Revenue Performance - For the three months ended June 30, 2024, total net revenues were $26.2 million, a significant increase from $12.1 million in the same period of 2023[93]. - Spot advertising revenue for the same period was $17.7 million, representing 67.5% of total net revenues, compared to $4.9 million (40.7%) in 2023[93]. - Digital revenue increased to $3.4 million (13.0% of total) from $1.5 million (12.2%) year-over-year[93]. - Net revenues for the total company increased to $26,202,000 for the three months ended June 30, 2024, representing a 116.9% increase compared to $12,080,000 for the same period in 2023[101]. Operating Expenses - Operating expenses excluding depreciation and amortization increased to $34,647,000 for the three months ended June 30, 2024, a 213.7% increase from $11,046,000 in the same period of 2023[102]. - Corporate expenses rose to $3,445,000 for the three months ended June 30, 2024, reflecting a 243.8% increase compared to $1,002,000 in the prior year[103]. - The NY-ADE segment's operating expenses decreased by 12.4% for the three months ended June 30, 2024, due to lower production costs[102]. Financial Losses - The consolidated net loss for the three months ended June 30, 2024, was $(48,307,000), a significant increase of 11,374.3% compared to a loss of $(421,000) in the same period of 2023[110]. - The total operating loss for the company was $(13,326,000) for the three months ended June 30, 2024, compared to a loss of $(116,000) in the same period of 2023, marking an increase of 11,387.9%[106]. Cash Flow and Liquidity - As of June 30, 2024, the company had cash, cash equivalents, and restricted cash of $12.4 million, compared to $7.1 million at December 31, 2023[111]. - The company reported negative working capital of $(11.1) million as of June 30, 2024, a decrease from net working capital of $2.2 million at December 31, 2023[111]. - Cash flows used in continuing operating activities increased to $24.7 million for the six months ended June 30, 2024, compared to $3.7 million for the same period in 2023[112]. - Cash flows used in continuing investing activities were $7.0 million for the six months ended June 30, 2024, primarily due to the Estrella Acquisition and capital expenditures[112]. - Cash flows provided by continuing financing activities were $37.0 million for the six months ended June 30, 2024, mainly from proceeds of the First Lien Term Loan[113]. - The company anticipates being able to meet its liquidity needs for the next twelve months through cash on hand, additional draws on its First Lien Term Loan, and projected cash flows from operations[111]. Strategic Initiatives - The company is actively evaluating potential acquisitions to leverage strengths and enhance long-term value[95]. - The company is focusing on digital media distribution and interactive content to engage audiences and create new business opportunities[94]. - Management has taken steps to enhance its ability to fund operational expenses by reducing various costs and is prepared to take additional steps as necessary[111]. Market and Segment Performance - Local radio revenue for Estrella MediaCo was up 3% compared to the same period in 2023, while the overall market was estimated to be down 6%[94]. - The EstrellaTV network ratings decreased by 35% from January to June 2024 compared to the same period in 2023[94]. - The EM-VD and EM-ADE segments saw revenue growth due to the Estrella Acquisition, while the NY-ADE segment experienced a revenue decline of 27.6% for the three months ended June 30, 2024[101]. Interest and Tax Implications - Rising interest rates have increased the interest accrued on the Emmis Convertible Promissory Note, impacting financial operations[95]. - Interest expense, net increased significantly to $(3,782,000) for the three months ended June 30, 2024, a 3,160.3% increase from $(116,000) in the same period of 2023 due to additional long-term debt from the Estrella Acquisition[107][108]. - The provision for income taxes increased to $182,000 for the three months ended June 30, 2024, a 142.7% increase from $75,000 in the same period of 2023[110]. Changes in Fair Value - The change in fair value of warrant shares liabilities resulted in a loss of $(31,027,000) for the three months ended June 30, 2024, driven by an increase in MediaCo's share price from $2.50 to $3.60[109].
MediaCo Holding(MDIA) - 2024 Q2 - Quarterly Report