Item 2. Management’s Discussion and Analysis
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
This report contains forward-looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the radio broadcasting industry, the economy, and the Company. Words such as “anticipates,” “believes,” “expects,” “intends,” “is likely,” “plans,” “projects,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. We undertake no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events (whether anticipated or unanticipated), or otherwise.
Future Factors include, among others, adverse changes in interest rates and interest rate relationships; our financial leverage and debt service requirements; dependence on key personnel; dependence on key stations; U.S. national and local economic conditions or an economic recission; market volatility; demand for our services; the degree of competition by traditional and non-traditional competitors; our ability to successfully integrate acquired stations; regulatory requirements; governmental and regulatory policy changes; changes in tax laws; the impact of technological advances; risks associated with cyber-attacks on our computer systems and those of our vendors; the outcomes of contingencies; trends in audience behavior; damage to our reputation resulting from adverse publicity, regulatory actions, litigation, operational failures, the failure to meet client or listener expectations and other facts; changes in local real estate values; natural disasters; terrorist attacks; the war in Ukraine, the effects of the ongoing COVID-19 pandemic, inflation; increased energy costs; and risk factors described in our annual report on Form 10-K for the year ended December 31, 2021 or in this Report. These are representative of the Future Factors that could cause a difference between an ultimate actual outcome and a forward-looking statement.
Introduction
The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes thereto of Saga Communications, Inc. and its subsidiaries contained elsewhere herein and the audited financial statements and Management’s Discussion and Analysis contained in our annual report on Form 10-K for the year ended December 31, 2021. The following discussion is presented on a consolidated basis.
Critical Accounting Policies and Estimates
Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP), which require us to make estimates, judgments and assumptions that affect the reported amounts of certain assets, liabilities, revenues, expenses and related disclosures and contingencies. We evaluate estimates used in preparation of our financial statements on a continual basis. There have been no significant changes to our critical accounting policies that are described in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies” in our annual report on Form 10-K for the year ended December 31, 2021.
We use certain financial measures that are not calculated in accordance with generally accepted accounting principles in the United States of America (GAAP) to assess our financial performance. For example, we evaluate the performance of our markets based on “station operating income” (operating income plus corporate general and administrative expenses, depreciation and amortization, other operating (income) expenses, and impairment of intangible assets). Station operating income is generally recognized by the broadcasting industry as a measure of performance, is used by analysts who report on the performance of the broadcasting industry and serves as an indicator of the market value of a group of stations. In addition, we use it to evaluate individual stations, market-level performance, overall operations and as a primary measure for incentive based compensation of executives and other members of management. Station operating income is not necessarily indicative of amounts that may be available to us for debt service requirements, other commitments, reinvestment or other discretionary uses. Station operating income is not a measure of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to, and not a substitute for our results of operations presented on a GAAP basis.
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COVID-19 Impact and Response
As the circumstances around the COVID-19 pandemic remain fluid, we continue to actively monitor the pandemic’s impact to the Company, including our financial position, liquidity, results of operations and cash flows, while managing our response to the impacts and developments relating to the pandemic through collaboration with employees, customers, government authorities, health officials and other business partners. Please see Part I, Item 1A, Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for further information regarding the current and potential impact of health epidemics, including the COVID-19 pandemic on the Company.
Financial Condition and Results of Operations
General
We are a broadcast company primarily engaged in acquiring, developing and operating broadcast properties. We actively seek and explore opportunities for expansion through the acquisition of additional broadcast properties. We review acquisition opportunities on an ongoing basis. For additional information with respect to acquisitions, see “Liquidity and Capital Resources” below. We own or operate broadcast properties in 27 markets, including 79 FM and 35 AM radio stations and 80 metro signals.
Radio Stations
Our radio stations’ primary source of revenue is from the sale of advertising for broadcast on our stations. Depending on the format of a particular radio station, there are a predetermined number of advertisements available to be broadcast each hour.
Most advertising contracts are short-term and generally run for a few weeks only. The majority of our revenue is generated from local advertising, which is sold primarily by each radio market’s sales staff. For the six months ended June 30, 2022 and 2021, approximately 90% and 89%, respectively, of our radio stations’ gross revenue was from local advertising. To generate national advertising sales, we engage independent advertising sales representative firms that specialize in national sales for each of our broadcast markets.
Our revenue varies throughout the course of the year. Advertising expenditures, our primary source of revenue, generally have been lowest during the winter months, which include the first quarter of each year. Furthermore, we expect an increase in political advertising for 2022 due to the increased number of national, state and local elections in most of our markets as compared to the prior year.
Our net operating revenue, station operating expense and operating income varies from market to market based upon each market’s rank or size which is based upon population and the available radio advertising revenue in that particular market.
The broadcasting industry and advertising in general, is influenced by the state of the overall economy, including unemployment rates, inflation, energy prices and consumer interest rates. Our stations primarily broadcast in small to midsize markets. Historically, such markets have been more stable than major metropolitan markets during downturns in advertising spending, but may not experience increases in such spending as significant as those in major metropolitan markets in periods of economic improvement.
Our financial results are dependent on a number of factors, the most significant of which is our ability to generate advertising revenue through rates charged to advertisers. The rates a station is able to charge are, in large part, based on a station’s ability to attract audiences in the demographic groups targeted by its advertisers. In a number of our markets, this is measured by periodic reports generated by independent national rating services. In the remainder of our markets it is measured by the results advertisers obtain through the actual running of an advertising schedule. Advertisers measure these results based on increased demand for their goods or services and/or actual revenues generated from such demand. Various factors affect the rate a station can charge, including the general strength of the local and national economies, population growth, ability to provide popular programming, local market competition, target marketing capability of radio compared to other advertising media, and signal strength.
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When we acquire and/or begin to operate a station or group of stations we generally increase programming and advertising and promotion expenses to increase our share of our target demographic audience. Our strategy sometimes requires levels of spending commensurate with the revenue levels we plan on achieving in two to five years. During periods of economic downturns, or when the level of advertising spending is flat or down across the industry, this strategy may result in the appearance that our cost of operations is increasing at a faster rate than our growth in revenues, until such time as we achieve our targeted levels of revenue for the acquired station or group of stations.
The number of advertisements that can be broadcast without jeopardizing listening levels (and the resulting ratings) is limited in part by the format of a particular radio station. Our stations strive to maximize revenue by constantly managing the number of commercials available for sale and adjusting prices based upon local market conditions and ratings. While there may be shifts from time to time in the number of advertisements broadcast during a particular time of day, the total number of advertisements broadcast on a particular station generally does not vary significantly from year to year. Any change in our revenue, with the exception of those instances where stations are acquired or sold, is generally the result of inventory sell-out ratios and pricing adjustments, which are made to ensure that the station efficiently utilizes available inventory.
Our radio stations employ a variety of programming formats. We periodically perform market research, including music evaluations, focus groups and strategic vulnerability studies. Because reaching a large and demographically attractive audience is crucial to a station’s financial success, we endeavor to develop strong listener loyalty. Our stations also employ audience promotions to further develop and secure a loyal following. We believe that the diversification of formats on our radio stations helps to insulate us from the effects of changes in musical tastes of the public on any particular format.
The primary operating expenses involved in owning and operating radio stations are employee salaries, sales commissions, programming expenses, depreciation, and advertising and promotion expenses.
The radio broadcasting industry is subject to rapid technological change, evolving industry standards and the emergence of new media technologies and services. These new technologies and media are gaining advertising share against radio and other traditional media.
We are continuing to expand our digital initiative to provide a seamless experience across multiple platforms. Our goal is to allow our listeners to connect with our brands on demand, wherever, however and whenever they choose. We continue to create opportunities through targeted digital advertising and an array of digital services that include online promotions, mobile messaging, and email marketing.
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During the six months ended June 30, 2022 and 2021 and the years ended December 31, 2021 and 2020, our Columbus, Ohio; Des Moines, Iowa; Milwaukee, Wisconsin, Norfolk; Virginia and Portland, Maine markets, when combined, represented approximately 38%, 39%, 39% and 40%, respectively, of our consolidated net operating revenue. An adverse change in any of these radio markets or our relative market position in those markets could have a significant impact on our operating results as a whole.
The following table describes the percentage of our consolidated net operating revenue represented by each of these markets:
Percentage of Consolidated
Percentage of Consolidated
Net Operating Revenue for
Net Operating Revenue
the Six Months Ended
for the Years Ended
June 30,
December 31,
2022
2021
2021
2020
Market:
Columbus, Ohio
10
%
10
%
10
%
10
%
Des Moines, Iowa
5
%
6
%
6
%
7
%
Milwaukee, Wisconsin
12
%
11
%
11
%
11
%
Norfolk, Virginia
6
%
7
%
6
%
6
%
Portland, Maine
5
%
5
%
6
%
6
%
During the six months ended June 30, 2022 and 2021 and the years ended December 31, 2021 and 2020, the radio stations in our five largest markets, when combined, represented approximately 43%, 41%, 43% and 52%, respectively, of our consolidated station operating income. We note that the percentage of consolidated station operating income at December 31, 2020 is higher than what would normally be expected due to the impact of the COVID-19 pandemic on our markets. The following table describes the percentage of our consolidated station operating income represented by each of these markets:
Percentage of Consolidated
Percentage of Consolidated
Station Operating Income (*)
Station Operating Income(*)
for the Six Months Ended
for the Years Ended
June 30,
December 31,
2022
2021
2021
2020
Market:
Columbus, Ohio
13
%
13
%
12
%
16
%
Des Moines, Iowa
3
%
4
%
5
%
7
%
Milwaukee, Wisconsin
15
%
11
%
12
%
15
%
Norfolk, Virginia
7
%
7
%
7
%
6
%
Portland, Maine
5
%
6
%
7
%
8
%
*
Operating income adjusted for corporate general and administrative expenses, depreciation and amortization, other operating (income) expenses, and impairment of intangible assets.
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Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021
Results of Operations
The following table summarizes our results of operations for the three months ended June 30, 2022 and 2021.
Consolidated Results of Operations
Three Months Ended
June 30,
$ Increase
% Increase
2022
2021
(Decrease)
(Decrease)
(In thousands, except percentages and per share information)
Net operating revenue
$
29,821
$
28,046
$
1,775
6.3
%
Station operating expenses
21,786
21,017
769
3.7
%
Corporate general and administrative
2,609
2,494
115
4.6
%
Other operating (income) expense, net
45
(80)
125
N/M
Operating income
5,381
4,615
766
16.6
%
Interest expense
32
72
(40)
(55.6)
%
Interest income
(49)
(4)
(45)
N/M
Other income
—
(31)
31
N/M
Income before income tax expense
5,398
4,578
820
17.9
%
Income tax expense
1,575
1,325
250
18.9
%
Net income
$
3,823
$
3,253
$
570
17.5
%
Earnings per share (diluted)
$
0.63
$
0.54
$
0.09
16.7
%
N/M = Not Meaningful
For the three months ended June 30, 2022, consolidated net operating revenue was $29,821,000 compared with $28,046,000 for the three months ended June 30, 2021, an increase of $1,775,000 or 6.3%. We had increases in non-spot gross revenue of $623,000, gross interactive revenue of $597,000, gross local revenue of $519,000, gross political revenue of $357,000, and barter revenue of $176,000, partially offset by a decrease in gross national revenue of $409,000 and an increase in agency commissions of $141,000, from the second quarter of 2021. The increase in non-spot gross revenue is primarily due to us hosting events again in 2022, whereas the number of events that were held in the second quarter of 2021 due to the COVID-19 pandemic was relatively very few. The markets with the most significant increases in the second quarter in non-spot events were Clarksville, Tennessee; Harrisonburg, Virginia; Hilton Head, South Carolina; Jonesboro, Arkansas; Milwaukee, Wisconsin; Norfolk, Virginia and Yankton, South Dakota. The increase in gross interactive revenue is primarily due to an increase in our streaming and website content revenue. The most significant increases in gross local revenue and agency commissions occurred in our Charleston, South Carolina; Columbus, Ohio; Ithaca, New York; Manchester, New Hampshire; Milwaukee, Wisconsin, and Norfolk, Virginia markets. The gross political revenue increased due to an increase in the number of national, state and local elections. The decrease in gross national revenue was attributable to decreases at the majority of markets due to the focus on local market advertisers offset by increases at our Bellingham, Washington; and Milwaukee, Wisconsin markets.
Station operating expense was $21,786,000 for the three months ended June 30, 2022, compared with $21,017,000 for the three months ended June 30, 2021, an increase of $769,000 or 3.7%. The increase in operating expense was primarily a result of increases in sales rating survey expenses, barter expenses, commission expense, music licensing fees, interactive services expenses, and promotional expenses, of $303,000, $161,000, $148,000, $95,000, $86,000, and $69,000, respectively, from the second quarter of 2021.
We had operating income for the three months ended June 30, 2022 of $5,381,000 compared to $4,615,000 for the three months ended June 30, 2021, an increase of $766,000. The increase was a result of the increase in net operating revenue partially offset by the increase in station operating expense, noted above, an increase in corporate general and administrative expenses of $115,000, an increase in other operating (income) expense, net of $125,000. The increase in corporate general and administrative expenses was primarily attributable to an increase in compensation related expenses from second quarter of 2021. In the second quarter of 2022 we recorded a loss on the sale of fixed assets of $45,000 compared to a gain on the sale of fixed assets of $80,000 in the second quarter of 2021 in other operating (income) expense, net.
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We generated net income of $3,823,000 ($0.63 per share on a fully diluted basis) during the three months ended June 30, 2022, compared to $3,253,000 ($0.54 per share on a fully diluted basis) for the three months ended June 30, 2021, an increase of $570,000. The increase in net income is primarily due to the increase in operating income, described above a decrease in interest expense of $40,000, an increase in interest income of $45,000, partially offset by a decrease in other income of $31,000 and an increase in income tax expense of $250,000. The decrease in interest expense is due to no longer having any debt outstanding, after paying off the remaining balance in the fourth quarter of 2021. The increase in interest income is related to our short-term investments described in footnote 1 (Summary of Significant Accounting Policies). The increase in our income tax expense is due to the increase in income before income tax.
Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021
Results of Operations
The following table summarizes our results of operations for the six months ended June 30, 2022 and 2021.
Six Months Ended
June 30,
$ Increase
% Increase
2022
2021
(Decrease)
(Decrease)
(In thousands, except percentages and per share information)
Net operating revenue
$
54,788
$
50,347
$
4,441
8.8
%
Station operating expenses
42,354
39,940
2,414
6.0
%
Corporate general and administrative
5,303
4,932
371
7.5
%
Other operating (income) expense, net
40
(23)
63
N/M
Operating income
7,091
5,498
1,593
29.0
%
Interest expense
64
145
(81)
(55.9)
%
Interest income
(53)
(10)
(43)
430.0
%
Other income
(2)
(303)
301
N/M
Income before income tax expense
7,082
5,666
1,416
25.0
%
Income tax expense
2,055
1,655
400
24.2
%
Net income
$
5,027
$
4,011
$
1,016
25.3
%
Earnings per share (diluted)
$
.83
$
.67
$
.16
23.9
%
N/M = Not Meaningful
For the six months ended June 30, 2022, consolidated net operating revenue was $54,788,000 compared with $50,347,000 for the six months ended June 30, 2021, an increase of $4,441,000 or 8.8%. We had increases in gross local revenue of $2,347,000, gross interactive revenue of $1,345,000, non-spot gross revenue of $962,000, gross political revenue of $267,000, and barter revenue of $262,000 partially offset by a decrease in gross national revenue of $588,000, and an increase in agency commissions of $219,000 for the comparable period of 2021. The most significant increases in gross local revenue and agency commissions occurred in our Charleston, South Carolina; Columbus, Ohio; Ithaca, New York; Manchester, New Hampshire; Milwaukee, Wisconsin; Norfolk, Virginia; and Portland, Maine markets. The increase in gross interactive revenue is primarily due to an increase in our streaming and website content revenue. The increase in non-spot gross revenue is primarily due to us hosting events again in 2022, whereas the number of events that were held in 2021 due to the COVID-19 pandemic was relatively very few. The markets with the most significant increases in 2022 in non-spot events were Clarksville, Tennessee; Harrisonburg, Virginia; Hilton Head, South Carolina; Jonesboro, Arkansas; Milwaukee, Wisconsin; Norfolk, Virginia; Portland, Maine and Yankton, South Dakota. The gross political revenue increased due to an increase in the number of national, state and local elections. The decrease in gross national revenue was attributable to decreases at the majority of markets due to the focus on local market advertisers offset by increases at our Columbus, Ohio; Manchester, New Hampshire; and Milwaukee, Wisconsin markets.
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Station operating expense was $42,354,0000 for the six months ended June 30, 2022, compared with $39,940,000 for the six months ended June 30, 2021, an increase of $2,414,000 or 6.0%. The increase in operating expense was primarily the result of increases in sales survey expenses, commission expenses, barter expenses, interactive services expenses, music licensing fees; bad debt expense, compensation related expenses and promotional expenses of $818,000, $403,000, $294,000, $220,000, $193,000, $186,000, $131,000 and $90,000, respectively, for the comparable period of 2021.
We had operating income for the six months ended June 30, 2022 of $7,091,000 compared to $5,498,000 for the six months ended June 30, 2021, an increase of $1,593,000. The increase was a result of the increase in net operating revenue and partially offset by an increase in station operating expense, noted above, partially offset by an increase in corporate general and administrative expenses of $371,000 and an increase in other operating (income) expense of $63,000. The increase in corporate general and administrative expenses was primarily attributable to increases in compensation-related expenses of $136,000, legal expenses of $99,000, travel and transportation expenses of $77,000, insurance-related expenses of $63,000, respectively, from the comparable period of 2021. In 2022 we recorded a loss on the sale of fixed assets of $40,000 compared to a gain on the sale of fixed assets of $23,000 in 2021 in other operating (income) expense, net.
We generated net income of $5,027,000 ($0.83 per share on a fully diluted basis) during the six months ended June 30, 2022, compared to $4,011,000 ($0.67 per share on a fully diluted basis) for the six months ended June 30, 2021, an increase of $1,016,000. The increase in net income is primarily due to the increase in operating income, described above a decrease in interest expense of $81,000, an increase in interest income of $43,000, partially offset by a decrease in other income of $301,000 and an increase in income tax expense of $400,000. The decrease in interest expense is due to no longer having any debt outstanding, after paying off the remaining balance in the fourth quarter of 2021. The increase in interest income is related to our short-term investments described in footnote 1 (Summary of Significant Accounting Policies). The decrease in other income is due to minimal income in 2022 versus a gain on insurance proceeds in the 2021, as described in footnote 13 (Other Income). The increase in our income tax expense is due to the increase in income before income tax.
Liquidity and Capital Resources
Debt Arrangements and Debt Service Requirements
On August 18, 2015, we entered into a new credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A., The Huntington National Bank, Citizens Bank, National Association and J.P. Morgan Securities LLC (collectively, the “Lenders”) pursuant to a credit agreement of even date (the “Credit Agreement”). The Credit Facility consisted of a $100 million five-year revolving facility (the “Revolving Credit Facility”) and originally matured on August 18, 2020. On June 27, 2018, the Company entered into a Second Amendment to its Credit Facility, (the “Second Amendment”), which had first been amended on September 1, 2017, extending the revolving credit maturity date under the Credit Agreement for five years after the date of the amendment to June 27, 2023. On July 1, 2019, we elected to reduce our Revolving Credit Facility to $70 million. On May 11, 2020, as part of our reincorporation as a Florida corporation, we entered into an assumption agreement and amendment of loan documents. This amendment also included an alternative benchmark rate as a replacement to LIBOR in the event LIBOR is no longer available. On November 2, 2021, we elected to further reduce our Revolving Credit Facility to $50 million.
We have pledged substantially all of our assets (excluding our FCC licenses and certain other assets) in support of the Credit Facility and each of our subsidiaries has guaranteed the Credit Facility and has pledged substantially all of their assets (excluding their FCC licenses and certain other assets) in support of the Credit Facility.
Approximately $266,000 of debt issuance costs related to the Credit Facility were capitalized and are being amortized over the life of the Credit Facility. These debt issuance costs are included in other assets, net in the consolidated balance sheets. As a result of the Second Amendment, the Company incurred an additional $120,000 of transaction fees related to the Credit Facility that were capitalized. The cumulative transaction fees are being amortized over the remaining life of the Credit Facility.
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Interest rates under the Credit Facility are payable, at our option, at alternatives equal to LIBOR (1.579% at June 30, 2022), plus 1% to 2% or the base rate plus 0% to 1%. The spread over LIBOR and the base rate vary from time to time, depending upon our financial leverage. As previously noted, the May 11, 2020 amendment to the Credit Facility includes an alternative to LIBOR in the event LIBOR is no longer available. Letters of credit issued under the Credit Facility will be subject to a participation fee (which is equal to the interest rate applicable to Eurocurrency Loans, as defined in the Credit Agreement) payable to each of the Lenders and a fronting fee equal to 0.25% per annum payable to the issuing bank. We also pay quarterly commitment fees of 0.2% to 0.3% per annum on the unused portion of the Revolving Credit Facility.
The Credit Facility contains a number of financial covenants (all of which we were in compliance with at June 30, 2022) which, among other things, require us to maintain specified financial ratios and impose certain limitations on us with respect to investments, additional indebtedness, dividends, distributions, guarantees, liens and encumbrances.
On October 27, 2021, we used $10 million from funds generated by operations to voluntarily pay down the remaining amount on our Revolving Credit Facility.
We had approximately $50 million of unused borrowing capacity under the Revolving Credit Facility at June 30, 2022.
Sources and Uses of Cash
During the six months ended June 30, 2022 and 2021, we had net cash flows from operating activities of $7,340,000 and $9,203,000, respectively. We believe that cash flow from operations will be sufficient to meet quarterly debt service requirements for payments of interest and principal under our Credit Facility if we borrow in the future. However, if such cash flow is not sufficient we may be required to sell additional equity securities, refinance our obligations or dispose of one or more of our properties in order to make such scheduled payments. There can be no assurance that we would be able to effect any such transactions on favorable terms, if at all.
In March 2013, our board of directors authorized an increase to our Stock Buy-Back Program (the “Buy-Back Program”) to allow us to purchase up to $75.8 million of our Class A Common Stock. From its inception in 1998 through June 30, 2022, we have repurchased 2.2 million shares of our Class A Common Stock for $57.4 million. During the three and six months ended June 30, 2022, we did not repurchase any shares related to the Buy-Back Program. Given the unprecedented uncertainty surrounding the current economic environment including interest rates, inflation and ongoing global turmoil we currently have no directions issued for any additional buybacks under our plan.
Our capital expenditures, exclusive of acquisitions, for the six months ended June 30, 2022 were $3,563,000 ($1,455,000 in 2021). We anticipate capital expenditures in 2022 to be approximately $5.5 million to $6.0 million, which we expect to finance through funds generated from operations.
On July 12, 2021, we entered into an agreement to acquire WIZZ-AM and a translator from P. & M. Radio for $61,800 of which $5,000 was paid in 2021 and the remaining was paid on April 6, 2022 when we closed on the transaction. Management attributes the goodwill recognized in the acquisition to the power of the existing brands in the Greenfield, Massachusetts market as well as synergies and growth opportunities expected through the combination with the Company’s existing stations. The translators are start-up stations and therefore, have no pro forma revenue and expenses.
On January 8, 2021, the Company closed on an agreement to purchase WBQL and W288DQ from Consolidated Media, LLC, for an aggregate purchase price of $175,000, of which $25,000 was paid in 2020 and the remaining $150,000 paid in 2021. Management attributes the goodwill recognized in the acquisition to the power of the existing brands in the Clarksville, Tennessee market as well as synergies and growth opportunities expected through the combination with the Company’s existing stations.
On June 6, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share on its Classes A and B Common Stock. This dividend, totaling approximately $1,200,000, was paid to our transfer agent on June 29, 2022. The dividend was paid by our transfer agent on July 1, 2022 to shareholders of record on June 13, 2022.
On March 1, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per share on its Classes A and B Common Stock. This dividend, totaling approximately $970,000, was paid on April 8, 2022 to shareholders of record on March 21, 2022.
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On December 14, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per share and special cash dividend of $0.50 per share on its Classes A and B Common Stock. This dividend, totaling approximately $3,988,000, was paid on January 14, 2022 to shareholders of record on December 27, 2021.
On September 28, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per share on its Classes A and B Common Stock. This dividend, totaling approximately $960,000, was paid on October 22, 2021 to shareholders of record on October 8, 2021.
On June 18, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per share on its Classes A and B Common Stock. This dividend, totaling approximately $960,000, was paid on July 16, 2021 to shareholders of record on June 30, 2021 and was recorded in dividends payable on the Company’s Condensed Consolidated Balance sheet at June 30, 2021. The Company had previously temporarily suspended the quarterly cash dividend in response to the uncertainty of the ongoing impact of COVID-19 as of June 18, 2020.
We continue to actively seek and explore opportunities for expansion through the acquisitions of additional broadcast properties.
We anticipate that any future acquisitions of radio stations and dividend payments will be financed through funds generated from operations, borrowings under the Credit Agreement, additional debt or equity financing, cash on hand, or a combination thereof. However, there can be no assurances that any such financing will be available on acceptable terms, if at all.
Summary Disclosures About Contractual Obligations and Commercial Commitments
We have future cash obligations under various types of contracts, including the terms of our Credit Facility, operating leases, programming contracts, employment agreements, and other operating contracts. For additional information concerning our future cash obligations see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation — Summary Disclosures About Contractual Obligations” in our annual report on Form 10-K for the year ended December 31, 2021.
We anticipate that our contractual cash obligations will be financed through funds generated from operations or additional borrowings under the Credit Facility, or a combination thereof.
Recent Accounting Pronouncements
Recent accounting pronouncements are described in Note 2 to the accompanying financial statements.
Inflation
The impact of inflation on our operations has not been significant to date. We are, however, starting to see the effects of higher inflation starting to impact costs of most goods and services. There can be no assurance that a high rate of inflation in the future would not have an adverse effect on our operations.
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