SPANISH BROADCASTING SYSTEM : HAS FURNISHED ITS SECOND QUARTER 2023 FINANCIAL REPORTING PACKAGE

Delaware

13-3827791

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

7007 NW 77th Ave.

Miami, Florida 33166

(Address of principal executive offices) (Zip Code)

Title of each class

Trading Symbol(s)

Name of exchange/market on which traded

Common Stock, par value $0.0001 per share

SBSAA

OTC Pink Market

Transfer Agent

Broadridge Corporate Solutions, Inc.

51 Mercedes Way

Edgewood, New York 11717

Table of Contents

Page

FINANCIAL INFORMATION:

Financial Statements - Unaudited

3

Unaudited Condensed Consolidated Balance Sheets

3

Unaudited Condensed Consolidated Statements of Operations

4

Unaudited Condensed Consolidated Statements of Cash Flows

5

Notes to the Unaudited Condensed Consolidated Financial Statements

6

Management's Discussion and Analysis of Financial Condition and Results of Operations

15

June 30,

December 31,

2023

2022

Assets

Current assets:

Cash and cash equivalents

$

7,526

$

7,517

Receivables:

Trade

37,888

44,805

Barter

273

312

38,161

45,117

Less: allowance for doubtful accounts

2,644

2,389

Net receivables

35,517

42,728

Prepaid expenses and other current assets

4,842

3,084

Assets held for sale

31,186

-

Total current assets

79,071

53,329

Property and equipment, net

9,344

23,052

FCC broadcasting licenses

293,388

309,537

Goodwill

32,806

32,806

Operating lease right-of-use assets

20,420

22,083

Other assets

807

808

Total assets

$

435,836

$

441,615

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable and accrued expenses

$

21,607

$

20,997

Accrued interest

10,347

10,540

Unearned revenue

2,182

1,310

Operating lease liabilities

1,178

1,085

Liabilities held for sale

1,067

-

Deposit on sale of stations

3,800

-

Other short term liabilities

46

46

Total current liabilities

40,227

33,978

Operating lease liabilities, net of current portion

22,001

23,570

9.75% Senior Secured Notes due 2026, net of deferred financing costs of $5,009 at June 30, 2023 and $5,963 at

December 31, 2022 (Note 6)

304,991

304,037

Deferred tax liabilities

58,169

58,169

Other liabilities, less current portion

3,371

3,766

Total liabilities

428,759

423,520

Stockholders' equity:

Series C convertible preferred stock, $0.01 par value and liquidation value. Authorized 600,000

shares; 380,000 shares issued and outstanding at June 30, 2023 and at December 31, 2022

4

4

Class A common stock, $0.0001 par value. Authorized 100,000,000 shares; 6,209,446 shares issued and

outstanding at June 30, 2023 and 5,041,878 shares issued and outstanding at December 31, 2022

1

1

Class B common stock, $0.0001 par value. Authorized 50,000,000 shares; 2,340,353 shares issued

and outstanding at June 30, 2023 and December 31, 2022

-

-

Additional paid-in capital

652,922

652,797

Accumulated deficit

(645,850)

(634,707)

Total stockholders' equity

7,077

18,095

Total liabilities and stockholders' equity

$

435,836

$

441,615

Three Months Ended

Six Months Ended

June 30,

June 30,

2023

2022

2023

2022

Net revenue from continuing operations

$

35,447

$

35,047

$

69,994

$

73,078

Operating expenses from continuing operations:

Operating expenses

25,500

23,626

53,230

50,001

Corporate expenses

3,841

4,632

7,325

8,508

Depreciation and amortization

564

478

1,125

943

Loss (Gain) on the disposal of assets

95

(2)

104

(2)

Other operating expenses

-

-

335

-

Total operating expenses from continuing operations

30,000

28,734

62,119

59,450

Operating income from continuing operations

5,447

6,313

7,875

13,628

Other expenses from continuing operations:

Interest expense

(8,076)

(8,064)

(16,154)

(16,287)

Income tax benefit

(1,829)

(309)

(3,673)

(525)

Loss from continuing operations before discontinued operations

(800)

(1,442)

(4,606)

(2,134)

Loss from discontinued operations, net of tax (Note 9)

(7,749)

(1,137)

(6,537)

(2,117)

Net loss

$

(8,549)

$

(2,579)

$

(11,143)

$

(4,251)

Class A weighted average common shares outstanding (Note 3)

Basic and Diluted

6,210

5,042

5,971

5,042

Class B weighted average common shares outstanding (Note 3)

Basic and Diluted

2,340

2,340

2,340

2,340

Series C (as converted) weighted average common shares

outstanding (Note 3)

Basic and Diluted

760

760

760

760

Class A, B and Series C (as converted) loss from continuing

operations per common share (Note 3)

Basic and Diluted

$

(0.09)

$

(0.18)

$

(0.51)

$

(0.26)

Class A, B and Series C (as converted) loss from discontinued

operations per common share (Note 3)

Basic and Diluted

$

(0.83)

$

(0.14)

$

(0.72)

$

(0.26)

Class A, B and Series C (as converted) net loss per common share

(Note 3)

Basic and Diluted

$

(0.92)

$

(0.32)

$

(1.23)

$

(0.52)

Six Months Ended

June 30,

2023

2022

Cash flows from operating activities:

Net loss

$

(11,143)

$

(4,251)

Adjustments to reconcile net loss to net cash provided by operating activities:

Loss (Gain) on the disposal of assets, net of disposal costs

104

(13)

Stock-based compensation

125

125

Depreciation and amortization

1,238

1,602

Net barter income

(185)

(104)

Provision for trade doubtful accounts

636

102

Amortization of deferred financing costs

954

954

Unearned revenue-barter

215

422

Changes in operating assets and liabilities:

Trade receivables

6,536

12,598

Prepaid expenses and other current assets

(1,383)

937

Other assets

765

272

Accounts payable and accrued expenses

894

(5,743)

Accrued interest

(193)

180

Other liabilities

(351)

(655)

Net cash (used in) provided by operating activities

(1,788)

6,426

Cash flows from investing activities:

Purchases of property and equipment

(1,628)

(1,872)

Deposit on sale of stations and related assets

3,800

-

Deposit for acquisition of radio station and related assets

(375)

-

Acquisition of radio stations and related assets

-

(12,663)

Insurance proceeds received for damage to equipment

-

386

Proceeds from the sale of property and equipment

-

10

Net cash provided by (used in) investing activities

$

1,797

(14,139)

Cash flows from financing activities:

Net cash provided by (used in) financing activities

$

-

$

-

Net increase (decrease) in cash and cash equivalents

9

(7,713)

Cash and cash equivalents at beginning of period

7,517

16,243

Cash and cash equivalents at end of period

$

7,526

$

8,530

Supplemental cash flows information:

Interest paid

$

15,262

$

15,153

Income tax paid with cash

$

1,081

$

3,980