Revenue Performance - For the three months ended September 30, 2024, total net revenues were $29,859,000, a significant increase from $6,447,000 in the same period of 2023[92] - Spot advertising revenue accounted for 65.9% of total net revenues in Q3 2024, amounting to $19,637,000, compared to $4,328,000 in Q3 2023[92] - Digital revenue increased to $5,780,000 in Q3 2024, representing 19.3% of total net revenues, up from $608,000 in Q3 2023[92] - Net revenues for the three months ended September 30, 2024, increased by 30% to $13,108,000 compared to the same period in 2023, driven by the Estrella Acquisition[99] - For the nine months ended September 30, 2024, net revenues decreased by 14.9% in the NY-ADE segment, primarily due to weaker sales from the annual Summer Jam concert and lower spending in media, retail, and beverages[99] Operating Expenses - Operating expenses excluding depreciation and amortization for the three months ended September 30, 2024, increased by 30% to $16,581,000, attributed to the Estrella Acquisition[100] - Corporate expenses for the three months ended September 30, 2024, rose by 111.8% to $2,319,000, mainly due to higher professional service fees related to the Estrella Acquisition[102] - Depreciation and amortization expense for the three months ended September 30, 2024, increased by 1239.2% to $1,741,000, primarily due to the Estrella Acquisition[103] Financial Losses - Total operating loss for the three months ended September 30, 2024, was $(6,873,000), reflecting a 249.9% increase compared to the same period in 2023[105] - For the nine months ended September 30, 2024, total operating loss was $(23,666,000), a 493.7% increase compared to the same period in 2023[105] Interest and Debt - Interest expense, net for the nine months ended September 30, 2024, increased by 2,250.3% to $(7,192,000) due to additional long-term debt from the Estrella Acquisition[107] - The rising interest rate environment has increased interest expenses on the Emmis Convertible Promissory Note and created uncertainty regarding variable interest loans[94] Cash Flow and Liquidity - As of September 30, 2024, the company had cash, cash equivalents, and restricted cash of $10.2 million, an increase from $7.1 million at December 31, 2023, despite negative working capital of $(14.1) million[111] - Cash flows used in continuing operating activities were $30.7 million for the nine months ended September 30, 2024, compared to $3.7 million for the same period in 2023, indicating increased cash usage[111] - Cash flows used in continuing investing activities were $7.6 million for the nine months ended September 30, 2024, primarily due to the Estrella Acquisition and capital expenditures[112] - Cash flows provided by continuing financing activities were $41.4 million for the nine months ended September 30, 2024, mainly from proceeds of the First Lien Term Loan[113] - Management anticipates being able to meet liquidity needs for the next twelve months through cash on hand, additional draws on the First Lien Term Loan, and projected cash flows from operations[112] Strategic Initiatives - The company is actively evaluating potential acquisitions to enhance long-term value and may opportunistically dispose of assets[93] - The company’s strategy includes leveraging digital platforms and emerging business opportunities in the Free Ad-Supported Streaming TV marketplace[93] - The company is evaluating potential acquisitions to leverage strengths and enhance long-term value[111] Market Performance - The New York market revenues increased by 3.5% for the nine months ended September 30, 2024, while the company's gross revenues in the same market decreased by 11.3%[93] - NY-ADE segment's gross revenues reported to Miller Kaplan decreased by 11.3% for the nine-month period ended September 30, 2024, compared to the prior year, while the overall New York radio market grew by 3.5%[99] Tax and Income - The provision for income taxes for the three months ended September 30, 2024, was $342,000, a 307.1% increase from $84,000 in the same period of 2023[109] - Consolidated net income for the three months ended September 30, 2024, was $54,926, compared to a loss of $2,316 in the same period of 2023, representing a significant turnaround[110] Internal Controls - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2024[115]
MediaCo Holding(MDIA) - 2024 Q3 - Quarterly Report