Acquisitions and Dispositions

6 Months Ended

Jun. 30, 2019

(3) Acquisitions and Dispositions

On June 10, 2019, the Company entered into an asset purchase agreement to acquire WDMK-FM and three translators in Detroit, MI from Urban One, Inc. for $13.5 million in cash. The purchase price will be partially financed with borrowings from the Company’s credit facility and partially funded with cash from operations. The acquisition, which is subject to approval by the Federal Communications Commission (“FCC”) and other customary closing conditions, is expected to close during the third quarter of 2019.

On March 28, 2019, the Company completed the sale of certain land and improvements in Augusta, GA to a third party for $0.5 million. As a result of the sale, the Company recorded a gain of $0.4 million in the quarter ended March 31, 2019.

On March 15, 2019, the Company agreed to cancel a broadband radio service license in Chattanooga, TN in exchange for a fee of $3.3 million received from Clearwire Spectrum Holdings LLC (“Clearwire”). The Company had previously leased the channels under the broadband radio service license to Clearwire under an agreement that ended on March 15, 2019. As a result of the license cancelation, the Company recorded a gain of $3.1 million in the quarter ended March 31, 2019.

On September 27, 2018, the Company completed the acquisition of WXTU-FM in Philadelphia from Entercom Communications Corp. for $38.0 million in cash. The purchase price was partially financed with $35.0 million in borrowings from the Company’s credit facility and partially funded with $3.0 million of cash from operations. On July 19, 2018, the Company also entered into a local marketing agreement (“LMA”) with Entercom Communications Corp. and began operating WXTU-FM on July 23, 2018. During the term of the LMA, the Company included net revenues and station operating expenses, including the associated LMA fee from operating WXTU-FM, in its consolidated financial statements. The LMA ended on September 27, 2018. The acquisition broadened and diversified the Company’s local radio broadcasting platform and revenue base in the Philadelphia radio market. Further information regarding the acquisition is included in Note 3 to the consolidated financial statements contained in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed on February 19, 2019.

The following unaudited pro forma information for the three and six months ended June 30, 2018 assumes that the acquisition of WXTU-FM in Philadelphia had occurred on January 1, 2018. This unaudited pro forma information has been prepared based on estimates and assumptions, which management believes are reasonable, and are not necessarily indicative of what would have occurred had the acquisition been completed on January 1, 2018 or of results that may occur in the future.

	Three months ended June 30, 2018		Six months ended June 30, 2018
Net revenue	$	64,429,722	$	122,315,767
Operating income		12,083,186		18,253,170
Net income		5,524,831		7,257,410
Basic and diluted net income per share		0.20		0.26