Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 07, 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2020 | |
Entity File Number | 001-35886 | |
Entity Registrant Name | HEMISPHERE MEDIA GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0885255 | |
Entity Address, Address Line One | 4000 Ponce de Leon | |
Entity Address, Address Line Two | Boulevard | |
Entity Address, Address Line Three | Suite 650 | |
Entity Address, City or Town | Coral Gables | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33146 | |
City Area Code | 305 | |
Local Phone Number | 421-6364 | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001567345 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Trading Symbol | HMTV | |
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Common Class A | ||
Entity Common Stock, Shares Outstanding | 20,241,173 | |
Common Class B | ||
Entity Common Stock, Shares Outstanding | 19,720,381 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash | $ 104,983 | $ 92,151 |
Accounts receivable, net of allowance for doubtful accounts of $1,454 and $507, respectively | 31,677 | 29,269 |
Due from related parties | 1,091 | 1,626 |
Programming rights | 8,710 | 11,691 |
Prepaids and other current assets | 9,924 | 11,003 |
Total current assets | 156,385 | 145,740 |
Programming rights, net of current portion | 14,859 | 14,804 |
Property and equipment, net | 32,326 | 34,319 |
Operating lease right-of-use assets | 1,567 | 1,833 |
Broadcast license | 41,356 | 41,356 |
Goodwill | 167,322 | 167,322 |
Other intangibles, net | 29,058 | 32,587 |
Deferred income taxes | 1,725 | 1,208 |
Equity method investments | 31,917 | 49,639 |
Other assets | 4,487 | 3,979 |
Total Assets | 481,002 | 492,787 |
Current Liabilities | ||
Accounts payable | 5,046 | 1,925 |
Due to related parties | 1,101 | 669 |
Accrued agency commissions | 3,027 | 4,662 |
Accrued compensation and benefits | 4,569 | 5,021 |
Accrued marketing | 6,379 | 5,327 |
Other accrued expenses | 5,738 | 6,596 |
Programming rights payable | 8,481 | 6,369 |
Investee losses in excess of investment | 1,484 | |
Current portion of long-term debt | 2,134 | 2,134 |
Total current liabilities | 36,475 | 34,187 |
Programming rights payable, net of current portion | 1,234 | 820 |
Long-term debt, net of current portion | 201,631 | 202,406 |
Deferred income taxes | 19,331 | 19,331 |
Other long-term liabilities | 5,021 | 2,917 |
Defined benefit pension obligation | 2,469 | 2,457 |
Total Liabilities | 266,161 | 262,118 |
Stockholders' Equity | ||
Preferred stock, $0.0001 par value; 50,000,000 shares authorized; 0 shares issued at June 30, 2020 and December 31, 2019 | ||
Additional paid-in capital | 277,154 | 274,518 |
Retained (deficit) earnings | (35) | 16,075 |
Accumulated other comprehensive loss | (2,598) | (792) |
Total Hemisphere Media Group Stockholders' Equity | 213,495 | 229,285 |
Equity attributable to non-controlling interest | 1,346 | 1,384 |
Total Stockholders' Equity | 214,841 | 230,669 |
Total Liabilities and Stockholders' Equity | 481,002 | 492,787 |
Common Class A | ||
Stockholders' Equity | ||
Common stock | 3 | 3 |
Class A treasury stock, at cost 5,670,853 and 5,609,966 at June 30, 2020 and December 31, 2019, respectively | (61,031) | (60,521) |
Common Class B | ||
Stockholders' Equity | ||
Common stock | $ 2 | $ 2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance for doubtful accounts | $ 1,454 | $ 507 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 25,439,375 | 25,202,314 |
Treasury stock, shares | 5,670,853 | 5,609,966 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 33,000,000 | 33,000,000 |
Common stock, shares issued | 19,720,381 | 19,720,381 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Consolidated Statements of Operations | ||||
Net revenues | $ 34,735 | $ 39,147 | $ 67,144 | $ 74,257 |
Operating expenses: | ||||
Cost of revenues | 12,560 | 11,317 | 23,527 | 21,531 |
Selling, general and administrative | 10,208 | 10,813 | 21,441 | 21,714 |
Depreciation and amortization | 2,794 | 2,556 | 5,925 | 6,623 |
Other expenses | 27 | 422 | 3,048 | 653 |
Loss (gain) from FCC spectrum repack and other | 182 | (45) | 173 | (1,507) |
Total operating expenses | 25,771 | 25,063 | 54,114 | 49,014 |
Operating income | 8,964 | 14,084 | 13,030 | 25,243 |
Other expense: | ||||
Interest expense, net | (2,496) | (3,005) | (5,282) | (5,965) |
Loss on equity method investments | (10,189) | (9,784) | (17,208) | (17,160) |
Impairment of equity method investment | (5,479) | |||
Total other expense | (12,685) | (12,789) | (27,969) | (23,125) |
(Loss) income before income taxes | (3,721) | 1,295 | (14,939) | 2,118 |
Income tax expense | (2,884) | (3,643) | (1,209) | (6,199) |
Net loss | (6,605) | (2,348) | (16,148) | (4,081) |
Net (income) loss attributable to non-controlling interest | (77) | (10) | 38 | 37 |
Net loss attributable to Hemisphere Media Group, Inc. | $ (6,682) | $ (2,358) | $ (16,110) | $ (4,044) |
Loss per share attributable to Hemisphere Media Group, Inc.: | ||||
Basic (in dollars per share) | $ (0.17) | $ (0.06) | $ (0.41) | $ (0.10) |
Diluted (in dollars per share) | $ (0.17) | $ (0.06) | $ (0.41) | $ (0.10) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 39,444 | 39,164 | 39,378 | 39,098 |
Diluted (in shares) | 39,444 | 39,164 | 39,378 | 39,098 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Consolidated Statement of Comprehensive Loss | ||||
Net loss | $ (6,605) | $ (2,348) | $ (16,148) | $ (4,081) |
Other comprehensive income (loss): | ||||
Change in fair value of interest rate swap, net of income taxes | 81 | (1,177) | (1,806) | (1,855) |
Comprehensive loss | (6,524) | (3,525) | (17,954) | (5,936) |
Comprehensive (income) loss attributable to non-controlling interest | (77) | (10) | 38 | 37 |
Comprehensive loss attributable to Hemisphere Media Group, Inc. | $ (6,601) | $ (3,535) | $ (17,916) | $ (5,899) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common StockCommon Class A | Common StockCommon Class B | Additional Paid In Capital | Treasury StockCommon Class A | Retained Earnings | Accumulated Comprehensive Income(Loss) | Non-controlling Interest | Total |
Balance at the beginning of the period at Dec. 31, 2018 | $ 2 | $ 2 | $ 270,345 | $ (59,088) | $ 19,495 | $ 1,155 | $ 1,488 | $ 233,399 |
Balance at the beginning of the period (in shares) at Dec. 31, 2018 | 24,850 | 19,720 | ||||||
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||||||
Net (loss) income | (4,044) | (37) | (4,081) | |||||
Issuance of treasury shares for acquisition of Snap Media | (588) | 588 | ||||||
Stock-based compensation | 1,360 | 1,360 | ||||||
Vesting of restricted stock | $ 1 | (532) | (531) | |||||
Vesting of restricted stock (in shares) | 184 | |||||||
Repurchases of Class A common stock | (648) | (648) | ||||||
Issuance of treasury shares for option exercise | 107 | 107 | ||||||
Adoption of accounting standards | ASU 2018-02 | (53) | 53 | ||||||
Other comprehensive income (loss), net of tax | (1,855) | (1,855) | ||||||
Balance at the end of the period at Jun. 30, 2019 | $ 3 | $ 2 | 271,117 | (59,573) | 15,398 | (647) | 1,451 | 227,751 |
Balance at the end of the period (in shares) at Jun. 30, 2019 | 25,034 | 19,720 | ||||||
Balance at the beginning of the period at Mar. 31, 2019 | $ 2 | $ 2 | 270,674 | (59,013) | 17,756 | 530 | 1,441 | 231,392 |
Balance at the beginning of the period (in shares) at Mar. 31, 2019 | 24,850 | 19,720 | ||||||
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||||||
Net (loss) income | (2,358) | 10 | (2,348) | |||||
Stock-based compensation | 443 | 443 | ||||||
Vesting of restricted stock | $ 1 | (532) | (531) | |||||
Vesting of restricted stock (in shares) | 184 | |||||||
Repurchases of Class A common stock | (135) | (135) | ||||||
Issuance of treasury shares for option exercise | 107 | 107 | ||||||
Other comprehensive income (loss), net of tax | (1,177) | (1,177) | ||||||
Balance at the end of the period at Jun. 30, 2019 | $ 3 | $ 2 | 271,117 | (59,573) | 15,398 | (647) | 1,451 | 227,751 |
Balance at the end of the period (in shares) at Jun. 30, 2019 | 25,034 | 19,720 | ||||||
Balance at the beginning of the period at Dec. 31, 2019 | $ 3 | $ 2 | 274,518 | (60,521) | 16,075 | (792) | 1,384 | 230,669 |
Balance at the beginning of the period (in shares) at Dec. 31, 2019 | 25,202 | 19,720 | ||||||
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||||||
Net (loss) income | (16,110) | (38) | (16,148) | |||||
Stock-based compensation | 2,636 | 2,636 | ||||||
Vesting of restricted stock | (510) | (510) | ||||||
Vesting of restricted stock (in shares) | 237 | |||||||
Other comprehensive income (loss), net of tax | (1,806) | (1,806) | ||||||
Balance at the end of the period at Jun. 30, 2020 | $ 3 | $ 2 | 277,154 | (61,031) | (35) | (2,598) | 1,346 | 214,841 |
Balance at the end of the period (in shares) at Jun. 30, 2020 | 25,439 | 19,720 | ||||||
Balance at the beginning of the period at Mar. 31, 2020 | $ 3 | $ 2 | 275,798 | (60,521) | 6,647 | (2,679) | 1,269 | 220,519 |
Balance at the beginning of the period (in shares) at Mar. 31, 2020 | 25,202 | 19,720 | ||||||
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||||||
Net (loss) income | (6,682) | 77 | (6,605) | |||||
Stock-based compensation | 1,356 | 1,356 | ||||||
Vesting of restricted stock | (510) | (510) | ||||||
Vesting of restricted stock (in shares) | 237 | |||||||
Other comprehensive income (loss), net of tax | 81 | 81 | ||||||
Balance at the end of the period at Jun. 30, 2020 | $ 3 | $ 2 | $ 277,154 | $ (61,031) | $ (35) | $ (2,598) | $ 1,346 | $ 214,841 |
Balance at the end of the period (in shares) at Jun. 30, 2020 | 25,439 | 19,720 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Reconciliation of Net Loss to Net Cash Provided by Operating Activities: | ||
Net loss | $ (16,148) | $ (4,081) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 5,925 | 6,623 |
Program amortization | 8,784 | 6,953 |
Amortization of deferred financing costs and original issue discount | 292 | 290 |
Stock-based compensation | 2,636 | 1,360 |
Provision for bad debts | 929 | 219 |
Loss on disposition of assets | 211 | 39 |
Loss on equity method investments | 17,208 | 17,160 |
Impairment of equity method investment | 5,479 | |
Gain from FCC repack | (38) | (1,546) |
Amortization of operating lease right-of-use assets | 252 | 228 |
Decrease (increase) in: | ||
Accounts receivable | (3,337) | (288) |
Due from related parties, net | 967 | (233) |
Programming rights | (5,858) | (6,046) |
Prepaids and other assets | 585 | (3,841) |
(Decrease) increase in: | ||
Accounts payable | 3,121 | (168) |
Other accrued expenses | (1,893) | (5,594) |
Programming rights payable | 2,526 | 1,280 |
Income taxes payable | (2,265) | |
Other liabilities | (207) | 1,741 |
Net cash provided by operating activities | 21,434 | 11,831 |
Cash Flows From Investing Activities: | ||
Funding of equity method investments | (6,449) | (21,931) |
Capital expenditures | (613) | (4,303) |
FCC repack proceeds | 38 | 1,546 |
Net cash used in investing activities | (7,024) | (24,688) |
Cash Flows From Financing Activities: | ||
Repayments of long-term debt | (1,068) | (1,067) |
Purchases of common stock | (510) | (1,180) |
Proceeds from exercise of options | 107 | |
Net cash used in financing activities | (1,578) | (2,140) |
Net increase (decrease) in cash | 12,832 | (14,997) |
Cash: | ||
Beginning | 92,151 | 94,478 |
Ending | 104,983 | 79,481 |
Cash payments for: | ||
Interest | 5,213 | 6,979 |
Income taxes | $ 5 | 6,343 |
Non-cash investing activity: | ||
Acquisition financed in part by treasury shares | $ 588 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2020 | |
Nature of Business | |
Nature of Business | Note 1. Nature of Business Nature of business: The accompanying Condensed Consolidated Financial Statements include the accounts of Hemisphere Media Group, Inc. (“Hemisphere” or the “Company”), the parent holding company of Cine Latino, Inc. (“Cinelatino”), WAPA Holdings, LLC (formerly known as InterMedia Español Holdings, LLC) (“WAPA Holdings”), HMTV Cable, Inc., the parent company of the entities for the acquired networks consisting of Pasiones, TV Dominicana, and Centroamerica TV (see below), and HMTV Distribution, LLC, the parent of Snap Global, LLC, a Delaware limited liability company and its wholly owned subsidiaries (“Snap Media”), in which we own a 75% interest. Hemisphere was formed on January 16, 2013 for purposes of effecting its initial public offering, which was consummated on April 4, 2013. In these notes, the terms “Company,” “we,” “us” or “our” mean Hemisphere and all subsidiaries included in our Condensed Consolidated Financial Statements. Reclassification: Certain prior year amounts on the presented Condensed Consolidated Statement of Cash Flows have been reclassified to conform to current year presentation. Basis of presentation: The accompanying Condensed Consolidated Financial Statements for Hemisphere and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement have been included. Our financial condition as of, and operating results, for the three and six months ended June 30, 2020 are not necessarily indicative of the financial condition or results that may be expected for any future interim period or for the year ending December 31, 2020, especially when considering the risks and uncertainties associated with the coronavirus (“COVID-19”) and the impact it may have on our business, results of operations and financial condition. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Use of estimates: Net loss per common share: The following table sets forth the computation of the common shares outstanding used in determining basic and diluted loss per share attributable to Hemisphere Media Group, Inc. ( amounts in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator for loss per common share calculation: Net loss attributable to Hemisphere Media Group, Inc. $ (6,682) $ (2,358) $ (16,110) $ (4,044) Denominator for loss per common share calculation: Weighted-average common shares, basic 39,444 39,164 39,378 39,098 Effect of dilutive securities Stock options and restricted stock — — — — Weighted-average common shares, diluted 39,444 39,164 39,378 39,098 Loss per share attributable to Hemisphere Media Group, Inc. Basic $ (0.17) $ (0.06) $ (0.41) $ (0.10) Diluted $ (0.17) $ (0.06) $ (0.41) $ (0.10) We apply the treasury stock method to measure the dilutive effect of its outstanding stock options and restricted stock awards and include the respective common share equivalents in the denominator of our diluted loss per common share calculation. Per the Accounting Standards Codification (“ASC”) 260 accounting guidance, under the treasury stock method, the incremental shares (difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted loss per share computation (ASC 260-10-45-23). The assumed exercise only occurs when the options are “In the Money” (exercise price is lower than the average market price for the period). If the options are “Out of the Money” (exercise price is higher than the average market price for the period), the exercise is not assumed since the result would be anti-dilutive. Potentially dilutive securities representing 3.9 million and 0.9 million shares of common stock for the three months ended June 30, 2020 and 2019, respectively, were excluded from the computation of diluted loss per common share for these periods because their effect would have been anti-dilutive. Potentially dilutive securities representing 2.8 million and 1.0 million shares of common stock for the six months ended June 30, 2020 and 2019, respectively, were excluded from the computation of diluted loss per common share for these periods because their effects would have been anti-dilutive. The net loss per share attributable to Hemisphere Media Group, Inc. amounts are the same for our Class A and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. As a result of the loss from operations for the three months ended June 30, 2020 and 2019, 0.0 million and 0.5 million, respectively, outstanding awards were excluded from the computation of diluted loss per share because their effect was anti-dilutive. As a result of the loss from operations for the six months ended June 30, 2020 and 2019, 0.3 million and 0.5 million, respectively, outstanding awards were excluded from the computation of diluted loss per share because their effect was anti-dilutive. Risks and Uncertainties The impact of COVID-19 and measures to prevent its spread have continued to affect our businesses in a number of ways. Beginning in March 2020, the Company has experienced adverse advertising revenue impacts. Operationally, most non-production and programming personnel are working remotely, and the Company has restricted business travel. The Company has managed the remote workforce transition effectively and there have been no material adverse impacts on operations as of June 30, 2020. The Company is unable to predict the impact that a significant change in circumstances including portions of our workforce, and/or key personnel being unable to work effectively because of illness, government actions or other restrictions in connection with the COVID-19 pandemic may have on our businesses in the future. The extent of the impact of the COVID-19 pandemic on our future operations will depend on numerous factors, all of which are highly uncertain and cannot be predicted. These factors include the length and severity of the outbreak, the responses of governments and private sector businesses, the impact on economic activity and the impact on our customers, employees and suppliers. For more information on the risks associated with the COVID-19 pandemic, see "Item 1A-Risk Factors" included elsewhere in this Quarterly Report. The Company has evaluated and continues to evaluate the potential impact of the COVID-19 pandemic on its Condensed Consolidated Financial Statements, including the impairment of goodwill and indefinite-lived intangible assets and the fair value of equity method investments. The ultimate impact of the COVID-19 pandemic, including the extent of any adverse impact on our business, results of operations and financial condition, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the effectiveness of actions taken to contain or mitigate the outbreak, and global economic conditions. The negative effect of the pandemic on the Company’s business in the current period was significant and the adverse impact of COVID-19 could be material to the Company's future operating results. The Company believes it has substantial liquidity to satisfy its financial commitments, including its long-term debt. Recently adopted Accounting Standards: Accounting Standards Update ASU ) 2019- 02—Entertainment-Films-Other Assets-Film Costs (Subtopic 926-20): Improvements to Accounting for Costs of Films. Accounting guidance not yet adopted: In January 2017, the FASB issued ASU 2017 04—Intangibles—Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment . The amendments in this Update simplify how an entity is required to test goodwill for impairment by eliminating step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under amendments in this Update, an entity would perform its annual, or interim, testing by comparing the fair value of a reporting unit with its carrying amount. An entity would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The amendments in this Update are effective for Small Reporting Companies with fiscal years beginning after December 15, 2022, and interim periods within those annual periods. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact, if any, that the updated accounting guidance will have on our accompanying Condensed Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition | |
Revenue Recognition | Note 2. Revenue Recognition The following is a description of principal activities from which we generate our revenue: Affiliate revenue: We enter into arrangements with multi-channel video distributors, such as cable, satellite and telecommunications companies (referred to as “MVPDs”) to provide a continuous feed of our programming generally based on a per subscriber fee pursuant to multi-year contracts, referred to as “affiliation agreements”, which typically provide for annual rate increases. We have used the practical expedient related to the right to invoice and recognize revenue at the amount to which we have the right to invoice for services performed. The specific affiliate revenue we earn varies from period to period, distributor to distributor and also varies among our Networks, but are generally based upon the number of each distributor’s paying subscribers who subscribe to our Networks. Changes in affiliate revenue are primarily derived from changes in contractual per subscriber rates charged for our Networks and changes in the number of subscribers. MVPDs report their subscriber numbers to us generally on a two month lag. We record revenue based on estimates of the number of subscribers utilizing the most recently received remittance reporting of each MVPD, which is consistent with our past practice and industry practice. Revenue is recognized on a month by month basis when the performance obligations to provide service to the MVPDs is satisfied. Payment is typically received within sixty days of the remittance. Advertising revenue: Advertising revenue is generated from the sale of commercial time, which is typically sold pursuant to sale orders with advertisers providing for an agreed upon commitment and price per spot. We recognize revenue from the sale of advertising as performance obligations are satisfied upon airing of the advertising; therefore, revenue is recognized at a point in time when each advertising spot is transmitted. Agency fees are calculated based on a stated percentage applied to gross billing revenue for our advertising inventory and are reported as a reduction of advertising revenue. Payment is typically due and received within thirty days of the invoice date. Other revenue: Other revenues are derived primarily through the licensing of content to third parties and to Pantaya. We enter into agreements to license content and recognize revenue when the performance obligation is satisfied and control is transferred, which is generally upon delivery of the content. The following table presents the revenues disaggregated by revenue source (amounts in thousands): Three months ended June 30, Revenues by type 2020 2019 Affiliate revenue $ 19,273 $ 21,537 Advertising revenue 12,378 15,699 Other revenue 3,084 1,911 Total revenue $ 34,735 $ 39,147 Six months ended June 30, Revenues by type 2020 2019 Affiliate revenue $ 39,106 $ 42,886 Advertising revenue 24,194 28,845 Other revenue 3,844 2,526 Total revenue $ 67,144 $ 74,257 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions | |
Related Party Transactions | Note 3. Related Party Transactions The Company has various agreements with MVS, a Mexican media and television conglomerate, which has directors and stockholders in common with the Company as follows: ● MVS provides Cinelatino with satellite and support services including origination, uplinking and satellite delivery of two feeds of Cinelatino’s channel (for U.S. and Latin America), master control and monitoring, dubbing, subtitling and close captioning, and other support services. Expenses incurred under this agreement are included in cost of revenues in the accompanying Condensed Consolidated Statements of Operations. Total expenses incurred were $0.6 million and $0.7 million for the three months ended June 30, 2020 and 2019, respectively. Total expenses incurred were $1.3 million for each of the six months ended June 30, 2020 and 2019. Amounts due to MVS pursuant to the agreement amounted to $1.1 million and $0.7 million at June 30, 2020 and December 31, 2019, respectively. ● Dish Mexico (d/b/a Comercializadora de Frecuencias Satelitales, S. de R.L. de C.V.), an MVS affiliate that operates a subscription satellite television service throughout Mexico, and distributes Cinelatino as part of its service. Total revenue recognized was $0.3 million and $0.5 million for the three months ended June 30, 2020 and 2019, respectively. Total revenue recognized was $0.6 million and $0.9 million for the six months ended June 30, 2020 and 2019, respectively. Amounts due from Dish Mexico amounted to $0.4 million and $0.3 million at June 30, 2020 and December 31, 2019, respectively. ◾ MVS has the non-exclusive right to duplicate, distribute and exhibit Cinelatino’s service via cable, satellite or by any other means in Mexico. Cinelatino receives revenues net of MVS’s distribution fee, which is equal to 13.5% of all license fees collected from third party distributors managed but not owned by MVS. Total revenues recognized were $0.2 million and $0.3 million for the three months ended June 30, 2020 and 2019, respectively. Total revenues recognized were $0.4 million and $0.6 million for the six months ended June 30, 2020 and 2019, respectively. Amounts due from MVS pursuant to this agreement amounted to $0.5 million and $0.7 million at June 30, 2020 and December 31, 2019, respectively. The Company entered into an amended and restated consulting agreement with James M. McNamara, a member of the Company’s board of directors, on August 13, 2019, to provide the development, production and maintenance of programming, affiliate relations, identification and negotiation of carriage opportunities, and the development, identification and negotiation of new business initiatives including sponsorship, new channels, direct-to-consumer programs and other interactive initiatives. Total expenses incurred under this agreement are included in selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations and amounted to $0.1 million for each of the three months ended June 30, 2020 and 2019 , and $0.2 million for each of the six months ended June 30, 2020 and 2019. No amounts were due to this related party at June 30, 2020 and December 31, 2019. The Company is party to an output agreement with Pantelion Films, LLC (“Pantelion”), a joint venture made up of several organizations, including Panamax Films, LLC (an entity owned by James M. McNamara) and Lions Gate Films, Inc. (“Lionsgate”), for the licensing of movie titles. Expenses incurred under this agreement are included in cost of revenues in the accompanying Condensed Consolidated Statements of Operations and amounted to $0.2 million and $0.5 million for three and six months ended June 30, 2020, respectively, and $0.1 million for each of the three and six months ended June 30, 2019. At June 30, 2020 and December 31, 2019, $2.4 million and $1.8 million, respectively, is included in programming rights payable in the accompanying Condensed Consolidated Balance Sheets related to this agreement. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 4. Goodwill and Intangible Assets Goodwill and intangible assets consist of the following as of June 30, 2020 and December 31, 2019 ( amounts in thousands June 30, December 31, 2020 2019 Broadcast license $ 41,356 $ 41,356 Goodwill 167,322 167,322 Other intangibles 29,058 32,587 Total intangible assets $ 237,736 $ 241,265 A summary of changes in the Company’s goodwill and other indefinite-lived intangible assets, on a net basis, for the six months ended June 30, 2020 is as follows (amounts in thousands) Net Balance at Net Balance at December 31, 2019 Additions Impairment June 30, 2020 Broadcast license $ 41,356 $ — $ — $ 41,356 Goodwill 167,322 — — 167,322 Brands 15,986 — — 15,986 Other intangibles 700 — — 700 Total indefinite-lived intangibles $ 225,364 $ — $ — $ 225,364 A summary of the changes in the Company’s other amortizable intangible assets for the six months ended June 30, 2020 is as follows (amounts in thousands) Net Balance at Net Balance at December 31, 2019 Additions Amortization June 30, 2020 Affiliate relationships $ 14,352 $ — $ (2,994) $ 11,358 Advertiser relationships 138 — (138) — Non-compete agreement 826 — (317) 509 Other intangibles 68 — (35) 33 Programming contracts 517 — (45) 472 Total finite-lived intangibles $ 15,901 $ — $ (3,529) $ 12,372 The aggregate amortization expense of the Company’s amortizable intangible assets was $1.6 million and $1.8 million for the three months ended June 30, 2020 and 2019, respectively, and $3.5 million and $5.1 million for the six months ended June 30, 2020 and 2019, respectively. The weighted average remaining amortization period is 2.3 years at June 30, 2020. Future estimated amortization expense is as follows (amounts in thousands): Year Ending December 31, Amount Remainder of 2020 $ 3,239 2021 6,424 2022 1,766 2023 328 2024 and thereafter 615 Total $ 12,372 The Company evaluated whether there has been a change in circumstances as of June 30, 2020 and as of the date of this filing in response to the economic impacts seen globally from COVID-19. The valuation methodology to determine the fair value of our goodwill and intangible assets is sensitive to management's forecasts of future profitability and market conditions. Based on the analysis it was concluded that the fair value of our goodwill and intangible assets was more likely than not in excess of the carrying value as of June 30, 2020. At this time, the impact of COVID-19 on our forecasts is uncertain and, as a result, we will continue to evaluate the potential impact on our Business. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments | |
Equity Method Investments | Note 5. Equity Method Investments The Company makes investments that support its underlying business strategy and enable it to enter new markets. The Company holds equity investments in Pantaya, Canal 1 and Snap JV (in each case, as defined and discussed below), which are variable interest entities (“VIEs”), for which the Company is not the primary beneficiary. The primary beneficiary is the party involved with the VIE that (i) has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and (ii) has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The activities of each VIE that most significantly impact the VIE’s economic performance are controlled by the VIE’s board of directors and the Company’s representation on the board of directors of each VIE is commensurate with its voting equity interest. As the Company does not hold a majority voting interest or disproportionate voting or other rights, it does not have the power to direct the activities that most significantly impact the economic performance of any of these VIEs. On November 3, 2016, we acquired a 25% interest in Pantaya, a newly formed joint venture with Lionsgate, to launch a Spanish-language OTT movie service. The service launched on August 1, 2017. The investment is deemed a variable interest entity that is accounted for under the equity method. During the three months ended March 31, 2020, we funded $1.5 million into Pantaya, bringing our total capital contributions to $10 million, equal to our funding obligation. We record the income or loss on investment on a one quarter lag. As of March 31, 2019, our applicable pro rata share of the inception-to-date losses exceeded our contractual funding commitment of $10 million. As such, our cumulative share of the losses is limited to $10 million and no additional losses were recorded following the three months ended March 31, 2019. For each of the three months ended June 30, 2020 and 2019, we recorded $0 million in loss on equity method investments in the accompanying Condensed Consolidated Statements of Operations. For the six months ended June 30, 2020 and 2019, we recorded $0 and $0.3 million in loss on equity method investments in the accompanying Condensed Consolidated Statements of Operations, respectively. As of December 31, 2019, we were committed to provide future capital contributions to Pantaya. Accordingly, we presented the net balance recorded for our share of Pantaya’s losses in excess of the amount funded into Pantaya as a liability in the amount of $1.5 million in the accompanying Condensed Consolidated Balance Sheet as of December 31, 2019. During the three month period ended March 31, 2020, we satisfied our capital contribution obligation to Pantaya, and as a result, the balance recorded for our share of Pantaya’s losses in excess of the amount funded was $0, and accordingly, there was no liability presented in the accompanying Condensed Consolidated Balance Sheet as of June 30, 2020. As of June 30, 2020 and December 31, 2019, we had a receivable balance from Pantaya of $3.4 million and $3.9 million, respectively, and is included in accounts receivable and other assets in the accompanying Condensed Consolidated Balance Sheets. On November 30, 2016, we, in partnership with Colombian content producers, Radio Television Interamericana S.A., Compania de Medios de Informacion S.A.S. and NTC Nacional de Television y Comunicaciones S.A., were awarded a ten year renewable television broadcast concession license for Canal 1 in Colombia. The partnership began operating Canal 1 on May 1, 2017. On February 7, 2018, Colombian regulatory authorities approved an increase in our ownership in the joint venture from 20% to 40%. In July 2019, the Colombian government enacted legislation resulting in the extension of the concession license for Canal 1 for an additional ten years for no additional consideration. The concession is now due to expire on April 30, 2037 and is renewable for an additional 20-year period. The joint venture is deemed a VIE that is accounted for under the equity method. As of June 30, 2020, we have funded $116.6 million in capital contributions to Canal 1. The Canal 1 joint venture losses-to-date have exceeded the capital contributions of the common equity partners and in accordance with equity method accounting, losses in excess of the common equity have been recorded against the next layer of the capital structure, in this case, preferred equity. The Company is currently the sole preferred equity holder in Canal 1 and therefore, the Company records 100% of the losses of the joint venture. We record the income or loss on investment on a one quarter lag. For the three months ended June 30, 2020 and 2019, we recorded $10.2 million and $9.9 million in loss on equity method investment in the accompanying Condensed Consolidated Statements of Operations, respectively. For the six months ended June 30, 2020 and 2019, we recorded $17.0 million and $16.9 million in loss on equity method investment in the accompanying Condensed Consolidated Statements of Operations, respectively. The net balance recorded in equity method investments related to the Canal 1 joint venture was $32.0 million and $44.2 million as of June 30, 2020 and December 31, 2019, respectively, and is included in the accompanying Condensed Consolidated Balance Sheets. As of June 30, 2020 and December 31, 2019, we had a receivable balance from Canal 1 of $2.4 million and $2.0 million, respectively, and is included in other assets in the accompanying Condensed Consolidated Balance Sheets. On April 28, 2017, we acquired a 25.5% interest in REMEZCLA, a digital media company targeting English speaking and bilingual U.S. Hispanic millennials through innovative content, for $5.0 million. At March 31, 2020, given the negative impacts caused by the COVID-19 pandemic and the associated liquidity and going-concern uncertainties related to REMEZCLA, the Company determined that the investment in REMEZCLA was other-than-temporarily impaired. As a result, we recorded a non-cash impairment charge of On November 26, 2018, Snap Media acquired a 50% interest in Snap JV, LLC (“Snap JV”) (we own 75% of Snap Media), a newly formed joint venture with Mar Vista Entertainment, LLC (“MarVista”), to co-produce original movies and series. The investment is deemed a VIE that is accounted for under the equity method. As of June 30, 2020, we have funded recorded $0 million and $0.0 million, respectively, in loss on equity method investments in the accompanying Condensed Consolidated Statements of Operations. For the six months ended June 30, 2020 and 2019, we recorded $0.2 million and $0.1 million, respectively, in loss on equity method investments in the accompanying Condensed Consolidated Statements of Operations. The net balance recorded in equity method investments related to Snap JV was $0.1 million and $0.0 million as of June 30, 2020 and December 31, 2019, respectively, and is included in the accompanying Condensed Consolidated Balance Sheets. The Company records the income or loss on investments on a one quarter lag. Summary unaudited financial data for our equity investments in the aggregate as of and for the six months ended March 31, 2020 are included below (amounts in thousands): Total Equity Investees Current assets $ 51,440 Non-current assets $ 23,920 Current liabilities $ 104,825 Non-current liabilities $ 23,158 Net revenue $ 23,785 Operating loss $ (20,438) Net loss $ (34,119) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes | |
Income Taxes | Note 6. Income Taxes The 2017 Tax Cuts and Jobs Act ("Tax Act") was signed into law on December 22, 2017. The Tax Act revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21% in 2018. The Company generates income in higher tax rate foreign locations, which result in foreign tax credits. The lower federal corporate tax rate reduces the likelihood or our utilization of foreign tax credits created by income taxes paid in Puerto Rico and Latin America, resulting in a valuation allowance. Additionally, the Company evaluated the potential interest limitation established under the Tax Act and determined that no limitation would affect the 2020 provision for income taxes. The Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law on March 27, 2020. The CARES Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company determined that the CARES Act would not have a material impact on our accompanying Condensed Consolidated Financial Statements. For the six months ended June 30, 2020 and 2019, our income tax expense has been computed utilizing an estimated annual effective tax rate of 35.7% and 33.1%, respectively. The difference between the annual effective rate of 35.7% and the statutory Federal income tax rate of 21% in the six month period ended June 30, 2020, is primarily due to the impact of the Tax Act , which impacted the valuation allowance on foreign tax credits, and limitations on the deductibility of executive compensation under Internal Revenue Code Section 162(m). The annual effective tax rate related to income generated in the U.S. is 26.3%. Due to the reduced U.S. tax rate, the Company determined that a portion of its foreign income, which is taxed at a higher rate, will result in the generation of excess foreign tax credits that will not be available to offset U.S. income tax. As a result, 9.4% of the annual effective rate relates to the required valuation allowance against the excess foreign tax credits, bringing the annual effective tax rate for the six month period ended June 30, 2020 to 35.7%. For the six month period ended June 30, 2019, the difference between the annual effective tax rate of 33.1% and the statutory Federal income tax rate of 21% is primarily due to the impact of the Tax Act and the related impact to the valuation allowance on foreign tax credits. Income tax expense was $2.9 million and $3.6 million for the three months ended June 30, 2020 and 2019, respectively. Income tax expense was $1.2 million and $6.2 million for the six months ended June 30, 2020 and 2019, respectively. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Long-Term Debt | |
Long-Term Debt | Note 7. Long-Term Debt Long-term debt as of June 30, 2020 and December 31, 2019 consists of the following (amounts in thousands) June 30, 2020 December 31, 2019 Senior Notes due February 2024 $ 203,765 $ 204,540 Less: Current portion 2,134 2,134 $ 201,631 $ 202,406 On February 14, 2017, the Borrowers amended the Term Loan Facility (the “Second Amended Term Loan Facility”). The Second Amended Term Loan Facility provides for a $213.3 million senior secured term loan B facility, which matures on February 14, 2024, and bears interest at the Borrowers’ option of either (i) London Inter-bank Offered Rate (“LIBOR”) plus a margin of 3.50% or (ii) an Alternate Base Rate (“ABR”) plus a margin of 2.50%. The Second Amended Term Loan Facility, among other terms, provides for an uncommitted incremental loan option (the “Incremental Facility”) allowing for increases for borrowings under the Second Amended Term Loan Facility and borrowing of new tranches of term loans, up to an aggregate principal amount equal to (i) $65.0 million plus (ii) an additional amount (the “Incremental Facility Increase”) provided, that after giving effect to such Incremental Facility Increase (as well as any other additional term loans), on a pro forma basis, the First Lien Net Leverage Ratio (as defined in the Second Amended Term Loan Facility) for the most recent four consecutive fiscal quarters does not exceed 4.00:1.00 and the Total Net Leverage Ratio (as defined in the Second Amended Term Loan Facility) for the most recent four consecutive fiscal quarters does not exceed 6.00:1.00. The First Lien Net Leverage Ratio and the Total Net Leverage Ratio each cap the cash netted against debt up to a maximum amount of $60.0 million. Additionally, the Second Amended Term Loan Facility also provides for an uncommitted incremental revolving loan option (the “Incremental Revolving Facility”) allowing for an aggregate principal amount of up to $30.0 million, which will be secured on a pari passu The Second Amended Term Loan Facility requires the Borrowers to make amortization payments (in quarterly installments, which commenced on March 31, 2017) equal to 1.00% per annum with any remaining amount due at final maturity on February 14, 2024. Voluntary prepayments are permitted, in whole or in part, subject to certain minimum prepayment requirements. In addition, pursuant to the terms of the Second Amended Term Loan Facility, within 90 days after the end of each fiscal year, the Borrowers are required to make a prepayment of the loan principal in an amount equal to a percentage of the excess cash flow of the most recently completed fiscal year. Excess cash flow is generally defined as net income plus depreciation and amortization expense, less mandatory prepayments of the term loan, income taxes and capital expenditures, and adjusted for the change in working capital. The percentage of the excess cash flow used to determine the amount of the prepayment of the loan declines from 50% to 25%, and again to 0% at lower leverage ratios. In accordance with the terms of the Second Amended Term Loan Facility, our net leverage ratio was 2.2x at December 31, 2019, resulting in an excess cash flow percentage of 0% and therefore, no excess cash flow payment was due in March 2020. As of June 30, 2020, the original issue discount balance was $1.2 million, net of accumulated amortization of $2.3 million and was recorded as a reduction to the principal amount of the Second Amended Term Loan Facility outstanding as presented on the accompanying Condensed Consolidated Balance Sheets and will be amortized as a component of interest expense over the term of the Second Amended Term Loan Facility. In accordance with ASU 2015-15 Interest—Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements, The carrying value of the long-term debt approximates fair value as of June 30, 2020 and December 31, 2019, and was derived from quoted market prices by independent dealers (Level 2 in the fair value hierarchy under ASC 820, Fair Value Measurements and Disclosures amounts in thousands Year Ending December 31, Amount Remainder of 2020 $ 1,067 2021 2,134 2022 2,134 2023 2,134 2024 198,411 Total $ 205,880 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments | |
Derivative Instruments | Note 8. Derivative Instruments We use derivative financial instruments in the management of our interest rate exposure. Our strategy is to eliminate the cash flow risk on a portion of the variable rate debt caused by changes in the designated benchmark interest rate, LIBOR. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. On May 4, 2017, we entered into two identical pay-fixed, receive-variable, interest rate swaps with two different counterparties, to hedge the variability in the LIBOR interest payments on an aggregate notional value of $100.0 million of our Second Amended Term Loan Facility beginning May 31, 2017, through the expiration of the swaps on March 31, 2022. At inception, these interest rate swaps were designated as cash flow hedges of interest rate risk, and as such, the unrealized changes in fair value are recorded in accumulated other comprehensive income (“AOCI”). The change in the fair value of the interest rate swap agreements for the three months ended June 30, 2020 and 2019, resulted in an unrealized gain of $0.1 million and an unrealized loss of $1.5 million, respectively, and was included in AOCI net of taxes. The change in the fair value of the interest rate swap agreements for the six months ended June 30, 2020 and 2019, resulted in an unrealized loss of $2.3 million and $2.4 million, respectively, which were included in AOCI net of taxes. The Company paid $0.4 million of net interest on the settlement of the interest rate swap agreements for each of the three and six months ended June 30, 2020. The Company received $0.1 million and $0.3 million of net interest on the settlement of the interest rate swap agreements for the three and six months ended June 30, 2019, respectively. As of June 30, 2020, the Company estimates that none of the unrealized loss included in AOCI related to these interest rate swap agreements will be realized and reported in operations within the next twelve months. No gain or loss was recorded in the accompanying Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2020 and 2019. The aggregate fair value of the interest rate swaps was $3.1 million and $0.8 million as of June 30, 2020 and December 31, 2019, respectively, and was recorded in other long-term liabilities on the accompanying Condensed Consolidated Balance Sheets. By entering into derivative instrument contracts, we are exposed to counterparty credit risk. Counterparty credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is in an asset position, the counterparty has a liability to us, which creates credit risk for us. We attempt to minimize this risk by selecting counterparties with investment grade credit ratings and regularly monitoring our market position with each counterparty. Our derivative instruments do not contain any credit-risk related contingent features. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 9. Fair Value Measurements Our derivatives are valued using a discounted cash flow analysis that incorporates observable market parameters, such as interest rate yield curves, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by us or the counterparty. The following table presents our assets and liabilities measured at fair value on a recurring basis and the levels of inputs used to measure fair value, which include derivatives designated as cash flow hedging instruments, as well as their location on our accompanying Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 ( amounts in thousands Estimated Fair Value June 30, 2020 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Cash flow hedges: Interest rate swap Other long-term liabilities — $ 3,128 — $ 3,128 Estimated Fair Value December 31, 2019 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Cash flow hedges: Interest rate swap Other long-term liabilities — $ 804 — $ 804 Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to periodic impairment tests. These items primarily include long-lived assets, goodwill and other intangible assets. As of March 31, 2020, the Company measured its equity method investment in REMEZCLA and recorded an other-than-temporary non-cash impairment charge using Level 3 inputs. Fair value was estimated using a market approach that reflected estimated revenue multiples, adjusted for liquidity and going-concern uncertainty. For more information, see Note 5, “Equity Method Investments”. There were no other nonfinancial assets or liabilities The carrying amounts of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of these items. The carrying value of the long-term debt approximates fair value because this instrument bears interest at a variable rate, is pre-payable, and is at terms currently available to the Company. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | Note 10. Stockholders’ Equity Capital stock As of June 30, 2020, the Company had 20,241,173 shares of Class A common stock , and 19,720,381 shares of Class B common stock, issued and outstanding. On August 15, 2018, the Company announced that its Board of Directors authorized the repurchase of up to $25 million of the Company’s Class A common stock on an opportunistic basis. As of June 30, 2020, no repurchases have been made. Equity incentive plans Effective May 16, 2016, the stockholders of all classes of capital stock of the Company approved at the annual stockholder meeting the Hemisphere Media Group, Inc. Amended and Restated 2013 Equity Incentive Plan (the “Equity Incentive Plan”) to increase the number of shares of Class A common stock that may be delivered under the Equity Incentive Plan to an aggregate of 7.2 million shares of our Class A common stock. At June 30, 2020, 1.2 million shares remained available for issuance of stock options or other stock-based awards under our Equity Incentive Plan (including shares of restricted Class A common stock surrendered to the Company in payment of taxes required to be withheld in respect of vested shares of restricted Class A common stock, which are available for re-issuance). The expiration date of the Equity Incentive Plan, on and after which date no awards may be granted, is April 4, 2023. The Company’s Board of Directors, or a committee thereof, administers the Equity Incentive Plan and has the sole and plenary authority to, among other things: (i) designate participants; (ii) determine the type, size, and terms and conditions of awards to be granted; and (iii) determine the method by which an award may be settled, exercised, canceled, forfeited or suspended. The Company’s time-based restricted stock awards and option awards generally vest in three equal annual installments beginning on the first anniversary of the grant date, subject to the grantee’s continued employment or service with the Company. The Company’s event-based restricted stock awards granted to certain members of our Board vest on the day preceding the Company’s annual stockholder meeting. Stock-based compensation Stock-based compensation expense related to stock options and restricted stock was $1.4 million and $0.4 million for the three months ended June 30, 2020 and 2019, respectively, and $2.6 million and $1.4 million for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was $3.3 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 1.7 years. As of June 30, 2020, there was $4.6 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over a weighted-average period of 1.6 years. Stock options The fair value of stock options granted is estimated at the date of grant using the Black-Scholes pricing model for time-based options and the Monte Carlo simulation model for event-based options. The expected term of options granted is derived using the simplified method under ASC 718-10-S99-1/SEC Topic 14.D for “plain vanilla” options and the Monte Carlo simulation for event-based options. Expected volatility is based on the historical volatility of the Company’s competitors given its lack of trading history. The risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has estimated forfeitures of 1.5 %, as the awards are granted to management for which the Company expects lower turnover, and has assumed no dividend yield, as dividends have never been paid to stock or option holders and will not be paid for the foreseeable future. Six Months Ended Year Ended Black-Scholes Option Valuation Assumptions June 30, 2020 December 31, 2019 Risk-free interest rate 0.4 % 1.6 % Dividend yield — — Volatility 44.2 % 40.3 % Weighted-average expected term (years) 6.0 6.0 The following table summarizes stock option activity for the six months ended June 30, 2020 (shares and intrinsic value in thousands) Weighted- Weighted-average average remaining contractual Aggregate intrinsic Number of shares exercise price term value Outstanding at December 31, 2019 3,855 $ 11.72 6.1 $ 12,101 Granted 25 9.29 6.0 — Exercised — — — — Forfeited — — — — Expired — — — — Outstanding at June 30, 2020 3,880 $ 11.66 5.6 $ 46 Vested at June 30, 2020 3,102 $ 11.56 4.7 $ 32 Exercisable at June 30, 2020 3,102 $ 11.56 4.7 $ 32 Restricted stock Certain employees and directors have been awarded restricted stock under the Equity Incentive Plan. The time-based restricted stock grants vest primarily over a period of three years . The fair value and expected term of event-based restricted stock grants is estimated at the grant date using the Monte Carlo simulation model. The following table summarizes restricted share activity for the six months ended June 30, 2020 ( shares in thousands Weighted-average Number of shares grant date fair value Outstanding at December 31, 2019 592 $ 12.32 Granted 118 9.29 Vested (237) 12.75 Forfeited — — Outstanding at June 30, 2020 473 $ 11.34 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Contingencies | |
Contingencies | Note 11. Contingencies We are involved in various legal actions, generally related to our operations. Management believes, based on advice from legal counsel, that the outcomes of such legal actions will not adversely affect our financial condition. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases | |
Leases | Note 12. Leases The Company is a lessee under leases for land, office space and equipment with third parties, all of which are accounted for as operating leases. These leases generally have an initial term of one million for each of the six months ended June 30, 2020 and 2019. Leases with a term of one year or less are classified as short-term and are not recognized in the Condensed Consolidated Balance Sheets. A summary of the classification of operating leases on our Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 ( amounts in thousands June 30, December 31, 2020 2019 Operating lease right-of-use assets $ 1,567 $ 1,833 Operating lease liability, current (Other accrued expenses) 520 538 Operating lease liability, non-current (Other long-term liabilities) $ 1,330 $ 1,574 Components of lease cost reflected in our Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2020 and 2019 amounts in thousands Three months ended June 30, 2020 2019 Operating lease cost $ 152 $ 161 Short-term lease cost 12 61 Total lease cost $ 164 $ 222 Six months ended June 30, 2020 2019 Operating lease cost $ 320 $ 316 Short-term lease cost 85 110 Total lease cost $ 405 $ 426 A summary of weighted-average remaining lease term and weighted-average discount rate as of June 30, 2020: Weighted-average remaining lease term 3.8 years Weighted average discount rate 6.9 % Supplemental cash flow and other non-cash information for the six months ended June 30, 2020 and 2019 ( amounts in thousands Six months ended June 30, 2020 2019 Operating cash flows from operating leases $ 288 $ 269 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities — 393 Future annual minimum lease commitments as of June 30, 2020 were as follows ( amounts in thousands June 30, 2020 Remainder of 2020 $ 337 2021 591 2022 473 2023 388 2024 328 Total minimum payments $ 2,117 Less: amount representing interest (267) Lease liability $ 1,850 |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2020 | |
Commitments | |
Commitments | Note 13. Commitments The Company has other commitments in addition to the various operating leases included in Note 12, “Leases ” Future minimum payments as of June 30, 2020, are as follows (amounts in thousands) June 30, 2020 Remainder of 2020 $ 8,119 2021 5,280 2022 1,779 2023 419 2024 and thereafter 232 Total $ 15,829 |
Nature of Business (Policies)
Nature of Business (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Nature of Business | |
Reclassification: | Reclassification: Certain prior year amounts on the presented Condensed Consolidated Statement of Cash Flows have been reclassified to conform to current year presentation. |
Basis of presentation: | Basis of presentation: The accompanying Condensed Consolidated Financial Statements for Hemisphere and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement have been included. Our financial condition as of, and operating results, for the three and six months ended June 30, 2020 are not necessarily indicative of the financial condition or results that may be expected for any future interim period or for the year ending December 31, 2020, especially when considering the risks and uncertainties associated with the coronavirus (“COVID-19”) and the impact it may have on our business, results of operations and financial condition. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. |
Use of estimates: | Use of estimates: |
Net loss per common share: | Net loss per common share: The following table sets forth the computation of the common shares outstanding used in determining basic and diluted loss per share attributable to Hemisphere Media Group, Inc. ( amounts in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator for loss per common share calculation: Net loss attributable to Hemisphere Media Group, Inc. $ (6,682) $ (2,358) $ (16,110) $ (4,044) Denominator for loss per common share calculation: Weighted-average common shares, basic 39,444 39,164 39,378 39,098 Effect of dilutive securities Stock options and restricted stock — — — — Weighted-average common shares, diluted 39,444 39,164 39,378 39,098 Loss per share attributable to Hemisphere Media Group, Inc. Basic $ (0.17) $ (0.06) $ (0.41) $ (0.10) Diluted $ (0.17) $ (0.06) $ (0.41) $ (0.10) We apply the treasury stock method to measure the dilutive effect of its outstanding stock options and restricted stock awards and include the respective common share equivalents in the denominator of our diluted loss per common share calculation. Per the Accounting Standards Codification (“ASC”) 260 accounting guidance, under the treasury stock method, the incremental shares (difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted loss per share computation (ASC 260-10-45-23). The assumed exercise only occurs when the options are “In the Money” (exercise price is lower than the average market price for the period). If the options are “Out of the Money” (exercise price is higher than the average market price for the period), the exercise is not assumed since the result would be anti-dilutive. Potentially dilutive securities representing 3.9 million and 0.9 million shares of common stock for the three months ended June 30, 2020 and 2019, respectively, were excluded from the computation of diluted loss per common share for these periods because their effect would have been anti-dilutive. Potentially dilutive securities representing 2.8 million and 1.0 million shares of common stock for the six months ended June 30, 2020 and 2019, respectively, were excluded from the computation of diluted loss per common share for these periods because their effects would have been anti-dilutive. The net loss per share attributable to Hemisphere Media Group, Inc. amounts are the same for our Class A and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. As a result of the loss from operations for the three months ended June 30, 2020 and 2019, 0.0 million and 0.5 million, respectively, outstanding awards were excluded from the computation of diluted loss per share because their effect was anti-dilutive. As a result of the loss from operations for the six months ended June 30, 2020 and 2019, 0.3 million and 0.5 million, respectively, outstanding awards were excluded from the computation of diluted loss per share because their effect was anti-dilutive. |
Risks and Uncertainties: | Risks and Uncertainties The impact of COVID-19 and measures to prevent its spread have continued to affect our businesses in a number of ways. Beginning in March 2020, the Company has experienced adverse advertising revenue impacts. Operationally, most non-production and programming personnel are working remotely, and the Company has restricted business travel. The Company has managed the remote workforce transition effectively and there have been no material adverse impacts on operations as of June 30, 2020. The Company is unable to predict the impact that a significant change in circumstances including portions of our workforce, and/or key personnel being unable to work effectively because of illness, government actions or other restrictions in connection with the COVID-19 pandemic may have on our businesses in the future. The extent of the impact of the COVID-19 pandemic on our future operations will depend on numerous factors, all of which are highly uncertain and cannot be predicted. These factors include the length and severity of the outbreak, the responses of governments and private sector businesses, the impact on economic activity and the impact on our customers, employees and suppliers. For more information on the risks associated with the COVID-19 pandemic, see "Item 1A-Risk Factors" included elsewhere in this Quarterly Report. The Company has evaluated and continues to evaluate the potential impact of the COVID-19 pandemic on its Condensed Consolidated Financial Statements, including the impairment of goodwill and indefinite-lived intangible assets and the fair value of equity method investments. The ultimate impact of the COVID-19 pandemic, including the extent of any adverse impact on our business, results of operations and financial condition, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the effectiveness of actions taken to contain or mitigate the outbreak, and global economic conditions. The negative effect of the pandemic on the Company’s business in the current period was significant and the adverse impact of COVID-19 could be material to the Company's future operating results. The Company believes it has substantial liquidity to satisfy its financial commitments, including its long-term debt. |
Recently adopted Accounting Standards and Accounting guidance not yet adopted: | Recently adopted Accounting Standards: Accounting Standards Update ASU ) 2019- 02—Entertainment-Films-Other Assets-Film Costs (Subtopic 926-20): Improvements to Accounting for Costs of Films. Accounting guidance not yet adopted: In January 2017, the FASB issued ASU 2017 04—Intangibles—Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment . The amendments in this Update simplify how an entity is required to test goodwill for impairment by eliminating step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under amendments in this Update, an entity would perform its annual, or interim, testing by comparing the fair value of a reporting unit with its carrying amount. An entity would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The amendments in this Update are effective for Small Reporting Companies with fiscal years beginning after December 15, 2022, and interim periods within those annual periods. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact, if any, that the updated accounting guidance will have on our accompanying Condensed Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Nature of Business (Tables)
Nature of Business (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Nature of Business | |
Schedule of the computation of the common shares outstanding used in determining basic and diluted loss per share | The following table sets forth the computation of the common shares outstanding used in determining basic and diluted loss per share attributable to Hemisphere Media Group, Inc. ( amounts in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator for loss per common share calculation: Net loss attributable to Hemisphere Media Group, Inc. $ (6,682) $ (2,358) $ (16,110) $ (4,044) Denominator for loss per common share calculation: Weighted-average common shares, basic 39,444 39,164 39,378 39,098 Effect of dilutive securities Stock options and restricted stock — — — — Weighted-average common shares, diluted 39,444 39,164 39,378 39,098 Loss per share attributable to Hemisphere Media Group, Inc. Basic $ (0.17) $ (0.06) $ (0.41) $ (0.10) Diluted $ (0.17) $ (0.06) $ (0.41) $ (0.10) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition | |
Schedule of disaggregation of revenue | The following table presents the revenues disaggregated by revenue source (amounts in thousands): Three months ended June 30, Revenues by type 2020 2019 Affiliate revenue $ 19,273 $ 21,537 Advertising revenue 12,378 15,699 Other revenue 3,084 1,911 Total revenue $ 34,735 $ 39,147 Six months ended June 30, Revenues by type 2020 2019 Affiliate revenue $ 39,106 $ 42,886 Advertising revenue 24,194 28,845 Other revenue 3,844 2,526 Total revenue $ 67,144 $ 74,257 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets | |
Schedule of goodwill and intangible assets | Goodwill and intangible assets consist of the following as of June 30, 2020 and December 31, 2019 ( amounts in thousands June 30, December 31, 2020 2019 Broadcast license $ 41,356 $ 41,356 Goodwill 167,322 167,322 Other intangibles 29,058 32,587 Total intangible assets $ 237,736 $ 241,265 |
Summary of the changes in goodwill and other indefinite-lived intangible assets | A summary of changes in the Company’s goodwill and other indefinite-lived intangible assets, on a net basis, for the six months ended June 30, 2020 is as follows (amounts in thousands) Net Balance at Net Balance at December 31, 2019 Additions Impairment June 30, 2020 Broadcast license $ 41,356 $ — $ — $ 41,356 Goodwill 167,322 — — 167,322 Brands 15,986 — — 15,986 Other intangibles 700 — — 700 Total indefinite-lived intangibles $ 225,364 $ — $ — $ 225,364 |
Summary of the changes in other amortizable intangible assets | A summary of the changes in the Company’s other amortizable intangible assets for the six months ended June 30, 2020 is as follows (amounts in thousands) Net Balance at Net Balance at December 31, 2019 Additions Amortization June 30, 2020 Affiliate relationships $ 14,352 $ — $ (2,994) $ 11,358 Advertiser relationships 138 — (138) — Non-compete agreement 826 — (317) 509 Other intangibles 68 — (35) 33 Programming contracts 517 — (45) 472 Total finite-lived intangibles $ 15,901 $ — $ (3,529) $ 12,372 |
Schedule of future estimated amortization expense | Future estimated amortization expense is as follows (amounts in thousands): Year Ending December 31, Amount Remainder of 2020 $ 3,239 2021 6,424 2022 1,766 2023 328 2024 and thereafter 615 Total $ 12,372 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments | |
Schedule of financial data of equity method investments | The Company records the income or loss on investments on a one quarter lag. Summary unaudited financial data for our equity investments in the aggregate as of and for the six months ended March 31, 2020 are included below (amounts in thousands): Total Equity Investees Current assets $ 51,440 Non-current assets $ 23,920 Current liabilities $ 104,825 Non-current liabilities $ 23,158 Net revenue $ 23,785 Operating loss $ (20,438) Net loss $ (34,119) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Long-Term Debt | |
Schedule of long-term debt | Long-term debt as of June 30, 2020 and December 31, 2019 consists of the following (amounts in thousands) June 30, 2020 December 31, 2019 Senior Notes due February 2024 $ 203,765 $ 204,540 Less: Current portion 2,134 2,134 $ 201,631 $ 202,406 |
Schedule of maturities of long-term debt | The following are the maturities of our long-term debt as of June 30, 2020 ( amounts in thousands Year Ending December 31, Amount Remainder of 2020 $ 1,067 2021 2,134 2022 2,134 2023 2,134 2024 198,411 Total $ 205,880 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements | |
Schedule of assets and liabilities that are measured at fair value on a recurring basis | The following table presents our assets and liabilities measured at fair value on a recurring basis and the levels of inputs used to measure fair value, which include derivatives designated as cash flow hedging instruments, as well as their location on our accompanying Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 ( amounts in thousands Estimated Fair Value June 30, 2020 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Cash flow hedges: Interest rate swap Other long-term liabilities — $ 3,128 — $ 3,128 Estimated Fair Value December 31, 2019 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Cash flow hedges: Interest rate swap Other long-term liabilities — $ 804 — $ 804 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity | |
Summary of stock option activity | The following table summarizes stock option activity for the six months ended June 30, 2020 (shares and intrinsic value in thousands) Weighted- Weighted-average average remaining contractual Aggregate intrinsic Number of shares exercise price term value Outstanding at December 31, 2019 3,855 $ 11.72 6.1 $ 12,101 Granted 25 9.29 6.0 — Exercised — — — — Forfeited — — — — Expired — — — — Outstanding at June 30, 2020 3,880 $ 11.66 5.6 $ 46 Vested at June 30, 2020 3,102 $ 11.56 4.7 $ 32 Exercisable at June 30, 2020 3,102 $ 11.56 4.7 $ 32 |
Summary of restricted share activity | The following table summarizes restricted share activity for the six months ended June 30, 2020 ( shares in thousands Weighted-average Number of shares grant date fair value Outstanding at December 31, 2019 592 $ 12.32 Granted 118 9.29 Vested (237) 12.75 Forfeited — — Outstanding at June 30, 2020 473 $ 11.34 |
Time Based Stock Option | Black Scholes Pricing Model | |
Stockholders' Equity | |
Schedule of valuation assumptions | Six Months Ended Year Ended Black-Scholes Option Valuation Assumptions June 30, 2020 December 31, 2019 Risk-free interest rate 0.4 % 1.6 % Dividend yield — — Volatility 44.2 % 40.3 % Weighted-average expected term (years) 6.0 6.0 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases | |
Summary of the classification of operating leases | A summary of the classification of operating leases on our Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 ( amounts in thousands June 30, December 31, 2020 2019 Operating lease right-of-use assets $ 1,567 $ 1,833 Operating lease liability, current (Other accrued expenses) 520 538 Operating lease liability, non-current (Other long-term liabilities) $ 1,330 $ 1,574 |
Schedule of components of lease cost | Components of lease cost reflected in our Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2020 and 2019 amounts in thousands Three months ended June 30, 2020 2019 Operating lease cost $ 152 $ 161 Short-term lease cost 12 61 Total lease cost $ 164 $ 222 Six months ended June 30, 2020 2019 Operating lease cost $ 320 $ 316 Short-term lease cost 85 110 Total lease cost $ 405 $ 426 |
Schedule of lease term and discount rate | A summary of weighted-average remaining lease term and weighted-average discount rate as of June 30, 2020: Weighted-average remaining lease term 3.8 years Weighted average discount rate 6.9 % |
Schedule of supplemental cash flow and other non-cash information | Supplemental cash flow and other non-cash information for the six months ended June 30, 2020 and 2019 ( amounts in thousands Six months ended June 30, 2020 2019 Operating cash flows from operating leases $ 288 $ 269 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities — 393 |
Schedule of Future annual minimum lease commitments | Future annual minimum lease commitments as of June 30, 2020 were as follows ( amounts in thousands June 30, 2020 Remainder of 2020 $ 337 2021 591 2022 473 2023 388 2024 328 Total minimum payments $ 2,117 Less: amount representing interest (267) Lease liability $ 1,850 |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments | |
Future minimum payments for other commitments, primarily programming | Future minimum payments as of June 30, 2020, are as follows (amounts in thousands) June 30, 2020 Remainder of 2020 $ 8,119 2021 5,280 2022 1,779 2023 419 2024 and thereafter 232 Total $ 15,829 |
Nature of Business (Details)
Nature of Business (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator for loss per common share calculation: | ||||
Net loss attributable to Hemisphere Media Group, Inc. | $ (6,682) | $ (2,358) | $ (16,110) | $ (4,044) |
Denominator for loss per common share calculation: | ||||
Weighted-average common shares, basic | 39,444 | 39,164 | 39,378 | 39,098 |
Effect of dilutive securities | ||||
Weighted-average common shares, diluted | 39,444 | 39,164 | 39,378 | 39,098 |
Loss per share attributable to Hemisphere Media Group, Inc. | ||||
Basic (in dollars per share) | $ (0.17) | $ (0.06) | $ (0.41) | $ (0.10) |
Diluted (in dollars per share) | $ (0.17) | $ (0.06) | $ (0.41) | $ (0.10) |
Shares excluded from the computation of diluted loss per common share | 3,900 | 900 | 2,800 | 1,000 |
Outstanding awards excluded from computation of diluted loss per share | 0 | 500 | 300 | 500 |
Snap Media | ||||
Nature of business | ||||
Ownership Percentage | 75.00% | 75.00% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Total revenue | $ 34,735 | $ 39,147 | $ 67,144 | $ 74,257 |
Affiliate revenue | ||||
Revenues | ||||
Total revenue | $ 19,273 | 21,537 | $ 39,106 | 42,886 |
Affiliate revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-30 | ||||
Revenues | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 60 days | 60 days | ||
Advertising revenue | ||||
Revenues | ||||
Total revenue | $ 12,378 | 15,699 | $ 24,194 | 28,845 |
Advertising revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-30 | ||||
Revenues | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 30 days | 30 days | ||
Other revenue | ||||
Revenues | ||||
Total revenue | $ 3,084 | $ 1,911 | $ 3,844 | $ 2,526 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)item | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
MVS Multivision Digital Sde RLde CV and Affiliates | Satellite and Support Services Agreement | Cinelatino | |||||
Related party transactions | |||||
Number of channel feeds delivered through satellite | item | 2 | ||||
Total expense | $ 0.6 | $ 0.7 | $ 1.3 | $ 1.3 | |
Due to related parties | 1.1 | 1.1 | $ 0.7 | ||
MVS Multivision Digital Sde RLde CV and Affiliates | Affiliation Agreement | |||||
Related party transactions | |||||
Revenue recognized from related party | 0.3 | 0.5 | 0.6 | 0.9 | |
Due from related parties | 0.4 | $ 0.4 | 0.3 | ||
MVS Multivision Digital Sde RLde CV and Affiliates | Master License Agreement | Cinelatino | |||||
Related party transactions | |||||
Distribution fee as a percentage of revenue earned | 13.50% | ||||
Revenue recognized from related party | 0.2 | 0.3 | $ 0.4 | 0.6 | |
Due from related parties | 0.5 | 0.5 | 0.7 | ||
Director | Consulting Agreement with Director | |||||
Related party transactions | |||||
Total expense | 0.1 | 0.1 | 0.2 | 0.2 | |
Due to related parties | 0 | 0 | 0 | ||
Pantelion Films | Movie License Agreement | |||||
Related party transactions | |||||
Total expense | 0.2 | $ 0.1 | 0.5 | $ 0.1 | |
Programming rights payable | $ 2.4 | $ 2.4 | $ 1.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill and intangible assets | ||
Broadcast license | $ 41,356 | $ 41,356 |
Goodwill | 167,322 | 167,322 |
Other intangibles | 29,058 | 32,587 |
Total intangible assets | $ 237,736 | $ 241,265 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Indefinite Lived Net Balance (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Changes in the goodwill | |
Net balance at the beginning of the period | $ 167,322 |
Net balance at the end of the period | 167,322 |
Changes in the goodwill and other indefinite lived intangible assets, on a net basis | |
Net balance at the beginning of the period | 225,364 |
Net balance at the end of the period | 225,364 |
Broadcast license | |
Changes in other indefinite-lived intangible assets | |
Net balance at the beginning of the period | 41,356 |
Net balance at the end of the period | 41,356 |
Goodwill | |
Changes in the goodwill | |
Net balance at the beginning of the period | 167,322 |
Net balance at the end of the period | 167,322 |
Brands | |
Changes in other indefinite-lived intangible assets | |
Net balance at the beginning of the period | 15,986 |
Net balance at the end of the period | 15,986 |
Other intangibles | |
Changes in other indefinite-lived intangible assets | |
Net balance at the beginning of the period | 700 |
Net balance at the end of the period | $ 700 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Other Amortizable Intangible (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | |
Changes in other amortizable intangible assets | |||||
Net balance at the beginning of the period | $ 15,901 | ||||
Amortization | $ (1,600) | $ (1,800) | (3,529) | $ (5,100) | |
Net balance at the end of the period | 12,372 | 12,372 | |||
Future estimated amortization expense | |||||
Remainder of 2020 | $ 3,239 | ||||
2021 | 6,424 | ||||
2022 | 1,766 | ||||
2023 | 328 | ||||
2024 and thereafter | 615 | ||||
Total | 12,372 | $ 12,372 | 12,372 | ||
Weighted Average | |||||
Changes in other amortizable intangible assets | |||||
Remaining amortization period | 2 years 3 months 18 days | ||||
Affiliate relationships | |||||
Changes in other amortizable intangible assets | |||||
Net balance at the beginning of the period | $ 14,352 | ||||
Amortization | (2,994) | ||||
Net balance at the end of the period | 11,358 | 11,358 | |||
Future estimated amortization expense | |||||
Total | 11,358 | 11,358 | 11,358 | ||
Advertiser relationships | |||||
Changes in other amortizable intangible assets | |||||
Net balance at the beginning of the period | 138 | ||||
Amortization | (138) | ||||
Future estimated amortization expense | |||||
Total | 138 | ||||
Non-compete agreement | |||||
Changes in other amortizable intangible assets | |||||
Net balance at the beginning of the period | 826 | ||||
Amortization | (317) | ||||
Net balance at the end of the period | 509 | 509 | |||
Future estimated amortization expense | |||||
Total | 509 | 509 | 509 | ||
Other intangibles | |||||
Changes in other amortizable intangible assets | |||||
Net balance at the beginning of the period | 68 | ||||
Amortization | (35) | ||||
Net balance at the end of the period | 33 | 33 | |||
Future estimated amortization expense | |||||
Total | 33 | 33 | 33 | ||
Programming contracts | |||||
Changes in other amortizable intangible assets | |||||
Net balance at the beginning of the period | 517 | ||||
Amortization | (45) | ||||
Net balance at the end of the period | 472 | 472 | |||
Future estimated amortization expense | |||||
Total | $ 472 | $ 472 | $ 472 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) | Nov. 30, 2016 | Jul. 31, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Nov. 26, 2018 | Feb. 07, 2018 | Apr. 28, 2017 | Nov. 03, 2016 |
Equity method investments | |||||||||||||
Amount funded during the period | $ 6,449,000 | $ 21,931,000 | |||||||||||
Equity method investments | $ 31,917,000 | 31,917,000 | $ 49,639,000 | ||||||||||
Income (loss) on equity method investments | 10,189,000 | $ 9,784,000 | 17,208,000 | 17,160,000 | |||||||||
Net balance of investee losses in excess of investment | 1,484,000 | ||||||||||||
Non-cash impairment charge | 5,479,000 | ||||||||||||
Other assets | 4,487,000 | 4,487,000 | 3,979,000 | ||||||||||
PANTAYA | |||||||||||||
Equity method investments | |||||||||||||
Ownership Percentage | 25.00% | ||||||||||||
Amount funded during the period | $ 1,500,000 | ||||||||||||
Equity method investments | $ 10,000,000 | ||||||||||||
Excess of Company's contractual funding commitment | $ 10,000,000 | ||||||||||||
Maximum exposure to loss | $ 10,000,000 | ||||||||||||
Income (loss) on equity method investments | 0 | 0 | 0 | 300,000 | |||||||||
Net balance of investee losses in excess of investment | 0 | 0 | 1,500,000 | ||||||||||
Accounts receivable and other assets | 3,400,000 | 3,400,000 | 3,900,000 | ||||||||||
Canal 1 | |||||||||||||
Equity method investments | |||||||||||||
Equity method investments | 116,600,000 | 116,600,000 | |||||||||||
Income (loss) on equity method investments | 10,200,000 | 9,900,000 | $ 17,000,000 | 16,900,000 | |||||||||
Percentage of losses recorded | 100.00% | ||||||||||||
Net equity method investments | 32,000,000 | $ 32,000,000 | 44,200,000 | ||||||||||
Other assets | 2,400,000 | $ 2,400,000 | 2,000,000 | ||||||||||
Colombian content producers, Radio television and NTC Nacional | Television broadcast license | |||||||||||||
Equity method investments | |||||||||||||
License life (in years) | 10 years | 20 years | |||||||||||
Additional consideration for the extended license period | $ 0 | ||||||||||||
Additional renewable period for license (in years) | 10 years | ||||||||||||
Colombian content producers, Radio television and NTC Nacional | Television broadcast license | Minimum | |||||||||||||
Equity method investments | |||||||||||||
Ownership Percentage | 20.00% | ||||||||||||
Colombian content producers, Radio television and NTC Nacional | Television broadcast license | Maximum | |||||||||||||
Equity method investments | |||||||||||||
Ownership Percentage | 40.00% | ||||||||||||
REMEZCLA | |||||||||||||
Equity method investments | |||||||||||||
Ownership Percentage | 25.50% | ||||||||||||
Equity method investments | $ 5,000,000 | ||||||||||||
Income (loss) on equity method investments | 200,000 | ||||||||||||
Net equity method investments | 0 | $ 0 | 5,500,000 | ||||||||||
Non-cash impairment charge | 5,500,000 | ||||||||||||
Snap Media | |||||||||||||
Equity method investments | |||||||||||||
Ownership Percentage | 75.00% | ||||||||||||
Snap JV | |||||||||||||
Equity method investments | |||||||||||||
Equity method investments | 400,000 | 400,000 | |||||||||||
Income (loss) on equity method investments | 0 | $ 0 | 200,000 | $ 100,000 | |||||||||
Net equity method investments | $ 100,000 | $ 100,000 | $ 0 | ||||||||||
Snap JV | Snap Media | |||||||||||||
Equity method investments | |||||||||||||
Ownership Percentage | 50.00% |
Equity Method Investments - Sum
Equity Method Investments - Summarized unaudited financial data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Summary financial information of equity method investments | ||||||
Current assets | $ 156,385 | $ 156,385 | $ 145,740 | |||
Current liabilities | 36,475 | 36,475 | $ 34,187 | |||
Net revenues | 34,735 | $ 39,147 | 67,144 | $ 74,257 | ||
Operating loss | 8,964 | 14,084 | 13,030 | 25,243 | ||
Net loss | $ (6,605) | $ (2,348) | $ (16,148) | $ (4,081) | ||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Summary financial information of equity method investments | ||||||
Current assets | $ 51,440 | |||||
Non-current assets | 23,920 | |||||
Current liabilities | 104,825 | |||||
Non-current liabilities | 23,158 | |||||
Net revenues | 23,785 | |||||
Operating loss | (20,438) | |||||
Net loss | $ (34,119) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective tax rates reconciliation | ||||||
Statutory federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% | 35.00% | ||
Annual income tax rate (as a percent) | 35.70% | 33.10% | ||||
Effective tax rate relates to excess foreign tax credits | 9.40% | |||||
Annual effective rate relates to the required valuation allowance (as a percent) | 9.40% | |||||
Income tax expense | $ 2,884 | $ 3,643 | $ 1,209 | $ 6,199 | ||
U.S. | ||||||
Effective tax rates reconciliation | ||||||
Annual income tax rate (as a percent) | 26.30% |
Long-Term Debt (Details)
Long-Term Debt (Details) $ in Thousands | Feb. 14, 2017USD ($)item | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)item |
Long-term debt | |||
Less: Current portion | $ 2,134 | $ 2,134 | |
Long-term debt less current portion | 201,631 | 202,406 | |
Maturities of long-term debt | |||
Remainder of 2020 | 1,067 | ||
2021 | 2,134 | ||
2022 | 2,134 | ||
2023 | 2,134 | ||
2024 | 198,411 | ||
Total | 205,880 | ||
Senior Notes due February 2024 | |||
Long-term debt | |||
Long-term Debt | $ 203,765 | $ 204,540 | |
Second Amended Term Loan Facility | |||
Long-term debt | |||
Amount of term loan | $ 213,300 | ||
Uncommitted accordion option multiplier of net leverage ratio | item | 2.2 | ||
Amortization payments (in percentage) | 1.00% | ||
Maximum period after each fiscal year for prepayment of debt | 90 days | ||
First prepayment of debt as a percentage of excess cash flow, if lower leverage ratio is maintained | 0.00% | ||
Original issue discount | $ 1,200 | ||
Accumulated amortization of original issue discount | 2,300 | ||
Deferred financing costs | 900 | ||
Accumulated amortization | $ 2,400 | ||
Second Amended Term Loan Facility | First Lien and Total Net Leverage Ratio | |||
Long-term debt | |||
Debt caps amount | $ 60,000 | ||
Second Amended Term Loan Facility | LIBOR | |||
Long-term debt | |||
Interest rate margin (as a percent) | 3.50% | ||
Second Amended Term Loan Facility | Alternate Base Rate (ABR) | |||
Long-term debt | |||
Interest rate margin (as a percent) | 2.50% | ||
Amended Term Loan Facility | |||
Long-term debt | |||
Borrowing capacity | $ 30,000 | ||
Amended Term Loan Facility | First Lien Net Leverage Ratio | |||
Long-term debt | |||
Number of consecutive fiscal quarters | item | 4 | ||
Uncommitted accordion option multiplier of net leverage ratio | item | 4 | ||
Amended Term Loan Facility | Total Net Leverage Ratio | |||
Long-term debt | |||
Number of consecutive fiscal quarters | item | 4 | ||
Uncommitted accordion option multiplier of net leverage ratio | item | 6 | ||
Existing Senior Secured Term Loan B Facility | |||
Long-term debt | |||
Uncommitted accordion option base amount | $ 65,000 | ||
Prepayment of debt as a percentage of excess cash flow | 50.00% | ||
First prepayment of debt as a percentage of excess cash flow, if lower leverage ratio is maintained | 25.00% | ||
Second prepayment of debt as a percentage of excess cash flow, if lower leverage ratio is maintained | 0.00% |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | May 04, 2017 | |
Derivative | ||||||
Net change in fair value of cash flow hedge | $ 0.1 | $ (1.5) | $ (2.3) | $ (2.4) | ||
Loss or gain in fair value | 0 | 0 | 0 | 0 | ||
Interest Rate Swap | ||||||
Derivative | ||||||
Net interest income (expense) | (0.4) | $ 0.1 | (0.4) | $ 0.3 | ||
Derivative liability - Interest rate swap | $ 3.1 | $ 3.1 | $ 0.8 | |||
LIBOR | Nondesignated | Interest Rate Swap | ||||||
Derivative | ||||||
Notional amount | $ 100 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Nonrecurring | ||
Fair Value Measurements | ||
Assets fair value | $ 0 | |
Liabilities fair value | 0 | |
Cash flow hedges | Other long-term liabilities | Fair value, Recurring | ||
Fair Value Measurements | ||
Derivative liability - Interest rate swap | 3,128 | $ 804 |
Cash flow hedges | Other long-term liabilities | Level 2 | Fair value, Recurring | ||
Fair Value Measurements | ||
Derivative liability - Interest rate swap | $ 3,128 | $ 804 |
Stockholders' Equity - Capital
Stockholders' Equity - Capital Stock (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Aug. 15, 2018 |
Common Class B | |||
Capital Stock | |||
Common stock, shares issued | 19,720,381 | 19,720,381 | |
Common stock, shares outstanding | 19,720,381 | ||
Common Class A | |||
Capital Stock | |||
Common stock, shares issued excluding treasury shares | 20,241,173 | ||
Common stock, shares issued | 25,439,375 | 25,202,314 | |
Common stock, shares outstanding | 20,241,173 | ||
Common Class A | Maximum | |||
Capital Stock | |||
Authorized repurchase amount | $ 25 |
Stockholders' Equity - Other (D
Stockholders' Equity - Other (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($)item$ / sharesshares | Jun. 30, 2020USD ($)item$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)item$ / sharesshares | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | May 16, 2016shares | |
Stockholders' Equity | |||||||
Shares available for issuance | 1,200 | 1,200 | 1,200 | ||||
Stock option and restricted stock | |||||||
Stock-based compensation | |||||||
Stock-based compensation expense (in dollars) | $ | $ 1,400 | $ 400 | $ 2,600 | $ 1,400 | |||
Stock options | |||||||
Stock-based compensation | |||||||
Unrecognized compensation cost related to unvested stock options (in dollars) | $ | $ 3,300 | $ 3,300 | $ 3,300 | ||||
Weighted-average periods over which unrecognized compensation cost recognized | 1 year 8 months 12 days | ||||||
Estimated forfeitures (as a percent) | 1.50% | 1.50% | 1.50% | ||||
Valuation assumptions | |||||||
Dividend yield (as a percent) | 0.00% | ||||||
Number of shares | |||||||
Outstanding at the beginning of the period (in shares) | 3,855 | ||||||
Granted (in shares) | 25 | ||||||
Outstanding at the end of the period (in shares) | 3,880 | 3,880 | 3,880 | 3,855 | |||
Vested at the end of the period (in shares) | 3,102 | 3,102 | 3,102 | ||||
Exercisable at the end of the period (in shares) | 3,102 | 3,102 | 3,102 | ||||
Weighted-average exercise price | |||||||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 11.72 | ||||||
Granted (in dollars per share) | $ / shares | 9.29 | ||||||
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 11.66 | $ 11.66 | 11.66 | $ 11.72 | |||
Vested at the end of the period (in dollars per share) | $ / shares | 11.56 | 11.56 | 11.56 | ||||
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 11.56 | $ 11.56 | $ 11.56 | ||||
Weighted-average remaining contractual term | |||||||
Outstanding | 5 years 7 months 6 days | 6 years 1 month 6 days | |||||
Granted | 6 years | ||||||
Vested at the end of the period | 4 years 8 months 12 days | ||||||
Exercisable at the end of the period | 4 years 8 months 12 days | ||||||
Aggregate intrinsic value | |||||||
Outstanding at the beginning of the period (in dollars) | $ | $ 12,101 | ||||||
Outstanding at the end of the period (in dollars) | $ | $ 46 | $ 46 | 46 | $ 12,101 | |||
Vested at the end of the period (in dollars) | $ | 32 | 32 | 32 | ||||
Exercisable at the end of the period (in dollars) | $ | 32 | 32 | 32 | ||||
Restricted Stock | |||||||
Stock-based compensation | |||||||
Unrecognized compensation cost related to unvested restricted stock (in dollars) | $ | $ 4,600 | $ 4,600 | $ 4,600 | ||||
Weighted-average periods over which unrecognized compensation cost recognized | 1 year 7 months 6 days | ||||||
Number of shares | |||||||
Outstanding at the beginning of the period (in shares) | 592 | ||||||
Granted (in shares) | 118 | ||||||
Vested (in shares) | (237) | ||||||
Outstanding at the end of the period (in shares) | 473 | 473 | 473 | 592 | |||
Weighted-average grant date fair value | |||||||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 12.32 | ||||||
Granted (in dollars per share) | $ / shares | 9.29 | ||||||
Vested (in dollars per share) | $ / shares | 12.75 | ||||||
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 11.34 | $ 11.34 | $ 11.34 | $ 12.32 | |||
Time Based Restricted Stock Awards and Stock Option | |||||||
Stockholders' Equity | |||||||
Number of equal annual installments for vesting of awards | item | 3 | 3 | 3 | ||||
Time Based Stock Option | Black Scholes Pricing Model | |||||||
Valuation assumptions | |||||||
Risk-free interest rate (as a percent) | 0.40% | 1.60% | |||||
Volatility (as a percent) | 44.20% | 40.30% | |||||
Weighted-average expected term (years) | 6 years | 6 years | |||||
Time Based Restricted Stock | |||||||
Aggregate intrinsic value | |||||||
Vesting period | 3 years | ||||||
Common Class A | |||||||
Stockholders' Equity | |||||||
Shares authorized for issuance | 7,200 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases | |||||
Total lease cost | $ 164 | $ 222 | $ 405 | $ 426 | |
Classification of operating leases | |||||
Operating lease right-of-use assets | 1,567 | 1,567 | $ 1,833 | ||
Operating lease liability, current | $ 520 | $ 520 | 538 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current | |||
Operating Lease, Liability, Noncurrent | $ 1,330 | $ 1,330 | $ 1,574 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | |||
Lease cost | |||||
Operating lease cost | $ 152 | 161 | $ 320 | 316 | |
Short-term lease cost | 12 | 61 | 85 | 110 | |
Total lease cost | $ 164 | $ 222 | $ 405 | 426 | |
Lease Term and Discount Rate | |||||
Weighted average remaining lease term | 3 years 9 months 18 days | 3 years 9 months 18 days | |||
Weighted average discount rate | 6.90% | 6.90% | |||
Cash paid for amounts included in the measurement of lease liabilities | |||||
Operating cash flows from operating leases | $ 288 | 269 | |||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 393 | ||||
Minimum | |||||
Leases | |||||
Initial lease term | 1 year | 1 year | |||
Maximum | |||||
Leases | |||||
Initial lease term | 7 years | 7 years |
Leases - Maturity Analysis (Det
Leases - Maturity Analysis (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Future minimum lease commitments | |
Remainder of 2020 | $ 337 |
2021 | 591 |
2022 | 473 |
2023 | 388 |
2024 | 328 |
Total minimum payments | 2,117 |
Less: amount representing interest | (267) |
Lease liability | $ 1,850 |
Commitments (Details)
Commitments (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Future minimum payments for other commitments | |
Remainder of 2020 | $ 8,119 |
2021 | 5,280 |
2022 | 1,779 |
2023 | 419 |
2024 and thereafter | 232 |
Total | $ 15,829 |