MediaCo Holding(MDIA) - 2022 Q3 - Quarterly Report

Financial Performance - Total net revenues for the three months ended September 30, 2022, were $11,825, a decrease of 33.6% compared to $17,820 in the same period of 2021[121] - Radio advertising revenues decreased by 42.4% to $8,270 for the three months ended September 30, 2022, compared to $14,361 in 2021[121] - Outdoor advertising revenues increased by 2.8% to $3,555 for the three months ended September 30, 2022, compared to $3,459 in 2021[121] - The New York radio market's gross revenues increased by 2.8% for the nine months ended September 30, 2022, while the company's gross revenues decreased by 8.7% in the same period[114][122] - Consolidated net loss increased by $1,463, or 123.1%, to $2,651,000 for the three months ended September 30, 2022, compared to $1,188,000 in 2021[136] Operating Expenses - Operating expenses excluding depreciation and amortization decreased by 23.4% to $12,540 for the three months ended September 30, 2022, compared to $9,602 in 2021[124] - Corporate expenses decreased by $962, or 39.7%, to $1,460,000 for the three months ended September 30, 2022, compared to $2,422,000 in 2021[129] - Total depreciation and amortization decreased by $162, or 15.2%, to $906,000 for the three months ended September 30, 2022, compared to $1,068,000 in 2021[130] Cash Flow and Financing - Cash flows provided by operating activities increased to $4.7 million for the nine months ended September 30, 2022, compared to $4.2 million in 2021[144] - Cash flows used in investing activities were $1.8 million for the nine months ended September 30, 2022, related to capital expenditures for a new digital platform project[145] - Cash flows used in financing activities were $3.2 million for the nine months ended September 30, 2022, due to principal payments on long-term debt and tax withholding obligations[146] - At September 30, 2022, the company had cash and cash equivalents of $5.9 million, down from $6.1 million at December 31, 2021[138] - The company had $66.7 million of borrowings outstanding under the Senior Credit Facility, with a borrowing rate of 10.6% as of September 30, 2022[139] - The debt service requirements for the next twelve months are expected to be $11.1 million related to the Senior Credit Facility[140] - On July 28, 2022, SG Broadcasting converted $28.0 million plus $1.9 million of accrued interest into 12.9 million Class A Common Shares, reducing long-term debt[142] Strategic Initiatives - The company is evaluating potential acquisitions to leverage strengths and may opportunistically dispose of assets[115] - The company is investing in growing its digital business and labor force, focusing on sales[127] Market Impact - The absence of ticket sales and sponsorships for the annual outdoor concert in the current period contributed to the decline in net radio revenues[121] - The impact of COVID-19 and economic uncertainties may continue to adversely affect the company's financial condition and results of operations[116] Interest Rates - The company has been impacted by rising interest rates, increasing the interest paid on the Senior Credit Facility[118]