|3 Months Ended|
Mar. 31, 2020
|Text Block [Abstract]|
NOTE 3. RECENT TRANSACTIONS
During the three month period ended March 31, 2020, we completed or entered into the following transactions:
We completed repurchases of $3.5 million of the 6.75% Senior Secured Notes (“Notes”) for $3.4 million in cash, recognizing a net gain of $49,000 after adjusting for bond issuance costs as detailed in Note 13 – Long-Term Debt.
Distributions of $0.7 million ($0.025 per share) were declared and paid based upon the Board of Directors’ then current assessment of our business as detailed in Note 18 – Equity Transactions.
On October 31, 2019, we entered into an agreement to sell radio station
WBZW-AMand an FM translator construction permit in Orlando, Florida, for $0.2 million in cash. We recognized an estimated
pre-taxloss of approximately $1.5 million in the fourth quarter of 2019, which reflects the sale price as compared to the carrying value of the assets less the estimated closing costs. The buyer began programming the stations under a Local Marketing Agreement (“LMA”) on March 1, 2020. The transaction closed on April 6, 2020.
On February 5, 2020, we entered an Asset Purchase Agreement (“APA”) with Word Broadcasting to sell radio stations
WGTK-AMin Louisville, Kentucky for $4.0 million with a $250,000 credit applied to the sale price if closing occurs before March 31, 2020. Additionally, Word Broadcasting would receive a credit toward the purchase price of a sum equal to the monthly fees paid under a Time Brokerage Agreement (“TBA”) that began in January 2017 for months
4-29of the TBA and a sum equal to $2,000 per month for each monthly fee payment for months 30 and thereafter of the TBA; and a credit of the $450,000 option payment. We estimated the loss on sale to be approximately $0.5 million net of tax if the sale closed by March 31, 2020 and $0.3 million net of tax if the sale closes later. Due to changes in debt markets, the transaction was not funded, and it is uncertain when or if the transaction will close.