Financial Performance - MediaCo's total net revenues for the year ended December 31, 2024, were $95.571 million, a significant increase from $32.391 million in 2023[176]. - MediaCo's net revenue for 2024 was $95.6 million, an increase of $63.2 million or 195% compared to $32.4 million in 2023[196]. - Operating loss for 2024 was $28.2 million, an increase of $21.4 million or 316% from an operating loss of $6.8 million in 2023[196]. - Net loss decreased to $1.3 million in 2024, down $6.1 million or 82% from a net loss of $7.4 million in 2023[196]. - Cash flows used in operating activities increased to $19.9 million, up $14.3 million or 257% compared to 2023[196]. - Total operating expenses for 2024 were $123.8 million, an increase of $84.6 million or 216% from $39.2 million in 2023[199]. - Adjusted EBITDA for 2024 was $(2.2) million, remaining consistent with $(2.2) million in 2023[196]. Revenue Sources - Spot Radio & TV Advertising accounted for 64.0% of total net revenues in 2024, while Digital revenues increased to 21.2% from 11.4% in 2023[176]. - Digital and streaming initiatives contributed to a 452% year-over-year increase in revenue from digital platforms[196]. - Revenue from the Audio Segment increased by $25.1 million to $57.5 million in 2024, primarily due to the Estrella Acquisition[211]. - The Video Segment generated $38.0 million in revenue in 2024, all attributed to the Estrella Acquisition[213]. Acquisitions and Integration - The Estrella Acquisition significantly expanded MediaCo's national footprint and diversified its content portfolio[196]. - The company incurred $1.4 million in involuntary termination costs related to the Estrella Acquisition integration during the twelve months ended December 31, 2024[179]. Assets and Liabilities - As of December 31, 2024, MediaCo recorded approximately $166.0 million for FCC licenses, representing about 51% of total assets[182]. - Approximately 56% of the aggregate principal amount of long-term debt bore interest at floating rates as of December 31, 2024[225]. - The company does not have any material off-balance sheet financings or liabilities[228]. Interest Rates and Financial Impact - The company has been affected by rising interest rates, impacting the interest accrued on its convertible promissory note and variable interest loans[180]. - A 100 basis points change in floating interest rates would have changed interest expense by an estimated $0.5 million for the year ended December 31, 2024[225]. - Management may take actions to mitigate exposure to adverse changes in interest rates, but the effects of such actions are uncertain[226]. Market Conditions - The U.S. traditional radio and television broadcasting industries are experiencing stalled growth due to competition from new media and audience fragmentation[177]. - The long-term revenue growth rate for the New York market is projected at 0.5%, consistent with the previous year[188]. - Inflation has impacted performance through higher costs for employee compensation, equipment, and third-party services[227]. Financing Activities - Cash provided by continuing financing activities was $33.9 million for the year ended December 31, 2024, primarily from $43.7 million in proceeds from the First Lien Term Loan[220]. - Cash used in continuing financing activities was $1.2 million for the year ended December 31, 2023, mainly due to repurchases of Class A common stock of $0.8 million[221]. - The company entered into a First Lien Term Loan and a Second Lien Term Loan on April 17, 2024[224]. Seasonal Fluctuations - Results of operations are subject to seasonal fluctuations, with typically higher revenues and operating income in the second quarter[222]. Impairment Assessment - The discount rate used in the impairment assessment for FCC licenses decreased from 12.7% in 2023 to 12.5% in 2024[188].
MediaCo Holding(MDIA) - 2024 Q4 - Annual Report