Revenue Performance - Net revenues for the three months ended June 30, 2023, decreased by $451,000 (3.6%) to $12,080,000 compared to $12,531,000 in the same period of 2022[105]. - For the six months ended June 30, 2023, net revenues decreased by $1,229,000 (6.0%) to $19,415,000 from $20,644,000 in the prior year, primarily due to declines in healthcare spending and advertising[105]. - The gross revenues reported to Miller Kaplan for the New York radio market decreased by 6.1% for the six months ended June 30, 2023, while the company's gross revenues were down 12.3% in the same period[106]. Operating Expenses - Operating expenses excluding depreciation and amortization for the three months ended June 30, 2023, were $11,046,000, a decrease of $278,000 (2.5%) from $11,324,000 in 2022[107]. - Corporate expenses decreased by $337,000 (25.2%) to $1,002,000 for the three months ended June 30, 2023, compared to $1,339,000 in 2022[108]. - Depreciation and amortization expense increased by $48,000 (48.0%) to $100,000 for the three months ended June 30, 2023, due to intangible software costs related to updated websites and mobile applications[109]. Financial Losses - Operating loss for the three months ended June 30, 2023, was $116,000, a decrease of 50.0% compared to $232,000 in 2022; for the six months, the loss was $2,022,000, an increase of 50.4% from $1,344,000 in 2022[111]. - Consolidated net loss for the three months ended June 30, 2023, was $421,000, an improvement of 85.5% from $2,903,000 in 2022; for the six months, the loss was $2,528,000, a reduction of 64.9% from $7,196,000 in 2022[114]. Cash Flow and Working Capital - Cash, cash equivalents, and restricted cash as of June 30, 2023, totaled $10.1 million, down from $15.3 million at December 31, 2022; net working capital decreased slightly from $15.2 million to $13.8 million[116]. - Cash flows used by continuing operating activities were $3.7 million for the six months ended June 30, 2023, compared to cash flows provided of $3.3 million in 2022, primarily due to income tax payments and lower collections of accounts receivable[118]. - Cash flows used in continuing investing activities were $0.9 million for the six months ended June 30, 2023, related to capital expenditures for a new digital platform and office space, compared to $1.0 million in 2022 for software purchases[119]. - Cash flows used in continuing financing activities were $1.0 million for the six months ended June 30, 2023, down from $2.1 million in 2022, mainly due to stock repurchases and tax obligations[120]. Debt and Interest - Interest expense, net, significantly decreased to $116,000 for the three months ended June 30, 2023, down 94.0% from $1,929,000 in 2022; for the six months, it decreased to $219,000, down 94.5% from $4,006,000 in 2022[112]. - As of June 30, 2023, the company had $6.0 million of outstanding promissory notes to Emmis, classified as long-term with no debt service requirements over the next twelve months[117]. Strategic Initiatives - The company sold its Fairway outdoor advertising business, classifying related assets and liabilities as discontinued operations, impacting financial results significantly[90]. - The company is actively evaluating potential acquisitions to leverage strengths and enhance long-term value[100]. - The company continues to evaluate potential acquisitions that promise long-term value appreciation and leverage its strengths[117]. - The company has focused on enhancing digital capabilities, including interactive websites and mobile applications, to engage listeners and explore new business opportunities[98]. Tax Provisions - The provision for income taxes for the three months ended June 30, 2023, was $76,000, a slight increase from $75,000 in 2022, primarily due to additional valuation allowance recognition[113]. Economic Environment - The rising interest rate environment has impacted the company, increasing the cost of potential future borrowings[101].
MediaCo Holding(MDIA) - 2023 Q2 - Quarterly Report