Mediaco Holding Inc 10-Q for FY2021 Q3

Mediaco Holding Inc. (MDIA)

10-Q 2021-11-12 For: 2021-09-30

Added on April 11, 2026

About this 10-Q

Mediaco Holding Inc filed this 10-Q on November 12, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $17.82M; up 90.4% from $9.36M a year earlier
Net loss: $1.19M; compared with a net loss of $2.99M a year earlier

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Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock, $0.01 par value	MDIA	Nasdaq Capital Market

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☒

		Emerging growth company	☒


3,085,909		Shares of Class A Common Stock, $.01 Par Value
5,413,197		Shares of Class B Common Stock, $.01 Par Value
—		Shares of Class C Common Stock, $.01 Par Value


	Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements	3
Condensed Consolidated Statements of Operations for the three-month and nine-month periods ended September 30, 2020 and 2021	3
Condensed Consolidated Balance Sheets as of December 31, 2020 and September 30, 2021	4
Condensed Consolidated Statement of Changes in Equity (Deficit) for the three-month and nine-month periods ended September 30, 2020 and 2021	5
Condensed Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2020 and 2021	6
Notes to Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3. Quantitative and Qualitative Disclosures about Market Risk	27
Item 4. Controls and Procedures	27
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	27
Item 5. Other Information	27
Item 6. Exhibits	28
Signatures	29

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2021			2020			2021
NET REVENUES	$	9,360		$	17,820		$	28,141		$	41,939
OPERATING EXPENSES:
Operating expenses excluding depreciation and amortization expense		7,752			12,540			23,615			28,119
Corporate expenses		1,214			2,422			3,311			5,908
Depreciation and amortization		896			1,068			3,086			3,027
Loss (gain) on disposal of assets		103			—			185			(78	)
Total operating expenses		9,965			16,030			30,197			36,976
OPERATING (LOSS) INCOME		(605	)		1,790			(2,056	)		4,963
OTHER EXPENSE:
Interest expense		(2,411	)		(2,895	)		(6,928	)		(8,134	)
Loss on debt extinguishment		—			—			—			(81	)
LOSS BEFORE INCOME TAXES		(3,016	)		(1,105	)		(8,984	)		(3,252	)
(BENEFIT) PROVISION FOR INCOME TAXES		(22	)		83			13,854			246
CONSOLIDATED NET LOSS		(2,994	)		(1,188	)		(22,838	)		(3,498	)
PREFERRED STOCK DIVIDENDS		534			709			1,591			2,012
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(3,528	)	$	(1,897	)	$	(24,429	)	$	(5,510	)

Basic and diluted loss per share attributable to common shareholders	$	(0.50	)	$	(0.26	)	$	(3.44	)	$	(0.77	)
Basic and diluted weighted average number of common shares outstanding		7,096			7,201			7,110			7,168

	December 31, 2020			September 30, 2021
				(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	4,171		$	7,395
Accounts receivable, net		8,508			14,504
Prepaid expenses		1,247			1,257
Other current assets		1,274			686
Total current assets		15,200			23,842
PROPERTY AND EQUIPMENT, NET		27,650			27,059
INTANGIBLE ASSETS, NET		79,217			78,271
OTHER ASSETS:
Operating lease right of use assets		23,953			22,197
Deposits and other		331			312
Total other assets		24,284			22,509
Total assets	$	146,351		$	151,681
LIABILITIES AND DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	2,557		$	5,629
Current maturities of long-term debt		1,836			1,836
Accrued salaries and commissions		709			761
Deferred revenue		1,535			1,967
Operating lease liabilities		3,573			4,220
Other current liabilities		549			3,552
Total current liabilities		10,759			17,965
LONG TERM DEBT, NET OF CURRENT		93,918			95,339
OPERATING LEASE LIABILITIES, NET OF CURRENT		20,176			17,593
ASSET RETIREMENT OBLIGATIONS		6,316			6,924
DEFERRED INCOME TAXES		1,711			1,957
OTHER NONCURRENT LIABILITIES		221			108
Total liabilities		133,101			139,886
COMMITMENTS AND CONTINGENCIES
SERIES A CUMULATIVE CONVERTIBLE PARTICIPATING PREFERRED STOCK, $0.01 PAR VALUE, 10,000,000 SHARES AUTHORIZED; 220,000 SHARES ISSUED AND OUTSTANDING		24,258			26,270
DEFICIT:
Class A common stock, $0.01 par value; authorized 170,000,000 shares; issued and outstanding 1,785,880 shares and 3,071,001 shares at December 31, 2020, and September 30, 2021, respectively		18			31
Class B common stock, $0.01 par value; authorized 50,000,000 shares; issued and outstanding 5,413,197 shares at December 31, 2020, and September 30, 2021		54			54
Class C common stock, $0.01 par value; authorized 30,000,000 shares; none issued		—			—
Additional paid-in capital		20,772			22,802
Accumulated deficit		(31,852	)		(37,362	)
Total deficit		(11,008	)		(14,475	)
Total liabilities and deficit	$	146,351		$	151,681

	Class A Common Stock				Class B Common Stock
	Shares		Amount		Shares		Amount		APIC		Accumulated Deficit			Total
BALANCE, DECEMBER 31, 2019		1,666,667	$	17		5,359,753	$	54	$	20,644	$	(2,951	)	$	17,764
Net loss		—		—		—		—		—		(1,485	)		(1,485	)
Adjustments related to distribution of common shares		16,596		—		53,444		—		—		—			—
Preferred stock dividends		—		—		—		—		—		(529	)		(529	)
BALANCE, MARCH 31, 2020		1,683,263	$	17		5,413,197	$	54	$	20,644	$	(4,965	)	$	15,750
Net loss		—		—		—		—		—		(18,359	)		(18,359	)
Preferred stock dividends		—		—		—		—		—		(528	)		(528	)
BALANCE, JUNE 30, 2020		1,683,263	$	17		5,413,197	$	54	$	20,644	$	(23,852	)	$	(3,137	)
Net loss		—		—		—		—		—		(2,994	)		(2,994	)
Issuance of class A to employees, officers and directors		102,617		1		—		—		43		—			44
Preferred stock dividends		—		—		—		—		—		(534	)		(534	)
BALANCE, SEPTEMBER 30, 2020		1,785,880	$	18		5,413,197	$	54	$	20,687	$	(27,380	)	$	(6,621	)

BALANCE, DECEMBER 31, 2020		1,785,880	$	18		5,413,197	$	54	$	20,772	$	(31,852	)	$	(11,008	)
Net loss		—		—		—		—		—		(3,253	)		(3,253	)
Issuance of class A to employees, officers and directors		651,670		6		—		—		464		—			470
Preferred stock dividends		—		—		—		—		—		(634	)		(634	)
BALANCE, MARCH 31, 2021		2,437,550	$	24		5,413,197	$	54	$	21,236	$	(35,739	)	$	(14,425	)
Net income		—		—		—		—		—		943			943
Issuance of class A to employees, officers and directors		390,794		4		—		—		595		—			599
Preferred stock dividends		—		—		—		—		—		(669	)		(669	)
BALANCE, JUNE 30, 2021		2,828,344	$	28		5,413,197	$	54	$	21,831	$	(35,465	)	$	(13,552	)
Net loss		—		—		—		—		—		(1,188	)		(1,188	)
Sale of class A common shares		19,701		—		—		—		180		—			180
Issuance of class A to employees, officers and directors		222,956		3		—		—		791		—			794
Preferred stock dividends		—		—		—		—		—		(709	)		(709	)
BALANCE, SEPTEMBER 30, 2021		3,071,001	$	31		5,413,197	$	54	$	22,802	$	(37,362	)	$	(14,475	)

	Nine Months Ended September 30,
	2020			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(22,838	)	$	(3,498	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities -
Loss on debt extinguishment		—			81
Depreciation and amortization		3,086			3,027
Amortization of debt discount		440			471
Noncash interest expense		—			280
Noncash lease expense		1,969			2,173
Provision for bad debts		538			40
Accretion of asset retirement obligation		566			526
Provision for deferred income taxes		13,856			246
Noncash compensation		44			2,360
Loss (gain) on sale of property and equipment		185			(78	)
Changes in assets and liabilities
Accounts receivable		3,318			(6,036	)
Prepaid expenses and other current assets		1,005			578
Other assets		138			(398	)
Accounts payable and accrued liabilities		(9,108	)		3,124
Deferred revenue		(138	)		432
Other liabilities		(266	)		849
Net cash (used in) provided by operating activities		(7,205	)		4,177
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(339	)		(1,428	)
Proceeds from the sale of property and equipment		—			146
Net cash used in investing activities		(339	)		(1,282	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of long-term debt		(1,837	)		(3,000	)
Proceeds from long-term debt		14,281			4,000
Payments for debt-related costs		(281	)		(354	)
Proceeds from issuance of class A common stock		—			180
Settlement of tax withholding obligations		—			(497	)
Net cash provided by financing activities		12,163			329
INCREASE IN CASH AND CASH EQUIVALENTS		4,619			3,224
CASH AND CASH EQUIVALENTS:
Beginning of period		2,083			4,171
End of period	$	6,702		$	7,395
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	$	4,732		$	4,626

	For the Three Months Ended September 30,
	2020								2021
	Net Loss			Shares		Net Loss Per Share			Net Loss			Shares		Net Loss Per Share
Basic and diluted net loss per common share:
Net loss	$	(2,994	)						$	(1,188	)
Less:
Preferred dividends		534								709
Net loss attributable to common shareholders	$	(3,528	)		7,096	$	(0.50	)	$	(1,897	)		7,201	$	(0.26	)

	For the Nine Months Ended September 30,
	2020								2021
	Net Loss			Shares		Net Loss Per Share			Net Loss			Shares		Net Loss Per Share
Basic and diluted net loss per common share:
Net loss	$	(22,838	)						$	(3,498	)
Less:
Preferred dividends		1,591								2,012
Net loss attributable to common shareholders	$	(24,429	)		7,110	$	(3.44	)	$	(5,510	)		7,168	$	(0.77	)

	Awards		Price
Grants outstanding, beginning of period		102,617	$	5.41
Granted		1,366,334		3.37
Vested		221,490		3.65
Forfeited		15,916		3.11
Grants outstanding, end of period		1,231,545		3.49

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2020		2021		2020		2021
Operating expenses, excluding depreciation and amortization	$	—	$	338	$	—	$	710
Corporate expenses		44		789		44		1,650
Share-based compensation expense	$	44	$	1,127	$	44	$	2,360

	As of December 31, 2020		As of September 30, 2021
Indefinite-lived intangible assets
FCC Licenses	$	63,266	$	63,266
Trade Name		733		733
Goodwill		13,102		13,102
Definite-lived intangible assets
Programming contract		220		—
Customer list		1,896		1,170
Total	$	79,217	$	78,271

	As of December 31, 2020						As of September 30, 2021
	(in 000's, except years)
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Useful Life (in years)
Programming agreement	$	2,154	$	1,934	$	220	$	2,154	$	2,154	$	—	—
Customer list		2,906		1,010		1,896		2,906		1,736		1,170	1.2

Year ending December 31,	Expected Amortization Expense
Remainder of 2021	$	243
2022		927

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2020		2021		2020		2021
	(In thousands)
Convertible Emmis promissory note		977		1,614		1,238		2,237
Convertible Standard General promissory notes		3,979		6,198		5,023		8,610
Series A convertible preferred stock		4,525		7,002		5,734		9,703
Restricted stock awards		20		915		8		861
Total anti-dilutive shares		9,501		15,729		12,003		21,411

	For the Three Months Ended September 30,										For the Nine Months Ended September 30,
	2020		% of Total			2021		% of Total			2020		% of Total			2021		% of Total
Revenue by Source:
Radio Advertising	$	4,633		49.5	%	$	8,073		45.3	%	$	13,641		48.5	%	$	21,941		52.3	%
Outdoor Advertising ⁽¹⁾		2,957		31.6	%		3,197		17.9	%		9,254		32.9	%		9,407		22.4	%
Nontraditional		203		2.2	%		4,206		23.6	%		451		1.6	%		4,635		11.1	%
Digital		476		5.1	%		1,001		5.6	%		1,490		5.3	%		2,151		5.1	%
Other		1,091		11.6	%		1,343		7.6	%		3,305		11.7	%		3,805		9.1	%
Total net revenues	$	9,360				$	17,820				$	28,141				$	41,939


Year ended December 31,	Senior Credit Facility		Emmis Note		SG Broadcasting Notes		Total Payments
Remainder of 2021	$	—	$	—	$	—	$	—
2022		2,754		—		—		2,754
2023		3,672		—		—		3,672
2024		61,744		5,535		—		67,279
2025		—		—		25,425		25,425
Total	$	68,170	$	5,535	$	25,425	$	99,130

Year ending December 31,
Remainder of 2021	$	1,367
2022		5,368
2023		4,346
2024		2,845
2025		2,829
After 2025		15,358
Total lease payments		32,113
Less imputed interest		10,300
Total recorded lease liabilities	$	21,813

	As of December 31,			As of September 30,
	2020			2021
Weighted average remaining lease term - operating leases (in years)		9.0			9.5
Weighted average discount rate - operating leases		9.1	%		9.3	%

Year ending December 31,
Remainder of 2021	$	2,662
2022		3,180
2023		73
2024		8
2025		—
After 2025		—

Balance at December 31, 2020	$	6,316
Additions to asset retirement obligations		161
Accretion expense		526
Liabilities settled		(79	)
Balance at September 30, 2021	$	6,924

Three Months Ended September 30, 2021	Radio		Outdoor Advertising		All Other			Consolidated
Net revenues	$	14,361	$	3,459	$	—		$	17,820
Operating expenses excluding depreciation and amortization expense		10,467		2,073		—			12,540
Corporate expenses		—		—		2,422			2,422
Depreciation and amortization		179		889		—			1,068
Operating income (loss)	$	3,715	$	497	$	(2,422	)	$	1,790

Three Months Ended September 30, 2020	Radio		Outdoor Advertising		All Other			Consolidated
Net revenues	$	6,200	$	3,160	$	—		$	9,360
Operating expenses excluding depreciation and amortization expense		5,573		2,179		—			7,752
Corporate expenses		—		—		1,214			1,214
Depreciation and amortization		208		688		—			896
Loss on disposal of assets		—		103		—			103
Operating income (loss)	$	419	$	190	$	(1,214	)	$	(605	)

Nine Months Ended September 30, 2021	Radio		Outdoor Advertising			All Other			Consolidated
Net revenues	$	31,714	$	10,225		$	—		$	41,939
Operating expenses excluding depreciation and amortization expense		21,497		6,622			—			28,119
Corporate expenses		—		—			5,908			5,908
Depreciation and amortization		553		2,474			—			3,027
Gain on disposal of assets		—		(78	)		—			(78	)
Operating income (loss)	$	9,664	$	1,207		$	(5,908	)	$	4,963

Nine Months Ended September 30, 2020	Radio		Outdoor Advertising		All Other			Consolidated
Net revenues	$	18,368	$	9,773	$	—		$	28,141
Operating expenses excluding depreciation and amortization expense		16,509		7,106		—			23,615
Corporate expenses		—		—		3,311			3,311
Depreciation and amortization		689		2,397		—			3,086
Loss on disposal of assets		—		185		—			185
Operating income (loss)	$	1,170	$	85	$	(3,311	)	$	(2,056	)

	MEDIACO HOLDING INC.

Date: November 12, 2021	By:	/s/ RYAN A. HORNADAY
		Ryan A. Hornaday
		Executive Vice President, Chief Financial Officer and
		Treasurer

Date: November 12, 2021
	/s/ RAHSAN-RAHSAN LINDSAY
	Rahsan-Rahsan Lindsay
	Chief Executive Officer