 | — | 190 | |||||||||||
Goodwill | — | 2 | 2 | |||||||||||
Domain and brand names | — | 11 | 11 | |||||||||||
Non-Compete agreement | — | 11 | 11 | |||||||||||
$ | 608 | $ | 190 | $ | 798 | |||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||
Broadcast | Digital Media | Publishing | Consolidated | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
By Source of Revenue: | ||||||||||||||||
Block Programming – National | $ | 35,824 | $ | 0— | $ | 0— | $ | 35,824 | ||||||||
Block Programming – Local | 18,072 | 0— | 0— | 18,072 | ||||||||||||
Spot Advertising – National | 10,565 | 0— | 0— | 10,565 | ||||||||||||
Spot Advertising – Local | 30,123 | 0— | 0— | 30,123 | ||||||||||||
Infomercials | 682 | 0— | 0— | 682 | ||||||||||||
Network | 14,729 | 0— | 0— | 14,729 | ||||||||||||
Digital Advertising | 18,415 | 13,859 | 132 | 32,406 | ||||||||||||
Digital Streaming | 3,559 | 2,579 | 0— | 6,138 | ||||||||||||
Digital Downloads and eBooks | 509 | 4,637 | 1,294 | 6,440 | ||||||||||||
Subscriptions | 828 | 9,227 | 262 | 10,317 | ||||||||||||
Book Sales and e-commerce, net of estimated sales returns and allowances | 289 | 163 | 10,851 | 11,303 | ||||||||||||
Self-Publishing Fees | 0— | 0— | 4,730 | 4,730 | ||||||||||||
Print Advertising | 2 | 0— | 123 | 125 | ||||||||||||
Other Revenues | 6,825 | 138 | 701 | 7,664 | ||||||||||||
$ | 140,422 | $ | 30,603 | $ | 18,093 | $ | 189,118 | |||||||||
Timing of Revenue Recognition | ||||||||||||||||
Point in Time | $ | 138,540 | $ | 30,603 | $ | 18,093 | $ | 187,236 | ||||||||
Rental Income (1) | 1,882 | 0— | 0— | 1,882 | ||||||||||||
$ | 140,422 | $ | 30,603 | $ | 18,093 | $ | 189,118 | |||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||
Broadcast | Digital Media | Publishing | Consolidated | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
By Source of Revenue: | ||||||||||||||||
Block Programming – National | $ | 26,399 | $ | — | $ | — | $ | 26,399 | ||||||||
Block Programming – Local | 12,049 | — | — | 12,049 | ||||||||||||
Broadcast Programming Revenue | 38,448 | — | — | 38,448 | ||||||||||||
Spot Advertising – National | 7,700 | — | — | 7,700 | ||||||||||||
Spot Advertising – Local | 21,552 | — | — | 21,552 | ||||||||||||
Network Advertising | 10,240 | — | — | 10,240 | ||||||||||||
Broadcast Advertising Revenue | 39,492 | — | — | 39,492 | ||||||||||||
Infomercials | 373 | — | — | 373 | ||||||||||||
Other Revenue | 4,484 | — | — | 4,484 | ||||||||||||
Other Broadcast Revenue | 4,857 | — | — | 4,857 | ||||||||||||
Digital Advertising | 14,112 | 9,088 | — | 23,200 | ||||||||||||
Digital Streaming | 2,492 | 1,798 | — | 4,290 | ||||||||||||
Digital Downloads | 387 | 3,797 | — | 4,184 | ||||||||||||
Digital Subscriptions | 503 | 6,343 | — | 6,846 | ||||||||||||
Other Digital Revenue | 593 | 78 | — | 671 | ||||||||||||
Digital Revenue | 18,087 | 21,104 | — | 39,191 | ||||||||||||
Book Sales | — | — | 6,204 | 6,204 | ||||||||||||
Estimated Sales Returns & Allowances | — | — | (1,444 | ) | (1,444 | ) | ||||||||||
Net Book Sales | — | — | 4,760 | 4,760 | ||||||||||||
E-Book Sales | — | — | 625 | 625 | ||||||||||||
Self-Publishing Fees | — | — | 3,379 | 3,379 | ||||||||||||
Other Publishing Revenue | — | — | 539 | 539 | ||||||||||||
Publishing Revenue | — | — | 9,303 | 9,303 | ||||||||||||
$ | 100,884 | $ | 21,104 | $ | 9,303 | $ | 131,291 | |||||||||
Timing of Revenue Recognition | ||||||||||||||||
Point in Time | $ | 99,744 | $ | 21,104 | $ | 9,303 | $ | 130,151 | ||||||||
Rental Income (1) | 1,140 | — | — | 1,140 | ||||||||||||
$ | 100,884 | $ | 21,104 | $ | 9,303 | $ | 131,291 | |||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||
Broadcast | Digital Media | Publishing | Consolidated | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
By Source of Revenue: | ||||||||||||||||
Block Programming – National | $ | 35,536 | $ | — | $ | — | $ | 35,536 | ||||||||
Block Programming – Local | 18,211 | — | — | 18,211 | ||||||||||||
Spot Advertising – National | 10,179 | — | — | 10,179 | ||||||||||||
Spot Advertising – Local | 28,630 | — | — | 28,630 | ||||||||||||
Infomercials | 750 | — | — | 750 | ||||||||||||
Network | 13,505 | — | — | 13,505 | ||||||||||||
Digital Advertising | 10,676 | 14,473 | 216 | 25,365 | ||||||||||||
Digital Streaming | 1,981 | 2,611 | — | 4,592 | ||||||||||||
Digital Downloads and eBooks | 3,049 | 4,291 | 960 | 8,300 | ||||||||||||
Subscriptions | 868 | 6,679 | 519 | 8,066 | ||||||||||||
Book Sales and e-commerce, net of estimated sales returns and allowances | 1,128 | 108 | 6,849 | 8,085 | ||||||||||||
Self-Publishing Fees | — | — | 3,860 | 3,860 | ||||||||||||
Print Advertising | 1 | — | 278 | 279 | ||||||||||||
Other Revenues | 5,527 | 193 | 684 | 6,404 | ||||||||||||
$ | 130,041 | $ | 28,355 | $ | 13,366 | $ | 171,762 | |||||||||
Timing of Revenue Recognition | ||||||||||||||||
Point in Time | $ | 128,157 | $ | 28,319 | $ | 13,366 | $ | 169,842 | ||||||||
Rental Income (1) | 1,884 | 36 | — | 1,920 | ||||||||||||
$ | 130,041 | $ | 28,355 | $ | 13,366 | $ | 171,762 | |||||||||
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 | ||||||||||||
Broadcast Programming Revenue | 35,095 | — | — | 35,095 | ||||||||||||
Spot Advertising – National | 7,118 | — | — | 7,118 | ||||||||||||
Spot Advertising – Local | 19,441 | — | — | 19,441 | ||||||||||||
Network Advertising | 9,821 | — | — | 9,821 | ||||||||||||
Broadcast Advertising Revenue | 36,380 | — | — | 36,380 | ||||||||||||
Infomercials | 462 | — | — | 462 | ||||||||||||
Other Revenue | 4,097 | — | — | 4,097 | ||||||||||||
Other Broadcast Revenue | 4,559 | — | — | 4,559 | ||||||||||||
Digital Advertising | 11,745 | 8,806 | 132 | 20,683 | ||||||||||||
Digital Streaming | 2,093 | 1,706 | — | 3,799 | ||||||||||||
Digital Downloads | 200 | 3,267 | — | 3,467 | ||||||||||||
Digital Subscriptions | 562 | 6,072 | — | 6,634 | ||||||||||||
Other Digital Revenue | 197 | 107 | — | 304 | ||||||||||||
Digital Revenue | 14,797 | 19,958 | 132 | 34,887 | ||||||||||||
Book Sales | — | — | 10,513 | 10,513 | ||||||||||||
Estimated Sales Returns & Allowances | — | — | (3,011 | ) | (3,011 | ) | ||||||||||
Net Book Sales | — | — | 7,502 | 7,502 | ||||||||||||
E-Book Sales | — | — | 792 | 792 | ||||||||||||
Self-Publishing Fees | — | — | 3,174 | 3,174 | ||||||||||||
Publishing Magazine Subscriptions | — | — | 262 | 262 | ||||||||||||
Other Publishing Revenue | — | — | 484 | 484 | ||||||||||||
Publishing Revenue | — | — | 12,214 | 12,214 | ||||||||||||
$ | 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 | |||||||||
(1) | Rental income is not applicable to 10-Q. |
Short Term | Long-Term | |||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period January 1, 2022 | $ | 12,294 | $ | 2,222 | ||||
Revenue recognized during the period that was included in the beginning balance of contract liabilities | (6,868 | ) | — | |||||
Additional amounts recognized during the period | 12,525 | 424 | ||||||
Revenue recognized during the period that was recorded during the period | (6,248 | ) | — | |||||
Transfers | 698 | (698 | ) | |||||
Balance, end of period June 30, 2022 | $ | 12,401 | $ | 1,948 | ||||
Amount refundable at beginning of period | $ | 12,282 | $ | 2,222 | ||||
Amount refundable at end of period | $ | 12,389 | $ | 1,948 |
Amount | ||||
For the Year Ended June 30, | (Dollars in thousands) | |||
2023 | $ | 12,401 | ||
2024 | 1,264 | |||
2025 | 448 | |||
2026 | 138 | |||
2027 | 98 | |||
Thereafter | 0— | |||
$ | 14,349 | |||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net broadcast barter revenue | $ | 444 | $ | 582 | $ | 2,118 | $ | 1,647 | ||||||||
Net digital media barter revenue | — | — | — | — | ||||||||||||
Net publishing barter revenue | 3 | — | 34 | — | ||||||||||||
Net broadcast barter expense | $ | 413 | $ | 619 | $ | 1,971 | $ | 1,704 | ||||||||
Net digital media barter expense | — | 0— | — | 0— | ||||||||||||
Net publishing barter expense | — | (2 | ) | — | (5 | ) |
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 | (7,770 | ) | 0— | |||||
Additional amounts recognized during the period | 19,742 | 883 | ||||||
Revenue recognized during the period that was recorded during the period | (12,734 | ) | 0— | |||||
Transfers | 671 | (671 | ) | |||||
Balance, end of period September 30, 2021 | $ | 11,561 | $ | 2,081 | ||||
Amount refundable at beginning of period | $ | 11,607 | $ | 1,869 | ||||
Amount refundable at end of period | $ | 11,549 | $ | 2,081 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net broadcast barter revenue | $ | 674 | $ | 679 | $ | 1,065 | $ | 1,525 | ||||||||
Net digital media barter revenue | — | — | — | — | ||||||||||||
Net publishing barter revenue | — | — | — | — | ||||||||||||
Net broadcast barter expense | $ | 712 | $ | 873 | $ | 1,085 | $ | 1,632 | ||||||||
Net digital media barter expense | 0— | 0— | — | — | ||||||||||||
Net publishing barter expense | 7 | — | 7 | — |
Amount | ||||
For the Twelve Months Ended September 30, | (Dollars in thousands) | |||
2022 | $ | 11,561 | ||
2023 | 979 | |||
2024 | 787 | |||
2025 | 238 | |||
2026 | 77 | |||
Thereafter | 0 | |||
$ | 13,642 | |||
December 31, 2020 | September 30, 2021 | |||||||
(Dollars in thousands) | ||||||||
Buildings | $ | 28,922 | $ | 28,567 | ||||
Office furnishings and equipment | 36,875 | 36,592 | ||||||
Antennae, towers and transmitting equipment | 78,057 | 77,543 | ||||||
Studio, production, and mobile equipment | 29,023 | 29,333 | ||||||
Computer software and website development costs | 33,928 | 38,272 | ||||||
Record and tape libraries | 17 | — | ||||||
Automobiles | 1,514 | 1,492 | ||||||
Leasehold improvements | 18,187 | 18,703 | ||||||
$ | 226,523 | $ | 230,502 | |||||
Less accumulated depreciation | (180,336 | ) | (185,127 | ) | ||||
46,187 | 45,375 | |||||||
Land | $ | 30,254 | $ | 27,040 | ||||
Construction-in-progress | 2,681 | 6,010 | ||||||
$ | 79,122 | $ | 78,425 | |||||
As of | ||||||||
December 31, 2021 | June 30, 2022 | |||||||
(Dollars in thousands) | ||||||||
Buildings | $ | 28,593 | $ | 28,406 | ||||
Office furnishings and equipment | 36,598 | 36,601 | ||||||
Antennae, towers and transmitting equipment | 77,813 | 74,937 | ||||||
Studio, production, and mobile equipment | 29,498 | 29,094 | ||||||
Computer software and website development costs | 38,271 | 39,265 | ||||||
Automobiles | 1,515 | 1,556 | ||||||
Leasehold improvements | 18,104 | 17,739 | ||||||
$ | 230,392 | $ | 227,598 | |||||
Less accumulated depreciation | (186,053 | ) | (186,881 | ) | ||||
44,339 | $ | 40,717 | ||||||
Land | $ | 26,896 | 26,893 | |||||
Construction-in-progress | 8,104 | 12,103 | ||||||
Property and Equipment, net | $ | 79,339 | $ | 79,713 | ||||
September 30, 2021 | ||||||||||||||||||||||||
(Dollars in thousands) | June 30, 2022 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Operating Leases | Related Party | Other | Total | Related Party | Other | Total | ||||||||||||||||||
Operating leases ROU assets | $ | 6,303 | $ | 37,797 | $ | 44,100 | $ | 6,717 | $ | 37,303 | $ | 44,020 | ||||||||||||
Operating lease liabilities (current) | $ | 1,004 | $ | 7,600 | $ | 8,604 | $ | 877 | $ | 7,918 | $ | 8,795 | ||||||||||||
Operating lease liabilities (non-current) | 5,479 | 37,701 | 43,180 | 5,944 | 36,655 | 42,599 | ||||||||||||||||||
Total operating lease liabilities | $ | 6,483 | $ | 45,301 | $ | 51,784 | $ | 6,821 | $ | 44,573 | $ | 51,394 | ||||||||||||
Weighted Average Remaining Lease Term | ||||
Operating leases | ||||
Finance leases | ||||
Weighted Average Discount Rate | ||||
Operating leases | % | |||
Finance leases | % |
Nine Months Ended September 30, 2021 | ||||
(Dollars in thousands) | ||||
Amortization of finance lease ROU Assets | $ | 48 | ||
Interest on finance lease liabilities | 6 | |||
Finance lease expense | 54 | |||
Operating lease expense | 9,656 | |||
Variable lease expense | 430 | |||
Short-term lease expense | 444 | |||
Total lease expense | $ | 10,584 | ||
Six Months Ended June 30, 2022 | ||||
(Dollars in thousands) | ||||
Amortization of finance lease ROU Assets | $ | 30 | ||
Interest on finance lease liabilities | 4 | |||
Finance lease expense | 34 | |||
Operating lease expense | 6,479 | |||
Variable lease expense | 290 | |||
Short-term lease expense | 623 | |||
Total lease expense | $ | 7,426 | ||
Nine Months Ended September 30, 2021 | ||||
(Dollars in thousands) | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 10,403 | ||
Operating cash flows from finance leases | 4 | |||
Financing cash flows from finance leases | 48 | |||
Leased assets obtained in exchange for new operating lease liabilities | $ | 3,466 | ||
Leased assets obtained in exchange for new finance lease liabilities | 17 |
Six Months Ended June 30, 2022 | ||||
(Dollars in thousands) | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 7,519 | ||
Operating cash flows from finance leases | 2 | |||
Financing cash flows from finance leases | 31 | |||
Leased assets obtained in exchange for new operating lease liabilities | $ | 5,569 | ||
Leased assets obtained in exchange for new finance lease liabilities | 17 |
Operating Leases | ||||||||||||||||||||
Related Party | Other | Total | Finance Leases | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2021 (Oct-Dec) | $ | 1,505 | $ | 10,789 | $ | 12,294 | $ | 66 | $ | 12,360 | ||||||||||
2022 | 1,370 | 10,908 | 12,278 | 47 | 12,325 | |||||||||||||||
2023 | 1,070 | 8,533 | 9,603 | 24 | 9,627 | |||||||||||||||
2024 | 1,021 | 6,890 | 7,911 | 10 | 7,921 | |||||||||||||||
2025 | 1,089 | 5,640 | 6,729 | 1 | 6,730 | |||||||||||||||
Thereafter | 3,293 | 22,222 | 25,515 | — | 25,515 | |||||||||||||||
Undiscounted Cash Flows | $ | 9,348 | $ | 64,982 | $ | 74,330 | $ | 148 | $ | 74,478 | ||||||||||
Less: imputed interest | (2,865 | ) | (19,681 | ) | (22,546 | ) | (10 | ) | (22,556 | ) | ||||||||||
Total | $ | 6,483 | $ | 45,301 | $ | 51,784 | $ | 138 | $ | 51,922 | ||||||||||
Reconciliation to lease liabilities: | ||||||||||||||||||||
Lease liabilities – current | $ | 1,004 | $ | 7,600 | $ | 8,604 | $ | 59 | $ | 8,663 | ||||||||||
Lease liabilities – long-term | 5,479 | 37,701 | 43,180 | 79 | 43,259 | |||||||||||||||
Total Lease Liabilities | $ | 6,483 | $ | 45,301 | $ | 51,784 | $ | 138 | $ | 51,922 | ||||||||||
Operating Leases | ||||||||||||||||||||
Related Party | Other | Total | Finance Leases | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2023 (July-Dec) | $ | 1,308 | $ | 10,620 | $ | 11,928 | $ | 60 | $ | 11,988 | ||||||||||
2024 | 1,250 | 10,022 | 11,272 | 26 | 11,298 | |||||||||||||||
2025 | 1,274 | 8,547 | 9,821 | 21 | 9,842 | |||||||||||||||
2026 | 1,280 | 7,475 | 8,755 | 8 | 8,763 | |||||||||||||||
2027 | 865 | 4,355 | 5,220 | 4 | 5,224 | |||||||||||||||
Thereafter | 3,955 | 22,801 | 26,756 | 1 | 26,757 | |||||||||||||||
Undiscounted Cash Flows | $ | 9,932 | $ | 63,820 | $ | 73,752 | $ | 120 | $ | 73,872 | ||||||||||
Less: imputed interest | (3,111 | ) | (19,247 | ) | (22,358 | ) | (10 | ) | (22,368 | ) | ||||||||||
Total | $ | 6,821 | $ | 44,573 | $ | 51,394 | $ | 110 | $ | 51,504 | ||||||||||
Reconciliation to lease liabilities: | ||||||||||||||||||||
Lease liabilities – current | $ | 877 | $ | 7,918 | $ | 8,795 | $ | 57 | $ | 8,852 | ||||||||||
Lease liabilities – long-term | 5,944 | 36,655 | 42,599 | 53 | 42,652 | |||||||||||||||
Total Lease Liabilities | $ | 6,821 | $ | 44,573 | $ | 51,394 | $ | 110 | $ | 51,504 | ||||||||||
(1) | gross operating revenue in the station’s designated market area, |
(2) | normalized market share, |
(3) | normalized profit margin, |
(4) | duration of the “ramp-up” period to reach normalized operations, (which was assumed to be three years), |
(5) | estimated start-up costs (based on market size), |
(6) | ongoing replacement costs of fixed assets and working capital, |
(7) | the calculations of yearly net free cash flows to invested capital; and |
(8) | amortization of the intangible asset, or the broadcast license. |
Broadcast Licenses | December 31, 2020 | June 30, 2022 | ||
Risk-adjusted discount rate | 8.5% | 9.5% | ||
Operating profit margin ranges | 3.9% - 30.9%% | 3.9% - 30.9% | ||
Long-term revenue growth rates | 0.4% - 0.7% | 0.4% - 0.7% |
Market Cluster | Excess Fair Value June 30, 2022 | |
Atlanta, GA | 61.2% | |
Boston, MA | 2.0% | |
Chicago, IL | 1.7% | |
Cleveland, OH | 10.0% | |
Col Springs, CO | 36.9% | |
Columbus, OH | (7.8)% | |
Dallas, TX | (3.0)% | |
Greenville, SC | (4.2)% | |
Honolulu, HI | (4.8)% | |
Little Rock, AR | 8.9% | |
Minneapolis, MN | 126.6% | |
Orlando FL | (5.5)% | |
Philadelphia, PA | 1.1% | |
Portland, OR | (0.5)% | |
Sacramento, CA | (5.6)% | |
San Diego, CA | 31.2% | |
San Francisco, CA | 7.0% |
Broadcast Licenses | Twelve Months Ended December 31, 2020 | Nine Months Ended September 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 | ||||
Broadcast Licenses | Twelve Months Ended December 31, 2021 | Six Months Ended June 30, 2022 | ||||||
(Dollars in thousands) | ||||||||
Balance before cumulative loss on impairment, beginning of period | $ | 434,209 | $ | 434,444 | ||||
Accumulated loss on impairment, beginning of period | (114,436 | ) | (114,436 | ) | ||||
Balance after cumulative loss on impairment, beginning of period | 319,773 | 320,008 | ||||||
Acquisitions of radio stations | 235 | 190 | ||||||
Dispositions of radio stations and FM translators | — | (2,763 | ) | |||||
Loss on impairment | — | (3,935 | ) | |||||
Balance, end of period after cumulative loss on impairment | $ | 320,008 | $ | 313,500 | ||||
Balance, end of period before cumulative loss on impairment | $ | 434,444 | $ | 429,566 | ||||
Accumulated loss on impairment, end of period | (114,436 | ) | (116,066 | ) | ||||
Balance, end of period after cumulative loss on impairment | $ | 320,008 | $ | 313,500 | ||||
Broadcast Markets Enterprise Valuations | December 31, 2021 | June 30, 2022 | ||
Risk-adjusted discount rate | 8.5% | 9.5% | ||
Operating profit margin ranges | (1.4%) – 15.0% | (7.8%) – 15.0% | ||
Long-term revenue growth rates | 0.4% | 0.4% |
Goodwill | Twelve Months Ended December 31, 2020 | Nine Months Ended September 30, 2021 | ||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period before cumulative loss on | $ | 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 | — | 225 | ||||||
Impairments based on the estimated fair value goodwill | (307 | ) | — | |||||
Ending period balance | $ | 23,757 | $ | 23,986 | ||||
Balance, end of period before cumulative loss on impairment | 28,520 | 28,749 | ||||||
Accumulated loss on impairment | (4,763 | ) | (4,763 | ) | ||||
Ending period balance | $ | 23,757 | $ | 23,986 | ||||
Goodwill | Twelve Months Ended December 31, 2021 | Six Months Ended June 30, 2022 | ||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period before cumulative loss on impairment, | $ | 28,520 | $ | 28,749 | ||||
Accumulated loss on impairment | (4,763 | ) | (4,763 | ) | ||||
Balance, beginning of period after cumulative loss on impairment | 23,757 | 23,986 | ||||||
Acquisitions of radio stations | 4 | — | ||||||
Acquisitions of digital media entities | 225 | 2 | ||||||
Loss on impairment | — | (127 | ) | |||||
Ending period balance | $ | 23,986 | $ | 23,861 | ||||
Balance, end of period before cumulative loss on impairment | 28,749 | 28,751 | ||||||
Accumulated loss on impairment | (4,763 | ) | (4,890 | ) | ||||
Ending period balance | $ | 23,986 | $ | 23,861 | ||||
September 30, 2021 | ||||||||||||
Accumulated | ||||||||||||
Cost | Amortization | Net | ||||||||||
(Dollars in thousands) | ||||||||||||
Customer lists and contracts | $ | 23,700 | $ | (21,987 | ) | $ | 1,713 | |||||
Domain and brand names | 19,875 | (19,340 | ) | 535 | ||||||||
Favorable and assigned leases | 2,188 | (1,955 | ) | 233 | ||||||||
Subscriber base and lists | 8,647 | (8,343 | ) | 304 | ||||||||
Author relationships | 2,771 | (2,771 | ) | — | ||||||||
Non-compete agreements | 2,041 | (2,041 | ) | — | ||||||||
Other amortizable intangible assets | 1,332 | (1,332 | ) | — | ||||||||
$ | 60,554 | $ | (57,769 | ) | $ | 2,785 | ||||||
As of June 30, 2022 | ||||||||||||
Accumulated | ||||||||||||
Cost | Amortization | Net | ||||||||||
(Dollars in thousands) | ||||||||||||
Customer lists and contracts | $ | 23,700 | $ | (22,609 | ) | $ | 1,091 | |||||
Domain and brand names | 19,886 | (19,581 | ) | 305 | ||||||||
Favorable and assigned leases | 2,188 | (1,968 | ) | 220 | ||||||||
Subscriber base and lists | 8,647 | (8,474 | ) | 173 | ||||||||
Author relationships | 2,771 | (2,771 | ) | — | ||||||||
Non-compete agreements | 2,052 | (2,042 | ) | 10 | ||||||||
Other amortizable intangible assets | 1,332 | (1,332 | ) | — | ||||||||
$ | 60,576 | $ | (58,777 | ) | $ | 1,799 | ||||||
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 | ||||||
As of December 31, 2021 | ||||||||||||
Accumulated | ||||||||||||
Cost | Amortization | Net | ||||||||||
(Dollars in thousands) | ||||||||||||
Customer lists and contracts | $ | 23,700 | $ | (22,198 | ) | $ | 1,502 | |||||
Domain and brand names | 19,875 | (19,421 | ) | 454 | ||||||||
Favorable and assigned leases | 2,188 | (1,960 | ) | 228 | ||||||||
Subscriber base and lists | 8,647 | (8,387 | ) | 260 | ||||||||
Author relationships | 2,771 | (2,771 | ) | — | ||||||||
Non-compete agreements | 2,041 | (2,041 | ) | — | ||||||||
Other amortizable intangible assets | 1,332 | (1,332 | ) | — | ||||||||
$60,554 | $(58,110) | $2,444 | ||||||||||
Year Ended December 31, | Amortization Expense | |||
(Dollars in thousands) | ||||
2021 (Oct – Dec) | $ | 341 | ||
2022 | 1,219 | |||
2023 | 796 | |||
2024 | 205 | |||
2025 | 21 | |||
Thereafter | 203 | |||
Total | $ | 2,785 | ||
Year Ended December 31, | Amortization Expense | |||
(Dollars in thousands) | ||||
2022 (July – Dec) | $ | 557 | ||
2023 | 803 | |||
2024 | 209 | |||
2025 | 24 | |||
2026 | 14 | |||
Thereafter | 192 | |||
Total | $ | 1,799 | ||
December 31, 2020 | September 30, 2021 | |||||||
(Dollars in thousands) | ||||||||
7.125% Senior Secured Notes | $ | — | $ | 114,731 | ||||
Less unamortized discount and debt issuance costs based on imputed interest rate of 7.64% | — | (4,048 | ) | |||||
7.125% Senior Secured Notes net carrying value | — | 110,683 | ||||||
6.75% Senior Secured Notes | 216,341 | 98,815 | ||||||
Less unamortized debt issuance costs based on imputed interest rate of 7.10% | (2,577 | ) | (939 | ) | ||||
6.75% Senior Secured Notes net carrying value | 213,764 | 97,876 | ||||||
Asset-Based Revolving Credit Facility principal outstanding (1) | 5,000 | — | ||||||
SBA Paycheck Protection Program loans | — | 0— | ||||||
Long-term debt less unamortized discount and debt issuance costs | $ | 218,764 | $ | 208,559 | ||||
Less current portion | (5,000 | ) | — | |||||
Long-term debt less unamortized discount and debt issuance costs, net of current portion | $ | 213,764 | $ | 208,559 | ||||
December 31, 2021 | June 30, 2022 | |||||||
(Dollars in thousands) | ||||||||
2028 Notes | $ | 114,731 | $ | 114,731 | ||||
Less unamortized discount and debt issuance costs based on imputed interest rate of 7.64% | (3,844 | ) | (3,549 | ) | ||||
2028 Notes, net carrying value | 110,887 | 111,182 | ||||||
2024 Notes | 60,174 | 44,685 | ||||||
Less unamortized debt issuance costs based on imputed interest rate of 7.10% | (480 | ) | (272 | ) | ||||
2024 Notes, net carrying value | 59,694 | 44,413 | ||||||
Asset-Based Revolving Credit Facility principal outstanding (1) | — | 10 | ||||||
Long-term debt less unamortized discount and debt issuance costs | $ | 170,581 | $ | 155,605 | ||||
Less current portion | — | (10 | ) | |||||
Long-term debt less unamortized discount and debt issuance costs, net of current portion | $ | 170,581 | $ | 155,595 | ||||
(1) | As of |
Date | Principal Repurchased | Cash Paid | % of Face Value | Bond Issue Costs | Net Gain (Loss) | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
June 13, 2022 | $ | 5,000 | $ | 4,947 | 98.95 | % | $ | 35 | $ | 18 | ||||||||||
June 10, 2022 | 3,000 | 2,970 | 99.00 | % | 21 | 9 | ||||||||||||||
June 7, 2022 | 2,464 | 2,446 | 99.25 | % | 17 | 1 | ||||||||||||||
May 17, 2022 | 2,525 | 2,500 | 99.00 | % | 18 | 7 | ||||||||||||||
January 12, 2022 | 2,500 | 2,531 | 101.26 | % | 22 | (53 | ) | |||||||||||||
December 10, 2021 | 35,000 | 35,591 | 101.69 | % | 321 | (912 | ) | |||||||||||||
October 25, 2021 | 2,000 | 2,020 | 101.00 | % | 19 | (39 | ) | |||||||||||||
October 12, 2021 | 250 | 251 | 100.38 | % | 2 | (3 | ) | |||||||||||||
October 5, 2021 | 763 | 766 | 100.38 | % | 7 | (10 | ) | |||||||||||||
October 4, 2021 | 628 | 629 | 100.13 | % | 6 | (7 | ) | |||||||||||||
September 24, 2021 | 4,700 | 4,712 | 100.25 | % | 44 | (56 | ) | |||||||||||||
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 | ||||||||||||||
$ | 97,489 | $ | 94,949 | $ | 1,218 | $ | 1,322 | |||||||||||||
Amount | ||||
For the Year Ended September 30, | (Dollars in thousands) | |||
2022 | $ | 0 | ||
2023 | 0 | |||
2024 | 98,815 | |||
2025 | 0 | |||
2026 | 0 | |||
Thereafter | 114,731 | |||
$ | 213,546 | |||
Amount | ||||
For the Year Ended June 30, | (Dollars in thousands) | |||
2023 | $ | 10 | ||
2024 | 44,685 | |||
2025 | — | |||
2026 | — | |||
2027 | — | |||
Thereafter | 114,731 | |||
$ | 159,426 | |||
September 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 inaccrued expenses | $ | 11 | — | — | $ | 11 | ||||||||||
Long-term debt less unamortized discount and debt issuance costs | 208,559 | — | 208,314 | — |
June 30, 2022 | ||||||||||||||||
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 | $ | 6 | — | — | $ | 6 | ||||||||||
Long-term debt less unamortized debt issuance costs | 155,605 | — | 151,923 | — |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Stock option compensation expense included in unallocated corporate expenses | $ | 30 | $ | 23 | $ | 122 | $ | 75 | ||||||||
Stock option compensation expense included in broadcast operating expenses | 32 | 31 | 106 | 92 | ||||||||||||
Stock option compensation expense included in digital media operating expenses | 12 | 24 | 44 | 73 | ||||||||||||
Stock option compensation expense included in publishing operating expenses | — | — | 1 | — | ||||||||||||
Total stock-based compensation expense, pre-tax | $ | 74 | $ | 78 | $ | 273 | $ | 240 | ||||||||
Tax expense for stock-based compensation expense | (19 | ) | (20 | ) | (71 | ) | (62 | ) | ||||||||
Total stock-based compensation expense, net of tax | $ | 55 | $ | 58 | $ | 202 | $ | 178 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Stock option compensation expense included in unallocated corporate expenses | $ | 24 | $ | 34 | $ | 52 | $ | 36 | ||||||||
Restricted stock shares compensation expense included in corporate expenses | — | — | — | 54 | ||||||||||||
Stock option compensation expense included in broadcast operating expenses | 33 | 19 | 61 | 49 | ||||||||||||
Stock option compensation expense included in digital media operating expenses | 27 | 15 | 49 | 35 | ||||||||||||
Total stock-based compensation expense, pre-tax | $ | 84 | $ | 68 | $ | 162 | $ | 174 | ||||||||
Tax expense for stock-based compensation expense | (22 | ) | (18 | ) | (42 | ) | (45 | ) | ||||||||
Total stock-based compensation expense, net of tax | $ | 62 | $ | 50 | $ | 120 | $ | 129 | ||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||
September 30, 2020 | September 30, 2020 | September 30, 2021 | September 30, 2021 | |||||||||||||
Expected volatility | n/a | 53.96 | % | 79.99 | % | 75.98 | % | |||||||||
Expected dividends | n/a | 7.30 | % | 0.00 | % | 0.00 | % | |||||||||
Expected term (in years) | n/a | 7.6 | 8.0 | 7.8 | ||||||||||||
Risk-free interest rate | n/a | 1.14 | % | 1.27 | 1.03 | % |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||
June 30, 2021 | June 30, 2021 | June 30, 2022 | June 30, 2022 | |||||||||||||
Expected volatility | 0n/a | 74.83 | % | 0n/a | 84.69 | % | ||||||||||
Expected dividends | 0n/a | 0.00 | % | 0n/a | 0.00 | % | ||||||||||
Expected term (in years) | 0n/a | 7.7 | 0n/a | 9.5 | ||||||||||||
Risk-free interest rate | 0n/a | 0.96 | % | 0n/a | 1.61 | % |
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 | 270,000 | 2.14 | 1.55 | — | ||||||||||||||||
Exercised | (192,507 | ) | 2.11 | 0.97 | 200 | |||||||||||||||
Forfeited or expired | (157,446 | ) | 6.73 | 4.74 | — | |||||||||||||||
Outstanding at September 30, 2021 | 2,211,067 | $ | 2.95 | $ | 1.34 | 4.4 years | $ | 2,484 | ||||||||||||
Exercisable at September 30, 2021 | 1,209,942 | $ | 3.84 | $ | 1.75 | 2.6 years | $ | 640 | ||||||||||||
Expected to Vest | 950,568 | $ | 2.97 | $ | 1.35 | 4.3 years | $ | 2,391 | ||||||||||||
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, 2022 | 1,900,417 | $ | 3.01 | $ | 1.37 | 4.4 years | $ | 1,310 | ||||||||||||
Granted | 100,000 | 3.26 | 2.66 | — | ||||||||||||||||
Exercised | (40,913 | ) | 2.31 | 1.16 | 50 | |||||||||||||||
Forfeited or expired | (166,164 | ) | 6.10 | 3.47 | — | |||||||||||||||
Outstanding at June 30, 2022 | 1,793,340 | 2.76 | 1.25 | 4.5 years | $ | 549 | ||||||||||||||
Exercisable at June 30, 2022 | 1,066,090 | 3.36 | 1.40 | 3.0 years | 174 | |||||||||||||||
Expected to Vest | 690,524 | 2.78 | 1.26 | 4.5 years | $ | 530 | ||||||||||||||
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 | (41,323 | ) | 2.42 | — | 100 | |||||||||||
Forfeited | — | — | — | — | ||||||||||||
Outstanding at September 30, 2021 | 66,667 | $ | 1.50 | 0.02 years | $ | 247 | ||||||||||
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, 2022 | — | — | — | — | ||||||||||||
Granted | 14,854 | 3.66 | — | $ | 54 | |||||||||||
Lapsed | — | — | — | — | ||||||||||||
Forfeited | — | — | — | — | ||||||||||||
Outstanding at June 30, 2022 | 14,854 | 3.66 | 1.7 | $ | 31 | |||||||||||
Broadcast | Digital Media | Publishing | Unallocated Corporate Expenses | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2021 | ||||||||||||||||||||
Net revenue | $ | 49,591 | $ | 10,645 | $ | 5,747 | $ | — | $ | 65,983 | ||||||||||
Operating expenses | 37,463 | 8,269 | 5,213 | 4,284 | 55,229 | |||||||||||||||
Net operating income (loss) before depreciation, amortization, and net (gain) loss on the disposition of assets | $ | 12,128 | $ | 2,376 | $ | 534 | $ | (4,284 | ) | $ | 10,754 | |||||||||
Debt modification costs | — | — | — | 2,347 | 2,347 | |||||||||||||||
Depreciation | 1,539 | 965 | 43 | 241 | 2,788 | |||||||||||||||
Amortization | 4 | 375 | 48 | — | 427 | |||||||||||||||
Net (gain) loss on the disposition of assets | (10,505 | ) | (148 | ) | 22 | 24 | (10,607 | ) | ||||||||||||
Net operating income (loss) | $ | 21,090 | $ | 1,184 | $ | 421 | $ | (6,896 | ) | $ | 15,799 | |||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||
Net revenue | $ | 45,391 | $ | 9,808 | $ | 5,442 | $ | — | $ | 60,641 | ||||||||||
Operating expenses | 34,283 | 7,144 | 5,814 | 3,849 | 51,090 | |||||||||||||||
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 | $ | 11,108 | $ | 2,664 | $ | (372 | ) | $ | (3,849 | ) | $ | 9,551 | ||||||||
Depreciation | 1,626 | 746 | 70 | 235 | 2,677 | |||||||||||||||
Amortization | 4 | 537 | 210 | — | 751 | |||||||||||||||
Change in the estimated fair value of contingent earn-out consideration | — | (10 | ) | — | — | (10 | ) | |||||||||||||
Net (gain) loss on the disposition of assets | 1,380 | — | 1 | — | 1,381 | |||||||||||||||
Net operating income (loss) | $ | 8,098 | $ | 1,391 | $ | (653 | ) | $ | (4,084 | ) | $ | 4,752 | ||||||||
Broadcast | Digital Media | Publishing | Unallocated Corporate Expenses | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||
Net revenue | $ | 52,452 | $ | 10,804 | $ | 5,426 | $ | — | $ | 68,682 | ||||||||||
Operating expenses | 42,489 | 8,273 | 5,432 | 4,781 | 60,975 | |||||||||||||||
Net operating income (loss) before debt modification costs, depreciation, amortization, impairments, and net (gain) loss on the disposition of assets | $ | 9,963 | $ | 2,531 | $ | (6 | ) | $ | (4,781 | ) | $ | 7,707 | ||||||||
Debt modification costs | — | — | — | 20 | 20 | |||||||||||||||
Depreciation | 1,530 | 979 | 89 | 260 | 2,858 | |||||||||||||||
Amortization | 4 | 328 | — | — | 332 | |||||||||||||||
Impairment of indefinite-lived long-term assets other than goodwill | 3,935 | — | — | — | 3,935 | |||||||||||||||
Impairment of goodwill | 127 | — | — | — | 127 | |||||||||||||||
Net (gain) loss on the disposition of assets | (6,919 | ) | (1 | ) | — | 27 | (6,893 | ) | ||||||||||||
Net operating income (loss) | $ | 11,286 | $ | 1,225 | $ | (95 | ) | $ | (5,088 | ) | $ | 7,328 | ||||||||
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, change in the estimated fair value of contingent earn-out consideration, impairments, 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 | |||||||||
Broadcast | Digital Media | Publishing | Unallocated Corporate Expenses | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||
Net revenue | $ | 140,422 | $ | 30,603 | $ | 18,093 | $ | — | $ | 189,118 | ||||||||||
Operating expenses | 106,968 | 25,280 | 16,844 | 12,764 | 161,856 | |||||||||||||||
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 | $ | 33,454 | $ | 5,323 | $ | 1,249 | $ | (12,764 | ) | $ | 27,262 | |||||||||
Debt modification costs | — | — | — | �� | 2,347 | 2,347 | ||||||||||||||
Depreciation | 4,667 | 2,606 | 134 | 711 | 8,118 | |||||||||||||||
Amortization | 12 | 1,204 | 337 | — | 1,553 | |||||||||||||||
Net (gain) loss on the disposition of assets | (10,187 | ) | (83 | ) | (306 | ) | 24 | (10,552 | ) | |||||||||||
Net operating income (loss) | $ | 38,962 | $ | 1,596 | $ | 1,084 | $ | (15,846 | ) | $ | 25,796 | |||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||
Net revenue | $ | 130,041 | $ | 28,355 | $ | 13,366 | $ | — | $ | 171,762 | ||||||||||
Operating expenses | 104,704 | 23,123 | 16,443 | 11,909 | 156,179 | |||||||||||||||
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 | $ | 25,337 | $ | 5,232 | $ | (3,077 | ) | $ | (11,909 | ) | $ | 15,583 | ||||||||
Depreciation | 4,912 | 2,284 | 212 | 700 | 8,108 | |||||||||||||||
Amortization | 18 | 1,928 | 631 | 1 | 2,578 | |||||||||||||||
Change in the estimated fair value of contingent earn-out consideration | — | (12 | ) | — | — | (12 | ) | |||||||||||||
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 | 1,489 | — | 1 | 4 | 1,494 | |||||||||||||||
Net operating income (loss) | $ | 1,740 | $ | 1,022 | $ | (4,286 | ) | $ | (12,622 | ) | $ | (14,146 | ) | |||||||
Broadcast | Digital Media | Publishing | Unallocated Corporate Expenses | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||
Net revenue | $ | 100,884 | $ | 21,104 | $ | 9,303 | $ | — | $ | 131,291 | ||||||||||
Operating expenses | 80,610 | 16,746 | 9,899 | 9,591 | 116,846 | |||||||||||||||
Net operating income (loss) before debt modification costs, depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairments, and net (gain) loss on the disposition of assets | $ | 20,274 | $ | 4,358 | $ | (596 | ) | $ | (9,591 | ) | $ | 14,445 | ||||||||
Debt modification costs | — | — | — | 248 | 248 | |||||||||||||||
Depreciation | 3,186 | 1,920 | 169 | 525 | 5,800 | |||||||||||||||
Amortization | 8 | 658 | — | — | 666 | |||||||||||||||
Change in the estimated fair value of contingent earn-out consideration | — | (5 | ) | — | — | (5 | ) | |||||||||||||
Impairment of indefinite-lived long-term assets other than goodwill | 3,935 | — | — | — | 3,935 | |||||||||||||||
Impairment of goodwill | 127 | — | — | — | 127 | |||||||||||||||
Net (gain) loss on the disposition of assets | (8,657 | ) | (1 | ) | — | 30 | (8,628 | ) | ||||||||||||
Net operating income (loss) | $ | 21,675 | $ | 1,786 | $ | (765 | ) | $ | (10,394 | ) | $ | 12,302 | ||||||||
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 | |||||||||
Broadcast | Digital Media | Publishing | Unallocated Corporate | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
As of June 30, 2022 | ||||||||||||||||||||
Inventories, net | $ | — | $ | — | $ | 1,528 | $ | — | $ | 1,528 | ||||||||||
Property and equipment, net | 62,370 | 8,115 | 641 | 8,587 | 79,713 | |||||||||||||||
Broadcast licenses | 313,500 | — | — | — | 313,500 | |||||||||||||||
Goodwill | 2,622 | 19,793 | 1,446 | — | 23,861 | |||||||||||||||
Amortizable intangible assets, net | 221 | 1,578 | — | — | 1,799 | |||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||
Inventories, net | $ | — | $ | — | $ | 960 | $ | — | $ | 960 | ||||||||||
Property and equipment, net | 61,694 | 8,447 | 746 | 8,452 | 79,339 | |||||||||||||||
Broadcast licenses | 320,008 | — | — | — | 320,008 | |||||||||||||||
Goodwill | 2,750 | 19,790 | 1,446 | — | 23,986 | |||||||||||||||
Amortizable intangible assets, net | 229 | 2,215 | — | — | 2,444 |
Broadcast | Digital Media | Publishing | Unallocated Corporate | Consolidated | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
As of September 30, 2021 | ||||||||||||||||||||
Inventories, net | $ | — | $ | — | $ | 907 | $ | — | $ | 907 | ||||||||||
Property and equipment, net | 60,502 | 8,619 | 723 | 8,581 | 78,425 | |||||||||||||||
Broadcast licenses | 320,008 | — | — | — | 320,008 | |||||||||||||||
Goodwill | 2,750 | 19,790 | 1,446 | — | 23,986 | |||||||||||||||
Amortizable intangible assets, net | 233 | 2,552 | — | — | 2,785 | |||||||||||||||
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 |
Date | Principal Repurchased | Cash Paid | % of Face Value | Bond Issue Costs | Net Loss | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
October 25, 2021 | $ | 2,000 | $ | 2,020 | 101.00 | % | $ | 19 | $ | 39 | ||||||||||
October 12, 2021 | 250 | 251 | 100.38 | % | 2 | 3 | ||||||||||||||
October 5, 2021 | 763 | 766 | 100.38 | % | 7 | 10 | ||||||||||||||
October 4, 2021 | 628 | 629 | 100.13 | % | 6 | 7 | ||||||||||||||
$ | 3,641 | $ | 3,666 | $ | 34 | 59 | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Reconciliation of Net Broadcast Revenue to Same Station Net Broadcast Revenue | Reconciliation of Net Broadcast Revenue to Same Station Net Broadcast Revenue | Reconciliation of Net Broadcast Revenue to Same Station Net Broadcast Revenue | ||||||||||||||||||||||||||||||
Net broadcast revenue | $ | 45,391 | $ | 49,591 | $ | 130,041 | $ | 140,422 | $ | 46,783 | $ | 52,452 | $ | 90,831 | $ | 100,884 | ||||||||||||||||
Net broadcast revenue – acquisitions | — | (264 | ) | — | (343 | ) | — | (14 | ) | — | (247 | ) | ||||||||||||||||||||
Net broadcast revenue – dispositions | (192 | ) | 2 | (635 | ) | (36 | ) | (96 | ) | (56 | ) | (113 | ) | (49 | ) | |||||||||||||||||
Net broadcast revenue – format change | (104 | ) | (216 | ) | (384 | ) | (561 | ) | — | — | (65 | ) | (111 | ) | ||||||||||||||||||
Same Station net broadcast revenue | $ | 45,095 | $ | 49,113 | $ | 129,022 | $ | 139,482 | $ | 46,687 | $ | 52,382 | $ | 90,653 | $ | 100,477 | ||||||||||||||||
Reconciliation of Broadcast Operating Expenses To Same Station Broadcast Operating Expenses | ||||||||||||||||||||||||||||||||
Reconciliation of Broadcast Operating Expenses to Same Station Broadcast Operating Expenses | Reconciliation of Broadcast Operating Expenses to Same Station Broadcast Operating Expenses | |||||||||||||||||||||||||||||||
Broadcast operating expenses | $ | 34,283 | $ | 37,463 | $ | 104,704 | $ | 106,968 | $ | 36,162 | $ | 42,489 | $ | 69,505 | $ | 80,610 | ||||||||||||||||
Broadcast operating expenses – acquisitions | — | (168 | ) | — | (206 | ) | — | (63 | ) | (1 | ) | (279 | ) | |||||||||||||||||||
Broadcast operating expenses – dispositions | (344 | ) | (14 | ) | (1,225 | ) | (199 | ) | (81 | ) | (24 | ) | (214 | ) | (48 | ) | ||||||||||||||||
Broadcast operating expenses – format change | (252 | ) | (209 | ) | (771 | ) | (593 | ) | — | — | (131 | ) | (132 | ) | ||||||||||||||||||
Same Station broadcast operating expenses | $ | 33,687 | $ | 37,072 | $ | 102,708 | $ | 105,970 | $ | 36,081 | $ | 42,402 | $ | 69,159 | $ | 80,151 | ||||||||||||||||
Reconciliation of Operating Income to Same Station Operating Income | Reconciliation of Operating Income to Same Station Operating Income | Reconciliation of Operating Income to Same Station Operating Income | ||||||||||||||||||||||||||||||
Station Operating Income | $ | 11,108 | $ | 12,128 | $ | 25,337 | $ | 33,454 | $ | 10,621 | $ | 9,963 | $ | 21,326 | $ | 20,274 | ||||||||||||||||
Station operating (income) loss –acquisitions | — | (96 | ) | — | (137 | ) | — | 49 | 1 | 32 | ||||||||||||||||||||||
Station operating loss – dispositions | 152 | 16 | 590 | 163 | ||||||||||||||||||||||||||||
Station operating (income) loss – format change | 148 | (7 | ) | 387 | 32 | |||||||||||||||||||||||||||
Station operating (income) loss – dispositions | (15 | ) | (32 | ) | 101 | (1 | ) | |||||||||||||||||||||||||
Station operating loss – format change | — | — | 66 | 21 | ||||||||||||||||||||||||||||
Same Station – Station Operating Income | $ | 11,408 | $ | 12,041 | $ | 26,314 | $ | 33,512 | $ | 10,606 | $ | 9,980 | $ | 21,494 | $ | 20,326 | ||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Calculation of Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) | Calculation of Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) | Calculation of Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) | ||||||||||||||||||||||||||||||
Net broadcast revenue | $ | 45,391 | $ | 49,591 | $ | 130,041 | $ | 140,422 | $ | 46,783 | $ | 52,452 | $ | 90,831 | $ | 100,884 | ||||||||||||||||
Less broadcast operating expenses | (34,283 | ) | (37,463 | ) | (104,704 | ) | (106,968 | ) | (36,162 | ) | (42,489 | ) | (69,505 | ) | (80,610 | ) | ||||||||||||||||
Station Operating Income | $ | 11,108 | $ | 12,128 | $ | 25,337 | $ | 33,454 | $ | 10,621 | $ | 9,963 | $ | 21,326 | $ | 20,274 | ||||||||||||||||
Net digital media revenue | $ | 9,808 | $ | 10,645 | $ | 28,355 | $ | 30,603 | $ | 10,339 | $ | 10,804 | $ | 19,958 | $ | 21,104 | ||||||||||||||||
Less digital media operating expenses | (7,144 | ) | (8,269 | ) | (23,123 | ) | (25,280 | ) | (8,338 | ) | (8,273 | ) | (17,011 | ) | (16,746 | ) | ||||||||||||||||
Digital Media Operating Income | $ | 2,664 | $ | 2,376 | $ | 5,232 | $ | 5,323 | $ | 2,001 | $ | 2,531 | $ | 2,947 | $ | 4,358 | ||||||||||||||||
Net publishing revenue | $ | 5,442 | $ | 5,747 | $ | 13,366 | $ | 18,093 | $ | 6,660 | $ | 5,426 | $ | 12,346 | $ | 9,303 | ||||||||||||||||
Less publishing operating expenses | (5,814 | ) | (5,213 | ) | (16,443 | ) | (16,844 | ) | (6,426 | ) | (5,432 | ) | (11,631 | ) | (9,899 | ) | ||||||||||||||||
Publishing Operating Income (Loss) | $ | (372 | ) | $ | 534 | $ | (3,077 | ) | $ | 1,249 | $ | 234 | $ | (6 | ) | $ | 715 | $ | (596 | ) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 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) | $ | 329 | $ | 22,094 | $ | (57,390 | ) | $ | 24,674 | |||||||
Plus provision for income taxes | 401 | 837 | 31,180 | 479 | ||||||||||||
Plus net miscellaneous income and (expenses) | (1 | ) | (2 | ) | 45 | (87 | ) | |||||||||
Plus gain on the forgiveness of PPP loans | — | (11,212 | ) | — | (11,212 | ) | ||||||||||
Plus (gain) loss on early retirement of long-term debt | — | 56 | (49 | ) | 56 | |||||||||||
Plus interest expense, net of capitalized interest | 4,024 | 4,026 | 12,069 | 11,887 | ||||||||||||
Less interest income | (1 | ) | — | (1 | ) | (1 | ) | |||||||||
Net operating income (loss) | $ | 4,752 | $ | 15,799 | $ | (14,146 | ) | $ | 25,796 | |||||||
Plus net (gain) loss on the disposition of assets | 1,381 | (10,607 | ) | 1,494 | (10,552 | ) | ||||||||||
Plus change in the estimated fair value of contingent earn-out consideration | (10 | ) | — | (12 | ) | — | ||||||||||
Plus debt modification costs | — | 2,347 | — | 2,347 | ||||||||||||
Plus impairment of indefinite-lived long-term assets other than goodwill | — | — | 17,254 | — | ||||||||||||
Plus impairment of goodwill | — | — | 307 | — | ||||||||||||
Plus depreciation and amortization | 3,428 | 3,215 | 10,686 | 9,671 | ||||||||||||
Plus unallocated corporate expenses | 3,849 | 4,284 | 11,909 | 12,764 | ||||||||||||
Combined Station Operating Income, Digital Media Operating Income and Publishing Operating Loss | $ | 13,400 | $ | 15,038 | $ | 27,492 | $ | 40,026 | ||||||||
Station Operating Income | $ | 11,108 | $ | 12,128 | $ | 25,337 | $ | 33,454 | ||||||||
Digital Media Operating Income | 2,664 | 2,376 | 5,232 | 5,323 | ||||||||||||
Publishing Operating Income (Loss) | (372 | ) | 534 | (3,077 | ) | 1,249 | ||||||||||
$ | 13,400 | $ | 15,038 | $ | 27,492 | $ | 40,026 | |||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Reconciliation of Net Income to Operating Income and Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) | ||||||||||||||||
Net income | $ | 2,257 | $ | 9,117 | $ | 2,580 | $ | 10,856 | ||||||||
Plus benefit from income taxes | (488 | ) | (1,082 | ) | (358 | ) | (1,293 | ) | ||||||||
Plus net miscellaneous income and (expenses) | (63 | ) | 1 | (85 | ) | — | ||||||||||
Plus (gain) loss on early retirement of long-term debt | — | (35 | ) | — | 18 | |||||||||||
Plus earnings from equity method investment | — | (3,913 | ) | — | (3,913 | ) | ||||||||||
Plus interest expense, net of capitalized interest | 3,935 | 3,389 | 7,861 | 6,783 | ||||||||||||
Less interest income | — | (149 | ) | (1 | ) | (149 | ) | |||||||||
Net operating income | $ | 5,641 | $ | 7,328 | $ | 9,997 | $ | 12,302 | ||||||||
Plus net (gain) loss on the disposition of assets | (263 | ) | (6,893 | ) | 55 | (8,628 | ) | |||||||||
Plus change in the estimated fair value of contingent earn-out consideration | — | — | — | (5 | ) | |||||||||||
Plus debt modification costs | — | 20 | — | 248 | ||||||||||||
Plus impairment of indefinite-lived long-term assets other than goodwill | — | 3,935 | — | 3,935 | ||||||||||||
Plus impairment of goodwill | — | 127 | — | 127 | ||||||||||||
Plus depreciation and amortization | 3,286 | 3,190 | 6,456 | 6,466 | ||||||||||||
Plus unallocated corporate expenses | 4,192 | 4,781 | 8,480 | 9,591 | ||||||||||||
Combined Station Operating Income, Digital Media Operating Income and Publishing Operating Loss | $ | 12,856 | $ | 12,488 | $ | 24,988 | $ | 24,036 | ||||||||
Station Operating Income | $ | 10,621 | $ | 9,963 | $ | 21,326 | $ | 20,274 | ||||||||
Digital Media Operating Income | 2,001 | 2,531 | 2,947 | 4,358 | ||||||||||||
Publishing Operating Income (Loss) | 234 | (6 | ) | 715 | (596 | ) | ||||||||||
$ | 12,856 | $ | 12,488 | $ | 24,988 | $ | 24,036 | |||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Reconciliation of Adjusted EBITDA to EBITDA to Net Income (Loss) | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 329 | $ | 22,094 | $ | (57,390 | ) | $ | 24,674 | |||||||||||||||||||||||
Reconciliation of Adjusted EBITDA to EBITDA to Net Income | Reconciliation of Adjusted EBITDA to EBITDA to Net Income | |||||||||||||||||||||||||||||||
Net income | $ | 2,257 | $ | 9,117 | $ | 2,580 | $ | 10,856 | ||||||||||||||||||||||||
Plus interest expense, net of capitalized interest | 4,024 | 4,026 | 12,069 | 11,887 | 3,935 | 3,389 | 7,861 | 6,783 | ||||||||||||||||||||||||
Plus provision for income taxes | 401 | 837 | 31,180 | 479 | ||||||||||||||||||||||||||||
Plus benefit from income taxes | (488 | ) | (1,082 | ) | (358 | ) | (1,293 | ) | ||||||||||||||||||||||||
Plus depreciation and amortization | 3,428 | 3,215 | 10,686 | 9,671 | 3,286 | 3,190 | 6,456 | 6,466 | ||||||||||||||||||||||||
Less interest income | (1 | ) | — | (1 | ) | (1 | ) | — | (149 | ) | (1 | ) | (149 | ) | ||||||||||||||||||
EBITDA | $ | 8,181 | $ | 30,172 | $ | (3,456 | ) | $ | 46,710 | $ | 8,990 | $ | 14,465 | $ | 16,538 | $ | 22,663 | |||||||||||||||
Plus net (gain) loss on the disposition of assets | 1,381 | (10,607 | ) | 1,494 | (10,552 | ) | (263 | ) | (6,893 | ) | 55 | (8,628 | ) | |||||||||||||||||||
Plus change in the estimated fair value of contingent earn-out consideration | (10 | ) | — | (12 | ) | — | — | — | — | (5 | ) | |||||||||||||||||||||
Plus debt modification costs | — | 2,347 | — | 2,347 | — | 20 | — | 248 | ||||||||||||||||||||||||
Plus impairment of indefinite-lived long-term assets other than goodwill | — | — | 17,254 | — | — | 3,935 | — | 3,935 | ||||||||||||||||||||||||
Plus impairment of goodwill | — | — | 307 | — | — | 127 | — | 127 | ||||||||||||||||||||||||
Plus net miscellaneous (income) and expenses | (1 | ) | (2 | ) | 45 | (87 | ) | (63 | ) | 1 | (85 | ) | — | |||||||||||||||||||
Plus (gain) loss on early retirement of long-term debt | — | 56 | (49 | ) | 56 | — | (35 | ) | — | 18 | ||||||||||||||||||||||
Plus gain on the forgiveness of PPP loans | — | (11,212 | ) | — | (11,212 | ) | ||||||||||||||||||||||||||
Plus non-cash stock-based compensation | 74 | 78 | 273 | 240 | 84 | 68 | 162 | 174 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 9,625 | $ | 10,832 | $ | 15,856 | $ | 27,502 | $ | 8,748 | $ | 11,688 | $ | 16,670 | $ | 18,532 | ||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Broadcast Revenue | $ | 46,783 | $ | 52,452 | $ | 5,669 | 12.1 | % | 73.3 | % | 76.4 | % | ||||||||||||
Same Station Net Broadcast Revenue | $ | 46,687 | $ | 52,382 | $ | 5,695 | 12.2 | % |
Three Months Ended June 30, | ||||||||||||||||
2021 | 2022 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Block Programming: | ||||||||||||||||
National | $ | 11,861 | 25.4 | % | $ | 13,340 | 25.4 | % | ||||||||
Local | 5,817 | 12.4 | % | 5,876 | 11.2 | % | ||||||||||
17,678 | 37.8 | % | 19,216 | 36.6 | % | |||||||||||
Broadcast Advertising: | ||||||||||||||||
National | 3,458 | 7.4 | % | 4,059 | 7.7 | % | ||||||||||
Local | 10,546 | 22.5 | % | 11,269 | 21.5 | % | ||||||||||
14,004 | 29.9 | % | 15,328 | 29.2 | % | |||||||||||
Station Digital (local) | 7,728 | 16.5 | % | 9,881 | 18.9 | % | ||||||||||
Infomercials | 225 | 0.5 | % | 182 | 0.4 | % | ||||||||||
Network | 4,950 | 10.6 | % | 5,409 | 10.3 | % | ||||||||||
Other Revenue | 2,198 | 4.7 | % | 2,436 | 4.6 | % | ||||||||||
Net Broadcast Revenue | $ | 46,783 | 100.0 | % | $ | 52,452 | 100.0 | % | ||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Digital Media Revenue | $ | 10,339 | $ | 10,804 | $ | 465 | 4.5 | % | 16.2 | % | 15.7 | % |
Three Months Ended June 30, | ||||||||||||||||
2021 | 2022 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Digital Advertising, net | $ | 4,393 | 42.5 | % | $ | 4,549 | 42.1 | % | ||||||||
Digital Streaming | 862 | 8.3 | 897 | 8.3 | ||||||||||||
Digital Subscriptions | 3,299 | 31.9 | 3,191 | 29.5 | ||||||||||||
Digital Downloads | 1,694 | 16.4 | 2,047 | 19.0 | ||||||||||||
Other Revenues | 91 | 0.9 | 120 | 1.1 | ||||||||||||
Net Digital Media Revenue | $ | 10,339 | 100.0 | % | $ | 10,804 | 100.0 | % | ||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Publishing Revenue | $ | 6,660 | $ | 5,426 | $ | (1,234 | ) | (18.5 | )% | 10.4 | % | 7.9 | % |
Three Months Ended June 30, | ||||||||||||||||
2021 | 2022 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Book Sales | $ | 6,212 | 93.3 | % | $ | 3,643 | 67.1 | % | ||||||||
Estimated Sales Returns & Allowances | (1,918 | ) | (28.8 | ) | (609 | ) | (11.2 | ) | ||||||||
Net Book Sales | 4,294 | 64.5 | 3,034 | 55.9 | ||||||||||||
E-Book Sales | 453 | 6.8 | 338 | 6.3 | ||||||||||||
Self-Publishing Fees | 1,550 | 23.3 | 1,652 | 30.4 | ||||||||||||
Print Magazine Subscriptions | 104 | 1.6 | — | — | ||||||||||||
Print Magazine Advertisements | 54 | 0.8 | — | — | ||||||||||||
Digital Advertising | 70 | 1.1 | — | — | ||||||||||||
Other Revenue | 135 | 2.0 | 402 | 7.4 | ||||||||||||
Net Publishing Revenue | $ | 6,660 | 100.0 | % | $ | 5,426 | 100.0 | % | ||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Broadcast Operating Expenses | $ | 36,162 | $ | 42,489 | $ | 6,327 | 17.5 | % | 56.7 | % | 61.9 | % | ||||||||||||
Same Station Broadcast Operating Expenses | $ | 36,081 | $ | 42,402 | $ | 6,321 | 17.5 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Digital Media Operating Expenses | $ | 8,338 | $ | 8,273 | $ | (65 | ) | (0.8 | )% | 13.1 | % | 12.0 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Publishing Operating Expenses | $ | 6,426 | $ | 5,432 | $ | (994 | ) | (15.5 | )% | 10.1 | % | 7.9 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Unallocated Corporate Expenses | $ | 4,192 | $ | 4,781 | $ | 589 | 14.1 | % | 6.6 | % | 7.0 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Debt Modification Costs | $ | — | $ | 20 | $ | 20 | — | % | — | % | — | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Depreciation Expense | $ | 2,741 | $ | 2,858 | $ | 117 | 4.3 | % | 4.3 | % | 4.2 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Amortization Expense | $ | 545 | $ | 332 | $ | (213 | ) | (39.1 | )% | 0.9 | % | 0.5 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Impairment of Indefinite-Lived Long-Term Assets Other Than Goodwill | $ | — | $ | 3,935 | $ | 3,935 | — | % | — | % | 5.7 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Impairment of Goodwill | $ | — | $ | 127 | $ | 127 | — | % | — | % | 0.2 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net (Gain) Loss on the Disposition of assets | $ | (263 | ) | $ | (6,893 | ) | $ | (6,630 | ) | 2,520.9 | % | (0.4 | )% | (10.0 | )% |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Interest Income | $ | — | $ | 149 | $ | 149 | — | % | — | % | 0.2 | % | ||||||||||||
Interest Expense | (3,935 | ) | (3,389 | ) | (546 | ) | (13.9 | )% | (6.2 | )% | (4.9 | )% | ||||||||||||
Gain (Loss) on Early Retirement of Long-Term Debt | — | 35 | 35 | — | % | — | % | 0.1 | % | |||||||||||||||
Earnings from equity method investment | — | 3,913 | 3,913 | — | % | — | % | 5.7 | % | |||||||||||||||
Net Miscellaneous Income and (Expenses) | 63 | (1 | ) | (64 | ) | (101.6 | )% | 0.1 | % | — | % |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Benefit from Income Taxes | $ | (488 | ) | $ | (1,082 | ) | $ | (594 | ) | 121.7 | % | (0.8 | )% | (1.6 | )% |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Income | $ | 2,257 | $ | 9,117 | $ | 6,860 | 303.9 | % | 3.5 | % | 13.3 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | (Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||||||||||||||||||||||||
Net Broadcast Revenue | $ | 45,391 | $ | 49,591 | $ | 4,200 | 9.3 | % | 74.9 | % | 75.2 | % | $ | 90,831 | $ | 100,884 | $ | 10,053 | 11.1 | % | 73.8 | % | 76.8 | % | ||||||||||||||||||||||||
Same Station Net Broadcast Revenue | $ | 45,095 | $ | 49,113 | $ | 4,018 | 8.9 | % | $ | 90,653 | $ | 100,477 | $ | 9,824 | 10.8 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2020 | 2021 | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Block Programming: | ||||||||||||||||||||||||||||||||
National | $ | 11,732 | 25.8 | % | $ | 12,502 | 25.2 | % | $ | 23,322 | 25.7 | % | $ | 26,399 | 26.2 | % | ||||||||||||||||
Local | 5,771 | 12.7 | 6,299 | 12.7 | % | 11,773 | 13.0 | % | 12,049 | 11.9 | % | |||||||||||||||||||||
17,503 | 38.5 | 18,801 | 37.9 | % | 35,095 | 38.6 | % | 38,448 | 38.1 | % | ||||||||||||||||||||||
Broadcast Advertising: | ||||||||||||||||||||||||||||||||
National | 3,635 | 8.0 | 3,447 | 7.0 | % | 7,118 | 7.8 | % | 7,700 | 7.6 | % | |||||||||||||||||||||
Local | 9,485 | 20.9 | 10,682 | 21.5 | % | 19,441 | 21.4 | % | 21,552 | 21.4 | % | |||||||||||||||||||||
13,120 | 28.9 | 14,129 | 28.5 | % | 26,559 | 29.2 | % | 29,252 | 29.0 | % | ||||||||||||||||||||||
Broadcast Digital (local) | 7,754 | 17.1 | 8,805 | 17.8 | % | 14,797 | 16.3 | % | 18,087 | 17.9 | % | |||||||||||||||||||||
Infomercials | 214 | 0.5 | 220 | 0.4 | % | 462 | 0.5 | % | 373 | 0.4 | % | |||||||||||||||||||||
Network | 4,891 | 10.8 | 4,908 | 9.9 | % | 9,821 | 10.8 | % | 10,240 | 10.2 | % | |||||||||||||||||||||
Other Revenue | 1,909 | 4.2 | 2,728 | 5.5 | % | 4,097 | 4.5 | % | 4,484 | 4.8 | % | |||||||||||||||||||||
Net Broadcast Revenue | $ | 45,391 | 100.0 | % | $ | 49,591 | 100.0 | % | $ | 90,831 | 100.0 | % | $ | 100,884 | 100.0 | % | ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Digital Media Revenue | $ | 9,808 | $ | 10,645 | $ | 837 | 8.5 | % | 16.2 | % | 16.1 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Digital Media Revenue | $ | 19,958 | $ | 21,104 | $ | 1,146 | 5.7 | % | 16.2 | % | 16.1 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2020 | 2021 | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2021 | 2022 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Digital Advertising, net | $ | 5,213 | 53.2 | % | $ | 5,053 | 47.5 | % | $ | 8,806 | 44.1 | % | $ | 9,088 | 43.1 | % | ||||||||||||||||
Digital Streaming | 843 | 8.6 | 873 | 8.2 | 1,706 | 8.5 | 1,798 | 8.5 | ||||||||||||||||||||||||
Digital Subscriptions | 2,387 | 24.3 | 3,155 | 29.6 | 6,072 | 30.4 | 6,343 | 30.1 | ||||||||||||||||||||||||
Digital Downloads | 1,244 | 12.7 | 1,464 | 13.8 | 3,173 | 15.9 | 3,645 | 17.3 | ||||||||||||||||||||||||
e-commerce | 53 | 0.5 | 65 | 0.6 | ||||||||||||||||||||||||||||
Other Revenues | 68 | 0.7 | 35 | 0.3 | 201 | 1.1 | 230 | 1.0 | ||||||||||||||||||||||||
Net Digital Media Revenue | $ | 9,808 | 100.0 | % | $ | 10,645 | 100.0 | % | $ | 19,958 | 100.0 | % | $ | 21,104 | 100.0 | % | ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Publishing Revenue | $ | 5,442 | $ | 5,747 | $ | 305 | 5.6 | % | 9.0 | % | 8.7 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Publishing Revenue | $ | 12,346 | $ | 9,303 | $ | (3,043 | ) | (24.6 | )% | 10.0 | % | 7.1 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2020 | 2021 | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2021 | 2022 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Book Sales | $ | 4,310 | 79.2 | % | $ | 4,561 | 79.4 | % | $ | 10,513 | 85.2 | %�� | $ | 6,204 | 66.7 | % | ||||||||||||||||
Estimated Sales Returns & Allowances | (1,322 | ) | (24.3 | ) | (1,212 | ) | (21.1 | ) | (3,011 | ) | (24.4 | ) | (1,444 | ) | (15.5 | ) | ||||||||||||||||
Net Book Sales | 2,988 | 54.9 | 3,349 | 58.3 | 7,502 | 60.8 | 4,760 | 51.2 | ||||||||||||||||||||||||
E-Book Sales | 456 | 8.4 | 502 | 8.7 | 792 | 6.4 | 625 | 6.7 | ||||||||||||||||||||||||
Self-Publishing Fees | 1,407 | 25.8 | 1,556 | 27.1 | 3,174 | 25.7 | 3,379 | 36.3 | ||||||||||||||||||||||||
Print Magazine Subscriptions | 168 | 3.1 | — | — | 262 | 2.1 | — | — | ||||||||||||||||||||||||
Print Magazine Advertisements | 85 | 1.6 | — | — | 122 | 1.0 | — | — | ||||||||||||||||||||||||
Digital Advertising | 65 | 1.2 | — | — | 132 | 1.1 | — | — | ||||||||||||||||||||||||
Other Revenue | 273 | 5.0 | 340 | 5.9 | 362 | 2.9 | 539 | 5.8 | ||||||||||||||||||||||||
Net Publishing Revenue | $ | 5,442 | 100.0 | % | $ | 5,747 | 100.0 | % | $ | 12,346 | 100.0 | % | $ | 9,303 | 100.0 | % | ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | (Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||||||||||||||||||||||||
Broadcast Operating Expenses | $ | 34,283 | $ | 37,463 | $ | 3,180 | 9.3 | % | 56.5 | % | 56.8 | % | $ | 69,505 | $ | 80,610 | $ | 11,105 | 16.0 | % | 56.4 | % | 61.4 | % | ||||||||||||||||||||||||
Same Station Broadcast Operating Expenses | $ | 33,687 | $ | 37,072 | $ | 3,385 | 10.0 | % | $ | 69,159 | $ | 80,151 | $ | 10,992 | 15.9 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Digital Media Operating Expenses | $ | 7,144 | $ | 8,269 | $ | 1,125 | 15.7 | % | 11.8 | % | 12.5 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Digital Media Operating Expenses | $ | 17,011 | $ | 16,746 | $ | (265 | ) | (1.6 | )% | 13.8 | % | 12.8 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Publishing Operating Expenses | $ | 5,814 | $ | 5,213 | $ | (601 | ) | (10.3 | )% | 9.6 | % | 7.9 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Publishing Operating Expenses | $ | 11,631 | $ | 9,899 | $ | (1,732 | ) | (14.9 | )% | 9.4 | % | 7.5 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Unallocated Corporate Expenses | $ | 3,849 | $ | 4,284 | $ | 435 | 11.3 | % | 6.3 | % | 6.5 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Unallocated Corporate Expenses | $ | 8,480 | $ | 9,591 | $ | 1,111 | 13.1 | % | 6.9 | % | 7.3 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Debt Modification Costs | $ | — | $ | 2,347 | $ | 2,347 | 100.0 | % | — | % | 3.6 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Debt Modification Costs | $ | — | $ | 248 | $ | 248 | — | % | — | % | 0.2 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Depreciation Expense | $ | 2,677 | $ | 2,788 | $ | 111 | 4.1 | % | 4.4 | % | 4.2 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Depreciation Expense | $ | 5,330 | $ | 5,800 | $ | 470 | 8.8 | % | 4.3 | % | 4.4 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Amortization Expense | $ | 751 | $ | 427 | $ | (324 | ) | (43.1 | )% | 1.2 | % | 0.6 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Amortization Expense | $ | 1,126 | $ | 666 | $ | (460 | ) | (40.9 | )% | 0.9 | % | 0.5 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Impairment of Indefinite-Lived Long-Term Assets Other Than Goodwill | $ | — | $ | 3,935 | $ | 3,935 | — | % | — | % | 3.0 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Impairment of Goodwill | $ | — | $ | 127 | $ | 127 | — | % | — | % | 0.1 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net (Gain) Loss on the Disposition of assets | $ | 1,381 | $ | (10,607 | ) | $ | (11,988 | ) | (868.1 | )% | 2.3 | % | (16.1 | )% |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net (Gain) Loss on the Disposition of assets | $ | 55 | $ | (8,628 | ) | $ | (8,683 | ) | (15,787.3 | )% | — | % | (6.6 | )% |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | 2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||||||||||||||||||||||||||
Interest Income | $ | 1 | $ | — | (1 | ) | (100.0 | )% | — | — | % | $ | 1 | $ | 149 | $ | 148 | 14,800.0 | % | — | % | 0.1 | % | |||||||||||||||||||||||||
Interest Expense | (4,024 | ) | (4,026 | ) | 2 | — | % | (6.6 | )% | (6.1 | )% | (7,861 | ) | (6,783 | ) | (1,078 | ) | (13.7 | )% | (6.4 | )% | (5.2 | )% | |||||||||||||||||||||||||
Gain on the Forgiveness of PPP loans | — | 11,212 | 11,212 | 100.0 | % | — | 17.0 | % | ||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on Early Retirement of Long-Term Debt | — | (56 | ) | (56 | ) | (100.0 | )% | — | % | (0.1 | )% | — | (18 | ) | (18 | ) | — | % | — | % | — | % | ||||||||||||||||||||||||||
Earnings from equity method investment | — | 3,913 | 3,913 | — | % | — | % | 3.0 | % | |||||||||||||||||||||||||||||||||||||||
Net Miscellaneous Income and (Expenses) | 1 | 2 | 1 | — | % | — | % | — | % | 85 | — | (85 | ) | (100.0 | )% | 0.1 | % | — | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Provision for Income Taxes | $ | 401 | $ | 837 | $ | 436 | 108.7 | % | 0.7 | % | 1.3 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change % | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Benefit from Income Taxes | $ | (358 | ) | $ | (1,293 | ) | $ | (935 | ) | 261.2 | % | (0.3 | )% | (1.0 | )% |
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Income (Loss) | $ | 329 | $ | 22,094 | $ | 21,765 | 6,615.5 | % | 0.5 | % | 33.5 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Broadcast Revenue | $ | 130,041 | $ | 140,422 | $ | 10,381 | 8.0 | % | 75.7 | % | 74.3 | % | ||||||||||||
Same Station Net Broadcast Revenue | $ | 129,022 | $ | 139,482 | $ | 10,460 | 8.1 | % |
Nine Months Ended September 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Block Programming: | ||||||||||||||||
National | $ | 35,536 | 27.3 | % | $ | 35,824 | 25.5 | % | ||||||||
Local | 18,211 | 14.0 | 18,072 | 12.9 | % | |||||||||||
53,747 | 41.3 | 53,896 | 38.4 | % | ||||||||||||
Broadcast Advertising: | ||||||||||||||||
National | 10,179 | 7.8 | 10,565 | 7.5 | % | |||||||||||
Local | 28,630 | 22.0 | 30,123 | 21.5 | % | |||||||||||
38,809 | 29.8 | 40,688 | 29.0 | % | ||||||||||||
Broadcast Digital (local) | 17,702 | 13.6 | 23,602 | 16.8 | % | |||||||||||
Infomercials | 750 | 0.6 | 682 | 0.5 | % | |||||||||||
Network | 13,505 | 10.4 | 14,729 | 10.4 | % | |||||||||||
Other Revenue | 5,528 | 4.3 | 6,825 | 4.9 | % | |||||||||||
Net Broadcast Revenue | $ | 130,041 | 100.0 | % | $ | 140,422 | 100.0 | % | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Digital Media Revenue | $ | 28,355 | $ | 30,603 | $ | 2,248 | 7.9 | % | 16.5 | % | 16.2 | % |
Nine Months Ended September 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Digital Advertising, net | $ | 14,473 | 51.0 | % | $ | 13,859 | 45.3 | % | ||||||||
Digital Streaming | 2,611 | 9.2 | 2,579 | 8.4 | ||||||||||||
Digital Subscriptions | 6,679 | 23.6 | 9,227 | 30.2 | ||||||||||||
Digital Downloads | 4,291 | 15.1 | 4,637 | 15.1 | ||||||||||||
e-commerce | 108 | 0.4 | 163 | 0.5 | ||||||||||||
Other Revenues | 193 | 0.7 | 138 | 0.5 | ||||||||||||
Net Digital Media Revenue | $ | 28,355 | 100.0 | % | $ | 30,603 | 100.0 | % | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Publishing Revenue | $ | 13,366 | $ | 18,093 | $ | 4,727 | 35.4 | % | 7.8 | % | 9.6 | % |
Nine Months Ended September 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Book Sales | $ | 9,701 | 72.5 | % | $ | 15,074 | 83.3 | % | ||||||||
Estimated Sales Returns & Allowances | (2,852 | ) | (21.3 | ) | (4,223 | ) | (23.3 | ) | ||||||||
Net Book Sales | 6,849 | 51.2 | 10,851 | 60.0 | ||||||||||||
E-Book Sales | 960 | 7.2 | 1,294 | 7.2 | ||||||||||||
Self-Publishing Fees | 3,860 | 28.9 | 4,730 | 26.1 | ||||||||||||
Print Magazine Subscriptions | 519 | 3.9 | 262 | 1.4 | ||||||||||||
Print Magazine Advertisements | 278 | 2.1 | 123 | 0.7 | ||||||||||||
Digital Advertising | 216 | 1.6 | 132 | 0.7 | ||||||||||||
Other Revenue | 684 | 5.1 | 701 | 3.9 | ||||||||||||
Net Publishing Revenue | $ | 13,366 | 100.0 | % | $ | 18,093 | 100.0 | % | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Broadcast Operating Expenses | $ | 104,704 | $ | 106,968 | $ | 2,264 | 2.2 | % | 61.0 | % | 56.6 | % | ||||||||||||
Same Station Broadcast Operating Expenses | $ | 102,708 | $ | 105,970 | $ | 3,262 | 3.2 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Digital Media Operating Expenses | $ | 23,123 | $ | 25,280 | $ | 2,157 | 9.3 | % | 13.5 | % | 13.4 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Publishing Operating Expenses | $ | 16,443 | $ | 16,844 | $ | 401 | 2.4 | % | 9.6 | % | 8.9 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Unallocated Corporate Expenses | $ | 11,909 | $ | 12,764 | $ | 855 | 7.2 | % | 6.9 | % | 6.7 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Debt Modification Costs | $ | — | $ | 2,347 | $ | 2,347 | 100.0 | % | — | % | 1.2 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Depreciation Expense | $ | 8,108 | $ | 8,118 | $ | 10 | 0.1 | % | 4.7 | % | 4.3 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Amortization Expense | $ | 2,578 | $ | 1,553 | $ | (1,025 | ) | (39.8 | )% | 1.5 | % | 0.8 | % |
Nine Months Ended September 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 | )% | 10.0 | % | — | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Impairment of Goodwill | $ | 307 | $ | — | $ | (307 | ) | (100.0 | )% | 0.2 | % | — | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net (Gain) Loss on the Disposition of assets | $ | 1,494 | $ | (10,552 | ) | $ | (12,046 | ) | (806.3 | )% | 0.9 | % | (5.6 | )% |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Interest Income | $ | 1 | $ | 1 | $ | — | — | % | — | % | — | % | ||||||||||||
Interest Expense | (12,069 | ) | (11,887 | ) | (182 | ) | (1.5 | )% | (7.0 | )% | (6.3 | )% | ||||||||||||
Gain on the Forgiveness of PPP Loans | — | 11,212 | 11,212 | 100.0 | % | — | 5.9 | % | ||||||||||||||||
Gain (Loss) on Early Retirement of Long-Term Debt | 49 | (56 | ) | (105 | ) | (214.3 | )% | — | % | — | % | |||||||||||||
Net Miscellaneous Income and (Expenses) | (45 | ) | 87 | 132 | (2,93.3 | )% | — | % | — | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Provision for Income Taxes | $ | 31,180 | $ | 479 | $ | (30,701 | ) | (98.5 | )% | 18.2 | % | 0.3 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2021 | Change $ | Change % | 2020 | 2021 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Income (Loss) | $ | (57,390 | ) | $ | 24,674 | $ | 82,064 | (143.0 | )% | (33.4 | )% | 13.0 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2022 | Change $ | Change% | 2021 | 2022 | |||||||||||||||||||
(Dollars in thousands) | % of Total Net Revenue | |||||||||||||||||||||||
Net Income | $ | 2,580 | $ | 10,856 | $ | 8,276 | 320.8 | % | 2.1 | % | 8.3 | % |
o | In July 2021, the SBA forgave all but $20,000 of the PPP loans, with the remaining PPP loan repaid in July 2021. |
December 31, 2020 | September 30, 2021 | December 31, 2021 | June 30, 2022 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
7.125% Senior Secured Notes | $ | — | $ | 114,731 | ||||||||||||
2028 Notes | $ | 114,731 | $ | 114,731 | ||||||||||||
Less unamortized discount and debt issuance costs based on imputed interest rate of 7.64% | — | (4,048 | ) | (3,844 | ) | (3,549 | ) | |||||||||
7.125% Senior Secured Notes net carrying value | — | 110,683 | ||||||||||||||
2028 Notes, net carrying value | 110,887 | 111,182 | ||||||||||||||
6.75% Senior Secured Notes | 216,341 | 98,815 | ||||||||||||||
2024 Notes | 60,174 | 44,685 | ||||||||||||||
Less unamortized debt issuance costs based on imputed interest rate of 7.10% | (2,577 | ) | (939 | ) | (480 | ) | (272 | ) | ||||||||
6.75% Senior Secured Notes net carrying value | 213,764 | 97,876 | ||||||||||||||
2024 Notes, net carrying value | 59,694 | 44,413 | ||||||||||||||
Asset-Based Revolving Credit Facility principal outstanding (1) | 5,000 | — | — | 10 | ||||||||||||
SBA Paycheck Protection Program loans | — | — | ||||||||||||||
Long-term debt less unamortized discount and debt issuance costs | $ | 218,764 | $ | 208,559 | $ | 170,581 | $ | 155,605 | ||||||||
Less current portion | (5,000 | ) | — | — | (10 | ) | ||||||||||
Long-term debt less unamortized discount and debt issuance costs, net of current portion | $ | 213,764 | $ | 208,559 | $ | 170,581 | $ | 155,595 | ||||||||
(1) | As of |
Date | Principal Repurchased | Cash Paid | % of Face Value | Bond Issue Costs | Net Gain (Loss) | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
June 13, 2022 | $ | 5,000 | $ | 4,947 | 98.95 | % | $ | 35 | $ | 18 | ||||||||||
June 10, 2022 | 3,000 | 2,970 | 99.00 | % | 21 | 9 | ||||||||||||||
June 7, 2022 | 2,464 | 2,446 | 99.25 | % | 17 | 1 | ||||||||||||||
May 17, 2022 | 2,525 | 2,500 | 99.00 | % | 18 | 7 | ||||||||||||||
January 12, 2022 | 2,500 | 2,531 | 101.26 | % | 22 | (53 | ) | |||||||||||||
December 10, 2021 | 35,000 | 35,591 | 101.69 | % | 321 | (912 | ) | |||||||||||||
October 25, 2021 | 2,000 | 2,020 | 101.00 | % | 19 | (39 | ) | |||||||||||||
October 12, 2021 | 250 | 251 | 100.38 | % | 2 | (3 | ) | |||||||||||||
October 5, 2021 | 763 | 766 | 100.38 | % | 7 | (10 | ) | |||||||||||||
October 4, 2021 | 628 | 629 | 100.13 | % | 6 | (7 | ) | |||||||||||||
September 24, 2021 | 4,700 | 4,712 | 100.25 | % | 44 | (56 | ) | |||||||||||||
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 | ||||||||||||||
$ 97,489 | $ 94,949 | $ 1,218 | $ 1,322 | |||||||||||||||||
Amount | Amount | |||||||
For the Year Ended September 30, | (Dollars in thousands) | |||||||
2022 | $ | — | ||||||
For the Year Ended June 30, | (Dollars in thousands) | |||||||
2023 | — | $ | 10 | |||||
2024 | 98,815 | 44,685 | ||||||
2025 | — | — | ||||||
2026 | — | — | ||||||
2027 | — | |||||||
Thereafter | 114,731 | 114,731 | ||||||
$ | 213,546 | $ | 159,426 | |||||
ITEM 3. |
ITEM 4. |
Exhibit Number | Exhibit Description | Form | File No. | Date of First Filing | Exhibit Number | Filed Herewith | ||||||
31.1 | Certification of | - | - | - | - | 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 | - | - | - | - | 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 | - | - | - | - | X | ||||||
104 | The cover page of this Quarterly Report on Form 10-Q, formattedin inline | - | - | - | - | X |
SALEM MEDIA GROUP, INC. | ||||||
By: | /s/ | |||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
By: | /s/ EVAN D. MASYR | |||||
Evan D. Masyr | ||||||
Executive Vice President and Chief Financial Officer | ||||||
(Principal Financial Officer) |