Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 01, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Trading Symbol | SALM | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SALEM MEDIA GROUP, INC. /DE/ | |
Entity Central Index Key | 0001050606 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value per share | |
Entity File Number | 000-26497 | |
Entity Tax Identification Number | 77-0121400 | |
Entity Address, Address Line One | 6400 NORTH BELT LINE ROAD | |
Entity Address, City or Town | IRVING | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 75063 | |
City Area Code | 469 | |
Local Phone Number | 586-0080 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21,315,449 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,553,696 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 23,394 | $ 6,325 |
Trade accounts receivable (net of allowances of $14,069 in 2020 and $13,225 in 2021) | 22,974 | 24,469 |
Unbilled revenue | 2,548 | 3,192 |
Other receivables (net of allowances of $124 in 2020 and $424 in 2021) | 1,006 | 1,122 |
Inventories (net of reserves of $1,499 in 2020 and $1,439 in 2021) | 588 | 495 |
Prepaid expenses | 7,597 | 6,847 |
Assets held for sale | 3,346 | |
Total current assets | 58,107 | 45,796 |
Notes receivable (net of allowance of $461 in 2020 and $831 in 2021) | 696 | 721 |
Property and equipment (net of accumulated depreciation of $180,336 in 2020 and $183,136 in 2021) | 78,598 | 79,122 |
Operating lease right-of-use assets | 46,508 | 48,203 |
Financing lease right-of-use assets | 138 | 152 |
Broadcast licenses | 319,773 | 319,773 |
Goodwill | 23,757 | 23,757 |
Amortizable intangible assets (net of accumulated amortization of $58,897 in 2020 and $59,478 in 2021) | 3,563 | 4,017 |
Deferred financing costs | 187 | 213 |
Other assets | 2,627 | 2,817 |
Total assets | 533,954 | 524,571 |
Current liabilities: | ||
Accounts payable | 1,312 | 2,006 |
Accrued expenses | 9,932 | 11,002 |
Accrued compensation and related expenses | 11,153 | 10,242 |
Accrued interest | 4,875 | 1,225 |
Contract liabilities | 12,600 | 11,652 |
Deferred rent income | 149 | 147 |
Income taxes payable | 584 | 563 |
Current portion of operating lease liabilities | 8,615 | 8,963 |
Current portion of financing lease liabilities | 60 | 60 |
Current portion of long-term debt | 0 | 5,000 |
Total current liabilities | 49,280 | 50,860 |
Long-term debt, less current portion | 225,143 | 213,764 |
Operating lease liabilities, less current portion | 46,058 | 47,740 |
Financing (capital) lease liabilities, less current portion | 94 | 107 |
Deferred income taxes | 69,071 | 68,883 |
Contract liabilities, long-term | 2,159 | 1,869 |
Deferred rent income, less current portion | 3,841 | 3,864 |
Other long-term liabilities | 2,236 | 2,205 |
Total liabilities | 397,882 | 389,292 |
Commitments and contingencies (Note 15) | ||
Stockholders' Equity: | ||
Additional paid-in capital | 247,493 | 247,025 |
Accumulated earnings (deficit) | (77,700) | (78,023) |
Treasury stock, at cost (2,317,650 shares at December 31, 2020 and March 31, 2021) | (34,006) | (34,006) |
Total stockholders' equity | 136,072 | 135,279 |
Total liabilities and stockholders' equity | 533,954 | 524,571 |
Common Class A [Member] | ||
Stockholders' Equity: | ||
Common stock | 229 | 227 |
Total stockholders' equity | 229 | 227 |
Common Class B [Member] | ||
Stockholders' Equity: | ||
Common stock | 56 | 56 |
Total stockholders' equity | $ 56 | $ 56 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Trade accounts receivable, allowances | $ 13,225 | $ 14,069 |
Other receivables | 424 | 124 |
Inventories, reserves | 1,439 | 1,499 |
Notes receivable, allowance | 831 | 461 |
Property and equipment, accumulated depreciation | 183,136 | 180,336 |
Amortizable intangible assets, accumulated amortization | $ 59,478 | $ 58,897 |
Treasury stock, shares | 2,317,650 | 2,317,650 |
Common Class A [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 80,000,000 | 80,000,000 |
Common stock, issued | 23,633,099 | 23,447,317 |
Common stock, outstanding | 21,315,449 | 21,129,667 |
Common Class B [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 20,000,000 | 20,000,000 |
Common stock, issued | 5,553,696 | 5,553,696 |
Common stock, outstanding | 5,553,696 | 5,553,696 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total net revenue | $ 59,353 | $ 58,250 |
Operating expenses: | ||
Unallocated corporate expenses exclusive of depreciation and amortization shown below (including $180 and $3 for the three months ended March 31, 2020 and 2021, respectively, paid to related parties) | 4,288 | 4,210 |
Depreciation | 2,589 | 2,713 |
Amortization | 581 | 987 |
Change in the estimated fair value of contingent earn-out consideration | (5) | |
Impairment of indefinite-lived long-term assets other than goodwill | 17,254 | |
Impairment of goodwill | 0 | 307 |
Net (gain) loss on the disposition of assets | 318 | 79 |
Total operating expenses | 54,997 | 76,260 |
Operating income (loss) | 4,356 | (18,010) |
Other income (expense): | ||
Interest income | 1 | |
Interest expense | (3,926) | (4,032) |
Gain on early retirement of long-term debt | 49 | |
Net miscellaneous income and expenses | 22 | (52) |
Net income (loss) before income taxes | 453 | (22,045) |
Provision for income taxes | 130 | 33,159 |
Net income (loss) | $ 323 | $ (55,204) |
Basic earnings (loss) per share data: | ||
Basic earnings (loss) per share Class A and Class B common stock | $ 0.01 | $ (2.07) |
Diluted earnings (loss) per share data: | ||
Diluted earnings (loss) per share Class A and Class B common stock | $ 0.01 | $ (2.07) |
Basic weighted average Class A and Class B shares outstanding | 26,736,639 | 26,683,363 |
Diluted weighted average Class A and Class B shares outstanding | 27,138,773 | 26,683,363 |
Broadcast [Member] | ||
Total net revenue | $ 44,048 | $ 45,180 |
Operating expenses: | ||
Total operating expenses | 33,343 | 37,327 |
Digital Media [Member] | ||
Total net revenue | 9,619 | 9,104 |
Operating expenses: | ||
Total operating expenses | 8,673 | 8,326 |
Publishing [Member] | ||
Total net revenue | 5,686 | 3,966 |
Operating expenses: | ||
Total operating expenses | $ 5,205 | $ 5,062 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating expenses | $ 54,997 | $ 76,260 |
Unallocated corporate expenses exclusive of depreciation and amortization | 4,288 | 4,210 |
Related Party [Member] | ||
Unallocated corporate expenses exclusive of depreciation and amortization | 3 | 180 |
Broadcast [Member] | ||
Operating expenses | 33,343 | 37,327 |
Broadcast [Member] | Related Party [Member] | ||
Operating expenses | $ 443 | $ 431 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock [Member] | Common Class A [Member] | Common Class B [Member] |
Balance at Dec. 31, 2019 | $ 189,663 | $ 246,680 | $ (23,294) | $ (34,006) | $ 227 | $ 56 |
Balance (in shares) at Dec. 31, 2019 | 23,447,317 | 5,553,696 | ||||
Stock-based compensation | 103 | 103 | ||||
Cash distributions | (667) | (667) | ||||
Net income (loss) | (55,204) | (55,204) | ||||
Balance at Mar. 31, 2020 | 133,895 | 246,783 | (79,165) | (34,006) | $ 227 | $ 56 |
Balance (in shares) at Mar. 31, 2020 | 23,447,317 | 5,553,696 | ||||
Distributions per share | $ 0.025 | $ 0.025 | ||||
Balance at Dec. 31, 2020 | 135,279 | 247,025 | (78,023) | (34,006) | $ 227 | $ 56 |
Balance (in shares) at Dec. 31, 2020 | 23,447,317 | 5,553,696 | ||||
Stock-based compensation | 78 | 78 | ||||
Options exercised | 392 | 390 | $ 2 | |||
Options exercised (in shares) | 185,782 | |||||
Net income (loss) | 323 | 323 | ||||
Balance at Mar. 31, 2021 | $ 136,072 | $ 247,493 | $ (77,700) | $ (34,006) | $ 229 | $ 56 |
Balance (in shares) at Mar. 31, 2021 | 23,633,099 | 5,553,696 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 323 | $ (55,204) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Non-cash stock-based compensation | 78 | 103 |
Depreciation and amortization | 3,170 | 3,700 |
Amortization of deferred financing costs | 213 | 227 |
Non-cash lease expense | 2,161 | 2,252 |
Provision for bad debts | (295) | 1,900 |
Deferred income taxes | 188 | 33,084 |
Change in the estimated fair value of contingent earn-out consideration | (5) | |
Impairment of indefinite-lived long-term assets other than goodwill | 17,254 | |
Impairment of goodwill | 0 | 307 |
Gain on early retirement of long-term debt | (49) | |
Net (gain) loss on the disposition of assets | 318 | 79 |
Changes in operating assets and liabilities: | ||
Accounts receivable and unbilled revenue | 2,549 | 2,419 |
Inventories | (93) | 70 |
Prepaid expenses and other current assets | (750) | (587) |
Accounts payable and accrued expenses | 2,490 | 4,478 |
Operating lease liabilities | (2,497) | (2,407) |
Contract liabilities | 1,122 | 133 |
Deferred rent income | 170 | (84) |
Other liabilities | 29 | 6 |
Income taxes payable | 21 | 57 |
Net cash provided by operating activities | 9,197 | 7,733 |
INVESTING ACTIVITIES | ||
Cash paid for capital expenditures net of tenant improvement allowances | (1,859) | (1,587) |
Capital expenditures reimbursable under tenant improvement allowances and trade agreements | (84) | |
Deposit on broadcast assets and radio station acquisitions | (100) | |
Proceeds from sale of assets | 3,501 | 2 |
Other | (238) | (428) |
Net cash provided by (used in) investing activities | 1,304 | (2,097) |
FINANCING ACTIVITIES | ||
Payments to repurchase 6.75% Senior Secured Notes | (3,392) | |
Proceeds from borrowings under PPP Loans | 11,195 | |
Payments of debt issuance costs | (3) | (1) |
Proceeds from the exercise of stock options | 392 | |
Payments on financing lease liabilities | (16) | (18) |
Payment of cash distribution on common stock | (667) | |
Book overdraft | (1,885) | |
Net cash provided by (used in) financing activities | 6,568 | (4,389) |
Net increase in cash and cash equivalents | 17,069 | 1,247 |
Cash and cash equivalents at beginning of year | 6,325 | 6 |
Cash and cash equivalents at end of period | 23,394 | 1,253 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest, net of capitalized interest | 51 | 163 |
Cash paid for interest on finance lease liabilities | 2 | 2 |
Net cash paid for (received from) income taxes | (79) | 18 |
Other supplemental disclosures of cash flow information: | ||
Barter revenue | 391 | 1,192 |
Barter expense | 373 | 1,034 |
Non-cash investing and financing activities: | ||
Capital expenditures reimbursable under tenant improvement allowances | 84 | |
Right-of-use assets acquired through operating leases | 553 | 575 |
Right-of-use assets acquired through financing leases | 2 | |
Non-cash capital expenditures for property & equipment acquired under trade agreements | 6 | 4 |
Net assets and liabilities assumed in a non-cash acquisition | 127 | |
Estimated present value of contingent-earn out consideration | 11 | |
Abl Facility [Member] | ||
FINANCING ACTIVITIES | ||
Proceeds from borrowings under ABL Facility | 16 | 33,319 |
Payments on ABL Facility | $ (5,016) | $ (31,745) |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | NOTE 1. BUSINESS AND BASIS OF PRESENTATION Business Salem Media Group, Inc. (“Salem,” “we,” “us,” “our” or the “company”) is a domestic multimedia company specializing in Christian and conservative content. Our media properties include radio broadcasting, digital media, and publishing entities. We have three operating segments: (1) Broadcast, (2) Digital Media, and (3) Publishing, which are discussed in Note 17 – Segment Data. Impact of the COVID-19 The COVID-19 COVID-19 stay-at-home While the disruption is expected to be temporary, there remains to be considerable uncertainty around the duration. Advertising revenue continues to improve over the lowest levels that were experienced during April and May of 2020, but remain significantly below prior years. The exact timing and pace of the economic recovery has not been determinable as certain markets have reopened, some of which have since experienced a resurgence of COVID-19 stay-at-home COVID-19’s COVID-19 Lower revenue and longer days to collect receivables negatively impacts future availability under our credit facility. Availability under our Asset Based Loan (“ABL Facility”) is subject to a borrowing base consisting of (a) 90% of the eligible accounts receivable plus (b) a calculated amount based on the value of certain real property. The maximum amount available under our ABL Facility was $26.1 million at March 31, 2021 compared to $24.8 million at December 31, 2020, of which none was outstanding at March 31, 2021 compared to $5.0 million outstanding at December 31, 2020. We implemented several measures during 2020 to reduce costs and conserve cash to ensure that we have adequate cash to meet our debt servicing requirements, including: • limiting capital expenditures; • reducing discretionary spending, including travel and entertainment; • eliminating open positions and freezing new hires; • reducing staffing levels; • implementing temporary company-wide pay cuts of 5%, 7.5% or 10% depending on salary level; • furloughing certain employees; • temporarily suspending the company 401(k) match; • requesting rent concessions from landlords; • requesting discounts from vendors; • offering early payment discounts to certain customers in exchange for advance cash payments; and • suspending the payment of distributions on our common stock indefinitely. As the economy begins to show signs of recovery, many of these cost reduction initiatives have or will be reversed during 2021. We continue to operate with lower staffing levels, have not reinstated the company 401(k) match and have not paid equity distributions on our common stock. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act provides opportunities for additional liquidity, loan guarantees, and other government programs to support companies affected by the COVID-19 • we deferred $3.3 million of employer FICA taxes from April 2020 through December 2020 , with 50% payable in December 2021 and 50% payable in December 2022; • relaxation of interest expense deduction limitation for income tax purposes; and • Paycheck Protection Plan (“PPP”) loans available based on the eligibility determined on a per-location We believe that our customers have benefited from the enhanced benefits provided by the CARES Act, and that they will also benefit from the CAA. The CAA provides for another round of direct payments, enhanced unemployment benefits, education funding, and aid to sectors still reeling from the economic fallout of the pandemic. While these measures may benefit many of our customers, we cannot assure you that the implementation of these measures will offset the negative impact of COVID-19 We continue to review and consider any available potential benefit under the CARES Act and the CAA for which we qualify. We cannot predict the manner in which such benefits or any of the other benefits described herein will be allocated or administered and we cannot assure you that we will be able to access such benefits in a timely manner or at all. If the U.S. government or any other governmental authority agrees to provide such aid under the CARES Act, the CAA, or any other crisis relief assistance it may impose certain requirements on the recipients of the aid, including restrictions on executive officer compensation, dividends, prepayment of debt, limitations on debt and other similar restrictions that may apply for a period of time after the aid is repaid or redeemed in full. Basis of Presentation The accompanying Condensed Consolidated Financial Statements of Salem include the company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Information with respect to the three months ended March 31, 2021 and 2020 is unaudited. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. 10-K The balance sheet at December 31, 2020 included in this report has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results can be materially different from these estimates and assumptions. Significant areas for which management uses estimates include: • revenue recognition; • asset impairments, including broadcasting licenses, goodwill and other indefinite-lived intangible assets; • probabilities associated with the potential for contingent earn-out • fair value measurements; • contingency reserves; • allowance for doubtful accounts; • sales returns and allowances; • barter transactions; • inventory reserves; • reserves for royalty advances; • fair value of equity awards; • self-insurance reserves; • estimated lives for tangible and intangible assets; • assessment of contract-based factors, asset-based factors, entity-based factors and market-based factors to determine the lease term impacting Right-Of-Use • determining the Incremental Borrowing Rate (“IBR”) for calculating ROU assets and lease liabilities, • income tax valuation allowances; • uncertain tax positions; and • estimates used in going concern analysis. These estimates require the use of judgment as future events and the effect of these events cannot be predicted with certainty. The estimates will change as new events occur, as more experience is acquired and as more information is obtained. We evaluate and update our assumptions and estimates on an ongoing basis and we may consult outside experts to assist as considered necessary. The COVID-19 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no changes to our significant accounting policies described in Note 2 to our Annual Report on Form 10-K Recent Accounting Pronouncements Changes to accounting principles are established by the FASB in the form of ASUs to the FASB’s Codification. We consider the applicability and impact of all ASUs on our financial position, results of operations, cash flows, or presentation thereof. Described below are ASUs that may be applicable to our financial position, results of operations, cash flows, or presentation thereof. ASUs not listed below were assessed and determined to not be applicable to our financial position, results of operations, cash flows, or presentation thereof. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope Reference Rate Reform In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, held-to-maturity available-for-sale 2016-13, 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses 2016-13. 2018-19 2016-13. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments 2016-13. 2019-05, Financial Instruments – Credit Losses (Topic 326) 2016-13. |
Recent Transactions
Recent Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Text Block [Abstract] | |
Recent Transactions | NOTE 3. RECENT TRANSACTIONS During the three-month period ended March 31, 2021, we completed or entered into the following transactions: Debt Transactions We applied for and received $11.2 million in aggregate principal amount of PPP loans through the Small Business Administration (“SBA”) that were available to our radio stations and networks under the CAA. The PPP loans and accrued interest are forgivable provided that the proceeds are used for eligible purposes, including payroll, benefits, rent and utilities within the covered period of up to 24 weeks from funding of the loans. The amount of PPP loan and accrued interest that is forgiven can be reduced if we reduce payroll or eliminate positions during the covered period. We are using, and intend to continue to use, the PPP loan proceeds according to the terms and will file timely applications for forgiveness. The PPP loans accrue interest at 1% annually and mature in five years for any amount that is not forgiven. The PPP loans are reflected in long-term debt in the accompanying condensed consolidated financial statements in accordance with FASB ASC Topic 470, Debt Acquisitions On March 8, 2021, we acquired the Triple Threat Trader newsletter. We paid no cash at the time of closing and assumed deferred subscription liabilities of $0.1 million. As part of the purchase agreement, we may pay up to an additional $11,000 in contingent earn-out Divestitures On March 18, 2021, we sold radio station WKAT-AM pre-tax write-off pre-tax Pending Transactions On February 4, 2021, we entered into an APA to acquire KDIA-AM KDYA-AM We paid $0.1 million in cash to an escrow account with $0.5 million of cash due upon closing. The purchase is subject to the approval of the FCC and is expected to close in the first half of 2021. On February 5, 2020, we entered into an APA with Word Broadcasting to sell radio stations WFIA-AM, WFIA-FM WGTK-AM |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | NOTE 4. REVENUE RECOGNITION We recognize revenue in accordance with ASC 606, “ Revenue from Contracts with Customers” Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Contract Assets Contract Assets—Costs to Obtain a Contract: Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. Additionally, new customers, existing customers without approved credit terms and authors purchasing specific self-publishing services, are required to make payments in advance of the delivery of the products or performance of the services. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, including payments that are refundable if the customer cancels the contract according to the contract terms. Contract liabilities were historically recorded under the caption “deferred revenue” and are reported as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. Long-term contract liabilities represent the amount of payments received in excess of revenue earned, including those that are refundable, when the time to fulfill the performance obligation is greater than one year. Our long-term liabilities consist of subscriptions with a term of two-years Significant changes in our contract liabilities balances during the period are as follows: Short- Long- (Dollars in thousands) Balance, beginning of period January 1, 2021 $ 11,652 $ 1,869 Revenue recognized during the period that was included in the beginning balance of contract liabilities (3,814 ) — Additional amounts recognized during the period 7,087 524 Revenue recognized during the period that was recorded during the period (2,559 ) — Transfers 234 (234 ) Balance, end of period March 31, 2021 $ 12,600 2,159 Amount refundable at beginning of period $ 11,607 1,869 Amount refundable at end of period $ 12,588 2,159 We expect to satisfy these performance obligations as follows: Amount For the Twelve Months Ended March 31, (Dollars in thousands) 2022 $ 12,600 2023 1,365 2024 472 2025 184 2026 55 Thereafter 83 $ 14,759 Significant Financing Component The length of our typical sales agreement is less than 12 months; however, we may sell subscriptions with a two-year Our self-publishing contracts may exceed a one-year Variable Consideration Like former revenue recognition guidance, we continue to make significant estimates related to variable consideration at the point of sale, including estimates for refunds and product returns. Under ASC 606, estimates of variable consideration are to be recognized before contingencies are resolved in certain circumstances, including when it is probable that a significant reversal in the amount of any estimated cumulative revenue will not occur. We enter into agreements under which the amount of revenue we earn is contingent upon the amount of money raised by our customer over the contract term. Our customer is typically a charity or programmer that purchases blocks of programming time or spots to generate revenue from our audience members. Contract terms can range from a few weeks to a few months, depending the charity or programmer. If the campaign does not generate a pre-determined Based on the constraints for using estimates of variable consideration within ASC 606, and our historical experience with these campaigns, we will continue to recognize revenue at the base amount of the campaign with variable consideration recognized when the uncertainty of each campaign is resolved. These constraints include: (1) the amount of consideration received is highly susceptible to factors outside of our influence, specifically the extent to which our audience donates or contributes to our customer or programmer, (2) the length of time in which the uncertainty about the amount of consideration expected is to be resolved, and (3) our experience has shown these contracts have a large number and broad range of possible outcomes. Practical Expedients and Exemptions We elected certain practical expedients and policy elections as follows: • We do not adjust the promised amount of consideration for the effects of a significant financing component if the period between transfer of product and customer payment is expected to be less than one year at the time of contract inception; • We do not assess promised goods or services as performance obligations if they are immaterial in the context of the contract with the customer; • We exclude sales and similar taxes from the transaction price; • We treat shipping and handling costs that occur after control transfers as fulfillment activities instead of assessing such activities as separate performance obligations; and • We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. A summary of our principal sources of revenue is as follows: Block Programming . 1 2 50-minutes Spot Advertising Network Revenue . Digital Advertising. Broadcast digital advertising revenue consists of local digital advertising, such as the sale of banner advertisements on our owned and operated websites, the sale of advertisements on our own and operated mobile applications, and advertisements in digital newsletters that we produce, as well as national digital advertising, or the sale of custom digital advertising solutions, such as web pages and social media campaigns, that we offer to our customers. Advertising revenue is recorded on a gross basis unless an agency represents the advertiser, in which case, revenue is reported net of the commission retained by the agency. Salem Surround, our national multimedia advertising agency, offers a comprehensive suite of digital marketing services to develop and execute audience-based marketing strategies for clients on both the national and local level. Salem Surround specializes in digital marketing services for each of our radio stations and websites as well as provides a full-service digital marketing strategy for each of our clients. In our role as a digital agency, our sales team provides our customers with integrated digital advertising solutions that optimize the performance of their campaign, which we view as one performance obligation. Our advertising campaigns are designed to be “white label” agreements between Salem and our advertiser, meaning we provide special care and attention to the details of the campaign. We provide custom digital product offerings, including tools for metasearch, retargeting, website design, reputation management, online listing services, and social media marketing. Digital advertising solutions may include third-party websites, such as Google or Facebook, which can be included in a digital advertising social media campaign. We manage all aspects of the digital campaign, including social media placements, review and approval of target audiences, and the monitoring of actual results to make modifications as needed. We may contract directly with a third-party, however, we are responsible for delivering the campaign results to our customer with or without the third-party. We are responsible for any payments due to the third-party regardless of the campaign results and without regard to the status of payment from our customer. We have discretion in setting the price to our customer without input or approval from the third-party. Accordingly, revenue is reported gross, as principal, as the performance obligation is delivered, which represents the point in time that control is transferred to the customer thereby completing our performance obligation. Digital Streaming Digital Downloads and e-books e-books. Subscriptions on-air 30-day pro-rata Book Sales e-Commerce E-Commerce re-saleable Self-Publishing Fees e-Books. Revenue is recognized upon completion of each performance obligation, which represents the point in time that control of the product is transferred to the author, thereby completing our performance obligation. Revenue is recorded at the net amount due from the author, including discounts based on the service package. Advertising—Print Other Revenues . on-air Trade and Barter Transactions In broadcasting, trade or barter agreements are commonly used to reduce cash expenses by exchanging advertising time for goods or services. We may enter barter agreements to exchange airtime or digital advertising for goods or services that can be used in our business or that can be sold to our audience under Listener Purchase Programs. The terms of these barter agreements permit us to preempt the barter airtime or digital campaign in favor of customers who purchase the airtime or digital campaign for cash. The value of these non-cash Trade and barter revenues and expenses were as follows: Three Months Ended March 31, 2020 2021 Net broadcast barter revenue $ 1,166 $ 391 Net digital media barter revenue — — Net publishing barter revenue 26 — Net broadcast barter expense $ 1,034 $ 373 Net digital media barter expense — — Net publishing barter expense — — The following table presents our revenues disaggregated by revenue source for each of our operating segments: Three Months Ended March 31, 2021 Broadcast Digital Media Publishing Consolidated (dollars in thousands) By Source of Revenue: Block Programming—National $ 11,461 $ — $ — $ 11,461 Block Programming—Local 5,956 — — 5,956 Spot Advertising—National 3,660 — — 3,660 Spot Advertising—Local 8,895 — — 8,895 Infomercials 237 — — 237 Network 4,871 — — 4,871 Digital Advertising 5,781 4,413 62 10,256 Digital Streaming 853 844 — 1,697 Digital Downloads and eBooks 60 1,479 339 1,878 Subscriptions 286 2,773 158 3,217 Book Sales and e-commerce, 89 31 3,208 3,328 Self-Publishing Fees — — 1,624 1,624 Print Advertising — — 68 68 Other Revenues 1,899 79 227 2,205 $ 44,048 $ 9,619 $ 5,686 $ 59,353 Timing of Revenue Recognition Point in Time $ 43,425 $ 9,619 5,686 $ 58,730 Rental Income (1) 623 — — 623 $ 44,048 $ 9,619 $ 5,686 $ 59,353 Three Months Ended March 31, 2020 Broadcast Digital Media Publishing Consolidated (dollars in thousands) By Source of Revenue: Block Programming—National $ 12,034 $ — $ — $ 12,034 Block Programming—Local 6,808 — — 6,808 Spot Advertising—National 3,957 — — 3,957 Spot Advertising—Local 11,357 — — 11,357 Infomercials 308 — — 308 Network 4,388 — — 4,388 Digital Advertising 3,326 4,713 99 8,138 Digital Streaming 608 915 — 1,523 Digital Downloads and eBooks — 1,245 254 1,499 Subscriptions 282 2,135 177 2,594 Book Sales and e-commerce, 76 28 1,723 1,827 Self-Publishing Fees — — 1,402 1,402 Print Advertising 1 — 102 103 Other Revenues 2,035 68 209 2,312 $ 45,180 $ 9,104 $ 3,966 $ 58,250 Timing of Revenue Recognition Point in Time $ 44,563 $ 9,104 $ 3,966 $ 57,633 Rental Income (1) 617 — — 617 $ 45,180 $ 9,104 $ 3,966 $ 58,250 (1) Rental income is not applicable to ASC Topic 606, but shown for the purpose of identifying each revenue source presented in total revenue on our Condensed Consolidated Financial Statements within this report on Form 10-Q. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 5. INVENTORIES Inventories consist of finished books from Regnery ® First-In First-Out The following table provides details of inventory on hand: December 31, 2020 March 31, 2021 (Dollars in thousands) Book inventories $ 1,994 $ 2,027 Reserve for obsolescence (1,499 ) (1,439 ) Inventory, net— $ 495 $ 588 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 6. PROPERTY AND EQUIPMENT We account for property and equipment in accordance with FASB ASC Topic 360-10, Property, Plant and Equipment The following is a summary of the categories of our property and equipment: As of December 31, 2020 As of March 31, 2021 (Dollars in thousands) Land $ 30,254 $ 30,254 Buildings 28,922 28,993 Office furnishings and equipment 36,875 37,289 Antennae, towers and transmitting equipment 78,057 78,152 Studio, production and mobile equipment 29,023 29,389 Computer software and website development costs 33,928 34,085 Record and tape libraries 17 17 Automobiles 1,514 1,514 Leasehold improvements 18,187 18,208 Construction-in-progress 2,681 3,833 $ 259,458 $ 261,734 Less accumulated depreciation (180,336 ) (183,136 ) $ 79,122 $ 78,598 Depreciation expense was approximately $2.6 million and $2.7 million for the three-month periods ended March 31, 2021 and 2020, respectively. We periodically review long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. This review requires us to estimate the fair value of the assets using significant unobservable inputs that reflect our own assumptions about the estimates that market participants would use in measuring fair value, including assumptions about risk. If actual future results are less favorable than the assumptions and estimates we used, we are subject to future impairment charges, the amount of which may be material. There were no indications of impairment during the three months ended March 31, 2021. |
Operating and Finance Lease Rig
Operating and Finance Lease Right-of-Use Assets | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Operating and Finance Lease Right-of-Use Assets | NOTE 7. OPERATING AND FINANCE LEASE RIGHT-OF-USE Leases We account for leases in accordance with ASC 842, “ Leases Leasing Transactions Our leased assets include offices and studios, transmitter locations, antenna sites, tower and tower sites, and land. Our lease portfolio has terms remaining from less than one-year Operating leases are reflected on our balance sheet within operating lease ROU assets and the related current and non-current Balance Sheet Supplemental balance sheet information related to leases is as follows: March 31, 2021 (Dollars in thousands) Related Party Other Total Operating Leases Operating leases ROU assets $ 6,642 $ 39,866 $ 46,508 Operating lease liabilities (current) $ 938 $ 7,677 $ 8,615 Operating lease liabilities (non-current) 5,860 40,198 46,058 Total operating lease liabilities $ 6,798 $ 47,875 $ 54,673 Weighted Average Remaining Lease Term Operating leases 8.2 years Finance leases 3.0 years Weighted Average Discount Rate Operating leases 7.95 % Finance leases 5.39 % Lease Expense The components of lease expense were as follows: Three Months Ended March 31, 2021 (Dollars in thousands) Amortization of finance lease ROU Assets $ 16 Interest on finance lease liabilities 2 Finance lease expense 18 Operating lease expense 3,214 Variable lease expense 190 Short-term lease expense 157 Total lease expense $ 3,579 Supplemental Cash Flow Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2021 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,569 Operating cash flows from finance leases 1 Financing cash flows from finance leases 16 Leased assets obtained in exchange for new operating lease liabilities $ 553 Leased assets obtained in exchange for new finance lease liabilities 2 Maturities Future minimum lease payments under leases that had initial or remaining non-cancelable Future minimum lease Operating Leases Related Party Other Total Finance Leases Total (Dollars in thousands) 2021 (Apr-Dec) $ 1,466 $ 11,042 $ 12,508 $ 65 $ 12,573 2022 1,620 10,744 12,364 57 12,421 2023 1,018 9,209 10,227 31 10,258 2024 1,014 7,030 8,044 12 8,056 2025 1,043 5,928 6,971 4 6,975 Thereafter 3,797 24,763 28,560 — 28,560 Undiscounted Cash Flows $ 9,958 $ 68,716 $ 78,674 $ 169 $ 78,843 Less: imputed interest (3,160 ) (20,841 ) (24,001 ) (15 ) (24,016 ) Total $ 6,798 $ 47,875 $ 54,673 $ 154 $ 54,827 Reconciliation to lease liabilities: Lease liabilities—current $ 938 $ 7,677 $ 8,615 $ 60 $ 8,675 Lease liabilities—long-term 5,860 40,198 46,058 94 46,152 Total Lease Liabilities $ 6,798 $ 47,875 $ 54,673 $ 154 $ 54,827 |
Broadcast Licenses
Broadcast Licenses | 3 Months Ended |
Mar. 31, 2021 | |
Text Block [Abstract] | |
Broadcast Licenses | NOTE 8. BROADCAST LICENSES We account for broadcast licenses in accordance with FASB ASC Topic 350 Intangibles—Goodwill and Other The following table presents the changes in broadcasting licenses that include acquisitions and divestitures of radio stations and FM translators. Twelve Months Ended Three Months Ended March 31, 2021 (Dollars in thousands) Balance before cumulative loss on impairment, beginning of period $ 441,143 $ 440,052 Accumulated loss on impairment, beginning of period (103,285 ) (120,279 ) Balance after cumulative loss on impairment, beginning of period 337,858 319,773 Dispositions of radio stations (1,091 ) — Impairments based on the estimated fair value of broadcast licenses (16,994 ) — Balance, end of period after cumulative loss on impairment $ 319,773 $ 319,773 Balance, end of period before cumulative loss on impairment $ 440,052 $ 440,052 Accumulated loss on impairment, end of period (120,279 ) (120,279 ) Balance, end of period after cumulative loss on impairment $ 319,773 $ 319,773 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 9. GOODWILL We account for goodwill in accordance with FASB ASC Topic 350 “ Intangibles—Goodwill and Other The following table presents the changes in goodwill including business acquisitions and dispositions as discussed in Note 3 of our Condensed Consolidated Financial Statements. Goodwill Twelve Months Ended Three Months Ended (Dollars in thousands) Balance, beginning of period before cumulative loss on impairment, $ 28,454 $ 28,520 Accumulated loss on impairment (4,456 ) (4,763 ) Balance, beginning of period after cumulative loss on impairment 23,998 23,757 Acquisitions of radio stations 66 — Impairments based on the estimated fair value goodwill (307 ) — Ending period balance $ 23,757 $ 23,757 Balance, end of period before cumulative loss on impairment 28,520 28,520 Accumulated loss on impairment (4,763 ) (4,763 ) Ending period balance $ 23,757 $ 23,757 |
Amortizable Intangible Assets
Amortizable Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets | NOTE 10. AMORTIZABLE INTANGIBLE ASSETS The following tables provide a summary of our significant classes of amortizable intangible assets: As of March 31, 2021 Accumulated Cost Amortization Net (Dollars in thousands) Customer lists and contracts $ 24,139 $ (22,690 ) $ 1,449 Domain and brand names 20,350 (19,367 ) 983 Favorable and assigned leases 2,188 (1,947 ) 241 Subscriber base and lists 9,886 (9,087 ) 799 Author relationships 2,771 (2,767 ) 4 Non-compete 2,041 (1,991 ) 50 Other amortizable intangible assets 1,666 (1,629 ) 37 $ 63,041 $ (59,478 ) $ 3,563 As of December 31, 2020 Accumulated Cost Amortization Net (Dollars in thousands) Customer lists and contracts $ 24,012 $ (22,533 ) $ 1,479 Domain and brand names 20,350 (19,127 ) 1,223 Favorable and assigned leases 2,188 (1,943 ) 245 Subscriber base and lists 9,886 (8,974 ) 912 Author relationships 2,771 (2,765 ) 6 Non-compete 2,041 (1,954 ) 87 Other amortizable intangible assets 1,666 (1,601 ) 65 $62,914 $(58,897) $4,017 Amortization expense was approximately $0.6 million and $1.0 million for the three-month periods ended March 31, 2021 and 2020, respectively. Based on the amortizable intangible assets as of March 31, 2021, we estimate amortization expense for the next five years to be as follows: Year Ended December 31, Amortization Expense (Dollars in thousands) 2021 (Apr – Dec) $ 1,297 2022 1,252 2023 717 2024 92 2025 8 Thereafter 197 Total $ 3,563 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 11. LONG-TERM DEBT Salem Media Group, Inc. has no independent assets or operations, the subsidiary guarantees relating to certain debt are full and unconditional and joint and several, and any subsidiaries of Salem Media Group, Inc. other than the subsidiary guarantors are minor. SBA PPP Loans We received $11.2 million in aggregate principal amount of PPP loans through the SBA that were available to our radio stations and networks under the CAA. The PPP loans and accrued interest are forgivable provided that the proceeds are used for eligible purposes, including payroll, benefits, rent and utilities within the covered period of up to 24 weeks from funding of the loans. The amount of PPP loan and accrued interest that is forgiven can be reduced if we reduce payroll or eliminate positions during the covered period. We are using, and intend to continue to use, the PPP loan proceeds according to the terms and will file timely applications for forgiveness. The PPP loans accrue interest at 1% annually and mature in five years for any amount that is not forgiven. The PPP loans are reflected in long-term debt in the accompanying condensed consolidated financial statements in accordance with FASB ASC Topic 470, Debt 6.75% Senior Secured Notes On May 19, 2017, we issued the Notes in a private placement. The Notes are guaranteed on a senior secured basis by our existing subsidiaries (the “Subsidiary Guarantors”). The Notes bear interest at a rate of 6.75% per year and mature on June 1, 2024, unless they are earlier redeemed or repurchased. Interest initially accrued on the Notes from May 19, 2017 and is payable semi-annually, in cash in arrears, on June 1 and December 1 of each year, commencing December 1, 2017. The Notes are secured by a first-priority lien on substantially all assets of ours and the Subsidiary Guarantors other than the ABL Facility Priority Collateral (as described below) (the “Notes Priority Collateral”). There is no direct lien on our FCC licenses to the extent prohibited by law or regulation (other than the economic value and proceeds thereof). The Notes were redeemable, in whole or in part, at any time on or before June 1, 2020 at a price equal to 100% of the principal amount of the Notes plus a “make-whole” premium as of, and accrued and unpaid interest, if any, to, but not including, the redemption date. At any time on or after June 1, 2020, the Notes are redeemable at the redemption prices (expressed as percentages of the principal amount to be redeemed) set forth in the Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date. The indenture relating to the Notes (the “Indenture”) contains covenants that, among other things and subject in each case to certain specified exceptions, limit our ability and the ability of our restricted subsidiaries to: (i) incur additional debt; (ii) declare or pay dividends, redeem stock or make other distributions to stockholders; (iii) make investments; (iv) create liens or use assets as security in other transactions; (v) merge or consolidate, or sell, transfer, lease or dispose of substantially all of our assets; (vi) engage in transactions with affiliates; and (vii) sell or transfer assets. The Indenture provides for the following events of default (each, an “Event of Default”): (i) default in payment of principal or premium on the Notes at maturity, upon repurchase, acceleration, optional redemption or otherwise; (ii) default for 30 days in payment of interest on the Notes; (iii) the failure by us or certain restricted subsidiaries to comply with other agreements in the Indenture or the Notes, in certain cases subject to notice and lapse of time; (iv) the failure of any guarantee by certain significant Subsidiary Guarantors to be in full force and effect and enforceable in accordance with its terms, subject to notice and lapse of time; (v) certain accelerations (including failure to pay within any grace period) of other indebtedness of ours or any restricted subsidiary if the amount accelerated (or so unpaid) is at least $15 million; (vi) certain judgments for the payment of money in excess of $15 million; (vii) certain events of bankruptcy or insolvency with respect to us or any significant subsidiary; and (viii) certain defaults with respect to any collateral having a fair market value in excess of $15 million. If an Event of Default occurs and is continuing, the Trustee or the holders of at least 25% in principal amount of the outstanding Notes may declare the principal of the Notes and any accrued interest on the Notes to be due and payable immediately, subject to remedy or cure in certain cases. Certain events of bankruptcy or insolvency are Events of Default which will result in the Notes being due and payable immediately upon the occurrence of such Events of Default. At March 31, 2021, we were, and we remain, in compliance with all of the covenants under the Indenture. Based on the balance of the Notes currently outstanding, we are required to pay $14.6 million per year in interest on the Notes. As of March 31, 2021, accrued interest on the Notes was $4.9 million. We incurred debt issuance costs of $6.3 million that were recorded as a reduction of the debt proceeds that are being amortized to non-cash We may from time to time, depending on market conditions and prices, contractual restrictions, our financial liquidity and other factors, seek to repurchase the Notes in open market transactions, privately negotiated transactions, by tender offer or otherwise, as market conditions warrant. Based on the then existing market conditions, we completed repurchases of our 6.75% Senior Secured Notes at amounts less than face value as follows: Date Principal Repurchased Cash Paid % of Face Value Bond Issue Costs Net Gain (Dollars in thousands) January 30, 2020 $ 2,250 $ 2,194 97.50 % $ 34 $ 22 January 27, 2020 1,245 1,198 96.25 % 20 27 December 27, 2019 3,090 2,874 93.00 % 48 167 November 27, 2019 5,183 4,548 87.75 % 82 553 November 15, 2019 3,791 3,206 84.58 % 61 524 March 28, 2019 2,000 1,830 91.50 % 37 134 March 28, 2019 2,300 2,125 92.38 % 42 133 February 20, 2019 125 114 91.25 % 2 9 February 19, 2019 350 319 91.25 % 7 24 February 12, 2019 1,325 1,209 91.25 % 25 91 January 10, 2019 570 526 92.25 % 9 35 December 21, 2018 2,000 1,835 91.75 % 38 127 December 21, 2018 1,850 1,702 92.00 % 35 113 December 21, 2018 1,080 999 92.50 % 21 60 November 17, 2018 1,500 1,357 90.50 % 29 114 May 4, 2018 4,000 3,770 94.25 % 86 144 April 10, 2018 4,000 3,850 96.25 % 87 63 April 9, 2018 2,000 1,930 96.50 % 43 27 $ 38,659 $ 35,586 $ 706 $ 2,367 Asset-Based Revolving Credit Facility On May 19, 2017, we entered into the ABL Facility pursuant to a Credit Agreement (the “Credit Agreement”) by and among us and our subsidiaries party thereto as borrowers, Wells Fargo Bank, National Association, as administrative agent and lead arranger, and the lenders that are parties thereto. We used the proceeds of the ABL Facility, together with the net proceeds from the Notes offering, to repay outstanding borrowings under our previously existing senior credit facilities, and related fees and expenses. Current proceeds from the ABL Facility are used to provide ongoing working capital and for other general corporate purposes, including permitted acquisitions. The ABL Facility is a five-year $30.0 million revolving credit facility due March 1, 2024, which includes a $5.0 million subfacility for standby letters of credit and a $7.5 million subfacility for swingline loans. All borrowings under the ABL Facility accrue interest at a rate equal to a base rate or LIBOR plus a spread. The spread, which is based on an availability-based measure, ranges from 0.50% to 1.00% for base rate borrowings and 1.50% to 2.00% for LIBOR borrowings. If an event of default occurs, the interest rate may increase by 2.00% per annum. Amounts outstanding under the ABL Facility may be paid and then reborrowed at our discretion without penalty or premium. Additionally, we pay a commitment fee on the unused balance from 0.25% to 0.375% per year based on the level of borrowings. On October 20, 2020, we entered into a fourth amendment to our ABL Facility that provides a one-time On April 7, 2020, we entered into a third amendment to ABL Facility that increased the advance rate on eligible accounts receivable from 85% to 90% and extended the maturity date from May 19, 2022 to March 1, 2024. The April 7, 2020 amendment also allows for an alternative benchmark rate that may include SOFR due to LIBOR being scheduled to be discontinued at the end of calendar year 2021. Availability under the ABL Facility is subject to a borrowing base consisting of (a) 90% of the eligible accounts receivable plus (b) a calculated amount based on the value of certain real property. As of March 31, 2021, the amount available under the ABL Facility was $26.1 million of which none was outstanding. The ABL Facility has a first-priority lien on our and the Subsidiary Guarantors’ accounts receivable, inventory, deposit and securities accounts, certain real estate and related assets (the “ABL Facility Priority Collateral”) and by a second-priority lien on the Notes Priority Collateral. There is no direct lien on our FCC licenses to the extent prohibited by law or regulation (other than the economic value and proceeds thereof). The Credit Agreement includes a springing fixed charge coverage ratio of 1.0 to 1.0, which is tested during the period commencing on the last day of the fiscal month most recently ended prior to the date on which Availability (as defined in the Credit Agreement) is less than the greater of 15% of the Maximum Revolver Amount (as defined in the Credit Agreement) and $4.5 million and continuing for a period of 60 consecutive days after the first day on which Availability exceeds such threshold amount. The Credit Agreement also includes other negative covenants that are customary for credit facilities of this type, including covenants that, subject to exceptions described in the Credit Agreement, restrict our ability and the ability of our subsidiaries (i) to incur additional indebtedness; (ii) to make investments; (iii) to make distributions, loans or transfers of assets; (iv) to enter into, create, incur, assume or suffer to exist any liens, (v) to sell assets; (vi) to enter into transactions with affiliates; (vii) to merge or consolidate with, or dispose of all assets to a third party, except as permitted thereby; (viii) to prepay indebtedness; and (ix) to pay dividends. The Credit Agreement provides for the following events of default: (i) default for non-payment We incurred debt issue costs of $0.9 million that were recorded as an asset and are being amortized to non-cash We report outstanding balances on the ABL Facility as short-term regardless of the maturity date based on use of the ABL Facility to fund ordinary and customary operating cash needs with frequent repayments. We believe that our borrowing capacity under the ABL Facility allows us to meet our ongoing operating requirements, fund capital expenditures and satisfy our debt service requirements for at least the next twelve months. Summary of long-term debt obligations Long-term debt consisted of the following: As of As of March 31, 2021 (Dollars in thousands) 6.75% Senior Secured Notes $ 216,341 $ 216,341 Less unamortized debt issuance costs based on imputed interest rate of 7.08% (2,577 ) (2,393 ) 6.75% Senior Secured Notes net carrying value 213,764 213,948 Asset-Based Revolving Credit Facility principal outstanding 5,000 — SBA Paycheck Protection Plan loans — 11,195 Long-term debt less unamortized debt issuance costs $ 218,764 $ 225,143 Less current portion (5,000 ) — Long-term debt less unamortized debt issuance costs, net of current portion $ 213,764 $ 225,143 In addition to the outstanding amounts listed above, we also have interest payments related to our long-term debt as follows as of March 31, 2021: • $216.3 million aggregate principal amount of Notes with semi-annual interest payments at an annual rate of 6.75%; and • Commitment fee of 0.25% to 0.375% per annum on the unused portion of the ABL Facility. Maturities of Long-Term Debt Principal repayment requirements under all long-term debt agreements outstanding at March 31, 2021 for each of the next five years and thereafter are as follows: For the Year Ended March 31, Amount (Dollars in thousands) 2022 $ — 2023 — 2024 216,341 2025 — 2026 11,195 Thereafter — $ 227,536 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 12. FAIR VALUE MEASUREMENTS Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” FASB ASC Topic 820 “ Fair Value Measurements and Disclosures,” • Level 1 Inputs • Level 2 Inputs • Level 3 Inputs Under ASC 820, a fair value measurement of a nonfinancial asset considers a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. Therefore, fair value is a market-based measurement and not an entity-specific measurement. It is determined based on assumptions that market participants would use in pricing the asset or liability. The exit price objective of a fair value measurement applies regardless of the reporting entity’s intent and/or ability to sell the asset or transfer the liability at the measurement date. As of March 31, 2021, the carrying value of cash and cash equivalents, trade accounts receivables, accounts payable, accrued expenses and accrued interest approximates fair value due to the short-term nature of such instruments. The carrying amount and the estimated fair value of the Notes at March 31, 2021 was $216.3 million, respectively, based on the prevailing interest rates and trading activity of our Notes. We have certain assets that are measured at fair value on a non-recurring The following table summarizes the fair value of our financial assets and liabilities that are measured at fair value: March 31, 2021 Carrying Value on Fair Value Measurement Category Level 1 Level 2 Level 3 (Dollars in thousands) Liabilities: Estimated fair value of contingent earn-out $ 11 — — $ 11 Long-term debt less unamortized debt issuance costs 225,143 — 213,948 — |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13. INCOME TAXES We recognize deferred tax assets and liabilities for future tax consequences attributable to differences between our consolidated financial statement carrying amount of assets and liabilities and their respective tax bases. We measure these deferred tax assets and liabilities using enacted tax rates expected to apply in the years in which these temporary differences are expected to reverse. We recognize the effect on deferred tax assets and liabilities resulting from a change in tax rates in income in the period that includes the date of the change. At December 31, 2020, we had net operating loss carryforwards for federal income tax purposes of approximately $135.3 million that expire in years 2021 through 2038 and for state income tax purposes of approximately $610.8 million that expire in years 2021 through 2040. As a result of our adjusted cumulative three-year pre-tax COVID-19 The amortization of our indefinite-lived intangible assets for tax purposes, but not for book purposes, creates deferred tax liabilities. A reversal of deferred tax liabilities may occur when indefinite-lived intangibles: (1) become impaired; or (2) are sold, which would typically only occur in connection with the sale of the assets of a station or groups of stations or the entire company in a taxable transaction. Due to the amortization for tax purposes and not book purposes of our indefinite-lived intangible assets, we expect to continue to generate deferred tax liabilities in future periods exclusive of any impairment losses in future periods. These deferred tax liabilities and net operating loss carryforwards result in differences between our provision for income tax and cash paid for taxes. Valuation Allowance (Deferred Taxes) For financial reporting purposes, we recorded a valuation allowance of $28.4 million as of December 31, 2020 to offset $28.4 million of the deferred tax assets related to the federal net operating loss carryforwards, and $19.7 million of the deferred tax assets related to state net operating loss carryforwards of $15.7 million and other financial statement accrual assets of $4.0 million, for a total valuation allowance of $48.1 million for the year ended December 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14. COMMITMENTS AND CONTINGENCIES The company enters into various agreements in the normal course of business that contain minimum guarantees. Minimum guarantees are typically tied to future events, such as future revenue earned in excess of the contractual level. Accordingly, the fair value of these arrangements is zero. The company also records contingent earn-out earn-out earn-out earn-out earn-out earn-out earn-out The company and its subsidiaries, incident to its business activities, are parties to a number of legal proceedings, lawsuits, arbitration and other claims. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. The company evaluates claims based on what we believe to be both probable and reasonably estimable. The company maintains insurance that may provide coverage for such matters. Consequently, the company is unable to ascertain the ultimate aggregate amount of monetary liability or the financial impact with respect to these matters. The company believes, at this time, that the final resolution of these matters, individually and in the aggregate, will not have a material adverse effect upon the company’s condensed consolidated financial position, results of operations or cash flows. |
Stock Incentive Plan
Stock Incentive Plan | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plan | NOTE 15. STOCK INCENTIVE PLAN Our Amended and Restated 1999 Stock Incentive Plan (the “Plan”) provides for grants of equity-based awards to employees, non-employee A maximum of 8,000,000 shares are authorized under the Plan. All awards have restriction periods tied primarily to employment and/or service. The Plan allows for accelerated or continued vesting in certain circumstances as defined in the Plan including death, disability, a change in control, and termination or retirement. The Board of Directors, or a committee appointed by the Board, has discretion subject to limits defined in the Plan, to modify the terms of any outstanding award. Awards granted to non-employee c 505-50 Equity Based Payments to Non-Employees Under the Plan, the Board, or a committee appointed by the Board, may impose restrictions on the exercise of awards during pre-defined 10b5-1 pre-established We recognize non-cash Compensation—Stock Compensation Three Months Ended March 31, 2020 2021 (Dollars in thousands) Stock option compensation expense included in corporate expenses $ 50 $ 28 Stock option compensation expense included in broadcast operating expenses 37 28 Stock option compensation expense included in digital media operating expenses 15 22 Stock option compensation expense included in publishing operating expenses 1 — Total stock-based compensation expense, pre-tax $ 103 $ 78 Tax benefit (expense) for stock-based compensation expense (27 ) 20 Total stock-based compensation expense, net of tax $ 76 $ 58 Stock Option and Restricted Stock Grants Eligible employees may receive stock option awards annually with the number of shares and type of instrument generally determined by the employee’s salary grade and performance level. Incentive and non-qualified The Plan also allows for awards of restricted stock that contain transfer restrictions under which they cannot be sold, pledged, transferred or assigned until the period specified in the award, generally from one to five years. Restricted stock awards are independent of option grants and are granted at no cost to the recipient other than applicable taxes owed by the recipient. The awards are considered issued and outstanding from the date of grant. The fair value of each award is estimated as of the date of the grant using the Black-Scholes valuation model. The expected volatility reflects the consideration of the historical volatility of our common stock as determined by the closing price over a six to ten-year The weighted-average assumptions used to estimate the fair value of the stock options using the Black-Scholes valuation model were as follows for the three-month periods ended March 31, 2021 and 2020: Three Months Ended Three Months Ended March 31, 2020 March 31, 2021 Expected volatility 53.96 % 74.83 % Expected dividends 7.30 % 0.00 % Expected term (in years) 7.6 7.7 Risk-free interest rate 1.14 % 0.96 % Activity with respect to the c Options Shares Weighted Weighted Weighted Average Aggregate (Dollars in thousands, except weighted average exercise price and weighted Outstanding at January 1, 2021 2,291,020 $ 3.23 $ 1.52 4.3 years $ — Granted 210,000 2.01 1.44 — Exercised (185,782 ) 2.11 0.97 188 Forfeited or expired (151,946 ) 6.77 4.82 — Outstanding at March 31, 2021 2,163,292 $ 2.96 $ 1.33 4.8 years $ 1,360 Exercisable at March 31, 2021 1,086,417 $ 3.92 $ 1.76 2.8 years $ 248 Expected to Vest 1,022,493 $ 2.98 $ 1.34 4.7 years $ 1,056 Activity with respect to the c Restricted Stock Awards Shares Weighted Average Weighted Average Aggregate (Dollars in thousands, except weighted average exercise price and weighted Outstanding at January 1, 2021 107,990 $ 1.85 1.67 years $ 112 Granted — — — — Lapsed — — — — Forfeited — — — — Outstanding at March 31, 2021 107,990 $ 1.85 0.4 years $ 317 The aggregate intrinsic value represents the difference between the c As of March 31, 2021, there was $18,000 of total unrecognized compensation cost related to non-vested |
Equity Transactions
Equity Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Federal Home Loan Banks [Abstract] | |
Equity Transactions | NOTE 16. EQUITY TRANSACTIONS We account for stock-based compensation expense in accordance with FASB ASC Topic 718, Compensation-Stock Compensation non-cash paid-in The declaration of any future distributions and the establishment of the per share amount, record dates, and payment dates are subject to final determination by our Board of Directors and dependent upon future earnings, cash flows, financial and legal requirements, and other factors. On May 6, 2020, our Board of Directors voted to discontinue equity distributions until further notice due to the adverse economic impact of the COVID-19 |
Segment Data
Segment Data | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Data | NOTE 17. SEGMENT DATA FASB ASC Topic 280, “ Segment Reporting We measure and evaluate our operating segments based on operating income and operating expenses that do not include allocations of costs related to corporate functions, such as accounting and finance, human resources, legal, tax and treasury, which are reported as unallocated corporate expenses in our condensed consolidated statements of operations included in this quarterly report on Form 10-Q. Segment performance, as defined by Salem, is not necessarily comparable to other similarly titled captions of other companies. Our foundational business is radio broadcasting, which includes the ownership and operation of radio stations in large metropolitan markets. Our broadcasting segment includes our national networks and national sales firms. National companies often prefer to advertise across the United States as an efficient and cost-effective way to reach their target audiences. Our national platform under which we offer radio airtime, digital campaigns and print advertisements can benefit national companies by reaching audiences throughout the United States. Salem Radio Network TM TM TM TM TM TM TM TM ® Salem Media Representatives (“SMR”) is our national advertising sales firm with offices in 12 U.S. cities. SMR specializes in placing national advertising on Christian and talk formatted radio stations as well as other commercial radio station formats. SMR sells commercial airtime to national advertisers on our radio stations and through our networks, as well as for independent radio station affiliates. SMR also contracts with independent radio stations to create custom advertising campaigns for national advertisers to reach multiple markets. Salem Surround, our national multimedia advertising agency with locations in 33 markets across the United States, offers a comprehensive suite of digital marketing services to develop and execute audience-based marketing strategies for clients on both the national and local level. Salem Surround specializes in digital marketing services for each of our radio stations and websites as well as provides a full-service digital marketing strategy for each of our clients. Digital Media Our digital media-based businesses provide Christian, conservative, investing content, e-commerce, ® ® ™ ™ ® ® ™ ® ® non-individualized Our church e-commerce ™ ™ Our web content is accessible through all of our radio station websites that feature content of interest to local audiences throughout the United States. Publishing Our publishing operating segment includes three businesses: (1) Regnery ® Singing News ® , The table below presents financial information for each operating segment as of March 31, 2021 and 2020 based on the composition of our operating segments: Broadcast Digital Media Publishing Unallocated Consolidated (Dollars in thousands) Three Months Ended March 31, 2021 Net revenue $ 44,048 $ 9,619 $ 5,686 $ — $ 59,353 Operating expenses 33,343 8,673 5,205 4,288 51,509 Net operating income (loss) before depreciation, amortization, and net (gain) loss on the disposition of assets $ 10,705 $ 946 $ 481 $ (4,288 ) $ 7,844 Depreciation 1,525 781 47 236 2,589 Amortization 4 432 145 — 581 Net (gain) loss on the disposition of assets 318 — — — 318 Net operating income (loss) $ 8,858 $ (267 ) $ 289 $ (4,524 ) $ 4,356 Three Months Ended March 31, 2020 Net revenue $ 45,180 $ 9,104 $ 3,966 $ — $ 58,250 Operating expenses 37,327 8,326 5,062 4,210 54,925 Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out $ 7,853 $ 778 $ (1,096 ) $ (4,210 ) $ 3,325 Depreciation 1,645 771 69 228 2,713 Amortization 9 768 210 — 987 Change in the estimated fair value of contingent earn-out — (5 ) — — (5 ) Impairment of indefinite-lived long-term assets other than goodwill 16,994 — 260 — 17,254 Impairment of goodwill 184 10 105 8 307 Net (gain) loss on the disposition of assets 79 — — — 79 Net operating income (loss) $ (11,058 ) $ (766 ) $ (1,740 ) $ (4,446 ) $ (18,010 ) Broadcast Digital Media Publishing Unallocated Consolidated (Dollars in thousands) As of March 31, 2021 Inventories, net $ — $ — $ 588 $ — $ 588 Property and equipment, net 63,671 5,977 732 8,218 78,598 Broadcast licenses 319,773 — — — 319,773 Goodwill 2,746 19,565 1,446 — 23,757 Amortizable intangible assets, net 242 3,129 192 — 3,563 As of December 31, 2020 Inventories, net $ — $ — $ 495 $ — $ 495 Property and equipment, net 64,231 6,221 741 7,929 79,122 Broadcast licenses 319,773 — — — 319,773 Goodwill 2,746 19,565 1,446 — 23,757 Amortizable intangible assets, net 246 3,434 337 — 4,017 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18. SUBSEQUENT EVENTS On April 28, 2021, we closed on the acquisition of the Centerline New Media domain and digital assets for $1.3 million of cash. The digital content library will be operated within Salem Web Network’s church products division. On April 20, 2021 we entered into an APA to sell Singing News Magazine and Singing News Radio (formerly Solid Gospel Network) for $0.1 million in cash. The buyer will assume the deferred subscription liability of $0.4 million. The sale is expected to close in the second quarter of 2021. On April 10, 2021, we entered into an agreement to sell approximately 34 acres of land in Lewisville, Texas, currently being used as the transmitter site for c KSKY-AM, Shelf Registration Statement and At-the-Market In April 2021, we filed a prospectus supplement to our shelf registration statement on Form S-3 c at-the-market Subsequent events reflect all applicable transactions through the date of the filing. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Business | Business Salem Media Group, Inc. (“Salem,” “we,” “us,” “our” or the “company”) is a domestic multimedia company specializing in Christian and conservative content. Our media properties include radio broadcasting, digital media, and publishing entities. We have three operating segments: (1) Broadcast, (2) Digital Media, and (3) Publishing, which are discussed in Note 17 – Segment Data. |
Impact Of The COVID19 Pandemic | Impact of the COVID-19 The COVID-19 COVID-19 stay-at-home While the disruption is expected to be temporary, there remains to be considerable uncertainty around the duration. Advertising revenue continues to improve over the lowest levels that were experienced during April and May of 2020, but remain significantly below prior years. The exact timing and pace of the economic recovery has not been determinable as certain markets have reopened, some of which have since experienced a resurgence of COVID-19 stay-at-home COVID-19’s COVID-19 Lower revenue and longer days to collect receivables negatively impacts future availability under our credit facility. Availability under our Asset Based Loan (“ABL Facility”) is subject to a borrowing base consisting of (a) 90% of the eligible accounts receivable plus (b) a calculated amount based on the value of certain real property. The maximum amount available under our ABL Facility was $26.1 million at March 31, 2021 compared to $24.8 million at December 31, 2020, of which none was outstanding at March 31, 2021 compared to $5.0 million outstanding at December 31, 2020. We implemented several measures during 2020 to reduce costs and conserve cash to ensure that we have adequate cash to meet our debt servicing requirements, including: • limiting capital expenditures; • reducing discretionary spending, including travel and entertainment; • eliminating open positions and freezing new hires; • reducing staffing levels; • implementing temporary company-wide pay cuts of 5%, 7.5% or 10% depending on salary level; • furloughing certain employees; • temporarily suspending the company 401(k) match; • requesting rent concessions from landlords; • requesting discounts from vendors; • offering early payment discounts to certain customers in exchange for advance cash payments; and • suspending the payment of distributions on our common stock indefinitely. As the economy begins to show signs of recovery, many of these cost reduction initiatives have or will be reversed during 2021. We continue to operate with lower staffing levels, have not reinstated the company 401(k) match and have not paid equity distributions on our common stock. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act provides opportunities for additional liquidity, loan guarantees, and other government programs to support companies affected by the COVID-19 • we deferred $3.3 million of employer FICA taxes from April 2020 through December 2020 , with 50% payable in December 2021 and 50% payable in December 2022; • relaxation of interest expense deduction limitation for income tax purposes; and • Paycheck Protection Plan (“PPP”) loans available based on the eligibility determined on a per-location We believe that our customers have benefited from the enhanced benefits provided by the CARES Act, and that they will also benefit from the CAA. The CAA provides for another round of direct payments, enhanced unemployment benefits, education funding, and aid to sectors still reeling from the economic fallout of the pandemic. While these measures may benefit many of our customers, we cannot assure you that the implementation of these measures will offset the negative impact of COVID-19 We continue to review and consider any available potential benefit under the CARES Act and the CAA for which we qualify. We cannot predict the manner in which such benefits or any of the other benefits described herein will be allocated or administered and we cannot assure you that we will be able to access such benefits in a timely manner or at all. If the U.S. government or any other governmental authority agrees to provide such aid under the CARES Act, the CAA, or any other crisis relief assistance it may impose certain requirements on the recipients of the aid, including restrictions on executive officer compensation, dividends, prepayment of debt, limitations on debt and other similar restrictions that may apply for a period of time after the aid is repaid or redeemed in full. |
Basis Of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements of Salem include the company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Information with respect to the three months ended March 31, 2021 and 2020 is unaudited. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. 10-K The balance sheet at December 31, 2020 included in this report has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results can be materially different from these estimates and assumptions. Significant areas for which management uses estimates include: • revenue recognition; • asset impairments, including broadcasting licenses, goodwill and other indefinite-lived intangible assets; • probabilities associated with the potential for contingent earn-out • fair value measurements; • contingency reserves; • allowance for doubtful accounts; • sales returns and allowances; • barter transactions; • inventory reserves; • reserves for royalty advances; • fair value of equity awards; • self-insurance reserves; • estimated lives for tangible and intangible assets; • assessment of contract-based factors, asset-based factors, entity-based factors and market-based factors to determine the lease term impacting Right-Of-Use • determining the Incremental Borrowing Rate (“IBR”) for calculating ROU assets and lease liabilities, • income tax valuation allowances; • uncertain tax positions; and • estimates used in going concern analysis. These estimates require the use of judgment as future events and the effect of these events cannot be predicted with certainty. The estimates will change as new events occur, as more experience is acquired and as more information is obtained. We evaluate and update our assumptions and estimates on an ongoing basis and we may consult outside experts to assist as considered necessary. The COVID-19 |
Revenue Recognition | We recognize revenue in accordance with ASC 606, “ Revenue from Contracts with Customers” Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Contract Assets Contract Assets—Costs to Obtain a Contract: Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. Additionally, new customers, existing customers without approved credit terms and authors purchasing specific self-publishing services, are required to make payments in advance of the delivery of the products or performance of the services. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, including payments that are refundable if the customer cancels the contract according to the contract terms. Contract liabilities were historically recorded under the caption “deferred revenue” and are reported as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. Long-term contract liabilities represent the amount of payments received in excess of revenue earned, including those that are refundable, when the time to fulfill the performance obligation is greater than one year. Our long-term liabilities consist of subscriptions with a term of two-years Significant changes in our contract liabilities balances during the period are as follows: Short- Long- (Dollars in thousands) Balance, beginning of period January 1, 2021 $ 11,652 $ 1,869 Revenue recognized during the period that was included in the beginning balance of contract liabilities (3,814 ) — Additional amounts recognized during the period 7,087 524 Revenue recognized during the period that was recorded during the period (2,559 ) — Transfers 234 (234 ) Balance, end of period March 31, 2021 $ 12,600 2,159 Amount refundable at beginning of period $ 11,607 1,869 Amount refundable at end of period $ 12,588 2,159 We expect to satisfy these performance obligations as follows: Amount For the Twelve Months Ended March 31, (Dollars in thousands) 2022 $ 12,600 2023 1,365 2024 472 2025 184 2026 55 Thereafter 83 $ 14,759 Significant Financing Component The length of our typical sales agreement is less than 12 months; however, we may sell subscriptions with a two-year Our self-publishing contracts may exceed a one-year Variable Consideration Like former revenue recognition guidance, we continue to make significant estimates related to variable consideration at the point of sale, including estimates for refunds and product returns. Under ASC 606, estimates of variable consideration are to be recognized before contingencies are resolved in certain circumstances, including when it is probable that a significant reversal in the amount of any estimated cumulative revenue will not occur. We enter into agreements under which the amount of revenue we earn is contingent upon the amount of money raised by our customer over the contract term. Our customer is typically a charity or programmer that purchases blocks of programming time or spots to generate revenue from our audience members. Contract terms can range from a few weeks to a few months, depending the charity or programmer. If the campaign does not generate a pre-determined Based on the constraints for using estimates of variable consideration within ASC 606, and our historical experience with these campaigns, we will continue to recognize revenue at the base amount of the campaign with variable consideration recognized when the uncertainty of each campaign is resolved. These constraints include: (1) the amount of consideration received is highly susceptible to factors outside of our influence, specifically the extent to which our audience donates or contributes to our customer or programmer, (2) the length of time in which the uncertainty about the amount of consideration expected is to be resolved, and (3) our experience has shown these contracts have a large number and broad range of possible outcomes. Practical Expedients and Exemptions We elected certain practical expedients and policy elections as follows: • We do not adjust the promised amount of consideration for the effects of a significant financing component if the period between transfer of product and customer payment is expected to be less than one year at the time of contract inception; • We do not assess promised goods or services as performance obligations if they are immaterial in the context of the contract with the customer; • We exclude sales and similar taxes from the transaction price; • We treat shipping and handling costs that occur after control transfers as fulfillment activities instead of assessing such activities as separate performance obligations; and • We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. A summary of our principal sources of revenue is as follows: Block Programming . 1 2 50-minutes Spot Advertising Network Revenue . Digital Advertising. Broadcast digital advertising revenue consists of local digital advertising, such as the sale of banner advertisements on our owned and operated websites, the sale of advertisements on our own and operated mobile applications, and advertisements in digital newsletters that we produce, as well as national digital advertising, or the sale of custom digital advertising solutions, such as web pages and social media campaigns, that we offer to our customers. Advertising revenue is recorded on a gross basis unless an agency represents the advertiser, in which case, revenue is reported net of the commission retained by the agency. Salem Surround, our national multimedia advertising agency, offers a comprehensive suite of digital marketing services to develop and execute audience-based marketing strategies for clients on both the national and local level. Salem Surround specializes in digital marketing services for each of our radio stations and websites as well as provides a full-service digital marketing strategy for each of our clients. In our role as a digital agency, our sales team provides our customers with integrated digital advertising solutions that optimize the performance of their campaign, which we view as one performance obligation. Our advertising campaigns are designed to be “white label” agreements between Salem and our advertiser, meaning we provide special care and attention to the details of the campaign. We provide custom digital product offerings, including tools for metasearch, retargeting, website design, reputation management, online listing services, and social media marketing. Digital advertising solutions may include third-party websites, such as Google or Facebook, which can be included in a digital advertising social media campaign. We manage all aspects of the digital campaign, including social media placements, review and approval of target audiences, and the monitoring of actual results to make modifications as needed. We may contract directly with a third-party, however, we are responsible for delivering the campaign results to our customer with or without the third-party. We are responsible for any payments due to the third-party regardless of the campaign results and without regard to the status of payment from our customer. We have discretion in setting the price to our customer without input or approval from the third-party. Accordingly, revenue is reported gross, as principal, as the performance obligation is delivered, which represents the point in time that control is transferred to the customer thereby completing our performance obligation. Digital Streaming Digital Downloads and e-books e-books. Subscriptions on-air 30-day pro-rata Book Sales e-Commerce E-Commerce re-saleable Self-Publishing Fees e-Books. Revenue is recognized upon completion of each performance obligation, which represents the point in time that control of the product is transferred to the author, thereby completing our performance obligation. Revenue is recorded at the net amount due from the author, including discounts based on the service package. Advertising—Print Other Revenues . on-air Trade and Barter Transactions In broadcasting, trade or barter agreements are commonly used to reduce cash expenses by exchanging advertising time for goods or services. We may enter barter agreements to exchange airtime or digital advertising for goods or services that can be used in our business or that can be sold to our audience under Listener Purchase Programs. The terms of these barter agreements permit us to preempt the barter airtime or digital campaign in favor of customers who purchase the airtime or digital campaign for cash. The value of these non-cash Trade and barter revenues and expenses were as follows: Three Months Ended March 31, 2020 2021 Net broadcast barter revenue $ 1,166 $ 391 Net digital media barter revenue — — Net publishing barter revenue 26 — Net broadcast barter expense $ 1,034 $ 373 Net digital media barter expense — — Net publishing barter expense — — The following table presents our revenues disaggregated by revenue source for each of our operating segments: Three Months Ended March 31, 2021 Broadcast Digital Media Publishing Consolidated (dollars in thousands) By Source of Revenue: Block Programming—National $ 11,461 $ — $ — $ 11,461 Block Programming—Local 5,956 — — 5,956 Spot Advertising—National 3,660 — — 3,660 Spot Advertising—Local 8,895 — — 8,895 Infomercials 237 — — 237 Network 4,871 — — 4,871 Digital Advertising 5,781 4,413 62 10,256 Digital Streaming 853 844 — 1,697 Digital Downloads and eBooks 60 1,479 339 1,878 Subscriptions 286 2,773 158 3,217 Book Sales and e-commerce, 89 31 3,208 3,328 Self-Publishing Fees — — 1,624 1,624 Print Advertising — — 68 68 Other Revenues 1,899 79 227 2,205 $ 44,048 $ 9,619 $ 5,686 $ 59,353 Timing of Revenue Recognition Point in Time $ 43,425 $ 9,619 5,686 $ 58,730 Rental Income (1) 623 — — 623 $ 44,048 $ 9,619 $ 5,686 $ 59,353 Three Months Ended March 31, 2020 Broadcast Digital Media Publishing Consolidated (dollars in thousands) By Source of Revenue: Block Programming—National $ 12,034 $ — $ — $ 12,034 Block Programming—Local 6,808 — — 6,808 Spot Advertising—National 3,957 — — 3,957 Spot Advertising—Local 11,357 — — 11,357 Infomercials 308 — — 308 Network 4,388 — — 4,388 Digital Advertising 3,326 4,713 99 8,138 Digital Streaming 608 915 — 1,523 Digital Downloads and eBooks — 1,245 254 1,499 Subscriptions 282 2,135 177 2,594 Book Sales and e-commerce, 76 28 1,723 1,827 Self-Publishing Fees — — 1,402 1,402 Print Advertising 1 — 102 103 Other Revenues 2,035 68 209 2,312 $ 45,180 $ 9,104 $ 3,966 $ 58,250 Timing of Revenue Recognition Point in Time $ 44,563 $ 9,104 $ 3,966 $ 57,633 Rental Income (1) 617 — — 617 $ 45,180 $ 9,104 $ 3,966 $ 58,250 (1) Rental income is not applicable to ASC Topic 606, but shown for the purpose of identifying each revenue source presented in total revenue on our Condensed Consolidated Financial Statements within this report on Form 10-Q. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to accounting principles are established by the FASB in the form of ASUs to the FASB’s Codification. We consider the applicability and impact of all ASUs on our financial position, results of operations, cash flows, or presentation thereof. Described below are ASUs that may be applicable to our financial position, results of operations, cash flows, or presentation thereof. ASUs not listed below were assessed and determined to not be applicable to our financial position, results of operations, cash flows, or presentation thereof. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope Reference Rate Reform In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, held-to-maturity available-for-sale 2016-13, 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses 2016-13. 2018-19 2016-13. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments 2016-13. 2019-05, Financial Instruments – Credit Losses (Topic 326) 2016-13. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Significant Changes in Our Contract Liabilities | Significant changes in our contract liabilities balances during the period are as follows: Short- Long- (Dollars in thousands) Balance, beginning of period January 1, 2021 $ 11,652 $ 1,869 Revenue recognized during the period that was included in the beginning balance of contract liabilities (3,814 ) — Additional amounts recognized during the period 7,087 524 Revenue recognized during the period that was recorded during the period (2,559 ) — Transfers 234 (234 ) Balance, end of period March 31, 2021 $ 12,600 2,159 Amount refundable at beginning of period $ 11,607 1,869 Amount refundable at end of period $ 12,588 2,159 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | We expect to satisfy these performance obligations as follows: Amount For the Twelve Months Ended March 31, (Dollars in thousands) 2022 $ 12,600 2023 1,365 2024 472 2025 184 2026 55 Thereafter 83 $ 14,759 |
Trade and Barter Transactions Expenses | Trade and barter revenues and expenses were as follows: Three Months Ended March 31, 2020 2021 Net broadcast barter revenue $ 1,166 $ 391 Net digital media barter revenue — — Net publishing barter revenue 26 — Net broadcast barter expense $ 1,034 $ 373 Net digital media barter expense — — Net publishing barter expense — — |
Reconciliation of Revenue from Segments to Consolidated | The following table presents our revenues disaggregated by revenue source for each of our operating segments: Three Months Ended March 31, 2021 Broadcast Digital Media Publishing Consolidated (dollars in thousands) By Source of Revenue: Block Programming—National $ 11,461 $ — $ — $ 11,461 Block Programming—Local 5,956 — — 5,956 Spot Advertising—National 3,660 — — 3,660 Spot Advertising—Local 8,895 — — 8,895 Infomercials 237 — — 237 Network 4,871 — — 4,871 Digital Advertising 5,781 4,413 62 10,256 Digital Streaming 853 844 — 1,697 Digital Downloads and eBooks 60 1,479 339 1,878 Subscriptions 286 2,773 158 3,217 Book Sales and e-commerce, 89 31 3,208 3,328 Self-Publishing Fees — — 1,624 1,624 Print Advertising — — 68 68 Other Revenues 1,899 79 227 2,205 $ 44,048 $ 9,619 $ 5,686 $ 59,353 Timing of Revenue Recognition Point in Time $ 43,425 $ 9,619 5,686 $ 58,730 Rental Income (1) 623 — — 623 $ 44,048 $ 9,619 $ 5,686 $ 59,353 Three Months Ended March 31, 2020 Broadcast Digital Media Publishing Consolidated (dollars in thousands) By Source of Revenue: Block Programming—National $ 12,034 $ — $ — $ 12,034 Block Programming—Local 6,808 — — 6,808 Spot Advertising—National 3,957 — — 3,957 Spot Advertising—Local 11,357 — — 11,357 Infomercials 308 — — 308 Network 4,388 — — 4,388 Digital Advertising 3,326 4,713 99 8,138 Digital Streaming 608 915 — 1,523 Digital Downloads and eBooks — 1,245 254 1,499 Subscriptions 282 2,135 177 2,594 Book Sales and e-commerce, 76 28 1,723 1,827 Self-Publishing Fees — — 1,402 1,402 Print Advertising 1 — 102 103 Other Revenues 2,035 68 209 2,312 $ 45,180 $ 9,104 $ 3,966 $ 58,250 Timing of Revenue Recognition Point in Time $ 44,563 $ 9,104 $ 3,966 $ 57,633 Rental Income (1) 617 — — 617 $ 45,180 $ 9,104 $ 3,966 $ 58,250 (1) Rental income is not applicable to ASC Topic 606, but shown for the purpose of identifying each revenue source presented in total revenue on our Condensed Consolidated Financial Statements within this report on Form 10-Q. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory on Hand by Segment | The following table provides details of inventory on hand: December 31, 2020 March 31, 2021 (Dollars in thousands) Book inventories $ 1,994 $ 2,027 Reserve for obsolescence (1,499 ) (1,439 ) Inventory, net— $ 495 $ 588 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Categories of Property and Equipment | The following is a summary of the categories of our property and equipment: As of December 31, 2020 As of March 31, 2021 (Dollars in thousands) Land $ 30,254 $ 30,254 Buildings 28,922 28,993 Office furnishings and equipment 36,875 37,289 Antennae, towers and transmitting equipment 78,057 78,152 Studio, production and mobile equipment 29,023 29,389 Computer software and website development costs 33,928 34,085 Record and tape libraries 17 17 Automobiles 1,514 1,514 Leasehold improvements 18,187 18,208 Construction-in-progress 2,681 3,833 $ 259,458 $ 261,734 Less accumulated depreciation (180,336 ) (183,136 ) $ 79,122 $ 78,598 |
Operating and Finance Lease R_2
Operating and Finance Lease Right-of-Use Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: March 31, 2021 (Dollars in thousands) Related Party Other Total Operating Leases Operating leases ROU assets $ 6,642 $ 39,866 $ 46,508 Operating lease liabilities (current) $ 938 $ 7,677 $ 8,615 Operating lease liabilities (non-current) 5,860 40,198 46,058 Total operating lease liabilities $ 6,798 $ 47,875 $ 54,673 Weighted Average Remaining Lease Term Operating leases 8.2 years Finance leases 3.0 years Weighted Average Discount Rate Operating leases 7.95 % Finance leases 5.39 % |
Components of Lease Expense | Lease Expense The components of lease expense were as follows: Three Months Ended March 31, 2021 (Dollars in thousands) Amortization of finance lease ROU Assets $ 16 Interest on finance lease liabilities 2 Finance lease expense 18 Operating lease expense 3,214 Variable lease expense 190 Short-term lease expense 157 Total lease expense $ 3,579 |
Schedule of other information related to leases | Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2021 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,569 Operating cash flows from finance leases 1 Financing cash flows from finance leases 16 Leased assets obtained in exchange for new operating lease liabilities $ 553 Leased assets obtained in exchange for new finance lease liabilities 2 |
Schedule of Future Minimum Lease Payments Based on Former Accounting Guidance | Future minimum lease payments under leases that had initial or remaining non-cancelable Future minimum lease Operating Leases Related Party Other Total Finance Leases Total (Dollars in thousands) 2021 (Apr-Dec) $ 1,466 $ 11,042 $ 12,508 $ 65 $ 12,573 2022 1,620 10,744 12,364 57 12,421 2023 1,018 9,209 10,227 31 10,258 2024 1,014 7,030 8,044 12 8,056 2025 1,043 5,928 6,971 4 6,975 Thereafter 3,797 24,763 28,560 — 28,560 Undiscounted Cash Flows $ 9,958 $ 68,716 $ 78,674 $ 169 $ 78,843 Less: imputed interest (3,160 ) (20,841 ) (24,001 ) (15 ) (24,016 ) Total $ 6,798 $ 47,875 $ 54,673 $ 154 $ 54,827 Reconciliation to lease liabilities: Lease liabilities—current $ 938 $ 7,677 $ 8,615 $ 60 $ 8,675 Lease liabilities—long-term 5,860 40,198 46,058 94 46,152 Total Lease Liabilities $ 6,798 $ 47,875 $ 54,673 $ 154 $ 54,827 |
Broadcast Licenses (Tables)
Broadcast Licenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | |
Schedule of Changes in Broadcasting Licenses | The following table presents the changes in broadcasting licenses that include acquisitions and divestitures of radio stations and FM translators. Twelve Months Ended Three Months Ended March 31, 2021 (Dollars in thousands) Balance before cumulative loss on impairment, beginning of period $ 441,143 $ 440,052 Accumulated loss on impairment, beginning of period (103,285 ) (120,279 ) Balance after cumulative loss on impairment, beginning of period 337,858 319,773 Dispositions of radio stations (1,091 ) — Impairments based on the estimated fair value of broadcast licenses (16,994 ) — Balance, end of period after cumulative loss on impairment $ 319,773 $ 319,773 Balance, end of period before cumulative loss on impairment $ 440,052 $ 440,052 Accumulated loss on impairment, end of period (120,279 ) (120,279 ) Balance, end of period after cumulative loss on impairment $ 319,773 $ 319,773 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of Changes in Goodwill | The following table presents the changes in goodwill including business acquisitions and dispositions as discussed in Note 3 of our Condensed Consolidated Financial Statements. Goodwill Twelve Months Ended Three Months Ended (Dollars in thousands) Balance, beginning of period before cumulative loss on impairment, $ 28,454 $ 28,520 Accumulated loss on impairment (4,456 ) (4,763 ) Balance, beginning of period after cumulative loss on impairment 23,998 23,757 Acquisitions of radio stations 66 — Impairments based on the estimated fair value goodwill (307 ) — Ending period balance $ 23,757 $ 23,757 Balance, end of period before cumulative loss on impairment 28,520 28,520 Accumulated loss on impairment (4,763 ) (4,763 ) Ending period balance $ 23,757 $ 23,757 |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Significant Classes of Amortizable Intangible Assets | The following tables provide a summary of our significant classes of amortizable intangible assets: As of March 31, 2021 Accumulated Cost Amortization Net (Dollars in thousands) Customer lists and contracts $ 24,139 $ (22,690 ) $ 1,449 Domain and brand names 20,350 (19,367 ) 983 Favorable and assigned leases 2,188 (1,947 ) 241 Subscriber base and lists 9,886 (9,087 ) 799 Author relationships 2,771 (2,767 ) 4 Non-compete 2,041 (1,991 ) 50 Other amortizable intangible assets 1,666 (1,629 ) 37 $ 63,041 $ (59,478 ) $ 3,563 As of December 31, 2020 Accumulated Cost Amortization Net (Dollars in thousands) Customer lists and contracts $ 24,012 $ (22,533 ) $ 1,479 Domain and brand names 20,350 (19,127 ) 1,223 Favorable and assigned leases 2,188 (1,943 ) 245 Subscriber base and lists 9,886 (8,974 ) 912 Author relationships 2,771 (2,765 ) 6 Non-compete 2,041 (1,954 ) 87 Other amortizable intangible assets 1,666 (1,601 ) 65 $62,914 $(58,897) $4,017 |
Amortizable Intangible Assets, Estimate Amortization Expense | Based on the amortizable intangible assets as of March 31, 2021, we estimate amortization expense for the next five years to be as follows: Year Ended December 31, Amortization Expense (Dollars in thousands) 2021 (Apr – Dec) $ 1,297 2022 1,252 2023 717 2024 92 2025 8 Thereafter 197 Total $ 3,563 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments Senior Secured Note | Based on the then existing market conditions, we completed repurchases of our 6.75% Senior Secured Notes at amounts less than face value as follows: Date Principal Repurchased Cash Paid % of Face Value Bond Issue Costs Net Gain (Dollars in thousands) January 30, 2020 $ 2,250 $ 2,194 97.50 % $ 34 $ 22 January 27, 2020 1,245 1,198 96.25 % 20 27 December 27, 2019 3,090 2,874 93.00 % 48 167 November 27, 2019 5,183 4,548 87.75 % 82 553 November 15, 2019 3,791 3,206 84.58 % 61 524 March 28, 2019 2,000 1,830 91.50 % 37 134 March 28, 2019 2,300 2,125 92.38 % 42 133 February 20, 2019 125 114 91.25 % 2 9 February 19, 2019 350 319 91.25 % 7 24 February 12, 2019 1,325 1,209 91.25 % 25 91 January 10, 2019 570 526 92.25 % 9 35 December 21, 2018 2,000 1,835 91.75 % 38 127 December 21, 2018 1,850 1,702 92.00 % 35 113 December 21, 2018 1,080 999 92.50 % 21 60 November 17, 2018 1,500 1,357 90.50 % 29 114 May 4, 2018 4,000 3,770 94.25 % 86 144 April 10, 2018 4,000 3,850 96.25 % 87 63 April 9, 2018 2,000 1,930 96.50 % 43 27 $ 38,659 $ 35,586 $ 706 $ 2,367 |
Long-Term Debt | Long-term debt consisted of the following: As of As of March 31, 2021 (Dollars in thousands) 6.75% Senior Secured Notes $ 216,341 $ 216,341 Less unamortized debt issuance costs based on imputed interest rate of 7.08% (2,577 ) (2,393 ) 6.75% Senior Secured Notes net carrying value 213,764 213,948 Asset-Based Revolving Credit Facility principal outstanding 5,000 — SBA Paycheck Protection Plan loans — 11,195 Long-term debt less unamortized debt issuance costs $ 218,764 $ 225,143 Less current portion (5,000 ) — Long-term debt less unamortized debt issuance costs, net of current portion $ 213,764 $ 225,143 |
Principle Repayment Requirements Under Long Term Agreements Outstanding | Principal repayment requirements under all long-term debt agreements outstanding at March 31, 2021 for each of the next five years and thereafter are as follows: For the Year Ended March 31, Amount (Dollars in thousands) 2022 $ — 2023 — 2024 216,341 2025 — 2026 11,195 Thereafter — $ 227,536 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities Measured at Fair Value | The following table summarizes the fair value of our financial assets and liabilities that are measured at fair value: March 31, 2021 Carrying Value on Fair Value Measurement Category Level 1 Level 2 Level 3 (Dollars in thousands) Liabilities: Estimated fair value of contingent earn-out $ 11 — — $ 11 Long-term debt less unamortized debt issuance costs 225,143 — 213,948 — |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized | The following table reflects the components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Operations for the three-month periods ended March 31, 2021 and 2020: Three Months Ended March 31, 2020 2021 (Dollars in thousands) Stock option compensation expense included in corporate expenses $ 50 $ 28 Stock option compensation expense included in broadcast operating expenses 37 28 Stock option compensation expense included in digital media operating expenses 15 22 Stock option compensation expense included in publishing operating expenses 1 — Total stock-based compensation expense, pre-tax $ 103 $ 78 Tax benefit (expense) for stock-based compensation expense (27 ) 20 Total stock-based compensation expense, net of tax $ 76 $ 58 |
Schedule of Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options and Restricted Stock Awards using Black-Scholes Option Valuation Model | The weighted-average assumptions used to estimate the fair value of the stock options using the Black-Scholes valuation model were as follows for the three-month periods ended March 31, 2021 and 2020: Three Months Ended Three Months Ended March 31, 2020 March 31, 2021 Expected volatility 53.96% 74.83% Expected dividends 7.30% 0.00% Expected term (in years) 7.6 7.7 Risk-free interest rate 1.14% 0.96% |
Schedule of Stock Option Activity | Activity with respect to the c Options Shares Weighted Weighted Weighted Average Aggregate (Dollars in thousands, except weighted average exercise price and weighted Outstanding at January 1, 2021 2,291,020 $ 3.23 $ 1.52 4.3 years $ — Granted 210,000 2.01 1.44 — Exercised (185,782 ) 2.11 0.97 188 Forfeited or expired (151,946 ) 6.77 4.82 — Outstanding at March 31, 2021 2,163,292 $ 2.96 $ 1.33 4.8 years $ 1,360 Exercisable at March 31, 2021 1,086,417 $ 3.92 $ 1.76 2.8 years $ 248 Expected to Vest 1,022,493 $ 2.98 $ 1.34 4.7 years $ 1,056 |
Schedule of Information Regarding Restricted Stock Activity | Activity with respect to the c Restricted Stock Awards Shares Weighted Average Weighted Average Aggregate (Dollars in thousands, except weighted average exercise price and weighted Outstanding at January 1, 2021 107,990 $ 1.85 1.67 years $ 112 Granted — — — — Lapsed — — — — Forfeited — — — — Outstanding at March 31, 2021 107,990 $ 1.85 0.4 years $ 317 |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data | The table below presents financial information for each operating segment as of March 31, 2021 and 2020 based on the composition of our operating segments: Broadcast Digital Media Publishing Unallocated Consolidated (Dollars in thousands) Three Months Ended March 31, 2021 Net revenue $ 44,048 $ 9,619 $ 5,686 $ — $ 59,353 Operating expenses 33,343 8,673 5,205 4,288 51,509 Net operating income (loss) before depreciation, amortization, and net (gain) loss on the disposition of assets $ 10,705 $ 946 $ 481 $ (4,288 ) $ 7,844 Depreciation 1,525 781 47 236 2,589 Amortization 4 432 145 — 581 Net (gain) loss on the disposition of assets 318 — — — 318 Net operating income (loss) $ 8,858 $ (267 ) $ 289 $ (4,524 ) $ 4,356 Three Months Ended March 31, 2020 Net revenue $ 45,180 $ 9,104 $ 3,966 $ — $ 58,250 Operating expenses 37,327 8,326 5,062 4,210 54,925 Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out $ 7,853 $ 778 $ (1,096 ) $ (4,210 ) $ 3,325 Depreciation 1,645 771 69 228 2,713 Amortization 9 768 210 — 987 Change in the estimated fair value of contingent earn-out — (5 ) — — (5 ) Impairment of indefinite-lived long-term assets other than goodwill 16,994 — 260 — 17,254 Impairment of goodwill 184 10 105 8 307 Net (gain) loss on the disposition of assets 79 — — — 79 Net operating income (loss) $ (11,058 ) $ (766 ) $ (1,740 ) $ (4,446 ) $ (18,010 ) Broadcast Digital Media Publishing Unallocated Consolidated (Dollars in thousands) As of March 31, 2021 Inventories, net $ — $ — $ 588 $ — $ 588 Property and equipment, net 63,671 5,977 732 8,218 78,598 Broadcast licenses 319,773 — — — 319,773 Goodwill 2,746 19,565 1,446 — 23,757 Amortizable intangible assets, net 242 3,129 192 — 3,563 As of December 31, 2020 Inventories, net $ — $ — $ 495 $ — $ 495 Property and equipment, net 64,231 6,221 741 7,929 79,122 Broadcast licenses 319,773 — — — 319,773 Goodwill 2,746 19,565 1,446 — 23,757 Amortizable intangible assets, net 246 3,434 337 — 4,017 |
Business and Basis of Present_3
Business and Basis of Presentation - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)Segments | Dec. 31, 2020USD ($) | |
Number of operating segments | Segments | 3 | |
Long-term Debt, Gross | $ 225,143 | $ 218,764 |
Payroll taxes, specifically employer | 3,300 | |
Payroll Protection Plans [Member] | ||
Long-term Debt, Gross | 11,200 | |
Revolving Credit Facility [Member] | ||
Debt instrument maximum borrowing capacity | $ 26,100 | 24,800 |
Debt instrument outstanding | $ 5,000 |
Recent Transactions - Debt Tran
Recent Transactions - Debt Transactions - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 18, 2021 | Feb. 04, 2021 | Feb. 05, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||
Long-term Debt, Gross | $ 225,143 | $ 218,764 | ||||
Proceeds from Sale of Productive Assets | 3,501 | $ 2 | ||||
Debt Instrument, Face Amount | 216,300 | |||||
Local Marketing Agreement [member] | ||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300 | |||||
Debt Instrument, Maturity Date, Description | one year | |||||
Small Business Association [member] | ||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||
Long-term Debt, Gross | $ 11,200 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||||
Debt Instrument, Maturity Date, Description | five years | |||||
Radio Stations [member] | ||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||
Proceeds from Sale of Productive Assets | $ 3,500 | $ 4,000 | $ 3,200 | |||
KDIAAM and KDYAAM [member] | ||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||
Payments to Acquire Productive Assets | $ 600 |
Recent Transactions - Acquisiti
Recent Transactions - Acquisitions - Additional Information (Detail) | Mar. 08, 2021USD ($) |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | $ 11,000 |
Business combination, recognized identifiable assets acquired and liabilities assumed, contingent liability | $ 100,000 |
Recent Transactions - Divestitu
Recent Transactions - Divestitures - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 18, 2021 | Feb. 05, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||
Proceeds from sale of intangible assets | $ 3,501 | $ 2 | ||
Radio Stations [member] | ||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||
Proceeds from sale of intangible assets | $ 3,500 | $ 4,000 | 3,200 | |
Pretax loss on sale of assets | $ 1,400 | 300 | ||
Radio Stations [member] | Maximum [Member] | ||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||
Pretax loss on sale of assets | $ 1,700 |
Recent Transactions - Pending T
Recent Transactions - Pending Transactions -Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Escrow Deposit Disbursements Related to Property Acquisition | $ 0.1 |
Business Combination, Consideration Transferred, Liabilities Incurred | $ 0.5 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)Segments | |
Disaggregation of Revenue [Line Items] | |
Prepaid commission expense | $ | $ 0.7 |
Number of operating segments | Segments | 3 |
Minimum [Member] | |
Disaggregation of Revenue [Line Items] | |
Sale of subscription revenue term | 2 years |
Maximum [Member] | |
Disaggregation of Revenue [Line Items] | |
Sale of subscription revenue term | 3 years |
Revenue Recognition - Significa
Revenue Recognition - Significant Changes in Our Contract Liabilities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Change in Contract with Customer, Liability [Abstract] | |
Short Term, Balance, beginning of period | $ 11,652 |
Short Term, Revenue recognized during the period that was included in the beginning balance of contract liabilities | (3,814) |
Short Term, Additional amounts recognized during the period | 7,087 |
Short Term, Revenue recognized during the period that was recorded during the period | (2,559) |
Short Term, Transfers | 234 |
Short Term, Balance, end of period | 12,600 |
Short Term, Amount refundable at beginning of period | 11,607 |
Short Term, Amount refundable at end of period | 12,588 |
Long-Term, Balance, beginning of period | 1,869 |
Long-Term, Additional amounts recognized during the period | 524 |
Long-Term, Transfers | (234) |
Long-Term, Balance, end of period | 2,159 |
Long-Term, Amount refundable at beginning of period | 1,869 |
Long-Term, Amount refundable at end of period | $ 2,159 |
Revenue Recognition - Revenue,
Revenue Recognition - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation | $ 14,759 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation | $ 12,600 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation | $ 1,365 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation | $ 472 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation | $ 184 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation | $ 55 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation | $ 83 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 1 year |
Revenue Recognition - Trade and
Revenue Recognition - Trade and Barter Transactions Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Recognition [Line Items] | ||
Total net revenue | $ 59,353 | $ 58,250 |
Broadcast [Member] | Advertising Barter Transactions [Member] | ||
Revenue Recognition [Line Items] | ||
Total net revenue | 391 | 1,166 |
Cost | 373 | 1,034 |
Publishing [Member] | ||
Revenue Recognition [Line Items] | ||
Total net revenue | $ 5,686 | 3,966 |
Publishing [Member] | Advertising Barter Transactions [Member] | ||
Revenue Recognition [Line Items] | ||
Total net revenue | $ 26 |
Revenue Recognition - Reconcili
Revenue Recognition - Reconciliation of Revenue from Segments to Consolidated (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | $ 59,353 | $ 58,250 |
Block Programming—National [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 11,461 | 12,034 |
Block Programming—Local [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 5,956 | 6,808 |
Spot Advertising—National [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 3,660 | 3,957 |
Spot Advertising—Local [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 8,895 | 11,357 |
Infomercials [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 237 | 308 |
Network [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 4,871 | 4,388 |
Digital Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 10,256 | 8,138 |
Digital Streaming [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,697 | 1,523 |
Digital Downloads and eBooks [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,878 | 1,499 |
Subscriptions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 3,217 | 2,594 |
Book Sales and e-commerce, net of estimated sales returns and allowances [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 3,328 | 1,827 |
Self-Publishing fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,624 | 1,402 |
Advertising—Print [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 68 | 103 |
Other Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 2,205 | 2,312 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 58,730 | 57,633 |
Rental Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 623 | 617 |
Broadcast [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 44,048 | 45,180 |
Broadcast [Member] | Block Programming—National [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 11,461 | 12,034 |
Broadcast [Member] | Block Programming—Local [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 5,956 | 6,808 |
Broadcast [Member] | Spot Advertising—National [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 3,660 | 3,957 |
Broadcast [Member] | Spot Advertising—Local [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 8,895 | 11,357 |
Broadcast [Member] | Infomercials [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 237 | 308 |
Broadcast [Member] | Network [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 4,871 | 4,388 |
Broadcast [Member] | Digital Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 5,781 | 3,326 |
Broadcast [Member] | Digital Streaming [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 853 | 608 |
Broadcast [Member] | Digital Downloads and eBooks [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 60 | |
Broadcast [Member] | Subscriptions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 286 | 282 |
Broadcast [Member] | Book Sales and e-commerce, net of estimated sales returns and allowances [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 89 | 76 |
Broadcast [Member] | Advertising—Print [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1 | |
Broadcast [Member] | Other Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,899 | 2,035 |
Broadcast [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 43,425 | 44,563 |
Broadcast [Member] | Rental Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 623 | 617 |
Digital [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 9,619 | 9,104 |
Digital [Member] | Digital Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 4,413 | 4,713 |
Digital [Member] | Digital Streaming [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 844 | 915 |
Digital [Member] | Digital Downloads and eBooks [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,479 | 1,245 |
Digital [Member] | Subscriptions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 2,773 | 2,135 |
Digital [Member] | Book Sales and e-commerce, net of estimated sales returns and allowances [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 31 | 28 |
Digital [Member] | Other Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 79 | 68 |
Digital [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 9,619 | 9,104 |
Publishing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 5,686 | 3,966 |
Publishing [Member] | Digital Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 62 | 99 |
Publishing [Member] | Digital Downloads and eBooks [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 339 | 254 |
Publishing [Member] | Subscriptions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 158 | 177 |
Publishing [Member] | Book Sales and e-commerce, net of estimated sales returns and allowances [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 3,208 | 1,723 |
Publishing [Member] | Self-Publishing fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,624 | 1,402 |
Publishing [Member] | Advertising—Print [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 68 | 102 |
Publishing [Member] | Other Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 227 | 209 |
Publishing [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | $ 5,686 | $ 3,966 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory on Hand by Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Reserve for obsolescence | $ (1,439) | $ (1,499) |
Inventory, net | 588 | 495 |
Book Inventories [Member] | ||
Inventory [Line Items] | ||
Inventories, gross | 2,027 | 1,994 |
Reserve for obsolescence | (1,439) | (1,499) |
Inventory, net | $ 588 | $ 495 |
Property and Equipment - Summar
Property and Equipment - Summary of Categories of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | $ 261,734 | $ 259,458 |
Less accumulated depreciation | (183,136) | (180,336) |
Property, Plant and Equipment, Net, Total | 78,598 | 79,122 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 30,254 | 30,254 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 28,993 | 28,922 |
Office Furnishings and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 37,289 | 36,875 |
Antennae, Towers and Transmitting Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 78,152 | 78,057 |
Studio, Production and Mobile Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 29,389 | 29,023 |
Computer Software and Website Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 34,085 | 33,928 |
Record and Tape Libraries [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 17 | 17 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 1,514 | 1,514 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 18,208 | 18,187 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | $ 3,833 | $ 2,681 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2.6 | $ 2.7 |
Operating and Finance Lease R_3
Operating and Finance Lease Right-of-Use Assets - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
Operating lease, existence of option to extend | true |
Operating lease, option to extend | Many of these leases contain options under which we can extend the term from five to twenty years |
Finance lease, option to extend | Many of these leases contain options under which we can extend the term from five to twenty years |
Minimum [Member] | |
Operating lease, remaining lease term | 1 year |
Operating lease, extension term | 5 years |
Finance lease, extension term | 5 years |
Maximum [Member] | |
Operating lease, remaining lease term | 20 years |
Operating lease, extension term | 20 years |
Finance lease, extension term | 20 years |
Operating and Finance Lease R_4
Operating and Finance Lease Right-of-Use Assets - Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating leases ROU assets | $ 46,508 | $ 48,203 |
Operating lease liabilities (current) | 8,615 | 8,963 |
Operating lease liabilities (non-current) | 46,058 | $ 47,740 |
Total operating lease liabilities | $ 54,673 | |
Weighted Average Remaining Lease Term, Operating leases | 8 years 2 months 12 days | |
Weighted Average Remaining Lease Term, Finance leases | 3 years | |
Weighted Average Discount Rate, Operating leases | 7.95% | |
Weighted Average Discount Rate, Finance leases | 5.39% | |
Related Party Lease [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases ROU assets | $ 6,642 | |
Operating lease liabilities (current) | 938 | |
Operating lease liabilities (non-current) | 5,860 | |
Total operating lease liabilities | 6,798 | |
Other Operating Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases ROU assets | 39,866 | |
Operating lease liabilities (current) | 7,677 | |
Operating lease liabilities (non-current) | 40,198 | |
Total operating lease liabilities | $ 47,875 |
Operating and Finance Lease R_5
Operating and Finance Lease Right-of-Use Assets - Components of Lease Expense (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Leases [Abstract] | |
Amortization of finance lease ROU Assets | $ 16 |
Interest on finance lease liabilities | 2 |
Finance lease expense | 18 |
Operating lease expense | 3,214 |
Variable lease expense | 190 |
Short-term lease expense | 157 |
Total lease expense | $ 3,579 |
Operating and Finance Lease R_6
Operating and Finance Lease Right-of-Use Assets - Schedule of Impact to Financial Statements of the Adoption of ASU 842 (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 3,569 |
Operating cash flows from finance leases | 1 |
Financing cash flows from finance leases | 16 |
Leased assets obtained in exchange for new operating lease liabilities | 553 |
Leased assets obtained in exchange for new finance lease liabilities | $ 2 |
Operating and Finance Lease R_7
Operating and Finance Lease Right-of-Use Assets - Summary of Future Lease Payments (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating Leases, 2021 | $ 12,508 | |
Operating Leases, 2022 | 12,364 | |
Operating Leases, 2023 | 10,227 | |
Operating Leases, 2024 | 8,044 | |
Operating Leases, 2025 | 6,971 | |
Operating Leases, Thereafter | 28,560 | |
Undiscounted Cash Flows | 78,674 | |
Less: imputed interest | (24,001) | |
Reconciliation to lease liabilities: | ||
Lease liabilities—current | 8,615 | $ 8,963 |
Lease liabilities—long-term | 46,058 | 47,740 |
Total operating lease liabilities | 54,673 | |
Finance Leases, 2021 | 65 | |
Finance Leases, 2022 | 57 | |
Finance Leases, 2023 | 31 | |
Finance Leases, 2024 | 12 | |
Finance Leases, 2025 | 4 | |
Finance Leases, Thereafter | 0 | |
Finance Leases, Undiscounted Cash Flows | 169 | |
Less: Finance Leases, imputed interest | (15) | |
Finance Leases, Reconciliation to lease liabilities: | ||
Finance Leases, Lease liabilities—current | 60 | 60 |
Finance Leases, Lease liabilities—long-term | 94 | $ 107 |
Total Finance Lease Liabilities | 154 | |
Contractual Obligations, 2021 | 12,573 | |
Contractual Obligations, 2022 | 12,421 | |
Contractual Obligations, 2023 | 10,258 | |
Contractual Obligations, 2024 | 8,056 | |
Contractual Obligations, 2025 | 6,975 | |
Contractual Obligations, Thereafter | 28,560 | |
Contractual Obligations, Undiscounted Cash Flows | 78,843 | |
Less: Contractual Obligations, imputed interest | (24,016) | |
Contractual Obligations, Reconciliation to lease liabilities: | ||
Contractual Obligations, Lease liabilities—current | 8,675 | |
Contractual Obligations, Lease liabilities—long-term | 46,152 | |
Total Contractual Obligations, Lease Liabilities | 54,827 | |
Related Party Lease [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Leases, 2021 | 1,466 | |
Operating Leases, 2022 | 1,620 | |
Operating Leases, 2023 | 1,018 | |
Operating Leases, 2024 | 1,014 | |
Operating Leases, 2025 | 1,043 | |
Operating Leases, Thereafter | 3,797 | |
Undiscounted Cash Flows | 9,958 | |
Less: imputed interest | (3,160) | |
Reconciliation to lease liabilities: | ||
Lease liabilities—current | 938 | |
Lease liabilities—long-term | 5,860 | |
Total operating lease liabilities | 6,798 | |
Other Operating Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Leases, 2021 | 11,042 | |
Operating Leases, 2022 | 10,744 | |
Operating Leases, 2023 | 9,209 | |
Operating Leases, 2024 | 7,030 | |
Operating Leases, 2025 | 5,928 | |
Operating Leases, Thereafter | 24,763 | |
Undiscounted Cash Flows | 68,716 | |
Less: imputed interest | (20,841) | |
Reconciliation to lease liabilities: | ||
Lease liabilities—current | 7,677 | |
Lease liabilities—long-term | 40,198 | |
Total operating lease liabilities | $ 47,875 |
Broadcast Licenses - Additional
Broadcast Licenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment charge | $ 17,254 | |
Broadcast Licenses [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
License renewable term | 8 years | |
Impairment charge | $ 0 |
Broadcast Licenses - Schedule o
Broadcast Licenses - Schedule of Changes in Broadcasting Licenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Balance, beginning of period before cumulative loss on impairment | $ 440,052 | $ 441,143 |
Accumulated loss on impairment, Beginning Balance | (120,279) | (103,285) |
Balance, beginning of period after cumulative loss on impairment | 319,773 | 337,858 |
Disposition of radio stations and FM translators | 0 | (1,091) |
Impairments based on the estimated fair value of broadcast licenses | 0 | (16,994) |
Balance, end of period before cumulative loss on impairment | 440,052 | 440,052 |
Accumulated loss on impairment, Ending Balance | (120,279) | (120,279) |
Balance, end of period after cumulative loss on impairment | $ 319,773 | $ 319,773 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Goodwill [Line Items] | |||
Balance, beginning of period before cumulative loss on impairment | $ 28,520 | $ 28,454 | $ 28,454 |
Accumulated loss on impairment | (4,763) | (4,456) | (4,456) |
Balance, beginning of period after cumulative loss on impairment | 23,757 | 23,998 | 23,998 |
Impairments based on the estimated fair value goodwill | 0 | $ (307) | (307) |
Balance, end of period before cumulative loss on impairment | 28,520 | 28,520 | |
Accumulated loss on impairment | (4,763) | (4,763) | |
Ending period balance | 23,757 | 23,757 | |
Radio Stations [Member] | |||
Goodwill [Line Items] | |||
Acquisitions | $ 0 | $ 66 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Impairment of goodwill | $ 0 | $ 307 | $ 307 |
Amortizable Intangible Assets -
Amortizable Intangible Assets - Summary of Significant Classes of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 63,041 | $ 62,914 |
Accumulated Amortization | (59,478) | (58,897) |
Net | 3,563 | 4,017 |
Customer Lists and Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 24,139 | 24,012 |
Accumulated Amortization | (22,690) | (22,533) |
Net | 1,449 | 1,479 |
Domain and Brand Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 20,350 | 20,350 |
Accumulated Amortization | (19,367) | (19,127) |
Net | 983 | 1,223 |
Favorable and Assigned Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,188 | 2,188 |
Accumulated Amortization | (1,947) | (1,943) |
Net | 241 | 245 |
Subscriber Base and Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 9,886 | 9,886 |
Accumulated Amortization | (9,087) | (8,974) |
Net | 799 | 912 |
Author Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,771 | 2,771 |
Accumulated Amortization | (2,767) | (2,765) |
Net | 4 | 6 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,041 | 2,041 |
Accumulated Amortization | (1,991) | (1,954) |
Net | 50 | 87 |
Other Amortizable Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,666 | 1,666 |
Accumulated Amortization | (1,629) | (1,601) |
Net | $ 37 | $ 65 |
Amortizable Intangible Assets_2
Amortizable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Amortization of intangible assets | $ 0.6 | $ 1 |
Amortizable Intangible Assets_3
Amortizable Intangible Assets - Amortizable Intangible Assets, Estimate Amortization Expense (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 1,297 | |
2022 | 1,252 | |
2023 | 717 | |
2024 | 92 | |
2025 | 8 | |
Thereafter | 197 | |
Net | $ 3,563 | $ 4,017 |
Long-Term Debt - 6.75% Senior S
Long-Term Debt - 6.75% Senior Secured Notes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | May 19, 2017 | |
Debt Instrument [Line Items] | ||||
Interest payable, current | $ 4,875 | $ 1,225 | ||
Debt related commitment fees and debt issuance costs | 6,300 | |||
Long-term debt, gross | $ 225,143 | $ 218,764 | ||
Small Business Association [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 1.00% | |||
Long-term debt, gross | $ 11,200 | |||
Debt instrument term | 5 years | |||
Debt Instrument Redemption Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||
6.75% Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 6.75% | 6.75% | ||
Debt instrument, debt default, description of violation or event of default | The Indenture provides for the following events of default (each, an “Event of Default”): (i) default in payment of principal or premium on the Notes at maturity, upon repurchase, acceleration, optional redemption or otherwise; (ii) default for 30 days in payment of interest on the Notes; (iii) the failure by us or certain restricted subsidiaries to comply with other agreements in the Indenture or the Notes, in certain cases subject to notice and lapse of time; (iv) the failure of any guarantee by certain significant Subsidiary Guarantors to be in full force and effect and enforceable in accordance with its terms, subject to notice and lapse of time; (v) certain accelerations (including failure to pay within any grace period) of other indebtedness of ours or any restricted subsidiary if the amount accelerated (or so unpaid) is at least $15 million; (vi) certain judgments for the payment of money in excess of $15 million; (vii) certain events of bankruptcy or insolvency with respect to us or any significant subsidiary; and (viii) certain defaults with respect to any collateral having a fair market value in excess of $15 million. | |||
Debt instrument debt default percentage | 25.00% | |||
Interest expense, debt | $ 14,600 | |||
Interest payable, current | 4,900 | |||
Debt related commitment fees and debt issuance costs | $ 200 | $ 200 |
Long - term Debt - Summary of R
Long - term Debt - Summary of Repurchase of Senior Secured Note (Detail) - Senior Secured Note [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Principal Repurchased | $ 38,659 |
Cash Paid | 35,586 |
Bond Issue Costs | 706 |
Net Gain | $ 2,367 |
Senior Secured Note Period One [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Jan. 30, 2020 |
Principal Repurchased | $ 2,250 |
Cash Paid | $ 2,194 |
Percent face value | 97.50% |
Bond Issue Costs | $ 34 |
Net Gain | $ 22 |
Senior Secured Note Period Two [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Jan. 27, 2020 |
Principal Repurchased | $ 1,245 |
Cash Paid | $ 1,198 |
Percent face value | 96.25% |
Bond Issue Costs | $ 20 |
Net Gain | $ 27 |
Senior Secured Note Period Three [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Dec. 27, 2019 |
Principal Repurchased | $ 3,090 |
Cash Paid | $ 2,874 |
Percent face value | 93.00% |
Bond Issue Costs | $ 48 |
Net Gain | $ 167 |
Senior Secured Note Period Four [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Nov. 27, 2019 |
Principal Repurchased | $ 5,183 |
Cash Paid | $ 4,548 |
Percent face value | 87.75% |
Bond Issue Costs | $ 82 |
Net Gain | $ 553 |
Senior Secured Note Period Five [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Nov. 15, 2019 |
Principal Repurchased | $ 3,791 |
Cash Paid | $ 3,206 |
Percent face value | 84.58% |
Bond Issue Costs | $ 61 |
Net Gain | $ 524 |
Senior Secured Note Period Six [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Mar. 28, 2019 |
Principal Repurchased | $ 2,000 |
Cash Paid | $ 1,830 |
Percent face value | 91.50% |
Bond Issue Costs | $ 37 |
Net Gain | $ 134 |
Senior Secured Note Period Seven [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Mar. 28, 2019 |
Principal Repurchased | $ 2,300 |
Cash Paid | $ 2,125 |
Percent face value | 92.38% |
Bond Issue Costs | $ 42 |
Net Gain | $ 133 |
Senior Secured Note Period Eight [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Feb. 20, 2019 |
Principal Repurchased | $ 125 |
Cash Paid | $ 114 |
Percent face value | 91.25% |
Bond Issue Costs | $ 2 |
Net Gain | $ 9 |
Senior Secured Note Period Nine [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Feb. 19, 2019 |
Principal Repurchased | $ 350 |
Cash Paid | $ 319 |
Percent face value | 91.25% |
Bond Issue Costs | $ 7 |
Net Gain | $ 24 |
Senior Secured Note Period Ten [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Feb. 12, 2019 |
Principal Repurchased | $ 1,325 |
Cash Paid | $ 1,209 |
Percent face value | 91.25% |
Bond Issue Costs | $ 25 |
Net Gain | $ 91 |
Senior Secured Note Period Eleven [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Jan. 10, 2019 |
Principal Repurchased | $ 570 |
Cash Paid | $ 526 |
Percent face value | 92.25% |
Bond Issue Costs | $ 9 |
Net Gain | $ 35 |
Senior Secured Note Period Twelve [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Dec. 21, 2018 |
Principal Repurchased | $ 2,000 |
Cash Paid | $ 1,835 |
Percent face value | 91.75% |
Bond Issue Costs | $ 38 |
Net Gain | $ 127 |
Senior Secured Note Period Thirteen [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Dec. 21, 2018 |
Principal Repurchased | $ 1,850 |
Cash Paid | $ 1,702 |
Percent face value | 92.00% |
Bond Issue Costs | $ 35 |
Net Gain | $ 113 |
Senior Secured Note Period Fourteen [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Dec. 21, 2018 |
Principal Repurchased | $ 1,080 |
Cash Paid | $ 999 |
Percent face value | 92.50% |
Bond Issue Costs | $ 21 |
Net Gain | $ 60 |
Senior Secured Note Period Fifteen [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Nov. 17, 2018 |
Principal Repurchased | $ 1,500 |
Cash Paid | $ 1,357 |
Percent face value | 90.50% |
Bond Issue Costs | $ 29 |
Net Gain | $ 114 |
Senior Secured Note Period Sixteen [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | May 4, 2018 |
Principal Repurchased | $ 4,000 |
Cash Paid | $ 3,770 |
Percent face value | 94.25% |
Bond Issue Costs | $ 86 |
Net Gain | $ 144 |
Senior Secured Note Period Seventeen [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Apr. 10, 2018 |
Principal Repurchased | $ 4,000 |
Cash Paid | $ 3,850 |
Percent face value | 96.25% |
Bond Issue Costs | $ 87 |
Net Gain | $ 63 |
Senior Secured Note Period Eighteen [Member] | |
Debt Instrument [Line Items] | |
Repurchase date | Apr. 9, 2018 |
Principal Repurchased | $ 2,000 |
Cash Paid | $ 1,930 |
Percent face value | 96.50% |
Bond Issue Costs | $ 43 |
Net Gain | $ 27 |
Long-Term Debt - Asset-Based Re
Long-Term Debt - Asset-Based Revolving Credit Facility - Additional Information (Detail) - USD ($) | Oct. 20, 2020 | May 19, 2017 | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||||
Debt instrument, debt default, description of violation or event of default | $ 216,300,000 | |||
Amortization of financing costs | 213,000 | $ 227,000 | ||
Debt related commitment fees and debt issuance costs | $ 6,300,000 | |||
Line of credit facility covenant compliance | we entered into a fourth amendment to our ABL Facility that provides a one-time waiver with respect to the current covenant testing period allowing the covenant trigger event date be the first day after the availability on the ABL Facility had equaled or exceeded (1) 15% of the maximum revolver amount and (2) $4.5 million and a waiver permitting | |||
Asset-Based Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, debt default, description of violation or event of default | $ 30,000,000 | |||
Debt instrument, debt default, description of violation or event of default | The Credit Agreement provides for the following events of default: (i) default for non-payment of any principal or letter of credit reimbursement when due or any interest, fees or other amounts within five days of the due date; (ii) the failure by any borrower or any subsidiary to comply with any covenant or agreement contained in the Credit Agreement or any other loan document, in certain cases subject to applicable notice and lapse of time; (iii) any representation or warranty made pursuant to the Credit Agreement or any other loan document is incorrect in any material respect when made; (iv) certain defaults of other indebtedness of any borrower or any subsidiary of indebtedness of at least $10 million; (v) certain events of bankruptcy or insolvency with respect to any borrower or any subsidiary; (vi) certain judgments for the payment of money of $10 million or more; (vii) a change of control; and (viii) certain defaults relating to the loss of FCC licenses, cessation of broadcasting and termination of material station contracts. | |||
Aggregate indebtedness | $ 10,000,000 | |||
Amortization of financing costs | 900,000 | |||
Asset-Based Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, debt default, description of violation or event of default | $ 0 | |||
Debt instrument, interest rate, increase (decrease) | 2.00% | |||
Maturity date | Mar. 1, 2024 | |||
Line of credit facility, covenant terms | The Credit Agreement includes a springing fixed charge coverage ratio of 1.0 to 1.0, which is tested during the period commencing on the last day of the fiscal month most recently ended prior to the date on which Availability (as defined in the Credit Agreement) is less than the greater of 15% of the Maximum Revolver Amount (as defined in the Credit Agreement) and $4.5 million and continuing for a period of 60 consecutive days after the first day on which Availability exceeds such threshold amount. | |||
ABL Borrowings descriptions | Availability under the ABL Facility is subject to a borrowing base consisting of (a) 90% of the eligible accounts receivable plus (b) a calculated amount based on the value of certain real property. | |||
Debt instrument current borrowing capacity | $ 26,100,000 | |||
Asset-Based Revolving Credit Facility [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, debt default, description of violation or event of default | $ 5,000,000 | |||
Asset-Based Revolving Credit Facility [Member] | Swingline Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, debt default, description of violation or event of default | $ 7,500,000 | |||
Abl Facility [Member] | Asset-Based Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt related commitment fees and debt issuance costs | $ 29,000,000 | $ 41,000,000 | ||
Minimum [Member] | Asset-Based Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | 0.25% | ||
Minimum [Member] | Asset-Based Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of advance rate on eligible accounts receivable | 85.00% | |||
Minimum [Member] | Asset-Based Revolving Credit Facility [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Minimum [Member] | Asset-Based Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.50% | |||
Maximum [Member] | Asset-Based Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | |||
Maximum [Member] | Asset-Based Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | |||
Percentage of advance rate on eligible accounts receivable | 90.00% | |||
Maximum [Member] | Asset-Based Revolving Credit Facility [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Maximum [Member] | Asset-Based Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.00% |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt less unamortized debt issuance costs | $ 225,143 | $ 218,764 |
Less current portion | 0 | 5,000 |
Long-term Debt | 225,143 | 213,764 |
Asset-Based Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Less current portion | 5,000 | |
6.75% Senior Secured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt and capital lease obligations current and noncurrent | 216,341 | 216,341 |
Less unamortized debt issuance costs based on imputed interest rate of 7.08% | (2,393) | (2,577) |
Long-term Debt | 213,948 | $ 213,764 |
SBA Paycheck Protection Plan loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 11,195 |
Long-Term Debt - Long-Term De_2
Long-Term Debt - Long-Term Debt (Parenthetical) (Detail) | Mar. 31, 2021 |
6.75% Senior Secured Notes [Member] | Debt Issuance Costs [Member] | |
Debt Instrument [Line Items] | |
Imputed interest rate percentage | 7.08% |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-term Debt Obligations - Additional Information (Detail) - USD ($) | May 19, 2017 | Mar. 31, 2021 |
Shares Issued And Outstanding [Line Items] | ||
Debt instrument, face amount | $ 216,300,000 | |
Asset-Based Revolving Credit Facility [Member] | ||
Shares Issued And Outstanding [Line Items] | ||
Debt instrument, face amount | $ 30,000,000 | |
Asset-Based Revolving Credit Facility [Member] | Minimum [Member] | ||
Shares Issued And Outstanding [Line Items] | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | 0.25% |
Asset-Based Revolving Credit Facility [Member] | Maximum [Member] | ||
Shares Issued And Outstanding [Line Items] | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | |
6.75% Senior Secured Notes [Member] | ||
Shares Issued And Outstanding [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.75% | 6.75% |
Long-Term Debt - Principle Repa
Long-Term Debt - Principle Repayment Requirements Under Long Term Agreements Outstanding (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Maturities of Long-term Debt [Abstract] | |
2022 | $ 0 |
2023 | 0 |
2024 | 216,341 |
2025 | 0 |
2026 | 11,195 |
Thereafter | 0 |
Total | $ 227,536 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Mar. 31, 2021USD ($) |
Fair Value Disclosures [Abstract] | |
Carrying value of notes | $ 216,300,000 |
Debt instrument, estimated fair value | $ 216,300,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value of Financial Assets and Liabilities (Detail) - Other Indefinite Lived Intangible Assets [Member] $ in Thousands | Mar. 31, 2021USD ($) |
Liabilities: | |
Estimated fair value of contingent earn-out consideration included in accrued expenses | $ 11 |
Long-term debt less unamortized debt issuance costs | 225,143 |
Fair Value, Inputs, Level 2 [Member] | |
Liabilities: | |
Long-term debt less unamortized debt issuance costs | 213,948 |
Fair Value, Inputs, Level 3 [Member] | |
Liabilities: | |
Estimated fair value of contingent earn-out consideration included in accrued expenses | $ 11 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | Mar. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 48,100 | $ 0 | |
Cumulative adjusted pre-tax book loss | (78,023) | $ (77,700) | |
Deferred tax assets operating loss carry forwards domestic | 28,400 | ||
Deferred tax assets, operating loss carryforwards, state and local | 15,700 | ||
Deferred tax assets other financial statement accrual assets | 4,000 | ||
Revision of Prior Period, Adjustment [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred tax assets, valuation allowance provided | $ 35,100 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Revision of Prior Period, Adjustment [Member] | |||
Income Tax Contingency [Line Items] | |||
Cumulative adjusted pre-tax book loss | 35,100 | ||
Domestic Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance | 28,400 | ||
Net operating loss carryforwards for federal income tax purpose | $ 135,300 | ||
Beginning year of expiry for net operating loss carry forwards | 2021 | ||
Ending year of expiry for net operating loss carryforwards | 2038 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 19,700 | ||
Net operating loss carryforwards for federal income tax purpose | $ 610,800 | ||
Beginning year of expiry for net operating loss carry forwards | 2021 | ||
Ending year of expiry for net operating loss carryforwards | 2040 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee service share-based compensation, nonvested awards, compensation not yet recognized, stock options | $ 18,000 | |
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 3 months 18 days | |
Expected term of award | 7 years 8 months 12 days | 7 years 7 months 6 days |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term of award | 10 years | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term of award | 6 years | |
Restricted Stock [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Restricted Stock [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 8,000,000 | |
Share price | $ 2.94 | |
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ 100 | $ 200 |
Employee Stock Option [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Employee Stock Option [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years |
Stock Incentive Plan - Schedule
Stock Incentive Plan - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense, pre-tax | $ 78 | $ 103 |
Tax benefit (expense) for stock-based compensation expense | 20 | (27) |
Total stock-based compensation expense, net of tax | 58 | 76 |
Unallocated Corporate [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock option compensation expense | 28 | 50 |
Broadcast [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock option compensation expense | 28 | 37 |
Digital Media [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock option compensation expense | $ 22 | 15 |
Publishing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock option compensation expense | $ 1 |
Stock Incentive Plan - Schedu_2
Stock Incentive Plan - Schedule of Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options and Restricted Stock Awards using Black-Scholes Option Valuation Model (Detail) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected volatility | 74.83% | 53.96% |
Expected dividends | 0.00% | 7.30% |
Expected term (in years) | 7 years 8 months 12 days | 7 years 7 months 6 days |
Risk-free interest rate | 0.96% | 1.14% |
Stock Incentive Plan - Schedu_3
Stock Incentive Plan - Schedule of Stock Option Activity (Detail) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Shares | ||
Beginning Balance | 2,291,020 | |
Granted | 210,000 | |
Exercised | (185,782) | |
Forfeited or expired | (151,946) | |
Ending Balance | 2,163,292 | 2,291,020 |
Exercisable at end of period | 1,086,417 | |
Expected to Vest | 1,022,493 | |
Weighted Average Exercise Price | ||
Beginning Balance | $ 3.23 | |
Granted | 2.01 | |
Exercised | 2.11 | |
Forfeited or expired | 6.77 | |
Ending Balance | 2.96 | $ 3.23 |
Exercisable at end of period | 3.92 | |
Expected to Vest | 2.98 | |
Weighted Average Grant Date Fair value | ||
Beginning Balance | 1.52 | |
Granted | 1.44 | |
Exercised | 0.97 | |
Forfeited or expired | 4.82 | |
Ending Balance | 1.33 | $ 1.52 |
Exercisable at end of period | 1.76 | |
Expected to Vest | $ 1.34 | |
Weighted Average Remaining Contractual Term | ||
Contractual term | 4 years 9 months 18 days | 4 years 3 months 18 days |
Exercisable at end of period | 2 years 9 months 18 days | |
Expected to Vest | 4 years 8 months 12 days | |
Aggregate Intrinsic Value | ||
Exercised | $ 188 | |
Ending Balance | 1,360 | |
Exercisable at end of period | 248 | |
Expected to Vest | $ 1,056 |
Stock Incentive Plan - Schedu_4
Stock Incentive Plan - Schedule of Information Regarding Restricted Stock Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding Shares, Beginning Balance | 107,990 | |
Outstanding Shares, Ending Balance | 107,990 | 107,990 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 1,850 | |
Weighted Average Grant Date Fair Value, Ending Balance | $ 1,850 | $ 1,850 |
Weighted Average Contractual Life Remaining | 4 months 24 days | 1 year 8 months 1 day |
Aggregate Intrinsic Value, Beginning Balance | $ 112 | |
Aggregate Intrinsic Value, Ending Balance | $ 317 | $ 112 |
Equity Transactions - Additiona
Equity Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense related to additional paid-in capital | $ 78 | $ 103 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021Segments | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Data - Schedule of Segm
Segment Data - Schedule of Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation | $ 2,589 | $ 2,713 | ||
Amortization | 581 | 987 | ||
Change in the estimated fair value of contingent earn-out consideration | (5) | |||
Impairment of indefinite-lived long-term assets other than goodwill | 17,254 | |||
Impairment of goodwill | 0 | 307 | $ 307 | |
Net (gain) loss on the disposition of assets | (318) | (79) | ||
Net operating income (loss) | 4,356 | (18,010) | ||
Inventories, net | 495 | |||
Property and equipment, net | 78,598 | 79,122 | ||
Broadcast licenses | 319,773 | 319,773 | $ 337,858 | |
Goodwill | 23,757 | 23,757 | $ 23,998 | |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net revenue | 59,353 | 58,250 | ||
Operating expenses | 51,509 | 54,925 | ||
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and net (gain) loss on the disposition of assets | 7,844 | 3,325 | ||
Depreciation | 2,589 | 2,713 | ||
Amortization | 581 | 987 | ||
Change in the estimated fair value of contingent earn-out consideration | (5) | |||
Impairment of indefinite-lived long-term assets other than goodwill | 17,254 | |||
Impairment of goodwill | 307 | |||
Net (gain) loss on the disposition of assets | 318 | 79 | ||
Net operating income (loss) | 4,356 | (18,010) | ||
Inventories, net | 588 | 495 | 495 | |
Property and equipment, net | 78,598 | 79,122 | ||
Broadcast licenses | 319,773 | 319,773 | ||
Goodwill | 23,757 | 23,757 | ||
Amortizable intangible assets, net | 3,563 | 4,017 | ||
Operating Segments [Member] | Broadcast [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net revenue | 44,048 | 45,180 | ||
Operating expenses | 33,343 | 37,327 | ||
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and net (gain) loss on the disposition of assets | 10,705 | 7,853 | ||
Depreciation | 1,525 | 1,645 | ||
Amortization | 4 | 9 | ||
Impairment of indefinite-lived long-term assets other than goodwill | 16,994 | |||
Impairment of goodwill | 184 | |||
Net (gain) loss on the disposition of assets | 318 | 79 | ||
Net operating income (loss) | 8,858 | (11,058) | ||
Property and equipment, net | 63,671 | 64,231 | ||
Broadcast licenses | 319,773 | 319,773 | ||
Goodwill | 2,746 | 2,746 | ||
Amortizable intangible assets, net | 242 | 246 | ||
Operating Segments [Member] | Digital Media [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net revenue | 9,619 | 9,104 | ||
Operating expenses | 8,673 | 8,326 | ||
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and net (gain) loss on the disposition of assets | 946 | 778 | ||
Depreciation | 781 | 771 | ||
Amortization | 432 | 768 | ||
Change in the estimated fair value of contingent earn-out consideration | (5) | |||
Impairment of goodwill | 10 | |||
Net operating income (loss) | (267) | (766) | ||
Property and equipment, net | 5,977 | 6,221 | ||
Goodwill | 19,565 | 19,565 | ||
Amortizable intangible assets, net | 3,129 | 3,434 | ||
Operating Segments [Member] | Publishing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net revenue | 5,686 | 3,966 | ||
Operating expenses | 5,205 | 5,062 | ||
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and net (gain) loss on the disposition of assets | 481 | (1,096) | ||
Depreciation | 47 | 69 | ||
Amortization | 145 | 210 | ||
Impairment of indefinite-lived long-term assets other than goodwill | 260 | |||
Impairment of goodwill | 105 | |||
Net operating income (loss) | 289 | (1,740) | ||
Inventories, net | 588 | 495 | 495 | |
Property and equipment, net | 732 | 741 | ||
Goodwill | 1,446 | 1,446 | ||
Amortizable intangible assets, net | 192 | 337 | ||
Operating Segments [Member] | Unallocated Corporate [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating expenses | 4,288 | 4,210 | ||
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and net (gain) loss on the disposition of assets | (4,288) | (4,210) | ||
Depreciation | 236 | 228 | ||
Impairment of goodwill | 8 | |||
Net operating income (loss) | (4,524) | $ (4,446) | ||
Property and equipment, net | $ 8,218 | $ 7,929 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | Apr. 30, 2021USD ($) | Apr. 28, 2021USD ($) | Apr. 20, 2021USD ($) | Apr. 10, 2021USD ($)a | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Agreement to sell business | $ 3,501 | $ 2 | ||||
Subsequent Event [Member] | Common Class A [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Proceeds from shelf registration supplement maximum amount | $ 15,000 | |||||
Subsequent Event [Member] | Centerline new media domain and digital assets [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payments to acquire business | $ 1,300 | |||||
Subsequent Event [Member] | Singing News Magazine and Singing News Radio [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Agreement to sell business | $ 100 | |||||
Subsequent Event [Member] | KSKY AM [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Agreement to sell business | $ 12,100 | |||||
Area of land | a | 34 |