• the timing of our ability to complete any acquisitions or dispositions,
• costs and synergies resulting from the integration of any completed
• disruptions or postponements of advertising schedules and programming in
Our principal sources of broadcast revenue include:
• the sale of block program time to national and local program producers;
• the sale of advertising time on our radio stations to national and local
• the sale of digital streaming advertisements on our station websites or
• fees earned for the creation of custom web pages and custom digital media
host materials, including podcasts, programs and media content including
• other revenue such as events, including ticket sales and sponsorships,
listener purchase programs, where revenue is generated from special
discounts and incentives offered to our listeners from our advertisers,
Our principal sources of digital media revenue include:
• the support and promotion to stream third-party content on our websites;
Our principal sources of publishing revenue include:
• the number of events held, the number of event sponsorships sold and the
Key Financial Performance Indicators - Same-Station Definition
Reconciliation of Broadcast Operating Expenses to Same Station Broadcast Operating Expenses Broadcast operating expenses
Reconciliation of Operating Income to Same Station Operating Income Station Operating Income
Reconciliation of Adjusted EBITDA to EBITDA to Net Income Net income
Three months ended June 30, 2022 compared to the three months ended June 30, 2021
• On May 2, 2022, we acquired websites and related assets of Retirement
• During the three months ended June 30, 2022, we completed repurchases
Same Station Net Broadcast Revenue $ 46,687 $ 52,382 $ 5,695
The following table shows the dollar amount and percentage of net broadcast revenue for each broadcast revenue source.
The following table shows the dollar amount and percentage of net digital media revenue for each digital media revenue source.
Digital streaming revenue increased $35,000 based on increased demand for content available from our Christian websites. There were no significant changes in sales volume or rates as compared to the same period of the prior year.
Digital download revenue increased 20.8%, or $0.4 million, due to a higher volume of downloads from our church product websites with no significant changes in rates as compared to the same period of the prior year.
The following table shows the dollar amount and percentage of net publishing revenue for each publishing revenue source.
Self-publishing fees increased 6.6%, or $0.1 million, due an increase in the number of authors with no significant change in fees charged to authors.
On a same-station basis, broadcast operating expenses increased 17.5%, or $6.3 million. The increase in broadcast operating expenses on a same station basis reflects these items net of the impact of station acquisitions, dispositions, and format changes.
We recorded additional debt modification costs of $20,000 during the first quarter of 2022 associated with the refinance of $112.8 million of the 2024 Notes for $114.7 million of the 2028 Notes.
Impairment of Indefinite-Lived Long-Term Assets Other Than Goodwill
Net (Gain) Loss on the Disposition of Assets
Interest income represents earnings on excess cash, interest due under promissory notes and interest earned from our equity investment in OPA.
Six months ended June 30, 2022 compared to the six months ended June 30, 2021
The following factors affected our results of operations and cash flows for the six months ended June 30, 2022 as compared to the same period of the prior year:
Acquisitions, Divestitures and Other Transactions
• On May 2, 2022, we acquired websites and related assets of Retirement
• On July 27, 2021, we sold the Hilary Kramer Financial Newsletter and
• On July 1, 2021, we acquired the ShiftWorship.com domain and digital
• On May 25, 2021, we sold Singing News Magazine and Singing News Radio
• On March 8, 2021, we acquired the Triple Threat Trader newsletter. We
Same Station Net Broadcast Revenue $ 90,653 $ 100,477 $ 9,824
The following table shows the dollar amount and percentage of net broadcast revenue for each broadcast revenue source.
Network revenue, net of amounts reported as digital, increased 4.3%, or $0.4 million, including a $0.2 million increase in political advertising and a $0.2 million increase from our nationally syndicated host programs.
The following table shows the dollar amount and percentage of net digital media revenue for each digital media revenue source.
Digital streaming revenue increased 5.4%, or $0.1 million, based on increased demand for content available from our Christian websites. There were no significant changes in sales volume or rates.
Digital download revenue increased 14.9%, or $0.5 million, due to a higher volume of downloads from our church product websites with no significant changes in rates as compared to the same period of the prior year.
The following table shows the dollar amount and percentage of net publishing revenue for each publishing revenue source.
Self-publishing fees increased 6.5%, or $0.2 million, due an increase in the number of authors with no material change in fees charged to authors.
Impairment of Indefinite-Lived Long-Term Assets Other Than Goodwill
Impairment of Indefinite-Lived Long-Term Assets Other Than Goodwill $ - $ 3,935 $ 3,935
Net (Gain) Loss on the Disposition of Assets
Interest income represents earnings on excess cash, interest due under promissory notes, and interest earned from our equity investment in OPA.
Net income increased $8.3 million to $10.8 million for the six months ended June 30, 2022, from $2.5 million during the same period of the prior year as described above.
• A relaxation of interest expense deduction limitation for income tax
• We received Paycheck Protection Program ("PPP") loans of $11.2 million
• Operating expenses exclusive of depreciation, amortization, changes in
• Trade accounts receivables, net of allowances, increased $3.6 million
• Net inventories on hand increased $0.6 million to $1.5 million at
We plan to fund any future purchases and any future acquisitions from cash on hand, operating cash flow or our credit facilities.
• We received $14.2 million of cash from the sale of assets during the
• Cash paid for acquisitions was $0.7 million for the six months ended
• Proceeds of $11.2 million under PPP loans were received during the
Long-term debt consists of the following:
(1) As of June 30, 2022, the Asset-Based Revolving Credit Facility ("ABL"), had a
borrowing base of $24.3 million, outstanding borrowings of $10,000, and
$0.3 million of outstanding letters of credit, resulting in a $24.0 million
Our weighted average interest rate was 6.99% and 7.01% at December 31, 2021, and June 30, 2022, respectively.
In addition to the outstanding amounts listed above, we also have interest obligations related to our long-term debt as follows as of June 30, 2022:
• Commitment fee of 0.25% to 0.375% per annum on the unused portion of
Based on the balance of the 2024 Notes outstanding of $44.7 million, we are required to pay $3.0 million per year in interest on the 2024 Notes. At June 30, 2022, accrued interest on the 2024 Notes was $0.3 million.
Principal repayment requirements under all long-term debt agreements outstanding at June 30, 2022 for each of the next five years and thereafter are as follows:
Impairment Losses on Goodwill and Indefinite-Lived Intangible Assets
We have incurred significant impairment losses with regards to our indefinite-lived intangible assets. If overall market conditions or the performance of the economy deteriorates, our operating results could be negatively impacted, including expectations for future growth.
As of June 30, 2022, we have an outstanding standby letter of credit of $0.3 million. The standby letter of credit is deducted against our unused revolving loan commitment under our ABL and reduces the amount available for withdrawal.
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