Mediaco Holding Inc 8-K/A, filed Feb 28, 2020

Mediaco Holding Inc. (MDIA)

8-K/A 2020-02-28 For: 2019-12-13

View Original

Added on April 11, 2026

About this 8-K/A

Mediaco Holding Inc filed this 8-K/A on February 28, 2020, reporting on events of December 13, 2019.

Items reported

Item 9.01: Financial statements and exhibits

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

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



Exhibit No.	Description
99.1	Audited financial statements of FMG Kentucky, LLC and FMG Valdosta, LLC as of and for the years ended December 31, 2018 and 2017.
99.2	Unaudited financial statements of FMG Kentucky, LLC and FMG Valdosta, LLC as of and for the nine months ended September 30, 2019 and 2018.
99.3	Unaudited pro forma condensed combined balance sheet of MediaCo Holding Inc. as of September 30, 2019, and unaudited pro forma condensed combined statements of operations of MediaCo Holding Inc. for the nine months ended September 30, 2019 and the year ended February 28, 2019.




	MEDIACO HOLDING INC.
Date: February 28, 2020
	By:	/s/ J. Scott Enright
		J. Scott Enright, Executive Vice President,
		General Counsel and Secretary

	Page(s)

Report of Independent Registered Public Accounting Firm	3

Combined Carve-out Financial Statements

Combined Carve-out Balance Sheets	4

Combined Carve-out Statements of Operations	5

Combined Carve-out Statements of Changes in Net Parent Investment	6

Combined Carve-out Statements of Cash Flows	7

Notes to Combined Carve-out Financial Statements	8–19

	2018		2017
Assets
Current assets:
Accounts receivable, net	$	1,602	$	1,759
Prepaid site leases		774		688
Other current assets		2,717		1,003
Total current assets		5,093		3,450

Property and advertising structures, net		27,945		30,079
Intangible assets, net		222		242
Goodwill		6,230		6,230
Other long-term assets		16		16
Total assets	$	39,506	$	40,017

Liabilities and Net Parent Investment
Current liabilities:
Accounts payable	$	353	$	280
Deferred revenue		494		307
Accrued expenses		1,772		697
Current maturities of capital leases		69		98
Total current liabilities		2,688		1,382
Liabilities under capital lease		370		414
Asset retirement obligations		51		48
Straight-line lease liability		420		332
Total liabilities		3,529		2,176

Net parent investment		35,977		37,841
Total Net Parent Investment		35,977		37,841
Total Liabilities and Net Parent Investment	$	39,506	$	40,017

	2018			2017
Revenues, net	$	13,398		$	12,706
Operating expenses
Direct advertising expenses		5,720			5,697
General and administrative expenses		4,176			4,181
Depreciation and amortization		2,855			2,742
Total operating expenses		12,751			12,620
Income from operations		647			86
Other (expense) income
(Loss) gain on disposal of property and advertising structures		(282	)		74
Other income (expense), net		6			(32	)
Total other (expense) income		(276	)		42

Net Income	$	371		$	128

	Total Net Parent
	Investment
Balance at December 31, 2016	$	38,456
Net income		128
Net transfers to parent		(743	)
Balance at December 31, 2017	$	37,841
Net income		371
Net transfers to parent		(2,235	)
Balance at December 31, 2018	$	35,977

	2018			2017
Cash flows from operating activities
Net income	$	371		$	128
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,855			2,742
Accretion of asset retirement obligation		3			3
Loss (gain) on disposal of property and advertising structures		282			(74	)
Bad debt expense		155			185
Straight-line leases		88			129
Noncash disposal of assets	-				10
Change in assets and liabilities
Accounts receivable		2			(438	)
Prepaid site leases		(86	)		67
Other current assets		(1,714	)		(769	)
Accounts payable		73			141
Accrued expenses		1,075			199
Deferred revenue		187			(33	)
Net cash provided by operating activities		3,291			2,290

Cash flows from investing activities
Purchases of property and advertising structures		(1,178	)		(1,863	)
Proceeds from disposal of property and structures		225			411
Net cash (used) in investing activities		(953	)		(1,452	)

Cash flows from financing activities
Payments on capital leases		(103	)		(95	)
Net transfers to parent		(2,235	)		(743	)
Net cash (used) in financing activities		(2,338	)		(838	)

Net change in cash	-			-
Cash
Beginning of year	-			-
End of year	$	-		$	-

Balance Sheets:	2018			2017
Other current assets	$	154		$	78
Goodwill		6,230			6,230
Accrued expenses		(133	)		(295	)
Corporate allocation of net assets	$	6,251		$	6,013

Statements of Operations:	2018			2017
General and administrative expenses	$	1,217		$	1,203
Other (income)/expense, net		(6	)		32
Corporate statements of operations allocations	$	1,211		$	1,235

	2018		2017
Accounted for under ASC 840:
Bulletin display	$	9,401	$	9,049
Poster		1,739		1,707
		11,140		10,756

Accounted for under ASC 606:
Digital display		1,344		1,235
Production		818		645
Other revenue		96		70
		2,258		1,950
Total revenue	$	13,398	$	12,706

	Useful Life	2018			2017
Land	Indefinite	$	859		$	859
Buildings	30 years		244			323
Advertising structures	15 years		35,002			33,848
Vehicles - autos	5 years		607			563
Machinery and equipment	5 years		273			263
Furniture, fixtures and office equipment	7 years		155			116
Computer equipment	3-5 years		84			77
Property and equipment under capital leases	2-30 years		712			758
Construction in process			40			641
			37,976			37,448
Less: Accumulated depreciation			(10,031	)		(7,369	)
		$	27,945		$	30,079

As of December 31, 2018			Accumulated
	Gross		Amortization		Net
Permits	$	303	$	81	$	222
	$	303	$	81	$	222

As of December 31, 2017			Accumulated
	Gross		Amortization		Net
Permits	$	303	$	61	$	242
	$	303	$	61	$	242

Years Ending December 31,
2019	$	20
2020		20
2021		20
2022		20
2023		20
Thereafter		122
	$	222

Years Ending December 31,
2019	$	1,828
2020		1,785
2021		1,762
2022		1,761
2023		1,743
Thereafter		18,456
	$	27,335

	2018		2017
Beginning balance	$	48	$	45
Accretion		3		3
Assets surrendered	-		-
Liabilities incurred	-		-
Liabilities settled	-		-
Ending balance	$	51	$	48

Net Transfer Category		2018			2017
Contribution of net assets from (to) Parent	$	(319	)	$	(595	)
Corporate allocations		(4,167	)		(3,986	)
Cash clearing and other financing activities		2,251			3,838
	$	(2,235	)	$	(743	)

	Page(s)

Condensed Combined Carve-out Financial Statements

Condensed Combined Carve-out Balance Sheets	3

Condensed Combined Carve-out Statements of Operations	4

Condensed Combined Carve-out Statements of Changes in Net Parent Investment	5

Condensed Combined Carve-out Statements of Cash Flows	6

Notes to Condensed Combined Carve-out Financial Statements	7–13

Balance Sheet:	2019
Other current assets	$	150
Goodwill		6,230
Accrued expenses		(97	)
Corporate allocation of net assets	$	6,283

Statements of Operations:	2019			2018
General and administrative expenses	$	471		$	816
Other (income)/expense, net		(27	)		4
Corporate statements of operations allocations	$	444		$	820

As of September 30, 2019			Accumulated
	Gross		Amortization		Net
Permits	$	303	$	96	$	207
	$	303	$	96	$	207

Years Ending December 31,
2019 (remaining 3 months)	$	5
2020		20
2021		20
2022		20
2023		20
Thereafter		122
	$	207

	Registrant		Pro Forma Adjustments- Emmis Transaction			Notes	Acquiree		Pro Forma Adjustments- Fairway Transaction			Notes	Pro Forma
	(Dollars in thousands)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	-	$	2,096		(A)	$	-	$	332		(H)	$	2,428
Accounts receivable, net		10,029		-				1,603		73		(I)		11,705
Prepaid expenses		1,113		-				823		(823	)	(J)		1,113
Other		216		-				2,737		(2,499	)	(K)		454
Total current assets		11,358		2,096				5,163		(2,917	)			15,700
PROPERTY AND EQUIPMENT, NET		1,895		-				25,932		4,213		(L)		32,040
INTANGIBLE ASSETS AND GOODWILL, NET		63,853		-				6,437		10,211		(M)		80,501

OTHER ASSETS:
Deferred tax assets		5,125		(5,125	)	(B)		-		-				-
Operating lease right of use assets		11,659		-				-		15,249		(N)		26,908
Deposits and other		343		-				16		-				359
Total other assets		17,127		(5,125	)			16		15,249				27,267
Total assets	$	94,233	$	(3,029	)		$	37,548	$	26,756			$	155,508

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	1,551	$	8,197		(C)	$	907	$	(401	)	(O)	$	10,254
Accrued salaries and commissions		583		-				-		-				583
Deferred revenue		936		-				546		214		(P)		1,696
Income taxes payable		1,405		(1,405	)	(B)		-		-				-
Operating lease liabilities		2,312		-				-		824		(N)		3,136
Current portion of long-term debt		-		2,500		(D)		-		1,170		(Q)		3,670
Other		91		-				57		(57	)	(J)		91
Total current liabilities		6,878		9,292				1,510		1,750				19,430
ASSET RETIREMENT OBLIGATION		-		-				-		6,463		(R)		6,463
OPERATING LEASE LIABILITIES, NET OF CURRENT		11,269		-				-		12,311		(N)		23,580
LONG-TERM DEBT, NET OF CURRENT		-		57,051		(D)		-		21,486		(Q)		78,537
OTHER NONCURRENT LIABILITIES		76		-				847		-				923
Total liabilities		18,223		66,343				2,357		42,010				128,933
COMMITMENTS AND CONTINGENCIES
SERIES A CUMULATIVE CONVERTIBLE PARTICIPATING PREFERRED STOCK, $.01 PAR VALUE, 10,000,000 SHARES AUTHORIZED; 220,000 SHARES ISSUED AND OUTSTANDING ON A PRO FORMA BASIS		-		-				-		22,000		(S)		22,000
EQUITY:
Net parent company investment		76,010		(76,010	)	(E)		35,191		(35,191	)	(T)		-
Class A common stock, $.01 par value, 170,000,000 shares authorized; 1,683,286 shares issued and outstanding on a pro forma basis		-		17		(F)		-		-				17
Class B common stock, $.01 par value, 50,000,000 shares authorized; 5,413,197 shares issued and outstanding on a pro forma basis		-		54		(F)		-		-				54
Class C common stock, $.01 par value, 30,000,000 shares authorized; none issued on a pro forma basis		-		-				-		-				-
Additional paid-in capital and retained earnings		-		6,567		(G)		-		(2,063	)	(U)		4,504
Total equity		76,010		(69,372	)			35,191		(37,254	)			4,575

Total liabilities and equity	$	94,233	$	(3,029	)		$	37,548	$	26,756			$	155,508

	Historical		Pro Forma Adjustments- Emmis Transaction			Notes	Acquiree		Pro Forma Adjustments- Fairway Transaction			Notes	Pro Forma
	(In thousands, except per share data)
NET REVENUES	$	35,487	$	-			$	10,344	$	-			$	45,831
OPERATING EXPENSES:				-
Operating expenses excluding depreciation and amortization expense		27,617		938		(V)		6,790		521		(Y)		35,866
Depreciation and amortization		970		-				2,191		(368	)	(Z)		2,793
Loss on disposal of assets		-		-				292		-				292
Total operating expenses		28,587		938				9,273		153				38,951
OPERATING INCOME		6,900		(938	)			1,071		(153	)			6,881
OTHER INCOME		-		-				27		-				27
INTEREST EXPENSE		-		4,769		(W)		-		1,779		(AA)		6,548
INCOME BEFORE INCOME TAXES		6,900		(5,707	)			1,098		(1,932	)			332
PROVISION FOR INCOME TAXES		2,186		(1,712	)	(X)		-		(580	)	(W)		(106	)
NET INCOME	$	4,714	$	(3,995	)		$	1,098	$	(1,352	)		$	438
PREFERRED STOCK DIVIDENDS									$	1,568			$	1,568
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS													$	(1,129	)
NET INCOME PER SHARE - BASIC AND DILUTED												(BB)	$	(0.16	)
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED												(BB)		7,096

Cash consideration	$	43,108
Due from Seller		(106	)
Total Consideration	$	43,002

Accounts receivable	$	1,676
Other current assets		132
Property, plant and equipment		30,145
Operating lease right-of-use assets		15,249
Goodwill		15,128
Intangibles		1,520
Other assets		16
Assets Acquired	$	63,866

Accounts payable	$	73
Accrued expenses and other current liabilities		433
Current portion of operating lease liabilities		824
Operating lease liabilities, less current portion		12,311
Asset retirement obligations		6,463
Deferred revenue		760
Liabilities Assumed	$	20,864

Net Assets Acquired	$	43,002

Net proceeds from senior credit facility	$	48,301
Net proceeds from sale of MediaCo Class B common stock		41,500
Net proceeds from SG Broadcasting Promissory Note		6,250
Less: Distribution of debt and equity net proceeds to Emmis		(91,843	)
Less: Distribution for estimated transaction fees and expenses		(2,112	)
Total pro forma adjustment	$	2,096

Issuance of shares ⁽ⁱ⁾	$	41,429
Distribution of debt and equity net proceeds to Emmis ⁽ⁱⁱ⁾		(91,843	)
Distribution for estimated transaction fees and expenses		(2,112	)
Issuance of Emmis Promissory Note		(5,000	)
Distribution of assets and liabilities that will remain with Emmis ⁽ⁱⁱⁱ⁾		(11,917	)
Reclassification of NPI to APIC		76,010
Total pro forma adjustment	$	6,567

Net proceeds from senior credit facility	$	22,656
Net proceeds from sale of convertible preferred stock		22,000
Less: Distribution of purchase price		(43,108	)
Less: Distribution for estimated transaction fees and expenses		(1,216	)
Total pro forma adjustment	$	332

Asset retained by seller	$	(2,406	)
Fair value adjustment		(199	)
Working capital settlement		106
Total pro forma adjustment	$	(2,499	)

Removal of existing goodwill	$	(6,230	)
Addition of goodwill associated with Fairway Transaction		15,128
Fair value adjustment		1,313
Total pro forma adjustment	$	10,211

Distribution of purchase price	$	(43,108	)
Distribution for estimated transaction fees and expenses		(1,216	)
Distribution of assets retained by seller in Fairway Transaction, net ⁽ⁱ⁾		(2,300	)
Purchase price allocation of assets and liabilities acquired in Fairway Transaction ⁽ⁱⁱ⁾		9,370
Reclassification of NPI to APIC		35,191
Total pro forma adjustment	$	(2,063	)

	Nine Months September 30, 2019		Twelve Months February 28, 2019
Allocated charges included in operating expenses	$	471	$	1,217
Allocated charges included in other income		27		6
Total allocated charges	$	444	$	1,211

	Nine Months Setpember 30, 2019			Twelve Months February 28, 2019
Estimated depreciation expense	$	1,823		$	2,431
Historical depreciation expense		(2,191	)		(2,855	)
Proforma adjustment to depreciation expense	$	(368	)	$	(424	)