þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 36-4159663 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ¨ | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | þ |
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Item 1. | Business |
• | obtained total radio industry listener and revenue levels from the Radio Advertising Bureau; |
• | derived historical market revenue statistics and market revenue share percentages from data published by Miller Kaplan, Arase LLP, a public accounting firm that specializes in serving the broadcasting industry and BIA/Kelsey (“BIA”), a media and telecommunications advisory services firm; and |
• | derived all audience share data and audience rankings, including ranking by population, from surveys of people ages 12 and over, listening Monday through Sunday, 6 a.m. to 12 midnight, as reported in the Nielsen Audio Market Report. |
Amusement and recreation | Banking and mortgage | Healthcare services | ||
Arts and entertainment | Food and beverage | Telecommunications | ||
Automotive dealers | Furniture and home furnishings |
• | a station’s share of audiences and the demographic groups targeted by advertisers (as measured by ratings surveys); |
• | the supply and demand for radio advertising time and for time targeted at particular demographic groups; and |
• | certain additional qualitative factors. |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Abilene, TX | KBCY FM | Tye, TX | 99.7 | August 1, 2021 | |||||
KCDD FM | Hamlin, TX | 103.7 | August 1, 2021 | ||||||
KHXS FM | Merkel, TX | 102.7 | August 1, 2021 | ||||||
KTLT FM | Anson, TX | 98.1 | August 1, 2021 | ||||||
Albany, GA | WALG AM | Albany, GA | 1590 | April 1, 2020 | |||||
WEGC FM | Sasser, GA | 107.7 | April 1, 2020 | ||||||
WGPC AM | Albany, GA | 1450 | April 1, 2020 | ||||||
WJAD FM | Leesburg, GA | 103.5 | April 1, 2020 | ||||||
WKAK FM | Albany, GA | 104.5 | April 1, 2020 | ||||||
WNUQ FM | Sylvester, GA | 102.1 | April 1, 2020 | ||||||
WQVE FM | Albany, GA | 101.7 | April 1, 2020 | ||||||
Albuquerque, NM | KKOB AM | Albuquerque, NM | 770 | October 1, 2021 | |||||
KKOB FM | Albuquerque, NM | 93.3 | October 1, 2021 | ||||||
KMGA FM | Albuquerque, NM | 99.5 | October 1, 2021 | ||||||
KNML AM | Albuquerque, NM | 610 | October 1, 2021 | ||||||
KRST FM | Albuquerque, NM | 92.3 | October 1, 2021 | ||||||
KTBL AM | Los Ranchos, NM | 1050 | October 1, 2021 | ||||||
KDRF FM | Albuquerque, NM | 103.3 | October 1, 2021 | ||||||
KBZU FM | Albuquerque, NM | 96.3 | October 1, 2012 | ||||||
Allentown, PA | WCTO FM | Easton, PA | 96.1 | August 1, 2022 | |||||
WLEV FM | Allentown, PA | 100.7 | August 1, 2022 | ||||||
Amarillo, TX | KARX FM | Claude, TX | 95.7 | August 1, 2021 | |||||
KPUR AM | Amarillo, TX | 1440 | August 1, 2021 | ||||||
KPUR FM | Canyon, TX | 107.1 | August 1, 2021 | ||||||
KQIZ FM | Amarillo, TX | 93.1 | August 1, 2021 | ||||||
KNSH AM | Canyon, TX | 1550 | August 1, 2021 | ||||||
KZRK FM | Canyon, TX | 107.9 | August 1, 2021 | ||||||
Ann Arbor, MI | WLBY AM | Saline, MI | 1290 | October 1, 2020 | |||||
WQKL FM | Ann Arbor, MI | 107.1 | October 1, 2020 | ||||||
WTKA AM | Ann Arbor, MI | 1050 | October 1, 2020 | ||||||
WWWW FM | Ann Arbor, MI | 102.9 | October 1, 2020 | ||||||
Appleton, WI | WNAM AM | Neenah Menasha, WI | 1280 | December 1, 2020 | |||||
WOSH AM | Oshkosh, WI | 1490 | December 1, 2020 | ||||||
WVBO FM | Winneconne, WI | 103.9 | December 1, 2020 | ||||||
WPKR FM | Omro,WI | 99.5 | December 1, 2020 | ||||||
Atlanta, GA | WKHX FM | Marietta, GA | 101.5 | April 1, 2020 | |||||
WYAY FM | Gainesville, GA | 106.7 | April 1, 2020 | ||||||
WWWQ FM | Atlanta, GA | 99.7 | April 1, 2020 | ||||||
WNNX FM | College Park, GA | 100.5 | April 1, 2020 | ||||||
Baton Rouge, LA | KQXL FM | New Roads, LA | 106.5 | June 1, 2020 | |||||
WRQQ FM | Hammond, LA | 103.3 | June 1, 2020 | ||||||
WEMX FM | Kentwood, LA | 94.1 | June 1, 2020 | ||||||
WIBR AM | Baton Rouge, LA | 1300 | June 1, 2012 | ||||||
WXOK AM | Port Allen, LA | 1460 | June 1, 2020 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Beaumont, TX | KAYD FM | Silsbee, TX | 101.7 | August 1, 2021 | |||||
KBED AM | Nederland, TX | 1510 | August 1, 2021 | ||||||
KIKR AM | Beaumont, TX | 1450 | August 1, 2021 | ||||||
KQXY FM | Beaumont, TX | 94.1 | August 1, 2021 | ||||||
KTCX FM | Beaumont, TX | 102.5 | August 1, 2021 | ||||||
Birmingham, AL | WAPI AM | Birmingham, AL | 1070 | April 1, 2020 | |||||
WJOX AM | Birmingham, AL | 690 | April 1, 2020 | ||||||
WJOX FM | Birmingham, AL | 94.5 | April 1, 2020 | ||||||
WZRR FM | Birmingham, AL | 99.5 | April 1, 2020 | ||||||
WUHT FM | Birmingham, AL | 107.7 | April 1, 2020 | ||||||
WJQX FM | Birmingham, AL | 100.5 | April 1, 2020 | ||||||
Blacksburg, VA | WBRW FM | Blacksburg, VA | 105.3 | October 1, 2019 | |||||
WFNR AM | Blacksburg, VA | 710 | October 1, 2019 | ||||||
WNMX FM | Christiansburg, VA | 100.7 | October 1, 2019 | ||||||
WRAD AM | Radford, VA | 1460 | October 1, 2019 | ||||||
WWBU FM | Radford, VA | 101.7 | October 1, 2019 | ||||||
WPSK FM | Pulaski, VA | 107.1 | October 1, 2019 | ||||||
Bloomington, IL | WBNQ FM | Bloomington, IL | 101.5 | December 1, 2020 | |||||
WBWN FM | Le Roy, IL | 104.1 | December 1, 2020 | ||||||
WJEZ FM | Dwight, IL | 98.9 | December 1, 2020 | ||||||
WJBC AM | Bloomington, IL | 1230 | December 1, 2020 | ||||||
WJBC FM | Pontiac, IL | 93.7 | December 1, 2020 | ||||||
Boise, ID | KBOI AM | Boise, ID | 670 | October 1, 2021 | |||||
KIZN FM | Boise, ID | 92.3 | October 1, 2021 | ||||||
KKGL FM | Nampa, ID | 96.9 | October 1, 2021 | ||||||
KQFC FM | Boise, ID | 97.9 | October 1, 2021 | ||||||
KTIK FM | New Plymouth, ID | 93.1 | October 1, 2021 | ||||||
KTIK AM | Nampa, ID | 1350 | October 1, 2021 | ||||||
Bridgeport, CT | WEBE FM | Westport, CT | 107.9 | April 1, 2022 | |||||
WICC AM | Bridgeport, CT | 600 | April 1, 2022 | ||||||
Buffalo, NY | WEDG FM | Buffalo, NY | 103.3 | June 1, 2022 | |||||
WGRF FM | Buffalo, NY | 96.9 | June 1, 2022 | ||||||
WHLD AM | Niagara Falls, NY | 1270 | June 1, 2022 | ||||||
WHTT FM | Buffalo, NY | 104.1 | June 1, 2022 | ||||||
WBBF AM | Buffalo, NY | 1120 | June 1, 2022 | ||||||
Charleston, SC | WSSX FM | Charleston, SC | 95.1 | December 1, 2019 | |||||
WIWF FM | Charleston, SC | 96.9 | December 1, 2019 | ||||||
WTMA AM | Charleston, SC | 1250 | December 1, 2019 | ||||||
WWWZ FM | Summerville, SC | 93.3 | December 1, 2019 | ||||||
WMGL FM | Ravenel, SC | 107.3 | December 1, 2019 | ||||||
Chattanooga, TN | WGOW AM | Chattanooga, TN | 1150 | August 1, 2020 | |||||
WGOW FM | Soddy-Daisy, TN | 102.3 | August 1, 2020 | ||||||
WOGT FM | East Ridge, TN | 107.9 | August 1, 2020 | ||||||
WSKZ FM | Chattanooga, TN | 106.5 | August 1, 2020 | ||||||
Chicago, IL | WLS AM | Chicago, IL | 890 | December 1, 2020 | |||||
WLS FM | Chicago, IL | 94.7 | December 1, 2020 | ||||||
WLUP FM | Chicago, IL | 97.9 | December 1, 2020 | ||||||
WKQX FM | Chicago, IL | 101.1 | December 1, 2020 | ||||||
Cincinnati, OH | WNNF FM | Cincinnati, OH | 94.1 | October 1, 2020 | |||||
WOFX FM | Cincinnati, OH | 92.5 | October 1, 2020 | ||||||
WRRM FM | Cincinnati, OH | 98.5 | October 1, 2020 | ||||||
WGRR FM | Hamilton, OH | 103.5 | October 1, 2020 | ||||||
WFTK FM | Lebanon, OH | 96.5 | October 1, 2020 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Colorado Springs, CO | KKFM FM | Colorado Springs, CO | 98.1 | April 1, 2021 | |||||
KKMG FM | Pueblo, CO | 98.9 | April 1, 2021 | ||||||
KKPK FM | Colorado Springs, CO | 92.9 | April 1, 2021 | ||||||
KCSF AM | Colorado Springs, CO | 1300 | April 1, 2021 | ||||||
KVOR AM | Colorado Springs, CO | 740 | April 1, 2021 | ||||||
KATC FM | Colorado Springs, CO | 95.1 | April 1, 2021 | ||||||
Columbia, MO | KBBM FM | Jefferson City, MO | 100.1 | February 1, 2021 | |||||
KBXR FM | Columbia, MO | 102.3 | February 1, 2021 | ||||||
KFRU AM | Columbia, MO | 1400 | February 1, 2021 | ||||||
KJMO FM | Linn, Mo | 97.5 | February 1, 2021 | ||||||
KLIK AM | Jefferson City, MO | 1240 | February 1, 2021 | ||||||
KOQL FM | Ashland, MO | 106.1 | February 1, 2021 | ||||||
KPLA FM | Columbia, MO | 101.5 | February 1, 2021 | ||||||
KZJF FM | Jefferson City, MO | 104.1 | February 1, 2021 | ||||||
Columbia, SC | WISW AM | Columbia, SC | 1320 | December 1, 2019 | |||||
WLXC FM | Columbia, SC | 103.1 | December 1, 2019 | ||||||
WNKT FM | Eastover, SC | 107.5 | December 1, 2019 | ||||||
WOMG FM | Lexington, SC | 98.5 | December 1, 2019 | ||||||
WTCB FM | Orangeburg, SC | 106.7 | December 1, 2019 | ||||||
Columbus-Starkville, MS | WKOR FM | Columbus, MS | 94.9 | June 1, 2020 | |||||
WMXU FM | Starkville, MS | 106.1 | June 1, 2020 | ||||||
WNMQ FM | Columbus, MS | 103.1 | June 1, 2020 | ||||||
WSMS FM | Artesia, MS | 99.9 | June 1, 2020 | ||||||
WSSO AM | Starkville, MS | 1230 | June 1, 2020 | ||||||
Dallas, TX | WBAP AM | Fort Worth, TX | 820 | August 1, 2021 | |||||
KSCS FM | Fort Worth, TX | 96.3 | August 1, 2021 | ||||||
KLIF AM | Dallas, TX | 570 | August 1, 2021 | ||||||
KPLX FM | Fort Worth, TX | 99.5 | August 1, 2021 | ||||||
KLIF FM | Haltom City, TX | 93.3 | August 1, 2021 | ||||||
KTCK AM | Dallas, TX | 1310 | August 1, 2013 | ||||||
KTCK FM | Flower Mound, TX | 96.7 | August 1, 2021 | ||||||
KESN FM | Allen, TX | 103.3 | August 1, 2021 | ||||||
Des Moines, IA | KBGG AM | Des Moines, IA | 1700 | February 1, 2021 | |||||
KHKI FM | Des Moines, IA | 97.3 | February 1, 2021 | ||||||
KGGO FM | Des Moines, IA | 94.9 | February 1, 2021 | ||||||
KJJY FM | West Des Moines, IA | 92.5 | February 1, 2021 | ||||||
KWQW FM | Boone, IA | 98.3 | February 1, 2021 | ||||||
Detroit, MI | WJR AM | Detroit, MI | 760 | October 1, 2020 | |||||
WDVD FM | Detroit, MI | 96.3 | October 1, 2020 | ||||||
WDRQ FM | Detroit, MI | 93.1 | October 1, 2020 | ||||||
Erie, PA | WXKC FM | Erie, PA | 99.9 | August 1, 2022 | |||||
WXTA FM | Edinboro, PA | 97.9 | August 1, 2022 | ||||||
WRIE AM | Erie, PA | 1260 | August 1, 2022 | ||||||
WQHZ FM | Erie, PA | 102.3 | August 1, 2022 | ||||||
Eugene, OR | KEHK FM | Brownsville, OR | 102.3 | February 1, 2022 | |||||
KSCR AM | Eugene, OR | 1320 | February 1, 2022 | ||||||
KUGN AM | Eugene, OR | 590 | February 1, 2022 | ||||||
KUJZ FM | Creswell, OR | 95.3 | February 1, 2022 | ||||||
KZEL FM | Eugene, OR | 96.1 | February 1, 2022 | ||||||
Fayetteville, AR | KAMO FM | Rogers, AR | 94.3 | June 1, 2020 | |||||
KFAY AM | Farmington, AR | 1030 | June 1, 2020 | ||||||
KQSM FM | Fayetteville, AR | 92.1 | June 1, 2020 | ||||||
KMCK FM | Prairie Grove, AR | 105.7 | June 1, 2020 | ||||||
KKEG FM | Bentonville, AR | 98.3 | June 1, 2020 | ||||||
KYNG AM | Springdale, AR | 1590 | June 1, 2020 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
KRMW FM | Cedarville, AR | 95 | June 1, 2020 | ||||||
Fayetteville, NC | WFNC AM | Fayetteville, NC | 640 | December 1, 2019 | |||||
WMGU FM | Southern Pines, NC | 106.9 | December 1, 2019 | ||||||
WQSM FM | Fayetteville, NC | 98.1 | December 1, 2019 | ||||||
WRCQ FM | Dunn, NC | 103.5 | December 1, 2019 | ||||||
Flint, MI | WDZZ FM | Flint, MI | 92.7 | October 1, 2020 | |||||
WWCK AM | Flint, MI | 1570 | October 1, 2020 | ||||||
WWCK FM | Flint, MI | 105.5 | October 1, 2020 | ||||||
WFBE FM | Flint, MI | 95.1 | October 1, 2020 | ||||||
WTRX AM | Flint, MI | 1330 | October 1, 2020 | ||||||
Florence, SC | WBZF FM | Hartsville, SC | 98.5 | December 1, 2019 | |||||
WCMG FM | Latta, SC | 94.3 | December 1, 2019 | ||||||
WHLZ FM | Marion, SC | 100.5 | December 1, 2019 | ||||||
WMXT FM | Pamplico, SC | 102.1 | December 1, 2019 | ||||||
WWFN FM | Lake City, SC | 100.1 | December 1, 2019 | ||||||
WYMB AM | Manning, SC | 920 | December 1, 2019 | ||||||
WYNN AM | Florence, SC | 540 | December 1, 2019 | ||||||
WYNN FM | Florence, SC | 106.3 | December 1, 2019 | ||||||
Fort Smith, AR | KBBQ FM | Van Buren, AR | 102.7 | June 1, 2020 | |||||
KLSZ FM | Fort Smith, AR | 100.7 | June 1, 2020 | ||||||
KOMS FM | Poteau, OK | 107.3 | June 1, 2021 | ||||||
Fort Walton Beach, FL | WFTW AM | Ft Walton Beach, FL | 1260 | February 1, 2020 | |||||
WKSM FM | Ft Walton Beach, FL | 99.5 | February 1, 2020 | ||||||
WNCV FM | Shalimar, FL | 93.3 | February 1, 2020 | ||||||
WYZB FM | Mary Esther, FL | 105.5 | February 1, 2020 | ||||||
WZNS FM | Ft Walton Beach, FL | 96.5 | February 1, 2020 | ||||||
Fresno, CA | KSKS FM | Fresno, CA | 93.7 | December 1, 2021 | |||||
KMJ FM | Fresno, CA | 105.9 | December 1, 2021 | ||||||
KMJ AM | Fresno, CA | 580.0 | December 1, 2021 | ||||||
KMGV FM | Fresno, CA | 97.9 | December 1, 2021 | ||||||
KWYE FM | Fresno, CA | 101.1 | December 1, 2021 | ||||||
Grand Rapids, MI | WJRW AM | Grand Rapids, MI | 1340 | October 1, 2020 | |||||
WTNR FM | Holland, MI | 94.5 | October 1, 2020 | ||||||
WLAV FM | Grand Rapids, MI | 96.9 | October 1, 2020 | ||||||
WBBL FM | Greenville, MI | 107.3 | October 1, 2020 | ||||||
WHTS FM | Coopersville, MI | 105.3 | October 1, 2020 | ||||||
Green Bay, WI | WDUZ AM | Green Bay, WI | 1400 | December 1, 2020 | |||||
WDUZ FM | Brillion, WI | 107.5 | December 1, 2020 | ||||||
WKRU FM | Allouez, WI | 106.7 | December 1, 2020 | ||||||
WOGB FM | Reedsville, WI | 103.1 | December 1, 2020 | ||||||
WPCK FM | Denmark, WI | 104.9 | December 1, 2020 | ||||||
WQLH FM | Green Bay, WI | 98.5 | December 1, 2020 | ||||||
Harrisburg, PA | WHGB AM | Harrisburg, PA | 1400 | August 1, 2022 | |||||
WNNK FM | Harrisburg, PA | 104.1 | August 1, 2022 | ||||||
WWKL FM | Mechanicsburg, PA | 93.5 | August 1, 2022 | ||||||
WZCY FM | Hershey, PA | 106.7 | August 1, 2014 | ||||||
WQXA FM | York, PA | 105.7 | August 1, 2022 | ||||||
Houston, TX | KRBE FM | Houston, TX | 104.1 | August 1, 2021 | |||||
Huntsville, AL | WHRP FM | Gurley, AL | 94.1 | April 1, 2020 | |||||
WUMP AM | Madison, AL | 730 | April 1, 2020 | ||||||
WVNN AM | Athens, AL | 770 | April 1, 2020 | ||||||
WVNN FM | Trinity, AL | 92.5 | April 1, 2020 | ||||||
WWFF FM | New Market, AL | 93.3 | April 1, 2020 | ||||||
WZYP FM | Athens, AL | 104.3 | April 1, 2020 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Indianapolis, IN | WJJK FM | Noblesville, IN | 104.5 | August 1, 2020 | |||||
WFMS FM | Fishers, IN | 95.5 | August 1, 2020 | ||||||
WRWM FM | Lawrence, IN | 93.9 | August 1, 2020 | ||||||
Johnson City, TN | WXSM AM | Blountville, TN | 640 | August 1, 2020 | |||||
WJCW AM | Johnson City, TN | 910 | August 1, 2020 | ||||||
WGOC AM | Kingsport, TN | 1320 | August 1, 2020 | ||||||
WKOS FM | Kingsport, TN | 104.9 | August 1, 2020 | ||||||
WQUT FM | Johnson City, TN | 101.5 | August 1, 2020 | ||||||
Kansas City, MO | KCFX FM | Harrisonville, MO | 101.1 | February 1, 2021 | |||||
KCHZ FM | Ottawa, KS | 95.7 | June 1, 2021 | ||||||
KCJK FM | Garden City, MO | 105.1 | February 1, 2021 | ||||||
KCMO AM | Kansas City, MO | 710 | February 1, 2021 | ||||||
KCMO FM | Shawnee, KS | 94.9 | June 1, 2021 | ||||||
KMJK FM | North Kansas City, MO | 107.3 | February 1, 2021 | ||||||
Knoxville, TN | WIVK FM | Knoxville, TN | 107.7 | August 1, 2020 | |||||
WNML AM | Knoxville, TN | 990 | August 1, 2020 | ||||||
WNML FM | Friendsville, TN | 99.1 | August 1, 2020 | ||||||
WOKI FM | Oliver Springs, TN | 98.7 | August 1, 2020 | ||||||
Kokomo, IN | WWKI FM | Kokomo, IN | 100.5 | August 1, 2020 | |||||
Lafayette, LA | KNEK AM | Washington, LA | 1190 | June 1, 2020 | |||||
KRRQ FM | Lafayette, LA | 95.5 | June 1, 2020 | ||||||
KSMB FM | Lafayette, LA | 94.5 | June 1, 2020 | ||||||
KXKC FM | New Iberia, LA | 99.1 | June 1, 2020 | ||||||
KNEK FM | Washington, LA | 104.7 | June 1, 2020 | ||||||
Lake Charles, LA | KAOK AM | Lake Charles, LA | 1400 | June 1, 2020 | |||||
KBIU FM | Lake Charles, LA | 103.3 | June 1, 2020 | ||||||
KKGB FM | Sulphur, LA | 101.3 | June 1, 2020 | ||||||
KQLK FM | De Ridder, LA | 97.9 | June 1, 2020 | ||||||
KXZZ AM | Lake Charles, LA | 1580 | June 1, 2020 | ||||||
KYKZ FM | Lake Charles, LA | 96.1 | June 1, 2020 | ||||||
Lancaster, PA | WIOV FM | Ephrata, PA | 105.1 | August 1, 2022 | |||||
WIOV AM | Reading, PA | 1240 | August 1, 2022 | ||||||
Lexington, KY | WCYN FM | Cynthiana, KY | 102.3 | August 1, 2020 | |||||
WLTO FM | Nicholasville, KY | 102.5 | August 1, 2020 | ||||||
WLXX FM | Lexington, KY | 92.9 | August 1, 2020 | ||||||
WVLK AM | Lexington, KY | 590 | August 1, 2020 | ||||||
WVLK FM | Richmond, KY | 101.5 | August 1, 2020 | ||||||
WXZZ FM | Georgetown, KY | 103.3 | August 1, 2020 | ||||||
Little Rock, AR | KAAY AM | Little Rock, AR | 1090 | June 1, 2020 | |||||
KARN AM | Little Rock, AR | 920 | June 1, 2012 | ||||||
KIPR FM | Pine Bluff, AR | 92.3 | June 1, 2020 | ||||||
KLAL FM | Wrightsville, AR | 107.7 | June 1, 2020 | ||||||
KPZK AM | Little Rock, AR | 1250 | June 1, 2020 | ||||||
KURB FM | Little Rock, AR | 98.5 | June 1, 2020 | ||||||
KARN FM | Sheridan, AR | 102.9 | June 1, 2020 | ||||||
Los Angeles, CA | KABC AM | Los Angeles, CA | 790 | December 1, 2021 | |||||
KLOS FM | Los Angeles, CA | 95.5 | December 1, 2021 | ||||||
Macon, GA | WAYS AM | Macon, GA | 1500 | April 1, 2020 | |||||
WDEN FM | Macon, GA | 99.1 | April 1, 2020 | ||||||
WLZN FM | Macon, GA | 92.3 | April 1, 2020 | ||||||
WMAC AM | Macon, GA | 940 | April 1, 2020 | ||||||
WMGB FM | Montezuma, GA | 95.1 | April 1, 2020 | ||||||
WPEZ FM | Jeffersonville, GA | 93.7 | April 1, 2020 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Melbourne, FL | WAOA FM | Melbourne, FL | 107.1 | February 1, 2020 | |||||
WHKR FM | Rockledge, FL | 102.7 | February 1, 2020 | ||||||
WLZR FM | Melbourne, FL | 95.9 | February 1, 2020 | ||||||
Memphis, TN | WRBO FM | Como, MS | 103.5 | June 1, 2020 | |||||
WGKX FM | Memphis, TN | 105.9 | August 1, 2020 | ||||||
WXMX FM | Millington, TN | 98.1 | August 1, 2020 | ||||||
WKIM FM | Munford, TN | 98.9 | August 1, 2020 | ||||||
Minneapolis, MN | KQRS FM | Golden Valley, MN | 92.5 | April 1, 2021 | |||||
KXXR FM | Minneapolis, MN | 93.7 | April 1, 2021 | ||||||
WGVX FM | Lakeville, MN | 105.1 | April 1, 2021 | ||||||
WRXP FM | Cambridge, MN | 105.3 | April 1, 2021 | ||||||
WWWM FM | Eden Prarie, MN | 105.7 | April 1, 2021 | ||||||
Mobile, AL | WBLX FM | Mobile, AL | 92.9 | April 1, 2020 | |||||
WDLT FM | Saraland, AL | 104.1 | April 1, 2020 | ||||||
WGOK AM | Mobile, AL | 900 | April 1, 2020 | ||||||
WXQW AM | Fairhope, AL | 660 | April 1, 2020 | ||||||
WABD FM | Mobile, AL | 97.5 | April 1, 2020 | ||||||
Modesto, CA | KATM FM | Modesto, CA | 103.3 | December 1, 2021 | |||||
KDJK FM | Mariposa, CA | 103.9 | December 1, 2021 | ||||||
KESP AM | Modesto, CA | 970 | December 1, 2021 | ||||||
KHKK FM | Modesto, CA | 104.1 | December 1, 2021 | ||||||
KHOP FM | Oakdale, CA | 95.1 | December 1, 2021 | ||||||
KWNN FM | Turlock, CA | 98.3 | December 1, 2021 | ||||||
Montgomery, AL | WHHY FM | Montgomery, AL | 101.9 | April 1, 2020 | |||||
WLWI AM | Montgomery, AL | 1440 | April 1, 2020 | ||||||
WLWI FM | Montgomery, AL | 92.3 | April 1, 2020 | ||||||
WMSP AM | Montgomery, AL | 740 | April 1, 2020 | ||||||
WMXS FM | Montgomery, AL | 103.3 | April 1, 2020 | ||||||
WXFX FM | Prattville, AL | 95.1 | April 1, 2020 | ||||||
Muncie, IN | WLTI AM | New Castle, IN | 1550 | August 1, 2020 | |||||
WMDH FM | New Castle, IN | 102.5 | August 1, 2020 | ||||||
Muskegon, MI | WLCS FM | North Muskegon, MI | 98.3 | October 1, 2020 | |||||
WKLQ AM | Whitehall, MI | 1490 | October 1, 2020 | ||||||
WVIB FM | Holton, MI | 100.1 | October 1, 2020 | ||||||
WLAW FM | Newaygo, MI | 92.5 | October 1, 2020 | ||||||
WWSN FM | Whitehall, MI | 97.5 | October 1, 2020 | ||||||
Myrtle Beach, SC | WDAI FM | Pawleys Island, SC | 98.5 | December 1, 2011 | |||||
WLFF FM | Georgetown, SC | 106.5 | December 1, 2011 | ||||||
WSEA FM | Atlantic Beach, SC | 100.3 | December 1, 2011 | ||||||
WSYN FM | Surfside Beach, SC | 103.1 | December 1, 2011 | ||||||
WHSC AM | Conway, SC | 1050 | December 1, 2011 | ||||||
Nashville, TN | WQQK FM | Goodlettsville, TN | 92.1 | August 1, 2020 | |||||
WSM FM | Nashville, TN | 95.5 | August 1, 2020 | ||||||
WWTN FM | Hendersonville, TN | 99.7 | August 1, 2020 | ||||||
WGFX FM | Gallatin, TN | 104.5 | August 1, 2020 | ||||||
WKDF FM | Nashville, TN | 103.3 | August 1, 2020 | ||||||
New London, CT | WQGN FM | Groton, CT | 105.5 | April 1, 2022 | |||||
WXLM AM | Groton, CT | 980 | April 1, 2022 | ||||||
WMOS FM | Stonington, CT | 102.3 | April 1, 2022 | ||||||
New Orleans, LA | KMEZ FM | Port Sulphur, LA | 106.7 | June 1, 2020 | |||||
KKND FM | Belle Chasse, LA | 102.9 | June 1, 2020 | ||||||
WRKN FM | Laplace, LA | 92.3 | June 1, 2020 | ||||||
WZRH FM | Picayune, MS | 106.1 | June 1, 2020 | ||||||
New York, NY | WABC AM | New York, NY | 770 | June 1, 2022 | |||||
WPLJ FM | New York, NY | 95.5 | June 1, 2022 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
WNSH FM | Newark, NJ | 94.7 | June 1, 2022 | ||||||
WNBM FM | Bronxville, NY | 103.9 | June 1, 2022 | ||||||
Oklahoma City, OK | KATT FM | Oklahoma City, OK | 100.5 | June 1, 2021 | |||||
KKWD FM | Bethany, OK | 104.9 | June 1, 2021 | ||||||
WWLS FM | The Village, OK | 98.1 | June 1, 2021 | ||||||
KYIS FM | Oklahoma City, OK | 98.9 | June 1, 2021 | ||||||
KWPN AM | Moore, OK | 640 | June 1, 2021 | ||||||
WKY AM | Oklahoma City, OK | 930 | June 1, 2021 | ||||||
KQOB FM | Enid, OK | 96.9 | June 1, 2021 | ||||||
Oxnard-Ventura, CA | KBBY FM | Ventura, CA | 95.1 | December 1, 2021 | |||||
KHAY FM | Ventura, CA | 100.7 | December 1, 2021 | ||||||
KVEN AM | Ventura, CA | 1450 | December 1, 2021 | ||||||
KVYB FM | Santa Barbara, CA | 103.3 | December 1, 2021 | ||||||
Pensacola, FL | WCOA AM | Pensacola, FL | 1370 | February 1, 2020 | |||||
WRRX FM | Gulf Breeze, FL | 106.1 | February 1, 2020 | ||||||
WXBM FM | Milton, FL | 102.7 | February 1, 2020 | ||||||
WMEZ FM | Pensacola, FL | 94.1 | February 1, 2020 | ||||||
WJTQ FM | Pensacola, FL | 100.7 | February 1, 2020 | ||||||
Peoria, IL | WGLO FM | Pekin, IL | 95.5 | December 1, 2020 | |||||
WVEL AM | Pekin, IL | 1140 | December 1, 2020 | ||||||
WIXO FM | Peoria, IL | 105.7 | December 1, 2020 | ||||||
WFYR FM | Elmwood, IL | 97.3 | December 1, 2020 | ||||||
WZPW FM | Peoria, IL | 92.3 | December 1, 2020 | ||||||
Providence, RI | WPRO AM | Providence, RI | 630 | April 1, 2022 | |||||
WPRO FM | Providence, RI | 92.3 | April 1, 2022 | ||||||
WPRV AM | Providence, RI | 790 | April 1, 2022 | ||||||
WEAN FM | Wakefield-Peacedale, RI | 99.7 | April 1, 2022 | ||||||
WWLI FM | Providence, RI | 105.1 | April 1, 2022 | ||||||
WWKX FM | Woonsocket, RI | 106.3 | April 1, 2022 | ||||||
Reno, NV | KBUL FM | Carson City, NV | 98.1 | October 1, 2021 | |||||
KKOH AM | Reno, NV | 780 | October 1, 2021 | ||||||
KNEV FM | Reno, NV | 95.5 | October 1, 2021 | ||||||
KWYL FM | South Lake Tahoe, CA | 102.9 | December 1, 2021 | ||||||
Saginaw, MI | WHNN FM | Bay City, MI | 96.1 | October 1, 2020 | |||||
WILZ FM | Saginaw, MI | 104.5 | October 1, 2020 | ||||||
WIOG FM | Bay City, MI | 102.5 | October 1, 2020 | ||||||
WKQZ FM | Midland, MI | 93.3 | October 1, 2020 | ||||||
Salt Lake City, UT | KKAT AM | Salt Lake City, UT | 860 | October 1, 2021 | |||||
KBEE FM | Salt Lake City, UT | 98.7 | October 1, 2021 | ||||||
KBER FM | Ogden, UT | 101.1 | October 1, 2021 | ||||||
KENZ FM | Ogden, UT | 101.9 | October 1, 2021 | ||||||
KHTB FM | Provo, UT | 94.9 | October 1, 2021 | ||||||
KUBL FM | Salt Lake City, UT | 93.3 | October 1, 2021 | ||||||
San Francisco, CA | KGO AM | San Francisco, CA | 810 | December 1, 2021 | |||||
KSFO AM | San Francisco, CA | 560 | December 1, 2021 | ||||||
KFFG FM | Los Gatos, CA | 97.7 | December 1, 2021 | ||||||
KFOG FM | San Francisco, CA | 104.5 | December 1, 2021 | ||||||
KNBR AM | San Francisco, CA | 680 | December 1, 2013 | ||||||
KSAN FM | San Mateo, CA | 107.7 | December 1, 2021 | ||||||
KTCT AM | San Mateo, CA | 1050 | December 1, 2021 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Santa Barbara, CA | KRRF FM | Oak View, CA | 106.3 | December 1, 2021 | |||||
Savannah, GA | WBMQ AM | Savannah, GA | 630 | April 1, 2020 | |||||
WEAS FM | Springfield, GA | 93.1 | April 1, 2020 | ||||||
WIXV FM | Savannah, GA | 95.5 | April 1, 2020 | ||||||
WJCL FM | Savannah, GA | 96.5 | April 1, 2020 | ||||||
WJLG AM | Savannah, GA | 900 | April 1, 2020 | ||||||
WZAT FM | Tybee Island, GA | 102.1 | April 1, 2020 | ||||||
WTYB FM | Bluffton, SC | 103.9 | December 1, 2019 | ||||||
Shreveport, LA | KMJJ FM | Shreveport, LA | 99.7 | June 1, 2020 | |||||
KQHN FM | Waskom, TX | 97.3 | August 1, 2021 | ||||||
KRMD AM | Shreveport, LA | 1340 | June 1, 2020 | ||||||
KRMD FM | Oil City, LA | 101.1 | June 1, 2020 | ||||||
KVMA FM | Shreveport, LA | 102.9 | June 1, 2020 | ||||||
Springfield, MA | WHLL AM | Springfield, MA | 1450 | April 1, 2022 | |||||
WMAS FM | Enfield, CT | 94.7 | April 1, 2022 | ||||||
Stockton, CA | KJOY FM | Stockton, CA | 99.3 | December 1, 2021 | |||||
KWIN FM | Lodi, CA | 97.7 | December 1, 2021 | ||||||
Syracuse, NY | WAQX FM | Manlius, NY | 95.7 | June 1, 2022 | |||||
WXTL FM | Syracuse, NY | 105.9 | June 1, 2022 | ||||||
WSKO AM | Syracuse, NY | 1260 | June 1, 2022 | ||||||
WNTQ FM | Syracuse, NY | 93.1 | June 1, 2022 | ||||||
Tallahassee, FL | WBZE FM | Tallahassee, FL | 98.9 | February 1, 2020 | |||||
WGLF FM | Tallahassee, FL | 104.1 | February 1, 2020 | ||||||
WHBT AM | Tallahassee, FL | 1410 | February 1, 2020 | ||||||
WHBX FM | Tallahassee, FL | 96.1 | February 1, 2020 | ||||||
WWLD FM | Cairo, GA | 102.3 | April 1, 2020 | ||||||
Toledo, OH | WKKO FM | Toledo, OH | 99.9 | October 1, 2020 | |||||
WRQN FM | Bowling Green, OH | 93.5 | October 1, 2020 | ||||||
WWWM FM | Sylvania, OH | 105.5 | October 1, 2020 | ||||||
WXKR FM | Port Clinton, OH | 94.5 | October 1, 2020 | ||||||
WMIM FM | Luna Pier, MI | 98.3 | October 1, 2020 | ||||||
Topeka, KS | KDVB FM | Effingham, KS | 96.9 | June 1, 2021 | |||||
KDVV FM | Topeka, KS | 100.3 | June 1, 2021 | ||||||
KMAJ AM | Topeka, KS | 1440 | June 1, 2021 | ||||||
KMAJ FM | Carbondale, KS | 107.7 | June 1, 2021 | ||||||
KTOP FM | St. Marys, KS | 102.9 | June 1, 2021 | ||||||
KRWP FM | Stockton, MO | 107.7 | February 1, 2021 | ||||||
KTOP AM | Topeka, KS | 1490 | June 1, 2021 | ||||||
KWIC FM | Topeka, KS | 99.3 | June 1, 2021 | ||||||
Tucson, AZ | KCUB AM | Tucson, AZ | 1290 | October 1, 2021 | |||||
KHYT FM | Tucson, AZ | 107.5 | October 1, 2021 | ||||||
KIIM FM | Tucson, AZ | 99.5 | October 1, 2021 | ||||||
KSZR FM | Oro Valley, AZ | 97.5 | October 1, 2021 | ||||||
KTUC AM | Tucson, AZ | 1400 | October 1, 2021 | ||||||
Washington, DC | WMAL AM | Washington, DC | 630 | October 1, 2019 | |||||
WRQX FM | Washington, DC | 107.3 | October 1, 2019 | ||||||
WMAL FM | Woodbridge, VA | 105.9 | October 1, 2019 | ||||||
Westchester, NY | WFAS AM | White Plains, NY | 1230 | June 1, 2022 | |||||
Wichita Falls, TX | KLUR FM | Wichita Falls, TX | 99.9 | August 1, 2021 | |||||
KOLI FM | Electra, TX | 94.9 | August 1, 2021 | ||||||
KQXC FM | Wichita Falls, TX | 103.9 | August 1, 2021 | ||||||
KYYI FM | Burkburnett, TX | 104.7 | August 1, 2021 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Wilkes-Barre, PA | WARM AM | Scranton, PA | 590 | August 1, 2022 | |||||
WBHT FM | Mountain Top, PA | 97.1 | August 1, 2022 | ||||||
WBSX FM | Hazleton, PA | 97.9 | August 1, 2022 | ||||||
WSJR FM | Dallas, PA | 93.7 | August 1, 2022 | ||||||
WBHD FM | Olyphant, PA | 95.7 | August 1, 2022 | ||||||
WMGS FM | Wilkes-Barre, PA | 92.9 | August 1, 2022 | ||||||
Wilmington, NC | WAAV AM | Leland, NC | 980 | December 1, 2019 | |||||
WGNI FM | Wilmington, NC | 102.7 | December 1, 2019 | ||||||
WKXS FM | Leland, NC | 94.5 | December 1, 2019 | ||||||
WMNX FM | Wilmington, NC | 97.3 | December 1, 2019 | ||||||
WWQQ FM | Wilmington, NC | 101.3 | December 1, 2019 | ||||||
Worcester, MA | WORC FM | Webster, MA | 98.9 | April 1, 2022 | |||||
WWFX FM | Southbridge, MA | 100.1 | April 1, 2022 | ||||||
WXLO FM | Fitchburg, MA | 104.5 | April 1, 2022 | ||||||
York, PA | WSOX FM | Red Lion, PA | 96.1 | August 1, 2022 | |||||
WSBA AM | York, PA | 910 | August 1, 2022 | ||||||
WGLD AM | Manchester Township, PA | 1440 | August 1, 2022 | ||||||
WARM FM | York, PA | 103.3 | August 1, 2022 | ||||||
Youngstown, OH | WBBW AM | Youngstown, OH | 1240 | October 1, 2020 | |||||
WHOT FM | Youngstown, OH | 101.1 | October 1, 2020 | ||||||
WLLF FM | Mercer, PA | 96.7 | August 1, 2022 | ||||||
WPIC AM | Sharon, PA | 790 | August 1, 2022 | ||||||
WQXK FM | Salem, OH | 105.1 | October 1, 2020 | ||||||
WSOM AM | Salem, OH | 600 | October 1, 2020 | ||||||
WWIZ FM | West Middlesex, PA | 103.9 | August 1, 2022 | ||||||
WYFM FM | Sharon, PA | 102.9 | August 1, 2022 |
Name | Age | Position(s) | ||
Mary G. Berner | 57 | President and Chief Executive Officer | ||
John Abbot | 54 | Executive Vice President, Treasurer and Chief Financial Officer | ||
Richard S. Denning | 50 | Senior Vice President, Secretary and General Counsel | ||
Suzanne M. Grimes | 58 | Executive Vice President of Corporate Marketing and President of Westwood One |
Item 1A. | Risk Factors |
• | economic conditions in the areas where our stations are located and in the nation as a whole; |
• | national and local demand for radio advertising; |
• | the popularity of the programming offered by our stations; |
• | changes in the population demographics in the areas where our stations are located; |
• | local and national advertising price fluctuations, which can be affected by the availability of programming, the popularity of programming, and the relative supply of and demand for commercial advertising; |
• | the capability and effectiveness of our sales organization; |
• | our competitors’ activities, including increased competition from other advertising-based mediums; |
• | decisions by advertisers to withdraw or delay planned advertising expenditures for any reason; and |
• | other factors beyond our control. |
• | another radio station in the market were to convert its programming format to a format similar to our station or launch aggressive promotional campaigns; |
• | a new station were to adopt a competitive format; |
• | we experience increased competition from non-radio sources; |
• | there is a shift in population, demographics, audience tastes or other factors beyond our control; |
• | an existing competitor were to strengthen its operations; or |
• | any one or all of our stations were unable to maintain or increase advertising revenue or market share for any other reasons. |
• | personal digital audio and video devices (e.g. smart phones, tablets); |
• | satellite delivered digital radio services that offer numerous programming channels such as Sirius Satellite Radio; |
• | audio programming by internet content providers, internet radio stations such as Pandora Internet Radio, cable systems, direct broadcast satellite systems and other digital audio broadcast formats; |
• | low power FM radio stations, which are non-commercial FM radio broadcast outlets that serve small, localized areas; |
• | applications that permit users to listen to programming on a time-delayed basis and to fast-forward through programming and/or advertisements (e.g. podcasts); and |
• | search engine and e-commerce websites where a significant portion of their revenues are derived from advertising dollars such as Google and Yelp. |
• | incur additional indebtedness and guarantee indebtedness; |
• | pay dividends or make other distributions or repurchase or redeem capital stock; |
• | prepay, redeem or repurchase certain debt; |
• | issue certain preferred stock or similar equity securities; |
• | make loans and investments; |
• | sell assets; |
• | incur liens; |
• | enter into transactions with affiliates; |
• | alter the businesses we conduct; |
• | enter into agreements restricting our restricted subsidiaries’ ability to pay dividends; and |
• | consolidate, merge or sell all or substantially all of our assets. |
• | limited in how we conduct our business; |
• | unable to raise additional debt or equity financing; or |
• | unable to compete effectively or to take advantage of new business opportunities. |
• | the total amount of our indebtedness and our ability to service that debt; |
• | conditions and trends in the radio broadcasting industry; |
• | actual or anticipated variations in our operating results, including audience share ratings and financial results; |
• | estimates of our future performance and/or operations; |
• | changes in financial estimates by securities analysts; |
• | technological innovations; |
• | competitive developments; |
• | adoption of new accounting standards affecting companies in general or affecting companies in the radio broadcasting industry in particular; and |
• | general market conditions and other factors. |
• | the possibility that we may be unable to achieve certain expected revenue results, including as a result of factors or events that are unexpected or otherwise outside of our control; |
• | our ability to generate sufficient cash flows to service our debt and other obligations and our ability to access capital, including debt or equity; |
• | general economic or business conditions affecting the radio broadcasting industry being less favorable than expected, including the impact of decreased spending by advertisers; |
• | changes in market conditions that could impair our goodwill or intangible assets and the effects of any material impairment of our goodwill or intangible assets; |
• | our ability to execute our business plan and strategy; |
• | our ability to attract, motivate and/or retain key executives and associates; |
• | increased competition in the radio broadcasting industry and our ability to respond to changes in technology in order to remain competitive; |
• | disruptions or security breaches of our information technology infrastructure; |
• | the impact of current or pending legislation and regulations, antitrust considerations, and pending or future litigation or claims; |
• | changes in regulatory or legislative policies or actions or in regulatory bodies; |
• | changes in uncertain tax positions and tax rates; |
• | changes in the financial markets; |
• | changes in capital expenditure requirements; |
• | changes in interest rates; |
• | volatility in the price of our Class A common stock and the inability to comply with continued listing standards of NASDAQ; |
• | our ability to execute and implement our acquisition and divestiture strategies; |
• | the possibility that we may be unable to achieve any expected cost-saving or operational synergies in connection with any acquisitions or business improvements, or achieve them within the expected time periods; and |
• | other risks and uncertainties referenced from time to time in this Form 10-K and other filings of ours with the SEC or not currently known to us or that we do not currently deem to be material. |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Year | High | Low | |||||
2015 | |||||||
First Quarter | $ | 4.51 | $ | 2.35 | |||
Second Quarter | $ | 2.65 | $ | 1.90 | |||
Third Quarter | $ | 2.08 | $ | 0.68 | |||
Fourth Quarter | $ | 0.82 | $ | 0.18 | |||
2016 | |||||||
First Quarter | $ | 0.60 | $ | 0.18 | |||
Second Quarter | $ | 0.50 | $ | 0.26 | |||
Third Quarter | $ | 0.45 | $ | 0.29 | |||
Fourth Quarter | $ | 2.40 | $ | 0.30 |
12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | ||||||||||||||||||
Cumulus | $ | 100.00 | $ | 61.95 | $ | 179.53 | $ | 98.14 | $ | 7.66 | $ | 23.67 | |||||||||||
S&P 500 | 100.00 | 113.40 | 146.97 | 163.71 | 162.52 | 178.02 | |||||||||||||||||
NASDAQ | 100.00 | 113.82 | 157.44 | 178.53 | 188.75 | 209.51 | |||||||||||||||||
Radio Index (1) | 100.00 | 103.62 | 158.17 | 131.44 | 103.63 | 146.87 |
(1) | The Radio Index consists of the following companies: Beasley Broadcast Group, Inc., iHeartMedia, Inc. (formerly Clear Channel Holdings, Inc.), Emmis Communications Corp., Entercom Communications Corp., Radio One, Inc., and Saga Communications, Inc. |
Item 6. | Selected Financial Data |
Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
STATEMENT OF OPERATIONS DATA: | |||||||||||||||||||
Net revenue | $ | 1,141,400 | $ | 1,168,679 | $ | 1,263,423 | $ | 1,026,138 | $ | 1,002,272 | |||||||||
Content costs | 427,780 | 396,426 | 433,596 | 264,871 | 244,082 | ||||||||||||||
Selling, general & administrative expenses | 472,900 | 477,327 | 470,441 | 403,381 | 378,802 | ||||||||||||||
Depreciation and amortization | 87,267 | 102,105 | 115,275 | 112,511 | 135,575 | ||||||||||||||
LMA fees | 12,824 | 10,129 | 7,195 | 3,716 | 3,465 | ||||||||||||||
Corporate expenses (including non-cash stock-based compensation expense) | 40,148 | 73,403 | 76,428 | 59,830 | 57,438 | ||||||||||||||
(Gain) loss on sale of assets or stations | (95,695 | ) | 2,856 | (1,342 | ) | (3,685 | ) | — | |||||||||||
Gain on derivative instrument | — | — | — | (1,852 | ) | (12 | ) | ||||||||||||
Impairment of intangible assets and goodwill (1) | 604,965 | 565,584 | — | — | 125,985 | ||||||||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | 19,364 | — | — | — | ||||||||||||||
Operating (loss) income | (408,789 | ) | (478,515 | ) | 161,830 | 187,366 | 56,937 | ||||||||||||
Interest expense | (138,634 | ) | (141,679 | ) | (145,533 | ) | (178,274 | ) | (199,574 | ) | |||||||||
Interest income | 493 | 433 | 1,388 | 1,293 | 946 | ||||||||||||||
Gain (loss) on early extinguishment of debt | 8,017 | 13,222 | — | (34,934 | ) | (2,432 | ) | ||||||||||||
Other income (expense), net | 2,039 | 14,205 | 4,338 | (302 | ) | (2,479 | ) | ||||||||||||
(Loss) income from continuing operations before income taxes | (536,874 | ) | (592,334 | ) | 22,023 | (24,851 | ) | (146,602 | ) | ||||||||||
Income tax benefit (expense) | 26,154 | 45,840 | (10,254 | ) | 68,464 | 34,670 | |||||||||||||
(Loss) income from continuing operations | (510,720 | ) | (546,494 | ) | 11,769 | 43,613 | (111,932 | ) | |||||||||||
Income from discontinued operations, net of taxes | — | — | — | 132,470 | 79,203 | ||||||||||||||
Net (loss) income | (510,720 | ) | (546,494 | ) | 11,769 | 176,083 | (32,729 | ) | |||||||||||
Less: dividends declared and accretion of redeemable preferred stock | — | — | — | 10,676 | 21,432 | ||||||||||||||
(Loss) income attributable to common shareholders | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,769 | $ | 165,407 | $ | (54,161 | ) | ||||||
Basic (loss) income per common share | $ | (17.45 | ) | $ | (18.72 | ) | $ | 0.40 | $ | 6.08 | $ | (2.64 | ) | ||||||
Diluted (loss) income per common share | $ | (17.45 | ) | $ | (18.72 | ) | $ | 0.40 | $ | 6.00 | $ | (2.64 | ) |
Year Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
OTHER DATA: | ||||||||||||||||||||
Ratio of earnings to fixed charges | * | (2) | * | (2) | 1.15 | * | (2) | * | (2) | |||||||||||
Cash flows related to: | ||||||||||||||||||||
Operating activities | $ | 35,745 | $ | 82,432 | $ | 136,796 | $ | 121,141 | $ | 179,490 | ||||||||||
Investing activities | 83,854 | (7,961 | ) | (15,572 | ) | (92,625 | ) | 98,143 | ||||||||||||
Financing activities | (19,997 | ) | (50,085 | ) | (146,745 | ) | 83,774 | (220,175 | ) | |||||||||||
Capital expenditures | (23,037 | ) | (19,236 | ) | (19,006 | ) | (11,081 | ) | (6,607 | ) | ||||||||||
BALANCE SHEET DATA: | ||||||||||||||||||||
Total assets | $ | 2,412,691 | $ | 3,002,388 | (3) | $ | 3,717,572 | (3) | $ | 3,838,128 | (3) | $ | 3,704,723 | (3) | ||||||
Long-term debt (including current portion) | 2,384,157 | 2,402,901 | (3) | 2,457,258 | (3) | 2,594,586 | (3) | 2,662,215 | (3) | |||||||||||
Total stockholders’ equity | $ | (491,738 | ) | $ | 16,032 | $ | 541,580 | $ | 512,740 | $ | 246,633 |
(1) | Impairment charge recorded in connection with our interim and annual impairment testing under ASC 350. See Note 4, “Intangible Assets and Goodwill,” in the consolidated financial statements included elsewhere in this Form 10-K for further discussion. |
(2) | Earnings for the years ended December 31, 2016, 2015, 2013 and 2012 were inadequate to cover fixed charges. The coverage deficiency for these years was $536,874, $592,334, $35,527 and $168,034, respectively. For purposes of calculating the ratio of earnings to fixed charges, earnings consist of earnings before provision for income taxes, and non-controlling interest, plus fixed charges. Fixed charges consist of interest expense, amortized discounts, and preference security dividend requirements. |
(3) | Long-term debt reflects the adoption of ASU 2015-03 during the year ended December 31, 2016. |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
l | General Overview | |||
l | Our Business and Operating Overview | |||
l | Liquidity Considerations | |||
l | Advertising Revenue and Non-GAAP Financial Matters | |||
l | Results of Operations | |||
l | Seasonality and Cyclicality | |||
l | Liquidity and Capital Resources | |||
l | Critical Accounting Policies and Estimates | |||
l | Summary Disclosures about Contractual Obligations and Commercial Commitments | |||
l | Off-Balance Sheet Arrangements |
Year Ended December 31, | 2016 vs 2015 | 2015 vs 2014 | |||||||||||||||||||||||
2016 | 2015 | 2014 | $ Change | % Change | $ Change | % Change | |||||||||||||||||||
STATEMENT OF OPERATIONS DATA: | |||||||||||||||||||||||||
Net revenue | $ | 1,141,400 | $ | 1,168,679 | $ | 1,263,423 | $ | (27,279 | ) | -2.3 | % | $ | (94,744 | ) | -7.5 | % | |||||||||
Content costs | 427,780 | 396,426 | 433,596 | 31,354 | 7.9 | % | (37,170 | ) | -8.6 | % | |||||||||||||||
Selling, general & administrative expenses | 472,900 | 477,327 | 470,441 | (4,427 | ) | -0.9 | % | 6,886 | 1.5 | % | |||||||||||||||
Depreciation and amortization | 87,267 | 102,105 | 115,275 | (14,838 | ) | -14.5 | % | (13,170 | ) | -11.4 | % | ||||||||||||||
LMA fees | 12,824 | 10,129 | 7,195 | 2,695 | 26.6 | % | 2,934 | 40.8 | % | ||||||||||||||||
Corporate expenses (including stock-based compensation expense) | 40,148 | 73,403 | 76,428 | (33,255 | ) | -45.3 | % | (3,025 | ) | -4.0 | % | ||||||||||||||
(Gain) loss on sale of assets or stations | (95,695 | ) | 2,856 | (1,342 | ) | (98,551 | ) | ** | 4,198 | ** | |||||||||||||||
Impairment of intangible assets and goodwill | 604,965 | 565,584 | — | 39,381 | 7.0 | % | 565,584 | ** | |||||||||||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | 19,364 | — | (19,364 | ) | ** | 19,364 | ** | |||||||||||||||||
Operating (loss) income | (408,789 | ) | (478,515 | ) | 161,830 | 69,726 | 14.6 | % | (640,345 | ) | ** | ||||||||||||||
Interest expense | (138,634 | ) | (141,679 | ) | (145,533 | ) | 3,045 | 2.1 | % | 3,854 | 2.6 | % | |||||||||||||
Interest income | 493 | 433 | 1,388 | 60 | 13.9 | % | (955 | ) | -68.8 | % | |||||||||||||||
Gain (loss) on early extinguishment of debt | 8,017 | 13,222 | — | (5,205 | ) | -39.4 | % | 13,222 | ** | ||||||||||||||||
Other income, net | 2,039 | 14,205 | 4,338 | (12,166 | ) | -85.6 | % | 9,867 | ** | ||||||||||||||||
(Loss) income from continuing operations before income taxes | (536,874 | ) | (592,334 | ) | 22,023 | 55,460 | 9.4 | % | (614,357 | ) | ** | ||||||||||||||
Income tax benefit (expense) | 26,154 | 45,840 | (10,254 | ) | (19,686 | ) | -42.9 | % | 56,094 | ** | |||||||||||||||
Net (loss) income | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,769 | $ | 35,774 | 6.5 | % | $ | (558,263 | ) | ** | |||||||||
OTHER DATA: | |||||||||||||||||||||||||
Adjusted EBITDA | $ | 205,867 | $ | 259,145 | $ | 329,526 | $ | (53,278 | ) | -20.6 | % | $ | (70,381 | ) | -21.4 | % |
** | Calculation is not meaningful. |
Year Ended December 31, | 2016 vs 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
7.75% Senior Notes | $ | 47,275 | $ | 47,275 | $ | — | — | % | ||||||
Bank borrowings – term loans and revolving credit facilities | 79,451 | 82,031 | (2,580 | ) | (3.1 | )% | ||||||||
Other, including debt issue cost amortization | 11,908 | 12,373 | (465 | ) | (3.8 | )% | ||||||||
Interest expense | $ | 138,634 | $ | 141,679 | $ | (3,045 | ) | (2.1 | )% |
Year Ended December 31, | ||||||||||
2016 | 2015 | % Change | ||||||||
GAAP net loss | $ | (510,720 | ) | $ | (546,494 | ) | 6.5 | % | ||
Income tax benefit | (26,154 | ) | (45,840 | ) | (42.9 | )% | ||||
Non-operating expenses, including net interest expense | 136,102 | 127,041 | 7.1 | % | ||||||
LMA fees | 12,824 | 10,129 | 26.6 | % | ||||||
Depreciation and amortization | 87,267 | 102,105 | (14.5 | )% | ||||||
Stock-based compensation expense | 2,948 | 21,033 | (86.0 | )% | ||||||
(Gain) loss on sale of assets or stations | (95,695 | ) | 2,856 | ** | ||||||
Impairment of intangible assets and goodwill | 604,965 | 565,584 | 7.0 | % | ||||||
Impairment charges - equity interest in Pulser Media Inc. | — | 19,364 | ** | |||||||
Acquisition-related and restructuring costs | 1,817 | 16,640 | (89.1 | )% | ||||||
Franchise and state taxes | 530 | (51 | ) | ** | ||||||
Gain on early extinguishment of debt | (8,017 | ) | (13,222 | ) | (39.4 | )% | ||||
Adjusted EBITDA | $ | 205,867 | $ | 259,145 | (20.6 | )% | ||||
** Calculation is not meaningful |
Year Ended December 31, | 2015 vs 2014 | |||||||||||||
2015 | 2014 | $ Change | % Change | |||||||||||
7.75% Senior Notes | $ | 47,275 | $ | 47,275 | $ | — | — | % | ||||||
Bank borrowings — term loans and revolving credit facilities | 82,031 | 86,140 | (4,109 | ) | (4.8 | )% | ||||||||
Other, including debt issue cost amortization | 12,373 | 12,111 | 262 | 2.2 | % | |||||||||
Change in fair value of interest rate cap | — | 7 | (7 | ) | (100.0 | )% | ||||||||
Interest expense | $ | 141,679 | $ | 145,533 | $ | (3,854 | ) | (2.6 | )% | |||||
** Calculation is not meaningful |
Year Ended December 31, | ||||||||||
2015 | 2014 | % Change | ||||||||
GAAP net (loss) income | $ | (546,494 | ) | $ | 11,769 | ** | ||||
Income tax (benefit) expense | (45,840 | ) | 10,254 | ** | ||||||
Non-operating expenses, including net interest expense | 127,041 | 139,807 | (9.1 | )% | ||||||
LMA fees | 10,129 | 7,195 | 40.8 | % | ||||||
Depreciation and amortization | 102,105 | 115,275 | (11.4 | )% | ||||||
Stock-based compensation expense | 21,033 | 17,638 | 19.2 | % | ||||||
Loss (gain) on sale of assets or stations | 2,856 | (1,342 | ) | ** | ||||||
Impairment of intangible assets and goodwill | 565,584 | — | ** | |||||||
Impairment charges -- equity interest in Pulser Media Inc | 19,364 | — | ** | |||||||
Acquisition-related and restructuring costs | 16,640 | 28,326 | (41.3 | )% | ||||||
Franchise and state taxes | (51 | ) | 604 | ** | ||||||
Gain on early extinguishment of debt | (13,222 | ) | — | ** | ||||||
Adjusted EBITDA | $ | 259,145 | $ | 329,526 | (21.4 | )% | ||||
** Calculation is not meaningful |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 802,396 | $ | 336,610 | $ | 2,394 | $ | 1,141,400 | ||||||||
% of total revenue | 70.3 | % | 29.5 | % | 0.2 | % | 100.0 | % | ||||||||
$ change from year ended December 31, 2015 | $ | 6,013 | $ | (32,358 | ) | $ | (934 | ) | $ | (27,279 | ) | |||||
% change from year ended December 31, 2015 | 0.8 | % | (8.8 | )% | (28.1 | )% | (2.3 | )% |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 796,383 | $ | 368,968 | $ | 3,328 | $ | 1,168,679 | ||||||||
% of total revenue | 68.1 | % | 31.6 | % | 0.3 | % | 100.0 | % |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Adjusted EBITDA | $ | 218,192 | $ | 22,984 | $ | (35,309 | ) | $ | 205,867 | |||||||
$ change from year ended December 31, 2015 | $ | (23,481 | ) | $ | (29,974 | ) | $ | 177 | $ | (53,278 | ) | |||||
% change from year ended December 31, 2015 | (9.7 | )% | (56.6 | )% | 0.5 | % | (20.6 | )% |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Adjusted EBITDA | $ | 241,673 | $ | 52,958 | $ | (35,486 | ) | $ | 259,145 |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 796,383 | $368,968 | $ | 3,328 | $ | 1,168,679 | |||||||||
% of total revenue | 68.1 | % | 31.6 | % | 0.3 | % | 100.0 | % | ||||||||
$ Change from year ended December 31, 2014 | $ | (42,184 | ) | $ | (52,032 | ) | $ | (528 | ) | $ | (94,744 | ) | ||||
% Change from year ended December 31, 2014 | (5.0 | )% | (12.4 | )% | (13.7 | )% | (7.5 | )% |
Year Ended December 31, 2014 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 838,567 | $ | 421,000 | $ | 3,856 | $ | 1,263,423 | ||||||||
% of total revenue | 66.4 | % | 33.3 | % | 0.3 | % | 100.0 | % |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Adjusted EBITDA | $ | 241,673 | $ | 52,958 | $ | (35,486 | ) | $ | 259,145 | |||||||
$ change from year ended December 31, 2014 | $ | (31,810 | ) | $ | (33,273 | ) | $ | (5,298 | ) | $ | (70,381 | ) | ||||
% change from year ended December 31, 2014 | (11.6 | )% | (38.6 | )% | (17.6 | )% | (21.4 | )% |
Year Ended December 31, 2014 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Adjusted EBITDA | $ | 273,483 | $ | 86,231 | $ | (30,188 | ) | $ | 329,526 |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
GAAP net loss | $ | (356,198 | ) | $ | (11,071 | ) | $ | (143,451 | ) | $ | (510,720 | ) | ||||
Income tax benefit | — | — | (26,154 | ) | (26,154 | ) | ||||||||||
Non-operating expense, including net interest expense | 13 | 122 | 135,967 | 136,102 | ||||||||||||
LMA fees | 12,824 | — | — | 12,824 | ||||||||||||
Depreciation and amortization | 54,071 | 31,178 | 2,018 | 87,267 | ||||||||||||
Stock-based compensation expense | — | — | 2,948 | 2,948 | ||||||||||||
Gain on sale of assets or stations | (95,667 | ) | — | (28 | ) | (95,695 | ) | |||||||||
Impairment of intangible assets and goodwill | 603,149 | 1,816 | — | 604,965 | ||||||||||||
Acquisition-related and restructuring costs | — | 939 | 878 | 1,817 | ||||||||||||
Franchise and state taxes | — | — | 530 | 530 | ||||||||||||
Gain on early extinguishment of debt | — | — | (8,017 | ) | (8,017 | ) | ||||||||||
Adjusted EBITDA | $ | 218,192 | $ | 22,984 | $ | (35,309 | ) | $ | 205,867 |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
GAAP net loss | $ | (265,263 | ) | $ | (141,179 | ) | $ | (140,052 | ) | $ | (546,494 | ) | ||||
Income tax benefit | — | — | (45,840 | ) | (45,840 | ) | ||||||||||
Non-operating (income) expense, including net interest expense | (6 | ) | 1,247 | 125,800 | 127,041 | |||||||||||
LMA fees | 10,127 | — | 2 | 10,129 | ||||||||||||
Depreciation and amortization | 63,342 | 36,538 | 2,225 | 102,105 | ||||||||||||
Stock-based compensation expense | — | — | 21,035 | 21,035 | ||||||||||||
Loss on sale of assets or stations | 668 | 2,081 | 107 | 2,856 | ||||||||||||
Impairment of intangible assets and goodwill | 432,805 | 132,671 | 104 | 565,580 | ||||||||||||
Impairment charges -- equity interest in Pulser Media Inc. | — | 19,364 | — | 19,364 | ||||||||||||
Acquisition-related and restructuring costs | — | 2,236 | 14,405 | 16,641 | ||||||||||||
Franchise and state taxes | — | — | (50 | ) | (50 | ) | ||||||||||
Gain on early extinguishment of debt | — | — | (13,222 | ) | (13,222 | ) | ||||||||||
Adjusted EBITDA | $ | 241,673 | $ | 52,958 | $ | (35,486 | ) | $ | 259,145 |
Year Ended December 31, 2014 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
GAAP net income (loss) | $ | 195,925 | $ | 27,247 | $ | (211,403 | ) | $ | 11,769 | |||||||
Income tax expense | — | — | 10,254 | 10,254 | ||||||||||||
Non-operating (income) expense, including net interest expense | (3,309 | ) | 1,265 | 141,851 | 139,807 | |||||||||||
LMA fees | 7,188 | — | 7 | 7,195 | ||||||||||||
Depreciation and amortization | 74,397 | 38,487 | 2,392 | 115,276 | ||||||||||||
Stock-based compensation expense | — | — | 17,638 | 17,638 | ||||||||||||
Gain on sale of assets or stations | (718 | ) | — | (625 | ) | (1,343 | ) | |||||||||
Acquisition-related and restructuring costs | — | 19,232 | 9,094 | 28,326 | ||||||||||||
Franchise and state taxes | — | — | 604 | 604 | ||||||||||||
Adjusted EBITDA | $ | 273,483 | $ | 86,231 | $ | (30,188 | ) | $ | 329,526 |
2016 | 2015 | 2014 | |||||||||
Repayments of bank borrowings | $ | 20,000 | $ | 50,000 | $ | 156,125 | |||||
Interest payments | $ | 126,515 | $ | 129,314 | $ | 135,392 | |||||
Capital expenditures | $ | 23,037 | $ | 19,236 | $ | 19,026 | |||||
Acquisitions and purchase of intangible assets | — | — | 8,500 |
2016 | 2015 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Net cash provided by operating activities | $ | 35,745 | $ | 82,432 | $ | 136,796 |
2016 | 2015 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Net cash provided by (used in) investing activities | $ | 83,854 | $ | (7,961 | ) | $ | (15,572 | ) |
2016 | 2015 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Net cash used in financing activities | $ | (19,997 | ) | $ | (50,085 | ) | $ | (146,745 | ) |
Reporting Unit 1 | Reporting Unit 2 | Reporting Unit 3 | |||||||
Goodwill balance | $ | 568,141 | $ | 135,213 | N/A ** | ||||
Carrying value (including goodwill) | $ | 2,040,207 | $ | 194,282 | N/A ** | ||||
Percentage fair value above carrying value | N/A* | 63.8 | % | N/A ** | |||||
* Reporting Unit 1 failed the Step 1 test | |||||||||
** Contains no goodwill |
• | projected operating revenues and expenses over a five-year period; |
• | the estimation of initial and on-going capital expenditures (based on market size); |
• | depreciation on initial and on-going capital expenditures (we calculated depreciation using accelerated double declining balance guidelines over five years for the value of the tangible assets necessary for a radio station to go on the air); |
• | the estimation of working capital requirements (based on working capital requirements for comparable companies); and |
• | amortization of the intangible asset — the FCC license. |
l | Nature, frequency, and severity of current and cumulative financial reporting losses. A pattern of objectively-measured recent financial reporting losses is heavily weighted as a source of negative evidence. Three year cumulative pre-tax losses generally are considered to be significant negative evidence regarding future profitability. Also, the strength and trend of the Company's earnings, as well as other relevant factors, are considered. In certain circumstances, historical information may not be as relevant due to changes in the business operations; | |||
l | Sources of future taxable income. Future reversals of existing temporary differences are heavily-weighted sources of objectively verifiable positive evidence. Projections of future taxable income exclusive of reversing temporary differences and carryforwards are a source of positive evidence only when the projections are combined with a history of recent profits and can be reasonably estimated. Otherwise, these projections are considered inherently subjective and generally will not be sufficient to overcome negative evidence that includes relevant cumulative losses in recent years, particularly if the projected future taxable income is dependent on an anticipated turnaround to profitability that has not yet been achieved. In such cases, we generally give these projections of future taxable income limited weight for the purposes of our valuation allowance assessment pursuant to GAAP; | |||
l | Taxable income in prior carryback year(s), if carryback is permitted under the tax law, would be considered significant positive evidence, depending on availability, when evaluating current period losses; and | |||
l | Tax planning strategies. If necessary and available, tax planning strategies would be implemented to accelerate taxable amounts to utilize expiring carry forwards. These strategies would be a source of additional positive evidence and, depending on their nature, could be heavily weighted. |
Contractual Cash Obligations | Total | Less Than 1 Year | 1 to 3 Years | 3 to 5 years | After 5 Years | ||||||||||||||
Long-term debt (1) | $ | 2,912,994 | $ | 125,430 | $ | 250,860 | $ | 2,536,704 | $ | — | |||||||||
Operating leases (2) | 111,368 | 22,475 | 36,179 | 22,547 | 30,167 | ||||||||||||||
Other contractual obligations (3) | 227,631 | 121,308 | 51,886 | 1,462 | 52,975 | ||||||||||||||
Total contractual cash obligations | $ | 3,251,993 | $ | 269,213 | $ | 338,925 | $ | 2,560,713 | $ | 83,142 |
(1) | Based on amounts outstanding, interest rates and required repayments as of December 31, 2016. Also assumes that outstanding indebtedness will not be refinanced prior to scheduled maturity. |
(2) | Net of future minimum sublease income. |
(3) | Consists of contractual obligations for goods or services including broadcast rights that are enforceable and legally binding obligations that include all significant terms. The potential purchase option related to Merlin Media, LLC, as discussed in more detail in Note 13 "Commitments and Contingencies", has been excluded from the above contractual obligations. |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |
Item 8. | Financial Statements and Supplementary Data |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
/s/ Mary G. Berner | /s/ John Abbot |
Director and Chief Executive Officer | Executive Vice President, Treasurer and Chief Financial Officer |
Item 9B. | Other Information |
Item 10. | Directors and Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Plan Category | To be Issued Upon Exercise of Outstanding Options Warrants and Rights (a) | Weighted-Average Exercise Price of Outstanding Options Warrants and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in column (a)) | ||||||
Equity Compensation Plans Approved by Stockholders | 3,472,455 | $ | 31.46 | 320,865 | |||||
Equity Compensation Plans Not Approved by Stockholders | — | — | — | ||||||
Total | 3,472,455 | $ | 31.46 | 320,865 |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Item 15. | Exhibits, Financial Statement Schedules |
2.1 | Agreement and Plan of Merger, dated August 30, 2013, by and among Cumulus Media Holdings Inc., Dial Global, Inc., Cardinals Merger Corporation and DG LA Members, LLC (incorporated by reference to Exhibit 2.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on December 13, 2013). | |
3.1** | Third Amended and Restated Certificate of Incorporation of Cumulus Media Inc., as amended effective as of October 12, 2016. | |
3.2 | Amended and Restated Bylaws of Cumulus Media Inc. (incorporated herein by reference to Exhibit 3.3 to Cumulus Media Inc.’s Quarterly Report on Form 10-Q, File No. 000-24525, filed on November 14, 2011). | |
4.1 | Form of Class A Common Stock Certificate (incorporated herein by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on August 2, 2002). | |
4.2 | Form of Class B Common Stock Certificate (incorporated herein by reference to Exhibit 4.2 to Amendment No. 1 to Cumulus Media Inc.’s Registration Statement on Form S-3/A, File No. 333-176294, filed on September 22, 2011). | |
4.3 | Warrant Agreement, dated as of June 29, 2009, among Cumulus Media Inc., the Consenting Lenders signatory thereto and Lewis W. Dickey, Sr., Lewis W. Dickey, Jr., John W. Dickey, Michael W. Dickey, David W. Dickey, Lewis W. Dickey, Sr. Revocable Trust and DBBC, LLC (incorporated herein by reference to Exhibit 10.2 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on June 30, 2009). | |
4.4 | Form of Warrant Certificate (incorporated herein by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on June 30, 2009). | |
4.5 | Warrant Agreement, dated as of September 16, 2011, between Cumulus Media Inc., Computershare Inc. and Computershare Trust Company, N.A., as Warrant Agent (incorporated herein by reference to Exhibit 4.2 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
4.6 | Form of Warrant Statement (included as Exhibit A-1 in Exhibit 4.5) (incorporated herein by reference to Exhibit 4.3 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
4.7 | Form of Global Warrant Certificate (included as Exhibit A-2 in Exhibit 4.5) (incorporated herein by reference to Exhibit 4.4 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
4.8 | Warrant, dated as of September 16, 2011, issued to Crestview Radio Investors, LLC (incorporated herein by reference to Exhibit 4.5 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
4.9 | Registration Rights Agreement, effective as of August 1, 2011, by and among Cumulus Media Inc. and the stockholders (as defined therein) that are parties thereto (incorporated herein by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on August 4, 2011). | |
4.10 | Registration Rights Agreement, effective as of September 16, 2011, by and among Cumulus Media Inc., Crestview Radio Investors, LLC, UBS Securities LLC and other investors signatory thereto (incorporated herein by reference to Exhibit 10.5 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
4.11 | Stockholders’ Agreement, dated as of September 16, 2011, among Cumulus Media Inc., BA Capital Company, L.P. and Banc of America Capital Investors SBIC, L.P., Blackstone FC Communications Partners L.P., Lewis W. Dickey, Jr., John W. Dickey, David W. Dickey, Michael W. Dickey, Lewis W. Dickey, Sr. and DBBC, L.L.C., Crestview Radio Investors, LLC, MIHI LLC, UBS Securities LLC and any other person who becomes a party thereto (incorporated herein by reference to Exhibit 10.6 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
4.12 | Indenture, dated as of May 13, 2011, among Cumulus Media Inc., the Guarantors named therein and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8- K, File No. 000-24525, filed on May 16, 2011). | |
4.13 | Form of 7.75% Senior Notes due 2019 (included as Exhibits A and B in Exhibit 4.15) (incorporated herein by reference to Exhibit 4.2 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on May 16, 2011). | |
4.14 | First Supplemental Indenture, dated as of September 16, 2011, by and among Cumulus Media Holdings Inc., Cumulus Media Inc., the other parties signatory thereto and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
4.15 | Second Supplemental Indenture, dated as of October 16, 2011, by and among Cumulus Media Holdings Inc., each of the subsidiaries of Cumulus Media Holdings Inc. signatory thereto and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.12 to Cumulus Media Inc.’s Quarterly Report on Form 10-Q, File No. 000-24525, filed on November 14, 2011). | |
4.16 | Third Supplemental Indenture, effective October 17, 2011, by and among Cumulus Media Holdings Inc., each of the subsidiaries of Cumulus Media Holdings Inc. signatory thereto and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.5 to Cumulus Media Inc. Registration Statement on Form S-4/A, File No. 333-178647, filed on March 5, 2012). | |
4.17 | Fourth Supplemental Indenture, dated as of December 23, 2013, by and among Cumulus Media Holdings Inc., each of the subsidiaries of Cumulus Media Holdings Inc. signatory thereto and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.17 to Cumulus Media Inc.'s Annual Report on Form 10-K, File No. 000-24525, filed on March 17, 2014). | |
4.18 | First Amendment to Stockholders' Agreement, dated April 27, 2015 (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.'s Current Report on Form 8-K, File No. 000-24525, filed with the SEC on April 28, 2015). | |
10.1 * | Form of Employment Agreement, dated September 29, 2015, by and between the Company and Mary G. Berner (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on September 30, 2015). | |
10.2 * | Form of Amendment to Stock Option Award Certificate, dated September 29, 2015, by and between Lewis W. Dickey, Jr. and the Company (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, filed with the SEC on September 30, 2015). | |
10.3 * | Form of Non Qualified Stock Option Agreement as of October 13, 2015, by and between the Company and Mary G. Berner (incorporated by reference to Exhibit A to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on September 30, 2015) | |
10.4 * | Form of Stock Option Award Certificate (incorporated herein by reference to Exhibit (d)(8) to Cumulus Media Inc.’s Schedule TO-I, File No. 005-54277, filed on December 1, 2008). | |
10.5 * | Form of 2008 Equity Incentive Plan Restricted Stock Agreement (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on March 4, 2009). | |
10.6 * | Form of 2008 Equity Incentive Plan Stock Option Award Agreement (incorporated by reference to Exhibit 10.14 to Cumulus Media Inc.’s Annual Report on Form 10-K, File No. 000-24525, filed on March 16, 2009). | |
10.7 * | Cumulus Media Inc. 2011 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.7 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
10.8 * | Form of Nonqualified Stock Option Agreement (incorporated herein by reference to Exhibit 10.8 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
10.9 * | Form of Non-employee Director Restricted Stock Agreement under the Cumulus Media Inc. 2011 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.1 to Cumulus Media Inc.’s Quarterly Report on Form 10-Q, File No. 000- 24525, filed on May 7, 2012). | |
10.10 * | Form of Employment Agreement with certain executive officers, dated as of November 29, 2011 (incorporated herein by reference to Exhibit 10.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on December 2, 2011). | |
10.11 | Receivables Sale and Servicing Agreement, dated as of December 6, 2013, by and among each of the originators party thereto, CMI Receivables Funding LLC, as Buyer, and Cumulus Media Holdings Inc., as Servicer (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24545, filed on December 12, 2013). | |
10.12 | Receivables Funding and Administration Agreement, dated as of December 6, 2013, by and among CMI Receivables Funding LLC, as Borrower, the lenders signatory thereto from time to time and General Electric Capital Corporation, as a lender, as Swing Line Lender and as Administrative Agent (incorporated by reference to Exhibit 10.2 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24545, filed on December 12, 2013). | |
10.13 | Amended and Restated Credit Agreement, dated as of December 23, 2013, among Cumulus Media Inc., Cumulus Media Holdings Inc., as Borrower, certain lenders, JPMorgan Chase Bank, N.A., as lender and Administrative Agent, Royal Bank of Canada and Macquarie Capital (USA) Inc., as co-syndication agents, and Credit Suisse AG, Cayman Islands Branch, Fifth Third Bank, Goldman Sachs Bank USA and ING Capital LLC, as co-documentation agents (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24545, filed on December 23, 2013). | |
10.14 | First Lien Guarantee and Collateral Agreement, dated as of September 16, 2011, made by Cumulus Media Inc., Cumulus Media Holdings Inc. and certain subsidiaries of Cumulus Media Inc. in favor of JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated herein by reference to Exhibit 10.3 to Cumulus Media Inc.’s Current Report on Form 8- K, File No. 000-24525, filed on September 22, 2011). | |
10.15 * | First Amendment to Employment Agreement, dated April 18, 2015, between Lewis W. Dickey, Jr. and Cumulus Media Inc. (incorporated by reference to Exhibit 10.2 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on April 28, 2015). | |
10.16 * | First Amendment to Employment Agreement, dated March 30, 2016, by and between Cumulus Media Inc. and Richard S. Denning (incorporated by reference to Exhibit 10.2 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on March 31, 2016). | |
10.17 * | Second Amendment to Employment Agreement, dated August 26, 2016, by and between Cumulus Media Inc. and Richard S. Denning (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.'s Quarterly Report on Form 10-Q filed with the SEC on March 31, 2016). | |
10.18 ** | Employment Agreement, dated July 1, 2016, by and between Cumulus Media Inc. and John Abbot. | |
10.19 * | First Amendment to Employment Agreement, dated March 30, 2016, by and between Cumulus Media Inc. and Joseph P. Hannan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K Filed with the SEC on March 31, 2016). | |
10.20 * | Employment Agreement, dated as of December 13, 2015, by and between Cumulus Media Inc. and Suzanne Grimes (incorporated by reference to Exhibit 10.3 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on March 31, 2016). | |
10.21 * | First Amendment to Employment Agreement, dated March 30, 2016, by and between Cumulus Media Inc. and Suzanne Grimes (incorporated by reference to Exhibit 10.4 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on March 31, 2016). | |
10.22 * | First Amendment to Employment Agreement, dated March 30, 2016, by and between Cumulus Media Inc. and Mary G. Berner (incorporated by reference to Exhibit 10.5 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on March 31, 2016). | |
10.23** | Form of Indemnification Agreement with directors and certain executive officers. | |
10.24** | Refinancing Support Agreement, dated December 6, 2016, by and among Cumulus Media Inc., Cumulus Media Holdings Inc., and certain direct and indirect subsidiaries and Supporting Noteholders | |
12.1 ** | Computation of Ratio of Earnings to Fixed Charges. | |
21.1 ** | Subsidiaries of Cumulus Media Inc. | |
23.1 ** | Consent of PricewaterhouseCoopers LLP. | |
31.1 ** | Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 ** | Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 ** | Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Management contract or compensatory plan or arrangement. |
** | Filed or furnished herewith. |
(b) | Exhibits. See Exhibits above. |
(c) | Financial Statement Schedules. Schedule II – Valuation and Qualifying Accounts. |
Item 16. | Form 10-K Summary |
CUMULUS MEDIA INC. | |||
By | /s/ John Abbot | ||
John Abbot Executive Vice President, Treasurer and Chief Financial Officer |
Signature | Title | Date | ||
/s/ Mary G. Berner | President, Chief Executive Officer and | March 16, 2017 | ||
Mary G. Berner | Director | |||
/s/ John Abbot | Executive Vice President, Treasurer and | March 16, 2017 | ||
John Abbot | Chief Financial Officer (Principal Financial and Accounting Officer) | |||
/s/ Jeffrey Marcus | Director | March 16, 2017 | ||
Jeffrey Marcus | ||||
/s/ Brian Cassidy | Director | March 16, 2017 | ||
Brian Cassidy | ||||
/s/ Lewis W Dickey | Director | March 16, 2017 | ||
Lewis W. Dickey | ||||
/s/ Ralph B. Everett | Director | March 16, 2017 | ||
Ralph B. Everett | ||||
/s/ Alexis Glick | Director | March 16, 2017 | ||
Alexis Glick | ||||
/s/ David M. Tolley | Director | March 16, 2017 | ||
David M. Tolley |
Page | ||
(1) | Financial Statements | |
(2) | Financial Statement Schedule | |
2016 | 2015 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 131,259 | $ | 31,657 | |||
Restricted cash | 8,025 | 7,981 | |||||
Accounts receivable, less allowance for doubtful accounts of $4,691 and $4,923 in 2016 and 2015, respectively | 231,585 | 243,428 | |||||
Trade receivable | 4,985 | 4,146 | |||||
Assets held for sale | 30,150 | 45,157 | |||||
Prepaid expenses and other current assets | 33,923 | 26,906 | |||||
Total current assets | 439,927 | 359,275 | |||||
Property and equipment, net | 162,063 | 169,437 | |||||
Broadcast licenses | 1,540,183 | 1,578,066 | |||||
Other intangible assets, net | 116,499 | 174,530 | |||||
Goodwill | 135,214 | 703,354 | |||||
Other assets | 18,805 | 17,726 | |||||
Total assets | $ | 2,412,691 | $ | 3,002,388 | |||
Liabilities and Stockholders’ (Deficit) Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 96,241 | $ | 118,396 | |||
Trade payable | 4,550 | 4,374 | |||||
Total current liabilities | 100,791 | 122,770 | |||||
Term loan, net of debt issuance costs/discounts of $29,909 and $37,524 at December 31, 2016 and 2015, respectively | 1,780,357 | 1,801,416 | |||||
7.75% senior notes, net of debt issuance costs of $6,200 and $8,515 at December 31, 2016 and 2015, respectively | 603,800 | 601,485 | |||||
Other liabilities | 31,431 | 44,804 | |||||
Deferred income taxes | 388,050 | 415,881 | |||||
Total liabilities | 2,904,429 | 2,986,356 | |||||
Commitments and Contingencies (Note 13) | |||||||
Stockholders’ (deficit) equity: | |||||||
Class A common stock, par value $0.01 per share; 93,750,000 shares authorized; 32,031,054 and 31,987,862 shares issued and 29,225,765 and 29,182,118 shares outstanding at 2016 and 2015, respectively | 320 | 320 | |||||
Class C common stock, par value $0.01 per share; 80,609 shares authorized, issued and outstanding at 2016 and 2015 | 1 | 1 | |||||
Treasury stock, at cost, 2,806,187 and 2,805,743 shares at 2016 and 2015, respectively | (229,310 | ) | (229,310 | ) | |||
Additional paid-in-capital | 1,624,815 | 1,621,865 | |||||
Accumulated deficit | (1,887,564 | ) | (1,376,844 | ) | |||
Total stockholders’ (deficit) equity | (491,738 | ) | 16,032 | ||||
Total liabilities and stockholders’ equity | $ | 2,412,691 | $ | 3,002,388 |
2016 | 2015 | 2014 | |||||||||
Net revenue | $ | 1,141,400 | $ | 1,168,679 | $ | 1,263,423 | |||||
Operating expenses: | |||||||||||
Content costs | 427,780 | 396,426 | 433,596 | ||||||||
Selling, general & administrative expenses | 472,900 | 477,327 | 470,441 | ||||||||
Depreciation and amortization | 87,267 | 102,105 | 115,275 | ||||||||
LMA fees | 12,824 | 10,129 | 7,195 | ||||||||
Corporate expenses (including stock-based compensation expense of $2,948, $21,033, and $17,638, respectively) | 40,148 | 73,403 | 76,428 | ||||||||
(Gain) loss on sale of assets or stations | (95,695 | ) | 2,856 | (1,342 | ) | ||||||
Impairment of intangible assets and goodwill | 604,965 | 565,584 | — | ||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | 19,364 | — | ||||||||
Total operating expenses | 1,550,189 | 1,647,194 | 1,101,593 | ||||||||
Operating (loss) income | (408,789 | ) | (478,515 | ) | 161,830 | ||||||
Non-operating expense: | |||||||||||
Interest expense | (138,634 | ) | (141,679 | ) | (145,533 | ) | |||||
Interest income | 493 | 433 | 1,388 | ||||||||
Gain on early extinguishment of debt | 8,017 | 13,222 | — | ||||||||
Other income, net | 2,039 | 14,205 | 4,338 | ||||||||
Total non-operating expense, net | (128,085 | ) | (113,819 | ) | (139,807 | ) | |||||
(Loss) income before income taxes | (536,874 | ) | (592,334 | ) | 22,023 | ||||||
Income tax benefit (expense) | 26,154 | 45,840 | (10,254 | ) | |||||||
Net (loss) income | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,769 | |||
Basic and diluted (loss) income per common share (see Note 11, “Earnings (Loss) Per Share”): | |||||||||||
Basic: (Loss) income per share | $ | (17.45 | ) | $ | (18.72 | ) | $ | 0.40 | |||
Diluted: (Loss) income per share | $ | (17.45 | ) | $ | (18.72 | ) | $ | 0.40 | |||
Weighted average basic common shares outstanding | 29,270,455 | 29,176,930 | 28,267,807 | ||||||||
Weighted average diluted common shares outstanding | 29,270,455 | 29,176,930 | 28,620,395 |
Class A Common Stock | Class B Common Stock | Class C Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Number of Shares | Par Value | Number of Shares | Par Value | Number of Shares | Value | Additional Paid-In Capital | Accumulated Deficit | Total | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | 27,799,878 | $ | 278 | 1,928,118 | $ | 19 | 80,609 | $ | 1 | 3,025,650 | $ | (251,193 | ) | $ | 1,605,754 | $ | (842,119 | ) | $ | 512,740 | |||||||||||||||||||
Net Income | 11,769 | 11,769 | |||||||||||||||||||||||||||||||||||||
Conversion of equity upon exercise of warrants | 1,990,123 | 20 | — | — | — | — | 5,115 | (270 | ) | 363 | — | 113 | |||||||||||||||||||||||||||
Shares returned in lieu of tax payments | — | — | — | — | — | — | 24,859 | (1,332 | ) | — | — | (1,332 | ) | ||||||||||||||||||||||||||
Restricted shares issued from treasury | — | — | — | — | — | — | (11,664 | ) | 956 | (956 | ) | — | — | ||||||||||||||||||||||||||
Stock option exercises | 156,623 | 2 | — | — | — | — | 88,273 | (4,730 | ) | 5,348 | — | 620 | |||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | — | — | — | 17,638 | — | 17,638 | ||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | 32 | — | 32 | ||||||||||||||||||||||||||||
Stock conversion | 1,928,117 | 19 | (1,928,118 | ) | (19 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Citadel Bankruptcy shares issued | — | — | — | — | — | — | (304,789 | ) | 24,981 | (24,981 | ) | — | — | ||||||||||||||||||||||||||
Balance at December 31, 2014 | 31,874,741 | 319 | — | — | 80,609 | 1 | 2,827,444 | (231,588 | ) | 1,603,198 | (830,350 | ) | 541,580 | ||||||||||||||||||||||||||
Net loss | (546,494 | ) | (546,494 | ) | |||||||||||||||||||||||||||||||||||
Conversion of equity upon exercise of warrants | 113,121 | $ | 1 | — | $ | — | — | $ | — | 6,288 | $ | (115 | ) | $ | 120 | $ | — | $ | 6 | ||||||||||||||||||||
Shares returned in lieu of tax payments | — | — | — | — | — | — | — | (93 | ) | — | — | (93 | ) | ||||||||||||||||||||||||||
Restricted shares issued from treasury | — | — | — | — | — | — | (27,989 | ) | 2,486 | (2,486 | ) | — | — | ||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | — | — | — | 21,033 | — | 21,033 | ||||||||||||||||||||||||||||
Balance at December 31, 2015 | 31,987,862 | 320 | — | — | 80,609 | 1 | 2,805,743 | (229,310 | ) | 1,621,865 | (1,376,844 | ) | 16,032 | ||||||||||||||||||||||||||
Net loss | (510,720 | ) | (510,720 | ) | |||||||||||||||||||||||||||||||||||
Conversion of equity upon exercise of warrants | 43,192 | — | — | — | — | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | — | — | — | 2,948 | — | 2,948 | ||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | 444 | — | — | — | — | ||||||||||||||||||||||||||||
Balance at December 31, 2016 | 32,031,054 | $ | 320 | — | $ | — | 80,609 | $ | 1 | 2,806,187 | $ | (229,310 | ) | $ | 1,624,815 | $ | (1,887,564 | ) | $ | (491,738 | ) |
2016 | 2015 | 2014 | |||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,769 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 87,267 | 102,105 | 115,275 | ||||||||
Amortization of debt issuance costs/discounts | 9,961 | 9,541 | 9,493 | ||||||||
Provision for doubtful accounts | 1,103 | 4,501 | 4,302 | ||||||||
(Gain) loss on sale of assets or stations | (95,695 | ) | 2,856 | (1,342 | ) | ||||||
Impairment of intangible assets and goodwill | 604,965 | 565,584 | — | ||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | 19,364 | — | ||||||||
Fair value adjustment of derivative instruments | — | — | 21 | ||||||||
Deferred income taxes | (27,831 | ) | (48,262 | ) | 6,902 | ||||||
Stock-based compensation expense | 2,948 | 21,033 | 17,638 | ||||||||
Gain on early extinguishment of debt | (8,017 | ) | (13,222 | ) | — | ||||||
Changes in assets and liabilities (excluding acquisitions and dispositions): | |||||||||||
Accounts receivable | 10,740 | 371 | 12,195 | ||||||||
Trade receivable | (839 | ) | (1,691 | ) | 1,964 | ||||||
Prepaid expenses and other current assets | (7,017 | ) | 16,983 | (14,750 | ) | ||||||
Other assets | (1,106 | ) | (6,208 | ) | (6,716 | ) | |||||
Accounts payable and accrued expenses | (16,816 | ) | (34,122 | ) | 7,074 | ||||||
Trade payable | 176 | 410 | 118 | ||||||||
Other liabilities | (13,374 | ) | (10,317 | ) | (27,147 | ) | |||||
Net cash provided by operating activities | 35,745 | 82,432 | 136,796 | ||||||||
Cash flows from investing activities: | |||||||||||
Restricted cash | (44 | ) | 2,074 | (3,909 | ) | ||||||
Proceeds from sale of assets or stations | 106,935 | 9,201 | 15,843 | ||||||||
Capital expenditures | (23,037 | ) | (19,236 | ) | (19,006 | ) | |||||
Acquisitions less cash acquired | — | — | (8,500 | ) | |||||||
Net cash provided by (used in) investing activities | 83,854 | (7,961 | ) | (15,572 | ) | ||||||
Cash flows from financing activities: | |||||||||||
Repayment of borrowings under term loans and revolving credit facilities | (20,000 | ) | (50,000 | ) | (156,125 | ) | |||||
Proceeds from borrowings under term loans and revolving credit facilities | — | — | 10,000 | ||||||||
Tax withholding payments on behalf of employees | — | (93 | ) | (1,332 | ) | ||||||
Proceeds from exercise of warrants | 3 | 8 | 113 | ||||||||
Proceeds from exercise of options | — | — | 620 | ||||||||
Deferred financing costs | — | — | (21 | ) | |||||||
Net cash used in financing activities | (19,997 | ) | (50,085 | ) | (146,745 | ) | |||||
Increase (decrease) in cash and cash equivalents | 99,602 | 24,386 | (25,521 | ) | |||||||
Cash and cash equivalents at beginning of period | 31,657 | 7,271 | 32,792 | ||||||||
Cash and cash equivalents at end of period | $ | 131,259 | $ | 31,657 | $ | 7,271 | |||||
Supplemental disclosures of cash flow information: | |||||||||||
Interest paid | $ | 126,515 | $ | 129,314 | $ | 135,392 | |||||
Income taxes paid | 4,451 | 2,620 | 9,633 | ||||||||
Supplemental disclosures of non-cash flow information: | |||||||||||
Trade revenue | $ | 37,691 | $ | 39,237 | $ | 34,876 | |||||
Trade expense | 36,158 | 40,427 | 36,753 | ||||||||
Equity interest in Pulser Media, Inc. | — | 2,025 | 17,235 | ||||||||
Transfer of deposit from escrow - Los Angeles land and building sale | 6,000 | — | — |
Estimated Useful Life | 2016 | 2015 | |||||||
Land | $ | 63,484 | $ | 63,627 | |||||
Broadcasting and other equipment | 3 to 30 years | 234,760 | 229,989 | ||||||
Computer and capitalized software costs | 1 to 3 years | 29,591 | 28,959 | ||||||
Furniture and fixtures | 5 years | 14,899 | 14,183 | ||||||
Leasehold improvements | 5 years | 40,242 | 36,242 | ||||||
Buildings | 9 to 20 years | 46,351 | 45,988 | ||||||
Construction in progress | 14,036 | 2,043 | |||||||
443,363 | 421,031 | ||||||||
Less: accumulated depreciation | (281,300 | ) | (251,594 | ) | |||||
$ | 162,063 | $ | 169,437 |
Goodwill: | |||
Balance as of December 31, 2015: | |||
Goodwill | $ | 1,278,526 | |
Accumulated impairment losses | (710,386 | ) | |
Total | $ | 568,140 | |
Balance as of December 31, 2016: | |||
Goodwill | 1,278,526 | ||
Accumulated impairment losses | (1,278,526 | ) | |
Total | $ | — |
Goodwill: | |||
Balance as of December 31, 2015: | |||
Goodwill | $ | 304,280 | |
Accumulated impairment losses | (169,066 | ) | |
Total | $ | 135,214 | |
Balance as of December 31, 2016: | |||
Goodwill | 304,280 | ||
Accumulated impairment losses | (169,066 | ) | |
Total | $ | 135,214 |
Goodwill: | |||
Balance as of December 31, 2015: | |||
Goodwill | $ | 1,582,806 | |
Accumulated impairment losses | (879,452 | ) | |
Total | $ | 703,354 | |
Balance as of December 31, 2016: | |||
Goodwill | 1,582,806 | ||
Accumulated impairment losses | (1,447,592 | ) | |
Total | $ | 135,214 |
FCC Licenses | Definite-Lived | Total | |||||||||
Intangible Assets: | |||||||||||
Balance as of January 1, 2015 | $ | 1,596,715 | $ | 243,640 | $ | 1,840,355 | |||||
Impairment | (15,873 | ) | — | (15,873 | ) | ||||||
Disposition | (2,776 | ) | — | (2,776 | ) | ||||||
Amortization | — | (69,110 | ) | (69,110 | ) | ||||||
Balance as of December 31, 2015 | $ | 1,578,066 | $ | 174,530 | $ | 1,752,596 | |||||
Balance as of January 1, 2016 | $ | 1,578,066 | $ | 174,530 | $ | 1,752,596 | |||||
Impairment | (35,000 | ) | (1,816 | ) | (36,816 | ) | |||||
Disposition | (2,883 | ) | — | (2,883 | ) | ||||||
Amortization | — | (56,215 | ) | (56,215 | ) | ||||||
Balance as of December 31, 2016 | $ | 1,540,183 | $ | 116,499 | $ | 1,656,682 |
2017 | $ | 33,505 | |
2018 | 18,201 | ||
2019 | 17,257 | ||
2020 | 17,197 | ||
2021 | 17,114 | ||
Thereafter | 13,225 | ||
Total other intangibles, net | $ | 116,499 |
Reporting Unit 1 | Reporting Unit 2 | Reporting Unit 3 | |||||||
Goodwill balance | $ | 568,141 | $ | 135,213 | N/A ** | ||||
Carrying value (including goodwill) | $ | 2,040,207 | $ | 194,282 | N/A ** | ||||
Percentage fair value above carrying value | N/A* | 63.8 | % | N/A ** | |||||
* Reporting Unit 1 failed the Step 1 test | |||||||||
** Contains no goodwill |
• | projected operating revenues and expenses over a five-year period; |
• | the estimation of initial and on-going capital expenditures (based on market size); |
• | depreciation on initial and on-going capital expenditures (we calculated depreciation using accelerated double declining balance guidelines over five years for the value of the tangible assets necessary for a radio station to go on the air); |
• | the estimation of working capital requirements (based on working capital requirements for comparable companies); and |
• | amortization of the intangible asset — the FCC license. |
December 31, 2016 | December 31, 2015 | ||||||
Accrued employee costs | $ | 30,887 | $ | 22,169 | |||
Accrued third party content costs | 29,285 | 36,166 | |||||
Accounts payable | 12,739 | 11,492 | |||||
Accrued other | 14,494 | 23,998 | |||||
Accrued interest | 8,334 | 8,106 | |||||
Accrued retention and severance costs | 502 | 10,465 | |||||
Advance deposit received | — | 6,000 | |||||
Total accounts payable and accrued expenses | $ | 96,241 | $ | 118,396 |
December 31, 2016 | December 31, 2015 | ||||||
Term Loan | $ | 1,810,266 | $ | 1,838,940 | |||
Less: unamortized term loan discount and debt issuance costs | (29,909 | ) | (37,524 | ) | |||
Total term loan | 1,780,357 | 1,801,416 | |||||
7.75% Senior Notes | 610,000 | 610,000 | |||||
Less: unamortized debt issuance costs | (6,200 | ) | (8,515 | ) | |||
Total 7.75% Senior Notes | 603,800 | 601,485 | |||||
Less: Current portion of long-term debt | — | — | |||||
Long-term debt, net | $ | 2,384,157 | $ | 2,402,901 |
2017 | $ | — | |
2018 | — | ||
2019 | 610,000 | ||
2020 | 1,810,266 | ||
2021 | — | ||
Thereafter | — | ||
$ | 2,420,266 |
Description | Equity Interest in Pulser | ||
Fair value balance at January 1, 2015 | $ | 17,339 | |
Add: Additions to equity interest in Pulser | 2,025 | ||
Less: Impairment charge | (19,364 | ) | |
Fair value balance at December 31, 2015 | $ | — |
December 31, 2016 | December 31, 2015 | ||||||
Term Loan: | |||||||
Carrying value | $ | 1,810,266 | $ | 1,838,940 | |||
Fair value — Level 2 | 1,226,455 | 1,360,816 | |||||
7.75% Senior Notes: | |||||||
Carrying value | $ | 610,000 | $ | 610,000 | |||
Fair value — Level 2 | 249,673 | 204,350 |
• | Voting Rights. The holders of shares of Class A common stock are entitled to one vote per share on any matter submitted to a vote of the stockholders of the Company, and the holders of shares of Class C common stock are entitled to ten votes for each share of Class C common stock held. Generally, the holders of shares of Class B common stock are not entitled to vote on any matter. However, holders of Class B common stock and Class C common stock are 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 or Class C common stock, respectively, that does not similarly affect the rights or obligations of the holders of Class A common stock. The holders of Class A common stock and of Class C common stock vote together, as a single class, on all matters submitted to a vote of the stockholders of the Company. |
• | Conversion. Each holder of Class B common stock and Class C common stock is entitled to convert at any time all or any part of such holder’s shares into an equal number of shares of Class A common stock; provided, however, that to the extent that such conversion would result in the holder holding more than 4.99% of the shares of Class A common stock immediately following such conversion, the holder shall first deliver to the Company an ownership certification to enable the Company (a) to determine that such holder does not have an attributable interest in another entity that would cause the Company to violate applicable FCC rules and regulations and (b) to obtain any necessary approvals from the FCC or the Department of Justice. During the year ended December 31, 2014, all of the approximately 1.9 million shares of outstanding Class B common stock were converted into shares of Class A common stock. There were no shares of Class B common stock issued or outstanding as of December 31, 2016 and 2015. |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||
Options to Purchase Class A Common Stock | ||||||||||||
Outstanding at January 1, 2016 | 3,216,193 | $ | 34.88 | |||||||||
Granted | 389,938 | 5.96 | ||||||||||
Exercised | — | — | ||||||||||
Forfeited/Canceled | (41,523 | ) | 42.85 | |||||||||
Expired | (92,153 | ) | 37.61 | |||||||||
Outstanding at December 31, 2016 | 3,472,455 | $ | 31.46 | 6.36 | $ | 392 | ||||||
Vested or expected to vest at December 31, 2016 | 3,472,455 | $ | 31.46 | 6.36 | $ | 18,081 | ||||||
Exercisable at December 31, 2016 | 2,620,358 | $ | 36.94 | 5.55 | $ | 668 |
Number of Restricted Stock Awards (in thousands) | Weighted- Average Grant Date Fair Value (in thousands) | |||||
Restricted Common Stock Awards | ||||||
Outstanding at January 1, 2016 | 30,365 | $ | 19.76 | |||
Granted | — | — | ||||
Vested | (30,365 | ) | 19.76 | |||
Forfeited | — | — | ||||
Outstanding awards at December 31, 2016 | — | $ | — |
2016 | 2015 | 2014 | ||||||||||
Current income tax expense | ||||||||||||
State and local | $ | 1,678 | $ | 2,422 | $ | 3,352 | ||||||
Total current income tax expense | $ | 1,678 | $ | 2,422 | $ | 3,352 | ||||||
Deferred tax (benefit) expense | ||||||||||||
Federal | $ | (19,496 | ) | $ | (48,123 | ) | $ | 7,172 | ||||
State and local | (8,336 | ) | (139 | ) | (270 | ) | ||||||
Total deferred tax (benefit) expense | (27,832 | ) | (48,262 | ) | 6,902 | |||||||
Total income tax (benefit) expense | $ | (26,154 | ) | $ | (45,840 | ) | $ | 10,254 |
2016 | 2015 | 2014 | ||||||||||
Pretax (loss) income at federal statutory rate | $ | (187,906 | ) | $ | (207,317 | ) | $ | 7,707 | ||||
State income tax (benefit) expense, net federal (benefit) expense | (1,812 | ) | (1,385 | ) | 992 | |||||||
Meals and entertainment | 429 | 380 | 424 | |||||||||
Change in state tax rates | (1,618 | ) | 1,605 | (1,580 | ) | |||||||
Section 162 disallowance | 538 | 110 | 562 | |||||||||
Impairment charges on goodwill with no tax basis | 163,630 | 153,371 | — | |||||||||
Increase in valuation allowance | 32 | 190 | 2,189 | |||||||||
Other | 553 | 7,206 | (40 | ) | ||||||||
Net income tax (benefit) expense | $ | (26,154 | ) | $ | (45,840 | ) | $ | 10,254 |
2016 | 2015 | ||||||
Noncurrent deferred tax assets: | |||||||
Accounts receivable | $ | 1,422 | $ | 1,849 | |||
Advertising relationships | 2,548 | 3,686 | |||||
Other liabilities | 27,014 | 28,140 | |||||
AMT tax credit | 2,042 | 2,042 | |||||
Net operating loss | 111,778 | 155,475 | |||||
Noncurrent deferred tax assets | 144,804 | 191,192 | |||||
Less: valuation allowance | (17,205 | ) | (17,173 | ) | |||
Net noncurrent deferred tax assets | 127,599 | 174,019 | |||||
Noncurrent deferred tax liabilities: | |||||||
Intangible assets | 482,620 | 527,775 | |||||
Property and equipment | 20,485 | 30,260 | |||||
Cancellation of debt income | 12,544 | 31,865 | |||||
Noncurrent deferred tax liabilities | 515,649 | 589,900 | |||||
Net noncurrent deferred tax liabilities | 388,050 | 415,881 | |||||
Net deferred tax liabilities | $ | 388,050 | $ | 415,881 |
Balance at January 1, 2015 | $ | 14,466 | ||
Settlements | (1,180 | ) | ||
Lapse of statute of limitations | (657 | ) | ||
Balance at December 31, 2015 | $ | 12,629 | ||
Increase for prior year positions | 275 | |||
Lapse of statute of limitations | (1,014 | ) | ||
Balance at December 31, 2016 | $ | 11,890 |
2016 | 2015 | 2014 | |||||||||
Basic (Loss) Earnings Per Share | |||||||||||
Numerator: | |||||||||||
Undistributed net (loss) income continuing operations | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,769 | |||
Less: | |||||||||||
Participation rights of the Company Warrants in undistributed earnings | — | — | 358 | ||||||||
Participation rights of unvested restricted stock in undistributed earnings | — | — | 12 | ||||||||
Basic undistributed net (loss) income from operations — attributable to common shares | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,399 | |||
Denominator: | |||||||||||
Basic weighted average common shares outstanding | 29,270 | 29,177 | 28,268 | ||||||||
Basic (loss) income from operations per share — attributable to common shares | $ | (17.45 | ) | $ | (18.72 | ) | $ | 0.40 | |||
Diluted (Loss) Earnings Per Share | |||||||||||
Numerator: | |||||||||||
Undistributed net (loss) income from operations | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,769 | |||
Less: | |||||||||||
Participation rights of the Company Warrants in undistributed net income | — | — | 354 | ||||||||
Participation rights of unvested restricted stock in undistributed earnings | — | — | 12 | ||||||||
Basic undistributed net (loss) income from continuing operations — attributable to common shares | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,403 | |||
Denominator: | |||||||||||
Basic weighted average shares outstanding | 29,270 | 29,177 | 28,268 | ||||||||
Effect of dilutive options and warrants | — | — | 352 | ||||||||
Diluted weighted average shares outstanding | 29,270 | 29,177 | 28,620 | ||||||||
Diluted (loss) income from operations per share — attributable to common shares | $ | (17.45 | ) | $ | (18.72 | ) | $ | 0.40 |
Year Ending December 31: | Future Minimum Rent Under Operating Leases | Future Minimum Sublease Income | Future Minimum Commitments Under Sale Leaseback Agreement | Net Commitments | ||||||||||||
2017 | 23,503 | (1,028 | ) | 1,114 | 23,589 | |||||||||||
2018 | 20,540 | (1,028 | ) | 1,153 | 20,665 | |||||||||||
2019 | 17,695 | (1,028 | ) | 1,193 | 17,860 | |||||||||||
2020 | 13,723 | (1,028 | ) | — | 12,695 | |||||||||||
2021 | 10,880 | (1,028 | ) | — | 9,852 | |||||||||||
Thereafter | 32,481 | (2,314 | ) | — | 30,167 | |||||||||||
$ | 118,822 | $ | (7,454 | ) | $ | 3,460 | $ | 114,828 |
Three Months Ended | |||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2016 | |||||||||||||||
Net revenue | $ | 268,530 | $ | 287,193 | $ | 286,136 | $ | 299,541 | |||||||
Operating income (loss) | $ | 10,114 | $ | 36,665 | $ | 113,017 | $ | (568,585 | ) | ||||||
(Loss) income before income taxes | $ | (23,562 | ) | $ | 2,315 | $ | 79,109 | $ | (594,736 | ) | |||||
Net (loss) income | $ | (14,429 | ) | $ | 1,066 | $ | 46,321 | $ | (543,677 | ) | |||||
Basic: | |||||||||||||||
(Loss) income per share | $ | (0.49 | ) | $ | 0.04 | $ | 1.58 | $ | (18.57 | ) | |||||
Diluted: | |||||||||||||||
(Loss) income per share | $ | (0.49 | ) | $ | 0.04 | $ | 1.58 | $ | (18.57 | ) | |||||
FOR THE YEAR ENDED DECEMBER 31, 2015 | |||||||||||||||
Net revenue | $ | 271,079 | $ | 299,334 | $ | 289,441 | $ | 308,825 | |||||||
Operating income (loss) | $ | 11,875 | $ | 48,003 | $ | (567,214 | ) | $ | 28,821 | ||||||
(Loss) income before income taxes | $ | (22,372 | ) | $ | 24,991 | $ | (603,034 | ) | $ | 8,081 | |||||
Net (loss) income | $ | (12,015 | ) | $ | 12,299 | $ | (542,179 | ) | $ | (4,599 | ) | ||||
Basic: | |||||||||||||||
(Loss) income per share | $ | (0.40 | ) | $ | 0.40 | $ | (18.56 | ) | $ | (0.16 | ) | ||||
Diluted: | |||||||||||||||
(Loss) income per share | $ | (0.40 | ) | $ | 0.40 | $ | (18.56 | ) | $ | (0.16 | ) |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non- guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | 165 | $ | 1,141,235 | $ | — | $ | — | $ | 1,141,400 | |||||||||||
Operating expenses: | |||||||||||||||||||||||
Content costs | — | — | 427,780 | — | — | 427,780 | |||||||||||||||||
Selling, general & administrative expenses | — | — | 470,546 | 2,354 | — | 472,900 | |||||||||||||||||
Depreciation and amortization | — | 1,530 | 85,737 | — | — | 87,267 | |||||||||||||||||
LMA fees | — | — | 12,824 | — | — | 12,824 | |||||||||||||||||
Corporate expenses (including stock-based compensation expense of $2,948) | — | 40,148 | — | — | — | 40,148 | |||||||||||||||||
Gain on sale of assets or stations | — | — | (95,695 | ) | — | — | (95,695 | ) | |||||||||||||||
Impairment on intangible assets and goodwill | — | — | 604,965 | — | — | 604,965 | |||||||||||||||||
Total operating expenses | — | 41,678 | 1,506,157 | 2,354 | — | 1,550,189 | |||||||||||||||||
Operating loss | — | (41,513 | ) | (364,922 | ) | (2,354 | ) | — | (408,789 | ) | |||||||||||||
Non-operating (expense) income: | |||||||||||||||||||||||
Interest (expense) income, net | (8,711 | ) | (129,733 | ) | 493 | (190 | ) | — | (138,141 | ) | |||||||||||||
Gain on early extinguishment of debt | — | 8,017 | — | — | — | 8,017 | |||||||||||||||||
Other income, net | — | — | 2,039 | — | — | 2,039 | |||||||||||||||||
Total non-operating (expense) income, net | (8,711 | ) | (121,716 | ) | 2,532 | (190 | ) | — | (128,085 | ) | |||||||||||||
Loss before income taxes | (8,711 | ) | (163,229 | ) | (362,390 | ) | (2,544 | ) | — | (536,874 | ) | ||||||||||||
Income tax benefit (expense) | 3,484 | 65,292 | (43,640 | ) | 1,018 | — | 26,154 | ||||||||||||||||
(Loss) earnings from consolidated subsidiaries | (505,493 | ) | (407,556 | ) | (1,526 | ) | — | 914,575 | — | ||||||||||||||
Net (loss) income | $ | (510,720 | ) | $ | (505,493 | ) | $ | (407,556 | ) | $ | (1,526 | ) | $ | 914,575 | $ | (510,720 | ) |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non- guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | 500 | $ | 1,168,179 | $ | — | $ | — | $ | 1,168,679 | |||||||||||
Operating expenses: | |||||||||||||||||||||||
Content costs | — | — | 396,426 | — | — | 396,426 | |||||||||||||||||
Selling, general & administrative expenses | — | — | 475,268 | 2,059 | — | 477,327 | |||||||||||||||||
Depreciation and amortization | — | 1,525 | 100,580 | — | — | 102,105 | |||||||||||||||||
LMA fees | — | — | 10,129 | — | — | 10,129 | |||||||||||||||||
Corporate expenses (including stock-based compensation expense of $21,033) | — | 73,403 | — | — | — | 73,403 | |||||||||||||||||
Loss on sale of assets or stations | — | — | 2,856 | — | — | 2,856 | |||||||||||||||||
Impairment on intangible assets and goodwill | — | — | 565,584 | — | — | 565,584 | |||||||||||||||||
Impairment charges - equity interest Pulser Media Inc. | — | — | 19,364 | — | — | 19,364 | |||||||||||||||||
Total operating expenses | — | 74,928 | 1,570,207 | 2,059 | — | 1,647,194 | |||||||||||||||||
Operating loss | — | (74,428 | ) | (402,028 | ) | (2,059 | ) | — | (478,515 | ) | |||||||||||||
Non-operating (expense) income: | |||||||||||||||||||||||
Interest (expense) income, net | (8,735 | ) | (132,754 | ) | 433 | (190 | ) | — | (141,246 | ) | |||||||||||||
Gain on early extinguishment of debt | — | 13,222 | — | — | — | 13,222 | |||||||||||||||||
Other income, net | — | — | 14,205 | — | — | 14,205 | |||||||||||||||||
Total non-operating (expense) income, net | (8,735 | ) | (119,532 | ) | 14,638 | (190 | ) | — | (113,819 | ) | |||||||||||||
Loss from continuing operations before income taxes | (8,735 | ) | (193,960 | ) | (387,390 | ) | (2,249 | ) | — | (592,334 | ) | ||||||||||||
Income tax benefit (expense) | 3,494 | 77,584 | (36,138 | ) | 900 | — | 45,840 | ||||||||||||||||
Loss from continuing operations | (5,241 | ) | (116,376 | ) | (423,528 | ) | (1,349 | ) | — | (546,494 | ) | ||||||||||||
(Loss) earnings from consolidated subsidiaries | (541,253 | ) | (424,877 | ) | (1,349 | ) | — | 967,479 | — | ||||||||||||||
Net (loss) income | $ | (546,494 | ) | $ | (541,253 | ) | $ | (424,877 | ) | $ | (1,349 | ) | $ | 967,479 | $ | (546,494 | ) |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non-guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | 479 | $ | 1,262,944 | $ | — | $ | — | $ | 1,263,423 | |||||||||||
Operating expenses: | |||||||||||||||||||||||
Content costs | — | — | 433,596 | — | — | 433,596 | |||||||||||||||||
Selling, general & administrative expenses | — | — | 468,349 | 2,092 | — | 470,441 | |||||||||||||||||
Depreciation and amortization | — | 1,619 | 113,656 | — | — | 115,275 | |||||||||||||||||
LMA fees | — | — | 7,195 | — | — | 7,195 | |||||||||||||||||
Corporate expenses (including stock-based compensation expense of $17,638) | — | 76,428 | — | — | — | 76,428 | |||||||||||||||||
Gain on sale of assets or stations | — | — | (1,342 | ) | — | — | (1,342 | ) | |||||||||||||||
Total operating expenses | — | 78,047 | 1,021,454 | 2,092 | — | 1,101,593 | |||||||||||||||||
Operating (loss) income | — | (77,568 | ) | 241,490 | (2,092 | ) | — | 161,830 | |||||||||||||||
Non-operating (expense) income: | |||||||||||||||||||||||
Interest (expense) income, net | (9,349 | ) | (135,920 | ) | 1,388 | (264 | ) | — | (144,145 | ) | |||||||||||||
Other expense, net | — | — | 4,338 | — | — | 4,338 | |||||||||||||||||
Total non-operating (expense) income, net | (9,349 | ) | (135,920 | ) | 5,726 | (264 | ) | — | (139,807 | ) | |||||||||||||
(Loss) income from continuing operations before income taxes | (9,349 | ) | (213,488 | ) | 247,216 | (2,356 | ) | — | 22,023 | ||||||||||||||
Income tax benefit (expense) | 3,739 | 81,993 | (96,928 | ) | 942 | — | (10,254 | ) | |||||||||||||||
(Loss) income from continuing operations | (5,610 | ) | (131,495 | ) | 150,288 | (1,414 | ) | — | 11,769 | ||||||||||||||
Earnings (loss) from consolidated subsidiaries | 17,379 | 148,874 | (1,414 | ) | — | (164,839 | ) | — | |||||||||||||||
Net income (loss) | $ | 11,769 | $ | 17,379 | $ | 148,874 | $ | (1,414 | ) | $ | (164,839 | ) | $ | 11,769 |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non-guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 131,259 | $ | — | $ | — | $ | — | $ | 131,259 | |||||||||||
Restricted cash | — | 8,025 | — | — | — | 8,025 | |||||||||||||||||
Accounts receivable, less allowance for doubtful accounts of $4,691 | — | — | — | 231,585 | — | 231,585 | |||||||||||||||||
Trade receivable | — | — | 4,985 | — | — | 4,985 | |||||||||||||||||
Assets held for sale | — | — | 30,150 | — | — | 30,150 | |||||||||||||||||
Prepaid expenses and other current assets | — | 17,321 | 16,602 | — | — | 33,923 | |||||||||||||||||
Total current assets | — | 156,605 | 51,737 | 231,585 | — | 439,927 | |||||||||||||||||
Property and equipment, net | — | 4,431 | 157,632 | — | — | 162,063 | |||||||||||||||||
Broadcast licenses | — | — | — | 1,540,183 | — | 1,540,183 | |||||||||||||||||
Other intangible assets, net | — | — | 116,499 | — | — | 116,499 | |||||||||||||||||
Goodwill | — | — | 135,214 | — | — | 135,214 | |||||||||||||||||
Investment in consolidated subsidiaries | (388,509 | ) | 3,348,992 | 1,012,947 | — | (3,973,430 | ) | — | |||||||||||||||
Intercompany receivables | — | 103,593 | 1,848,263 | — | (1,951,856 | ) | — | ||||||||||||||||
Other assets | — | 21,631 | 135,996 | 364 | (139,186 | ) | 18,805 | ||||||||||||||||
Total assets | $ | (388,509 | ) | $ | 3,635,252 | $ | 3,458,288 | $ | 1,772,132 | $ | (6,064,472 | ) | $ | 2,412,691 | |||||||||
Liabilities and Stockholders’ Equity (Deficit) | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable and accrued expenses | $ | — | $ | 19,994 | $ | 76,247 | $ | — | $ | — | $ | 96,241 | |||||||||||
Trade payable | — | — | 4,550 | — | — | 4,550 | |||||||||||||||||
Total current liabilities | — | 19,994 | 80,797 | — | — | 100,791 | |||||||||||||||||
Term loan, net of debt issuance costs/discounts of $29,909 | — | 1,780,357 | — | — | — | 1,780,357 | |||||||||||||||||
7.75% senior notes, net of debt issuance costs of $6,200 | — | 603,800 | — | — | — | 603,800 | |||||||||||||||||
Other liabilities | — | 2,932 | 28,499 | — | — | 31,431 | |||||||||||||||||
Intercompany payables | 103,229 | 1,616,678 | — | 231,949 | (1,951,856 | ) | — | ||||||||||||||||
Deferred income taxes | — | — | — | 527,236 | (139,186 | ) | 388,050 | ||||||||||||||||
Total liabilities | 103,229 | 4,023,761 | 109,296 | 759,185 | (2,091,042 | ) | 2,904,429 | ||||||||||||||||
Stockholders’ equity (deficit): | |||||||||||||||||||||||
Class A common stock, par value $0.01 per share; 93,750,000 shares authorized; 32,031,054 shares issued and 29,225,765 shares outstanding | 320 | — | — | — | — | 320 | |||||||||||||||||
Class C common stock, par value $0.01 per share; 80,609 shares authorized, issued and outstanding | 1 | — | — | — | — | 1 | |||||||||||||||||
Treasury stock, at cost, 2,806,187 shares | (229,310 | ) | — | — | — | — | (229,310 | ) | |||||||||||||||
Additional paid-in-capital | 1,624,815 | 275,107 | 4,191,057 | 1,991,009 | (6,457,173 | ) | 1,624,815 | ||||||||||||||||
Accumulated (deficit) equity | (1,887,564 | ) | (663,616 | ) | (842,065 | ) | (978,062 | ) | 2,483,743 | (1,887,564 | ) | ||||||||||||
Total stockholders’ (deficit) equity | (491,738 | ) | (388,509 | ) | 3,348,992 | 1,012,947 | (3,973,430 | ) | (491,738 | ) | |||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | (388,509 | ) | $ | 3,635,252 | $ | 3,458,288 | $ | 1,772,132 | $ | (6,064,472 | ) | $ | 2,412,691 |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non-guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 31,657 | $ | — | $ | — | $ | — | $ | 31,657 | |||||||||||
Restricted cash | — | 7,981 | — | — | — | 7,981 | |||||||||||||||||
Accounts receivable, less allowance for doubtful accounts of $4,923 | — | — | — | 243,428 | — | 243,428 | |||||||||||||||||
Trade receivable | — | — | 4,146 | — | — | 4,146 | |||||||||||||||||
Asset held for sale | — | — | 45,157 | — | — | 45,157 | |||||||||||||||||
Prepaid expenses and other current assets | — | 6,375 | 20,531 | — | — | 26,906 | |||||||||||||||||
Total current assets | — | 46,013 | 69,834 | 243,428 | — | 359,275 | |||||||||||||||||
Property and equipment, net | — | 3,685 | 165,752 | — | — | 169,437 | |||||||||||||||||
Broadcast licenses | — | — | — | 1,578,066 | — | 1,578,066 | |||||||||||||||||
Other intangible assets, net | — | — | 174,530 | — | — | 174,530 | |||||||||||||||||
Goodwill | — | — | 703,354 | — | — | 703,354 | |||||||||||||||||
Investment in consolidated subsidiaries | 110,550 | 3,784,551 | 1,056,150 | — | (4,951,251 | ) | — | ||||||||||||||||
Intercompany receivables | — | 95,072 | 1,650,829 | — | (1,745,901 | ) | — | ||||||||||||||||
Other assets | — | 27,491 | 95,716 | 554 | (106,035 | ) | 17,726 | ||||||||||||||||
Total assets | $ | 110,550 | $ | 3,956,812 | $ | 3,916,165 | $ | 1,822,048 | $ | (6,803,187 | ) | $ | 3,002,388 | ||||||||||
Liabilities and Stockholders’ Equity (Deficit) | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable and accrued expenses | $ | — | $ | 31,997 | $ | 86,399 | $ | — | $ | — | $ | 118,396 | |||||||||||
Trade payable | — | — | 4,374 | — | — | 4,374 | |||||||||||||||||
Total current liabilities | — | 31,997 | 90,773 | — | — | 122,770 | |||||||||||||||||
Term loan, net of debt issuance costs/discounts of $37,524 | — | 1,801,416 | — | — | — | 1,801,416 | |||||||||||||||||
7.75% senior notes, net of debt issuance costs of $8,515 | — | 601,485 | — | — | — | 601,485 | |||||||||||||||||
Other liabilities | — | 3,963 | 40,841 | — | — | 44,804 | |||||||||||||||||
Intercompany payables | 94,518 | 1,407,401 | — | 243,982 | (1,745,901 | ) | — | ||||||||||||||||
Deferred income taxes | — | — | — | 521,916 | (106,035 | ) | 415,881 | ||||||||||||||||
Total liabilities | 94,518 | 3,846,262 | 131,614 | 765,898 | (1,851,936 | ) | 2,986,356 | ||||||||||||||||
Stockholders’ equity (deficit): | |||||||||||||||||||||||
Class A common stock, par value $0.01 per share; 93,750,000 shares authorized; 31,987,862 shares issued and 29,182,118 shares outstanding | 320 | — | — | — | — | 320 | |||||||||||||||||
Class C common stock, par value $0.01 per share; 80,609 shares authorized, issued and outstanding | 1 | — | — | — | — | 1 | |||||||||||||||||
Treasury stock, at cost, 2,805,743 shares | (229,310 | ) | — | — | — | — | (229,310 | ) | |||||||||||||||
Additional paid-in-capital | 1,621,865 | 268,673 | 4,219,060 | 2,032,686 | (6,520,419 | ) | 1,621,865 | ||||||||||||||||
Accumulated (deficit) equity | (1,376,844 | ) | (158,123 | ) | (434,509 | ) | (976,536 | ) | 1,569,168 | (1,376,844 | ) | ||||||||||||
Total stockholders’ equity (deficit) | 16,032 | 110,550 | 3,784,551 | 1,056,150 | (4,951,251 | ) | 16,032 | ||||||||||||||||
Total liabilities and stockholders’ equity (deficit) | $ | 110,550 | $ | 3,956,812 | $ | 3,916,165 | $ | 1,822,048 | $ | (6,803,187 | ) | $ | 3,002,388 |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non-guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net (loss) income | $ | (510,720 | ) | $ | (505,493 | ) | $ | (407,556 | ) | $ | (1,526 | ) | $ | 914,575 | $ | (510,720 | ) | ||||||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Depreciation and amortization | — | 1,530 | 85,737 | — | — | 87,267 | |||||||||||||||||
Amortization of debt issuance costs/discounts | — | 9,771 | — | 190 | — | 9,961 | |||||||||||||||||
Provision for doubtful accounts | — | — | 1,103 | — | — | 1,103 | |||||||||||||||||
Gain on sale of assets or stations | — | — | (95,695 | ) | — | — | (95,695 | ) | |||||||||||||||
Impairment on intangible assets and goodwill | — | — | 604,965 | — | — | 604,965 | |||||||||||||||||
Deferred income taxes | (3,484 | ) | (65,292 | ) | 41,963 | (1,018 | ) | — | (27,831 | ) | |||||||||||||
Stock-based compensation expense | — | 2,948 | — | — | — | 2,948 | |||||||||||||||||
Gain on early extinguishment of debt | — | (8,017 | ) | — | — | — | (8,017 | ) | |||||||||||||||
Earnings (loss) from consolidated subsidiaries | 505,493 | 407,556 | 1,526 | — | (914,575 | ) | — | ||||||||||||||||
Changes in assets and liabilities | — | 361,825 | (392,415 | ) | 2,354 | — | (28,236 | ) | |||||||||||||||
Net cash (used in) provided by operating activities | (8,711 | ) | 204,828 | (160,372 | ) | — | — | 35,745 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Proceeds from sale of assets or stations | — | — | 106,935 | — | — | 106,935 | |||||||||||||||||
Restricted cash | — | (44 | ) | — | — | — | (44 | ) | |||||||||||||||
Capital expenditures | — | (2,276 | ) | (20,761 | ) | — | — | (23,037 | ) | ||||||||||||||
Net cash (used in) provided by investing activities | — | (2,320 | ) | 86,174 | — | — | 83,854 | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Intercompany transactions, net | 8,708 | (82,906 | ) | 74,198 | — | — | — | ||||||||||||||||
Repayments of borrowings under revolving credit facilities | — | (20,000 | ) | — | — | — | (20,000 | ) | |||||||||||||||
Proceeds from exercise of warrants | 3 | — | — | — | — | 3 | |||||||||||||||||
Net cash provided by (used in) financing activities | 8,711 | (102,906 | ) | 74,198 | — | — | (19,997 | ) | |||||||||||||||
Increase in cash and cash equivalents | — | 99,602 | — | — | — | 99,602 | |||||||||||||||||
Cash and cash equivalents at beginning of period | — | 31,657 | — | — | — | 31,657 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 131,259 | $ | — | $ | — | $ | — | $ | 131,259 |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non- guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net (loss) income | $ | (546,494 | ) | $ | (541,253 | ) | $ | (424,877 | ) | $ | (1,349 | ) | $ | 967,479 | $ | (546,494 | ) | ||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | — | 1,525 | 100,580 | — | — | 102,105 | |||||||||||||||||
Amortization of debt issuance costs/discount | — | 9,351 | — | 190 | — | 9,541 | |||||||||||||||||
Provision for doubtful accounts | — | — | 4,501 | — | — | 4,501 | |||||||||||||||||
Gain on sale of assets or stations | — | — | 2,856 | — | — | 2,856 | |||||||||||||||||
Impairment on intangible assets and goodwill | — | — | 565,584 | — | — | 565,584 | |||||||||||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | — | 19,364 | — | — | 19,364 | |||||||||||||||||
Deferred income taxes | (3,494 | ) | (77,584 | ) | 33,716 | (900 | ) | — | (48,262 | ) | |||||||||||||
Stock-based compensation expense | — | 21,033 | — | — | — | 21,033 | |||||||||||||||||
Gain on early extinguishment of debt | — | (13,222 | ) | — | — | — | (13,222 | ) | |||||||||||||||
Earnings from consolidated subsidiaries | 541,253 | 424,877 | 1,349 | — | (967,479 | ) | — | ||||||||||||||||
Changes in assets and liabilities | — | 306,482 | (343,115 | ) | 2,059 | — | (34,574 | ) | |||||||||||||||
Net cash (used in) provided by operating activities | (8,735 | ) | 131,209 | (40,042 | ) | — | — | 82,432 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Proceeds from sale of assets or stations | — | — | 9,201 | — | — | 9,201 | |||||||||||||||||
Restricted cash | — | 2,074 | — | — | — | 2,074 | |||||||||||||||||
Capital expenditures | — | (2,557 | ) | (16,679 | ) | — | — | (19,236 | ) | ||||||||||||||
Net cash used in investing activities | — | (483 | ) | (7,478 | ) | — | — | (7,961 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Intercompany transactions, net | 8,727 | (56,244 | ) | 47,517 | — | — | — | ||||||||||||||||
Repayments of borrowings under revolving credit facilities | — | (50,000 | ) | — | — | — | (50,000 | ) | |||||||||||||||
Tax withholding paid on behalf of employees | — | (93 | ) | — | — | — | (93 | ) | |||||||||||||||
Proceeds from exercise of warrants | 8 | — | — | — | — | 8 | |||||||||||||||||
Net cash provided by (used in) financing activities | 8,735 | (106,337 | ) | 47,517 | — | — | (50,085 | ) | |||||||||||||||
Increase (decrease) in cash and cash equivalents | — | 24,389 | (3 | ) | — | — | 24,386 | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 7,268 | 3 | — | — | 7,271 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 31,657 | $ | — | $ | — | $ | — | $ | 31,657 |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non- guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income (loss) | $ | 11,769 | $ | 17,379 | $ | 148,874 | $ | (1,414 | ) | $ | (164,839 | ) | $ | 11,769 | |||||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | — | 1,619 | 113,656 | — | — | 115,275 | |||||||||||||||||
Amortization of debt issuance costs/discounts | — | 9,302 | — | 191 | — | 9,493 | |||||||||||||||||
Provision for doubtful accounts | — | — | 4,302 | — | — | 4,302 | |||||||||||||||||
Gain on sale of assets or stations | — | — | (1,342 | ) | — | — | (1,342 | ) | |||||||||||||||
Fair value adjustment of derivative instruments | — | 21 | — | — | — | 21 | |||||||||||||||||
Deferred income taxes | (3,739 | ) | (81,993 | ) | 93,576 | (942 | ) | — | 6,902 | ||||||||||||||
Stock-based compensation expense | — | 17,638 | — | — | — | 17,638 | |||||||||||||||||
Earnings from consolidated subsidiaries | (17,379 | ) | (148,874 | ) | 1,414 | — | 164,839 | — | |||||||||||||||
Changes in assets and liabilities | — | 349,463 | (368,911 | ) | (7,814 | ) | — | (27,262 | ) | ||||||||||||||
Net cash (used in) provided by operating activities | (9,349 | ) | 164,555 | (8,431 | ) | (9,979 | ) | — | 136,796 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Restricted cash | — | (3,909 | ) | — | — | — | (3,909 | ) | |||||||||||||||
Capital expenditures | — | (1,000 | ) | (18,006 | ) | — | — | (19,006 | ) | ||||||||||||||
Proceeds from exchange of assets or stations | — | — | 15,843 | — | — | 15,843 | |||||||||||||||||
Acquisition less cash required | — | — | (8,500 | ) | — | — | (8,500 | ) | |||||||||||||||
Net cash used in investing activities | — | (4,909 | ) | (10,663 | ) | — | — | (15,572 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Intercompany transactions, net | (3,188 | ) | (50,909 | ) | 19,097 | 35,000 | — | — | |||||||||||||||
Repayment of borrowings under term loans and revolving credit facilities | — | (121,125 | ) | — | (35,000 | ) | — | (156,125 | ) | ||||||||||||||
Proceeds from borrowings under term loans and revolving credit facilities | — | — | — | 10,000 | — | 10,000 | |||||||||||||||||
Tax withholding payments on behalf of employees | — | (1,332 | ) | — | — | — | (1,332 | ) | |||||||||||||||
Proceeds from exercise of warrants | 113 | — | — | — | — | 113 | |||||||||||||||||
Proceeds from exercise of options | 620 | — | — | — | — | 620 | |||||||||||||||||
Deferred financing costs | — | — | — | (21 | ) | (21 | ) | ||||||||||||||||
Net cash (used in) provided by financing activities | (2,455 | ) | (173,366 | ) | 19,097 | 9,979 | — | (146,745 | ) | ||||||||||||||
(Decrease) increase in cash and cash equivalents | (11,804 | ) | (13,720 | ) | 3 | — | — | (25,521 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 11,804 | 20,988 | — | — | — | 32,792 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 7,268 | $ | 3 | $ | — | $ | — | $ | 7,271 |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 802,396 | $ | 336,610 | $ | 2,394 | $ | 1,141,400 |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 796,383 | $ | 368,968 | $ | 3,328 | $ | 1,168,679 |
Year Ended December 31, 2014 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 838,567 | $ | 421,000 | $ | 3,856 | $ | 1,263,423 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Adjusted EBITDA by segment | |||||||||||
Radio Station Group | $ | 218,192 | $ | 241,673 | $ | 273,483 | |||||
Westwood One | 22,984 | 52,958 | $ | 86,231 | |||||||
Segment Adjusted EBITDA | 241,176 | 294,631 | 359,714 | ||||||||
Adjustments | |||||||||||
Corporate and other | (35,309 | ) | (35,486 | ) | $ | (30,188 | ) | ||||
Income tax benefit (expense) | 26,154 | 45,840 | (10,254 | ) | |||||||
Non operating expense, including net interest expense | (136,102 | ) | (127,041 | ) | (139,807 | ) | |||||
LMA fees | (12,824 | ) | (10,129 | ) | (7,195 | ) | |||||
Depreciation and amortization | (87,267 | ) | (102,105 | ) | (115,276 | ) | |||||
Stock-based compensation expense | (2,948 | ) | (21,035 | ) | (17,638 | ) | |||||
Gain (loss) on sale of assets or stations | 95,695 | (2,856 | ) | 1,343 | |||||||
Impairment of intangible assets | (604,965 | ) | (565,580 | ) | — | ||||||
Impairment charges - equity interest in Pulser Media | — | (19,364 | ) | — | |||||||
Acquisition-related and restructuring costs | (1,817 | ) | (16,641 | ) | (28,326 | ) | |||||
Franchise and state taxes | (530 | ) | 50 | (604 | ) | ||||||
Gain on early extinguishment of debt | 8,017 | 13,222 | — | ||||||||
Consolidated net (loss) income | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,769 |
Fiscal Year | Balance at Beginning of Year | Charged to Costs and Expenses | Deductions | Balance at End of Year | ||||||||||||
Allowance for doubtful accounts | ||||||||||||||||
2016 | $ | 4,923 | $ | 1,103 | $ | (1,335 | ) | $ | 4,691 | |||||||
2015 | $ | 6,004 | $ | 4,501 | $ | (5,582 | ) | $ | 4,923 | |||||||
2014 | $ | 5,306 | $ | 4,302 | $ | (3,604 | ) | $ | 6,004 | |||||||
Valuation allowance on deferred taxes | ||||||||||||||||
2016 | $ | 17,173 | $ | 32 | $ | — | $ | 17,205 | ||||||||
2015 | $ | 18,991 | $ | 517 | $ | (2,335 | ) | $ | 17,173 | |||||||
2014 | $ | 16,802 | $ | 2,189 | $ | — | $ | 18,991 |
3.1 | Third Amended and Restated Certificate of Incorporation of Cumulus Media Inc. | |
10.18 | Employment Agreement, dated July 1, 2016, by and between Cumulus Media Inc. and John Abbot. | |
10.23 | Form of Indemnification Agreement with directors and certain executive officers. | |
10.24 | Refinancing Support Agreement, dated December 6, 2016, by and among Cumulus Media Inc., Cumulus Media Holdings Inc., and certain direct and indirect subsidiaries and Supporting Noteholders | |
12.1 | Computation of Ratio of Earnings to Fixed Charges. | |
21.1 | Subsidiaries of Cumulus Media Inc. | |
23.1 | Consent of PricewaterhouseCoopers LLP. | |
31.1 | Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
CUMULUS MEDIA INC. | |||||
By: | /s/ Richard S. Denning | ||||
Name: Richard S. Denning | |||||
Title: Senior Vice President, General Counsel and Secretary |
CUMULUS MEDIA INC. | |||||
By: | /s/ John Abbot | ||||
Name: John Abbot | |||||
Title: Executive Vice President and Chief Financial Officer |
CUMULUS MEDIA INC. | |||||
By: | /s/ Mary G. Berner | ||||
Name: Mary G. Berner | |||||
Title: President and Chief Executive Officer | |||||
/s/ John Abbot |
Cumulus Media Inc. 3280 Peachtree Road, N.W. Suite 2300 Atlanta, Georgia 30305 United States of America Fax: (404) 260-6877 Attention: Richard Denning, Esq. with copies to (which shall not constitute notice to the Corporation | |
Kirkland &Ellis LLP 601 Lexington Avenue New York, NY 10022 United States of America Fax (212-446-6460) Attention: Christian O. Nagler, Esq. and Ross M. Leff, Esq. | |
CUMULUS MEDIA INC. | |||||
By: | /s/ | ||||
Name: | |||||
Title: |
INDEMNITEE: | |||||
By: | /s/ | ||||
Address: |
1. | Certain Definitions. |
2. | Transactions; Definitive Documents. |
3. | Agreements of the Supporting Noteholders. |
4. | Agreements of the Company. |
5. | Mutual Agreements. |
6. | Conditions Precedent. |
7. | Transfer of Claims; Standstill. |
8. | Termination. |
9. | Representations and Warranties of the Supporting Noteholders. |
10. | Representations and Warranties of the Company. |
11. | Good Faith Cooperation; Further Assurances. |
12. | Effectiveness. |
13. | Entire Agreement. |
14. | Waiver. |
15. | Payment of Fees and Expenses. |
16. | Counterparts. |
17. | Amendments. |
18. | Headings. |
19. | Relationship Among Parties. |
20. | Acknowledgments; Obligations Several. |
21. | Specific Performance. |
22. | Survival. |
23. | Governing Law; Chosen Forum; Waiver of Jury Trial. |
24. | Notices. |
25. | Successors and Assigns; No Third-Party Beneficiaries. |
26. | Interpretation and Rules of Construction; Severability. |
27. | Public Disclosure. |
28. | Refinancing Consent |
29. | Revolver Assignments |
30. | FCC Matters |
CUMULUS MEDIA HOLDINGS INC. and CUMULUS MEDIA INC. for itself and on behalf of each of their direct and indirect subsidiaries that is an obligor on the Notes | |||
By: | |||
Name: | |||
Title: | |||
[SUPPORTING NOTEHOLDER] | |||||
By: | |||||
Name: | |||||
Title: | |||||
Principal Amount of Notes: $__________________ | |||||
Number of Equity Securities: $__________________ Principal Amount of Term Loan: $__________________ Principal Amount of Revolver: $__________________ | |||||
Notice Address: | |||||
Fax: | |||||
Attention: |
Signed: | |||||
By: | |||||
Name: | |||||
Title: | |||||
Principal Amount of Notes: $__________________ | |||||
Number of Equity Securities: $__________________ Principal Amount of Term Loan: $__________________ Principal Amount of Revolver: $__________________ | |||||
Notice Address: | |||||
Fax: | |||||
Attention: | |||||
With a copy to: | |||||
Fax: | |||||
Attention: | |||||
• | The Board shall be comprised of 9 directors, with one of the 9 directors being the chief executive officer of the Company. |
• | Funds affiliated with or managed by Angelo, Gordon & Co. (collectively, “Angelo Gordon”) shall have the right to appoint 1 director of the Board (the “Class D Director”) as long as Angelo Gordon beneficially owns 5.5% or more of the Equity Securities of the Company. |
• | Funds affiliated with or managed by Q Investments, LP (collectively, “Q Investments”) and funds affiliated with or managed by Waddell & Reed Investment Management Company and Ivy Investment Management Company (collectively, “Waddell”) shall collectively have the right to appoint 1 director of the Board (the “Class E Director”) as long as Q Investments and Waddell collectively beneficially own 5% or more of the Equity Securities of the Company; provided that, the selection of such Class E Director by Q Investments and Waddell shall be determined by a majority of the Class E Common Stock held collectively by Q Investments and Waddell. |
• | All directors will be subject to the Company’s customary due diligence process, including its review of a completed questionnaire, a background check and interviews. Based on the foregoing, the Company may object to any nomination provided (a) it does so in good faith, and (b) such objection is based upon any of the following: (i) such proposed director was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses), (ii) such proposed director was the subject of any order, judgment, or decree not subsequently reversed, suspended or vacated of any court of competent jurisdiction, permanently or temporarily enjoining such proposed director from, or otherwise limiting, the following activities: (A) engaging in any type of business practice, or (B) engaging in any activity in connection with the purchase or sale of any security or in connection with any violation of federal or state securities laws, (iii) such proposed director was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in clause (ii)(B), or to be associated with persons engaged in such activity, (iv) such proposed director was found by a court of competent jurisdiction in a civil action or by SEC to have violated any federal or state securities law, and the judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended or vacated, or (v) such proposed director was the subject of, or a party to any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to a violation of any federal or state securities laws or regulations. In the event the Board finds the proposed director to be unsuitable based upon one or more of the foregoing clauses (i) through (v) and reasonably objects to the identified director, Angelo Gordon, Q Investments or Waddell shall be entitled to propose a different nominee to the Board and such nominee shall be subject to the review process outlined above. In addition, if such proposed director is not affiliated with any of Angelo Gordon, Q Investments, or Waddell, such director must qualify as “independent” pursuant to NASDAQ listing standards and have the relevant financial and business experience to be a director of the Company. |
1. | An account managed by an affiliate of Capital Research and Management Company which, as of the Support Effective Date, owns $805,000 in aggregate principal amount of Notes and not in excess thereof, which account is restricted or restrained by its applicable organizational documents or similar applicable agreement or contract governing its operation and affairs (including its investment) from participating in the Qualified Exchange Offer, including as a result of a prohibition on such Restricted Noteholder owning any Equity Securities. |
Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Fixed Charges: | |||||||||||||||||||
Interest expense | $ | 127,980 | $ | 130,559 | $ | 134,680 | $ | 166,110 | $ | 189,073 | |||||||||
Amortization of debt discount and debt interest costs | 9,961 | 9,541 | 9,493 | 9,919 | 10,131 | ||||||||||||||
Total fixed charges | $ | 137,941 | $ | 140,100 | $ | 144,173 | $ | 176,029 | $ | 199,204 | |||||||||
Earnings available for fixed charges: | |||||||||||||||||||
Pre-tax income (loss) from continuing operations before adjustment for income or loss from equity investees | $ | (536,874 | ) | $ | (592,334 | ) | $ | 22,023 | $ | (24,851 | ) | $ | (146,602 | ) | |||||
Add: fixed charges | 137,941 | 140,100 | 144,173 | 176,029 | 199,204 | ||||||||||||||
Less: preferred stock dividends | — | — | — | (10,676 | ) | (21,432 | ) | ||||||||||||
Total earnings available for fixed charges | $ | (398,933 | ) | $ | (452,234 | ) | $ | 166,196 | $ | 140,502 | $ | 31,170 | |||||||
Ratio of earnings to fixed charges | * | * | 1.15 | * | * |
2-L Corporation | Louisiana |
Atlanta Radio, LLC | Delaware |
Broadcast Software International | Nevada |
Catalyst Media, Inc. | Delaware |
Chicago FM Radio Assets, LLC | Delaware |
Chicago Radio Assets, LLC | Delaware |
CMI Receivables Funding LLC | Delaware |
CMP Houston-KC, LLC | Delaware |
CMP KC Corp. | Delaware |
CMP Susquehanna Corp. | Delaware |
CMP Susquehanna Radio Holdings Corp. | Delaware |
Consolidated IP Company LLC | Delaware |
Cumulus Broadcasting LLC | Nevada |
Cumulus Entertainment LLC | Delaware |
Cumulus Intermediate Holdings Inc. | Delaware |
Cumulus Licensing LLC | Nevada |
Cumulus Media Holdings Inc | Delaware |
Cumulus Network Holdings Inc. | Delaware |
Cumulus Radio Corporation DC | Nevada |
Deer Point Tower Venture, LLC | Delaware |
Detroit Radio, LLC | Delaware |
Dial Communications Global Media, LLC | Delaware |
Incentrev-Radio Half Off, LLC | Delaware |
222 JV Clear Channel | Delaware |
KLIF Broadcasting, Inc. | Nevada |
KLIF Lico, Inc. | Nevada |
KLOS-FM Radio Assets, LLC | Delaware |
KPLX Lico, Inc. | Nevada |
LA Radio, LLC | Delaware |
Minneapolis Radio Assets, LLC | Delaware |
NASH Country, LLC | Delaware |
Nashville Radio Tower Joint Venture | Delaware |
NY Radio Assets, LLC | Delaware |
POP Radio, LP | Delaware |
Radio Assets, LLC | Delaware |
Radio License Holdings LLC | Delaware |
Radio License Holding CBC, LLC | Delaware |
Radio License Holding SRC LLC | Delaware |
Radio Metroplex, Inc. | Nevada |
Radio Networks, LLC | Delaware |
San Francisco Radio Assets, LLC | Delaware |
Shoreview FM Group | Delaware |
Susquehanna Media Corp. | Delaware |
Susquehanna Pfaltzgraff Co. | Delaware |
Susquehanna Radio Corp. | Pennsylvania |
Sweetjack, LLC | Delaware |
WBAP-KSCS Assets, LLC | Delaware |
Westwood One, Inc. | Delaware |
Westwood One Radio Networks, Inc | California |
WPLJ Radio, LLC | Delaware |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 16, 2017 | By: | /s/ Mary G. Berner | |
Mary G. Berner | |||
Title: President and Chief Executive Officer |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 16, 2017 | By: | /s/ John Abbot | |
John Abbot | |||
Executive Vice President, Treasurer and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report. |
/s/ Mary G. Berner | |||
Name: | Mary G. Berner | ||
Title: | President and Chief Executive Officer | ||
/s/ John Abbot | |||
Name: | John Abbot | ||
Title: | Executive Vice President, Treasurer and Chief Financial Officer |
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Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Mar. 03, 2017 |
Jun. 30, 2016 |
|
Document Information [Line Items] | |||
Document type | 10-K | ||
Amendment flag | false | ||
Document period end date | Dec. 31, 2016 | ||
Document fiscal year focus | 2016 | ||
Document fiscal period focus | FY | ||
Trading symbol | CMLS | ||
Entity registrant name | CUMULUS MEDIA INC | ||
Entity central index key | 0001058623 | ||
Current fiscal year end date | --12-31 | ||
Entity well-known seasoned issuer | No | ||
Entity current reporting status | Yes | ||
Entity voluntary filers | No | ||
Entity filer category | Smaller Reporting Company | ||
Entity public float | $ 38.0 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 29,225,765 | ||
Class C Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 80,609 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
May 13, 2011 |
---|---|---|---|
Allowance for doubtful accounts | $ 4,691 | $ 4,923 | |
Debt issuance cost (premium) | $ 29,909 | $ 37,524 | |
Treasury stock, shares | 2,806,187 | 2,805,743 | |
Class A Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 93,750,000 | 93,750,000 | |
Common stock, shares issued | 32,031,054 | 31,987,862 | |
Common stock, shares outstanding | 29,225,765 | 29,182,118 | |
Class C Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 80,609 | 80,609 | |
Common stock, shares issued | 80,609 | 80,609 | |
Common stock, shares outstanding | 80,609 | 80,609 | |
7.75% Senior Notes | |||
Interest rate | 7.75% | 7.75% | 7.75% |
Debt issuance costs | $ 6,200 | $ 8,515 |
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement [Abstract] | |||
Stock-based compensation expense | $ 2,948 | $ 21,033 | $ 17,638 |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Description of Business Cumulus Media Inc. (and its consolidated subsidiaries, except as the context may otherwise require, “Cumulus,” “Cumulus Media,” “we,” “us,” “our,” or the “Company”) is a Delaware corporation, organized in 2002, and successor by merger to an Illinois corporation with the same name that had been organized in 1997. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reverse Stock Split On October 12, 2016, the Company effected a one-for-eight (1:8) reverse stock split (the "Reverse Stock Split"). As a result of the Reverse Stock Split, every eight shares of each class of the Company's outstanding common stock were combined into one share of the same class of common stock and the authorized shares of each class of the Company's common stock were reduced by the same ratio. No fractional shares were issued in connection with the Reverse Stock Split. The number and strike price of the Company's outstanding stock options and warrants were adjusted proportionally, as appropriate. The par value of the Company's common stock was not adjusted as a result of the Reverse Stock Split. All authorized, issued and outstanding stock and per share amounts contained within the accompanying unaudited condensed consolidated financial statements and these footnotes have been retroactively adjusted to reflect this Reverse Stock Split for all periods presented. Out of Period Adjustment In connection with the preparation of the unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2016, we recorded a correction of an immaterial misstatement that occurred in prior periods, which resulted in an increase in content costs of $3.6 million in the second quarter of 2016. The correction related to the Radio Station Group segment only and was not material to the prior year quarterly or annual results. The effect of this correction is not material to the 2016 annual financial statements. Reportable Segments During the first quarter of 2016, the Company modified its management reporting framework affecting how the Company evaluates operating performance and internally reports financial information. This modification resulted in a reorganization of the Company's reportable segments. Prior to this reorganization, the Company operated in one reportable business segment which consisted of radio broadcasting, advertising and related services. The Company now operates in two reportable segments, the Radio Station Group and Westwood One, for which there is discrete financial information available and whose operating results are reviewed by the chief operating decision maker. Historical information included in these financial statements has been revised to reflect the change to two segments, with no impact to previously disclosed consolidated results (See Note 4, "Intangible Assets and Goodwill" and Note 16, "Segment Data"). Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluated its estimates, including significant estimates related to revenue recognition, bad debts, intangible assets, income taxes, stock-based compensation, contingencies, litigation, and, if applicable, purchase price allocation. The Company based its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates. Comprehensive Income Comprehensive income (loss) includes net income (loss) and certain items that are excluded from net income (loss) and recorded as a separate component of stockholders' equity (deficit). During the years ended December 31, 2016, 2015 and 2014, the Company had no items of other comprehensive income (loss) and, therefore, comprehensive income does not differ from reported net income (loss). Cash and Cash Equivalents The Company considered all highly liquid investments with original maturities of three months or less to be cash equivalents. Accounts Receivable, Allowance for Doubtful Accounts and Concentration of Credit Risk Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determined the allowance based on several factors, including the length of time receivables are past due, trends and current economic factors. All balances are reviewed and evaluated quarterly on a consolidated basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. In the opinion of management, credit risk with respect to accounts receivable is limited due to the large number of customers and the geographic diversification of the Company’s customer base. The Company performs ongoing credit evaluations of its customers and believes that adequate allowances for any uncollectible accounts receivable are maintained. Assets Held for Sale During the year ended December 31, 2015, the Company entered into an agreement to sell certain land in the Company's Washington, DC market to a third party. The closing of the transaction is subject to various conditions and approvals, which remain pending. The identified assets have been classified as held for sale in the accompanying consolidated balance sheets at December 31, 2016 and 2015. The estimated fair value of the land and buildings to be disposed of are in excess of their carrying value. Dispositions On August 30, 2016, the Company completed the sale of certain land and buildings in Los Angeles for $110.6 million in cash. In conjunction with this sale, the Company recorded a net gain of $94.0 million, which is included in (gain) loss on sale of assets or stations in the accompanying consolidated statements of operations for the year-ended December 31, 2016. The identified assets were classified as held for sale in the accompanying December 31, 2015 consolidated balance sheet. Insurance Recoveries During the year ended December 31, 2015, the Company received $14.6 million of insurance proceeds related to a business interruption claim arising from Hurricane Katrina in 2005. The Company recorded $12.4 million in other income (expense), net and $2.2 million as an offset to corporate expenses in the consolidated statement of operations for the year ended December 31, 2015. Property and Equipment Property and equipment are stated at cost. Property and equipment acquired in business combinations accounted for under the purchase method of accounting are recorded at their estimated fair values on the date of acquisition. Equipment held under capital leases is stated at the present value of minimum future lease payments. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets. Equipment held under capital leases and leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the remaining term of the lease. Depreciation of construction in progress is not recorded until the assets are placed into service. Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Intangible Assets and Goodwill The Company’s intangible assets are comprised of broadcast licenses, certain other intangible assets and goodwill. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed in a business combination. Intangible assets and goodwill acquired in a business combination and determined to have an indefinite useful life, which include the Company’s broadcast licenses, are not amortized, but instead tested for impairment at least annually, or if a triggering event occurs. Intangible assets with definite useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In determining that the Company’s broadcast licenses qualified as indefinite lived intangibles, management considered a variety of factors including the Federal Communications Commission’s (“FCC”) historical record of renewing broadcast licenses, the cost to the Company of renewing such licenses, the relative stability and predictability of the radio industry and the relatively low level of capital investment required to maintain the physical plant of a radio station. The Company's evaluation of the recoverability of its indefinite-lived assets, which include FCC licenses and goodwill, is based on certain judgments and estimates. Future events may impact these judgments and estimates. If events or changes in circumstances were to indicate that an asset’s carrying value is not recoverable, a write-down of the asset would be recorded through a charge to operations. Investments The Company follows Accounting Standards Codification (“ASC”) Topic 325-20, Cost Method Investments (“ASC 325-20”) to account for its ownership interest in noncontrolled entities. Under ASC 325-20, equity securities that do not have readily determinable fair values (i.e., non-marketable equity securities) and are not required to be accounted for under the equity method are typically carried at cost (i.e., cost method investments). Investments of this nature are initially recorded at cost. Income is recorded for dividends received that are distributed from net accumulated earnings of the noncontrolled entity subsequent to the date of investment. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions in the cost of the investment. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred. During the year ended December 31, 2015, the Company recognized an impairment charge of $19.4 million related to the decline in the fair value of a cost-method investment. During the year ended December 31, 2014, the Company sold one of its cost method investments for $13.0 million, recognizing a gain on sale of $3.2 million, which is included in other income, net in the consolidated statement of operations. As of December 31, 2016 and 2015, there were no cost-method investments in the consolidated balance sheets. Debt Issuance Costs The costs related to the issuance of debt are capitalized and amortized to interest expense over the life of the related debt using the effective interest method. In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03. The amendments in this ASU required that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of long-term debt, consistent with debt discounts or premiums. We adopted this standard retrospectively in the first quarter of 2016. The balance sheet as of December 31, 2015 was retrospectively adjusted, which resulted in reductions to other assets of $22.4 million and long-term debt of $22.4 million. Derivative Financial Instruments The Company recognizes all derivatives on the consolidated balance sheets at fair value. Fair value changes are recorded as income for any contracts not classified as qualifying hedging instruments. Revenue Recognition Revenue is derived primarily from the sale of commercial airtime to local and national advertisers. Revenue is recognized as commercials are broadcast. Revenues presented in the financial statements are reflected on a net basis, after the deduction of advertising agency fees by the advertising agencies, usually at a rate of 15.0%, which is the industry standard. In those instances in which we function as the principal in the transaction, the revenue and associated operating costs are presented on a gross basis. In those instances where we function as an agent or sales representative, our effective commission is presented as revenue with no corresponding operating expenses. Advertising Costs Advertising costs are expensed as incurred. For the years ended December 31, 2016, 2015, and 2014, the costs incurred were $4.9 million, $3.9 million and $1.9 million, respectively. Local Marketing Agreements In certain circumstances, the Company may enter into a local marketing agreement (“LMA”) or time brokerage agreement with an FCC licensee of a radio station. In a typical LMA, the licensee of the station makes available, for a fee, airtime on its station to a party, which supplies programming to be broadcast on that airtime, and collects revenues from advertising aired during such programming. Revenues earned and fees incurred pursuant to LMAs or time brokerage agreements are recognized at their gross amounts in the accompanying consolidated statements of operations. As of December 31, 2016, the Company operated five radio stations under LMAs. At each of December 31, 2015 and 2014, the Company operated six radio stations under LMAs. The stations operated under LMAs contributed $23.2 million, $24.5 million, and $22.6 million in 2016, 2015, and 2014, respectively, to the consolidated net revenue of the Company. Stock-based Compensation Expense Stock-based compensation expense recognized under ASC Topic 718, Compensation — Share-Based Payment (“ASC 718”), for the years ended December 31, 2016, 2015 and 2014, was $2.9 million, $21.0 million, and $17.6 million, respectively. Upon adopting ASC 718 for awards with service conditions, an election was made to recognize stock-based compensation expense on a straight-line basis over the requisite service period for the entire award. For stock options with service conditions only, the Company utilized the Black-Scholes option pricing model to estimate the fair value of options issued. For restricted stock awards with service conditions, the Company utilized the intrinsic value method. For restricted stock awards with performance conditions, the Company evaluated the probability of vesting of the awards in each reporting period and adjusted compensation cost based on this assessment. The fair value is based on the use of certain assumptions regarding a number of highly complex and subjective variables. If other assumptions are used, the results could differ. Trade Transactions The Company provided commercial airtime in exchange for goods and services used principally for promotional, sales, programming and other business activities. An asset and liability is recorded at the fair value of the goods or services received. Trade revenue is recorded and the liability is relieved when commercials are broadcast and trade expense is recorded and the asset relieved when goods or services are consumed. Trade valuation is based upon management’s estimate of the fair value of the products, supplies and services received. For the years ended December 31, 2016, 2015, and 2014, amounts reflected under trade transactions were: (1) trade revenues of $37.7 million, $39.2 million and $34.9 million, respectively; and (2) trade expenses of $36.2 million, $40.4 million and $36.8 million, respectively. Income Taxes The Company used the liability method of accounting for deferred income taxes. Deferred income taxes are recognized for all temporary differences between the tax and financial reporting bases of the Company’s assets and liabilities based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recorded for a net deferred tax asset balance when it is more likely than not that the benefits of the tax asset will not be realized. The Company continues to assess the need for its deferred tax asset valuation allowance in the jurisdictions in which it operates. Any adjustment to the deferred tax asset valuation allowance is recorded in the income statement of the period that the adjustment is determined to be required. See Note 13, “Income Taxes” for further discussion. Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding. The Company allocated undistributed net income (loss) from continuing operations between each class of common stock on an equal basis after any allocations for preferred stock dividends in accordance with the terms of the Company’s third amended and restated certificate of incorporation, as amended (the “Third Amended and Restated Charter”). Non-vested restricted shares of Class A common stock and Company Warrants (defined below) are considered participating securities for purposes of calculating basic weighted average common shares outstanding in periods in which the Company recorded net income. Diluted earnings per share is computed in the same manner as basic earnings per share after assuming the issuance of common stock for all potentially dilutive equivalent shares, which included stock options and certain other outstanding warrants to purchase common stock. Antidilutive instruments are not considered in this calculation. Under the two-class method, net income is allocated to common stock and participating securities to the extent that each security may share in earnings, as if all of the earnings for the period had been distributed. Earnings are allocated to each participating security and common share equally, after deducting dividends declared or accreted on preferred stock. Fair Values of Financial Instruments The carrying values of cash equivalents, restricted cash, accounts receivables, accounts payable, trade payables and receivables and accrued expenses approximate fair value due to the short term to maturity of these instruments (See Note 7, "Fair Value Measurements"). Accounting for National Advertising Agency Contract The Company has engaged Katz Media Group, Inc. (“Katz”) as its national advertising sales agent. The Company’s contract with Katz has several economic elements that principally reduce the overall expected commission rate below the stated base rate. The Company estimates the overall expected commission rate over the entire contract period and applies that rate to commissionable revenue throughout the contract period with the goal of estimating and recording a stable commission rate over the life of the contract. The potential commission adjustments are estimated and combined in the consolidated balance sheets with the contractual termination liability. That liability is accreted to commission expense to effectuate the stable commission rate over the term of the Katz contract. Over the term of the contract with Katz, management updates its assessment of the effective commission expense attributable to national sales in an effort to record a consistent commission rate in each period. The Company’s accounting for and calculation of commission expense to be realized over the life of the Katz contract requires management to make estimates and judgments that affect reported amounts of commission expense in each period. Actual results in any period may differ from management’s estimates. Variable Interest Entities The Company accounted for entities qualifying as variable interest entities (“VIEs”) in accordance with ASC Topic 810, Consolidation (“ASC 810”). VIEs are required to be consolidated by the primary beneficiary. The primary beneficiary is the entity that holds the majority of the beneficial interests in the VIE. A VIE is an entity for which the primary beneficiary’s interest in the entity can change with changes in factors other than the amount of investment in the entity. From time to time, the Company enters into LMAs in connection with pending acquisitions or dispositions of radio stations and the requirements of ASC 810 may apply, depending on the facts and circumstances related to each transaction. Adoption of New Accounting Standards ASU 2015-03. In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03. The amendments in this ASU require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of long-term debt, consistent with debt discounts or premiums. We adopted this standard retrospectively in the first quarter of 2016. The balance sheet as of December 31, 2015 was retrospectively adjusted, which resulted in reductions to other assets of $22.4 million and long-term debt of $22.4 million. ASU 2014-15. In August 2014, the FASB issued ASU 2014-15. The amendments in this ASU provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. These amendments should standardize the timing and content of footnote disclosures. The Company adopted this ASU effective December 31, 2016. The adoption of this guidance did not have an impact on the consolidated financial statements. Recent Accounting Standards Updates ASU 2014-09 and related updates. In May 2014, the FASB issued ASU 2014-09. The amended guidance under this ASU outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the single comprehensive revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In August 2015, the FASB issued ASU 2015-14, which delayed the effective date of ASU 2014-09 by one year. Transition to the new guidance may be done using either a full or modified retrospective method. ASU 2014-09, as amended, is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. In March 2016, the FASB issued ASU 2016-08 which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10 which amends the revenue recognition guidance on accounting for licenses of intellectual property and identifying performance obligations as well as clarifies when a promised good or service is separately identifiable. In May 2016, the FASB issued ASU 2016-12 which provides clarifying guidance in certain narrow areas such as an assessment of collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition as well as adds some practical expedients. In December 2016, the FASB issued ASU 2016-20 which provides technical corrections and improvements to Topic 606. The amendments in ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 may be applied either retrospectively to each prior period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and 2016-20 at the date of initial application. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, will adopt the new standard effective January 1, 2018. The Company is currently evaluating the adoption approach. The Company's final determination will depend on a number of factors, such as the significance of the impact of the new standard on our financial results, system readiness, and our ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements and the Company's ability to maintain two sets of financials under current and new standards if we were to adopt the full retrospective approach. The Company is in the initial stages of our evaluation of the impact of the new standard on our accounting policies, processes, and system requirements. The Company has assigned internal resources to the evaluation to enable timely and accurate reporting under the new standard. The Company continues to assess the potential impacts of the new standard, including the areas described above, and anticipate this standard could have a material impact on our consolidated financial statements, we do not know or cannot reasonably estimate quantitative information related to the impact of the new standard on our financial statements at this time. ASU 2016-01. In January 2016, the FASB issued ASU 2016-01. The amendments in this ASU enhance the reporting model for financial instruments including aspects of recognition, measurement, presentation and disclosure of financial instruments. The new guidance revises the accounting requirements related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The update also changes certain disclosure requirements associated with the fair value of financial instruments. These changes will require an entity to measure, at fair value, investments in equity securities and other ownership interests in an entity - including investments in partnerships, unincorporated joint ventures and limited liability companies that do not result in consolidation and are not accounted for under the equity method - and recognize the changes in fair value within net income. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is not permitted, except for certain amendments within the ASU. The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements. ASU 2016-02. In February 2016, the FASB issued ASU 2016-02. The amendments in this ASU provide guidance for accounting for leases. This update requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This ASU will be effective for fiscal years beginning after December 15, 2018, and interim periods thereafter. A modified retrospective transition method is required, with the option to elect a package of practical expedients. Early adoption is permitted. The Company is currently assessing the expected impact that this ASU will have on the consolidated financial statements. ASU 2016-09. In March 2016, the FASB issued ASU 2016-09. The amendments in this ASU provide guidance for employee share-based payment accounting. This update removes the requirement that reporting entities present tax benefits as excess cash flows from financing activities and cash flows from operating activities. As a result of this amendment, cash flows related to excess tax benefits will be classified only in operating activities. This ASU will be effective for fiscal years beginning after December 15, 2016, and interim periods thereafter. The Company does not expect that this ASU will have a material impact on the consolidated financial statements. ASU 2016-15. In August 2016, the FASB issued ASU 2016-15. The amendments in the ASU provide guidance for several new and/or revised disclosures pertaining to the classification of certain cash receipts and cash payments on the statement of cash flows, including contingent consideration payments made after a business acquisition. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2016-16. In October 2016, the FASB issued ASU 2016-16. The amendments in the ASU provide guidance for the accounting for the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs between entities in different tax jurisdictions. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2016-18. In November 2016, the FASB issued ASU 2016-18. The amendments in the ASU provide guidance for the accounting for the disclosure of restricted cash on the Statement of Cash Flows. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2017-01. In January 2017, the FASB issued final guidance that revises the definition of a business. The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, consolidation). According to feedback received by the FASB, application of the current guidance is commonly thought to be too complex and results in too many transactions qualifying as business combinations. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2017-04. In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any impairment tests performed after January 1, 2017. The Company intends to early adopt this ASU effective January 1, 2017. As this standard is prospective in nature, the impact to our financial statements by not performing Step 2 to measure the amount of any potential goodwill impairment will depend on various factors. However, the elimination of Step 2 will reduce the complexity and cost of subsequent measurements of goodwill. |
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Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash As of both years, December 31, 2016 and 2015, the Company’s balance sheets included approximately $8.0 million in restricted cash of which $6.5 million and $7.4 million, respectively, relating to collateralizing standby letters of credit pertaining to certain leases and insurance policies. In addition, $1.5 million and $0.6 million, respectively, related to securing the maximum exposure generated by automated clearinghouse transactions in the Company's operating bank accounts and as dictated by the Company's banks' internal policies with respect to cash. |
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Property and Equipment | Property and Equipment Property and equipment consisted of the following as of December 31, 2016 and 2015 (dollars in thousands):
Depreciation expense for the years ended December 31, 2016, 2015 and 2014 was $31.1 million, $33.0 million and $35.3 million, respectively. |
Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following tables present goodwill balances and accumulated impairment losses on a segment and consolidated basis as of December 31, 2015 and December 31, 2016 (dollars in thousands): Radio Station Group
Westwood One
Consolidated
The following table presents the changes in intangible assets, other than goodwill, on a consolidated basis during the period December 31, 2015 to December 31, 2016, and balances as of such dates (dollars in thousands):
The Company's definite-lived intangible assets primarily consist of broadcast advertising and affiliate relationships. Total amortization expense related to the Company’s definite-lived intangible assets was $56.2 million, $69.1 million and $80.0 million for the years ended December 31, 2016, 2015, and 2014, respectively. As of December 31, 2016, estimated future amortization expense related to the Company's definite-lived intangible assets was as follows (dollars in thousands):
The Company performs its annual impairment testing of FCC licenses and goodwill as of December 31 and on an interim basis if events or circumstances indicate that FCC licenses or goodwill may be impaired. The Company reviews the carrying value of its definite-lived intangible assets for recoverability prior to its annual impairment test of goodwill and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Impairment Test - Definite-Lived Intangibles The Company tested definite-lived intangible assets for recoverability by comparing the carrying value of an asset group to its undiscounted cash flows. As of December 31, 2016, the Company considered the lower than expected revenue and profitability levels as business indicators of impairment for its definite-lived intangible assets. Based on the results of the recoverability test, however, the Company determined that the future undiscounted cash flows expected to result from the continued use of the assets and their eventual disposition continued to exceed the carrying value of the applicable asset groups and were therefore recoverable. The Company did not recognize any impairment charges for its definite-lived intangible assets in 2016 as a result of this analysis. During the second quarter of 2016, the Company recorded an impairment charge to its definite-lived intangible assets of $1.8 million at the Westwood One segment for all customer lists and trademark definite-lived intangible assets related to the print publication of NASH Country Weekly as the Company re-positioned the print publication to a digital only medium. There were no similar impairments in 2015. Annual Impairment Test - Goodwill As described in Note 1, "Description of Business, Basis of Presentation and Summary of Significant Accounting Policies" and Note 16 "Segment Data," during the first quarter of 2016 the Company modified its management reporting framework. This modification resulted in a reorganization of the Company's reportable segments and reporting units. Prior to this reorganization, the Company had three reporting units for purposes of goodwill allocation. The Company's top 50 Nielsen Audio rated markets and Westwood One comprised one reporting unit, the second reporting unit consisted of all of the Company's other radio markets while the third reporting unit, in which there was no goodwill, consisted of all non-radio lines of business. After the modification, all of the Company's radio markets comprise one reporting unit ("Reporting Unit 1" or the "Radio Station Group"), Westwood One comprises the second reporting unit ("Reporting Unit 2" or "Westwood One") and the third reporting unit, in which there is no goodwill, continues to consist of all of the Company's non-radio lines of business ("Reporting Unit 3"). As part of the reorganization, the Company's reporting units more closely align with its reportable segments. The Company allocated goodwill to the new reporting unit structure based upon a relative fair value approach. The Company determined that goodwill was not impaired before or immediately after the allocation. For the Company's annual goodwill impairment test, we performed the Step 1 goodwill test (the “Step 1 test”) and compared the fair value of each reporting unit to the carrying value of its net assets as of December 31, 2016 as follows: Step 1 Goodwill Test In performing our annual impairment testing of goodwill, fair value was calculated using a discounted cash flow analysis, which is an income approach. The discounted cash flow analysis requires the projection of future cash flows and the discounting of these cash flows to their present value equivalent via a discount rate. We used a five-year projection period to derive operating cash flow projections. We made certain assumptions regarding future revenue growth based on industry market data and historical and expected performance. We then projected future operating expenses based primarily on historical financial performance in order to derive operating profits, which we combined with expected working capital additions and capital expenditures to determine operating cash flows. Our projections were based on then-current market and economic conditions and our historical knowledge of each of the relevant the reporting units. During the 2016 year, based on interim financial performance, we determined that no indicators were present which would suggest the fair value of the reporting units may have declined below the carrying value. However, during the annual impairment test and as part of our 2017 budgeting process, we lowered our forecasted revenue and profitability levels for 2017 and future periods. The material assumptions utilized in these analyses, for both reporting units that have goodwill, included overall future market revenue growth rates for the residual year of 1.1% and a weighted average cost of capital of 9.3%. The residual year growth rate is estimated based on a perpetual nominal growth rate, which is based on long-term industry projections obtained from third party sources. The weighted average cost of capital was determined based on (i) the cost of equity, which includes estimates of the risk-free return, stock risk premiums and industry beta; (ii) the cost of debt, which includes estimates for corporate borrowing rates and (iii) estimated average percentages of equity and debt in capital structures. The table below presents the percentages by which the fair value was above the carrying value of the Company's reporting units under the Step 1 test as of December 31, 2016 (dollars in thousands).
The Company's analysis determined that, based on its Step 1 goodwill test, the fair value of Reporting Unit 1 was below its carrying value at December 31, 2016, therefore a Step 2 test was performed. For Reporting Unit 2, no impairment indicator existed in Step 1, therefore the Company determined that a Step 2 test was not required and goodwill was appropriately stated as of December 31, 2016. Step 2 Goodwill Test As required by the Step 2 test, the Company prepared an allocation of the fair value of Reporting Unit 1 which was identified in the Step 1 test as containing indications of impairment. The allocation of fair value in the Step 2 test showed that the fair value of the individual assets of Reporting Unit 1 was above the fair value of Reporting Unit 1 calculated in the Step 1 test. As a result, the Company recorded a non-cash impairment charge of $568.1 million, reducing the goodwill in Reporting Unit 1 to $0.0 million at December 31, 2016. During the year ended December 31, 2015, the Company recorded a non-cash impairment charge of $549.7 million as a result of an interim impairment test of goodwill. If actual results or events underlying the material assumptions are less favorable than those projected by us or if a triggering event occurs or circumstances change that would more likely than not reduce the fair value of our goodwill below the amounts reflected in the balance sheet, we may be required to recognize impairment charges in future periods. Annual Impairment Test - FCC Licenses As part of its annual impairment testing of indefinite-lived intangibles, in addition to testing goodwill for impairment, the Company also tests its FCC licenses for impairment during the fourth quarter of each year and on an interim basis if events or circumstances indicate that the asset may be impaired. As part of the overall planning associated with the test, the Company determined that its geographic markets are the appropriate unit of accounting for FCC license impairment testing and therefore the Company has combined its FCC licenses within each geographic market cluster into a single unit of accounting for impairment testing purposes. For the impairment test, we utilized the income approach, specifically the Greenfield Method. This approach values a license by calculating the value of a hypothetical start-up company that initially has no assets except the asset to be valued (the license). The value of the asset under consideration (the license) can be considered as equal to the value of this hypothetical start-up company. In completing the appraisals, we conducted a thorough review of all aspects of the assets being valued. The estimated fair values of our FCC licenses represent the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between the Company and willing market participants at the measurement date. The estimated fair value also assumes the highest and best use of the asset by market participants, considering a use of the asset that is physically possible, legally permissible and financially feasible. A basic assumption in our valuation of these FCC licenses was that these radio stations were new radio stations, signing on the air as of the date of the valuation. We assumed the competitive situation that existed in those markets as of that date, except that these stations were just beginning operations. In estimating the value of the licenses, we began with market revenue projections. Next, we estimated the percentage of the market’s total revenue, or market share, that market participants could reasonably expect an average start-up station to attain, as well as the duration (in years) required to reach the average market share. The estimated average market share was computed based on market share data, by type (i.e., AM and FM). After market revenue and market shares have been estimated, operating expenses, including depreciation based on assumed investments in fixed assets and future capital expenditures of a start-up station or operation are similarly estimated based on industry-average cost data. Appropriate estimated income taxes are then subtracted, estimated depreciation added back, estimated capital expenditures subtracted, and estimated working capital adjustments are made to calculate estimated free cash flow during the build-up period until a steady state or mature “normalized” operation is achieved. The analysis included overall future market revenue growth rates for the residual year of 1.1% and a weighted average cost of capital of 9.3%. The residual year growth rate is estimated based on a perpetual nominal growth rate, which is based on long-term industry projections obtained from third party sources. The weighted average cost of capital was based on (i) the cost of equity, which includes estimates of the risk-free return, stock risk premiums and industry beta; (ii) the cost of debt, which includes estimates for corporate borrowing rates; and (iii) estimated average percentages of equity and debt in other radio broadcasters capital structures. In order to estimate what listening audience share could be expected to be achieved for each station by market, we analyzed the average local commercial share garnered by similar AM and FM stations competing in those radio markets. We may make adjustments to the listening share and revenue share based on a station's signal coverage within the market and the surrounding area population as compared to the other stations in the market. Based on our knowledge of the industry and familiarity with similar markets, we determined that approximately three years would be required for the stations to reach maturity. We also incorporated the following additional assumptions into the discounted cash flow valuation model:
As a result of the impairment test of our FCC licenses, conducted as of December 31, 2016, we recorded a non-cash impairment charge of $35.0 million. |
Accounts Payable and Accrued Expenses |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following as of December 31, 2016 and 2015 (dollars in thousands):
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Long-Term Debt |
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Long-Term Debt | Long-Term Debt The Company’s long-term debt consisted of the following at December 31, 2016 and 2015 (dollars in thousands):
A summary of the future maturities of long-term debt follows, exclusive of the discount and issuance costs of debt (dollars in thousands):
Amended and Restated Credit Agreement On December 23, 2013, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”), among the Company, Cumulus Media Holdings Inc., a direct wholly-owned subsidiary of the Company (“Cumulus Holdings”), as borrower, and certain lenders and agents. The Credit Agreement consists of a $2.025 billion term loan (the “Term Loan”) maturing in December 2020 and a $200.0 million revolving credit facility (the “Revolving Credit Facility”) maturing in December 2018. Under the Revolving Credit Facility, up to $30.0 million of availability may be drawn in the form of letters of credit. Notwithstanding the stated maturity date of the Term Loan, if 91 days prior to the stated maturity date of the 7.75% Senior Notes (the "Springing Maturity Date") the aggregate principal amount of 7.75% Senior Notes outstanding exceeds $200.0 million, the Term Loan maturity date shall be accelerated to the Springing Maturity Date. Term Loan borrowings and borrowings under the Revolving Credit Facility bear interest, at the option of Cumulus Holdings, based on the Base Rate (as defined below) or the London Interbank Offered Rate (“LIBOR”), plus 3.25% on LIBOR-based borrowings and 2.25% on Base Rate-based borrowings. LIBOR-based borrowings are subject to a LIBOR floor of 1.0% under the Term Loan. Base Rate-based borrowings are subject to a Base Rate floor of 2.0% under the Term Loan. Base Rate is defined, for any day, as the rate per annum equal to the highest of (i) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 1/2 of 1.0%, (ii) the prime commercial lending rate of JPMorgan Chase Bank, N.A., as established from time to time, and (iii) 30 day LIBOR plus 1.0%. Amounts outstanding under the Term Loan amortize at a rate of 1.0% per annum of the original principal amount of the Term Loan, payable quarterly, with the balance payable on the maturity date. The Company's 7.75% Senior Notes (defined below) mature on May 1, 2019. At December 31, 2016, the Term Loan bore interest at 4.25% per annum. The representations, covenants and events of default in the Credit Agreement are customary for financing transactions of this nature. Events of default in the Credit Agreement include, among others: (a) the failure to pay when due the obligations owing thereunder; (b) the failure to comply with (and not timely remedy, if applicable) certain covenants; (c) certain defaults and accelerations under other indebtedness; (d) the occurrence of bankruptcy or insolvency events; (e) certain judgments against the Company or any of its restricted subsidiaries; (f) the loss, revocation or suspension of, or any material impairment in the ability to use one or more of, any material FCC licenses; (g) any representation or warranty made, or report, certificate or financial statement delivered to the lenders subsequently proven to have been incorrect in any material respect; and (h) the occurrence of a Change in Control (as defined in the Credit Agreement). Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Credit Agreement and the ancillary loan documents as a secured party. In the event amounts are outstanding under the Revolving Credit Facility or any letters of credit are outstanding that have not been collateralized by cash as of the end of each quarter, the Credit Agreement requires compliance with a consolidated first lien leverage ratio covenant. The required ratio at December 31, 2016 and 2015 was 5.00 to 1 and 5.50 to 1, respectively. The ratio periodically decreases until it reaches to 4.0 to 1 on March 31, 2018. As the Company currently has no borrowings outstanding under the Revolving Credit Facility, the Company is not required to comply with this ratio. However, as of December 31, 2016, the Company's actual leverage ratio was in excess of that ratio. Certain mandatory prepayments on the Term Loan are required upon the occurrence of specified events, including upon the incurrence of certain additional indebtedness, upon the sale of certain assets and upon the occurrence of certain condemnation or casualty events, and from excess cash flow. The Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ obligations under the Credit Agreement are collateralized by a first priority lien on substantially all of the Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ assets (excluding the Company’s accounts receivable collateralizing the Company's revolving accounts receivable securitization facility (the “Securitization Facility”) with Wells Fargo Capital Finance ("Wells Fargo") as described below) in which a security interest may lawfully be granted, including, without limitation, intellectual property and substantially all of the capital stock of the Company’s direct and indirect domestic wholly-owned subsidiaries and 66% of the capital stock of any future first-tier foreign subsidiaries. In addition, Cumulus Holdings’ obligations under the Credit Agreement are guaranteed by the Company and substantially all of its restricted subsidiaries, other than Cumulus Holdings. In December 2016, we completed a discounted prepayment of $28.7 million of face value of the Term Loan for $20.0 million, a discount to par value of 30%. The terms of the Credit Agreement remained unchanged. As a result of the prepayment, we recognized a gain, net of transaction costs, of $8.5 million for the year ended December 31, 2016. At December 31, 2016, after giving effect to the prepayment, the Company had $1.810 billion outstanding under the Term Loan and no amounts outstanding under the Revolving Credit Facility. 7.75% Senior Notes On May 13, 2011, the Company issued $610.0 million aggregate principal amount of 7.75% Senior Notes due 2019 (the “7.75% Senior Notes”). Proceeds from the sale of the 7.75% Senior Notes were used to, among other things, repay the $575.8 million outstanding under the term loan facility under the Company's prior credit agreement. On September 16, 2011, the Company and Cumulus Holdings entered into a supplemental indenture with the trustee under the indenture governing the 7.75% Senior Notes which provided for, among other things, the (i) assumption by Cumulus Holdings of all obligations of the Company; (ii) substitution of Cumulus Holdings for the Company as issuer; (iii) release of the Company from all obligations as original issuer; and (iv) Company’s guarantee of all of Cumulus Holdings’ obligations, in each case under the indenture and the 7.75% Senior Notes. Interest on the 7.75% Senior Notes is payable on May 1 and November 1 of each year. The 7.75% Senior Notes mature on May 1, 2019. Cumulus Holdings, as issuer of the 7.75% Senior Notes, may redeem all or part of the 7.75% Senior Notes at any time at a price equal to 100% of the principal amount, plus a “make-whole” premium. If Cumulus Holdings sells certain assets or experiences specific kinds of changes in control, it will be required to make an offer to purchase the 7.75% Senior Notes. The indenture governing the 7.75% Senior Notes contains representations, covenants and events of default customary for financing transactions of this nature. At December 31, 2016, the Company was in compliance with all required covenants under the indenture governing the 7.75% Senior Notes. In connection with the substitution of Cumulus Holdings as the issuer of the 7.75% Senior Notes, the Company also guaranteed the 7.75% Senior Notes. In addition, each existing and future domestic restricted subsidiary that guarantees the Company’s indebtedness, Cumulus Holdings’ indebtedness or indebtedness of the Company’s subsidiary guarantors (other than the Company’s subsidiaries that hold the licenses for the Company’s radio stations) guarantees, and will guarantee, the 7.75% Senior Notes. The 7.75% Senior Notes are senior unsecured obligations of Cumulus Holdings and rank equally in right of payment to all existing and future senior unsecured debt of Cumulus Holdings and senior in right of payment to all future subordinated debt of Cumulus Holdings. The 7.75% Senior Notes guarantees are the Company’s and the other guarantors’ senior unsecured obligations and rank equally in right of payment to all of the Company’s and the other guarantors’ existing and future senior debt and senior in right of payment to all of the Company’s and the other guarantors’ future subordinated debt. The 7.75% Senior Notes and the guarantees are effectively subordinated to any of Cumulus Holdings’, the Company’s or the guarantors’ existing and future secured debt to the extent of the value of the assets securing such debt. In addition, the 7.75% Senior Notes and the guarantees are structurally subordinated to all indebtedness and other liabilities, including preferred stock, of the Company’s non-guarantor subsidiaries, including all of the liabilities of the Company’s and the guarantors’ foreign subsidiaries and the Company’s subsidiaries that hold the licenses for the Company’s radio stations. Accounts Receivable Securitization Facility On December 6, 2013, the Company entered into a 5-year, $50.0 million Securitization Facility with Wells Fargo (as successor to General Electric Capital Corporation), as a lender, as swingline lender and as administrative agent (together with any other lenders party thereto from time to time, the “Lenders”). In connection with the entry into the Securitization Facility, pursuant to a Receivables Sale and Servicing Agreement, dated as of December 6, 2013 (the “Sale Agreement”), certain subsidiaries of the Company (collectively, the “Originators”) sell and/or contribute their existing and future accounts receivable (representing all of the Company’s accounts receivable) to a special purpose entity and wholly owned subsidiary of the Company (the “SPV”). The SPV may thereafter make borrowings from the Lenders, which borrowings will be secured by those receivables, pursuant to an Amended and Restated Receivables Funding and Administration Agreement, dated as of March 15, 2017 (the “Funding Agreement”). Cumulus Holdings services the accounts receivable on behalf of the SPV. Advances available under the Funding Agreement at any time are based on advance rates relating to the value of the eligible receivables held by the SPV at that time. The Securitization Facility matures on December 6, 2018, subject to earlier termination at the election of the SPV. Advances bear interest based on either LIBOR plus 2.50% or the Index Rate (as defined in the Funding Agreement) plus 1.00%. The SPV is also required to pay a monthly fee based on any unused portion of the Securitization Facility. The Securitization Facility contains representations and warranties, affirmative and negative covenants, and events of default that are customary for financings of this type. At December 31, 2016 and 2015, there were no amounts outstanding under the Securitization Facility. Amortization of Debt Discount and Debt Issuance Costs For each of the years ended December 31, 2016 and 2015, the Company recorded an aggregate of $10.0 million and $9.5 million, respectively, of amortization of debt discount and debt issuance costs related to its Term Loan and 7.75% Senior Notes. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The three levels of the fair value hierarchy to be applied when determining fair value of financial instruments 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; and 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. The reconciliation below contains the components of the change in fair value associated with the equity interest in Pulser Media Inc. ("Pulser") for the year ended December 31, 2015 (dollars in thousands):
The following table shows the gross amount and fair value of the Company’s Term Loan and 7.75% Senior Notes (dollars in thousands):
As of December 31, 2016, the Company used the closing trading prices as of the balance sheet date of 67.8% to calculate the fair value of the Term Loan, and 40.9% to calculate the fair value of the 7.75% Senior Notes. As of December 31, 2015, the Company used the closing trading prices as of the balance sheet date of 74.0% to calculate the fair value of the Term Loan, and 33.5% to calculate the fair value of the 7.75% Senior Notes. During the year ended December 31, 2016, the Company recorded impairment charges related to goodwill and FCC licenses of $568.1 million and $35.0 million, respectively. During the year ended December 31, 2015, the Company recorded impairment charges related to goodwill and FCC licenses of $549.7 million and $15.9 million, respectively. The fair value of goodwill and FCC licenses were measured using a discounted cash flow analysis and the Greenfield Method, respectively, both of which are Level 3 measurements. |
Stockholders' Equity |
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Equity [Abstract] | |||||||||
Stockholders' Equity | Stockholders’ Equity For information on the Company's October 12, 2016, Reverse Stock Split and the resulting adjustments to authorized, issued and outstanding common stock, warrants and options, see Note 1, "Description of Business, Basis of Presentation and Summary of Significant Accounting Policies: Reverse Stock Split." The Company is authorized to issue an aggregate of 268,830,609 shares of stock divided into four classes consisting of: (i) 93,750,000 shares designated as Class A common stock; (ii) 75,000,000 shares designated as Class B common stock; (iii) 80,609 shares designated as Class C common stock, and (iv) 100,000,000 shares of preferred stock, each with a par value of $0.01 per share. Common Stock Except with regard to voting and conversion rights, shares of Class A, Class B and Class C common stock are identical in all respects. The preferences, qualifications, limitations, restrictions, and the special or relative rights in respect of the common stock and the various classes of common stock are as follows:
The holders of all classes of common stock are entitled to share ratably in any dividends that may be declared by the board of directors of the Company, to date, no dividends have been declared by the board of directors. 2009 Warrants In June 2009, in connection with the execution of an amendment to the Company's then-existing credit agreement, the Company issued warrants to the lenders thereunder that allow them to acquire up to 156,250 shares of Class A common stock at an exercise price of $1.17 per share (the “2009 Warrants”). The 2009 Warrants expire on June 29, 2019. The number of shares of Class A common stock issuable upon exercise of the 2009 Warrants is subject to adjustment in certain circumstances, including upon the payment of a dividend in shares of Class A common stock. None of the 2009 warrants were converted during the year ended December 31, 2016, and as of December 31, 2016, 40,057 of the 2009 Warrants remained outstanding. Equity Held in Reserve Pursuant to the agreement governing the Company's acquisition of Citadel Broadcasting Company ("Citadel") on September 16, 2011 (the "Citadel Merger"), warrants to purchase 300,000 shares of the Company’s common stock were reserved for potential future issuance in connection with the settlement of certain remaining allowed, disputed or not reconciled claims related to Citadel's bankruptcy. As part of the June 2014 completion of proceedings related to Citadel's bankruptcy, the 300,000 shares were issued from treasury stock for $25.0 million. The equity held in reserve was included in additional paid-in-capital on the accompanying consolidated statement of stockholders' equity at December 31, 2014. Company Warrants As a component of the Citadel Merger and the related financing transactions, the Company issued warrants to purchase an aggregate of 9.0 million shares of Class A common stock (the "Company Warrants") under a warrant agreement dated September 16, 2011 (the "Warrant Agreement"). The Company Warrants are exercisable at any time prior to June 3, 2030, at an exercise price of $0.01 per share with each Company Warrant providing the right to purchase one share. The number of shares for which the Company Warrants are exercisable is not subject to any anti-dilution protection, other than standard adjustments in the case of stock splits, dividends and certain other similar events. Pursuant to the terms and conditions of the Warrant Agreement, upon the request of a holder, the Company has the discretion to issue, upon exercise of the Company Warrants, shares of Class B common stock in lieu of an equal number of shares of Class A common stock and, upon request of a holder and at the Company’s discretion, the Company has the right to exchange such warrants to purchase an equivalent number of shares of Class B common stock for outstanding warrants to purchase shares of Class A common stock. Conversion of the Company Warrants is subject to compliance with applicable FCC regulations, and the Company Warrants are exercisable provided that ownership of the Company’s securities by the holder does not cause the Company to violate applicable FCC rules and regulations relating to foreign ownership of broadcasting licenses. Holders of Company Warrants are entitled to participate ratably in any distributions on the Company’s common stock on an as-exercised basis. No distribution will be made to holders of Company Warrants or common stock if (i) an FCC ruling, regulation or policy prohibits such distribution to holders of Company 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 holder of Company Warrants to be deemed to hold an attributable interest in the Company. Company Warrants to purchase 43,192 shares of Class A common stock were exercised during the year ended December 31, 2016. As of December 31, 2016, 31,955 Company Warrants remained outstanding. Crestview Warrants Also on September 16, 2011, but pursuant to a separate warrant agreement, the Company issued warrants to purchase 1.0 million shares of Class A common stock with an exercise price, as adjusted to date, of $34.56 per share (the "Crestview Warrants"). The Crestview Warrants are exercisable until September 16, 2021, and the per share exercise price is subject to standard weighted average adjustments in the event that the Company issues additional shares of common stock or common stock derivatives for less than the fair market value per share, as defined in the Crestview Warrants, as of the date of such issuance. In addition, the number of shares of Class A common stock issuable upon exercise of the Crestview Warrants, and the exercise price of the Crestview Warrants, are subject to adjustment in the case of stock splits, dividends and certain other similar events. As of December 31, 2016, all 1.0 million Crestview Warrants remained outstanding. |
Stock-Based Compensation Expense |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company used the Black-Scholes option pricing model to estimate the fair value on the date of grant of stock options issued. The determination of the fair value of stock options is affected by the Company’s stock price, historical stock price volatility over the expected term of the awards, risk-free interest rates and expected dividends. With respect to restricted stock awards, the Company recognized compensation expense over the vesting period equal to the grant date fair value of the shares awarded. To the extent non-vested restricted stock awards include performance or market vesting conditions, management uses the requisite service period to recognize the cost associated with the award. There were no changes to the Black-Scholes calculations or assumptions during the year. Generally, the Company’s grants of stock options vest over four years and have a maximum contractual term of ten years. The Company estimated the volatility of its common stock by using a weighted average of historical stock price volatility over the expected term of the options. The Company based the risk-free interest rate that it used in its option pricing model on United States Treasury issues with terms similar to the expected term of the options. The Company does not anticipate paying any cash dividends on the class of stock subject to granted stock options in the foreseeable future and therefore used an expected dividend yield of zero in the option pricing model. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from estimates. Stock-based compensation expense is recorded only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards. On May 22, 2014, the Company granted 11,664 shares of time-vesting restricted Class A common stock, with an aggregate grant date fair value of $0.6 million, to the non-employee directors of the Company with a cliff vesting term of one year. On May 14, 2015, the Company granted 30,365 shares of time-vesting restricted Class A common stock, with an aggregate grant date fair value of $0.6 million, to the non-employee directors of the Company with a cliff vesting term of one year. During 2015, the Company granted 0.6 million stock options with an aggregate grant date fair value of $2.2 million. The options range in exercise price from $3.84 to $34.72 per share, and provide for vesting on each of the first four anniversaries of the date of grant, with 30% of each award vesting on each of the first two anniversaries thereof, and 20% of each award vesting on each of the next two anniversaries thereof. During 2016, the Company granted 0.4 million stock options with an aggregate grant date fair value of $0.6 million. The options range in exercise price from $1.34 to $24.00 per share, and provide for vesting on each of the first four anniversaries of the date of grant, with 30% of each award vesting on each of the first two anniversaries thereof, and 20% of each award vesting on each of the next two anniversaries thereof. The total fair value of restricted stock awards that vested during the years ended December 31, 2016 and 2015 was $0.03 million and $0.6 million, respectively. In connection with the September 2015 announced departures from the Company of its then-President and CEO and Executive Vice President of Content and Programming, the Company recorded accelerated stock compensation costs of $8.7 million for the year ended December 31, 2015. These costs are included in corporate expenses and additional paid-in capital in the accompanying consolidated financial statements. For the years ended December 31, 2016, 2015 and 2014, the Company recognized approximately $2.9 million, $21.0 million and $17.6 million in non-cash stock-based compensation expense, respectively, related to equity awards. The associated tax benefits related to these non-cash stock-based compensation awards for the years ended December 31, 2016, 2015 and 2014 were $0.2 million, $8.4 million and $7.1 million, respectively. As of December 31, 2016, unrecognized stock-based compensation expense of approximately $2.8 million related to equity awards is expected to be recognized over a weighted average remaining life of 1.40 years. Unrecognized stock-based compensation expense for equity awards will continue to be adjusted for future changes in estimated forfeitures. As of December 31, 2016, the total number of shares of common stock that remain authorized, reserved and available for issuance under any of the Company’s equity incentive plans was approximately 30,000, not including shares underlying outstanding awards. The Company is only authorized to make additional award grants under the 2011 Equity Incentive Plan. There were no stock options exercised during the years ended December 31, 2016 or December 31, 2015. The following tables summarize the Company’s equity award activity for the year ended December 31, 2016:
2011 Equity Incentive Plan The Board adopted the 2011 Equity Incentive Plan on July 8, 2011. Also, on July 8, 2011, stockholders holding a majority of the outstanding voting power of the Company, upon the recommendation of the Board, approved the 2011 Equity Incentive Plan. The 2011 Equity Incentive Plan authorizes the grant of equity-based compensation in the form of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance shares, performance units, and other awards for the purpose of providing Cumulus Media’s non-employee directors, consultants, officers and other employees incentives and rewards that are aligned with the economic interests of the Company's shareholders. The 2011 Equity Incentive Plan is administered by the Compensation Committee. The Compensation Committee may delegate its authority under the 2011 Equity Incentive Plan. Total awards under the 2011 Equity Incentive Plan are limited to 4,375,000 shares (the “Authorized Plan Aggregate”) of Class A common stock. The 2011 Equity Incentive Plan also provides that: (i) the aggregate number of shares of Class A common stock actually issued or transferred upon the exercise of incentive stock options (“ISOs”) will not exceed 2,187,500 shares; (ii) the number of shares of Class A common stock issued as restricted stock, RSUs, performance shares, performance units and other awards (after taking into account any forfeitures and cancellations) will not, during the term of the 2011 Equity Incentive Plan, in the aggregate exceed 1,500,000 shares of Class A common stock; (iii) no participant will be granted stock options or SARs, in the aggregate, for more than 1,437,500 shares of Class A common stock during any calendar year; (iv) no participant will be granted awards of restricted stock, RSUs, performance shares or other awards that are intended to qualify as “qualified performance-based compensation” under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), in the aggregate, for more than 375,000 shares of Class A common stock during any calendar year; and (v) no participant during any calendar year will be granted awards of performance units that are intended to qualify as “qualified performance-based compensation” under Section 162(m) of the Code, in the aggregate, for more than a maximum value of $5,000,000 as of their respective dates of grant. The 2011 Equity Incentive Plan provides that only shares with respect to awards that expire or are forfeited or canceled, or shares that were covered by an award the benefit of which is paid in cash instead of shares, will again be available for issuance under the 2011 Equity Incentive Plan. The following shares are not added back to the Authorized Plan Aggregate: (i) shares tendered in payment of a stock option exercise price; (ii) shares withheld by the Company to satisfy tax withholding obligations; and (iii) shares repurchased by the Company with stock option proceeds. Further, all shares covered by a SAR that is exercised and settled in shares, and whether or not all shares are actually issued to the participant upon exercise of the right, will be considered issued or transferred pursuant to the 2011 Equity Incentive Plan. The 2011 Equity Incentive Plan provides that generally: (i) stock options and SARs may not become exercisable by the passage of time sooner than one-third per year over three years except in the event of retirement, death or disability of a participant or in the event of a change in control (described below); (ii) stock options and SARs that become exercisable upon the achievement of Management Objectives (as defined below) cannot become exercisable sooner than one year from the date of grant except in the event of retirement, death or disability of a participant or in the event of a change in control; (iii) restricted stock and RSUs may not become unrestricted by the passage of time sooner than one-third per year over three years unless restrictions lapse sooner by virtue of retirement, death or disability of a participant or in the event of a change in control; (iv) the period of time within which Management Objectives relating to performance shares and performance units must be achieved will be a minimum of one year, subject to earlier lapse or modification by virtue of retirement, death or disability of a participant or in the event of a change in control; (v) restricted stock and RSUs that vest upon the achievement of Management Objectives cannot vest sooner than one year from the date of grant, but may be subject to earlier lapse or modification by virtue of retirement, death or disability of a participant or in the event of a change in control; and, (vi) as described below, a limited number of awards, however, including restricted stock and RSUs granted to non-employee directors, may be granted without regard to the above minimum vesting periods. Repricing of options and SARs is prohibited without stockholder approval under the 2011 Equity Incentive Plan. In general, a change in control will be deemed to have occurred if: (i) there is a consummation of a sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and its subsidiaries taken as a whole to any person or group; (ii) a plan relating to the liquidation or dissolution of the Company is adopted; (iii) there is a consummation of any transaction (including, without limitation, any purchase, sale, acquisition, disposition, merger or consolidation) the result of which is that any person or group becomes the beneficial owner (excluding any options to purchase equity securities of the Company held by such person or group) of more than 50% of the aggregate voting power of all classes of capital stock of the Company having the right to elect directors under ordinary circumstances; or (iv) a majority of the members of the Board are not Continuing Directors. For purposes of this definition, a “Continuing Director” is, as of any date of determination, any member of the Board who (1) was a member of the Board on July 8, 2011 or (2) was nominated for election or elected to the Board with the approval of either two-thirds of the Continuing Directors who were members of the Board at the time of such nomination or election or two-thirds of those Company directors who were previously approved by Continuing Directors. The 2011 Equity Incentive Plan provides that dividends or other distributions on performance shares, restricted stock or RSUs that are earned or that have restrictions that lapse as a result of the achievement of Management Objectives will be deferred until and paid contingent upon the achievement of the applicable Management Objectives. The 2011 Equity Incentive Plan also provides that dividends and dividend equivalents will not be paid on stock options or SARs. The 2011 Equity Incentive Plan provides that no stock options or SARs will be granted with an exercise or base price less than the fair market value of the Class A common stock on the date of grant. The 2011 Equity Incentive Plan is designed to allow awards to qualify as qualified performance-based compensation under Section 162(m) of the Code. The following performance metrics may be used as “Management Objectives”: profits, cash flow, returns, working capital, profit margins, liquidity measures, sales growth, gross margin growth, cost initiative and stock price metrics, and strategic initiative key deliverable metrics. As of December 31, 2016, there were outstanding options to purchase a total of 3,421,986 shares of Class A common stock at exercise prices ranging from $1.34 to $51.68 per share under the 2011 Equity Incentive Plan, of which 852,097 options are unvested and 2,569,889 options were vested. 2008 Equity Incentive Plan As of December 31, 2016, there were outstanding options to purchase a total of 50,469 shares of Class A common stock at exercise prices ranging from $20.32 to $26.40 per share under the 2008 Equity Incentive Plan. As of December 31, 2016, all of such outstanding options had vested. The Company is not authorized to issue additional grants under this plan. |
Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income tax (benefit) expense from continuing operations for the years ended December 31, 2016, 2015 and 2014 consisted of the following (dollars in thousands):
Total income tax (benefit) expense from continuing operations differed from the amount computed by applying the federal statutory tax rate of 35.0% for the years ended December 31, 2016, 2015 and 2014 because of the following (dollars in thousands):
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2016 and 2015 are presented below (dollars in thousands):
Deferred tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary differences and other tax attributes, such as net operating loss carry-forwards. In assessing if the deferred tax assets will be realized, the Company considered whether it is more likely than not that some or all of these deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which these deductible temporary differences reverse. Based upon the Company's analysis of all sources of positive and negative evidence, including the expected generation of taxable income in future years in certain jurisdictions, the Company concluded that it is more likely than not certain deferred tax assets will be realized. During the year ended December 31, 2015, the valuation allowance decreased by $1.8 million to $17.2 million. The $1.8 million decrease to the valuation allowance relates to an increase of $0.3 million related to state rate changes, an increase of $0.2 million related to the Company's estimates of its inability to recover certain state net operating losses and a decrease of $2.3 million related to the write off of certain state net operating losses expected to expire in the future. During the year ended December 31, 2016, the valuation allowance remained at $17.2 million. The changes in the valuation allowance relate to a decrease of $0.2 million related to state rate changes, an increase of $0.8 million related to the Company's estimates of its inability to recover certain state net operating losses and a decrease of $0.6 million related to the write off of certain state net operating losses expected to expire in the future. For the year ended December 31, 2016, $0.6 million of the change in valuation allowance was recorded to deferred tax expense as $0.6 million of the overall zero change in valuation allowance related directly to the write off of net operating losses with an existing valuation allowance. At December 31, 2016, the Company had federal net operating loss carry forwards, which are available to offset future taxable income, of approximately $271.4 million which will expire in the years 2030 through 2032. At December 31, 2016, the Company had state net operating loss carry forwards available to offset future income of approximately $1.2 billion which, if not utilized, will expire in the years 2017 through 2036. In addition to the federal and state net operating loss carry forwards noted above, approximately $1.5 million of net operating loss carry forwards relate to windfall tax benefits associated with the Company's equity based compensation plan for which no deferred tax asset is recognized. The Company's policy is to treat these equity based net operating loss carry forwards as the last net operating loss carry forwards to be consumed. The Company recorded interest and penalties related to unrecognized tax benefits in current income tax expense. Of this amount, $2.9 million was recorded to expense in 2016. The total interest and penalties accrual as of December 31, 2016 is $2.1 million. The overall decrease in accrued interest and penalty in 2016 of $2.9 million is due to additional accruals for interest and penalty on prior year positions of $0.4 million, and reductions to interest and penalty accruals of $3.3 million related to the reversal of positions associated with the expiration of certain statues of limitations. The total unrecognized tax benefits and accrued interest and penalties at December 31, 2016 was $14.0 million. Of this total, $12.4 million represented the unrecognized tax benefits and accrued interest and penalties that, if recognized, would favorably affect the effective income tax rate in future periods. Of the $14.0 million total unrecognized tax benefits and accrued interest and penalties, $13.3 million relates to items which are not expected to change significantly within the next 12 months. Substantially all federal, state, local and foreign income tax returns have been closed for the tax years through 2012; however, the various tax jurisdictions may adjust the Company's net operating loss carry forwards. The following table reconciles unrecognized tax benefits during the relevant years:
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(Loss) Earnings Per Share (“EPS”) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) Earnings Per Share (“EPS”) | Per Share (“EPS”) For all periods presented, the Company has disclosed basic and diluted (loss) earnings per common share utilizing the two-class method. In accordance with, ASC Topic 260, "Earnings per Share," the presentation of basic and diluted EPS is required only for common stock and not for participating securities. Non-vested restricted shares of Class A common stock are considered participating securities for purposes of calculating basic weighted average common shares outstanding in periods in which the Company recorded net (loss) income. In addition, Company Warrants are accounted for as participating securities, as holders of such Warrants, in accordance with and subject to the terms and conditions of the Warrant Agreement, are entitled to receive ratable distributions of the Company's earnings concurrently with such distributions made to the holders of Class A common stock. Basic (loss) earnings per common share is calculated by dividing net (loss) income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. In accordance with the terms of the Company's certificate of incorporation, the Company allocated undistributed net income (loss) after any allocation for preferred stock dividends between each class of common stock on an equal basis per share. In accordance with the two-class method, earnings applicable to the non-vested restricted shares of Class A common stock and Company Warrants are excluded from the computation of basic EPS. Diluted (loss) earnings per share is computed in the same manner as basic (loss) earnings per share after assuming issuance of common stock for all potentially dilutive equivalent shares, which included stock options and certain warrants to purchase common stock. Antidilutive instruments are not considered in this calculation. Under the two-class method, net income is allocated to common stock to the extent that each security may share in earnings, as if all of the (loss) earnings for the period had been distributed. (Loss) earnings are allocated to each class of common stock equally per share. The following table sets forth the computation of basic and diluted (loss) earnings per common share for the years ended December 31, 2016, 2015 and 2014 (amounts in thousands, except per share data):
Potentially dilutive equivalent shares outstanding for the year ended December 31, 2016, excluded from the computation of diluted (loss) income per share consisted of approximately 0.01 million shares of common stock underlying outstanding warrants and stock options. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has non-cancelable operating leases, primarily for land, tower space, office-space, certain office equipment and vehicles. The operating leases generally contain renewal options for periods ranging from one to ten years and require the Company to pay all executory costs such as maintenance and insurance. Rental expense for operating leases was approximately $25.2 million, $27.9 million, and $27.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. Future minimum payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year), future minimum sublease income to be received and a lease commitment under a sale leaseback agreement as of December 31, 2016 are as follows (in thousands):
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Commitments and Contingencies |
12 Months Ended |
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Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Future Commitments The radio broadcast industry’s principal ratings service is Nielsen Audio, which publishes surveys for domestic radio markets. Certain of the Company’s subsidiaries have agreements with Nielsen Audio under which they receive programming ratings materials in a majority of their respective markets. The remaining aggregate obligation under the agreements with Nielsen Audio is approximately $46.2 million and is expected to be paid in accordance with the agreements through December 2017. The Company engages Katz Media Group, Inc. ("Katz") as its national advertising sales agent. The national advertising agency contract with Katz contains termination provisions that, if exercised by the Company during the term of the contract, would obligate the Company to pay a termination fee to Katz, calculated based upon a formula set forth in the contract. The Company is committed under various contractual agreements to pay for broadcast rights that include sports and news services and to pay for talent, executives, research, weather information and other services. The Company from time to time enters into radio network contractual obligations to guarantee a minimum amount of revenue share to contractual counterparties on certain programming in future years. Generally, these guarantees are subject to decreases dependent on clearance targets achieved. As of December 31, 2016, the Company believes that it will meet all such material minimum obligations. On January 2, 2014 (the "Commencement Date”), Merlin Media, LLC (“Merlin”) and the Company entered into an LMA. Under this LMA, the Company is responsible for operating two FM radio stations in Chicago, Illinois, for monthly fees payable to Merlin of approximately $0.3 million, $0.4 million, $0.5 million and $0.6 million in the first, second, third and fourth years following the Commencement Date, respectively, in exchange for the Company retaining the operating profits from these radio stations. In connection therewith, the Company and Merlin also entered into an agreement pursuant to which the Company has the right to purchase these two FM radio stations until October 4, 2017, for an amount in cash equal to the greater of (i) $70.0 million minus the aggregate amount of monthly fees paid by the Company on or prior to the earlier of the closing date or the date that is four years after the Commencement Date; or (ii) $50.0 million, and Merlin has the right to require the Company to purchase these two FM radio stations at any time during a ten-day period commencing October 4, 2017 for $71.0 million, minus the aggregate amount of monthly fees paid by the Company on or prior to the earlier of the closing date and January 2, 2018. The Company determined through its review of the requirements of ASC Topic 810, Consolidation ("ASC 810") that the Company is not the primary beneficiary of the LMA with Merlin, and, therefore, consolidation of the stations is not required. On April 1, 2014, the Company initiated an exit plan for a lease because of a restructuring in connection with the acquisition of Westwood One (the "Exit Plan"), which included charges related to terminated contract costs. In connection with the Exit Plan, the Company recorded restructuring costs of $5.2 million for the year ended December 31, 2015, which costs are included in corporate expenses in the consolidated statement of operations. As of December 31, 2016, liabilities related to the Exit Plan of $0.5 million were included in accounts payable and accrued expenses and are expected to be paid within one year and $3.4 million of non-current liabilities are included in other liabilities in the consolidated balance sheet. We anticipate no additional future charges for the Exit Plan other than true-ups to closed facilities lease charges and accretion expense. Legal Proceedings In March 2011, the Company and certain of our subsidiaries were named as defendants along with other radio companies, including Beasley Broadcast Group, Inc., CBS Radio, Inc., Entercom Communications, Greater Media, Inc. and Townsquare Media, LLC in a patent infringement suit. The case, Mission Abstract Data L.L.C., d/b/a Digimedia v. Beasley Broadcast Group, Inc., et. al., Civil Action Case No: 1:99-mc-09999, U.S. District Court for the District of Delaware (filed March 1, 2011), alleges that the defendants are infringing or have infringed on plaintiff’s patents entitled “Selection and Retrieval of Music from a Digital Database.” Plaintiff is seeking injunctive relief and unspecified damages. This case has been stayed, and is awaiting further action by the court. In August 2015, we were named as a defendant in two separate putative class action lawsuits relating to our use and public performance of certain sound recordings fixed prior to February 15, 1972 (the "Pre-1972 Recordings"). The first suit, ABS Entertainment, Inc., et. al. v, Cumulus Media Inc., was filed in the United States District Court for the Central District of California and alleged, among other things, copyright infringement under California state law, common law conversion, misappropriation and unfair business practices. On December 11, 2015, this suit was dismissed without prejudice. The second suit, ABS Entertainment, Inc., v. Cumulus Media Inc., was filed in the United States District Court for the Southern District of New York and alleges, among other things, common law copyright infringement and unfair competition. The New York lawsuit was stayed pending an appeal before the Second Circuit involving unrelated third parties over whether the owner of a Pre-1972 Recording holds an exclusive right to publicly perform that recording under New York common law. On December 20, 2016, in a case not involving Cumulus Media, Inc., the New York Court of Appeals held that New York common law does not recognize a right of public performance for owners of pre-1972 Recordings. The stay remains in effect in our New York lawsuit until appeal rights are exhausted and the Second Circuit issues a mandate in the unrelated case. The pending suit seeks unspecified damages. The Company is evaluating the suit, and intends to defend itself vigorously. The Company is not yet able to determine what effect the lawsuit will have, if any, on its financial position, results of operations or cash flows. In the first quarter of 2016, CBS Radio Inc. ("CBS") filed a demand for arbitration against certain of our subsidiaries. This action alleged that certain of our subsidiaries breached the terms of one or more contracts with CBS relating to sports network radio programming and content. As previously disclosed, in the third quarter of 2016, the Company settled these claims in exchange for a one-time payment of $13.3 million. This payment was classified as a content cost in the accompanying consolidated statement of operations for the year ended December 31, 2016. The Company currently is, and expects that from time to time in the future it will be, party to, or a defendant in, various other claims or lawsuits that are generally incidental to its business. The Company expects that it will vigorously contest any such claims or lawsuits and believes that the ultimate resolution of any such known claim or lawsuit will not have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. |
Quarterly Results (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) The following table presents the Company’s selected unaudited quarterly results for each of the quarters ended during 2015 and 2016 (dollars in thousands, except per share data):
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Supplemental Condensed Consolidating Financial Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Condensed Consolidating Financial Information | Supplemental Condensed Consolidating Financial Information At December 31, 2016, Cumulus (the "Parent Guarantor") and certain of its 100% owned subsidiaries (such subsidiaries, the “Subsidiary Guarantors”) provided guarantees of the obligations of Cumulus Holdings (the "Subsidiary Issuer") under the 7.75% Senior Notes. These guarantees are full and unconditional (subject to customary release provisions) as well as joint and several. Certain of the Subsidiary Guarantors may be subject to restrictions on their respective ability to distribute earnings to Cumulus Holdings or the Parent Guarantor. Not all of the subsidiaries of Cumulus and Cumulus Holdings guarantee the 7.75% Senior Notes (such non-guaranteeing subsidiaries, collectively, the “Subsidiary Non-guarantors”). The following tables present (i) condensed consolidating statements of operations for the years ended December 31, 2016, 2015 and 2014, (ii) condensed consolidating balance sheets as of December 31, 2016 and 2015, and (iii) condensed consolidating statements of cash flows for the years ended December 31, 2016, 2015, and 2014 of each of the Parent Guarantor, Cumulus Holdings, the Subsidiary Guarantors, and the Subsidiary Non-guarantors. Investments in consolidated subsidiaries are held primarily by the Parent Guarantor in the net assets of its subsidiaries and have been presented using the equity method of accounting. The “Eliminations” entries in the following tables primarily eliminate investments in subsidiaries and intercompany balances and transactions. The columnar presentations in the following tables are not consistent with the Company’s business groups; accordingly, this basis of presentation is not intended to present the Company’s financial condition, results of operations or cash flows on a consolidated basis. CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2016 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2015 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2014 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 (Dollars in thousands, except for share and per share data)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2015 (Dollars in thousands, except for share and per share data)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2016 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2014 (Dollars in thousands)
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Segment Data |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data | Segment Data As described above, during the first quarter of 2016 the Company modified its management reporting framework, affecting how the Company evaluates operating performance and internally reports financial information. This modification resulted in a reorganization of its reportable segments. Historical information has been revised to reflect the change in segments, with no impact on consolidated results. The Company presents segment adjusted EBITDA ("Adjusted EBITDA") as the financial metric utilized by management and the chief operating decision maker to allocate resources of the Company and to analyze the performance of the Company’s reportable segments. This measure isolates the amount of income generated by our core operations before the incurrence of corporate expenses. Management also uses this measure to determine the contribution of our core operations to the funding of our corporate resources utilized to manage our operations and our non-operating expenses including debt service and acquisitions. In addition, Adjusted EBITDA, excluding the impact of LMA fees, is a key metric for purposes of calculating and determining compliance with certain covenants in our Credit Agreement. In deriving this measure, the Company excludes depreciation, amortization, and stock-based compensation expense, as these do not represent cash payments for activities directly related to our core operations. The Company also excludes any gain or loss on the exchange or sale of any assets or stations and any gain or loss on derivative instruments, early extinguishment of debt, and LMA Fees as they do not represent cash transactions nor are they associated with core operations. Expenses relating to acquisitions and restructuring costs are also excluded from the calculation of Adjusted EBITDA as they are not directly related to our core operations. The Company excludes any costs associated with impairment of assets as they do not require a cash outlay. The Company believes that Adjusted EBITDA, although not a measure that is calculated in accordance with GAAP, nevertheless is commonly employed by the investment community as a measure for determining the market value of a media company. The Company has also observed that Adjusted EBITDA is routinely employed to evaluate and negotiate the potential purchase price for media companies. Given the relevance to the Company’s overall value, the Company believes that investors consider the metric to be extremely useful. Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss), operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP. In addition, Adjusted EBITDA may be defined or calculated differently by other companies, and comparability may be limited. The Company’s financial data by segment is presented in the tables below:
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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS |
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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II CUMULUS MEDIA INC. FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS
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Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Cumulus Media Inc. (and its consolidated subsidiaries, except as the context may otherwise require, “Cumulus,” “Cumulus Media,” “we,” “us,” “our,” or the “Company”) is a Delaware corporation, organized in 2002, and successor by merger to an Illinois corporation with the same name that had been organized in 1997. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Reportable Segments | Reportable Segments During the first quarter of 2016, the Company modified its management reporting framework affecting how the Company evaluates operating performance and internally reports financial information. This modification resulted in a reorganization of the Company's reportable segments. Prior to this reorganization, the Company operated in one reportable business segment which consisted of radio broadcasting, advertising and related services. The Company now operates in two reportable segments, the Radio Station Group and Westwood One, for which there is discrete financial information available and whose operating results are reviewed by the chief operating decision maker. Historical information included in these financial statements has been revised to reflect the change to two segments, with no impact to previously disclosed consolidated results (See Note 4, "Intangible Assets and Goodwill" and Note 16, "Segment Data"). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluated its estimates, including significant estimates related to revenue recognition, bad debts, intangible assets, income taxes, stock-based compensation, contingencies, litigation, and, if applicable, purchase price allocation. The Company based its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates. |
Comprehensive Income | Comprehensive Income Comprehensive income (loss) includes net income (loss) and certain items that are excluded from net income (loss) and recorded as a separate component of stockholders' equity (deficit). During the years ended December 31, 2016, 2015 and 2014, the Company had no items of other comprehensive income (loss) and, therefore, comprehensive income does not differ from reported net income (loss). |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considered all highly liquid investments with original maturities of three months or less to be cash equivalents. |
Accounts Receivable, Allowance for Doubtful Accounts and Concentration of Credit Risk | Accounts Receivable, Allowance for Doubtful Accounts and Concentration of Credit Risk Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determined the allowance based on several factors, including the length of time receivables are past due, trends and current economic factors. All balances are reviewed and evaluated quarterly on a consolidated basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. In the opinion of management, credit risk with respect to accounts receivable is limited due to the large number of customers and the geographic diversification of the Company’s customer base. The Company performs ongoing credit evaluations of its customers and believes that adequate allowances for any uncollectible accounts receivable are maintained. |
Assets Held for Sale | Assets Held for Sale During the year ended December 31, 2015, the Company entered into an agreement to sell certain land in the Company's Washington, DC market to a third party. The closing of the transaction is subject to various conditions and approvals, which remain pending. The identified assets have been classified as held for sale in the accompanying consolidated balance sheets at December 31, 2016 and 2015. The estimated fair value of the land and buildings to be disposed of are in excess of their carrying value. |
Insurance Recoveries | Insurance Recoveries During the year ended December 31, 2015, the Company received $14.6 million of insurance proceeds related to a business interruption claim arising from Hurricane Katrina in 2005. The Company recorded $12.4 million in other income (expense), net and $2.2 million as an offset to corporate expenses in the consolidated statement of operations for the year ended December 31, 2015. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Property and equipment acquired in business combinations accounted for under the purchase method of accounting are recorded at their estimated fair values on the date of acquisition. Equipment held under capital leases is stated at the present value of minimum future lease payments. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets. Equipment held under capital leases and leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the remaining term of the lease. Depreciation of construction in progress is not recorded until the assets are placed into service. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The Company’s intangible assets are comprised of broadcast licenses, certain other intangible assets and goodwill. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed in a business combination. Intangible assets and goodwill acquired in a business combination and determined to have an indefinite useful life, which include the Company’s broadcast licenses, are not amortized, but instead tested for impairment at least annually, or if a triggering event occurs. Intangible assets with definite useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In determining that the Company’s broadcast licenses qualified as indefinite lived intangibles, management considered a variety of factors including the Federal Communications Commission’s (“FCC”) historical record of renewing broadcast licenses, the cost to the Company of renewing such licenses, the relative stability and predictability of the radio industry and the relatively low level of capital investment required to maintain the physical plant of a radio station. The Company's evaluation of the recoverability of its indefinite-lived assets, which include FCC licenses and goodwill, is based on certain judgments and estimates. Future events may impact these judgments and estimates. If events or changes in circumstances were to indicate that an asset’s carrying value is not recoverable, a write-down of the asset would be recorded through a charge to operations. |
Investments | Investments The Company follows Accounting Standards Codification (“ASC”) Topic 325-20, Cost Method Investments (“ASC 325-20”) to account for its ownership interest in noncontrolled entities. Under ASC 325-20, equity securities that do not have readily determinable fair values (i.e., non-marketable equity securities) and are not required to be accounted for under the equity method are typically carried at cost (i.e., cost method investments). Investments of this nature are initially recorded at cost. Income is recorded for dividends received that are distributed from net accumulated earnings of the noncontrolled entity subsequent to the date of investment. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions in the cost of the investment. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred. |
Debt Issuance Costs | Debt Issuance Costs The costs related to the issuance of debt are capitalized and amortized to interest expense over the life of the related debt using the effective interest method. |
Derivative Financial Instruments | Derivative Financial Instruments The Company recognizes all derivatives on the consolidated balance sheets at fair value. Fair value changes are recorded as income for any contracts not classified as qualifying hedging instruments. |
Revenue Recognition | Revenue Recognition Revenue is derived primarily from the sale of commercial airtime to local and national advertisers. Revenue is recognized as commercials are broadcast. Revenues presented in the financial statements are reflected on a net basis, after the deduction of advertising agency fees by the advertising agencies, usually at a rate of 15.0%, which is the industry standard. In those instances in which we function as the principal in the transaction, the revenue and associated operating costs are presented on a gross basis. In those instances where we function as an agent or sales representative, our effective commission is presented as revenue with no corresponding operating expenses. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Local Marketing Agreements | Local Marketing Agreements In certain circumstances, the Company may enter into a local marketing agreement (“LMA”) or time brokerage agreement with an FCC licensee of a radio station. In a typical LMA, the licensee of the station makes available, for a fee, airtime on its station to a party, which supplies programming to be broadcast on that airtime, and collects revenues from advertising aired during such programming. Revenues earned and fees incurred pursuant to LMAs or time brokerage agreements are recognized at their gross amounts in the accompanying consolidated statements of operations. |
Stock-based Compensation Expense | Stock-based Compensation Expense Stock-based compensation expense recognized under ASC Topic 718, Compensation — Share-Based Payment (“ASC 718”), for the years ended December 31, 2016, 2015 and 2014, was $2.9 million, $21.0 million, and $17.6 million, respectively. Upon adopting ASC 718 for awards with service conditions, an election was made to recognize stock-based compensation expense on a straight-line basis over the requisite service period for the entire award. For stock options with service conditions only, the Company utilized the Black-Scholes option pricing model to estimate the fair value of options issued. For restricted stock awards with service conditions, the Company utilized the intrinsic value method. For restricted stock awards with performance conditions, the Company evaluated the probability of vesting of the awards in each reporting period and adjusted compensation cost based on this assessment. The fair value is based on the use of certain assumptions regarding a number of highly complex and subjective variables. If other assumptions are used, the results could differ. |
Trade Transactions | Trade Transactions The Company provided commercial airtime in exchange for goods and services used principally for promotional, sales, programming and other business activities. An asset and liability is recorded at the fair value of the goods or services received. Trade revenue is recorded and the liability is relieved when commercials are broadcast and trade expense is recorded and the asset relieved when goods or services are consumed. Trade valuation is based upon management’s estimate of the fair value of the products, supplies and services received. |
Income Taxes | Income Taxes The Company used the liability method of accounting for deferred income taxes. Deferred income taxes are recognized for all temporary differences between the tax and financial reporting bases of the Company’s assets and liabilities based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recorded for a net deferred tax asset balance when it is more likely than not that the benefits of the tax asset will not be realized. The Company continues to assess the need for its deferred tax asset valuation allowance in the jurisdictions in which it operates. Any adjustment to the deferred tax asset valuation allowance is recorded in the income statement of the period that the adjustment is determined to be required. See Note 13, “Income Taxes” for further discussion. |
Earnings per Share | Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding. The Company allocated undistributed net income (loss) from continuing operations between each class of common stock on an equal basis after any allocations for preferred stock dividends in accordance with the terms of the Company’s third amended and restated certificate of incorporation, as amended (the “Third Amended and Restated Charter”). Non-vested restricted shares of Class A common stock and Company Warrants (defined below) are considered participating securities for purposes of calculating basic weighted average common shares outstanding in periods in which the Company recorded net income. Diluted earnings per share is computed in the same manner as basic earnings per share after assuming the issuance of common stock for all potentially dilutive equivalent shares, which included stock options and certain other outstanding warrants to purchase common stock. Antidilutive instruments are not considered in this calculation. Under the two-class method, net income is allocated to common stock and participating securities to the extent that each security may share in earnings, as if all of the earnings for the period had been distributed. Earnings are allocated to each participating security and common share equally, after deducting dividends declared or accreted on preferred stock. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying values of cash equivalents, restricted cash, accounts receivables, accounts payable, trade payables and receivables and accrued expenses approximate fair value due to the short term to maturity of these instruments (See Note 7, "Fair Value Measurements"). |
Accounting for National Advertising Agency Contract | Accounting for National Advertising Agency Contract The Company has engaged Katz Media Group, Inc. (“Katz”) as its national advertising sales agent. The Company’s contract with Katz has several economic elements that principally reduce the overall expected commission rate below the stated base rate. The Company estimates the overall expected commission rate over the entire contract period and applies that rate to commissionable revenue throughout the contract period with the goal of estimating and recording a stable commission rate over the life of the contract. The potential commission adjustments are estimated and combined in the consolidated balance sheets with the contractual termination liability. That liability is accreted to commission expense to effectuate the stable commission rate over the term of the Katz contract. Over the term of the contract with Katz, management updates its assessment of the effective commission expense attributable to national sales in an effort to record a consistent commission rate in each period. The Company’s accounting for and calculation of commission expense to be realized over the life of the Katz contract requires management to make estimates and judgments that affect reported amounts of commission expense in each period. Actual results in any period may differ from management’s estimates. |
Variable Interest Entities | Variable Interest Entities The Company accounted for entities qualifying as variable interest entities (“VIEs”) in accordance with ASC Topic 810, Consolidation (“ASC 810”). VIEs are required to be consolidated by the primary beneficiary. The primary beneficiary is the entity that holds the majority of the beneficial interests in the VIE. A VIE is an entity for which the primary beneficiary’s interest in the entity can change with changes in factors other than the amount of investment in the entity. From time to time, the Company enters into LMAs in connection with pending acquisitions or dispositions of radio stations and the requirements of ASC 810 may apply, depending on the facts and circumstances related to each transaction. |
Adoption of New Accounting Standards and Recent Accounting Standards Updates | Adoption of New Accounting Standards ASU 2015-03. In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03. The amendments in this ASU require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of long-term debt, consistent with debt discounts or premiums. We adopted this standard retrospectively in the first quarter of 2016. The balance sheet as of December 31, 2015 was retrospectively adjusted, which resulted in reductions to other assets of $22.4 million and long-term debt of $22.4 million. ASU 2014-15. In August 2014, the FASB issued ASU 2014-15. The amendments in this ASU provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. These amendments should standardize the timing and content of footnote disclosures. The Company adopted this ASU effective December 31, 2016. The adoption of this guidance did not have an impact on the consolidated financial statements. Recent Accounting Standards Updates ASU 2014-09 and related updates. In May 2014, the FASB issued ASU 2014-09. The amended guidance under this ASU outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the single comprehensive revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In August 2015, the FASB issued ASU 2015-14, which delayed the effective date of ASU 2014-09 by one year. Transition to the new guidance may be done using either a full or modified retrospective method. ASU 2014-09, as amended, is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. In March 2016, the FASB issued ASU 2016-08 which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10 which amends the revenue recognition guidance on accounting for licenses of intellectual property and identifying performance obligations as well as clarifies when a promised good or service is separately identifiable. In May 2016, the FASB issued ASU 2016-12 which provides clarifying guidance in certain narrow areas such as an assessment of collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition as well as adds some practical expedients. In December 2016, the FASB issued ASU 2016-20 which provides technical corrections and improvements to Topic 606. The amendments in ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 may be applied either retrospectively to each prior period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and 2016-20 at the date of initial application. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, will adopt the new standard effective January 1, 2018. The Company is currently evaluating the adoption approach. The Company's final determination will depend on a number of factors, such as the significance of the impact of the new standard on our financial results, system readiness, and our ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements and the Company's ability to maintain two sets of financials under current and new standards if we were to adopt the full retrospective approach. The Company is in the initial stages of our evaluation of the impact of the new standard on our accounting policies, processes, and system requirements. The Company has assigned internal resources to the evaluation to enable timely and accurate reporting under the new standard. The Company continues to assess the potential impacts of the new standard, including the areas described above, and anticipate this standard could have a material impact on our consolidated financial statements, we do not know or cannot reasonably estimate quantitative information related to the impact of the new standard on our financial statements at this time. ASU 2016-01. In January 2016, the FASB issued ASU 2016-01. The amendments in this ASU enhance the reporting model for financial instruments including aspects of recognition, measurement, presentation and disclosure of financial instruments. The new guidance revises the accounting requirements related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The update also changes certain disclosure requirements associated with the fair value of financial instruments. These changes will require an entity to measure, at fair value, investments in equity securities and other ownership interests in an entity - including investments in partnerships, unincorporated joint ventures and limited liability companies that do not result in consolidation and are not accounted for under the equity method - and recognize the changes in fair value within net income. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is not permitted, except for certain amendments within the ASU. The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements. ASU 2016-02. In February 2016, the FASB issued ASU 2016-02. The amendments in this ASU provide guidance for accounting for leases. This update requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This ASU will be effective for fiscal years beginning after December 15, 2018, and interim periods thereafter. A modified retrospective transition method is required, with the option to elect a package of practical expedients. Early adoption is permitted. The Company is currently assessing the expected impact that this ASU will have on the consolidated financial statements. ASU 2016-09. In March 2016, the FASB issued ASU 2016-09. The amendments in this ASU provide guidance for employee share-based payment accounting. This update removes the requirement that reporting entities present tax benefits as excess cash flows from financing activities and cash flows from operating activities. As a result of this amendment, cash flows related to excess tax benefits will be classified only in operating activities. This ASU will be effective for fiscal years beginning after December 15, 2016, and interim periods thereafter. The Company does not expect that this ASU will have a material impact on the consolidated financial statements. ASU 2016-15. In August 2016, the FASB issued ASU 2016-15. The amendments in the ASU provide guidance for several new and/or revised disclosures pertaining to the classification of certain cash receipts and cash payments on the statement of cash flows, including contingent consideration payments made after a business acquisition. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2016-16. In October 2016, the FASB issued ASU 2016-16. The amendments in the ASU provide guidance for the accounting for the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs between entities in different tax jurisdictions. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2016-18. In November 2016, the FASB issued ASU 2016-18. The amendments in the ASU provide guidance for the accounting for the disclosure of restricted cash on the Statement of Cash Flows. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2017-01. In January 2017, the FASB issued final guidance that revises the definition of a business. The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, consolidation). According to feedback received by the FASB, application of the current guidance is commonly thought to be too complex and results in too many transactions qualifying as business combinations. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2017-04. In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any impairment tests performed after January 1, 2017. The Company intends to early adopt this ASU effective January 1, 2017. As this standard is prospective in nature, the impact to our financial statements by not performing Step 2 to measure the amount of any potential goodwill impairment will depend on various factors. However, the elimination of Step 2 will reduce the complexity and cost of subsequent measurements of goodwill. |
Fair Value Measurements | The three levels of the fair value hierarchy to be applied when determining fair value of financial instruments 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; and 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. |
Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property and Equipment | Property and equipment consisted of the following as of December 31, 2016 and 2015 (dollars in thousands):
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Intangible Assets and Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Goodwill | The following tables present goodwill balances and accumulated impairment losses on a segment and consolidated basis as of December 31, 2015 and December 31, 2016 (dollars in thousands): Radio Station Group
Westwood One
Consolidated
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Schedule of Changes in Intangible Assets Other Than Goodwill | The following table presents the changes in intangible assets, other than goodwill, on a consolidated basis during the period December 31, 2015 to December 31, 2016, and balances as of such dates (dollars in thousands):
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Estimated Future Amortization Expense | As of December 31, 2016, estimated future amortization expense related to the Company's definite-lived intangible assets was as follows (dollars in thousands):
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Schedule of Goodwill | The table below presents the percentages by which the fair value was above the carrying value of the Company's reporting units under the Step 1 test as of December 31, 2016 (dollars in thousands).
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Accounts Payable and Accrued Expenses (Tables) |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following as of December 31, 2016 and 2015 (dollars in thousands):
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Long-Term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-term Debt | The Company’s long-term debt consisted of the following at December 31, 2016 and 2015 (dollars in thousands):
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Future Maturities of Long-Term Debt | A summary of the future maturities of long-term debt follows, exclusive of the discount and issuance costs of debt (dollars in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Change in Fair Value Associated With Green Bay Option | The reconciliation below contains the components of the change in fair value associated with the equity interest in Pulser Media Inc. ("Pulser") for the year ended December 31, 2015 (dollars in thousands):
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Schedule of Gross Amounts and Fair Value of Company's First Lien Term Loan, Second Lien Term Loan, Revolving Credit Facility and 7.75% Senior Notes | The following table shows the gross amount and fair value of the Company’s Term Loan and 7.75% Senior Notes (dollars in thousands):
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Stock-Based Compensation Expense (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Equity Award Activity | The following tables summarize the Company’s equity award activity for the year ended December 31, 2016:
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Summary of Company's Restricted Common Stock Awards Activity |
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income Tax Expense (Benefit) | Income tax (benefit) expense from continuing operations for the years ended December 31, 2016, 2015 and 2014 consisted of the following (dollars in thousands):
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Total Income Tax Expense (Benefit) Differed From Amount Computed by Applying Federal Statutory Tax Rate | Total income tax (benefit) expense from continuing operations differed from the amount computed by applying the federal statutory tax rate of 35.0% for the years ended December 31, 2016, 2015 and 2014 because of the following (dollars in thousands):
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Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2016 and 2015 are presented below (dollars in thousands):
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Schedule of Unrecognized Tax Benefits Roll Forward | The following table reconciles unrecognized tax benefits during the relevant years:
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(Loss) Earnings Per Share (“EPS”) (Tables) |
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Schedule of Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted (loss) earnings per common share for the years ended December 31, 2016, 2015 and 2014 (amounts in thousands, except per share data):
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Leases (Tables) |
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Future Minimum Lease Payments under Non-Cancelable Operating Leases | Future minimum payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year), future minimum sublease income to be received and a lease commitment under a sale leaseback agreement as of December 31, 2016 are as follows (in thousands):
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Quarterly Results (Unaudited) (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results | The following table presents the Company’s selected unaudited quarterly results for each of the quarters ended during 2015 and 2016 (dollars in thousands, except per share data):
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Supplemental Condensed Consolidating Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2016 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2015 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2014 (Dollars in thousands)
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Condensed Consolidating Balance Sheets | CUMULUS MEDIA INC. CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 (Dollars in thousands, except for share and per share data)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2015 (Dollars in thousands, except for share and per share data)
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Condensed Consolidating Statements of Cash Flows | CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2016 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2014 (Dollars in thousands)
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Segment Data (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The Company’s financial data by segment is presented in the tables below:
|
Restricted Cash (Narrative) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 8,025 | $ 7,981 |
Restricted cash balance relates to company's bank accounts | 1,500 | 600 |
Letter of Credit | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 6,500 | $ 7,400 |
Property and Equipment (Narrative) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 31.1 | $ 33.0 | $ 35.3 |
Intangible Assets and Goodwill (Changes in Goodwill) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 1,582,806 | $ 1,582,806 |
Accumulated impairment losses | (1,447,592) | (879,452) |
Total | 135,214 | 703,354 |
Radio Station Group | ||
Goodwill [Line Items] | ||
Goodwill | 1,278,526 | 1,278,526 |
Accumulated impairment losses | (1,278,526) | (710,386) |
Total | 0 | 568,140 |
Westwood One | ||
Goodwill [Line Items] | ||
Goodwill | 304,280 | 304,280 |
Accumulated impairment losses | (169,066) | (169,066) |
Total | $ 135,214 | $ 135,214 |
Intangible Assets and Goodwill (Changes in Intangible Assets Other Than Goodwill) (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Indefinite-Lived Intangible Assets | ||
Indefinite-Lived Intangible Assets, Beginning Balance | $ 1,578,066 | $ 1,596,715 |
Impairment | (35,000) | (15,873) |
Disposition | (2,883) | (2,776) |
Amortization | 0 | 0 |
Indefinite-Lived Intangible Assets, Ending Balance | 1,540,183 | 1,578,066 |
Definite-Lived Intangible Assets | ||
Definite-Lived Intangible Assets, Beginning Balance | 174,530 | 243,640 |
Impairment | (1,816) | 0 |
Disposition | 0 | 0 |
Amortization | (56,215) | (69,110) |
Definite-Lived Intangible Assets, Ending Balance | 116,499 | 174,530 |
Intangible Assets, Net | ||
Intangible Assets Total, Beginning Balance | 1,752,596 | 1,840,355 |
Impairment | (36,816) | (15,873) |
Disposition | (2,883) | (2,776) |
Amortization | (56,215) | (69,110) |
Intangible Assets Total, Ending Balance | $ 1,656,682 | $ 1,752,596 |
Intangible Assets and Goodwill (Estimated Future Amortization Expense) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2017 | $ 33,505 | ||
2018 | 18,201 | ||
2019 | 17,257 | ||
2020 | 17,197 | ||
2021 | 17,114 | ||
Thereafter | 13,225 | ||
Total other intangibles, net | $ 116,499 | $ 174,530 | $ 243,640 |
Intangible Assets and Goodwill (Schedule of Goodwill) (Details) - USD ($) |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 135,214,000 | $ 703,354,000 |
Reporting Unit 1 | ||
Goodwill [Line Items] | ||
Goodwill | 568,141,000 | |
Carrying value (including goodwill) | $ 2,040,207,000 | |
Percentage fair value above carrying value | 0.00% | |
Reporting Unit 2 | ||
Goodwill [Line Items] | ||
Goodwill | $ 135,213,000 | |
Carrying value (including goodwill) | $ 194,282,000 | |
Percentage fair value above carrying value | 63.80% | |
Reporting Unit 3 | ||
Goodwill [Line Items] | ||
Goodwill | $ 0 | |
Carrying value (including goodwill) | $ 0 | |
Percentage fair value above carrying value | 0.00% |
Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued employee costs | $ 30,887 | $ 22,169 |
Accrued third party content costs | 29,285 | 36,166 |
Accounts payable | 12,739 | 11,492 |
Accrued other | 14,494 | 23,998 |
Accrued interest | 8,334 | 8,106 |
Accrued retention and severance costs | 502 | 10,465 |
Advance deposit received | 0 | 6,000 |
Total accounts payable and accrued expenses | $ 96,241 | $ 118,396 |
Long-Term Debt (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Total 7.75% Senior Notes | $ 603,800 | $ 601,485 |
Less: Current portion of long-term debt | 0 | 0 |
Long-term debt, net | 2,384,157 | 2,402,901 |
7.75% Senior Notes | ||
Debt Instrument [Line Items] | ||
7.75% Senior Notes | 610,000 | 610,000 |
Less: unamortized debt issuance costs | (6,200) | (8,515) |
Total 7.75% Senior Notes | 603,800 | 601,485 |
Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Term Loan | 1,810,266 | 1,838,940 |
Less: unamortized term loan discount and debt issuance costs | (29,909) | (37,524) |
Total term loan | $ 1,780,357 | $ 1,801,416 |
Long-Term Debt (Future Maturities of Long-Term Debt) (Detail) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2017 | $ 0 |
2018 | 0 |
2019 | 610,000 |
2020 | 1,810,266 |
2021 | 0 |
Thereafter | 0 |
Long-term Debt, Total | $ 2,420,266 |
Fair Value Measurements (Components of Change in Fair Value) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Less: Impairment charge | $ 0 | $ (19,364) | $ 0 |
Pulser Media | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value balance at January 1, 2015 | 0 | 17,339 | |
Add: Additions to equity interest in Pulser | 2,025 | ||
Less: Impairment charge | (19,364) | ||
Fair value balance at December 31, 2015 | $ 0 | $ 17,339 |
Fair Value Measurements (Gross Amounts and Fair Value of Debt) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Term Loan | ||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | ||
Carrying value | $ 1,810,266 | $ 1,838,940 |
Term Loan | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | ||
Fair value — Level 2 | 1,226,455 | 1,360,816 |
7.75% Senior Notes | ||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | ||
Carrying value | 610,000 | 610,000 |
7.75% Senior Notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | ||
Fair value — Level 2 | $ 249,673 | $ 204,350 |
Fair Value Measurements (Narrative) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
May 13, 2011 |
|
Term Loan | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading prices rate to calculate the fair value | 67.75% | 74.00% | |
7.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading prices rate to calculate the fair value | 40.93% | 33.50% | |
7.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate | 7.75% | 7.75% | 7.75% |
Goodwill Test 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncash impairment charge | $ 568.1 | $ 549.7 | |
FCC Licenses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncash impairment charge | $ 35.0 | $ 15.9 |
Stock-Based Compensation Expense (Summary of Company's Restricted Common Stock Awards Activity) (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2016
$ / shares
shares
| |
Number of Restricted Stock Awards (in thousands) | |
Vested (in shares) | shares | (30,365) |
Weighted- Average Grant Date Fair Value (in thousands) | |
Vested (USD per share) | $ / shares | $ 19.76 |
Restricted Stock | |
Number of Restricted Stock Awards (in thousands) | |
Outstanding at January 1, 2016 (in shares) | shares | 30,365 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Outstanding awards at December 31, 2016 (in shares) | shares | 0 |
Weighted- Average Grant Date Fair Value (in thousands) | |
Outstanding at January 1, 2016 (USD per share) | $ / shares | $ 19.76 |
Granted (USD per share) | $ / shares | 0.00 |
Forfeited (USD per share) | $ / shares | 0.00 |
Outstanding awards at December 31, 2016 (USD per share) | $ / shares | $ 0.00 |
Income Taxes (Income Tax Expense (Benefit)) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Current income tax expense | |||
State and local | $ 1,678 | $ 2,422 | $ 3,352 |
Total current income tax expense | 1,678 | 2,422 | 3,352 |
Deferred tax (benefit) expense | |||
Federal | (19,496) | (48,123) | 7,172 |
State and local | (8,336) | (139) | (270) |
Total deferred tax (benefit) expense | (27,832) | (48,262) | 6,902 |
Net income tax (benefit) expense | $ (26,154) | $ (45,840) | $ 10,254 |
Income Taxes (Total Income Tax Expense (Benefit)) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Pretax (loss) income at federal statutory rate | $ (187,906) | $ (207,317) | $ 7,707 |
State income tax (benefit) expense, net federal (benefit) expense | (1,812) | (1,385) | 992 |
Meals and entertainment | 429 | 380 | 424 |
Change in state tax rates | (1,618) | 1,605 | (1,580) |
Section 162 disallowance | 538 | 110 | 562 |
Impairment charges on goodwill with no tax basis | 163,630 | 153,371 | 0 |
Increase in valuation allowance | 32 | 190 | 2,189 |
Other | 553 | 7,206 | (40) |
Net income tax (benefit) expense | $ (26,154) | $ (45,840) | $ 10,254 |
Income Taxes (Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Noncurrent deferred tax assets: | ||
Accounts receivable | $ 1,422 | $ 1,849 |
Advertising relationships | 2,548 | 3,686 |
Other liabilities | 27,014 | 28,140 |
AMT tax credit | 2,042 | 2,042 |
Net operating loss | 111,778 | 155,475 |
Noncurrent deferred tax assets | 144,804 | 191,192 |
Less: valuation allowance | (17,205) | (17,173) |
Net noncurrent deferred tax assets | 127,599 | 174,019 |
Noncurrent deferred tax liabilities: | ||
Intangible assets | 482,620 | 527,775 |
Property and equipment | 20,485 | 30,260 |
Cancellation of debt income | 12,544 | 31,865 |
Noncurrent deferred tax liabilities | 515,649 | 589,900 |
Net noncurrent deferred tax liabilities | 388,050 | 415,881 |
Net deferred tax liabilities | $ 388,050 | $ 415,881 |
Income Taxes (Schedule of Unrecognized Tax Benefits Roll Forward) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 12,629 | $ 14,466 |
Settlements | (1,180) | |
Lapse of statute of limitations | (1,014) | (657) |
Increase for prior year positions | 275 | |
Balance at end of period | $ 11,890 | $ 12,629 |
Leases (Narrative) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Operating Leased Assets [Line Items] | |||
Rental expense for operating leases | $ 25.2 | $ 27.9 | $ 27.4 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating leases renewal option period | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating leases renewal option period | 10 years |
Quarterly Results (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $ 299,541 | $ 286,136 | $ 287,193 | $ 268,530 | $ 308,825 | $ 289,441 | $ 299,334 | $ 271,079 | $ 1,141,400 | $ 1,168,679 | $ 1,263,423 |
Operating income (loss) | (568,585) | 113,017 | 36,665 | 10,114 | 28,821 | (567,214) | 48,003 | 11,875 | (408,789) | (478,515) | 161,830 |
(Loss) income before income taxes | (594,736) | 79,109 | 2,315 | (23,562) | 8,081 | (603,034) | 24,991 | (22,372) | (536,874) | (592,334) | 22,023 |
Net (loss) income | $ (543,677) | $ 46,321 | $ 1,066 | $ (14,429) | $ (4,599) | $ (542,179) | $ 12,299 | $ (12,015) | $ (510,720) | $ (546,494) | $ 11,769 |
Basic: | |||||||||||
(Loss) income per share (in USD per share) | $ (18.57) | $ 1.58 | $ 0.04 | $ (0.49) | $ (0.16) | $ (18.56) | $ 0.40 | $ (0.40) | |||
Diluted: | |||||||||||
(Loss) income per share (in USD per share) | $ (18.57) | $ 1.58 | $ 0.04 | $ (0.49) | $ (0.16) | $ (18.56) | $ 0.40 | $ (0.40) |
Supplemental Condensed Consolidating Financial Information (Narrative) (Details) |
Dec. 31, 2016 |
Dec. 31, 2015 |
May 13, 2011 |
---|---|---|---|
Condensed Financial Statements, Captions [Line Items] | |||
Percentage ownership in subsidiaries | 100.00% | ||
7.75% Senior Notes | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate | 7.75% | 7.75% | 7.75% |
Supplemental Condensed Consolidating Financial Information (Condensed Consolidating Statement of Operations) (Additional Information) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||
Stock-based compensation expense | $ 2,948 | $ 21,033 | $ 17,638 |
Supplemental Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheets) (Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
May 13, 2011 |
---|---|---|---|
Allowance for doubtful accounts | $ 4,691 | $ 4,923 | |
Debt issuance cost (premium) | $ 29,909 | $ 37,524 | |
Treasury stock, shares | 2,806,187 | 2,805,743 | |
Class A Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 93,750,000 | 93,750,000 | |
Common stock, shares issued | 32,031,054 | 31,987,862 | |
Common stock, shares outstanding | 29,225,765 | 29,182,118 | |
Class C Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 80,609 | 80,609 | |
Common stock, shares issued | 80,609 | 80,609 | |
Common stock, shares outstanding | 80,609 | 80,609 | |
7.75% Senior Notes | |||
Interest rate | 7.75% | 7.75% | 7.75% |
Debt issuance costs | $ 6,200 | $ 8,515 |
Schedule II, Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 4,923 | $ 6,004 | $ 5,306 |
Charged to Costs and Expenses | 1,103 | 4,501 | 4,302 |
Deductions | (1,335) | (5,582) | (3,604) |
Balance at End of Year | 4,691 | 4,923 | 6,004 |
Valuation allowance on deferred taxes | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 17,173 | 18,991 | 16,802 |
Charged to Costs and Expenses | 32 | 517 | 2,189 |
Deductions | 0 | (2,335) | 0 |
Balance at End of Year | $ 17,205 | $ 17,173 | $ 18,991 |
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