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

Quarterly Financial Reporting Package

For the period ended March 31, 2023

Spanish Broadcasting System, Inc.

	and Subsidiaries
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)

[phone]

(Company's telephone number, including area 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

FINANCIAL INFORMATION

Financial Statements - Unaudited

SPANISH BROADCASTING SYSTEM, INC.

AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except share data)

		March 31,		December 31,
		2023			2022
Assets
Current assets:
Cash and cash equivalents	$	10,719	$	7,517
Receivables:
Trade		34,160			44,805
Barter		277			312
		34,437			45,117
Less: allowance for doubtful accounts		2,601			2,389
Net receivables		31,836			42,728
Prepaid expenses and other current assets		2,762			3,084
Assets held for sale		31,183			-
Total current assets		76,500			53,329
Property and equipment, net		8,987			23,052
FCC broadcasting licenses		293,388			309,537
Goodwill		32,806			32,806
Operating lease right-of-use assets		20,848			22,083
Other assets		807			808
Total assets	$	433,336	$	441,615
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	18,650	$	20,997
Accrued interest		2,791			10,540
Unearned revenue		2,028			1,310
Operating lease liabilities		1,104			1,085
Liabilities held for sale		1,087			-
Deposit on sale of stations		3,800			-
Other short term liabilities		46			46
Total current liabilities		29,506			33,978
Operating lease liabilities, net of current portion		22,330			23,570
9.75% Senior Secured Notes due 2026, net of deferred financing costs of $5,486 at March 31, 2023 and
$5,963 at December 31, 2022 (Note 6)		304,514			304,037
Deferred tax liabilities		58,169			58,169
Other liabilities, less current portion		3,254			3,766
Total liabilities		417,773			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 March 31, 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 March 31, 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 March 31, 2023 and December 31, 2022		-			-
Additional paid-in capital		652,859			652,797
Accumulated deficit		(637,301)			(634,707)
Total stockholders' equity		15,563			18,095
Total liabilities and stockholders' equity	$	433,336		$	441,615

See accompanying notes to unaudited condensed consolidated financial statements.

3

SPANISH BROADCASTING SYSTEM, INC.

AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(In thousands, except per share data)

		Three Months Ended
		March 31,
		2 0 2 3		2 0 2 2
Net revenue from continuing operations	$	34,547	$	38,031
Operating expenses from continuing operations:
Operating expenses		27,730		26,375
Corporate expenses		3,484		3,876
Depreciation and amortization		561		465
Loss on the disposal of assets		9		-
Other operating expenses		335		-
Total operating expenses from continuing operations		32,119		30,716
Operating income from continuing operations		2,428		7,315
Other expenses from continuing operations:
Interest expense		(8,078)		(8,223)
Income tax benefit		(1,844)		(216)
Loss from continuing operations before discontinued operations		(3,806)		(692)
Income (loss) from discontinued operations, net of tax (Note 9)		1,212		(980)
Net loss	$	(2,594)	$	(1,672)
Class A weighted average common shares outstanding (Note 3)
Basic and Diluted		5,730		5,042
Class B weighted average common shares outstanding (Note 3)
Basic and Diluted		2,340		2,340
Series C (as converted) weighted average common shares outstanding (Note 3)
Basic and Diluted		760		760
Class A, B and Series C (as converted) loss from continuing operations per common share (Note 3)
Basic and Diluted	$	(0.43)	$	(0.09)
Class A, B and Series C (as converted) income (loss) from discontinued operations per common share (Note 3)
Basic and Diluted	$	0.14	$	(0.12)
Class A, B and Series C (as converted) net loss per common share (Note 3)
Basic and Diluted	$	(0.29)	$	(0.21)

See accompanying notes to the unaudited condensed consolidated financial statements.

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SPANISH BROADCASTING SYSTEM, INC.

AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(In thousands)

		Three Months Ended
		March 31,
		2 0 2 3			2 0 2 2
Cash flows from operating activities:
Net loss	$	(2,594)	$	(1,672)
Adjustments to reconcile net loss to net cash provided by operating activities:
Loss (Gain) on the disposal of assets, net of disposal costs		9			(11)
Stock-based compensation		62			62
Depreciation and amortization		673			793
Net barter income		(91)			(287)
Provision for trade doubtful accounts		382			25
Amortization of deferred financing costs		477			477
Unearned revenue-barter		179			126
Changes in operating assets and liabilities:
Trade receivables		10,475			14,826
Prepaid expenses and other current assets		322			411
Other assets		344			498
Accounts payable and accrued expenses		(2,169)			(2,116)
Accrued interest		(7,749)			(7,386)
Other liabilities		(113)			(804)
Net cash provided by operating activities		207			4,942
Cash flows from investing activities:
Purchases of property and equipment		(805)			(710)
Deposit on sale of stations		3,800			-
Deposit towards the acquisition of radio stations		-			(1,250)
Insurance proceeds received for damage to equipment		-			72
Proceeds from the sale of property and equipment		-			11
Net cash provided by (used in) investing activities	$	2,995			(1,877)
Cash flows from financing activities:
Net cash provided by (used in) financing activities	$	-	$	-
Net increase in cash and cash equivalents		3,202			3,065
Cash and cash equivalents at beginning of period		7,517			16,243
Cash and cash equivalents at end of period	$	10,719	$	19,308
Supplemental cash flows information:
Interest paid	$	15,228	$	15,132
Income tax paid with cash	$	-	$	70

See accompanying notes to unaudited condensed consolidated financial statements.

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