MediaCo Holding(US:MDIA)2025-11-19 21:22Revenue Performance - Net revenues for the three months ended September 30, 2025, increased by $5.5 million, or 19%, to $35.4 million compared to $29.9 million for the same period in 2024[154]. - Net revenues for the nine months ended September 30, 2025, increased by $31.9 million, or 51%, to $94.7 million compared to $62.8 million for the same period in 2024[154]. - Net revenues for the three months ended September 30, 2025, increased by 19% to $35,398,000 compared to $29,859,000 in 2024, driven primarily by increased Digital revenue[157]. - The Audio Segment reported net revenues of $13,550,000 for the three months ended September 30, 2025, down from $16,751,000 in 2024, primarily due to a decrease in Spot revenue[172]. - The Video Segment's net revenues increased by 66% to $21,848,000 for the three months ended September 30, 2025, compared to $13,108,000 in 2024, driven by growth in digital revenue[174]. Operating Loss and Expenses - Operating loss for the three months ended September 30, 2025, increased by $0.2 million, or 3%, to $7.1 million compared to $6.9 million for the same period in 2024[154]. - Operating loss for the nine months ended September 30, 2025, decreased by $5.1 million, or 22%, to $18.6 million compared to $23.7 million for the same period in 2024[154]. - Total operating expenses for the three months ended September 30, 2025, were $42.5 million, representing 111% of net revenues[156]. - Operating expenses for the three months ended September 30, 2025, rose by 16% to $42,489,000 from $36,732,000 in 2024, mainly due to higher digital platform costs[159]. - Corporate expenses decreased by 42% to $1,341,000 for the three months ended September 30, 2025, compared to $2,319,000 in 2024, primarily due to lower professional service fees[161]. Net Loss - Net loss for the three months ended September 30, 2025, increased by $72.8 million, or 133%, to $17.9 million compared to net income of $54.9 million for the same period in 2024[154]. - Net loss for the nine months ended September 30, 2025, decreased by $36.8 million, or 1252%, to $33.9 million compared to net income of $2.9 million for the same period in 2024[154]. - The net loss for the three months ended September 30, 2025, was $17,891,000, a decrease from a net income of $54,926,000 in 2024, reflecting the impact of the Estrella Acquisition[171]. Cash Flow and Liquidity - Cash flows provided by operating activities increased by $32.7 million, or 106%, to $1.9 million for the nine months ended September 30, 2025, compared to cash flows used in operating activities of $30.7 million for the same period in 2024[154]. - Cash flows provided by operating activities were $1.9 million for the nine months ended September 30, 2025, a significant improvement from cash flows used of $30.7 million for the same period in 2024[183]. - Cash flows used in investing activities were $0.3 million for the nine months ended September 30, 2025, down from $7.6 million in the same period in 2024, which included costs related to the Estrella acquisition and capital expenditures for a new digital platform[185]. - Cash flows used in financing activities were $0.4 million for the nine months ended September 30, 2025, compared to $41.4 million provided by financing activities in the same period in 2024, which was primarily from the First Lien Term Loan[186]. - The company is actively managing liquidity by optimizing working capital and controlling expenses, resulting in reduced cash burn for the period[181]. Financial Position and Management - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash of $8.2 million, with negative working capital of $43.3 million, an increase from negative working capital of $18.0 million at December 31, 2024[180]. - The increase in negative working capital was driven by the cancellation of certain programming rights contracts and increased accounts payable and accrued expenses[180]. - The company maintains a positive equity position despite net losses, indicating a focus on long-term financial health[181]. - Cash flows from operating activities increased mainly due to higher accounts payable, indicating improved cash management practices[183]. - Management plans to refinance $5.0 million in Delayed Draw Term Loans due in May 2026 and July 2026, using cash flow from operations or additional investments[182]. - The company continues to evaluate potential acquisitions to leverage strengths and support long-term growth, while managing liquidity prudently[182]. Adjusted EBITDA - Adjusted EBITDA for the three months ended September 30, 2025, was $2.1 million, increasing 1971% compared to $(0.1) million for the same period in 2024[155]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $5.0 million, increasing 209% compared to $(4.6) million for the same period in 2024[155]. - Adjusted EBITDA for the three months ended September 30, 2025, was $2,095,000, compared to a loss of $112,000 in 2024, indicating improved operational performance[178]. Interest and Tax Expenses - Interest expense increased by 20% to $3,931,000 for the three months ended September 30, 2025, due to additional long-term debt related to the Estrella Acquisition[166]. - The provision for income taxes decreased by 18% to $282,000 for the three months ended September 30, 2025, compared to $342,000 in 2024, due to changes in the deferred tax liability[169]. - Depreciation and amortization expense decreased slightly to $1,684,000 for the three months ended September 30, 2025, from $1,741,000 in 2024, as certain assets became fully depreciated[162].