HEMISPHERE MEDIA GROUP, INC.

CIK:0001567345|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements of Operations
Net revenues	$ 54,174	$ 50,460	$ 102,973	$ 88,037
Operating expenses:
Cost of revenues	18,348	14,798	33,473	26,577
Selling, general and administrative	25,911	24,908	56,569	36,299
Depreciation and amortization	3,335	4,337	10,964	7,002
Other expenses	8,939	1,363	10,057	8,091
Gain from FCC spectrum repack and other	(95)	(2,124)	(141)	(2,176)
Total operating expenses	56,438	43,282	110,922	75,793
Operating (loss) income	(2,264)	7,178	(7,949)	12,244
Other (expense) income:
Interest expense and other, net	(3,111)	(3,165)	(6,275)	(5,523)
Gain (loss) on equity method investment activity	2,283	(8,569)	(2,489)	24,040
Other expense, net				(668)
Total other (expense) income	(828)	(11,734)	(8,764)	17,849
(Loss) income before income taxes	(3,092)	(4,556)	(16,713)	30,093
Income tax expense	(819)	(1,785)	(426)	(3,053)
Net (loss) income	(3,911)	(6,341)	(17,139)	27,040
Net loss attributable to non-controlling interest		55		32
Net (loss) income attributable to Hemisphere Media Group, Inc.	$ (3,911)	$ (6,286)	$ (17,139)	$ 27,072
(Loss) income per share attributable to Hemisphere Media Group, Inc.:
Basic	$ (0.10)	$ (0.16)	$ (0.43)	$ 0.69
Diluted	$ (0.10)	$ (0.16)	$ (0.43)	$ 0.68
Weighted average shares outstanding:
Basic	39,991	39,641	39,861	39,511
Diluted	39,991	39,641	39,861	39,900

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Reconciliation of Net (loss) income to Net Cash Provided by Operating Activities:
Net (loss) income	$ (17,139)	$ 27,040
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	10,964	7,002
Programming amortization	10,783	7,353
Amortization of deferred financing costs and original issue discount	762	530
Stock-based compensation	2,197	2,795
Provision for bad debts	30	49
Gain from FCC spectrum repack and other	(141)	(2,176)
Deferred tax expense	(3,106)
Loss (gain) on equity method investment activity	2,489	(24,040)
Amortization of operating lease right-of-use assets	344	276
Other non-cash acquisition charges		1,258
Decrease (increase) in:
Accounts receivable	385	836
Due from related parties, net	(776)	538
Programming rights	(22,010)	(12,102)
Prepaids and other assets	(6,401)	(2,923)
(Decrease) increase in:
Accounts payable	(198)	9,104
Other accrued expenses	6,589	5,335
Programming rights payable	(1,111)	(3,884)
Income taxes payable	(931)	2,588
Other liabilities	223	320
Net cash (used in) provided by operating activities	(17,047)	19,899
Cash Flows From Investing Activities:
Funding of equity method investments	(256)	(1,561)
Capital expenditures	(1,911)	(2,853)
FCC repack proceeds	26	2,176
Cash paid for acquisition of Pantaya		(122,621)
Net cash used in investing activities	(2,141)	(124,859)
Cash Flows From Financing Activities:
Purchases of common stock	(67)	(3,266)
Repayments of long-term debt	(1,328)	(1,168)
Proceeds from incremental term loan		48,000
Payment of financing fees		(638)
Net cash (used in) provided by financing activities	(1,395)	42,928
Net decrease in cash	(20,583)	(62,032)
Cash:
Beginning	49,477	134,471
Ending	28,894	72,439
Cash payments for:
Interest	5,449	5,073
Income taxes	$ 4,077	1,520
Non-cash investing activity (acquisition related):
Issuance of Class A Common Stock		2,188
Effective settlement of pre-existing receivables and payables, net		$ 1,499

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current Assets
Cash	$ 28,894	$ 49,477
Accounts receivable, net of allowance for doubtful accounts of $776 and $771, respectively	27,078	33,738
Due from related parties	701	925
Programming rights	8,620	10,938
Prepaid expenses	6,537	7,767
Other current assets	2,270	23,519
Current assets held for sale	41,512
Total current assets	115,612	126,364
Programming rights, net of current portion	13,528	20,955
Property and equipment, net	30,286	31,554
Operating lease right-of-use assets	1,027	1,281
Broadcast license	41,356	41,356
Goodwill	165,597	231,710
Other intangibles, net	17,319	115,110
Deferred income taxes	3,928
Equity method investments	21,938	24,171
Other assets	4,677	7,410
Noncurrent assets held for sale	175,255
Total Assets	590,523	599,911
Current Liabilities
Accounts payable	2,557	11,533
Due to related parties	998	1,383
Accrued agency commissions	6,901	7,729
Accrued compensation and benefits	5,120	7,031
Accrued marketing	9,105	10,526
Other accrued expenses	16,216	10,418
Deferred revenue	655	7,400
Programming rights payable	5,486	13,242
Income taxes payable	424	1,353
Current portion of long-term debt	2,656	2,656
Current liabilities held for sale	28,930
Total current liabilities	79,048	73,271
Programming rights payable, net of current portion	97	2,820
Long-term debt, net of current portion	246,231	246,919
Deferred income taxes	20,682	22,427
Defined benefit pension obligation	2,985	2,895
Other long-term liabilities	587	2,031
Noncurrent liabilities held for sale	6,017
Total Liabilities	355,647	350,363
Stockholders' Equity
Preferred stock, $0.0001 par value; 50,000,000 shares authorized; 0 shares issued at June 30, 2022 and December 31, 2021
Additional paid-in capital	290,900	288,703
Retained earnings	9,213	26,352
Accumulated other comprehensive loss	(395)	(732)
Total Stockholders' Equity	234,876	249,548
Total Liabilities and Stockholders' Equity	590,523	599,911
Common Class A
Stockholders' Equity
Common stock	3	3
Class A treasury stock, at cost; 6,012,599 shares and 6,003,139 shares at June 30, 2022 and December 31, 2021, respectively	(64,847)	(64,780)
Common Class B
Stockholders' Equity
Common stock	$ 2	$ 2