Exhibit 99.2
Hoak Media, LLC and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31, 2014 | December 31, | |||||||
(Unaudited) | ||||||||
| ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 3,032,660 | $ | 3,778,402 | ||||
Accounts receivable, net of allowance fordoubtful accounts of $293,011 and $288,516as of March 31, 2014 and December 31, 2013, respectively | 13,412,805 | 14,938,806 | ||||||
Prepaid expenses and other current assets | 367,989 | 440,173 | ||||||
Income tax receivable | 136,750 | 8,112 | ||||||
Deferred income taxes, net | 21,301 | 19,417 | ||||||
Assets of discontinued operations | 1,259,525 | 1,331,478 | ||||||
Total current assets | 18,231,030 | 20,516,388 | ||||||
PROPERTY AND EQUIPMENT, at cost | ||||||||
Land | 3,259,972 | 3,259,972 | ||||||
Buildings and improvements | 11,026,273 | 10,966,461 | ||||||
Towers | 12,306,589 | 12,287,084 | ||||||
Transmitters and antennas | 18,865,556 | 18,776,438 | ||||||
Broadcast equipment | 31,382,110 | 30,672,148 | ||||||
Other | 5,185,986 | 5,168,169 | ||||||
| 82,026,486 | 81,130,272 | ||||||
Accumulated depreciation | (54,500,711 | ) | (53,202,042 | ) | ||||
PROPERTY AND EQUIPMENT, net | 27,525,775 | 27,928,230 | ||||||
INTANGIBLE ASSETS, net | 116,355,341 | 116,412,583 | ||||||
GOODWILL | 37,826,986 | 37,826,986 | ||||||
ASSETS OF DISCONTINUED OPERATIONS | 3,835,380 | 3,835,380 | ||||||
OTHER NONCURRENT ASSETS, net | 2,275,488 | 2,386,638 | ||||||
Total assets | $ | 206,050,000 | $ | 208,906,205 | ||||
Hoak Media, LLC and Subsidiaries
CONSOLIDATED BALANCE SHEETS - CONTINUED
March 31, 2014 | December 31, | |||||||
(Unaudited) | ||||||||
| LIABILITIES AND MEMBERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 499,188 | $ | 839,420 | ||||
Accrued liabilities | 4,585,794 | 5,104,692 | ||||||
Deferred revenue | 132,782 | 811,752 | ||||||
Current portion of notes payable | 13,000,000 | 13,000,000 | ||||||
Accrued interest | 103,069 | 121,674 | ||||||
Accrued income taxes | 43,691 | - | ||||||
Liabilities of discontinued operations | 1,846,202 | 2,064,620 | ||||||
Total current liabilities | 20,210,726 | 21,942,158 | ||||||
NOTES PAYABLE, net of current portion | 131,169,441 | 136,946,294 | ||||||
DEFERRED INCOME TAXES, net | 14,951,097 | 15,011,373 | ||||||
LIABILITIES OF DISCONTINUED OPERATIONS | 6,379,321 | 6,379,321 | ||||||
Total liabilities | 172,710,585 | 180,279,146 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
MEMBERS’ EQUITY | ||||||||
Members’ interests | 40,247,186 | 35,539,054 | ||||||
Noncontrolling interest | (6,907,771 | ) | (6,911,995 | ) | ||||
Total members’ equity | 33,339,415 | 28,627,059 | ||||||
Total liabilities and members’ equity | $ | 206,050,000 | $ | 208,906,205 | ||||
Hoak Media, LLC and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
Gross revenue | ||||||||
Local and regional advertising | $ | 12,540,664 | $ | 12,348,730 | ||||
National advertising | 3,383,951 | 3,415,643 | ||||||
Political advertising | 642,992 | 87,267 | ||||||
Barter and other revenue | 7,280,675 | 6,162,656 | ||||||
Gross revenue | 23,848,282 | 22,014,296 | ||||||
Commissions | ||||||||
Agency commissions | 1,792,056 | 1,762,652 | ||||||
National representative commissions | 211,635 | 182,396 | ||||||
Total commissions | 2,003,691 | 1,945,048 | ||||||
Net revenue | 21,844,591 | 20,069,248 | ||||||
Operating expenses | ||||||||
Program and production | 3,080,654 | 2,808,780 | ||||||
News | 2,353,443 | 2,137,578 | ||||||
Technical | 896,834 | 810,677 | ||||||
Sales and promotion | 2,048,169 | 1,999,315 | ||||||
General and administrative | 3,294,927 | 3,223,088 | ||||||
Depreciation and amortization | 1,355,930 | 1,531,576 | ||||||
Barter and other operating expenses | 705,760 | 713,344 | ||||||
Total operating expenses | 13,735,717 | 13,224,358 | ||||||
Operating income | 8,108,874 | 6,844,890 | ||||||
Interest expense, net | (1,697,175 | ) | (1,074,396 | ) | ||||
Other income (expense), net | 2,590 | (21,271 | ) | |||||
Income from continuing operationsbefore income taxes | 6,414,289 | 5,749,223 | ||||||
Income tax expense | (152,893 | ) | (431,230 | ) | ||||
Income from continuing operations | 6,261,396 | 5,317,993 | ||||||
Income from discontinued operations | 145,485 | 67,628 | ||||||
Net income | 6,406,881 | 5,385,621 | ||||||
Less: Net income (loss) attributable to noncontrolling interest | 42 | (23,042 | ) | |||||
Net income attributable to Hoak Media, LLC | $ | 6,406,839 | $ | 5,408,663 | ||||
Hoak Media, LLC and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31,
2014 | 2013 | |||||||
| (Unaudited) | ||||||||
Cash flows from operating activities | ||||||||
Net income | $ | 6,406,881 | $ | 5,385,621 | ||||
Net income from discontinued operations | (145,485 | ) | (67,628 | ) | ||||
Net income from continuing operations | 6,261,396 | 5,317,993 | ||||||
Adjustments to reconcile net income to net cashprovided by operating activities | ||||||||
Depreciation and amortization | 1,355,930 | 1,531,576 | ||||||
Bad debt expense | 28,895 | 12,215 | ||||||
(Excess) deficit of barter revenue over barter expense | (22,372 | ) | 6,851 | |||||
Noncash compensation | 108,579 | 178,917 | ||||||
Loss (gain) on sale of assets | (2,621 | ) | 21,269 | |||||
Amortization of deferred financing costs | 135,156 | 116,691 | ||||||
Deferred income taxes | (62,160 | ) | 79,880 | |||||
Net changes in current assets and liabilities | ||||||||
Accounts receivable, net | 1,519,478 | 239,488 | ||||||
Prepaid expenses and other current assets | 72,184 | (54,668 | ) | |||||
Income tax receivable | (84,947 | ) | 1,350 | |||||
Accounts payable | (341,222 | ) | (660,883 | ) | ||||
Accrued liabilities | (537,493 | ) | (129,763 | ) | ||||
Deferred revenue | (678,970 | ) | (680,039 | ) | ||||
Net cash provided by operating activities,continuing operations | 7,751,833 | 5,980,877 | ||||||
Net cash (used in) operating activities,discontinued operations | (108,671 | ) | (81,756 | ) | ||||
Net cash provided by operating activities | 7,643,162 | 5,899,121 | ||||||
Cash flows from investing activities | ||||||||
Additions to property and equipment | (897,817 | ) | (1,142,849 | ) | ||||
Proceeds from sale of assets | 4,205 | 7,208 | ||||||
Net cash used in investing activities, continuingoperations | (893,612 | ) | (1,135,641 | ) | ||||
Net cash provided by investingactivities, discontinued operations | - | - | ||||||
Net cash used in investing activities | (893,612 | ) | (1,135,641 | ) | ||||
Hoak Media, LLC and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
Three Months Ended March 31,
2014 | 2013 | |||||||
| (Unaudited) | ||||||||
Cash flows from financing activities | ||||||||
Distributions | $ | (1,803,104 | ) | $ | (2,973,391 | ) | ||
Deferred financing costs | (24,006 | ) | - | |||||
Repayment of note payable | (5,776,853 | ) | (3,500,000 | ) | ||||
Net cash used in financing activities,continuing operations | (7,603,963 | ) | (6,473,391 | ) | ||||
Net cash provided by financing activities,discontinued operations | - | - | ||||||
Net cash used in financing activities | (7,603,963 | ) | (6,473,391 | ) | ||||
Net decrease in cash | (854,413 | ) | (1,709,911 | ) | ||||
Cash at beginning of year, continuing and discontinued operations | 3,985,861 | 4,107,980 | ||||||
Cash at end of year, continuing operations | $ | 3,032,660 | $ | 2,330,591 | ||||
Cash at end of year, discontinued operations | $ | 98,788 | $ | 67,478 | ||||
Supplemental cash flow information | ||||||||
Interest paid | $ | 1,630,638 | $ | 976,114 | ||||
Taxes paid | $ | 300,000 | $ | 350,000 | ||||
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