ACQUISITIONS AND RECENT TRANSACTIONS
|3 Months Ended|
Mar. 31, 2018
|Business Combinations [Abstract]|
|ACQUISITIONS AND RECENT TRANSACTIONS||
NOTE 4. ACQUISITIONS AND RECENT TRANSACTIONS
During the three month period ended March 31, 2018, we completed or entered into the following transactions:
On February 28, 2018, we announced a quarterly equity distribution in the amount of $0.0650 per share on Class A and Class B common stock. The equity distribution of $1.7 million was paid on March 28, 2018 to all Class A and Class B common stockholders of record as of March 14, 2018.
On March 23, 2018, we entered into an APA to acquire radio station KZTS-AM (formerly KDXE-AM) and an FM Translator in Little Rock, Arkansas for $0.2 million in cash. We have the rights to program the station under a TBA effective as of April 1, 2018. We entered an LMA agreement with another party under which they will program the station. The sale is expected to close in June 2018.
On March 1, 2018, we entered into an APA to acquire radio station KDXE-FM (formerly KZTS-FM) in Little Rock, Arkansas for $1.1 million in cash. We began programming the station under an LMA that began on April 1, 2018. The sale is expected to close in June 2018.
On December 29, 2017, we entered into two LMAs to program radio stations KPAM-AM and KKOV-AM in Portland, Oregon. We began operating the radio stations on January 2, 2018. The LMAs had an original term of up to 12-months. The LMAs were terminated on March 30, 2018 when the stations were sold to another party. We entered a new LMA to continue operating KPAM-AM. The accompanying Condensed Consolidated Statements of Operations reflects the operating results of these entities during the LMA term.
We programmed radio station KHTE-FM, in Little Rock, Arkansas, under a TBA that began on April 1, 2015. We had the option to acquire the station for $1.2 million in cash during the TBA period. We ceased operating the station on April 30, 2018 and we did not exercise our purchase option. We will pay the licensee a $0.1 million fee for not exercising our option right to purchase the station.
On December 1, 2017, we entered into an agreement to sell radio station WQVN-AM (formerly WKAT-AM) in Miami, Florida for $3.5 million in cash. The buyer began operating the radio station under an LMA agreement as of the same date. The sale is expected to close during the second quarter of 2018. We recorded an estimated loss on the sale of assets of $4.7 million as of December 31, 2017, based on the probability of the sale, which reflected the sales price as compared to the carrying value of the assets and the estimated costs of the sale.
On January 3, 2018, we entered into an agreement to sell radio station WBIX-AM in Boston, Massachusetts for $0.7 million in cash. The sale is expected to close later in 2018.
In August 2017, we received an escrow deposit under an agreement to sell land in Covina, California for $1.0 million dollars. The sale is subject to the buyer’s ability to complete due diligence on their expected use of the land and is expected to close in the latter half of 2020. We recorded the land in long-term assets held for sale based on the expected closing date and have not used the land in operations.