Exhibit 99.4

Citadel Broadcasting Corporation

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	1
	Consolidated Condensed Balance Sheets	1
	Consolidated Condensed Statements of Operations	2
	Consolidated Condensed Statements of Cash Flows	4
	Notes to Consolidated Condensed Financial Statements	6

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (unaudited)

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

(in thousands, except warrants, share and per share amounts)

(unaudited)

	Successor
	June 30, 2011			December 31, 2010
ASSETS
Current assets
Cash and cash equivalents	$	104,803		$	111,624
Accounts receivable, net		142,401			138,751
Prepaid expenses and other current assets (including deferred income tax assets of $12,049 and $23,023 as of June 30, 2011 and December 31, 2010, respectively)		31,937			37,418
Total current assets		279,141			287,793
Long-term assets
Property and equipment, net		196,008			200,121
FCC licenses		887,975			893,610
Goodwill		763,849			763,849
Customer and affiliate relationships, net		162,085			195,080
Other assets, net		63,296			67,661
Total assets	$	2,352,354		$	2,408,114
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable, accrued liabilities and other liabilities	$	49,850		$	56,661
Senior debt, current		—			3,500
Total current liabilities		49,850			60,161
Long-term liabilities
Senior debt, less current portion		296,500			346,500
Senior notes		400,000			400,000
Other long-term liabilities, less current portion		54,068			58,342
Deferred income tax liabilities		255,756			268,454
Total liabilities		1,056,174			1,133,457
Commitments and contingencies
Stockholders’ equity
Preferred stock, $.001 par value – authorized, 50,000,000 shares at June 30, 2011 and December 31, 2010; no shares issued or outstanding at June 30, 2011 and December 31, 2010		—			—
Class A common stock, $.001 par value – authorized, 100,000,000 shares as of June 30, 2011 and December 31, 2010; issued, 4,592,506 and 4,539,601 as of June 30, 2011 and December 31, 2010, respectively; outstanding, 4,394,758 and 4,539,601 shares as of June 30, 2011 and December 31, 2010, respectively		5			5
Class B common stock, $.001 par value – authorized, 100,000,000 shares as of June 30, 2011 and December 31, 2010; issued and outstanding, 19,059,409 and 18,131,638 shares as of June 30, 2011 and December 31, 2010, respectively		19			18
Treasury stock, at cost, 197,748 shares at June 30, 2011		(6,575	)		—
Equity held in reserve		7,887			13,182
Additional paid-in capital (including 22,933,523 and 23,682,484 special warrants as of June 30, 2011 and December 31, 2010, respectively)		1,294,526			1,263,235
Retained earnings (accumulated deficit)		318			(1,783	)
Total stockholders’ equity		1,296,180			1,274,657
Total liabilities and stockholders’ equity	$	2,352,354		$	2,408,114

See accompanying notes to consolidated condensed financial statements.

1

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Operations

(in thousands, except per share amounts)

(unaudited)

	Successor				Predecessor
	Three Months Ended June 30, 2011		Period from June 1, 2010 through June 30, 2010		Period from April 1, 2010 through May 31, 2010
Net revenue	$	184,996	$	64,027	$	130,396
Operating expenses:
Cost of revenue, exclusive of depreciation and amortization shown separately below, and including non-cash compensation expense and related taxes of $748, $0 and $330, respectively		69,006		22,631		47,124
Selling, general and administrative, including non-cash compensation expense and related taxes of $2,553, $0 and $664, respectively		49,312		15,915		31,952
Corporate general and administrative, including non-cash compensation expense and related taxes of $9,161, $106 and $242, respectively		13,366		1,792		3,769
Local marketing agreement fees		109		100		186
Depreciation and amortization		23,074		8,592		4,510
Other, net		1,794		1,013		856
Operating expenses		156,661		50,043		88,397
Operating income		28,335		13,984		41,999
Reorganization items, net		—		—		(1,027,557	)
Interest expense, net		12,085		6,314		7,251
Write-off of deferred financing costs		1,048		—		—
Income before income taxes		15,202		7,670		1,062,305
Income tax expense		6,463		4,540		4,078
Net income	$	8,739	$	3,130	$	1,058,227
Net income per share - basic	$	0.19	$	0.07	$	3.98
Net income per share - diluted	$	0.19	$	0.07	$	3.95
Weighted average common shares outstanding - basic		46,775		45,625		265,977
Weighted average common shares outstanding - diluted		46,775		45,625		267,897

See accompanying notes to consolidated condensed financial statements.

2

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Operations (Continued)

(in thousands, except per share amounts)

(unaudited)

	Successor				Predecessor
	Six Months Ended June 30, 2011		Period from June 1, 2010 through June 30, 2010		Period from January 1, 2010 through May 31, 2010
Net revenue	$	345,018	$	64,027	$	295,424
Operating expenses:
Cost of revenue, exclusive of depreciation and amortization shown separately below, and including non-cash compensation expense and related taxes of $1,391, $0 and $526, respectively		137,528		22,631		116,103
Selling, general and administrative, including non-cash compensation expense and related taxes of $4,717, $0 and $785, respectively		95,504		15,915		78,582
Corporate general and administrative, including non-cash compensation expense and related taxes of $18,705, $106 and $570, respectively		27,818		1,792		8,929
Local marketing agreement fees		208		100		455
Depreciation and amortization		46,117		8,592		11,365
Other, net		9,078		1,013		854
Operating expenses		316,253		50,043		216,288
Operating income		28,765		13,984		79,136
Reorganization items, net		—		—		(1,014,077	)
Interest expense, net		24,496		6,314		17,771
Write-off of deferred financing costs		1,048		—		—
Income before income taxes		3,221		7,670		1,075,442
Income tax expense		1,120		4,540		5,737
Net income	$	2,101	$	3,130	$	1,069,705
Net income per share - basic	$	0.04	$	0.07	$	4.02
Net income per share - diluted	$	0.04	$	0.07	$	3.99
Weighted average common shares outstanding - basic		46,796		45,625		266,041
Weighted average common shares outstanding - diluted		46,796		45,625		267,961

See accompanying notes to consolidated condensed financial statements.

3

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Cash Flows

(in thousands)

(unaudited)

	Successor						Predecessor
	Six Months Ended June 30, 2011			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010
Cash flows from operating activities:
Net income	$	2,101		$	3,130		$	1,069,705
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		46,117			8,592			11,365
Write-off of deferred financing costs		1,048			—			—
Non-cash debt-related amounts		1,893			(439	)		—
Reorganization items, net		—			—			(1,063,639	)
Provision for bad debts		(647	)		221			578
Loss on sale of assets		404			—			708
Deferred income taxes		693			4,483			5,150
Non-cash compensation expense		24,216			—			1,881
Changes in operating assets and liabilities:
Accounts receivable		(2,599	)		(5,514	)		13,884
Prepaid expenses and other current assets		(7,268	)		(1,899	)		(900	)
Accounts payable, accrued liabilities and other obligations		(11,908	)		(12,705	)		5,855
Net cash provided by (used in) operating activities		54,050			(4,131	)		44,587
Cash flows from investing activities:
Capital expenditures		(4,128	)		(430	)		(3,409	)
FCC license upgrade		(65	)		—			—
Proceeds from sale of assets		1,953			—			5
Restricted cash		1,514			605			(7,773	)
Other assets, net		128			8			25
Net cash (used in) provided by investing activities		(598	)		183			(11,152	)
Cash flows from financing activities:
Debt issuance costs		(162	)		—			—
Principal payments on other long-term obligations		(36	)		(8	)		(125	)
Purchase of shares held in treasury		(6,575	)		—			(5	)
Principal payments on Credit Facility		(53,500	)		—			—
Net cash used in financing activities		(60,273	)		(8	)		(130	)
Net (decrease) increase in cash and cash equivalents		(6,821	)		(3,956	)		33,305
Cash and cash equivalents, beginning of period		111,624			90,746			57,441
Cash and cash equivalents, end of period	$	104,803		$	86,790		$	90,746

See accompanying notes to consolidated condensed financial statements.

4

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Cash Flows (Continued)

(in thousands)

(unaudited)

Supplemental schedule of cash flow information

	Successor					Predecessor
	Six Months Ended June 30, 2011			Period from June 1, 2010 through June 30, 2010		Period from January 1, 2010 through May 31, 2010
Cash Payments:
Interest	$	23,537		$	7,058	$	24,478
Income taxes		(469	)		93		481
Reorganization items - cash paid for professional fees		—			—		17,651
Reorganization items - cash paid to unsecured creditors		1,514			—		31,911
Barter Transactions:
Barter revenue - included in net revenue		9,033			1,572		7,574
Barter expenses - included in cost of revenue and selling, general and administrative expense		8,734			1,497		7,278
Other Non-Cash Transaction:
Issuance of notes receivable for sale of station		3,750			—		—

See accompanying notes to consolidated condensed financial statements.

5

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements

(unaudited)

1. Description of the Company

Description of Business

Subsidiaries of Citadel Broadcasting Corporation, a Delaware corporation, own and operate radio stations and hold FCC licenses in 27 states and the District of Columbia. Radio stations serving the same geographic area (i.e., principally a city or combination of cities) are referred to as a market. Citadel Broadcasting Corporation (together with its consolidated subsidiaries, the “Company”) aggregates the geographic markets in which it operates into one reportable segment (“Radio Markets”). The Company’s primary business segment is the Radio Markets segment, which, as of June 30, 2011, consisted of 225 owned and operated radio stations located in over 50 markets across the United States. In addition, the Company also owns and operates Citadel Media (the “Radio Network”), which produces and distributes a variety of radio programming and formats that are syndicated across approximately 4,000 station affiliates and 9,000 program affiliations, and is a separate reportable segment.

Company History

In January 2001, the Company was formed by affiliates of Forstmann Little & Co. (“FL&Co.”) in connection with a leveraged buyout transaction of our predecessor, Citadel Broadcasting Company (“Citadel Broadcasting”).

In February 2006, the Company and Alphabet Acquisition Corp., a wholly-owned subsidiary of the Company (“ABC Merger Sub”), entered into an agreement and plan of merger with The Walt Disney Company (“TWDC”), and ABC Radio Holdings, Inc. (“ABC Radio”), a wholly-owned subsidiary of TWDC. The Company, ABC Merger Sub, TWDC and ABC Radio consummated the (i) separation of the ABC Radio Network business and 22 ABC radio stations (collectively, the “ABC Radio Business”) from TWDC and its subsidiaries, (ii) spin-off of ABC Radio, which holds the ABC Radio Business, and (iii) merger of ABC Merger Sub with and into ABC Radio, with ABC Radio surviving as a wholly-owned subsidiary of the Company (the “ABC Merger”). Immediately thereafter, the separate corporate existence of ABC Merger Sub ceased, and ABC Radio was renamed Alphabet Acquisition Corp. The ABC Merger became effective in June 2007.

Plan of Reorganization

On December 20, 2009 (the “Petition Date”), Citadel Broadcasting Corporation and certain of its subsidiaries (collectively, the “Debtors”) filed voluntary petitions in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) seeking relief under the provisions of Chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) (collectively, the “Chapter 11 Proceedings”). On May 10, 2010, the Debtors filed the second modified joint plan of reorganization of Citadel Broadcasting Corporation and Its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code (including all modifications, the “Emergence Plan”), and on May 19, 2010 (the “Confirmation Date”), the Bankruptcy Court entered an order (the “Confirmation Order”), confirming the Emergence Plan. On June 3, 2010 (the “Emergence Date”), the Debtors consummated their reorganization and the Emergence Plan became effective. As a result, the Company is considered a successor registrant and, pursuant to Rule 12g-3 under the Securities Exchange Act of 1934 (the “Exchange Act”), the Company’s class A common stock is deemed to be registered pursuant to Section 12(g) of the Exchange Act.

Under the Emergence Plan, the Debtors distributed three forms of equity: class A common stock, class B common stock and Special Warrants (as defined in Note 9) to purchase class B common stock.

Correction

Certain amounts in the Predecessor’s consolidated statement of cash flows (previously reported in the Company’s quarterly report on Form 10-Q for the quarter ended June 30, 2010) were corrected in the consolidated statement of cash flows for the five-month period from January 1, 2010 to May 31, 2010, resulting in a decrease in the amount of the line “Reorganization items, net” of $4 million, an increase to net cash provided by operating activities of $4 million, an increase in the change in restricted cash of $4 million and an increase in net cash used in investing activities of $4 million.

2010 Refinancing Transactions

In accordance with the Emergence Plan, approximately $2.1 billion of the debt outstanding prior to the Petition Date was converted into a term loan dated as of the Emergence Date among the Company, the several lenders party thereto (the “Lenders”) and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (the “Emergence Term Loan Facility”) with an initial principal amount of $762.5 million with a five-year term. See Note 7.

6

The Company entered into a new credit agreement dated as of December 10, 2010 (the “Credit Agreement”) by and among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent for the lenders. The Credit Agreement consists of a term loan credit facility of $350.0 million with a term of six years (the “Term Loan”) and a revolving credit facility in the amount of $150.0 million under which a swing line sub-facility of up to $30.0 million may be borrowed and letters of credit may be issued (the “Revolving Loan,” together with the Term Loan, the “Credit Facilities”). The Revolving Loan was undrawn at closing and remained undrawn as of June 30, 2011; however, the Company had $147.1 million of availability under the Revolving Loan due to outstanding letters of credit of $2.9 million. The Company used the proceeds of the Term Loan, along with the net proceeds from the concurrent issuance of the $400.0 million aggregate principal amount of senior notes (the “Senior Notes”), and cash on hand to repay the amounts outstanding under its Emergence Term Loan Facility. See additional discussion in Notes 7 and 8.

Pending Transaction

On March 10, 2011, the Company entered into a definitive merger agreement with Cumulus Media Inc., a Delaware corporation (“Cumulus”), Cumulus Media Holdings Inc. (f/k/a Cadet Holding Corporation), a Delaware corporation and wholly-owned subsidiary of Cumulus (“HoldCo”), and Cadet Merger Corporation, a Delaware corporation and wholly-owned subsidiary of HoldCo (“Cumulus Merger Sub”), which provides that, upon completion of the merger of Cumulus Merger Sub into the Company (the “Cumulus Merger”), each outstanding share of class A common stock and class B common stock of the Company (other than shares owned by Cumulus Merger Sub, held in treasury by the Company or pursuant to which a holder has properly exercised and perfected appraisal rights under Delaware law), will, at the election of the holder thereof and subject to proration as described below, be converted into the right to receive (i) $37.00 in cash (the “Cash Consideration”), or (ii) 8.525 shares of class A common stock, par value $0.01 per share, of Cumulus (the “Stock Consideration” and, together with the Cash Consideration, the “Cumulus Merger Consideration”). In addition, holders of Special Warrants to purchase class B common stock of the Company will have the right to elect to have their Special Warrants adjusted at the effective time of the Cumulus Merger to become the right to receive upon exercise the (i) Cash Consideration or (ii) Stock Consideration, subject to proration as described below.

Holders of nonvested shares of the Company’s class A common stock will be eligible to receive the Cumulus Merger Consideration for their shares pursuant to the original vesting schedule for such shares unless earlier accelerated pursuant to the terms of the merger agreement or applicable grant agreement.

The merger agreement provides that each holder of the Company’s common stock and/or Special Warrants may elect to receive the Cash Consideration or the Stock Consideration for all or any number of such holder’s common stock and/or Special Warrants, however, such elections will be prorated, and consideration adjusted, so that Cumulus will not issue in excess of 151,485,282 shares of Cumulus class A Common Stock (as increased for the exercise of stock options of the Company prior to closing of the Cumulus Merger) or pay in excess of $1,408,728,600 in cash (less the cash value of any dissenting shares and increased for the exercise of Company stock options prior to closing of the Cumulus Merger). In circumstances where holders of common stock and/or Special Warrants of the Company make aggregate elections which exceed either the aggregate available Cash Consideration or aggregate available Stock Consideration, holders of common stock and/or Special Warrants of the Company will receive a combination of Cash Consideration and Stock Consideration pursuant to the terms of the merger agreement. Holders of common stock and/or Special Warrants of the Company who do not make an election will be deemed to have elected, (i) if either the Cash Consideration or the Stock Consideration is oversubscribed, the election that is oversubscribed or (ii) if neither election is oversubscribed, the consideration choice selected by the majority of Citadel shares and warrants for which an election was properly made (or deemed made).

Cumulus has obtained equity and debt financing commitments, subject to certain conditions set forth in definitive agreements related to such commitments, for the transactions contemplated by the merger agreement, the proceeds of which, in addition to cash on hand, will be sufficient for Cumulus to pay the cash portion of the aggregate Cumulus Merger Consideration contemplated by the merger agreement and any associated fees and expenses. In connection with the transactions contemplated by the merger agreement, UBS Securities LLC and affiliates of Crestview Partners and Macquarie Capital (all three, the “Equity Investors” and affiliates of Crestview Partners and Macquarie Capital, the “Original Equity Investors”) have agreed, concurrently with the closing of the Cumulus Merger, to purchase for cash an aggregate amount of up to $500 million in shares of Cumulus common stock, preferred stock or warrants to purchase common stock. Depending on the amount of cash elected to be received by Company stockholders in the merger, the Equity Investors’ commitments may be reduced in accordance with the investment agreement (as amended from time to time) entered into by the Equity Investors and Cumulus in connection with the Cumulus Merger, subject to a minimum aggregate investment of $395.0 million. In addition, under certain circumstances where Cumulus does not require Macquarie Capital’s full investment to consummate the merger, Macquarie Capital may elect to reduce its investment to the extent not so required. Certain affiliates of the Original Equity Investors have guaranteed the respective payment obligations of the termination fees payable by the Equity Investors if the merger agreement is terminated under specified circumstances, pursuant to limited guarantees executed in favor of the Company.

Upon the completion of the Cumulus Merger, the Company would cease to be a publicly reporting company and, when its shares are de-registered, will cease all filings under the Securities Exchange Act of 1934, as amended.

7

The Cumulus Merger was unanimously approved by the respective Boards of Directors of the Company and Cumulus. The merger agreement will be submitted to a vote of stockholders of the Company as of the close of business on August 3, 2011 at a special meeting of Company stockholders to be held on September 15, 2011.

Consummation of the Cumulus Merger is conditioned, among other things, on (i) the adoption of the merger agreement by stockholders of the Company (voting together as a single class), (ii) the absence of any legal injunction, restraint or prohibition on the consummation of the Cumulus Merger and (iii) the receipt of certain regulatory approvals regarding the transactions contemplated by the merger agreement, including expiration or termination of the waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976 and approval by the FCC.

Cumulus stockholders who held in the aggregate approximately 54% of the outstanding voting power of the Cumulus stock as of March 9, 2011 have approved the issuance of Cumulus’ shares in connection with the Cumulus Merger and an amendment to Cumulus’ certificate of incorporation in connection with the transactions contemplated by the merger agreement. No further Cumulus stockholder approval is necessary for consummation of the transactions contemplated by the merger agreement.

Completion of the Cumulus Merger is anticipated to occur by the end of 2011, although there can be no assurance the Cumulus Merger will occur within the expected timeframe or at all.

Pursuant to the merger agreement, except as Cumulus may otherwise consent to in writing (which consent will not be unreasonably withheld, conditioned or delayed), the Company has agreed to (i) conduct, in all material respects, its business in the ordinary course; (ii) use commercially reasonable efforts to preserve intact its business organization and significant business relationships and to retain the services of current key officers and key employees; (iii) use commercially reasonable efforts to comply with the Communications Act of 1934, as amended by the Telecommunications Act of 1996, and FCC rules and policies in the operation of its stations; (iv) promptly deliver to Cumulus copies of any material reports or applications filed with the FCC, subject to certain exceptions; (v) promptly notify Cumulus of any inquiry, investigation or proceeding which to its knowledge has been initiated by the FCC relating to its stations, subject to certain exceptions; and (vi) diligently prosecute any pending FCC applications or any other filings necessary or appropriate in other proceedings before the FCC to preserve or obtain any FCC authorization for its stations without material adverse modification, subject to certain exceptions. In addition, under the merger agreement, the Company is not permitted to, without the prior written consent of Cumulus (which consent will not be unreasonably withheld, conditioned or delayed): (a) incur indebtedness, subject to certain exceptions; (b) (i) adjust, split, combine or reclassify any of its capital stock, (ii) make, declare or pay any dividend, or make any other distribution on, or redeem, purchase or otherwise acquire, any shares of its capital stock or any convertible or exchangeable securities, subject to certain exceptions, (iii) grant any stock appreciation rights or rights to acquire shares of its capital stock, other than grants to employees in the ordinary course of business, or (iv) issue any additional shares of capital stock, subject to certain exceptions; (c) change certain specified compensation arrangements, subject to certain exceptions; (d) sell, transfer, mortgage, encumber or otherwise dispose of any of its properties or assets, subject to certain exceptions; (e) cancel, release, settle or assign any indebtedness or third party claim, action or proceeding, subject to certain exceptions; (f) enter into any local marketing agreement in respect of the programming of any radio or television broadcast station or contract for the acquisition or sale of any radio broadcast station, subject to certain exceptions; (g) enter into any new material line of business, subject to certain exceptions; (h) amend its charter or by-laws or terminate, amend or waive any provisions of any confidentiality or standstill agreements in place with any third parties; (i) except as required by GAAP or the Securities and Exchange Commission as concurred in by its independent auditors or in the ordinary course of business, make any material change in its methods or principles of accounting or make or change any material tax election; (j) enter into or amend in any material respect or waive any of its material rights under specified contracts, subject to certain exceptions; (k) adopt or recommend a plan of dissolution, liquidation, recapitalization, restructuring or other reorganization; (l) except as required by law, enter into or amend in any material respect any collective bargaining agreement; or (m) agree to take, make any commitment to take, or adopt specified resolutions of its board of directors. These constraints could significantly impact the Company’s operations and business strategy as discussed in this report prior to the consummation of the proposed Cumulus Merger or the termination of the merger agreement.

License renewal applications may be pending before the FCC at the time the Cumulus Merger occurs. Pursuant to the merger agreement, Cumulus has agreed to request that the FCC apply its policy permitting license assignments and transfers in transactions involving multiple markets to proceed, notwithstanding the pendency of one or more license renewal applications. Under this policy, Cumulus will agree to assume the position of the Company with respect to any pending renewal applications, and to assume the risks relating to such applications.

The closing of the Cumulus Merger would constitute a “change in control” as defined in the Credit Agreement, which would be considered an event of default, also as defined, and could cause all amounts outstanding under the Credit Agreement to become immediately due and payable.

In addition, the closing of the Cumulus Merger would constitute a “change of control” under the indenture governing the Senior Notes. Following the occurrence of a change of control, the Company would be required to make an offer to purchase all outstanding Senior Notes at a price equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest.

8

It is anticipated that the funds necessary to consummate the Cumulus Merger and related transactions will be funded by new credit facilities and equity financing of Cumulus. Under the merger agreement, upon request by Cumulus, the Company has agreed to commence a debt tender offer to purchase the existing Senior Notes. Cumulus had indicated to the Company that its current intention is not to ask the Company to commence the debt tender offer.

Principles of Consolidation and Presentation

The accompanying unaudited consolidated condensed financial statements of the Company include Citadel Broadcasting Corporation, Citadel Broadcasting, ABC Radio and each of their consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

The Company was required to adopt fresh-start reporting as of the Confirmation Date or such later date when all material conditions precedent to the effectiveness of the Emergence Plan had been satisfied, but no later than the Emergence Date. All material conditions were satisfied on the Emergence Date, and in light of the proximity of this date to the Company’s May 31, 2010 accounting period end, the effects of fresh-start reporting and the Emergence Plan were reported for accounting purposes as if they occurred on May 31, 2010 (the “Fresh-Start Date”). The Company adopted fresh-start reporting provisions in accordance with accounting guidance on reorganizations (see Note 2). The Company applied the provisions of fresh-start reporting as of May 31, 2010 instead of the June 3, 2010 Emergence Date, which did not result in a material difference to the Company’s results of operations or financial condition.

References in this report to “Successor” refer to the Company on or after the Fresh-Start Date. References to “Predecessor” refer to the Company prior to the Fresh-Start Date. Consolidated condensed financial statements as of June 30, 2011 and December 31, 2010, for the three and six months ended June 30, 2011, and for the period from June 1, 2010 through June 30, 2010 represent the Successor’s financial position and results of operations (the “Successor Periods”). The consolidated condensed financial statements for the periods from January 1, 2010 through May 31, 2010 and from April 1, 2010 through May 31, 2010 represent the Predecessor’s results of operations (the “Predecessor Period”). References in this report to the “Company” refer to Citadel Broadcasting Corporation and its consolidated subsidiaries, whether Predecessor and/or Successor, as appropriate. The Predecessor Period reflects the historical accounting basis of the Predecessor’s assets and liabilities, while the Successor Periods reflect assets and liabilities at fair value, based on an allocation of the Company’s enterprise value to its assets and liabilities pursuant to accounting guidance related to business combinations (see Note 2). The Company’s emergence from bankruptcy resulted in a new reporting entity that had no retained earnings or accumulated deficit as of the Fresh-Start Date. Accordingly, the Company’s consolidated condensed financial statements for the Predecessor Period are not comparable to its consolidated condensed financial statements for the Successor Periods.

For the period between the Petition Date and the Fresh-Start Date, the consolidated condensed financial statements of the Predecessor were prepared in accordance with accounting guidance for financial reporting by entities in reorganization under the Bankruptcy Code. Accordingly, reorganization items include the expenses, realized gains and losses, and provisions for losses resulting from the reorganization under the Bankruptcy Code, and are reported separately as reorganization items in the Predecessor’s consolidated condensed statement of operations.

The accompanying unaudited consolidated condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation of results of the interim periods have been made, and such adjustments were of a normal and recurring nature. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in Citadel Broadcasting Corporation’s Annual Report on Form 10-K for the year ended December 31, 2010.

In connection with the ABC Merger, the Company is required to divest certain stations to comply with FCC ownership limits. Therefore, these stations, the carrying value of which is immaterial, were assigned to The Last Bastion Station Trust, LLC (“Last Bastion”) as trustee under a divestiture trust that complies with FCC rules as of the closing date of the ABC Merger. The trustee agreement stipulates that the Company must fund any operating shortfalls of the trustee’s activities, and any excess cash flow generated by the trustee is distributed to the Company. Also, the Company has transferred one other station to a separate divestiture trust to comply with FCC ownership limits in connection with a station acquisition (together with Last Bastion, the “Divestiture Trusts”), and this station was subsequently divested to a third party. The Company has determined that it is the primary beneficiary of the Divestiture Trusts and consolidates the Divestiture Trusts accordingly.

Use of Estimates

Management of the Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with accounting principles generally accepted in the United States. These estimates and assumptions relate in particular to allocations of enterprise value made in connection with fresh-start reporting, fair values of assets and liabilities as of the Fresh-Start Date, the

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evaluation of goodwill and intangible assets for potential impairment, including changes in market conditions that could affect the estimated fair values, the analysis of the measurement of deferred tax assets, including the calculation of a valuation allowance to reduce the amount of deferred tax asset to the amount that is more likely than not to be realized, the identification and quantification of income tax liabilities due to uncertain tax positions, and the determination of the allowance for estimated uncollectible accounts and notes receivable. The Company also uses assumptions when estimating the value of its supplemental executive retirement plan (the “SERP”) and when employing the Black-Scholes valuation model to estimate the fair value of stock options. The Predecessor used estimates to calculate the value of certain fully vested stock units and equity awards containing market conditions and in determining the estimated fair values of its interest rate swap, credit risk adjustments and certain derivative financial instruments. These estimates were based on the information that was available to management at the time of the estimate. Actual results could differ materially from those estimates.

Recent Accounting Standards

In December 2010, the Financial Accounting Standards Board (“FASB”) issued guidance that modifies step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity will be required to perform step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that impairment may exist. This guidance was effective January 1, 2011, and the adoption did not have a material impact on the Company’s consolidated condensed financial statements.

In May 2011, the FASB issued guidance to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and IFRS. The guidance also changes certain fair value measurement principles and enhances the disclosure requirements particularly for Level 3 fair value measurements. This guidance is effective for reporting periods beginning on or after December 15, 2011, with early adoption prohibited. The Company is currently evaluating the effect that the provisions of this pronouncement will have on its financial statements.

In June 2011, the FASB issued guidance to enhance comparability between entities that report under U.S. GAAP and IFRS, and to provide a more consistent method of presenting non-owner transactions that affect an entity’s equity. The guidance eliminates the option to report other comprehensive income and its components in the statement of changes in stockholders’ equity and requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement or in two separate but consecutive statements. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption of the new guidance is permitted and full retrospective application is required. The Company is currently evaluating the effect that the provisions of this pronouncement will have on its financial statements.

2. Emergence from Chapter 11 Proceedings and Fresh-Start Reporting

Plan of Reorganization, Claims Resolution and Plan Distributions

The pre-petition claims of the Debtors are evidenced in the schedules of liabilities filed by the Debtors and by proofs of claim filed by creditors with the Bankruptcy Court. The Bankruptcy Code requires the Bankruptcy Court to set the time within which proofs of claim must be filed in a Chapter 11 case. The Bankruptcy Court established April 21, 2010 as the last date for each person or entity to file a proof of claim (except for governmental units and administrative and priority claims whereby the bar dates were August 17, 2010 and August 2, 2010, respectively). Claims that were objected to are allowed or disallowed through a claims resolution process established by the Bankruptcy Court. Pursuant to objections filed by the Debtors, the Bankruptcy Court has reduced, reclassified and/or disallowed a significant number of claims for varying reasons, including claims that were duplicative, amended, without merit, misclassified or overstated. The claims resolution process is ongoing and will continue until all claims are resolved.

Secured Claims

Holders of senior secured claims received a pro rata share of the Emergence Term Loan Facility and 90% of the equity in the reorganized Successor company (subject to dilution for distributions of equity under the Successor’s equity incentive program). As of June 30, 2011, 41.1 million shares of Successor equity had been distributed with respect to secured claims. See further discussion of equity in the Successor at Note 9.

Unsecured Claims

Holders of unsecured claims, including the secured lenders’ deficiency claim in the stipulated amount of $267.2 million and the claims of the Predecessor’s convertible subordinated noteholders, received a pro rata share of (i) 10% of Successor equity (subject to dilution for distributions of equity under the Successor’s equity incentive program) and (ii) $36.0 million in cash. Once the allowed amount of an unsecured claim is determined through settlement or by Bankruptcy Court order, the claimant is entitled to a distribution as provided for by the Emergence Plan. As of June 30, 2011, 4.3 million shares of equity and $33.7 million in cash had been distributed to holders of allowed unsecured claims that totaled $336.0 million, and approximately 286,000 shares of Successor equity

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and $2.3 million of cash were held in reserve to satisfy remaining allowed, disputed or unreconciled unsecured claims. Shares held in reserve are not designated as class A common stock, class B common stock or Special Warrants until issuance. The cash held in reserve is included with restricted cash and is classified as prepaid expenses and other current assets in the accompanying consolidated condensed balance sheets. The offsetting amount remaining to be disbursed on account of unsecured claims is classified as accounts payable, accrued liabilities and other liabilities in the accompanying consolidated condensed balance sheets. If excess shares of equity and cash remain in reserve after resolution of all disputed unsecured claims, such shares and cash will be distributed to the claimants with allowed unsecured claims pro-rata, based on the number of shares and amount of cash they received pursuant to the Emergence Plan. There is no assurance that there will be sufficient shares and cash to satisfy all allowed claims or any excess shares for any such subsequent distribution.

Administrative and Priority Claims

Pursuant to the Emergence Plan, administrative and priority claims are satisfied with cash. Administrative and priority claims that were allowed as of the Emergence Date were paid in full shortly thereafter. Other administrative claims were required to be asserted by application filed with the Bankruptcy Court by August 2, 2010 (with certain exceptions, including ordinary course of business claims). Proofs of claims for priority claims were required to be submitted by April 21, 2010 (or June 18, 2010 for governmental entities). Any administrative or priority claim that was not asserted in a timely filed application (unless subject to an exception) or timely submitted proof of claim is no longer enforceable against the Debtors. As the claims resolution process remains ongoing, the allowed amounts of certain administrative and priority claims have not yet been established. The Company recorded an estimate of the allowed amount of administrative and priority claims incurred as of the Fresh-Start Date, based on the best information then available to the Company. The claims resolution process for such claims could result in additional expense or income in the Successor’s financial statements if actual results differ from such estimates. Such additional expense or income could be material.

Restricted Cash

As of June 30, 2011 and December 31, 2010, the Company had $2.4 million and $3.9 million, respectively, of restricted cash, which is included in prepaid expenses and other current assets in the accompanying consolidated condensed balance sheets, primarily comprised of cash held in reserve to satisfy remaining allowed, disputed, or unreconciled unsecured claims.

Leases and Contracts

As of the Emergence Date, the Debtors assumed the majority of leases and other executory contracts, including numerous collective bargaining agreements, as well as certain employee benefit programs. Any past due amounts owed under the assumed leases and contracts were required to be cured, and all undisputed cure payments were made shortly after the Emergence Date. Continuing obligations under the assumed leases and contracts will be satisfied in the ordinary course of business. Any lease or contract that was not assumed or rejected by order of the Bankruptcy Court, or that had not otherwise expired or terminated pursuant to its terms, was deemed assumed as of the Emergence Date pursuant to the Emergence Plan. Pre-petition amounts owing under rejected leases and contracts, as well as prospective rejection damage claims, were treated as unsecured claims under the Emergence Plan.

Reorganization Items

Reorganization items shown below were a direct result of the Chapter 11 Proceedings and are presented separately in the accompanying consolidated condensed statements of operations during the five months ended May 31, 2010 and consist of the following:

	Predecessor
	Period from January 1, 2010 through May 31, 2010
	(in thousands)
Gain on extinguishment of debt	$	(139,813	)
Revaluation of assets and liabilities		(921,801	)
SERP liability (See Note 6)		10,510
Professional fees		31,666
Rejected executory contracts		5,361
Reorganization items, net	$	(1,014,077	)

Gain on extinguishment of debt resulted from debt extinguishments exceeding the value of distributions to creditors, and the gain from revaluation of assets and liabilities was a result of the application of fresh-start reporting, as further described below. Professional fees included legal, consulting, and other related services directly associated with the reorganization process. Lease

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rejections represent the net non-cash amounts that resulted from claims associated with the rejections of certain executory contracts and the adjustment of previously recorded liabilities to their estimated allowed claim amounts.

Application of Fresh-Start Reporting

In accordance with fresh-start reporting, the reorganization value of the Successor was allocated to assets and liabilities in conformity with relevant accounting guidance, with any portion that could not be attributed to specific tangible or identified intangible assets of the Successor reported as goodwill. Each liability existing at the Fresh-Start Date, other than deferred taxes, was stated at the present values of amounts expected to be paid.

As of the Fresh-Start Date, the Company’s enterprise value was estimated to be approximately $2.04 billion by using various valuation methods involving numerous projections and assumptions that are inherently subject to significant uncertainties. The net fresh-start valuation adjustments increased the book values of assets, excluding goodwill, and liabilities by $543.8 million and $63.8 million, respectively. The remaining enterprise value of $763.8 million was recorded as goodwill.

3. Accounts Receivable

Accounts receivable, net on the accompanying consolidated condensed balance sheets consisted of the following:

	Successor
	June 30, 2011			December 31, 2010
	(in thousands)
Receivables	$	147,894		$	143,112
Allowance for estimated uncollectible accounts		(5,493	)(a)		(4,361	)(a)
Accounts receivable, net	$	142,401		$	138,751

(a) Since the Company’s accounts receivable balance reflected its estimated fair value as of the Fresh-Start Date, the allowance for estimated uncollectible accounts was zero as of that date. The balance of the allowance for estimated uncollectible accounts as of December 31, 2010 and June 30, 2011 has continued to build in relation to accounts receivable generated since the Fresh-Start Date.

4. Intangible Assets

Successor

Indefinite-Lived Intangible Assets and Goodwill

As a result of fresh-start reporting, FCC licenses were revalued to $893.6 million, which represented an increase of $293.0 million. Upon the application of fresh-start reporting, the Company recorded goodwill of $763.8 million, and the Predecessor’s goodwill of $322.0 million was eliminated.

The Company evaluates its intangible assets for impairment as of October 1, its annual impairment testing date, or more frequently if events or changes in circumstances indicate that the assets might be impaired. As of June 30, 2011, the Company concluded that there had been no conditions or events that would require an interim asset impairment analysis.

If market conditions and operational performance of the Company’s reporting units were to deteriorate and management had no expectation that the performance would improve within a reasonable period of time or if an event occurs or circumstances change that would, more likely than not, reduce the fair value of its intangible assets below the amounts reflected in the balance sheet, the Company may be required to recognize impairment charges in future periods.

The changes in the carrying amounts of FCC licenses and goodwill for the six months ended June 30, 2011 are as follows:

	FCC Licenses			Goodwill
	(in thousands)
Balance as of January 1, 2011	$	893,610		$	763,849
Addition		65			—
Disposition		(5,700	)		—
Balance as of June 30, 2011	$	887,975		$	763,849

Definite-Lived Intangible Assets

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Definite-lived intangible assets consist primarily of customer and affiliate relationships, but also include certain other intangible assets identified in conjunction with fresh-start reporting or acquired in business combinations. In connection with the adoption of fresh-start reporting, the Company’s definite-lived intangible assets were revalued, which resulted in customer and affiliate relationships of $193.4 million and $45.5 million, respectively. This revaluation represented net increases to the customer and affiliate relationships of $176.1 million and $31.6 million, respectively. These assets are being amortized in relation to the economic benefits of such assets over total estimated useful lives of approximately four to six years.

Approximately $16.5 million and $33.0 million of amortization expense was recognized on the intangible assets discussed above during the three and six months ended June 30, 2011, respectively. Approximately $6.3 million of amortization expense was recognized on these intangible assets during the one month ended June 30, 2010.

Other definite-lived intangible assets, excluding the customer relationships and affiliate relationships, are a component of other assets, net, in the accompanying consolidated condensed balance sheets. As a result of fresh-start reporting, other intangible assets, including income contracts and favorable leases, were increased by $36.0 million to $36.7 million. The balance of other intangible assets as of June 30, 2011 and December 31, 2010 was $25.8 million and $30.9 million, respectively. These assets are generally being amortized over their estimated useful lives of approximately three to six years. The amount of amortization expense for definite-lived intangible assets, excluding the customer and affiliate relationships discussed above, during the three and six months ended June 30, 2011 was $2.5 million and $5.0 million, respectively, and $0.8 million during the one month ended June 30, 2010. The Company estimates the following amount of amortization expense over the next five years related to the total definite-lived intangible asset balance as of the Fresh-Start Date:

	(in thousands)
2011	$	76,023
2012		62,836
2013		50,286
2014		22,439
2015		10,295
	$	221,879

Predecessor

Indefinite-Lived Intangible Assets and Goodwill

During the period from January 1, 2010 through May 31, 2010, the Company concluded that there had been no conditions or events that would require an interim asset impairment analysis.

Definite-Lived Intangible Assets

In connection with the ABC Merger, the Predecessor acquired customer relationship and affiliate relationship assets that were being amortized in relation to the economic benefits of such assets over total estimated useful lives of approximately five to seven years. Approximately $2.0 million and $5.0 million of amortization expense was recognized on these intangible assets during the two and five months ended May 31, 2010, respectively.

The amount of amortization expense for definite-lived intangible assets, excluding the customer and affiliate relationships discussed above, during the two and five months ended May 31, 2010 was $0.1 million and $0.2 million, respectively.

5. Acquisitions and Dispositions

During the first quarter of 2011, the Divestiture Trusts completed the sale of a station for a total purchase price of approximately $5.8 million, of which $2.0 million was received in cash. The remainder consists of a note receivable, which is payable monthly with final maturity in January 2018.

6. Other Long-Term Liabilities

Amounts that the Company’s national representation firm paid to settle the Predecessor’s then-remaining obligations under contracts with previous national representation firms that were cancelled in connection with the replacement of the prior firms represented a deferred obligation of the Predecessor. Additionally, the guaranteed minimum amount of national sales for a period specified in the underlying contract with the Predecessor’s national representation firm was not attained, which also resulted in a deferred liability of the Predecessor. The deferred obligation remaining as of the Fresh-Start Date was determined to approximate fair

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value. The deferred amount is being amortized over the term of the underlying agreement as a reduction to national commission expense, which is included in cost of revenue.

As a result of applying fresh-start reporting, the Company also recognized certain unfavorable leases and contracts, which resulted from agreements with rates in excess of market value rates as of the Fresh-Start Date. These amounts are being amortized on a straight-line basis over the terms of the underlying contracts as a component of cost of revenue or selling, general and administrative expenses as appropriate. In addition, the Company’s liability under the SERP was initially recorded at its estimated fair value as of the Fresh-Start Date. Expense amounts related to the liability are being amortized over the applicable service period as a component of non-cash compensation expense and were $0.3 million and $0.6 million during the three and six months ended June 30, 2011. The Company evaluates the estimated fair value of the SERP liability as of each reporting date to determine if any significant changes have occurred in the underlying assumptions. Any change in the fair value is recognized in the statement of operations at the time of adjustment.

7. Senior Debt

Senior debt consisted of the following as of June 30, 2011 and December 31, 2010:

	Successor
	June 30, 2011		December 31, 2010
	(in thousands)
Type of Borrowing
Term Loan	$	296,500	$	350,000
Less current portion of senior debt		—		3,500
Total senior debt less current portion	$	296,500	$	346,500

On the Emergence Date, approximately $2.1 billion of the debt outstanding prior to the Petition Date was converted into the Emergence Term Loan Facility, which was guaranteed by the Company’s operating subsidiaries. The initial principal amount of $762.5 million under the Emergence Term Loan Facility was payable in 20 consecutive quarterly installments of approximately $1.9 million, due on the last day of each fiscal quarter, which commenced on September 30, 2010, with a final maturity of $724.4 million on June 3, 2015. A valuation adjustment of $19.1 million was recorded to reflect the Emergence Term Loan Facility at its estimated fair value upon issuance. This valuation adjustment was being amortized as a reduction of interest expense, net, over the contractual term of the Emergence Term Loan Facility. At the Company’s election, interest on outstanding principal for the Emergence Term Loan Facility accrued at a rate based on either: (a) the greatest of (1) the Prime Rate in effect; (2) the Federal Funds Rate plus 0.50%; or (3) the one-month Eurodollar rate plus 1.0%, in all cases subject to a 4.0% floor, plus, in each case, a spread of 7.0% or (b) the Eurodollar rate, subject to a 3.0% floor, plus 8.0%.

During the period from the Fresh-Start Date through December 10, 2010, interest expense was incurred on the Emergence Term Loan Facility at 11.0%. On December 10, 2010, the Company refinanced the Emergence Term Loan Facility with the proceeds from the issuance of $400.0 million in Senior Notes (see Note 8) and borrowings of $350.0 million under the Term Loan, along with cash on hand. Interest was incurred on the Term Loan during the first six months of 2011 at an annual rate of 4.25%.

The Term Loan is payable in quarterly payments of $875,000, which commenced on March 31, 2011, with the remaining amount payable on December 30, 2016. Outstanding amounts under the Revolving Loan are payable on December 10, 2013. During the first quarter of 2011, the Company made a principal payment in the amount of $3.5 million, representing all principal amounts due during 2011, and during the second quarter of 2011, the Company made an additional principal payment in the amount of $50.0 million. No principal payments are now due until maturity in 2016.

The Company incurred $12.0 million of debt issuance costs in connection with the Credit Facilities, and amortization of these costs was $0.6 million and $1.3 million during the three and six months ended June 30, 2011, respectively. During the three months ended June 30, 2011, the Company wrote off $1.0 million of debt issuance costs in conjunction with the prepayment of the Term Loan.

The Credit Facilities are unconditionally guaranteed by certain of the Company’s subsidiaries and secured by the following: (a) a perfected first priority security interest in, among other things, all accounts receivable, inventory, cash, personal property, material intellectual property and, in each case, proceeds thereof (subject to certain exceptions) of the Company and its guarantor subsidiaries; and (b) a perfected first priority pledge of the capital stock in the Company’s subsidiaries.

The proceeds from the Term Loan and the Revolving Loan bear interest at either (A) ABR (as defined in the Credit Agreement) subject to a 2.0% floor, plus 2.25% or (B) Eurodollar Rate (as defined in the Credit Agreement) subject to a 1.0% floor, plus 3.25%, depending on the Company’s designation.

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The Credit Agreement requires compliance with a consolidated total leverage ratio of 4.5 to 1.0 as of June 30, 2011 (with stepdowns thereafter), a senior secured leverage ratio of 2.25 to 1.0 and consolidated interest coverage ratio of 2.5 to 1.0.

The Credit Agreement also contains customary restrictive non-financial covenants, which, among other things, and with certain exceptions, limit the Company’s ability to incur or guarantee additional indebtedness; consummate asset sales, acquisitions or mergers; make investments; enter into transactions with affiliates; and pay dividends or repurchase stock.

The Company was in compliance with the covenants under its Term Loan as of June 30, 2011.

Predecessor

As a result of the Company’s voluntary petitions for reorganization, all of the Predecessor’s senior debt obligations were accelerated, and the outstanding balances were aggregated as of the Petition Date. The total modified amount of interest-bearing senior debt began incurring interest as of the Petition Date at the non-default rate previously applicable to the Tranche B Term Loan portion of the Predecessor’s senior debt. During the periods from January 1, 2010 through May 31, 2010 and from April 1, 2010 through May 31, 2010, interest expense was incurred on the $2.1 billion outstanding prior to the Petition Date at a rate of approximately 2.0%.

For the period between the Petition Date and the Fresh-Start Date, the Company stopped recognizing and paying interest on outstanding pre-petition debt obligations except for the Predecessor’s senior debt. However, interest expense related to the Predecessor’s senior debt for the period from January 1, 2010 through May 31, 2010 was approximately $1.9 million higher than it would have been absent the voluntary petitions for reorganization due mainly to the conversion of the outstanding interest rate swap liability and accrued facility fee balance as of the Petition Date, as well as the increased interest rate spread being paid on certain components of senior debt.

8. Senior Notes

On December 10, 2010, the Company completed the private placement of $400.0 million aggregate principal amount of the Senior Notes to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S of the Securities Act of 1933, as amended. The private placement of the Senior Notes resulted in net proceeds to the Company of approximately $392.0 million. The Senior Notes were issued pursuant to an indenture (the “Indenture”), dated as of December 10, 2010 by and among the Company, Wilmington Trust Company, a Delaware banking corporation, as trustee, and Deutsche Bank Trust Company Americas, a New York banking corporation, as registrar, authentication agent and paying agent.

The Senior Notes will mature on December 15, 2018, and bear interest at a rate of 7.75% per annum, payable semi-annually in cash in arrears on June 15 and December 15 of each year, beginning on June 15, 2011. The Senior Notes are senior unsecured obligations of the Company and are guaranteed by each of the Company’s subsidiaries that guarantees the Credit Facilities.

The terms of the Indenture, among other things, limit the ability of the Company and its restricted subsidiaries to (i) incur additional indebtedness or issue certain preferred stock; (ii) pay dividends on, or make distributions in respect of, their capital stock or repurchase their capital stock; (iii) make certain investments or other restricted payments; (iv) sell certain assets; (v) create liens or use assets as security in other transactions; (vi) merge, consolidate or transfer or dispose of substantially all of their assets; and (vii) engage in certain transactions with affiliates. These covenants are subject to a number of important limitations and exceptions that are described in the Indenture.

The Senior Notes are redeemable, in whole or in part, at any time after December 15, 2014, at the redemption prices specified in the Indenture, together with accrued and unpaid interest, if any, to the redemption date. At any time prior to December 15, 2013, the Company may redeem up to 35% of the aggregate principal amount of the Senior Notes with the net cash proceeds from one or more equity offerings at a redemption price equal to 107.75% of the principal amount thereof, together with accrued and unpaid interest, if any, to the redemption date. In addition, at any time prior to December 15, 2014, the Company may redeem the Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes so redeemed, plus a make-whole premium, plus accrued and unpaid interest, if any, to the redemption date. The Company may also redeem all or part of the Senior Notes at a redemption price equal to 107.75% of the face amount thereof plus accrued and unpaid interest, if any, to the redemption date if specified change of control or business combination events occur on or before 180 days after the issue date of the Senior Notes.

The Company incurred $9.2 million of debt issuance costs in connection with the issuance of the Senior Notes, and amortization of these costs was $0.3 million and $0.6 million during the three and six months ended June 30, 2011, respectively.

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9. Stockholders’ Equity

Successor

Pursuant to the Emergence Plan and upon the Company’s emergence from bankruptcy, the Company issued three forms of equity: class A common stock, class B common stock and warrants to purchase shares of class B common stock (the “Special Warrants”). As of its emergence from bankruptcy, the Company issued approximately 3.0 million shares of class A common stock; approximately 16.7 million shares of class B common stock and approximately 25.4 million Special Warrants.

The Company is authorized to issue up to 100 million shares of class A common stock, of which approximately 4.4 million shares, net of shares held in treasury, were outstanding as of June 30, 2011, including 0.7 million nonvested shares of class A common stock. Each holder of class A common stock has unlimited voting rights and is entitled to one vote for each share and shall vote, together with the holders of class B common stock, as a single class with respect to the limited number of matters which may be submitted to a vote of the holders of common stock and for which the holders of class B common stock are entitled to vote.

The Company acquired approximately 0.2 million shares of class A common stock for approximately $6.6 million during both the three and six months ended June 30, 2011 through transactions related to the vesting of previously awarded nonvested shares of class A common stock. Upon vesting, the Company withheld shares of stock in an amount sufficient to pay the employee’s minimum statutory withholding tax required by the relevant tax authorities.

The Company is authorized to issue up to 100 million shares of class B common stock, of which approximately 19.1 million shares were issued and outstanding as of June 30, 2011. Holders of class B common stock have certain limitations on their voting rights, but are entitled to vote on most material matters involving the Company, including material asset sales, business combinations and recapitalizations. Each holder of class B common stock is entitled to a separate class vote on any amendment or modification of any specific rights or obligations of the holders of class B common stock that does not similarly affect the rights or obligations of the holders of class A common stock. If certain specific actions are submitted to a vote of the holders of common stock, each share of class B common stock shall be entitled to vote with class A common stock, with each share of common stock having one vote and voting together as a single class. Each share of class B common stock may be converted into one share of class A common stock by the holder, provided that such holder does not have an attributable interest in another entity that would cause the Company to violate applicable FCC multiple ownership rules and regulations.

As of the Emergence Date, the Company issued Special Warrants to purchase up to an aggregate of approximately 25.4 million shares of class B common stock to certain holders of senior claims and general unsecured claims, of which 22.9 million Special Warrants were outstanding as of June 30, 2011. The Special Warrants have a 20-year term and will expire on June 3, 2030. The conversion of the Special Warrants is subject to the Company’s compliance with applicable FCC regulations. Each Special Warrant to purchase class B common stock may be exercised prior to its expiration date at the minimal exercise price, which is the $0.001 per share par value of the class B common stock, provided that ownership of the Company by the holder does not cause the Company to violate applicable FCC rules and regulations surrounding foreign ownership of broadcasting licenses.

The Company is authorized to issue up to 50 million shares of preferred stock. No preferred shares were issued as of June 30, 2011.

The holders of Special Warrants participate in any dividends ratably, provided that no such distribution shall be made to holders of Special Warrants, class A common stock and class B common stock if (i) an FCC ruling, regulation or policy prohibits such distribution to holders of warrants or (ii) the Company’s FCC counsel opines that such distribution is reasonably likely to cause (a) the Company to violate any applicable FCC rules or regulations or (b) any such holder of Special Warrants to be deemed to hold an attributable interest in the Company.

Equity Held in Reserve

Holders of unsecured claims, including the secured lenders’ deficiency claim in the stipulated amount of $267.2 million and the claims of the Predecessor’s convertible subordinated noteholders, received a pro rata share of (i) 10% of Successor equity (subject to dilution for distributions of equity under the Successor’s equity incentive program) and (ii) $36.0 million in cash. Once the allowed amount of an unsecured claim is determined through settlement or by Bankruptcy Court order, the claimant is entitled to a distribution as provided for by the Emergence Plan. As of June 30, 2011, 4.3 million units of equity and $33.7 million in cash had been distributed to holders of allowed unsecured claims that totaled $336.0 million; and approximately 286,000 units of Successor equity and $2.3 million of cash were held in reserve to satisfy remaining allowed, disputed or unreconciled unsecured claims. Shares held in reserve are not designated as class A common stock, class B common stock or Special Warrants until issuance. The Successor equity held in reserve to be disbursed on account of unsecured claims is separately identified in the accompanying consolidated condensed balance sheets. If sufficient excess shares of equity and cash remain in reserve after resolution of all disputed unsecured claims, such shares and cash will be distributed to the claimants with allowed unsecured claims pro-rata, based on the number of shares and amount of cash they received pursuant to the Emergence Plan.

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Predecessor

Citadel Broadcasting Corporation was incorporated in Delaware in 1993 and was initially capitalized by partnerships affiliated with FL&Co. in connection with a leveraged buyout transaction. The Predecessor’s initial public offering registration statement with the Securities and Exchange Commission was declared effective in July 2003. The Predecessor issued 151.7 million shares of its common stock to TWDC’s stockholders in connection with the ABC Merger. In connection with the Company’s reorganization and emergence from bankruptcy, all shares of common stock of the Predecessor outstanding prior to the Emergence Date were cancelled pursuant to the Emergence Plan.

10. Stock-Based Compensation

Successor

The Company adopted the Citadel Broadcasting Corporation 2010 Equity Incentive Plan (the “2010 EI Plan”) via approval of the Bankruptcy Court, effective as of the Emergence Date, which was amended on June 9, 2010. The 2010 EI Plan provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, performance awards, restricted stock units, restricted stock and other stock awards (collectively, the “Awards”).

The aggregate number of shares of common stock available for delivery pursuant to Awards granted under the 2010 EI Plan is 10,000,000 shares, and as of June 30, 2011, the total number of shares that remain authorized, reserved, and available for issuance under the 2010 EI Plan was 5.8 million.

On a pre-tax basis, total stock-based compensation expense for the three and six months ended June 30, 2011 was $11.5 million and $23.6 million, respectively, excluding $0.6 million paid by the Company for taxes related to the vesting of stock awards for each of the three and six months ended June 30, 2011. The associated tax benefit related to the stock-based compensation expense for the three and six months ended June 30, 2011, was $4.6 million and $9.4 million, respectively. As of June 30, 2010, no share-based payments had been issued under the 2010 EI Plan; accordingly, the Company recognized no stock-based compensation expense during June 2010.

As of June 30, 2011, unrecognized pre-tax stock-based compensation expense was approximately $37.9 million and is expected to be recognized over a weighted average period of less than one year.

The following table summarizes the Successor’s stock option activity for the six months ended June 30, 2011:

	Options (in thousands)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Options of Common Stock
Outstanding as of January 1, 2011		3,267		$	29.00
Granted		—			—
Exercised		—			—
Forfeited		—			—
Cancelled		(107	)		29.00
Outstanding as of June 30, 2011		3,160		$	29.00		9.4	$	13,747
Vested or expected to vest as of June 30, 2011 (1)		3,110		$	29.00		9.4	$	13,527
Exercisable as of June 30, 2011		1,053,396		$	29.00		9.4	$	4,582

(1) Options expected to vest represent the options outstanding reduced for estimated forfeitures.

No options were granted or exercised during the six months ended June 30, 2011.

The Successor’s activity related to shares of nonvested stock for the six months ended June 30, 2011 is summarized as follows:

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	Number of  Nonvested Share Awards (in thousands)			Weighted- Average Grant Date Fair Value
Shares of Nonvested Class A Common Stock Awards
Nonvested awards as of January 1, 2011		1,207		$	23.00
Granted		60			33.85
Awards vested		(594	)		23.00
Forfeited		(20	)		23.00
Nonvested awards as of June 30, 2011		653		$	24.00

The total grant date fair value of awards of nonvested shares of class A common stock that vested during the six months ended June 30, 2011 was $13.7 million.

Predecessor

Total stock-based compensation expense for the periods from April 1, 2010 through May 31, 2010 and from January 1, 2010 through May 31, 2010 was $1.2 million and $1.9 million, respectively, on a pre-tax basis. No tax benefit was recognized with respect to this expense in the Predecessor periods since there was a valuation allowance against the Company’s deferred tax asset. The Predecessor issued no share-based payments and there were no options exercised during the period from January 1, 2010 through May 31, 2010. The total fair value of awards of nonvested shares of common stock units that vested during the Predecessor period was $2.9 million.

Nonvested shares of the Predecessor’s common stock and options to purchase shares of the Predecessor’s common stock were generally granted under the Citadel Broadcasting Corporation Amended and Restated 2002 Stock Option and Award Plan (the “2002 Stock Option and Award Plan”). However, pursuant to the Emergence Plan, the 2002 Stock Option and Award Plan was terminated as of the Emergence Date and all share-based payments previously granted thereunder were canceled as of the Emergence Date. As of the Fresh-Start Date, approximately 7.5 million options to purchase common stock and 1.4 million nonvested shares were outstanding.

11. Income Taxes

Successor

For the three and six months ended June 30, 2011, the Company’s effective tax rate was 42.5% and 34.8% respectively. The effective rate differed from the federal tax rate of 35% primarily due to state income taxes, net of federal benefit, and other permanent differences, offset by state tax benefit from changes in enacted tax laws.

For the month ended June 30, 2010, the Company’s effective tax rate was 59.2%. This effective rate differed from the federal tax rate of 35% primarily due to state income taxes, net of federal benefit, non-deductible compensation and other permanent differences.

Predecessor

For the two and five months ended May 31, 2010, the Predecessor’s effective tax rates were 0.4% and 0.5%, respectively. These effective rates differed from the federal tax rate of 35% primarily due to reorganization benefits related to the application of fresh-start reporting for which no income tax expense was recognized, non-deductible restructuring costs, and changes in the Predecessor’s valuation allowance. The Predecessor’s effective tax rate for the two and five months ended May 31, 2010, excluding the impact of adopting fresh-start reporting, would have been 2.9% and 3.7%, respectively. These effective rates differed from the federal tax rate of 35% primarily due to non-deductible restructuring costs offset by changes in the Predecessor’s valuation allowance.

12. Earnings Per Share

Successor

Basic earnings per share for the three and six months ended June 30, 2011 included the outstanding amount of both class A and class B common stock, Special Warrants, whether outstanding or held in reserve to be issued, as well as 0.7 million outstanding nonvested shares of class A common stock. The Company’s class A and class B common stock and Special Warrants, including warrants held in reserve, are treated equally for accounting purposes, and the distinctions relate solely to certain voting restrictions and conversion mechanisms in order to allow the Company to comply with applicable FCC rules and regulations. Diluted earnings per share is computed in the same manner as basic earnings per share after assuming issuance of common stock for all potentially dilutive equivalent shares. There were no potentially dilutive equivalent shares related to options to purchase shares of class A common stock for the three and six months ended June 30, 2011.

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Predecessor

	Predecessor
	Period from April 1, 2010 through May 31, 2010		Period from January 1, 2010 through May 31, 2010
	(In thousands, except per share data)
NUMERATOR:
Income available to common stockholders	$	1,058,227	$	1,069,707
DENOMINATOR:
Weighted average common shares		265,977		266,041
Effect of dilutive securities:
Convertible subordinated notes		1,920		1,920
Denominator for net income per common share—diluted		267,897		267,961
Net income per common share:
Basic	$	3.98	$	4.02
Diluted	$	3.95	$	3.99

The diluted shares outstanding for each of the two and five months ended May 31, 2010 included approximately 1.9 million shares of common stock of the Predecessor related to the conversion of the Predecessor’s convertible subordinated notes. While operating under Chapter 11 of the Bankruptcy Code, the Predecessor was prohibited from paying unsecured pre-petition debts, including the convertible subordinated notes and interest thereon. Therefore, for the two and five months ended May 31, 2010, there was no related interest expense to consider in the calculation of the Predecessor’s diluted shares. There were no potentially dilutive equivalent shares related to nonvested shares of common stock or options to purchase shares of common stock for the two and five months ended May 31, 2010.

13. Fair Value of Financial Instruments

The Company’s financial instruments are measured at fair value on a recurring basis. The related guidance requires, among other things, enhanced disclosures about investments that are measured and reported at fair value and establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. The three levels of the fair value hierarchy are described below:

Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

Level 2—Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

Level 3—Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of June 30, 2011, all of the Company’s financial instruments were classified as level 3 except for its cash equivalents, which were classified as level 1.

The following tables present the changes in level 3 instruments measured on a recurring basis for the six months ended June 30, 2011 and 2010:

	Successor
	January 1, 2011		Expense items recognized		June 30, 2011
	(in thousands)
Financial Liabilities:
SERP liability	$	11,477	$	828	$	12,305

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	Predecessor				Successor
	January 1, 2010		Additions (a)		Expense items recognized		June 30, 2010
	(in thousands)
Financial Liabilities:
SERP liability	$	—	$	10,510	$	138	$	10,648

(a) The Company’s liability under the SERP was valued at $10.5 million and is included in reorganization items, net in the accompanying consolidated condensed statement of operations of the Predecessor.

The following summary presents a description of the methodologies and assumptions used to determine the estimated fair values for the Company’s significant financial instruments.

Cash Equivalents: Cash equivalents represent amounts held in mutual funds that invest in short-term United States Treasury funds or other short-term investments. Due to the short-term nature of these investments, their carrying values were assumed to approximate fair value.

Accounts Receivable, Accounts Payable and Accrued Liabilities: The carrying amount was assumed to approximate the fair value because of the liquidity or short-term maturity of these instruments.

Senior Debt: Based on available evidence, including certain trading prices, the estimated fair value of the Term Loan as of June 30, 2011 approximated its carrying value of $296.5 million.

Senior Notes: Based on available evidence, including certain trading prices, the estimated fair value of the Senior Notes as of June 30, 2011 was $431.0 million compared to the carrying value of $400.0 million.

Other Long-Term Liabilities, including the SERP: The Company’s liability under the SERP was initially recorded at its estimated fair value as of the Fresh-Start Date. The Company evaluates the estimated fair value of the SERP liability as of each reporting date to determine if any significant changes have occurred in the underlying assumptions. Any change in the fair value is recognized in the statement of operations at the time of adjustment. The terms of the Company’s other long-term liabilities approximate the terms in the marketplace. Therefore, the fair values approximated the carrying values of these financial instruments.

14. Reportable Segments

The Company operates two reportable segments, Radio Markets and Radio Network, as there is discrete financial information available for each segment and the segment operating results are reviewed by the chief operating decision maker. The Radio Markets’ revenue is primarily derived from the sale of broadcasting time to local, regional and national advertisers. Revenue for the Radio Network is generated primarily through national advertising. The Company presents segment operating income (“SOI”), which is not calculated according to accounting principles generally accepted in the United States, as the primary measure of operating performance; for planning purposes, including the preparation of the Company’s annual operating budget; to allocate resources to enhance the financial performance of our business; to evaluate the effectiveness of our business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of our results with those of other companies; in communications with our board of directors concerning our financial performance; and when determining management’s incentive compensation. SOI is defined as operating income by segment adjusted to exclude depreciation and amortization, local marketing agreement fees, non-cash compensation expense and related taxes, corporate general and administrative expenses, and other, net. The Company believes the presentation of SOI is relevant and useful for investors because it allows investors to view segment performance in a manner similar to a primary method used by the Company’s management and enhances their ability to understand the Company’s operating performance.

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Three Month Periods

	Successor						Predecessor
	Three Months Ended June 30, 2011			Period from June 1, 2010 through June 30, 2010			Period from April 1, 2010 through May 31, 2010
				(in thousands)
Net revenue:
Radio Markets	$	157,734		$	55,529		$	108,969
Radio Network		28,510			8,918			22,265
Intersegment revenue:
Radio Markets		(1,248	)		(420	)		(838	)
Radio Network		—			—			—
Net revenue	$	184,996		$	64,027		$	130,396
SOI:
Radio Markets	$	65,498		$	24,497		$	47,640
Radio Network		4,481			984			4,674
Corporate general and administrative		(13,366	)		(1,792	)		(3,769	)
Local marketing agreement fees		(109	)		(100	)		(186	)
Non-cash compensation expense and related taxes		(3,301	)		—			(994	)
Depreciation and amortization		(23,074	)		(8,592	)		(4,510	)
Other, net		(1,794	)		(1,013	)		(856	)
Operating income		28,335			13,984			41,999
Reorganization items, net		—			—			(1,027,557	)
Interest expense, net		12,085			6,314			7,251
Write-off of deferred financing costs		1,048			—			—
Income before income taxes		15,202			7,670			1,062,305
Income tax expense		6,463			4,540			4,078
Net income	$	8,739		$	3,130		$	1,058,227
Segment local marketing agreement fees:
Radio Markets	$	109		$	100		$	186
Radio Network		—			—			—
Total segment local marketing agreement fees	$	109		$	100		$	186
Segment non-cash compensation expense and related taxes:
Radio Markets	$	2,958		$	—		$	848
Radio Network		343			—			146
Total segment non-cash compensation expense and related taxes	$	3,301		$	—		$	994
Segment depreciation and amortization:
Radio Markets	$	19,618		$	7,480		$	3,338
Radio Network		3,456			1,112			1,172
Total segment depreciation and amortization	$	23,074		$	8,592		$	4,510

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Six Month Periods

	Successor						Predecessor
	Six Months Ended June 30, 2011			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010
				(in thousands)
Net revenue:
Radio Markets	$	294,099		$	55,529		$	247,112
Radio Network		53,380			8,918			50,324
Intersegment revenue:
Radio Markets		(2,461	)		(420	)		(2,012	)
Radio Network		—			—			—
Net revenue	$	345,018		$	64,027		$	295,424
SOI:
Radio Markets	$	112,461		$	24,497		$	94,023
Radio Network		5,633			984			8,027
Corporate general and administrative		(27,818	)		(1,792	)		(8,929	)
Local marketing agreement fees		(208	)		(100	)		(455	)
Non-cash compensation expense and related taxes		(6,108	)		—			(1,311	)
Depreciation and amortization		(46,117	)		(8,592	)		(11,365	)
Other, net		(9,078	)		(1,013	)		(854	)
Operating income (loss)		28,765			13,984			79,136
Reorganization items, net		—			—			(1,014,077	)
Interest expense, net		24,496			6,314			17,771
Write-off of deferred financing costs		1,048			—			—
Income before income taxes		3,221			7,670			1,075,442
Income tax expense		1,120			4,540			5,737
Net income	$	2,101		$	3,130		$	1,069,705
Segment local marketing agreement fees:
Radio Markets	$	208		$	100		$	455
Radio Network		—			—			—
Total segment local marketing agreement fees	$	208		$	100		$	455
Segment non-cash compensation expense and related taxes:
Radio Markets	$	5,444		$	—		$	1,143
Radio Network		664			—			168
Total segment non-cash compensation expense and related taxes	$	6,108		$	—		$	1,311
Segment depreciation and amortization:
Radio Markets	$	39,206		$	7,480		$	8,370
Radio Network		6,911			1,112			2,995
Total segment depreciation and amortization	$	46,117		$	8,592		$	11,365

	Successor
	June 30, 2011		December 31, 2010
	(in thousands)
Identifiable assets:
Radio Markets, exclusive of goodwill shown separately below	$	1,369,232	$	1,416,723
Goodwill		719,229		719,229

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Total Radio Markets identifiable assets	$	2,088,461	$	2,135,952
Radio Network, exclusive of goodwill shown separately below	$	108,606	$	103,130
Goodwill		44,620		44,620
Total Radio Network identifiable assets	$	153,226	$	147,750
Corporate and other identifiable assets	$	110,667	$	124,412
Total assets	$	2,352,354	$	2,408,114

15. Commitments and Contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, or other sources are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated.

Effective December 31, 2009, the Company’s radio music license agreements with the two largest performance rights organizations, American Society of Composers, Authors and Publishers (“ASCAP”) and Broadcast Music, Inc. (“BMI”), expired. The Radio Music License Committee (“RMLC”), which negotiates music licensing fees for most of the radio industry with ASCAP and BMI, had reached an agreement with these organizations on a temporary fee schedule that reflects a provisional discount of 7.0% against 2009 fee levels. The temporary fee reductions became effective in January 2010. Absent an agreement on longer-term fees between the RMLC and ASCAP and BMI, the U.S. District Court in New York has the authority to make an interim and permanent fee ruling for the new contract period. In May 2010 and June 2010, the U.S. District Court’s judges charged with determining the license fees ruled to further reduce interim fees paid to ASCAP and BMI, respectively, down approximately another 11.0% from the previous temporary fees negotiated with the RMLC. When the final license fees are set (either by negotiation or by court order), the rates will be retroactive to January 1, 2010, and the amounts could be greater or less than the temporary fees and could be material to the Company’s financial results and cash flows. John Sander is currently the chairman of the board of directors of both the Company and BMI.

Litigation

On March 14, 2011, the Company, its board of directors, and Cumulus were named in a putative stockholder class action complaint filed in the District Court of Clark County, Nevada, by a purported Company stockholder. On March 23, 2011, these same defendants, as well as Holdco and Cumulus Merger Sub, were named in a second putative stockholder class action complaint filed in the same court by another purported Company stockholder. The complaints allege that the Company’s directors breached their fiduciary duties by approving the merger for allegedly inadequate consideration and following an allegedly unfair sale process. The complaint in the first action also alleges that the Company’s directors breached their fiduciary duties by allegedly withholding material information relating to the merger. The two complaints further allege that the Company and Cumulus aided and abetted the Company’s directors’ alleged breaches of fiduciary duties, and the complaint filed in the second action alleges, additionally, that Holdco and Cumulus Merger Sub aided and abetted these alleged breaches of fiduciary duties. The complaints seek, among other things, a declaration that the action can proceed as a class action, an order enjoining the completion of the merger, rescission of the merger, attorneys’ fees, and such other relief as the court deems just and proper. The complaint filed in the second action also seeks rescissory damages. On June 23, 2011, the court consolidated the two Nevada actions and appointed lead counsel. On July 29, 2011, lead counsel filed a Notice of Voluntary Dismissal dismissing the claims of one of the two Nevada plaintiffs against all the defendants without prejudice, because the plaintiff no longer had standing to pursue claims on his own behalf or on behalf of the putative class. The claims of the putative class have not yet been dismissed.

On May 6, 2011, two purported common stockholders of the Company filed a putative class action complaint against the Company, its board of directors, Cumulus, Holdco, and Cumulus Merger Sub in the Court of Chancery of the State of Delaware (“Delaware Chancery Court”). On July 19, 2011, the plaintiffs in the Delaware action filed an amended complaint alleging that the Company’s directors breached their fiduciary duties to the Company’s stockholders by approving the merger for allegedly inadequate consideration, following an allegedly unfair sale process, and by failing to disclose material information related to the merger. The amended complaint further alleges that the Company, Cumulus, HoldCo, and Cumulus Merger Sub aided and abetted these alleged fiduciary breaches. The complaint seeks, among other things, an order enjoining the merger, a declaration that the action is properly maintainable as a class action, and rescission of the merger agreement, as well as attorneys’ fees and costs. Also on July 19, 2011, the plaintiffs in the Delaware action filed a Motion for Expedited Proceedings. On July 20, 2011, the plaintiffs in the Delaware action filed a Motion for Preliminary Injunction, seeking an order preliminarily enjoining the merger. On August 1, 2011, the plaintiffs in the Delaware action filed a Notice of Dismissal pursuant to Court of Chancery Rule 41(a)(1)(i) dismissing their claims against all the

23

defendants without prejudice. On August 3, 2011, the plaintiffs in the Delaware action filed a revised notice and proposed Order of Dismissal pursuant to Rule 41(a)(1)(i) dismissing their claims against all defendants without prejudice. On August 5, 2011, the Delaware Court of Chancery signed Plaintiffs’ proposed Order of Dismissal pursuant to Rule 41(a)(1)(i) dated August 3, 2011. The claims of the putative class have not yet been dismissed.

Each of Cumulus and the Company is obliged under certain circumstances to indemnify and hold harmless each of their respective directors and officers from and against any and all claims and liabilities to which such director or officer shall have become subject by reason of being a director or officer, to the full extent permitted under Delaware law. An adverse outcome in these lawsuits could prevent or delay the consummation of the merger and result in substantial costs to the Company and/or Cumulus. It is also possible that other similar lawsuits may be filed in the future. Neither Cumulus nor the Company can reasonably estimate any possible loss from current or future litigation.

Pursuant to the Bankruptcy Code, pre-petition claims (including secured, unsecured, priority and administrative claims) of the Debtors are evidenced in the schedules of liabilities filed by the Debtors with the Bankruptcy Court and by proofs of claim filed by creditors. The process to resolve these claims continues until all pre-petition claims are resolved. In connection with resolving these claims, certain claims could result in additional expense or income in the Successor’s financial statements if actual results differ from estimated liabilities, and such additional expense or income could be material.

The Company is involved in certain other claims and lawsuits arising in the ordinary course of its business. The Company believes that such litigation and claims will be resolved without a material adverse impact on its results of operations, cash flows or financial condition.

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16. Supplemental Consolidating Condensed Financial Information

In connection with the completion of the Cumulus Merger, the Company (the “Guarantor Parent”) and certain of its wholly owned subsidiaries (collectively, the “Non-parent Subsidiary Guarantors”) provided guarantees under HoldCo’s $610.0 million aggregate principal amount 7.75% Senior Notes due 2019 (the “HoldCo Notes”). These guarantees are full and unconditional as well as joint and several. Certain guarantors may be subject to restrictions on their ability to distribute earnings to HoldCo or to its parent company, Cumulus. The remaining subsidiaries of the Company are not guarantors of the HoldCo Notes (collectively, the “Non-guarantors”).

The following tables present consolidating condensed balance sheets as of June 30, 2011 and December 31, 2010, consolidating condensed statements of operations for the three and six months ended June 30, 2011 and 2010, respectively, and consolidating condensed statements of cash flows for the six months ended June 30, 2011 and 2010, respectively, of the Parent Guarantor (on a stand-alone, non-consolidated basis), the Non-parent Subsidiary Guarantors and the Non-guarantors. The operating activities of the separate legal entities included in the Company’s consolidating condensed financial statements are interdependent and reflect certain allocations of assets, liabilities and expenses between the entities that involve the exercise of management judgment.

25

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

CONSOLIDATING CONDENSED BALANCE SHEET

As of June 30, 2011

(Dollars in thousands)

(Unaudited)

	Guarantor Parent (Company)			Non-parent Subsidiary Guarantors		Non-guarantors			Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	89,993		$	14,810	$	—		$	—		$	104,803
Accounts receivable, net		8			142,393		—			—			142,401
Intercompany		(157,349	)		156,591		258			500			—
Prepaid expenses and other current assets		2,487			29,450		—			—			31,937
Total current assets		(64,861	)		343,244		258			500			279,141
Long-term assets
Investments in consolidated subsidiaries		2,103,336			—		—			(2,103,336	)		—
Property and equipment, net		—			196,008		—			—			196,008
FCC licenses		—			—		887,975			—			887,975
Goodwill		—			763,849		—			—			763,849
Customer and affiliate relationships, net		—			162,085		—			—			162,085
Other assets, net		18,036			45,260		—			—			63,296
Total assets	$	2,056,511		$	1,510,446	$	888,233		$	(2,102,836	)	$	2,352,354
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable, accrued liabilities and other liabilities	$	3,796		$	45,296	$	758		$	—		$	49,850
Total current liabilities		3,796			45,296		758			—			49,850
Long-term liabilities
Senior debt, less current portion		296,500			—		—			—			296,500
Senior notes		400,000			—		—			—			400,000
Other long-term liabilities, less current portion		—			54,068		—			—			54,068
Deferred income tax liabilities		60,035			436		195,285			—			255,756
Total liabilities		760,331			99,800		196,043			—			1,056,174
Stockholders’ equity (deficit)
Class A common stock		5			—		—			—			5
Class B common stock		19			—		—			—			19
Treasury stock		(6,575	)		—		—			—			(6,575	)
Equity held in reserve		7,887			—		—			—			7,887
Additional paid-in capital		1,294,526			1,367,751		692,690			(2,060,441	)		1,294,526
Retained earnings (accumulated deficit)		318			42,895		(500	)		(42,395	)		318
Total stockholders’ equity (deficit)		1,296,180			1,410,646		692,190			(2,102,836	)		1,296,180
Total liabilities and stockholders’ equity (deficit)	$	2,056,511		$	1,510,446	$	888,233		$	(2,102,836	)	$	2,352,354

26

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

As Of December 31, 2010

(Dollars in thousands)

	Guarantor Parent (Company)			Non-parent Subsidiary Guarantors		Non-guarantors			Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	99,458		$	12,166	$	—		$	—		$	111,624
Accounts receivable, net		8			138,743		—			—			138,751
Intercompany		(100,719	)		100,466		(698	)		951			—
Prepaid expenses and other current assets		3,989			33,429		—			—			37,418
Total current assets		2,736			284,804		(698	)		951			287,793
Long-term assets
Investments in consolidated subsidiaries		2,068,533			—		—			(2,068,533	)		—
Property and equipment, net		—			200,121		—			—			200,121
FCC licenses		—			—		893,610			—			893,610
Goodwill		—			763,849		—			—			763,849
Customer and affiliate relationships, net		—			195,080		—			—			195,080
Other assets, net		20,833			46,828		—			—			67,661
Total assets	$	2,092,102		$	1,490,682	$	892,912		$	(2,067,582	)	$	2,408,114
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable, accrued liabilities and other liabilities	$	7,410		$	48,997	$	254		$	—		$	56,661
Senior debt, current		3,500			—		—			—			3,500
Total current liabilities		10,910			48,997		254			—			60,161
Long-term liabilities
Senior debt, less current portion		346,500			—		—			—			346,500
Senior notes		400,000			—		—			—			400,000
Other long-term liabilities, less current portion		—			58,342		—			—			58,342
Deferred income tax liabilities		60,035			13,134		195,285			—			268,454
Total liabilities		817,445			120,473		195,539			—			1,133,457
Stockholders’ equity (deficit)
Class A common stock		5			—		—			—			5
Class B common stock		18			—		—			—			18
Equity held in reserve		13,182			—		—			—			13,182
Additional paid-in capital		1,263,235			1,349,061		702,570			(2,051,631	)		1,263,235
Accumulated deficit		(1,783	)		21,148		(5,197	)		(15,951	)		(1,783	)
Total stockholders’ equity (deficit)		1,274,657			1,370,209		697,373			(2,067,582	)		1,274,657
Total liabilities and stockholders’ equity (deficit)	$	2,092,102		$	1,490,682	$	892,912		$	(2,067,582	)	$	2,408,114

54

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Three Months Ended June 30, 2011

(Dollars in thousands)

(Unaudited)

	Guarantor Parent (Company)			Non-parent Subsidiary Guarantors			Non-guarantors			Eliminations			Consolidated
Net revenue	$	—		$	184,996		$	—		$	—		$	184,996
Operating expenses:
Cost of revenue, exclusive of depreciation and amortization and including non-cash compensation expense and related taxes		—			69,006			—			—			69,006
Selling, general and administrative, including non-cash compensation expense and related taxes		—			49,312			—			—			49,312
Corporate general and administrative, including non-cash compensation expense and related taxes		—			13,116			250			—			13,366
Local marketing agreement fees		—			109			—			—			109
Depreciation and amortization		—			23,074			—			—			23,074
Other, net		—			1,794			—			—			1,794
Operating expenses		—			156,411			250			—			156,661
Operating income		—			28,585			(250	)		—			28,335
Non-operating income (expense):
Earnings from consildated subsiadiaries		15,177									(15,177	)		—
Interest expense, net		(12,342	)		257			—			—			(12,085	)
Write-off of deferred financing costs		(1,048	)		—			—			—			(1,048	)
Total non-operating expense, net		1,787			257			—			(15,177	)		(13,133	)
Income before income taxes		1,787			28,842			(250	)		(15,177	)		15,202
Income tax (expense) benefit		6,952			(13,415	)		—			—			(6,463	)
Net income	$	8,739		$	15,427		$	(250	)	$	(15,177	)	$	8,739

27

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Six Months Ended June 30, 2011

(Dollars in thousands)

(Unaudited)

	Guarantor Parent (Company)			Non-parent Subsidiary Guarantors			Non-guarantors			Eliminations			Consolidated
Net revenue	$	—		$	345,018		$	—		$	—		$	345,018
Operating expenses:
Cost of revenue, exclusive of depreciation and amortization and including non-cash compensation expense and related taxes		—			137,528			—			—			137,528
Selling, general and administrative, including non-cash compensation expense and related taxes		—			95,504			—			—			95,504
Corporate general and administrative, including non-cash compensation expense and related taxes		—			27,318			500			—			27,818
Local marketing agreement fees		—			208			—			—			208
Depreciation and amortization		—			46,117			—			—			46,117
Other, net		—			9,078			—			—			9,078
Operating expenses		—			315,753			500			—			316,253
Operating income		—			29,265			(500	)		—			28,765
Non-operating income (expense):
Earnings from consildated subsiadiaries		15,380			—			—			(15,380	)		—
Interest expense, net		(24,991	)		495			—			—			(24,496	)
Write-off of deferred financing costs		(1,048	)		—			—			—			(1,048	)
Total non-operating expense, net		(10,659	)		495			—			(15,380	)		(25,544	)
Income before income taxes		(10,659	)		29,760			(500	)		(15,380	)		3,221
Income tax benefit (expense)		12,760			(13,880	)		—			—			(1,120	)
Net (loss) income	$	2,101		$	15,880		$	(500	)	$	(15,380	)	$	2,101

28

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

(Dollars in thousands)

(Unaudited)

	Successor			Predecessor			Successor			Predecessor			Successor			Predecessor			Successor			Predecessor			Successor			Predecessor
	Period from June 1, 2010 through June 30, 2010			Period from April 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from April 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from April 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from April 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from April 1, 2010 through May 31, 2010
	Guarantor Parent (Company)						Non-parent Subsidiary Guarantors						Non-guarantors						Eliminations						Consolidated
Net revenue	$	—		$	—		$	64,027		$	130,396		$	—		$	—		$	—		$	—		$	64,027		$	130,396
Operating expenses:
Cost of revenue, exclusive of depreciation and amortization shown separately below and including non-cash compensation expense and related taxes		—			—			22,631			47,124			—			—			—			—			22,631			47,124
Selling, general and administrative including non-cash compensation expense and related taxes		—			—			15,915			31,952			—			—			—			—			15,915			31,952
Corporate general and administrative including non-cash compensation expense and related taxes		—			—			1,708			3,525			84			244			—			—			1,792			3,769
Local marketing agreement fees		—			—			100			186			—			—			—			—			100			186
Depreciation and amortization		—			—			8,592			4,510			—			—			—			—			8,592			4,510
Other, net		1,008			—			5			856			—			—			—			—			1,013			856
Operating expenses		1,008			—			48,951			88,153			84			244			—			—			50,043			88,397
Operating income		(1,008	)		—			15,076			42,243			(84	)		(244	)		—			—			13,984			41,999
Non-operating income (expense):
Earnings from consolidated subsiadiaries		6,178			5,260			—			—			—			—			(6,178	)		(5,260	)		—			—
Reorganization items, net		—			1,056,640			—			(29,083	)		—			—			—			—			—			1,027,557
Interest expense, net		(6,348	)		(428	)		34			(6,823	)		—			—			—			—			(6,314	)		(7,251	)
Total non-operating expense, net		(170	)		1,061,472			34			(35,906	)		—			—			(6,178	)		(5,260	)		(6,314	)		1,020,306
Income before income taxes		(1,178	)		1,061,472			15,110			6,337			(84	)		(244	)		(6,178	)		(5,260	)		7,670			1,062,305
Income tax (expense) benefit		4,308			(3,245	)		(8,848	)		2,292			—			(3,125	)		—			—			(4,540	)		(4,078	)
Net (loss) income	$	3,130		$	1,058,227		$	6,262		$	8,629		$	(84	)	$	(3,369	)	$	(6,178	)	$	(5,260	)	$	3,130		$	1,058,227

29

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

(Dollars in thousands)

(Unaudited)

	Successor			Predecessor			Successor			Predecessor			Successor			Predecessor			Successor			Predecessor			Successor			Predecessor
	Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010
	Guarantor Parent (Company)						Non-parent Subsidiary Guarantors						Non-guarantors						Eliminations						Consolidated
Net revenue	$	—		$	—		$	64,027		$	295,424		$	—		$	—		$	—		$	—		$	64,027		$	295,424
Operating expenses:
Cost of revenue, exclusive of depreciation and amortization shown separately below and including non-cash compensation expense and related taxes		—			—			22,631			116,103			—			—			—			—			22,631			116,103
Selling, general and administrative including non-cash compensation expense and related taxes		—			—			15,915			78,582			—			—			—			—			15,915			78,582
Corporate general and administrative including non-cash compensation expense and related taxes		—			—			1,708			8,521			84			408			—			—			1,792			8,929
Local marketing agreement fees		—			—			100			455			—			—			—			—			100			455
Depreciation and amortization		—			—			8,592			11,365			—			—			—			—			8,592			11,365
Other, net		1,008			—			5			854			—			—			—			—			1,013			854
Operating expenses		1,008			—			48,951			215,880			84			408						—			50,043			216,288
Operating (loss) income		(1,008	)		—			15,076			79,544			(84	)		(408	)					—			13,984			79,136
Non-operating income (expense):
Earnings from consildated subsiadiaries		6,178			29,235			—			—			—			—			(6,178	)		(29,235	)		—			—
Reorganization items, net		—			1,043,160			—			(29,083	)		—			—			—			—			—			1,014,077
Interest expense, net		(6,348	)		(1,048	)		34			(16,723	)		—			—			—			—			(6,314	)		(17,771	)
Total non-operating expense, net		(170	)		1,071,347			34			(45,806	)		—			—			(6,178	)		(29,235	)		(6,314	)		996,306
(Loss) income before income taxes		(1,178	)		1,071,348			15,110			33,738			(84	)		(408	)		(6,178	)		(29,235	)		7,670			1,075,442
Income tax benefit (expense)		4,308			(1,642	)		(8,848	)		150			—			(4,245	)		—			—			(4,540	)		(5,737	)
Net income (loss)	$	3,130		$	1,069,705		$	6,262		$	33,888		$	(84	)	$	(4,653	)	$	(6,178	)	$	(29,235	)	$	3,130		$	1,069,705

30

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

Six Months Ended June 30, 2011

(Dollars in thousands)

(Unaudited)

	Guarantor Parent (Company)			Non-parent Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	2,101		$	15,880		$	(500	)	$	(15,380	)	$	2,101
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		—			46,117			—			—			46,117
Write-off of deferred financing costs		1,048			—			—			—			1,048
Non-cash debt-related amounts		1,893			—			—			—			1,893
Provision for bad debts		—			(647	)		—			—			(647	)
Loss on sale of assets		—			329			75			—			404
Deferred income taxes		—			693			—			—			693
Non-cash compensation expense		—			24,216			—			—			24,216
Changes in operating assets and liabilities		44,212			(83,170	)		1,803			15,380			(21,775	)
Net cash (used in) provided by operating activities		49,254			3,418			1,378			—			54,050
Cash flows from investing activities:
Capital expenditures		—			(4,128	)		—			—			(4,128	)
FCC license upgrade		—			—			(65	)		—			(65	)
Proceeds from sale of assets		—			78			1,875			—			1,953
Restricted cash		1,515			(1	)		—			—			1,514
Other assets, net		3			3,313			(3,188	)		—			128
Net cash provided (used in) by investing activities		1,518			(738	)		(1,378	)		—			(598	)
Cash flows from financing activities:
Debt issuance costs		(162	)		—			—			—			(162	)
Principal payments on other long-term obligations		—			(36	)		—			—			(36	)
Purchase of shares held in treasury		(6,575	)		—			—			—			(6,575	)
Principal payments on Credit Facility		(53,500	)		—			—			—			(53,500	)
Net cash used in financing activities		(60,237	)		(36	)		—			—			(60,273	)
Net (decrease) increase in cash and cash equivalents		(9,465	)		2,644			—			—			(6,821	)
Cash and cash equivalents, beginning of period		99,458			12,166			—			—			111,624
Cash and cash equivalents, end of period	$	89,993		$	14,810		$	—		$	—		$	104,803

31

CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Successor			Predecessor			Successor			Predecessor			Successor			Predecessor			Successor			Predecessor			Successor			Predecessor
	Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010			Period from June 1, 2010 through June 30, 2010			Period from January 1, 2010 through May 31, 2010
	Guarantor Parent (Company)						Non-parent SubsidiaryGuarantors						Non-guarantors						Eliminations						Consolidated
Cash flows from operating activities:
Net (loss) income	$	3,130		$	1,069,705		$	6,262		$	33,888		$	(84	)	$	(4,653	)	$	(6,178	)	$	(29,235	)	$	3,130		$	1,069,705
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		—			—			8,592			11,365			—			—			—			—			8,592			11,365
Non-cash debt-related amounts		(439	)		—			—			—			—			—			—			—			(439	)		—
Reorganization items, net		—			(1,092,722	)		—			29,083			—			—			—			—			—			(1,063,639	)
Provision for bad debts		—			—			221			578			—			—			—			—			221			578
Loss on sale of assets		—			—			—			708			—			—			—			—			—			708
Deferred income taxes		(4,324	)		1,565			8,807			3,585			—			—			—			—			4,483			5,150
Non-cash compensation expense		—			1,881			—			—			—			—			—			—			—			1,881
Changes in operating assets and liabilities		(1,850	)		55,691			(24,522	)		(111,643	)		76			4,628			6,178			70,163			(20,118	)		18,839
Net cash (used in) provided by operating activities		(3,483	)		36,120			(640	)		(32,436	)		(8	)		(25	)		—			40,928			(4,131	)		44,587
Cash flows from investing activities:
Capital expenditures		—			—			(430	)		(3,409	)		—			—			—			—			(430	)		(3,409	)
Proceeds from sale of assets		—			—			—			5			—			—			—			—			—			5
Restricted cash		(2	)		—			607			(7,773	)		—			—			—			—			605			(7,773	)
Other assets, net		—			—			—			—			8			25			—			—			8			25
Net cash (used in) provided by investing activities		(2	)		—			177			(11,177	)		8			25			—			—			183			(11,152	)
Cash flows from financing activities:
Principal payments on other long-term obligations		—			—			(8	)		(125	)		—			—			—			—			(8	)		(125	)
Purchase of shares held in treasury		—			(5	)		—			—			—			—			—			—			—			(5	)
Net cash used in financing activities		—			(5	)		(8	)		(125	)		—			—			—			—			(8	)		(130	)
Net (decrease) increase in cash and cash equivalents		(3,485	)		36,115			(471	)		(43,738	)		—			—			—			40,928			(3,956	)		33,305
Cash and cash equivalents, beginning of period		78,424			42,309			12,322			56,060			—			—			—			(40,928	)		90,746			57,441
Cash and cash equivalents, end of period	$	74,939		$	78,424		$	11,851		$	12,322		$	—		$	—		$	—		$	—		$	86,790		$	90,746

32