35 unchanged sentences
In addition, it is our general policy not to preempt advertising spots paid for in cash with advertising spots paid for in trade.
−Removed: The following table summarizes the sources of our revenues from continuing operations for the three and six months ended June 30, 2023 and 2022.
+Added: The following table summarizes the sources of our revenues from continuing operations for the three and nine months ended September 30, 2023 and 2022.
The category “Other” includes, among other items, revenues related to network revenues and barter.
−Removed: (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30,
+Added: (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30,
2023 % of Total 2022 % of Total 2023 % of Total 2022 % of Total
23 unchanged sentences
Some of our competitors that operate larger station clusters in the New York market are able to leverage their market share to extract a greater percentage of available advertising revenue through packaging a variety of advertising inventory at discounted unit rates.
−Removed: Market revenues in New York as measured by Miller Kaplan Arase LLP (“Miller Kaplan”), an independent public accounting firm used by the radio industry to compile revenue information, were down 6.1% for the six months ended June 30, 2023, as compared to the same period of the prior year.
+Added: Market revenues in New York as measured by Miller Kaplan Arase LLP (“Miller Kaplan”), an independent public accounting firm used by the radio industry to compile revenue information, were down 4.6% for the nine months ended September 30, 2023, as compared to the same period of the prior year.
Our gross revenues reported to Miller Kaplan were down 15.3%, as compared to the same period of the prior year.
11 unchanged sentences
RESULTS OF OPERATIONS
−Removed: Three-Month and Six-Month Periods Ended June 30, 2023 compared to June 30, 2022
+Added: Three-Month and Nine-Month Periods Ended September 30, 2023 compared to September 30, 2022
The following discussion refers to the Company’s continuing operations.
1 unchanged sentence
Net revenues:
−Removed: Three Months Ended June 30, Six Months Ended June 30, 2023
+Added: Three Months Ended September 30, Nine Months Ended September 30, 2023
(dollars in thousands) 2023 2022 $ Change % Change 2023 2022 $ Change % Change
Net revenues $ 6,447 $ 8,270 $ (1,823) (22.0) % $ 25,862 $ 28,914 $ (3,052) (10.6) %
−Removed: Net revenues decreased for the three and six months ended June 30, 2023 as a result of a substantial declines in healthcare spend as the COVID-19 vaccination awareness campaigns have slowed as well as online gambling, automotive and wireless advertising spend, partially offset by stronger ticket sales and broadcast sponsorships of our annual Summer Jam concert, as well as by stronger tourism and live event advertising spend as the restrictions on travel, social gatherings, and business activities have continued to ease.
+Added: Net revenues decreased for the three and nine months ended September 30, 2023 as a result of a substantial declines in healthcare spend as the COVID-19 vaccination awareness campaigns have slowed as well as in online gambling, automotive and wireless advertising spend.
+Added: These decreases were partially offset for the nine months ended September 30, 2023 by stronger ticket sales and broadcast sponsorships of our annual Summer Jam concert, as well as by stronger tourism and live event advertising spend as the restrictions on travel, social gatherings, and business activities have continued to ease.
We typically monitor the performance of our stations against the aggregate performance of the market in which we operate based on reports for the period prepared by Miller Kaplan.
Miller Kaplan reports are generally prepared on a gross revenues basis and exclude revenues from barter and syndication arrangements.
−Removed: Miller Kaplan reported gross revenues for the New York radio market decreased 6.1% for the six-month period ended June 30, 2023, as compared to the same period of the prior year.
−Removed: Our gross revenues reported to Miller Kaplan were down 12.3% for the six -month period ended June 30, 2023 , as compared to the same period of the prior year.
+Added: Miller Kaplan reported gross revenues for the New York radio market decreased 4.6% for the nine-month period ended September 30, 2023, as compared to the same period of the prior year.
+Added: Our gross revenues reported to Miller Kaplan were down 15.3% for the nine-month period ended September 30, 2023 , as compared to the same period of the prior year.
Operating expenses excluding depreciation and amortization expense:
−Removed: (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023
+Added: (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023
2023 2022 $ Change % Change 2023 2022 $ Change % Change
Operating expenses excluding depreciation and amortization expense $ 7,175 $ 6,983 $ 192 2.7 % $ 25,458 $ 24,930 $ 528 2.1 %
−Removed: Operating expenses excluding depreciation and amortization expense were relatively flat for the three and six months ended June 30, 2023 compared to the same periods in the prior year as lower Summer Jam production costs were partially offset by noncash lease expense related to the new office lease that commenced in February 2023 and professional service fees, which were mainly incurred during the first quarter.
+Added: Operating expenses excluding depreciation and amortization expense increased for the nine months ended September 30, 2023 compared to the same period in the prior year as lower Summer Jam production costs were partially offset by noncash lease expense related to the new office lease that commenced in February 2023 and professional service fees, which were mainly incurred during the first quarter.
+Added: Operating expenses excluding depreciation and amortization expense increased for the three months ended September 30, 2023 compared to the same period in the prior year due to noncash lease expense related to the new office lease that commenced in February 2023.
Corporate expenses:
−Removed: (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023
+Added: (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023
2023 2022 $ Change % Change 2023 2022 $ Change % Change
Corporate expenses $ 1,095 $ 1,460 $ (365) (25.0) % $ 3,981 $ 5,286 $ (1,305) (24.7) %
−Removed: Corporate expenses decreased for the three and six months ended June 30, 2023 due to lower stock based compensation expense driven by higher stock-based bonuses awarded in the prior year, partially offset by higher professional service fees.
+Added: Corporate expenses decreased for the nine months ended September 30, 2023 due to lower stock based compensation expense driven by higher stock-based bonuses awarded in the prior year, partially offset by higher professional service fees.
+Added: Corporate expenses decreased for the three months ended September 30, 2023 due to lower stock based compensation expense.
Depreciation and amortization:
−Removed: (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023
+Added: (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023
2023 2022 $ Change % Change 2023 2022 $ Change % Change
Depreciation and amortization $ 130 $ 99 $ 31 31.3 % $ 437 $ 314 $ 123 39.2 %
−Removed: Depreciation and amortization expense increased for the three and six months ended June 30, 2023 due to intangible software costs related to our updated websites and mobile applications placed in service in the third quarter of 2022.
−Removed: Gain on disposal of assets:
−Removed: (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023
+Added: Depreciation and amortization expense increased for the three and nine months ended September 30, 2023 due to intangible software costs related to our updated websites and mobile applications placed in service in the third quarter of 2022.
+Added: Loss (gain) on disposal of assets:
+Added: (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023
2023 2022 $ Change % Change 2023 2022 $ Change % Change
−Removed: Gain on disposal of assets $ — $ — $ — — % $ (39) $ — $ (39) — %
−Removed: The gain on disposal of assets relates to the sale of vehicles in the first quarter of 2023.
+Added: Loss (gain) on disposal of assets $ 11 $ — $ 11 — % $ (28) $ — $ (28) — %
+Added: The gain on disposal of assets for the nine months ended September 30, 2023 relates to the sale of vehicles in the first quarter of 2023.
+Added: The loss on disposal of assets for the three months ended September 30, 2023 relates to disposals of assets related to our previous office location.
Operating loss:
−Removed: (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023
+Added: (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023
2023 2022 $ Change % Change 2023 2022 $ Change % Change
2 unchanged sentences
Interest expense, net:
−Removed: (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023
+Added: (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023
2023 2022 $ Change % Change 2023 2022 $ Change % Change
Interest expense, net $ (87) $ (1,666) $ 1,579 (94.8) % $ (306) $ (5,672) $ 5,366 (94.6) %
−Removed: Interest expense, net decreased for the three and six months ended June 30, 2023 due to the pay down in December 2022 of the senior credit facility, the conversion in July 2022 of the outstanding principal and accrued but unpaid interest of the SG Broadcasting promissory notes into the Company’s Class A common stock, the partial conversions in August and December 2022 of $0.9 million of the outstanding principal of the Emmis convertible promissory notes into the Company’s Class A common stock, as well as a lower interest rate on the outstanding Emmis convertible promissory note after the pay down of the senior credit facility.
+Added: Interest expense, net decreased for the three and nine months ended September 30, 2023 due to the pay down in December 2022 of the senior credit facility, the conversion in July 2022 of the outstanding principal and accrued but unpaid interest of the SG Broadcasting promissory notes into the Company’s Class A common stock, and the partial conversions in August and December 2022 of $0.9 million of the outstanding principal of the Emmis convertible promissory notes into the Company’s Class A common stock, as well as a lower interest rate on the outstanding Emmis convertible promissory note after the pay down of the senior credit facility.
This was partially offset by accrued interest on the Emmis convertible promissory note being paid in kind in the fourth quarter of 2022.
Provision for income taxes:
−Removed: (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023
+Added: (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023
2023 2022 $ Change % Change 2023 2022 $ Change % Change
2 unchanged sentences
Consolidated net loss:
−Removed: (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023
+Added: (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023
2023 2022 $ Change % Change 2023 2022 $ Change % Change
4 unchanged sentences
Our primary uses of capital have been, and are expected to continue to be, capital expenditures, working capital and acquisitions.
−Removed: At June 30, 2023 , we had cash, cash equivalents and restricted cash of $10.1 million and net working capital of $13.8 million.
+Added: At September 30, 2023 , we had cash, cash equivalents and restricted ca sh of $9.6 million and net working capital of $10.3 million .
At December 31, 2022, we had cash, cash equivalents and restricted cash of $15.3 million and net working capital of $13.3 million.
−Removed: The decrease in cash was driven by payment of income taxes related to the gain on sale of Fairway while net working capital remained relatively flat.
−Removed: At June 30, 2023, we had $6.0 million of promissory notes outstanding to Emmis under the Emmis Convertible Promissory Note, all of which was classified as long-term and has no debt service requirements over the next twelve months.
+Added: The decrease in cash was driven by payment of income taxes related to the gain on sale of Fairway and lower accounts receivable as sales declined in the current year.
+Added: At September 30, 2023, we had $6.0 million of promissory notes outstanding to Emmis under the Emmis Convertible Promissory Note, all of which was classified as long-term and has no debt service requirements over the next twelve months.
As part of our business strategy, we continually evaluate potential acquisitions of businesses that we believe hold promise for long-term appreciation in value and leverage our strengths.
−Removed: Cash flows used by continuing operating activities were $3.7 million compared to cash flows provided by $3.3 million for the six months ended June 30, 2023 and 2022, respectively.
−Removed: The decrease was mainly attributable to payments of income taxes, lower collections of accounts receivable in the current year, strong collections in accounts receivable in the prior year and the timing of payments related to Summer Jam production costs.
−Removed: Cash flows used in continuing investing activities were $0.9 million for the six months ended June 30, 2023, attributable to capital expenditures related to a new digital platform project and our build out of our new space for radio operations and corporate offices .
−Removed: Cash flows used in continuing investing activities were $1.0 million for the six months ended June 30, 2022, attributable to purchases of internally-created software.
−Removed: Cash flows used in continuing financing activities were $1.0 million for the six months ended June 30, 2023, attributable to repurchases of our Class A common stock and settlement of tax withholding obligations.
−Removed: Cash flows used in continuing financing activities were $2.1 million for the six months ended June 30, 2022, attributable to settlement of tax withholding obligations and payments of long-term debt.
+Added: Cash flows used by continuing operating activities were $3.7 million compared to cash flows provided by $3.4 million for the nine months ended September 30, 2023 and 2022, respectivel y.
+Added: The decrease was mainly attributable to payments of income taxes, lower collections of accounts receivable in the current year, and strong collections in accounts receivable in the prior year.
+Added: Cash flows used in continuing investing activities were $1.1 million for the nine months ended September 30, 2023, attributable to capital expenditures related to a new digital platform project and our build out of our new space for radio operations and corporate offices.
+Added: C ash flows used in continuing investing activities were $1.4 million for the nine months ended September 30, 2022, attributable to purchases of internally-created software.
+Added: Cash flows used in continuing financing activities were $1.1 million for the nine months ended September 30, 2023, attributable to repurchases of our Class A common stock and settlement of tax withholding obligations.
+Added: Cash flows used in continuing financing activities were $3.1 million for the nine months ended September 30, 2022, attributable to settlement of tax withholding obligations and payments of long-term debt.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.