Quarterly report pursuant to Section 13 or 15(d)

Recent Transactions

v3.22.2
Recent Transactions
6 Months Ended
Jun. 30, 2022
Text Block [Abstract]  
Recent Transactions
NOTE 3. RECENT TRANSACTIONS
During the
six-month
period ended June 30, 2022, we completed or entered into the following transactions:
Debt Transactions
We completed repurchases of our 2024 Notes as follows:
 
Date
  
Principal
Repurchased
    
Cash
Paid
    
% of Face
Value
   
Bond Issue
Costs
    
Net Gain
(Loss)
 
                                   
    
(Dollars in thousands)
 
June 13, 2022
   $ 5,000      $ 4,947        98.95   $ 35      $ 18  
June 10, 2022
     3,000        2,970        99.00     21        9  
June 7, 2022
     2,464        2,446        99.25     17        1  
May 17, 2022
     2,525        2,500        99.00     18        7  
January 12, 2022
     2,500        2,531        101.26     22        (53
Acquisitions
On May 2, 2022, we acquired websites and the related assets of Retirement Media for $0.2 million in cash. We recorded goodwill of approximately $2,400 associated with the expected synergies to be realized upon combining the operations into our digital media platform within Eagle Financial Publications. The accompanying Condensed Consolidated Statement of Operations reflects the operating results of this entity as of the closing date within our digital media segment.
On February 15, 2022, we closed on the acquisition of radio station
WLCC-AM
and an FM translator in the Tampa, Florida market for $0.6 million of cash. The WLCC transmitter site will be used to broadcast radio station
WTBN-AM
due to the sale of land housing the
WTBN-AM
transmitter.
The total purchase price consideration for our business acquisitions and asset purchases during the
six-month
period ending June 30, 2022, is as follows:
 
Description
  
Total Consideration
 
    
(Dollars in thousands)
 
Cash payments made upon closing
  
$
738
 
Escrow deposits paid in prior years
  
 
60
 
    
 
 
 
Total purchase price consideration
  
$
798
 
    
 
 
 
 
The allocations presented in the table below are based upon estimates of the fair values using valuation techniques including income, cost, and market approaches. The following preliminary purchase price allocations are based upon the valuation of assets and these estimates and assumptions are subject to change as we obtain additional information during the measurement period, which may be up to one year from the acquisition date. Differences between the preliminary and final valuation could be substantially different from the initial estimate.
 
         
Net Broadcast
Assets 
    
Net Digital
Media Assets
    
Total
Net Assets
 
Assets
                               
     Property and equipment    $ 418        166        584  
     Broadcast licenses      190        —          190  
     Goodwill      —          2        2  
     Domain and brand names      —          11        11  
    
Non-Compete
agreement
     —          11        11  
         
 
 
    
 
 
    
 
 
 
         
$
608
 
  
$
190
 
  
$
798
 
         
 
 
    
 
 
    
 
 
 
Divestitures
On June 27, 2022, we sold 9.3 acres of land in the Denver area for $8.2 million resulting in a
pre-tax
gain of $6.5 million. The land was being used as the transmitter site for radio stations
KRKS-AM
and
KBJD-AM
and was an integral part of our broadcast operations for these stations. We will continue broadcasting both
KRKS-AM
and
KBJD-AM
from this site.
On May 25, 2022, we sold radio stations
WFIA-AM,
WFIA-FM
and
WGTK-AM
in Louisville, Kentucky for $4.0 million with credits applied from amounts previously paid, including a portion of the monthly fees paid under a Time Brokerage Agreement (“TBA”). We recorded a
pre-tax
gain of $0.5 million.
On January 10, 2022, we closed on the sale of 4.5 acres of land in Phoenix, Arizona for $2.0 million in cash. The land was being used as the transmitter site for radio station
KXXT-AM
and was an integral part of our broadcast operations for that station. We recorded a
pre-tax
gain of $1.8 million on the sale and had access to the land for 90-days
 
to relocate our transmitter equipment for KXXT-AM.
 
We continue to operate radio station KXXT-AM with a similar broadcast signal.
Pending Transactions
On June 2, 2021, we entered into an Asset Purchase Agreement (“APA”) to acquire radio station
KKOL-AM
in Seattle, Washington for $0.5 million. We paid $0.1 million in cash into an escrow account, and we began operating the station under an Local Marketing Agreement (“LMA”) on June 7, 2021. We expect this transaction to close in the latter half of 2022.