What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-05-10 compared with 2023-11-09 · 69 added, 142 removed, 147 unchanged (59% of the section changed)

1 unchanged sentence

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,” “can,” “could,” “endeavors” “expects,” “intends,” “is likely,” “may,” “plans,” “projects,” “seeks,” “will,” “would,” and variations of such words and similar expressions are intended to identify such forward-looking statements.

This quarterly report on Form 10-Q contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements may be identified by the use of forward-looking terms such as “will,” “may,” “believes,” “intends,” “expects,” “anticipates,” “plans,” “estimates,” “guidance,” and similar expressions are intended to identify forward-looking statements that are not historical facts.

These statements are made as of the date of this report or as otherwise indicated, based on current expectations.

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.

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dependence on key personnel;

dependence on key stations;

dependence on key stations and the advertising revenue they generate;

national and local economic conditions or an economic recession;

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our ability to successfully integrate acquired stations;

regulatory requirements;

regulatory requirements including royalties we pay;

governmental and regulatory policy changes;

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increased energy costs;

and risk factors described in our annual report on Form 10-K for the year ended December 31, 2022 or in this Report.

and risk factors described in our annual report on Form 10-K for the year ended December 31, 2023 or in this quarterly report.

These are representative of the Future Factors that could cause a difference between an ultimate actual outcome and a forward-looking statement.

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Financial Condition and Results of Operations

We are a broadcast company primarily engaged in acquiring, developing and operating broadcast properties.

We are a media company primarily engaged in acquiring, developing and operating broadcast properties including opportunities complimentary to our core radio business including digital, e-commerce and non-traditional revenue initiatives.

We actively seek and explore opportunities for expansion through the acquisition of additional broadcast properties.

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We own or operate broadcast properties in 27 markets, including 79 FM and 31 AM radio stations and 78 metro signals.

We anticipate our corporate general and administrative expense to decrease from 2022 significantly because of approximately $3.8 million in expenses incurred related to the passing of our former CEO, Edward Christian and payments required as a result of his death.

This reduction will be partially offset, however, by an increase in directors’ fees of $312,000 and by investments we have made in additional corporate personnel directly attributable to sales and training initiatives.

Radio Stations

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The majority of our revenue is generated from local advertising, which is sold primarily by each radio market’s sales staff.

For the nine months ended September 30, 2023 and 2022, approximately 90% and 90%, respectively, of our radio stations’ gross revenue was from local advertising.

For the three months ended March 31, 2024 and 2023, approximately 90% and 90%, 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.

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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 political revenue in 2023 to decrease from 2022 levels as a result of fewer elections at the national, state and local levels.

Furthermore, we expect political revenue in 2024 to increase from 2023 levels as a result of more elections at the national, state and local levels.

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.

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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, sales survey and ratings expenses, health insurance expense, programming expenses including music licensing fees, depreciation, and advertising and promotion expenses.

The primary operating expenses involved in owning and operating radio stations are employee salaries and related benefit costs, 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.

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Our goal is to allow our listeners to connect with our brands on demand, wherever, however and whenever they choose.

We continue to create and expand opportunities for revenue generation through targeted digital advertising, online community news, entertainment and events and an array of digital services that include online promotions, mobile messaging, and email marketing.

During the nine months ended September 30, 2023 and 2022 and the years ended December 31, 2022 and 2021, our Columbus, Ohio;

We continue to create and expand opportunities through targeted digital advertising, online community news, entertainment and events and an array of digital services that include online promotions, mobile messaging, and email marketing.

During the three months ended March 31, 2024 and 2023 and the years ended December 31, 2023 and 2022, our Charleston, South Carolina:

Columbus, Ohio;

Des Moines, Iowa;

Milwaukee, Wisconsin;

Norfolk, Virginia;

and Portland, Maine markets, when combined, represented approximately 36%, 38%, 38% and 39%, respectively, of our consolidated net operating revenue.

and Norfolk, Virginia markets, when combined, represented approximately 35%, 37%, 37% and 39%, 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.

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Net Operating Revenue

the Nine Months Ended

the Three Months Ended

for the Years Ended

September 30,

Charleston, South Carolina

Columbus, Ohio

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Norfolk, Virginia

Portland, Maine

During the nine months ended September 30, 2023 and 2022 and the years ended December 31, 2022 and 2021, the radio stations in our five largest markets, when combined, represented approximately 40%, 44%, 44% and 43%, respectively, of our consolidated station operating income.

During the three months ended March 31, 2024 and 2023 and the years ended December 31, 2023 and 2022, the radio stations in our five largest markets, when combined, represented approximately 38%, 40%, 40% and 43%, respectively, of our consolidated station operating income.

The following table describes the percentage of our consolidated station operating income represented by each of these markets:

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Station Operating Income(*)

for the Nine Months Ended

for the Three Months Ended

for the Years Ended

September 30,

Charleston, South Carolina

Columbus, Ohio

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Norfolk, Virginia

Portland, Maine

Operating income adjusted for corporate general and administrative expenses, depreciation and amortization, other operating (income) expenses, and impairment of intangible assets.

Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022

Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Results of Operations

The following table summarizes our results of operations for the three months ended September 30, 2023 and 2022.

Consolidated Results of Operations

The following table summarizes our results of operations for the three months ended March 31, 2023 and 2022.

Three Months Ended

September 30,

(In thousands, except percentages and per share information)

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Corporate general and administrative

Other operating (income) expense, net

Operating income

Interest expense

Interest income

Income before income tax expense

Income tax provision

Net income (loss)

Earnings per share (diluted)

N/M = Not Meaningful

For the three months ended September 30, 2023, consolidated net operating revenue was $29,149,000 compared with $29,980,000 for the three months ended September 30, 2022, a decrease of $831,000 or 2.8%.

We had decreases in gross local revenue of $1,052,000 and gross political revenue of $624,000, partially offset by increases in gross interactive revenue of $696,000 and gross non-spot revenue of $156,000, from the third quarter of 2022.

The decrease in gross local revenues was attributable to decreases at our Charleston, South Carolina;

Clarksville, Tennessee;

Columbus, Ohio;

Milwaukee, Wisconsin;

and Portland, Maine markets.

The gross political revenue decreased due to a decrease in the number of national, state and local elections.

The increase in gross interactive revenue is primarily due to an increase in our streaming revenue.

The most significant increases in gross non-spot revenue occurred in our Asheville, North Carolina;

Charleston, South Carolina;

Ithaca, New York;

Norfolk, Virginia and Yankton, South Dakota markets.

Station operating expense was $22,760,000 for the three months ended September 30, 2023, compared with $22,295,000 for the three months ended September 30, 2022, an increase of $465,000 or 2.1%.

The increase in operating expense was primarily a result of increases in compensation-related expense, healthcare costs, sales rating survey expenses, utility expenses, building maintenance and repairs, and programming rights expenses, of $331,000, $211,000, $107,000, $87,000, $82,000 and $71,000, respectively, partially offset by a decrease in commission expenses of $360,000, from the third quarter of 2022.

We had operating income for the three months ended September 30, 2023 of $3,492,000 compared to $1,055,000 for the three months ended September 30, 2022, an increase of $2,437,000.

The increase in operating income was the result of a decrease in corporate general and administrative expenses of $3,815,000 partially offset by a decrease in net operating revenue and increase in station operating expense, noted above, and an increase in other operating (income) expense, net of $82,000.

In the third quarter of 2022, we recorded a gain on sale of fixed assets of $37,000 compared to a loss on the sale of fixed assets in the third quarter of 2023 of $45,000 in other operating (income) expense, net.

The decrease in corporate general and administrative expenses was primarily due to the $3.8 million expense recorded in the third quarter of 2022 related to the employment agreement we had with our founder and former CEO, Mr.

Christian, that was required upon his death.

Additionally, we had a decrease of $471,000 in compensation-related expense offset by an increase of $156,000 in travel and seminar related expenses, $150,000 in other legal and consulting fees, $104,000 in directors’ fees, and $43,000 in insurance costs.

We generated net income of $2,729,000 ($0.45 per share on a fully diluted basis) during the three months ended September 30, 2023, compared to a net loss of $104,000 ( ($0.01 ) per share on a fully diluted basis) for the three months ended September 30, 2022, an increase of $2,833,000.

The increase in net income is primarily due to the increase in operating income, described above, an increase in interest income of $257,000 and a decrease in income tax expense of $185,000 partially offset by an increase in interest expense of $12,000 and a decrease in other income of $34,000.

The increase in interest income is related to higher rates of return on money market accounts reflected as cash equivalents and from our short-term investment accounts which began in May 2022.

The decrease in our income tax expense is due to the permanent difference between book and taxable income related to the compensation paid to our founder and former CEO as described above and in footnote 8 (Income Taxes).

The increase in interest expense is due to an increase in interest rates and amortization of bank fees.

The decrease in other income is due to minimal other income earned in the third quarter of 2022 versus no other income earned in the third quarter of 2023.

Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022

Results of Operations

The following table summarizes our results of operations for the nine months ended September 30, 2023 and 2022.

Nine Months Ended

September 30,

(In thousands, except percentages and per share information)

Net operating revenue

Station operating expenses

Corporate general and administrative

Other operating (income) expense, net

Operating income

Other operating expense, net

Operating (loss) income

Interest expense

Interest income

Income before income tax expense

Income tax provision

Net income (loss)

Earnings per share (diluted)

Income (loss) before income tax expense

Income tax provision (benefit)

Deferred (benefit)

Net (loss) income

Earnings (loss) per share (diluted)

N/M = Not Meaningful

For the nine months ended September 30, 2023, consolidated net operating revenue was $83,628,000 compared with $84,768,000 for the nine months ended September 30, 2022, a decrease of $1,140,000 or 1.3%.

We had decreases in gross local revenue of $2,003,000, gross political revenue of $1,229,000, and gross barter revenue of $92,000 and an increase in agency commissions of $50,000 partially offset by increases in gross interactive revenue of $1,233,000, gross non-spot revenue of $582,000 and gross national revenue of $512,000, from 2022.

The decrease in gross local revenues was attributable to decreases at our Charleston, South Carolina;

Clarksville, Tennessee;

For the three months ended March 31, 2024, consolidated net operating revenue was $24,664,000 compared with $25,304,000 for the three months ended March 31, 2023, a decrease of $640,000 or 2.5%.

We had decreases in gross local revenue and non-spot gross revenue of $1,184,000 and $165,000 respectively partially offset by increases in gross interactive revenue and gross political revenue of $573,000 and $118,000, respectively for the comparable period of 2023.

The most significant decreases in gross local revenue were at our Clarksville, Tennessee;

Columbus, Ohio;

Des Moines, Iowa;

Ithaca, New York;

Manchester, New Hampshire;

Milwaukee, Wisconsin;

Portland, Maine and Springfield, Illinois markets partially offset by increases at our Asheville, North Carolina;

Bellingham, Washington;

Charlottesville, Virginia and Harrisonburg, Virginia markets.

The gross political revenue decreased due to a decrease in the number of national, state and local elections.

The decrease in our gross barter revenue is due to minor decreases in the majority of our markets.

The increase in agency commissions is due to increases in our national revenue.

The increase in gross interactive revenue is primarily due to an increase in our streaming revenue.

The most significant increases in gross national revenue occurred in our Charleston, South Carolina;

Charlottesville, Virginia;

Des Moines, Iowa;

Norfolk, Virginia;

Ocala, Florida and Springfield, Massachusetts markets.

The most significant increases in gross non-spot revenue occurred in our Asheville, North Carolina;

Bellingham, Washington;

Charleston, South Carolina;

Ithaca, New York and Yankton, South Dakota markets.

Station operating expense was $66,870,000 for the nine months ended September 30, 2023, compared with $64,649,000 for the nine months ended September 30, 2022, an increase of $2,221,000 or 3.4%.

The increase in operating expense was primarily a result of increases in compensation-related expense, utility expenses, building maintenance and repairs, healthcare costs, sales rating survey expenses, programming rights expense, and music licensing fees, of $1,219,000, $274,000, $273,000, $213,000, $194,000, $184,000, and $89,000, respectively, partially offset by commission expenses of $199,000 for the comparable period of 2022.

We had operating income for the nine months ended September 30, 2023 of $8,693,000 compared to $8,146,000 for the nine months ended September 30, 2022, an increase of $547,000.

The increase in operating income was the result of a decrease in corporate general and administrative expenses of $4,030,000 partially offset by a decrease in net operating revenue and increase in station operating expense, noted above, and an increase in other operating (income) expense, net of $122,000.

We recorded a loss on sale of fixed assets of $125,000 in 2023 compared to a loss on the sale of fixed assets in the 2022 of $3,000 in other operating (income) expense, net.

Christian, that was required upon his death.

Additionally, we had a decrease of $1,219,000 in compensation-related expense partially offset by an increase of $345,000 in other consulting fees, $202,000 in directors’ fees, $145,000 in insurance costs and $32,000 in travel and seminar related expenses.

We generated net income of $6,999,000 ($1.15 per share on a fully diluted basis) during the nine months ended September 30, 2023, compared to $4,923,000 ($0.82 per share on a fully diluted basis) for the nine months ended September 30, 2022 ended, an increase of $2,076,000.

The increase in net income is primarily due to the increase in operating income, described above, an increase in interest income of $840,000, an increase in other income of $83,000 and a decrease in income tax expense of $640,000, partially offset by an increase in interest expense of $34,000.

The increase in interest income is related to higher rates of return on money market accounts reflected as cash equivalents and from our short-term investment accounts which began in May 2022.

The increase in other income is due to reimbursements from the FCC related to their spectrum auction of $115,000 described in footnote 13 (Other Income) versus the minimal other income earned in 2022.

The increase in interest expense is due to an increase in interest rates and amortization of bank fees.

Portland, Maine and Yankton, South Dakota markets.

The markets with the most significant decreases in 2024 in non-spot events were Des Moines, Iowa;

Manchester, New Hampshire and Yankton, South Dakota.

The increase in gross interactive revenue is primarily due to an increase in our streaming revenue and our website advertising revenue.

The gross political revenue increased due to an increase in the number of national, state and local elections compared to 2023.

Station operating expense was $22,981,000 for the three months ended March 31, 2024, compared with $21,703,000 for the three months ended March 31, 2023, an increase of $1,278,000 or 5.9%.

The increase in operating expense was primarily the result of increases in compensation-related expenses, bad debt expenses, healthcare expenses, streaming and content expenses, sales survey expenses, insurance-related expenses, repairs and maintenance expenses, and music licensing expenses, of $471,000, $287,000, $135,000, $109,000, $103,000, $42,000, $35,000 and $35,000, respectively, for the comparable period of 2023.

We had an operating loss for the three months ended March 31, 2024 of $2,417,000 compared to operating income $905,000 for the three months ended March 31, 2023, a decrease of $3,322,000.

The decrease was a result of the decrease in net operating revenue and increase in station operating expense, as noted above, along with an increase in corporate general and administrative expenses of $513,000 and an increase in other operating expense of $891,000.

The increase in corporate general and administrative expenses was primarily comprised of an increase of $208,000 in stock based compensation, an increase of $146,000 in compensation-related expense, an increase of $117,000 in travel-related expenses, and an increase of $76,000 in legal fees, partially offset by a decrease in other consulting fees of $40,000.

In 2024, we recorded a loss on the sale of fixed assets and intangibles of $971,000 compared to a loss on the sale of fixed assets of $80,000 in 2023.

The loss on sale of fixed assets and intangibles recorded in other operating expense in 2024 primarily relates to the sale of WYSE-AM, W275CP translator and W248CM translator located in our Asheville, North Carolina market and the relinquishment of our FCC license for KBAI-AM located in our Bellingham, Washington market, described in footnote 7 (Acquisitions and Dispositions).

We generated a net loss of $1,577,000 ($(0.25) per share on a fully diluted basis) during the three months ended March 31, 2024, compared to net income of $920,000 ($0.15 per share on a fully diluted basis) for the three months ended March 31, 2023, a decrease of $2,497,000.

The decrease in net income is primarily due to the decrease in operating income, described above, a decrease in other income of $119,000 partially offset by an increase in interest income of $14,000, and a decrease in income tax expense of $930,000.

The increase in interest income is related to higher rates of return on money market accounts reflected as cash equivalents and from our short-term investment accounts.

The decrease in other income is due to reimbursements from the FCC related to their spectrum auction of $115,000 described in footnote 13 (Other Income) that we received in 2023 as opposed to 2024 where we did not have other income earned in the first quarter.

The decrease in our income tax expense is due to a loss before income tax benefit in 2024 compared to income before income tax expense in 2023.

Liquidity and Capital Resources

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The cumulative transaction fees are being amortized over the remaining life of the Credit Facility.

Interest rates under the Credit Facility are payable, at our option, at alternatives equal to SOFR (5.31% at September 30, 2023), plus 1% to 2% or the base rate plus 0% to 1%.

Interest rates under the Credit Facility are payable, at our option, at alternatives equal to SOFR (5.34% at March 31, 2024), plus 1% to 2% or the base rate plus 0% to 1%.

The spread over SOFR and the base rate vary from time to time, depending upon our financial leverage.

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.

Under the Third Amendment, we now pay quarterly commitment fees of 0.25% per annum on the unused portion of the Credit Facility.

Under the Third Amendment, we now pay quarterly commitment fees of 0.25% per annum on the used portion of the

Credit Facility.

We previously paid 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, 2023) 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.

We had no debt outstanding at December 31, 2022 or September 30, 2023.

We had approximately $50 million of unused borrowing capacity under the Revolving Credit Facility at both September 30, 2023 and December 31, 2022.

The Credit Facility contains a number of financial covenants (all of which we were in compliance with at March 31, 2024) 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.

We have no debt outstanding at December 31, 2023 or March 31, 2024.

We have approximately $50 million of unused borrowing capacity under the Revolving Credit Facility at both March 31, 2024 and December 31, 2023.

Sources and Uses of Cash

During the nine months ended September 30, 2023 and 2022, we had net cash flows from operating activities of $13,921,000 and $14,362,000, 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.

During the three months ended March 31, 2024 and 2023, we had net cash flows from operating activities of $3,803,000 and $4,835,000, respectively.

We believe that cash flow from operations will be sufficient to meet quarterly debt service requirements for payments of interest and scheduled payments of 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.

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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 September 30, 2023, we have repurchased 2.2 million shares of our Class A Common Stock for $57.6 million.

During the three and nine months ended September 30, 2023, we did not repurchase any shares related to the Buy-Back Program.

From its inception in 1998 through March 31, 2024, we have repurchased 2.2 million shares of our Class A Common Stock for $57.8 million.

During the three months ended March 31, 2024, we did not repurchase any shares related to the Buy-Back Program.

We halted the directions issued for any additional buybacks under our plan in 2020.

We continue to monitor economic conditions to determine if and when it makes sense to make additional buybacks under our plan.

Our capital expenditures, exclusive of acquisitions, for the nine months ended September 30, 2023 were $3,397,000 ($4,731,000 in 2022).

Our capital expenditures, exclusive of acquisitions, for the three months ended March 31, 2024 were $1,050,000 ($1,362,000 in 2023).

We anticipate capital expenditures in 2024 to be approximately $5.0 million to $5.5 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.

Radio for $61,800 of which $5,000 was paid in 2021 and the remainder 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 September 27, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share on its Class A Common Stock.

This dividend, totaling approximately $1,500,000 was paid on November 3, 2023 to

shareholders of record on October 11, 2023 and is recorded in dividends payable in our Condensed Consolidated Balance Sheet at September 30, 2023.

On May 9, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share on its Class A Common Stock.

This dividend, totaling approximately $1,500,000 was paid on June 16, 2023 to shareholders of record on May 22, 2023.

On March 1, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share on its Class A Common Stock.

This dividend, totaling approximately $1,500,000, was paid on April 7, 2023 to shareholders of record on March 20, 2023.

On December 7, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share and a special cash dividend of $2.00 per share on its Class A Common Stock.

This dividend, totaling approximately $13,800,000, was paid on January 13, 2023 to shareholders of record on December 21, 2022.

On September 20, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share and a special cash dividend of $2.00 per share on its Class A Common Stock.

This dividend, totaling approximately $13,600,000, was paid on October 21, 2022 to shareholders of record on October 3, 2022.

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.

On February 13, 2024, we entered into an agreement to purchase the assets of WKOA (FM), WKHY (FM), WASK (FM), WXXB (FM), WASK (AM) and W269DJ from Neuhoff Communications, Inc.

serving the Greater Lafayette, Indiana radio market for $5.3 million which we expect to finance through funds generated from operations or borrowings under our credit agreement.

We expect to close on this acquisition in the second quarter of 2024.

During 2024, the Company’s Board of Directors declared a quarterly cash dividend and a variable cash dividend on its Class A Common Stock.

These dividends totaling approximately $5.3 million were accrued or paid during the first quarter of 2024.

During 2023, our Board of Directors declared four quarterly cash dividends and one special dividend totaling $3.00 per share on our Class A shares.

These dividends totaling approximately $18.6 million were accrued or paid during 2023.

We continue to actively seek and explore opportunities for expansion through the acquisitions of additional broadcast properties.

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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.

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, 2023.

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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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis