10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from            to        

Commission file number 000-24525

CUMULUS MEDIA INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	36-4159663
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
3280 Peachtree Road, NW Suite 2300, Atlanta, GA	30305
(Address of Principal Executive Offices)	(ZIP Code)

(404) 949-0700

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of July 31, 2012, the registrant had 167,488,902 outstanding shares of common stock consisting of (i) 154,404,364 shares of Class A common stock; (ii) 12,439,667 shares of Class B common stock; and (iii) 644,871 shares of Class C common stock.

CUMULUS MEDIA INC.

INDEX

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)	3
Condensed Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011	3
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June  30, 2012 and 2011	4
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2012 and 2011	5
Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3. Quantitative and Qualitative Disclosures About Market Risk	43
Item 4. Controls and Procedures	43
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	45
Item 1A. Risk Factors	45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 6. Exhibits	45
Signatures	46

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except for per share data)

(Unaudited)

	June 30, 2012			December 31, 2011
Assets
Current assets:
Cash and cash equivalents	$	19,083		$	30,592
Restricted cash		3,854			3,854
Accounts receivable, less allowance for doubtful accounts of $3,694 and $2,765 at June 30, 2012 and December 31, 2011, respectively		233,776			236,804
Trade receivable		7,178			5,967
Compensation held in trust		—			24,807
Prepaid expenses and other current assets		26,059			22,315
Current assets held for sale		72,350			—
Total current assets		362,300			324,339
Property and equipment, net		262,078			278,070
Broadcast licenses		1,598,228			1,625,415
Other intangible assets, net		315,539			390,509
Goodwill		1,292,725			1,334,512
Other assets		83,586			87,746
Total assets	$	3,914,456		$	4,040,591
Liabilities, Redeemable Preferred Stock and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	112,108		$	160,186
Trade payable		5,392			4,999
Current portion of long-term debt		13,250			13,250
Total current liabilities		130,750			178,435
Long-term debt, excluding 7.75% senior notes		2,171,990			2,227,287
7.75% senior notes		610,000			610,000
Other liabilities		62,512			63,938
Deferred income taxes		542,466			556,771
Total liabilities		3,517,718			3,636,431
Redeemable preferred stock:
Series A cumulative redeemable preferred stock, par value $0.01 per share; stated value of $1,000 per share; 100,000,000 shares authorized; 125,000 shares issued and outstanding at both June 30, 2012 and December 31, 2011		118,231			113,447
Total redeemable preferred stock		118,231			113,447
Stockholders’ equity
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 176,273,876 and 160,783,484 shares issued and 152,156,089 and 137,085,813 shares outstanding at June 30, 2012 and December 31, 2011, respectively		1,763			1,608
Class B common stock, par value $0.01 per share; 600,000,000 shares authorized; 12,439,667 shares issued and outstanding at both June 30, 2012 and December 31, 2011		124			124
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding at both June 30, 2012 and December 31, 2011		6			6
Treasury stock, at cost, 24,117,787 and 23,697,671 shares at June 30, 2012 and December 31, 2011, respectively		(251,915	)		(251,666	)
Additional paid-in-capital		1,517,988			1,526,114
Accumulated deficit		(989,459	)		(985,473	)
Total stockholders’ equity		278,507			290,713
Total liabilities, redeemable preferred stock and stockholders’ equity	$	3,914,456		$	4,040,591

See accompanying notes to the unaudited condensed consolidated financial statements.

3

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except for share and per share data)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Broadcast revenues	$	280,745		$	61,116		$	516,710		$	111,657
Management fees		296			1,125			326			2,250
Net revenues		281,041			62,241			517,036			113,907
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		168,746			35,281			322,442			68,981
Depreciation and amortization		36,200			1,769			71,007			3,677
LMA fees		885			560			1,724			1,141
Corporate general and administrative expenses (including stock-based compensation expense of $5,928, $598, $12,906 and $1,187, respectively)		16,802			9,139			33,494			17,271
Gain on exchange of assets or stations		—			(120	)		—			(15,278	)
Realized loss on derivative instrument		841			1,205			753			1,244
Impairment of intangible assets		12,435			—			12,435			—
Total operating expenses		235,909			47,834			441,855			77,036
Operating income		45,132			14,407			75,181			36,871
Non-operating (expense) income:
Interest expense, net		(49,619	)		(9,178	)		(100,422	)		(15,496	)
Loss on early extinguishment of debt		—			(4,366	)		—			(4,366	)
Other (expense) income, net		(74	)		(92	)		190			(93	)
Total non-operating expense, net		(49,693	)		(13,636	)		(100,232	)		(19,955	)
(Loss) income from continuing operations before income taxes		(4,561	)		771			(25,051	)		16,916
Income tax benefit (expense)		2,798			(1,582	)		10,689			(3,483	)
(Loss) income from continuing operations		(1,763	)		(811	)		(14,362	)		13,433
Income from discontinued operations, net of taxes		9,906			2,152			10,375			4,027
Net income (loss)		8,143			1,341			(3,987	)		17,460
Less: dividends declared and accretion of redeemable preferred stock		6,791			—			12,491			—
Income (loss) attributable to common shareholders	$	1,352		$	1,341		$	(16,478	)	$	17,460
Basic and diluted (loss) income per common share (see Note 12, “Earnings Per Share”):
Basic: (Loss) income from continuing operations per share	$	(0.05	)	$	(0.02	)	$	(0.17	)	$	0.32
Income from discontinued operations per share	$	0.06		$	0.05		$	0.07		$	0.10
Income (loss) per share	$	0.01		$	0.03		$	(0.11	)	$	0.41
Diluted: (Loss) income from continuing operations per share	$	(0.05	)	$	(0.02	)	$	(0.17	)	$	0.31
Income from discontinued operations per share	$	0.06		$	0.05		$	0.07		$	0.09
Income (loss) per share	$	0.01		$	0.03		$	(0.11	)	$	0.40
Weighted average basic common shares outstanding		157,710,861			40,762,233			153,540,006			40,667,773
Weighted average diluted common shares outstanding		157,710,861			40,762,233			153,540,006			41,725,933

See accompanying notes to the unaudited condensed consolidated financial statements.

4

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Six Months Ended June 30,
	2012			2011
Cash flows from operating activities:
Net (loss) income	$	(3,987	)	$	17,460
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		72,242			4,012
Amortization of debt issuance costs/discounts		5,061			733
Provision for doubtful accounts		1,598			644
(Gain) loss on sale of assets or stations		(183	)		93
Gain on exchange of assets or stations		—			(15,278	)
Impairment of intangible assets		12,435			—
Fair value adjustment of derivative instruments		1,003			(2,439	)
Deferred income taxes		(14,302	)		4,299
Stock-based compensation expense		12,906			1,187
Loss on early extinguishment of debt		—			4,366
Changes in assets and liabilities:
Restricted cash		—			4
Accounts receivable		4,789			(2,979	)
Trade receivable		(1,211	)		(544	)
Prepaid expenses and other current assets		(1,217	)		487
Other assets		(715	)		710
Accounts payable and accrued expenses		(31,407	)		8,011
Trade payable		393			504
Other liabilities		(2,215	)		(948	)
Net cash provided by operating activities		55,190			20,322
Cash flows from investing activities:
Proceeds from sale of assets or stations		426			—
Capital expenditures		(1,919	)		(1,505	)
Purchase of intangible assets		—			(170	)
Net cash used in investing activities		(1,493	)		(1,675	)
Cash flows from financing activities:
Repayment of borrowings under term loans and revolving credit facilities		(57,000	)		(593,754	)
Tax withholding payments on behalf of employees		(1,909	)		(666	)
Preferred stock dividends		(6,458	)		—
Exercise of warrants		161			19
Proceeds from issuance of senior notes		—			610,000
Deferred financing costs		—			(17,507	)
Net cash used in financing activities		(65,206	)		(1,908	)
(Decrease) increase in cash and cash equivalents		(11,509	)		16,739
Cash and cash equivalents at beginning of period		30,592			12,814
Cash and cash equivalents at end of period	$	19,083		$	29,553
Supplemental disclosures of cash flow information:
Interest paid	$	97,441		$	12,214
Income taxes paid		2,909			144
Supplemental disclosures of non-cash flow information:
Compensation held in trust		24,807			—
Trade revenue		13,642			7,611
Trade expense		12,705			7,326

See accompanying notes to the unaudited condensed consolidated financial statements.

5

CUMULUS MEDIA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Description of Business, Interim Financial Data and Basis of Presentation:

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.

Nature of Business

Cumulus Media believes it is the largest pure-play radio broadcaster in the United States based on number of stations. At June 30, 2012, Cumulus Media owned or operated more than 570 radio stations (including under local marketing agreements, or “LMAs”) in 120 United States media markets and a nationwide radio network serving over 4,000 stations.

Interim Financial Data

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company and the notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. The accompanying unaudited interim condensed consolidated financial statements include the condensed consolidated accounts of Cumulus and its wholly-owned subsidiaries, with all significant intercompany balances and transactions eliminated in consolidation. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of results of operations for, and financial condition as of the end of, the interim periods have been made. The results of operations for the three and six months ended June 30, 2012, the cash flows for the six months ended June 30, 2012 and the Company’s financial condition as of June 30, 2012, are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition as of, any other interim period or for the fiscal year ending December 31, 2012.

The preparation of financial statements in conformity with 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 evaluates its estimates, including those related to bad debts, intangible assets, derivative financial instruments, income taxes, stock-based compensation, contingencies, litigation and purchase price allocations. The Company bases 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 under different assumptions or conditions.

Reclassifications

Certain reclassifications have been made to prior year amounts to conform to the current year presentation. Certain assets were classified as held for sale as of June 30, 2012 (see Note 3, “Discontinued Operations”). The results of operations associated with these assets were separately reported, net of the related tax impact, for all periods presented in the accompanying condensed consolidated statements of operations because the operations and cash flows generated by these assets will be eliminated from the Company’s consolidated results of operations as a result of the disposal transaction and the Company will not have continuing involvement in the operations of the stations after their disposal.

Recent Accounting Pronouncements

ASU 2011-04. In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, which amends Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, to achieve common fair value measurement and disclosure requirements under GAAP and International Financial Reporting Standards (“IFRS”). This standard gives clarification for the highest and best use valuation concepts. The ASU also provides guidance on fair value measurements relating to instruments classified in stockholders’ equity and instruments managed within a portfolio. Further, ASU 2011-04 clarifies disclosures for financial instruments categorized within level 3 of the fair value hierarchy that require companies to provide quantitative information about unobservable inputs used, the sensitivity of the measurement to changes in those inputs, and the valuation processes used by the reporting entity. The Company adopted the prescribed disclosures which became effective January 1, 2012, for its condensed consolidated financial statements as of such date. See Note 8, “Fair Value Measurements.”

ASU 2011-05. In June 2011, the FASB issued ASU 2011-05, which amends the guidance in ASC Topic 220, “Comprehensive Income,” by eliminating the option to present components of other comprehensive income (“OCI”) in the statement of stockholders’ equity. This ASU requires entities to present all non-owner changes in stockholders’ equity either as a single continuous statement of comprehensive income or as two separate but consecutive statements of income and comprehensive income. The components of OCI have not changed nor has the guidance on when OCI items are reclassified to net income. Similarly, ASU 2011-05 does not change the

6

guidance to disclose OCI components gross or net of the effect of income taxes, provided that the tax effects are presented on the face of the statement in which OCI is presented, or disclosed in the notes to the financial statements. The Company adopted this guidance effective January 1, 2012. Since the Company has no transactions classified as OCI, the adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements.

ASU 2011-08. In September 2011, the FASB issued ASU 2011-8, which amends ASC Topic 350, Intangibles-Goodwill and Other. The amendments in this ASU give companies the option to first perform a qualitative assessment to determine whether it is more likely than not (a likelihood of more than 50.0%) that the fair value of a reporting unit is less than its carrying amount. If a company concludes that this is the case, it must perform the two-step goodwill impairment test. Otherwise, a company is not required to perform this two-step test. Under the amendments in this ASU, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. The Company adopted this guidance effective January 1, 2012. The adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements.

ASU 2011-11. In December 2011, the FASB issued ASU 2011-11. The amendments in this ASU require companies to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is required to be applied retrospectively for all prior periods presented and is effective for annual periods for fiscal years beginning on or after January 1, 2013, and interim periods within those annual fiscal years. The adoption of this guidance is not expected to have an impact on the Company’s condensed consolidated financial statements.

2. Acquisitions and Dispositions

2012 Acquisitions

The Company did not complete any material acquisitions during the three or six months ended June 30, 2012. However, on July 31, 2012, the Company completed its previously announced sale of 55 stations in eleven non-strategic markets to Townsquare Media, LLC (“Townsquare”) in exchange for ten of Townsquare’s radio stations in Bloomington, IL and Peoria, IL, plus approximately $115.8 million in cash. The transaction is part of the Company’s ongoing efforts to focus on radio stations in top markets and geographically strategic regional clusters. The stations sold by the Company operated in the following markets: Augusta, ME; Bangor, ME; Binghamton, NY; Bismarck, ND; Grand Junction, CO; Killeen-Temple, TX; New Bedford, MA; Odessa-Midland, TX; Presque Isle, ME; Sioux Falls, SD and Tuscaloosa, AL. The Company used the majority of the proceeds to pay down outstanding debt. For additional information about this transaction, see Note 3, “Discontinued Operations.”

2011 Acquisitions

Ann Arbor, Battle Creek and Canton Asset Exchange

On February 18, 2011, the Company completed an asset exchange with Clear Channel Communications, Inc. (“Clear Channel”). As part of the asset exchange, Cumulus acquired eight of Clear Channel’s radio stations located in Ann Arbor and Battle Creek, Michigan in exchange for its radio station in Canton, Ohio. The Company disposed of two of the Battle Creek stations simultaneously with the closing of the transaction to comply with Federal Communications Commission (“FCC”) broadcast ownership limits. The asset exchange was accounted for as a business combination in accordance with FASB’s guidance. The fair value of the assets acquired in the asset exchange was $17.4 million. The Company incurred approximately $0.3 million in acquisition costs related to this transaction and expensed them as incurred through earnings within corporate, general and administrative expense. The $4.3 million allocated to goodwill is deductible for tax purposes. The results of operations for the Ann Arbor and Battle Creek stations acquired, which were not material, have been included in our statements of operations since 2007 when the Company entered into a LMA with Clear Channel to manage the stations. Prior to the asset exchange, the Company did not have any preexisting relationship with Clear Channel with regard to the Canton, Ohio market.

In conjunction with this asset exchange, the Company recorded a net gain of $15.3 million, which is included in gain on exchange of assets or stations in the accompanying condensed consolidated statements of operations in the six months ended June 30, 2011.

The table below summarizes the final purchase price allocation from this asset exchange (dollars in thousands):

Allocation	Amount
Property and equipment	$	1,790
Broadcast licenses		11,190
Goodwill		4,342
Other intangibles		72
Total purchase price		17,394
Less: Carrying value of Canton station		(2,116	)
Gain on asset exchange	$	15,278

7

CMP Acquisition

On August 1, 2011, the Company completed its previously announced acquisition of the remaining 75.0% of the equity interests of Cumulus Media Partners LLC (“CMP”) that it did not already own (the “CMP Acquisition”). The Company had owned 25.0% of CMP’s equity interests since it, together with Bain Capital Partners, LLC (“Bain”), The Blackstone Group L.P. (“Blackstone”) and Thomas H. Lee Partners, L.P. (“THL,” and together with Bain and Blackstone, the “CMP Sellers”), formed CMP in 2005. Pursuant to a management agreement, the Company had been operating CMP’s business since 2006. This management agreement was terminated in connection with the completion of the CMP Acquisition. In connection with the CMP Acquisition, the Company issued 9.9 million shares of its common stock to affiliates of the CMP Sellers. Blackstone received 3.3 million shares of the Company’s Class A common stock and, in accordance with FCC broadcast ownership rules, Bain and THL each received 3.3 million shares of a newly authorized Class D non-voting common stock, par value $0.01 per share (the “Class D common stock”). This Class D common stock was subsequently converted into an equivalent number of shares of the Company’s Class B common stock, par value $0.01 per share (the “Class B common stock”), with substantially identical terms, pursuant to the terms of the Company’s third amended and restated certificate of incorporation (the “Third Amended and Restated Charter”) which became effective upon the effectiveness of the Citadel Acquisition (defined below). Also in connection with the CMP Acquisition, outstanding warrants to purchase 3.7 million shares of common stock of Radio Holdings were amended to instead become exercisable for up to 8.3 million shares of the Company’s common stock. CMP’s operating results have been included in Cumulus’ consolidated financial statements since the date of the completion of the CMP Acquisition.

As a component of the CMP Acquisition, the Company acquired an interest in the San Francisco Baseball Associates L.P. The fair value of this interest as of the date of the CMP Acquisition was $9.8 million. This interest is included in other long-term assets on the Company’s condensed consolidated balance sheet and is carried under the cost method.

Under the acquisition method of accounting for business combinations, the purchase price for the CMP Acquisition has been allocated among the tangible and intangible assets acquired and liabilities assumed based on their fair values as of the acquisition date. Goodwill as of the acquisition date was measured as the excess of consideration over the net acquisition date fair value of the assets acquired and the liabilities assumed. The fair values of the assets acquired and liabilities assumed represent management’s estimates based on information available as of the date of acquisition. The Company fair valued its historical 25.0% equity interest in CMP and recorded a gain of $11.6 million, the difference between the fair value at the date of completion of the CMP Acquisition and the carrying value, which was zero, given CMP’s historical losses. With respect to certain outstanding preferred stock of CMP, the Company recorded $0.5 million in dividends for the period from August 1, 2011, the acquisition date, to September 16, 2011. This preferred stock was redeemed on September 16, 2011 for approximately $41.6 million.

The table below summarizes the final purchase price allocation in the CMP Acquisition (dollars in thousands):

Fair Value of Consideration Transferred	Amount
Fair value of equity consideration to CMP Sellers (1)	$	34,909
Fair value of equity consideration to holders of CMP Restated Warrants (2)		29,021
Preferred stock of CMP (3)		41,069
Fair value of assumed debt		619,234
Total purchase price		724,233
Existing equity interest in CMP (4)		11,636
Total fair value for allocation	$	735,869

(1) Fair value, equal to the closing price of the Company’s Class A common stock on the NASDAQ Global Select Market (“NASDAQ”) on August 1, 2011, of the 9.9 million shares of our common stock issued to affiliates of the CMP Sellers.

(2) Fair value, equal to the closing price of the Company’s Class A common stock on the NASDAQ on August 1, 2011, of the CMP Restated Warrants, which are exercisable for 8.3 million shares of our common stock.

(3) Fair value of preferred stock is the par value of $32.8 million plus cumulative undeclared dividends of $8.3 million.

(4) Equal to the closing price of our Class A common stock on the NASDAQ on August 1, 2011, multiplied by the estimated 3.3 million shares of common stock that we would have received in exchange for the equity interests in CMP that the Company owned immediately prior to the CMP Acquisition.

The table below summarizes the final purchase price allocation in the CMP Acquisition among the tangible and intangible assets acquired, and liabilities assumed, based on management’s estimates of their fair values as of the date of the CMP Acquisition (dollars in thousands):

8

Allocation	Amount
Current assets	$	61,598
Property and equipment		29,092
Broadcast licenses		317,917
Other intangibles		94,422
Goodwill		403,130
Other assets		11,014
Current liabilities		(12,869	)
Other long-term liabilities		(5,730	)
Deferred income taxes		(162,705	)
Total purchase price	$	735,869

The material assumptions utilized in the valuation of intangible assets included overall future market revenue growth rates for the residual year of approximately 2.0% and weighted average cost of capital of 10.5%. Goodwill was equal to the difference between the purchase price and the value assigned to tangible and intangible assets and liabilities. $402.6 million of the acquired goodwill balance is non-deductible for tax purposes. Among the factors considered by management that contributed to the purchase price allocation resulting in the recognition of goodwill were CMP’s high operating margins, strong sales force and employee base, and its overall market presence.

The indefinite-lived intangible assets acquired in the CMP Acquisition consist of broadcast licenses and goodwill. The definite-lived intangible assets acquired in the CMP Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years		Fair Value
Advertising relationships		6	$	94,422

Citadel Acquisition

The Company completed the Citadel Acquisition on September 16, 2011 for an aggregate purchase price of approximately $2.3 billion, consisting of approximately $1.4 billion in cash, the issuance of 23.6 million shares of the Company’s Class A common stock, including 0.9 million restricted shares, warrants to purchase 47.6 million shares of Class A common stock, 2.4 million warrants held in reserve for potential future issuance related to the pending final settlement of certain outstanding unsecured claims arising from Citadel’s emergence from bankruptcy, and the consideration to repay the outstanding debt of Citadel. As a result of the Citadel Acquisition, Citadel became an indirect wholly owned subsidiary of the Company. Citadel’s operating results have been included in Cumulus’ consolidated financial statements since the date of the completion of the Citadel Acquisition.

Also on September 16, 2011 and in connection with the Citadel Acquisition, the Company issued and sold 51.8 million shares of Class A common stock and warrants to purchase 7.8 million shares of Class A common stock to an affiliate of Crestview Partners II, L.P. (“Crestview”), 125,000 shares of Series A preferred stock to an affiliate of Macquarie Capital (USA) Inc. (“Macquarie”), and 4.7 million shares of Class A common stock and immediately exercisable warrants to purchase 24.1 million shares of Class A common stock to UBS Securities LLC (“UBS”) and certain other entities.

In connection with the closing of the Citadel Acquisition and the completion of the Company’s previously announced related global refinancing (the “Global Refinancing”), on September 16, 2011, the Company repaid approximately $1.4 billion in outstanding senior or subordinated indebtedness and other obligations of (a) the Company, (b) certain of the Company’s wholly-owned subsidiaries, and (c) Citadel. This Global Refinancing, and the cash portion of the purchase price paid in the Citadel Acquisition, were funded with (i) $1.325 billion in borrowings under a new first lien term loan, $200.0 million in borrowings under a new first lien revolving credit facility and $790.0 million in borrowings under a new second lien term loan, all as described in more detail in Note 7, “Long-Term Debt,” and (ii) proceeds from the sale of $475.0 million of the Company’s common stock, preferred stock and warrants to purchase common stock to certain investors (see Note 10, “Stockholders’ Equity”). The $610.0 million of 7.75% Senior Notes due 2019 (the “7.75% Senior Notes”) issued by the Company in May 2011 remained outstanding.

In connection with the Citadel Acquisition, the Company completed its previously announced internal restructuring into a holding company structure, which included transferring the remaining assets and operations held directly or indirectly by the Company, other than the equity interests of its direct wholly-owned subsidiary Cumulus Media Holdings Inc. (“Cumulus Holdings”), to Cumulus Holdings (the “Internal Restructuring”).

Also, in connection with the Citadel Acquisition, the Company agreed that it would divest certain stations to comply with FCC ownership limits. These stations were assigned to a trustee under divestiture trusts that comply with FCC rules. The trust agreements stipulate that the Company must fund any operating shortfalls of the activities of the stations in the trusts, and any excess cash flow generated by such stations will be distributed to the Company. The Company has determined that it is the primary beneficiary of the trusts and, accordingly, consolidates the trusts.

9

Under the acquisition method of accounting for business combinations, the purchase price in the Citadel Acquisition has been allocated among the tangible and intangible assets acquired and liabilities assumed based on their fair values as of the acquisition date. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The fair value of the assets acquired and liabilities assumed represent management’s estimates based on information available as of the date of acquisition.

The table below summarizes the final purchase price allocation in the Citadel Acquisition (dollars in thousands):

Fair Value of Consideration Transferred	Amount
Cash consideration to Citadel stockholders	$	1,405,471
Common stock issued to Citadel stockholders (1)		178,122
Stock-based compensation value		576
Cash consideration to Citadel to settle Citadel obligations		736,072
Total purchase price	$	2,320,241

(1) Fair value of the 22.7 million shares of the Company’s common stock and warrants to purchase 47.6 million shares of the Company’s common stock issued in the Citadel Acquisition and 2.4 million warrants held in reserve for potential future issuance related to the pending final settlement of certain outstanding unsecured claims arising from Citadel’s emergence from bankruptcy, based on the closing price of the Company’s Class A common stock on September 15, 2011.

Certain termination-related compensation amounts resulting from the Citadel Acquisition were funded prior to closing and were classified as compensation held in trust on the condensed consolidated balance sheet as of December 31, 2011. These amounts were settled during the first quarter of 2012.

The table below summarizes the final purchase price allocation in the Citadel Acquisition among the tangible and intangible assets acquired, and liabilities assumed, therein based on management’s estimates of their fair values as of the date of the Citadel Acquisition (dollars in thousands):

Allocation	Amount
Current assets	$	328,306
Property and equipment		221,697
Broadcast licenses		1,135,669
Other intangibles		333,480
Goodwill		861,305
Other assets		18,794
Current liabilities		(106,799	)
Other long-term liabilities		(38,660	)
Deferred income taxes		(433,551	)
Total purchase price	$	2,320,241

The material assumptions utilized in the valuation of intangible assets included expected overall future market revenue growth rates for the residual year of approximately 2.0% and a weighted average cost of capital of 10.0%. Goodwill is equal to the difference between the purchase price and the value assigned to tangible and intangible assets and liabilities. $756.6 million of the acquired goodwill balance is non-deductible for income tax purposes. Among the factors considered by management that contributed to the purchase price allocation resulting in the recognition of goodwill were Citadel’s station platform throughout prominent national markets and its overall employee base, including its experienced sales force. During the three and six months ended June 30, 2012, the Company recorded goodwill purchase accounting adjustments primarily related to fair value adjustments of assets and liabilities totaling approximately $9.1 million and $8.3 million, respectively. These adjustments are reflected in the table above.

The indefinite-lived intangible assets acquired in the Citadel Acquisition consist of broadcast licenses and goodwill.

10

The definite-lived intangible assets acquired in the Citadel Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years		Fair Value
Broadcast advertising relationships		6	$	235,800
Affiliate relationships		5		40,700
Network advertising relationships		5		18,300
Other contracts and agreements		2-4		38,680

The following pro forma information assumes the CMP Acquisition and the Citadel Acquisition occurred as of January 1, 2010. The pro forma financial information also includes the business combination accounting effects of the CMP Acquisition and the Citadel Acquisition, including Cumulus’s amortization expense resulting from acquired intangible assets, the elimination of certain intangible asset amortization expense incurred by CMP and Citadel, adjustments to interest expense for certain borrowings, adjustments for transaction-related expenses and the related tax effects. This pro forma financial information has been prepared based on estimates and assumptions, which management believes are reasonable, and is not necessarily indicative of the consolidated financial position or results of operations that Cumulus would have achieved had either the CMP Acquisition or the Citadel Acquisition actually occurred on January 1, 2010 or on any other historical date, nor is it reflective of the Company’s expected actual financial position or results of operations for any future period (dollars in thousands):

	Supplemental Pro Forma Data
Description	Three Months Ended June 30, 2011		Six Months Ended June 30, 2011
Total revenue	$	300,061	$	554,305
Net income		3,666		572

The pro forma financial information set forth above for the three and six months ended June 30, 2011 includes adjustments to reflect: (i) depreciation and amortization expense based on the fair value of long-lived assets acquired in the CMP Acquisition and the Citadel Acquisition; (ii) interest expense assuming the 7.75% Senior Notes were issued and outstanding and replaced the Company’s historical debt for all periods; (iii) the completion of the Global Refinancing undertaken in connection with the completion of the Citadel Acquisition for all periods; and (iv) certain other pro forma adjustments that would be required to be made to prepare pro forma financial information under ASC Topic 805, Business Combinations.

Completed Dispositions

The Company did not complete any material dispositions during the three or six months ended June 30, 2012 or 2011.

3. Discontinued Operations

On July 31, 2012, the Company completed its previously announced sale of 55 stations in eleven non-strategic markets to Townsquare in exchange for ten of Townsquare’s radio stations in Bloomington, IL and Peoria, IL, plus approximately $115.8 million in cash. The transaction is part of the Company’s ongoing efforts to focus on radio stations in top markets and geographically strategic regional clusters. The stations sold by the Company operated in the following markets: Augusta, ME; Bangor, ME; Binghamton, NY; Bismarck, ND; Grand Junction, CO; Killeen-Temple, TX; New Bedford, MA; Odessa-Midland, TX; Presque Isle, ME; Sioux Falls, SD and Tuscaloosa, AL. The Company used a majority of the proceeds to repay outstanding borrowings under its Revolving Credit Facility which amounts are available for further reborrowing, and to repurchase and redeem a portion of its outstanding Series A Preferred Stock. Accordingly, the results of operations associated with these stations were separately reported, net of the related tax impact, for all periods presented in the accompanying condensed consolidated statements of operations, and the aggregate amount of assets to be disposed of has been classified as assets held for sale as of June 30, 2012.

The following table presents the main classes of assets associated with the stations that were held for sale as of June 30, 2012 (dollars in thousands):

	2012
Current lease assets held for sale:
Prepaid expenses and other current assets	$	180
Property and equipment, net		7,668
Broadcast licenses		25,490
Other intangibles, net		6,880
Goodwill		32,132
Total current assets held for sale	$	72,350

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Components of Results of Discontinued Operations

For the three and six months ended June 30, 2012 and 2011, income from discontinued operations was as follows (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Discontinued operations:
Net revenues	$	11,000		$	6,937		$	20,321		$	13,130
Operating income		4,382			2,940			6,769			5,063
Non-operating expense		(5	)		—			(7	)		—
Income from discontinued operations before taxes		4,377			2,940			6,762			5,063
Income tax benefit (expense)		5,529			(788	)		3,613			(1,036	)
Income from discontinued operations	$	9,906		$	2,152		$	10,375		$	4,027

During the three and six months ended June 30, 2012, the Company recognized a $7.2 million deferred tax benefit related to the release of a valuation allowance resulting from the inclusion of deferred tax liabilities on assets previously regarded as having an indefinite life that were classified as held for sale as of June 30, 2012. The deferred tax benefit is reflected in income tax expense for discontinued operations.

4. Restricted Cash

As of June 30, 2012 and December 31, 2011, the Company’s balance sheet includes approximately $3.8 million in restricted cash, of which $2.2 million relates to a cash reserve from the Citadel Acquisition. The reserve is expected to be used to satisfy the remaining allowed, disputed or unreconciled unsecured claims related to Citadel’s prior bankruptcy proceedings. $1.6 million of the restricted cash balance relates to securing the maximum exposure generated by automated clearing house transactions in the Company’s operating bank accounts and as dictated by the Company’s bank’s internal policies with respect to cash.

5. Intangible Assets and Goodwill

The following table presents the changes in intangible assets other than goodwill during the periods from January 1, 2011 to December 31, 2011 and January 1, 2012 to June 30, 2012, and balances as of such dates (dollars in thousands):

	Indefinite-Lived			Definite-Lived			Total
Intangible Assets:
Balance as of January 1, 2011	$	160,418		$	552		$	160,970
Acquisition		11,355			77			11,432
Disposition		(1,533	)		(83	)		(1,616	)
Amortization		—			(41	)		(41	)
Balance as of June 30, 2011	$	170,240		$	505		$	170,745
Balance as of January 1, 2012		1,625,415			390,509			2,015,924
Current assets held for sale		(25,490	)		(6,880	)		(32,370	)
Purchase price allocation adjustments		(1,581	)		957			(624	)
Impairment		—			(12,435	)		(12,435	)
Disposition		(116	)		—			(116	)
Amortization		—			(56,612	)		(56,612	)
Balance as of June 30, 2012	$	1,598,228		$	315,539		$	1,913,767

12

The following table presents the changes in goodwill and accumulated impairment losses during the periods from January 1, 2012 to June 30, 2012 and January 1, 2011 to June 30, 2011, and balances as of such dates (dollars in thousands):

	2012			2011
Balance as of January 1:
Goodwill	$	1,564,253		$	285,820
Accumulated impairment losses		(229,741	)		(229,741	)
Subtotal		1,334,512			56,079
Acquisition		—			4,343
Current assets held for sale		(32,132	)		—
Purchase price allocation adjustments		(9,550	)		—
Disposal		(105	)		—
Balance as of June 30:
Goodwill		1,522,466			290,163
Accumulated impairment losses		(229,741	)		(229,741	)
Total	$	1,292,725		$	60,422

In connection with each of the CMP Acquisition and the Citadel Acquisition, the Company made certain allocations of the purchase price paid therein among each of the tangible and intangible assets and liabilities acquired, including goodwill. Adjustments to these allocations are reflected as purchase price allocation adjustments during the periods ended December 31, 2011 and June 30, 2012 and are included in the acquisition balances as of such dates. Purchase price allocation adjustments during the six months ended June 30, 2012 were primarily related to fair value adjustments of certain acquired broadcast licenses, property and equipment, current assets and current liabilities.

The Company has significant intangible assets recorded comprised primarily of indefinite-lived broadcast licenses, definite-lived advertiser relationships and goodwill acquired through the acquisition of radio stations. The Company reviews the carrying value of its indefinite-lived intangible assets and goodwill at least annually for impairment and on an interim basis if events or circumstances indicate that such assets may be impaired. If the carrying value exceeds the estimate of fair value, the Company calculates the impairment as the excess of the carrying value of goodwill over its estimated fair value and charges the impairment to results of operations. The Company reviews the carrying value of its definite-lived intangible assets for recoverability whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. During the quarter ended June 30, 2012, the Company recognized an impairment of $12.4 million of a definite-lived intangible asset related to the cancellation of an underlying contract.

6. Derivative Financial Instruments

The Company’s derivative financial instruments are as follows:

Interest Rate Cap

On December 8, 2011, the Company entered into an interest rate cap agreement with JPMorgan Chase Bank, N.A. (“JPMorgan”), to limit the Company’s exposure to interest rate risk. The interest rate cap has an aggregate notional amount of $71.3 million. The agreement caps the LIBOR-based variable interest rate component of the Company’s long-term debt at a maximum of 3.0% on an equivalent amount of the Company’s term loans. The condensed consolidated balance sheets as of June 30, 2012 and December 31, 2011 include long-term assets of $0.1 million and $0.4 million, respectively, attributable to the fair value of the interest rate cap. The Company reported interest expense of $0.2 million and $0.3 million during the three and six months ended June 30, 2012, respectively, inclusive of the change in fair value adjustment. The interest rate cap matures on December 8, 2015.

The Company does not utilize financial instruments for trading or other speculative purposes.

Green Bay Option

On April 10, 2009, Clear Channel and the Company entered into an LMA whereby the Company is responsible for operating (i.e., programming, advertising, etc.) five radio stations in Green Bay, Wisconsin and must pay Clear Channel a monthly fee of approximately $0.2 million over a five year term (expiring December 31, 2013), in exchange for the Company retaining the operating profits from managing the radio stations. Clear Channel also has a put option (the “Green Bay Option”) that allows it to require the Company to purchase the five Green Bay radio stations at any time during the two-month period commencing July 1, 2013 (or earlier if the LMA is terminated before this date) for $17.6 million (the fair value of the radio stations as of April 10, 2009). The Company accounts for the Green Bay Option as a derivative contract. Accordingly, the fair value of the Green Bay Option was recorded as a liability offsetting the gain at the acquisition date with subsequent changes in the fair value recorded through earnings. The fair value of the Green Bay Option was determined using inputs that are supported by little or no market activity (a “Level 3” measurement). The fair value represents an estimate of the net amount that the Company would pay if the option was transferred to another party as of the date of the valuation.

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The condensed consolidated balance sheets as of June 30, 2012 and December 31, 2011 reflect other long-term liabilities of $12.2 million and $11.4 million, respectively, to include the fair value of the Green Bay Option. The Company recorded $0.8 million of expense in realized losses on derivative instruments associated with marking to market the Green Bay Option to reflect the fair value of the option during each of the three and six months ended June 30, 2012 and $1.2 million of expense in realized losses on derivative instruments for each of the three and six months ended June 30, 2011.

May 2005 Option

In May 2005, the Company entered into an interest rate option agreement (the “May 2005 Option”), that provided Bank of America, N.A. the right to enter into an underlying swap agreement with the Company, for two years, from March 13, 2009 through March 31, 2011.

The May 2005 Option was exercised on March 11, 2009. This instrument was not highly effective in mitigating the risks in the Company’s cash flows, and therefore the Company deemed it speculative and accounted for the changes in the May 2005 Option’s value as a current element of interest expense. The May 2005 Option expired on March 13, 2011 in accordance with the terms of the original agreement. The Company reported interest income related to this option of $0.0 million and $3.7 million, inclusive of the fair value adjustment during the three and six months ended June 30, 2011, respectively.

The location and fair value amounts of derivatives in the unaudited condensed consolidated balance sheets are shown in the following table (dollars in thousands):

		Fair Value
Derivative Instruments	Balance Sheet Location	June 30, 2012			December 31, 2011
Derivatives not designated as hedging instruments:
Interest rate cap	Other long-term assets	$	126		$	376
Green Bay Option	Other long-term liabilities		(12,151	)		(11,398	)
	Total	$	(12,025	)	$	(11,022	)

The location of income or expense recognized due to adjustments to the fair values of derivatives in the unaudited condensed consolidated statements of operations are shown in the following table (dollars in thousands):

		Amount of Expense (Income) Recognized on Derivatives
		For the Three Months Ended June 30,				For the Six Months Ended June 30,
Derivative Instruments	Statement of Operations Location	2012		2011		2012		2011
Interest rate cap	Interest expense	$	165	$	—	$	250	$	—
Green Bay Option	Realized losses on derivative instrument		841		1,204		753		1,244
May 2005 Option	Interest income		—		—		—		(3,683	)
	Total	$	1,006	$	1,204	$	1,003	$	(2,439	)

7. Long-Term Debt

The Company’s long-term debt consisted of the following as of June 30, 2012 and December 31, 2011 (dollars in thousands):

	June 30, 2012			December 31, 2011
Term loan and revolving credit facilities:
First Lien Term Loan	$	1,318,000		$	1,325,000
Second Lien Term Loan		790,000			790,000
Revolving Credit Facility		100,000			150,000
Less: Term loan discount		(22,760	)		(24,463	)
Total term loan and revolving credit facilities		2,185,240			2,240,537
7.75% Senior Notes		610,000			610,000
Less: Current portion of long-term debt		(13,250	)		(13,250	)
Long-term debt, net	$	2,781,990		$	2,837,287

First Lien and Second Lien Credit Facilities

On September 16, 2011, to complete the Global Refinancing, the Company entered into a (i) First Lien Credit Agreement (the “First Lien Facility”), among the Company, Cumulus Holdings, as Borrower, certain lenders, JPMorgan as Administrative Agent, UBS, Macquarie, Royal Bank of Canada and ING Capital LLC, as Co-Syndication Agents, and U.S. Bank National Association and Fifth Third Bank, as Co-Documentation Agents; and (ii) Second Lien Credit Agreement (the “Second Lien Facility” and, together with the First Lien Facility, the “2011 Credit Facilities”), among the Company, Cumulus Holdings, as Borrower, certain lenders, JPMorgan, as Administrative Agent, and UBS, Macquarie, Royal Bank of Canada and ING Capital LLC, as Co-Syndication Agents.

The First Lien Facility consists of a $1.325 billion first lien term loan facility, net of an original issue discount of $13.5 million, maturing in September 2018 (the “First Lien Term Loan”), and a $300.0 million revolving credit facility, maturing in September 2016 (the “Revolving Credit Facility”). Under the Revolving Credit Facility, up to $30.0 million of availability may be drawn in the form of letters of credit and up to $30.0 million is available for swingline borrowings. The Second Lien Facility consists of a $790.0 million second lien term loan facility, net of an original issue discount of $12.0 million, maturing in September 2019 (the “Second Lien Term Loan”).

14

At June 30, 2012, there was $1.318 billion outstanding under the First Lien Term Loan, $100.0 million outstanding under the Revolving Credit Facility and $790.0 million outstanding under the Second Lien Term Loan.

Proceeds from borrowings under the First Lien Facility and Second Lien Facility were used, together with certain other funds, to (i) fund the cash portion of the purchase price paid in the Citadel Acquisition; (ii) repay in full amounts outstanding under the revolving credit facility under the Company’s pre-existing credit agreement (the “Terminated Credit Agreement”); (iii) repay all amounts outstanding under the credit facilities of CMP Susquehanna Corporation (“CMPSC”), an indirect wholly-owned subsidiary of CMP; (iv) redeem CMPSC’s outstanding 9.875% senior subordinated notes due 2014 and variable rate senior secured notes due 2014; (v) redeem in accordance with their terms all outstanding shares of preferred stock of CMP Susquehanna Radio Holdings Corp., an indirect wholly-owned subsidiary of CMP (“Radio Holdings”) and the direct parent of CMPSC; and (vi) repay all amounts outstanding, including any accrued interest and the premiums thereon, under Citadel’s pre-existing credit agreement and to redeem its 7.75% Senior Notes.

Borrowings under the First Lien Facility bear interest, at the option of Cumulus Holdings, based on the Base Rate (as defined below) or the London Interbank Offered Rate (“LIBOR”), in each case plus 4.5% on LIBOR-based borrowings and 3.5% on Base Rate-based borrowings. LIBOR-based borrowings are subject to a LIBOR floor of 1.25% for the First Lien Term Loan and 1.0% for the Revolving Credit Facility. Base Rate-based borrowings are subject to a Base Rate Floor of 2.25% for the First Lien Term Loan and 2.0% for the Revolving Credit Facility. Base Rate is defined, for any day, as the fluctuating 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, as established from time to time, and (iii) 30 day LIBOR plus 1.0%. The First Lien Term Loan amortizes at a per annum rate of 1.0% of the original principal amount of the First Lien Term Loan, payable quarterly, which commenced on March 31, 2012, with the balance payable on the maturity date. Amounts outstanding under the Revolving Credit Facility are due and payable on the maturity date.

Borrowings under the Second Lien Facility bear interest, at the option of Cumulus Holdings, at either the Base Rate plus 5.0%, subject to a Base Rate floor of 2.5%, or LIBOR plus 6.0%, subject to a LIBOR floor of 1.5%. The Second Lien Term Loan original principal amount is due on the maturity date, September 16, 2019.

Interest on Base Rate-based borrowings is due on the last day of each calendar quarter, except with respect to swingline loans, for which interest is due on the day that such swingline loan is required to be repaid. Interest payments on loans whose interest rate is based upon LIBOR are due at maturity if the term is three months or less or every three months and at maturity if the term exceeds three months.

At June 30, 2012, borrowings under the First Lien Term Loan bore interest at 5.75% per annum, borrowings under the Revolving Credit Facility bore interest at 5.50% per annum and borrowings under the Second Lien Term Loan bore interest at 7.50% per annum. The Company’s interest rate cap agreement with JPMorgan caps the interest rate on an equivalent amount of the Company’s LIBOR-based term loans at a maximum of 3.0% per annum. See Note 6, “Derivative Financial Instruments” for additional information.

The representations, covenants and events of default in the 2011 Credit Facilities and financial covenants in the First Lien Facility are customary for financing transactions of this nature. Events of default in the 2011 Credit Facilities include, among others: (a) the failure to pay when due the obligations owing under the credit facilities; (b) the failure to comply with (and not timely remedy, if applicable) certain financial covenants (as required by the First Lien Facility); (c) certain cross defaults and cross accelerations; (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 First Lien Facility and the Second Lien Facility, as applicable). 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 First Lien Facility and the Second Lien Facility, as applicable, and the ancillary loan documents as a secured party.

As a result of amounts being outstanding under the Revolving Credit Facility as of June 30, 2012, the First Lien Facility required compliance with a consolidated total net leverage ratio of 7.50 to 1.0 as of such date. Such ratio will be reduced in future periods if amounts remain outstanding under the Revolving Credit Facility at an applicable date. The Second Lien Facility does not contain any financial covenants.

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

At June 30, 2012, the Company was in compliance with all of the required covenants under the First Lien Facility.

15

Certain mandatory prepayments on the First Lien Term Loan and the Second Lien 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 First Lien Facility and the Second Lien Facility are collateralized by a first priority lien and second priority lien, respectively, on substantially all of the Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ assets 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 subsidiaries and 66.0% of the capital stock of any future first-tier foreign subsidiaries. In addition, Cumulus Holdings’ obligations under the First Lien Facility and the Second Lien Facility are guaranteed by the Company and substantially all of its restricted subsidiaries, other than Cumulus Holdings.

7.75% Senior Notes

On May 13, 2011, the Company issued $610.0 million aggregate principal amount of 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 Terminated Credit Agreement.

In connection with the Internal Restructuring, 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 each May 1 and November 1, commencing November 1, 2011. 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 on or after May 1, 2015. At any time prior to May 1, 2014, Cumulus Holdings may also redeem up to 35.0% of the 7.75% Senior Notes using the proceeds from certain equity offerings. At any time prior to May 1, 2015, Cumulus Holdings may redeem some or all of the 7.75% Senior Notes 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.

In connection with the substitution of Cumulus Holdings as the issuer of the 7.75% Senior Notes, the Company has 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.

For the three and six months ended June 30, 2012, the Company recorded an aggregate of $2.1 million and $5.1 million, respectively, of amortization costs related to its First Lien and Second Lien Credit Facilities and 7.75% Senior Notes.

8. Fair Value Measurements

The three levels of the fair value hierarchy to be applied to financial instruments when determining fair value 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.

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A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial assets and liabilities are measured at fair value on a recurring basis. Financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 were as follows (dollars in thousands):

				Fair Value Measurements at Reporting Date Using
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Interest rate cap (1)	$	126		$	—	$	126	$	—
Financial liabilities:
Other long-term liabilities
Green Bay Option (2)	$	(12,151	)	$	—	$	—	$	(12,151	)

(1) The Company is party to an interest rate cap pursuant to which the Company pays a fixed interest rate on a $71.3 million notional amount of its term loans. The fair value of the Company’s interest rate cap is determined based on a discounted cash flow analysis on the expected future cash flows using observable inputs, including interest rates and yield curves. Derivative valuations incorporate adjustments that are necessary to reflect the credit risk.

(2) The fair value of the Green Bay Option was determined using certain significant unobservable inputs (a Level 3 measurement). The fair value represents an estimate of the net amount that the Company would pay if the option were transferred to another party as of the date of the valuation. The option valuation incorporates a credit risk adjustment to reflect the probability of default by the Company.

The assets associated with the Company’s interest rate cap are measured within Level 2 on the fair value hierarchy. To estimate the fair value of the interest rate cap, the Company used an industry standard cash valuation model, which utilizes a discounted cash flow approach, with all significant inputs derived from or corroborated by observable market data. See Note 6, “Derivative Financial Instruments.”

The reconciliation below contains the components of the change in fair value associated with the Green Bay Option from January 1, 2012 to June 30, 2012 (dollars in thousands):

Description	Green Bay Option
Fair value balance at January 1, 2012	$	(11,398	)
Add: Mark to market fair value adjustment		(753	)
Fair value balance at June 30, 2012	$	(12,151	)

Quantitative information regarding the significant unobservable inputs related to the Green Bay Option as of June 30, 2012 were as follows (dollars in thousands):

Fair Value	Valuation Technique	Unobservable Inputs
$ (12,151)	Black-Scholes Model	Risk adjusted discount rate	7.8	%
		Total term	1.2 years
		Volatility rate	47.4	%
		Annual dividend rate	0.0	%
		Bond equivalent yield discount rate	0.2	%

Significant increases (decreases) in any of the inputs in isolation would result in a lower (higher) fair value measurement. For example, a decrease in the risk adjusted discount rate would result in a higher liability.

The carrying values of receivables, payables, and accrued expenses approximate their respective fair values due to the short maturity of these instruments.

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The Company’s long-term debt is classified within Level 2 of the fair value hierarchy. The following table shows the gross amounts and fair value of the Company’s First Lien Term Loan, Second Lien Term Loan, Revolving Credit Facility and 7.75% Senior Notes (dollars in thousands):

	June 30, 2012		December 31, 2011
First Lien Term Loan:
Carrying value	$	1,318,000	$	1,325,000
Fair value		1,321,295		1,305,125
Second Lien Term Loan:
Carrying value	$	790,000	$	790,000
Fair value		795,925		770,250
Revolving Credit Facility:
Carrying value	$	100,000	$	150,000
Fair value		100,000		150,000
7.75% Senior Notes:
Carrying value	$	610,000	$	610,000
Fair value		574,132		541,680

As of June 30, 2012, the Company used the trading prices of 100.3% and 100.8% to calculate the fair value of the First Lien Term Loan and Second Lien Term Loan, respectively, and 94.1% to calculate the fair value of the 7.75% Senior Notes.

As of December 31, 2011, the Company used the trading prices of 98.5% and 97.5% to calculate the fair value of the First Lien Term Loan and Second Lien Term Loan, respectively, and 88.8% to calculate the fair value of the 7.75% Senior Notes.

9. Redeemable Preferred Stock

The Company designated 2,000,000 shares of its authorized preferred stock as Series A, par value $0.01 per share, with a liquidation preference of $1,000 per share (“Series A Preferred Stock”). In connection with the Equity Investment, the Company issued 125,000 shares of Series A Preferred Stock for an aggregate amount of $125.0 million. Net proceeds to the Company were $110.7 million after deducting $14.3 million in fees. No other shares of Series A Preferred Stock are issuable in the future, except for such shares as may be issued as dividends in lieu of any cash dividends in accordance with the terms thereof, and the Series A Preferred Stock ranks senior to all common stock and each series of stock the Company may subsequently designate with respect to dividends, redemption and distributions upon liquidation, winding-up and dissolution of the Company.

The Series A Preferred Stock has a perpetual term, a liquidation value equal to the amount invested therein plus any accrued but unpaid dividends, and dividend rights as described below. The Series A Preferred Stock generally does not have voting rights, except with respect to any amendment to the Company’s Third Amended and Restated Charter that would adversely affect the rights, privileges or preferences of the Series A Preferred Stock. Although the shares of Series A Preferred Stock include a mandatory redemption feature, there is no stated or probable date of redemption.

Holders of Series A Preferred Stock are entitled to receive mandatory and cumulative dividends in an amount per annum equal to the dividend rate (described below) multiplied by the liquidation value, calculated on the basis of a 360-day year, from the date of issuance, whether or not declared and whether or not the Company reports net income. The dividends are payable in arrears in cash, except that, at the option of the Company, up to 50.0% of the dividends for any period may be paid through the issuance of additional shares of Series A Preferred Stock. Payment of dividends on the Series A Preferred Stock is in preference and prior to any dividends payable on any class of the Company’s common stock.

Dividends on the Series A Preferred Stock accrued at an annual rate of 10.0% from the date of issuance of the Series A Preferred Stock through March 15, 2012. After such date, dividends accrue at an annual rate as follows:

• 14.0% through September 15, 2013;

• 17.0% plus the increase in the 90-day LIBOR from September 16, 2011 to September 16, 2013 for the period commencing on September 16, 2013 and ending on September 15, 2015; and

• 20.0% plus the increase in the 90-day LIBOR from September 16, 2011 to September 16, 2015 for all periods commencing on or after September 16, 2015, with an adjustment to the rate every two years thereafter.

During the three and six months ended June 30, 2012, the Company accrued $4.4 million and $7.7 million, respectively, in dividends, paid $3.3 million and $6.5 million, respectively, in cash dividends and accreted $2.4 million and $4.8 million, respectively, on the Series A Preferred Stock. There were no similar dividend payments or accretions related to the Series A Preferred Stock during the three and six months ended June 30, 2011. The accretion of Series A Preferred Stock resulted in an equivalent reduction in additional paid-in capital on the condensed consolidated balance sheets at June 30, 2012 and December 31, 2011.

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10. Stockholders’ Equity

The Company is authorized to issue an aggregate of 1,450,644,871 shares of stock divided into four classes consisting of: (i) 750,000,000 shares designated as Class A common stock, (ii) 600,000,000 shares designated as Class B common stock, (iii) 644,871 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 (see Note 9, “Redeemable Preferred Stock”). Effective September 16, 2011, upon the filing of the Third Amended and Restated Charter, each then-outstanding share of Class D common stock was converted to one share of Class B common stock.

As discussed in Note 2, “Acquisitions and Dispositions,” the Company completed the CMP Acquisition on August 1, 2011. In connection with the CMP Acquisition, the Company issued approximately 3.3 million shares of Class A common stock and 6.6 million shares of Class B common stock to affiliates of the three private equity firms that had collectively owned the 75.0% of CMP not then-owned by the Company. Also in connection with the CMP Acquisition, the 3.7 million outstanding CMP Restated Warrants were amended to become exercisable for up to 8.3 million shares of Class B common stock.

As also discussed in Note 2, “Acquisitions and Dispositions,” the Company completed the Citadel Acquisition on September 16, 2011. In connection with the Citadel Acquisition, the Company issued 23.6 million shares of Class A common stock, including 0.9 million restricted shares, and warrants to purchase 47.6 million shares of Class A common stock (the “Citadel Warrants”) to holders of Citadel’s common stock and warrants. Additionally, 2.4 million warrants to purchase shares of the Company’s common stock related to the pending final settlement of certain outstanding unsecured claims arising from Citadel’s emergence from bankruptcy in June 2010 are held in reserve for potential future issuance by the Company.

On September 16, 2011, pursuant to the Equity Investment, the Company issued and sold (i) 51.8 million shares of Class A common stock and warrants to purchase 7.8 million shares of Class A common stock with an exercise price of $4.34 per share (the “Crestview Warrants”) to an affiliate of Crestview; (ii) 125,000 shares of Series A Preferred Stock to an affiliate of Macquarie (see Note 9, “Redeemable Preferred Stock”); and (iii) 4.7 million shares of Class A common stock and warrants to purchase 24.1 million shares of Class A common stock (the “UBS Warrants,” and, together with the Citadel Warrants, the “Company Warrants”) to UBS and certain other investors to whom UBS syndicated a portion of its investment commitment.

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:

• 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 to 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 Class A common stock 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.

After payment of dividends to the holders of Series A Preferred Stock, the holders of Common Stock share ratably in any dividends that may be declared by the board of directors of the Company.

2009 Warrants

As described above, in June 2009, in connection with the execution of an amendment to the Terminated Credit Agreement, the Company issued the 2009 Warrants. The 2009 Warrants expire on June 29, 2019. Each 2009 Warrant is immediately exercisable to purchase Class A common stock at an exercise price of $1.17 per share. 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. At June 30, 2012, 1.1 million 2009 Warrants remain outstanding.

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CMP Restated Warrants

As described above and in connection with the completion of the CMP Acquisition, Radio Holdings entered into an amended and restated warrant agreement, dated as of August 1, 2011 (the “Restated Warrant Agreement”). Pursuant to the Restated Warrant Agreement, and subject to the terms and conditions thereof, the previously outstanding 3.7 million Radio Holdings warrants were amended and restated to no longer be exercisable for shares of common stock of Radio Holdings but instead be exercisable, commencing on May 2, 2012 (the “Exercise Date”) at an exercise price of $0.01 per share, for an aggregate of approximately 8.3 million shares of Class B common stock (the “CMP Restated Warrants”). The CMP Restated Warrants expired by their terms on July 31, 2012, which was the 90th day succeeding the Exercise Date. Through June 30, 2012, approximately 0.3 million CMP Restated Warrants were converted into approximately 0.6 million shares of common stock and, as of June 30, 2012, CMP Restated Warrants exercisable for an aggregate of 7.7 million shares of Class B common stock (which are convertible into an equivalent number of shares of Class A common stock, subject to certain limitations) remained outstanding.

Equity Held in Reserve

Citadel emerged from bankruptcy effective June 3, 2010 and, as of September 16, 2011, certain bankruptcy-related claims against Citadel remained open for final resolution. As part of the Citadel Acquisition and as of June 30, 2012, warrants to purchase 2.4 million shares of the Company’s common stock were reserved for potential future issuance in connection with the settlement of these remaining allowed, disputed or unreconciled unsecured claims. If excess shares remain in reserve after resolution of all remaining allowed, disputed or unreconciled unsecured claims, such shares will be distributed to the claimants with allowed unsecured claims pro-rata, based on the number of shares they received pursuant to the plan under which Citadel emerged from bankruptcy. This equity held in reserve is included in additional paid—on capital on the condensed consolidated balance sheets at June 30, 2012 and December 31, 2011.

Company Warrants

At the effective time of the Citadel Acquisition, the Company issued the Company Warrants. The Company Warrants were issued under a warrant agreement (the “Warrant Agreement”), dated September 16, 2011, and the Company Warrants entitle the holders thereof to purchase an equivalent number of shares of Class A common stock. The Company Warrants are exercisable at any time prior to June 3, 2030 at an exercise price of $0.01 per share. The exercise price of the Company Warrants is not subject to any anti-dilution protection, other than standard adjustments in the case of stock splits, dividends and the like. 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 shall 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.

During the six months ended June 30, 2012, approximately 14.9 million Company Warrants were converted into shares of Class A common stock with an aggregate total of 32.4 million being converted since issuance through June 30, 2012. At June 30, 2012, 39.2 million Company Warrants remained outstanding.

Crestview Warrants

Pursuant to the Equity Investment, but pursuant to a separate warrant agreement, the Company issued the Crestview Warrants. The 7.8 million Crestview Warrants are exercisable until September 16, 2021 and the $4.34 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 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 the like. As of June 30, 2012, all 7.8 million Crestview Warrants remained outstanding.

11. Stock-Based Compensation Expense

On February 16, 2012, the Company granted 161,724 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. In addition, on February 16, 2012, the Company granted time-vesting stock options to purchase 1,357,500 shares of Class A common stock to certain Company employees under the Cumulus Media Inc. 2011 Equity Incentive Plan with an aggregate grant date fair value of $3.0 million. The options have an exercise price of $4.34 per share and provide for 30% vesting on each of September 16, 2012 and February 16, 2013 and 20% vesting on each of February 16, 2014 and 2015.

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The Company has certain liability-based awards related to the cash consideration portion of the Citadel Acquisition (“Liability Awards”). For the three and six months ended June 30, 2012, the Company recognized approximately $2.7 million and $6.9 million, respectively, in stock-based compensation expense related to Liability Awards and $3.2 million and $6.0 million in stock-based compensation expense related to equity awards. For the three and six months ended June 30, 2011, the Company recognized approximately $0.6 million and $1.2 million, respectively, of stock-based compensation expense.

As of June 30, 2012, unrecognized stock-based compensation expense of approximately $23.2 million related to equity awards is expected to be recognized over a weighted average remaining life of 2.7 years. There is no unrecognized stock-based compensation expense related to Liability Awards as of June 30, 2012. Unrecognized stock-based compensation expense will be adjusted for future changes in estimated forfeitures.

The total fair value of restricted stock awards that vested during the six months ended June 30, 2012 was $19.1 million, of which $13.2 million related to the Company’s Liability Awards and was paid in cash. The total fair value of restricted stock awards that vested during the six months ended June 30, 2011 was $2.1 million. No options were exercised during either of the six months ended June 30, 2012 or 2011.

12. Earnings Per Share (“EPS”)

For all periods presented, the Company has disclosed basic and diluted earnings per common share utilizing the two-class method. Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. The Company allocates undistributed net income between each class of common stock on an equal basis as required pursuant to the Company’s Third Amended and Restated Charter.

Non-vested restricted shares of Class A common stock, the Company Warrants and the CMP Restated Warrants are considered participating securities for purposes of calculating basic weighted average common shares outstanding in periods in which the Company records net income available to common shareholders. Diluted earnings per share is computed in the same manner as basic earnings per share after assuming issuance of common stock for all potentially dilutive equivalent shares, which includes 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 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. Because the Company has not historically paid dividends to common stockholders, earnings are allocated to each participating security and common share equally, after deducting dividends declared on the Series A Preferred Stock. The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2012 and 2011 (amounts in thousands, except per share data):

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	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Basic (Loss) Earnings Per Share
Numerator:
Undistributed net (loss) income from continuing operations	$	(1,763	)	$	(811	)	$	(14,362	)	$	13,433
Less:
Dividends declared		4,375			—			7,708			—
Accretion of redeemable preferred stock		1,852			—			4,620			—
Participation rights of unvested restricted stock in undistributed earnings		—			—			—			542
Basic undistributed net (loss) income from continuing operations - attributable to common shares	$	(7,990	)	$	(811	)	$	(26,690	)	$	12,891
Denominator:
Basic weighted average shares outstanding		157,711			40,762			153,540			40,668
Basic (loss) income from continuing operations common shares per share - attributable to common shares	$	(0.05	)	$	(0.02	)	$	(0.17	)	$	0.32
Diluted (Loss) Earnings Per Share:
Numerator:
Undistributed net (loss) income from continuing operations	$	(1,763	)	$	(811	)	$	(14,362	)	$	13,433
Less:
Dividends declared		4,375			—			7,708			—
Accretion of redeemable preferred stock		1,852			—			4,620			—
Participation rights of unvested restricted stock in undistributed earnings		—			—			—			529
Basic undistributed net (loss) income from continuing operations - attributable to common shares	$	(7,990	)	$	(811	)	$	(26,690	)	$	12,904
Denominator:
Basic weighted average shares outstanding		157,711			40,762			153,540			40,668
Effect of dilutive options and warrants		—			—			—			1,058
Diluted weighted average shares outstanding		157,711			40,762			153,540			41,726
Diluted (loss) earnings from continuing operations common shares per share - attributable to common shares	$	(0.05	)	$	(0.02	)	$	(0.17	)	$	0.31

Potentially dilutive equivalent shares outstanding for the three and six months ended June 30, 2012 consist of approximately 56.2 million and 57.6 million, respectively, additional shares of common stock related to outstanding warrants to purchase common stock, which were excluded from the computation of diluted weighted average shares outstanding as their effect was antidilutive. Potentially dilutive equivalent shares outstanding for the three months ended June 30, 2011 consist of additional shares of common stock related to 1.8 million restricted shares, 0.8 million warrants and 0.2 million stock options, which were excluded from the computation of diluted weighted average shares outstanding as their effect was antidilutive. There were no potentially dilutive equivalent shares related to restricted stock, stock options or warrants for the six months ended June 30, 2011.

Revisions to Prior Period Financial Statements

In connection with the preparation of the Company’s Condensed Consolidated Financial Statements for three and six months ended June 30, 2012, the Company identified an error in the manner in which earnings per share was calculated. Upon completion of the Company’s evaluation of the earnings per share calculation, it was determined that the weighted average shares outstanding used in the denominator of the earnings per share calculation was improperly calculated.

In accordance with accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 99, Materiality), the Company assessed the materiality of the errors and concluded that the errors were not material to any of the Company’s previously issued financial statements. As permitted by the accounting guidance found in ASC 250-10 (SEC Staff a Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the Company elected to present revised financial information for the three and nine months ended September 30, 2011, and the year ended December 31, 2011. The error had no impact on any other periods previously presented.

The following tables present the effect of this revision on earnings per share for all periods affected:

	Three Months Ended September 30, 2011						Nine Months Ended September 30, 2011
	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Basic income per common share	$	0.64	$	0.14	$	0.78	$	1.27	$	0.15	$	1.42
Diluted income per common share	$	0.60	$	0.12	$	0.72	$	1.21	$	0.14	$	1.35
	Year Ended December 31, 2011
	As Previously Reported		Adjustment		As Revised
Basic income per common share	$	0.48	$	0.14	$	0.62
Diluted income per common share	$	0.46	$	0.13	$	0.59

13. Income Taxes

The Company accounts for income taxes in accordance with authoritative accounting guidance which establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s condensed consolidated financial statements or tax returns.

The provision for income taxes reflects the Company’s estimate of the effective tax rate expected to be applicable for the full current year. To the extent that actual pre-tax results for the year differ from the forecasted estimates applied at the end of the most recent interim period, the actual tax rate recognized during 2012 could be different from the forecasted rate.

For the three and six months ended June 30, 2012, the Company recorded tax benefits of $2.8 million and $10.7 million, respectively, on a pre-tax loss from continuing operations of $4.6 million and $25.1 million, respectively, resulting in an effective tax rate for the three and six months ended June 30, 2012 of approximately 60.9% and 42.6%, respectively. For the three and six months ended June 30, 2011, the Company recorded income tax expense of $1.6 million and $3.5 million, respectively, on pre-tax income from continuing operations of $0.8 million and $16.9 million, respectively, resulting in effective tax rates of 200.0% and 20.7% for the three and six months ended June, 30, 2011, respectively.

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The difference between the effective tax rate for each period and the federal statutory rate of 35.0% primarily relates to state and local income taxes and the change in the estimated amount of valuation allowance recorded on the Company’s net deferred tax assets. As of June 30, 2012, the Company continues to maintain a full valuation allowance on its net deferred tax assets excluding deferred tax liabilities associated with the Company’s indefinite lived intangible assets. The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company’s financial statements or tax returns as well as future profitability. The Company continually reviews the adequacy of the valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC Topic 740, Accounting for Income Taxes. As of June 30, 2012, the Company does not believe it is more likely than not that the deferred tax assets will be recognized. In reaching this determination, the Company believes that its history of cumulative losses over the past three years outweighs other positive evidence that it is more likely than not that the Company’s deferred tax assets will be recognized. Should the Company’s experience of earning pre-tax income over the past two years continue into the future, the Company may release all or a portion of the valuation allowance during 2012, which would impact the Company’s net income (loss) in the period of adjustment.

14. Commitments and Contingencies

Future Commitments

Effective December 31, 2009, the Company’s radio music license agreements with the two largest performance rights organizations, The American Society of Composers, Authors and Publishers (“ASCAP”) and Broadcast Music, Inc. (“BMI”), expired. In January 2010, the Radio Music License Committee (the “RMLC”), which negotiates music licensing fees for most of the radio industry with ASCAP and BMI, filed motions in the New York courts against these organizations on behalf of the radio industry, seeking interim fees and a determination of fair and reasonable industry-wide license fees. During 2010, the courts approved reduced interim fees for ASCAP and BMI. On January 27, 2012, the Federal District Court for the Southern District of New York approved a settlement between the RMLC and ASCAP concerning the fees payable covering the period January 1, 2010 through December 31, 2016. Included in the agreement is a $75.0 million industry fee credit against fees previously paid in 2010 and 2011, with such fees to be credited over the remaining period of the contract. The Company began recognizing the ASCAP credits as a reduction in direct operating expenses on January 1, 2012. In June 2012, the RMLC signed a term sheet detailing a proposed agreement with BMI that would result in a revenue-based agreement from the flat rate structure instituted in the 2003 contract. While the contract still requires federal court approval, it includes a $70.5 million industry fee refund for fees previously paid in 2010 and 2011, which, if the agreement is approved, is expected to be credited to stations in 2012. The Company has not recognized any credits related to BMI fees as of June 30, 2012.

The radio broadcast industry’s principal ratings service is Arbitron, which publishes surveys for domestic radio markets. Certain of the Company’s subsidiaries have agreements with Arbitron under which they receive programming ratings materials in a majority of their respective markets. The remaining aggregate obligation under the agreements with Arbitron was $72.9 million as of June 30, 2012 and is expected to be paid in accordance with the agreements through June 2016.

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.

Legal Proceedings

On January 21, 2010, a former employee of CMP Susquehanna Corp. (“CMPSC”) (which became a subsidiary of Cumulus upon completion of the CMP Acquisition on August 1, 2011) filed a purported class action lawsuit, pending in the United States District Court, Northern District of California, San Francisco Division (the “Court”), against CMPSC claiming (i) unlawful failure to pay required overtime wages; (ii) late pay and waiting time penalties; (iii) failure to provide accurate itemized wage statements; (iv) failure to indemnify for necessary expenses and losses; and (v) unfair trade practices under California’s Unfair Competition Act. On September 2, 2011, CMPSC and this former employee entered into a Joint Stipulation re: Settlement and Release of Class Action Claims (the “Settlement”) with respect to such lawsuit. The Settlement was preliminarily approved by the Court on February 6, 2012 and provides for the payment by CMPSC of a maximum of $0.9 million in full and final settlement of all of the claims made in the lawsuit. Final approval by the Court was obtained on July 13, 2012.

The Company is currently, and expects that from time to time in the future it will be, party to, or a defendant in, various 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 known claim or lawsuit will not have a material adverse effect on its consolidated financial position, results of operations or cash flows.

15. Supplemental Condensed Consolidating Financial Information

At June 30, 2012, Cumulus and certain of its wholly owned subsidiaries (such subsidiaries, the “Subsidiary Guarantors”) provided guarantees of the obligations of Cumulus Holdings 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

23

restrictions on their respective ability to distribute earnings to Cumulus Holdings or Cumulus Media Inc. (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 three and six months ended June 30, 2012 and 2011, (ii) condensed consolidating balance sheets as of June 30, 2012 and December 31, 2011, and (iii) condensed consolidating statements of cash flows for the six months ended June 30, 2012 and 2011, 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.

24

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30, 2012

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	280,745		$	—		$	—		$	280,745
Management fees		296			—			—			—			—			296
Net revenues		296			—			280,745			—			—			281,041
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			168,222			524			—			168,746
Depreciation and amortization		345			—			35,855			—			—			36,200
LMA fees		—			—			885			—			—			885
Corporate general and administrative expenses (including stock-based compensation expense of $5,928)		16,802			—			—			—			—			16,802
Realized loss on derivative instrument		—			—			841			—			—			841
Impairment of intangible assets		—			—			12,435			—			—			12,435
Total operating expenses		17,147			—			218,238			524			—			235,909
Non-operating (expense) income:
Operating (loss) income		(16,851	)		—			62,507			(524	)		—			45,132
Interest expense, net		—			(49,921	)		302			—			—			(49,619	)
Loss on early extinguishment of debt		—			—			—			—			—			—
Other expense, net		—			—			(74	)		—			—			(74	)
Total non-operating expense (income), net		—			(49,921	)		228			—			—			(49,693	)
(Loss) income from continuing operations before income taxes		(16,851	)		(49,921	)		62,735			(524	)		—			(4,561	)
Income tax benefit		—			—			340			2,458			—			2,798
(Loss) income from continuing operations		(16,851	)		(49,921	)		63,075			1,934			—			(1,763	)
Income from discontinued operations, net of taxes		—			—			11,341			(1,435	)		—			9,906
Earnings (loss) from consolidated subsidiaries		24,994			74,915			499			—			(100,408	)		—
Net income (loss)	$	8,143		$	24,994		$	74,915		$	499		$	(100,408	)	$	8,143

25

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30, 2011

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	61,116		$	—		$	—		$	61,116
Management fees		1,125			—			—			—			—			1,125
Net revenues		1,125			—			61,116			—			—			62,241
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			34,957			324			—			35,281
Depreciation and amortization		328			—			1,441			—			—			1,769
LMA fees		—			—			560			—			—			560
Corporate general and administrative expenses (including stock-based compensation expense of $598)		9,139			—			—			—			—			9,139
Gain on exchange of assets or stations		—			—			(120	)		—			—			(120	)
Realized loss on derivative instrument		—			—			1,205			—			—			1,205
Total operating expenses		9,467			—			38,043			324			—			47,834
Operating (loss) income		(8,342	)		—			23,073			(324	)		—			14,407
Non-operating (expense) income:
Interest expense, net		(2,747	)		(6,435	)		4			—			—			(9,178	)
Loss on early extinguishment of debt		(4,366	)		—			—			—			—			(4,366	)
Other expense, net		—			—			(92	)		—			—			(92	)
Total non-operating expense, net		(7,113	)		(6,435	)		(88	)		—			—			(13,636	)
(Loss) income from continuing operations before income taxes		(15,455	)		(6,435	)		22,985			(324	)		—			771
Income tax expense		—			—			—			(1,582	)		—			(1,582	)
(Loss) income from continuing operations		(15,455	)		(6,435	)		22,985			(1,906	)		—			(811	)
Income from discontinued operations, net of taxes		—			—			2,940			(788	)		—			2,152
Earnings (loss) from consolidated subsidiaries		16,796			23,231			(2,694	)		—			(37,333	)		—
Net income (loss)	$	1,341		$	16,796		$	23,231		$	(2,694	)	$	(37,333	)	$	1,341

26

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six Months Ended June 30, 2012

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary Issuer)			Subsidiary Guarantors		Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	516,710	$	—		$	—		$	516,710
Management fees		326			—			—		—			—			326
Net revenues		326			—			516,710		—			—			517,036
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			321,396		1,046			—			322,442
Depreciation and amortization		566			—			70,441		—			—			71,007
LMA fees		—			—			1,724		—			—			1,724
Corporate general and administrative expenses (including stock-based compensation expense of $12,906)		33,494			—			—		—			—			33,494
Realized loss on derivative instrument		—			—			753		—			—			753
Impairment of intangible assets		—			—			12,435		—			—			12,435
Total operating expenses		34,060			—			406,749		1,046			—			441,855
Operating (loss) income		(33,734	)		—			109,961		(1,046	)		—			75,181
Non-operating (expense) income:
Interest (expense) income, net		—			(101,020	)		598		—			—			(100,422	)
Other expense, net		—			—			190		—			—			190
Total non-operating (expense) income, net		—			(101,020	)		788		—			—			(100,232	)
(Loss) income from continuing operations before income taxes		(33,734	)		(101,020	)		110,749		(1,046	)		—			(25,051	)
Income tax benefit		—			—			1,268		9,421			—			10,689
(Loss) income from continuing operations		(33,734	)		(101,020	)		112,017		8,375			—			(14,362	)
Income from discontinued operations, net of taxes		—			—			13,490		(3,115	)		—			10,375
Earnings (loss) from consolidated subsidiaries		29,747			130,767			5,260		—			(165,774	)		—
Net (loss) income	$	(3,987	)	$	29,747		$	130,767	$	5,260		$	(165,774	)	$	(3,987	)

27

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six Months Ended June 30, 2011

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	111,657		$	—		$	—		$	111,657
Management fees		2,250			—			—			—			—			2,250
Net revenues		2,250			—			111,657			—			—			113,907
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			68,457			524			—			68,981
Depreciation and amortization		719			—			2,958			—			—			3,677
LMA fees		—			—			1,141			—			—			1,141
Corporate general and administrative expenses (including stock-based compensation expense of $1,187)		17,271			—			—			—			—			17,271
Gain on exchange of assets or stations		—			—			(15,278	)		—			—			(15,278	)
Realized loss on derivative instrument		—			—			1,244			—			—			1,244
Total operating expenses		17,990			—			58,522			524			—			77,036
Operating (loss) income		(15,740	)		—			53,135			(524	)		—			36,871
Non-operating (expense) income:
Interest (expense) income, net		(9,067	)		(6,435	)		6			—			—			(15,496	)
Loss on early extinguishment of debt		(4,366	)		—			—			—			—			(4,366	)
Other expense, net		—			—			(93	)		—			—			(93	)
Total non-operating expense, net		(13,433	)		(6,435	)		(87	)		—			—			(19,955	)
(Loss) income from continuing operations before income taxes		(29,173	)		(6,435	)		53,048			(524	)		—			16,916
Income tax expense		—			—			(220	)		(3,263	)		—			(3,483	)
(Loss) income from continuing operations		(29,173	)		(6,435	)		52,828			(3,787	)		—			13,433
Income from discontinued operations, net of taxes		—			—			5,063			(1,036	)		—			4,027
Earnings (loss) from consolidated subsidiaries		46,633			53,068			(4,823	)		—			(94,878	)		—
Net income (loss)	$	17,460		$	46,633		$	53,068		$	(4,823	)	$	(94,878	)	$	17,460

28

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2012

(Dollars in thousands, except for share and per share data)

(Unaudited)

	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	$	15,093		$	—	$	3,990		$	—		$	—		$	19,083
Restricted cash		3,854			—		—			—			—			3,854
Accounts receivable, less allowance for doubtful accounts of $3,694		—			—		233,776			—			—			233,776
Trade receivable		—			—		7,178			—			—			7,178
Prepaid expenses and other current assets		8,605			—		17,130			324			—			26,059
Current assets held for sale		—			—		46,860			25,490			—			72,350
Total current assets		27,552			—		308,934			25,814			—			362,300
Property and equipment, net		4,995			—		257,083			—			—			262,078
Broadcast licenses		—			—		—			1,598,228			—			1,598,228
Other intangible assets, net		—			—		315,539			—			—			315,539
Goodwill		—			—		1,292,725			—			—			1,292,725
Investment in consolidated subsidiaries		260,854			3,138,333		1,169,513			—			(4,568,700	)		—
Other assets		13,738			51,127		18,721			—			—			83,586
Total assets	$	307,139		$	3,189,460	$	3,362,515		$	1,624,042		$	(4,568,700	)	$	3,914,456
Liabilities, Redeemable Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	15,255		$	15,135	$	81,718		$	—		$	—		$	112,108
Trade payable		—			—		5,392			—			—			5,392
Current portion of long-term debt		—			13,250		—			—			—			13,250
Total current liabilities		15,255			28,385		87,110			—			—			130,750
Long-term debt, excluding 7.75% senior notes		—			2,171,990		—			—			—			2,171,990
7.75% senior notes		—			610,000		—			—			—			610,000
Other liabilities		13,377			—		49,135			—			—			62,512
Deferred income taxes		—			—		87,937			454,529			—			542,466
Total liabilities		28,632			2,810,375		224,182			454,529			—			3,517,718
Redeemable preferred stock:
Series A cumulative redeemable preferred stock, par value $0.01 per share; stated value of $1,000 per share; 100,000,000 shares authorized; 125,000 shares issued and outstanding		—			118,231		—			—			—			118,231
Total redeemable preferred stock		—			118,231		—			—			—			118,231
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 176,273,876 shares issued and 152,156,089 shares outstanding		1,763			—		—			—			—			1,763
Class B common stock, par value $0.01 per share; 600,000,000 shares authorized; 12,439,667 shares issued and outstanding		124			—		—			—			—			124
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding		6			—		—			—			—			6
Treasury stock, at cost, 24,117,787 shares		(251,915	)		—		—			—			—			(251,915	)
Additional paid-in-capital		1,517,988			77,990		3,733,637			2,138,191			(5,949,818	)		1,517,988
Accumulated (deficit) equity		(989,459	)		182,864		(595,304	)		(968,678	)		1,381,118			(989,459	)
Total stockholders’ equity (deficit)		278,507			260,854		3,138,333			1,169,513			(4,568,700	)		278,507
Total liabilities, redeemable preferred stock and stockholders’ equity (deficit)	$	307,139		$	3,189,460	$	3,362,515		$	1,624,042		$	(4,568,700	)	$	3,914,456

29

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2011

(Dollars in thousands, except for share and per share data)

(Unaudited)

	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	$	11,714		$	—	$	18,878		$	—		$	—		$	30,592
Restricted cash		3,854			—		—			—			—			3,854
Accounts receivable, less allowance for doubtful accounts of $2,765		—			—		236,804			—			—			236,804
Trade receivable		—			—		5,967			—			—			5,967
Compensation held in trust		24,807														24,807
Prepaid expenses and other current assets		6,542			—		14,762			1,011			—			22,315
Total current assets		46,917			—		276,411			1,011			—			324,339
Property and equipment, net		6,555			—		271,515			—			—			278,070
Broadcast licenses		—			—		—			1,625,415			—			1,625,415
Other intangible assets, net		—			—		390,509			—			—			390,509
Goodwill		—			—		1,334,512			—			—			1,334,512
Investment in consolidated subsidiaries		323,436			3,247,865		1,157,317			—			(4,728,618	)		—
Other assets		13,577			55,176		18,993			—			—			87,746
Total assets	$	390,485		$	3,303,041	$	3,449,257		$	1,626,426		$	(4,728,618	)	$	4,040,591
Liabilities, Redeemable Preferred Stockand Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	57,220		$	15,621	$	87,070		$	275		$	—		$	160,186
Trade payable		—			—		4,999			—			—			4,999
Current portion of long-term debt		—			13,250		—			—			—			13,250
Total current liabilities		57,220			28,871		92,069			275			—			178,435
Long-term debt, excluding 7.75% senior notes		—			2,227,287		—			—			—			2,227,287
7.75% senior notes		—			610,000		—			—			—			610,000
Other liabilities		42,552			—		21,386			—			—			63,938
Deferred income taxes		—			—		87,937			468,834			—			556,771
Total liabilities		99,772			2,866,158		201,392			469,109			—			3,636,431
Redeemable preferred stock:
Series A cumulative redeemable preferred stock, par value $0.01 per share; stated value of $1,000 per share; 100,000,000 shares authorized; 125,000 shares issued and outstanding		—			113,447		—			—			—			113,447
Total redeemable preferred stock		—			113,447		—			—			—			113,447
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share;
750,000,000 shares authorized; 160,783,484shares issued and 137,085,813 shares outstanding		1,608			—		—			—			—			1,608
Class B common stock, par value $0.01 per share;
600,000,000 shares authorized; 12,439,667shares issued and outstanding		124			—		—			—			—			124
Class C common stock, par value $0.01 per share;
644,871 shares authorized; 644,871 sharesissued and outstanding		6			—		—			—			—			6
Treasury stock, at cost, 23,697,671 shares		(251,666	)		—		—			—			—			(251,666	)
Additional paid-in-capital		1,526,114			169,234		3,972,850			2,131,251			(6,273,335	)		1,526,114
Accumulated (deficit) equity		(985,473	)		154,202		(724,985	)		(973,934	)		1,544,717			(985,473	)
Total stockholders’ equity (deficit)		290,713			323,436		3,247,865			1,157,317			(4,728,618	)		290,713
Total liabilities, redeemable preferred stock andstockholders’ equity (deficit)	$	390,485		$	3,303,041	$	3,449,257		$	1,626,426		$	(4,728,618	)	$	4,040,591

30

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2012

(Dollars in thousands)

(Unaudited)

	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	$	(3,987	)	$	29,747		$	130,767		$	5,260		$	(165,774	)	$	(3,987	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		566			—			71,676			—			—			72,242
Amortization of debt issuance costs/discounts		—			5,061			—			—			—			5,061
Loss on early extinguishment of debt		—															—
Provision for doubtful accounts		—			—			1,598			—			—			1,598
Gain on sale of assets or stations		—			—			(183	)		—			—			(183	)
Impairment of intangible assets		—						12,435									12,435
Fair value adjustment of derivative instruments		250			—			753			—			—			1,003
Deferred income taxes		—			—			(7,991	)		(6,311	)		—			(14,302	)
Stock-based compensation expense		12,906			—			—			—			—			12,906
Earnings from consolidated subsidiaries		29,747			130,767			5,260			—			(165,774	)		—
Changes in assets and liabilities		(34,105	)		(102,117	)		(227,960	)		1,051			331,548			(31,583	)
Net cash provided by (used in) operating activities		5,377			63,458			(13,645	)		—			—			55,190
Cash flows from investing activities:
Proceeds from sale of assets or stations		426			—			—			—			—			426
Capital expenditures		(676	)		—			(1,243	)		—			—			(1,919	)
Net cash used in investing activities		(250	)		—			(1,243	)		—			—			(1,493	)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities		—			(57,000	)		—			—			—			(57,000	)
Tax withholding payments on behalf of employees		(1,909	)		—			—			—			—			(1,909	)
Preferred stock dividends		—			(6,458	)		—			—			—			(6,458	)
Exercise of warrants		161			—			—			—			—			161
Net cash used in by financing activities		(1,748	)		(63,458	)		—			—			—			(65,206	)
Increase (decrease) in cash and cash equivalents		3,379			—			(14,888	)		—			—			(11,509	)
Cash and cash equivalents at beginning of period		11,714			—			18,878			—			—			30,592
Cash and cash equivalents at end of period	$	15,093		$	—		$	3,990		$	—		$	—		$	19,083

31

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2011

(Dollars in thousands)

(Unaudited)

	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)	$	17,460		$	46,633		$	53,068		$	(4,823	)	$	(94,878	)	$	17,460
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		719			—			3,293			—			—			4,012
Amortization of debt issuance costs/discounts		445			288			—			—			—			733
Provision for doubtful accounts		—			—			644			—			—			644
Loss on sale of assets or stations		—			.			93			—			—			93
Gain on exchange of assets or stations		—			—			(15,278	)		—			—			(15,278	)
Fair value adjustment of derivative instruments		(3,683	)		—			1,244			—			—			(2,439	)
Deferred income taxes		—			—			—			4,299			—			4,299
Stock-based compensation expense		1,187			—			—			—			—			1,187
Loss on early extinguishment of debt		4,366			—			—			—			—			4,366
Earnings from consolidated subsidiaries		46,633			53,068			(4,823	)		—			(94,878	)		—
Changes in assets and liabilities		544,230			(692,482	)		(36,953	)		694			189,756			5,245
Net cash provided by (used in) operating activities		611,357			(592,493	)		1,288			170			—			20,322
Cash flows from investing activities:
Capital expenditures		(252	)		—			(1,253	)		—			—			(1,505	)
Purchase of intangible assets		—			—			—			(170	)		—			(170	)
Net cash used in investing activities		(252	)		—			(1,253	)		(170	)		—			(1,675	)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities		(593,754	)		—			—			—			—			(593,754	)
Tax withholding payments on behalf of employees		(666	)		—			—			—			—			(666	)
Exercise of warrants		19			—			—			—			—			19
Proceeds from issuance of senior notes		—			610,000			—			—			—			610,000
Deferred financing costs		—			(17,507	)		—			—			—			(17,507	)
Net cash (used in) provided by financing activities		(594,401	)		592,493			—			—			—			(1,908	)
(Decrease) increase in cash and cash equivalents		16,704			—			35			—			—			16,739
Cash and cash equivalents at beginning of period		12,638			—			176			—			—			12,814
Cash and cash equivalents at end of period	$	29,342		$	—		$	211		$	—		$	—		$	29,553

32

16. Subsequent Event

On July 31, 2012, the Company completed its previously announced sale of 55 stations in eleven non-strategic markets to Townsquare in exchange for ten of Townsquare’s radio stations in Bloomington, IL and Peoria, IL, plus approximately $115.8 million in cash. The transaction is part of the Company’s ongoing efforts to focus on radio stations in top markets and geographically strategic regional clusters. The stations sold by the Company operated in the following markets: Augusta, ME; Bangor, ME; Binghamton, NY; Bismarck, ND; Grand Junction, CO; Killeen-Temple, TX; New Bedford, MA; Odessa-Midland, TX; Presque Isle, ME; Sioux Falls, SD and Tuscaloosa, AL. The Company used a majority of the proceeds to repay outstanding borrowings under its Revolving Credit Facility which amounts are available for further reborrowing, and to repurchase and redeem a portion of its outstanding Series A Preferred Stock. Accordingly, the results of operations associated with these stations were separately reported, net of the related tax impact, for all periods presented in the accompanying condensed consolidated statements of operations, and the aggregate amount of assets to be disposed of has been classified as assets held for sale as of June 30, 2012.

33

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto included elsewhere in this quarterly report. This discussion, as well as various other sections of this quarterly report, contains and refers to statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Such statements relate to our intent, belief or current expectations primarily with respect to our future operating, financial and strategic performance. Any such forward-looking statements are not guarantees of future performance and may involve risks and uncertainties. Actual results may differ from those contained in or implied by the forward-looking statements as a result of various factors, including, but not limited to, risks and uncertainties relating to the need for additional funds to execute our business strategy, our inability to renew one or more of our broadcast licenses, changes in interest rates, the timing, costs and synergies resulting from the integration of any completed acquisitions, our ability to eliminate certain costs, our ability to manage rapid growth, the popularity of radio as a broadcasting and advertising medium, changing consumer tastes, the impact of general economic conditions in the United States or in specific markets in which we currently do business, industry conditions, including existing competition and future competitive technologies and cancellation, disruptions or postponements of advertising schedules in response to national or world events, our ability to generate revenue from new sources, including technology-based initiatives. Many of these risks and uncertainties are beyond our control, and the unexpected occurrence or failure to occur of any such events or matters could significantly alter our actual results of operations or financial condition.

For additional information about certain of the matters discussed and described in the following Management’s Discussion and Analysis of Financial Condition and Results of Operations, including certain defined terms used herein, see the notes to the accompanying unaudited condensed consolidated financial statements included elsewhere in this quarterly report.

Factors Affecting Comparability

Primarily as a result of the completion of the significant transactions described below in the third quarter of 2011, we believe that our results of operations for the three and six months ended June 30, 2012 will provide only limited comparability to our results of operations for the three and six months ended June 30, 2011. Investors are cautioned to not place undue reliance on any such comparison. Aggregate revenues of $44.1 million and $80.0 million for the three and six months ended June 30, 2012, respectively, attributable to Cumulus Media Partners LLC (“CMP”) and $184.7 million and $339.4 million for the three and six months ended June 30, 2012, respectively, attributable to Citadel are included in the accompanying unaudited condensed consolidated financial statements for such periods.

On August 1, 2011, we completed our previously announced acquisition of the remaining 75.0% of the equity interests of CMP that we did not already own. CMP’s results of operations have been included in the consolidated financial statements since the date of the completion of the CMP Acquisition. Pursuant to a management agreement, we had operated CMP’s business since 2006. In connection with the CMP Acquisition, we issued 9.9 million shares of our common stock to the CMP Sellers. For additional information regarding the CMP Acquisition, see Note 1, “Basis of Presentation, Interim Financial Data and Basis of Presentation” and Note 2, “Acquisitions and Dispositions.” Also in connection with the CMP Acquisition, the CMP Restated Warrants were amended and restated to become exercisable for up to 8.3 million shares of our common stock.

On September 16, 2011, we completed the previously announced Citadel Acquisition, pursuant to which we acquired Citadel for an aggregate purchase price of approximately $2.3 billion, consisting of approximately $1.4 billion in cash, the issuance of 23.6 million shares of Class A common stock, warrants to purchase 47.6 million shares of Class A common stock, and the assumption of outstanding debt, which was refinanced as part of our previously announced related global refinancing (the “Global Refinancing”). Citadel’s results of operations have been included in the consolidated financial statements since the date of the completion of the Citadel Acquisition.

In connection with the closing of the Citadel Acquisition, we undertook a number of significant refinancing transactions, all as described in more detail in “—Liquidity and Capital Resources” below.

Operating Overview

We are the largest pure-play radio broadcaster in the United States based on number of stations. At June 30, 2012, we owned or operated more than 570 radio stations (including under LMAs) in 120 United States media markets and nationwide radio networks serving over 4,000 stations. Under LMAs, we provide sales and marketing services for eight radio stations in the United States in exchange for a management or consulting fee. In addition to entering into LMAs, we have in the past, and expect that we will from time to time in the future enter into management or consulting agreements that provide us with the ability, as contractually specified, to assist current owners in the management of radio station assets that we have contracted to purchase, subject to FCC approval. In such arrangements, we generally receive a contractually specified management fee or consulting fee in exchange for the services provided.

34

Liquidity Considerations

Historically, our principal needs for funds have been for acquisitions of radio stations, expenses associated with our station and corporate operations, capital expenditures, and interest and debt service payments. We believe that our funding needs in the future will be for substantially similar matters including, but not limited to, expenses relating to our ongoing integration of Citadel and CMP and additional expenses incurred in connection with those operations, including the operations of our acquired radio network.

Our principal sources of funds historically have been cash flow from operations and borrowings under credit facilities in existence from time to time. Our cash flow from operations is subject to such factors as shifts in population, station listenership, demographics, or audience tastes, and fluctuations in preferred advertising media. In addition, customers may not be able to pay, or may delay payment of, accounts receivable that are owed to us, which risks may be exacerbated in challenging economic periods. In recent periods, management has taken steps to mitigate this risk through heightened collection efforts and enhancements to our credit approval process, although no assurances as to the longer-term success of these efforts can be provided.

On September 16, 2011 in connection with the closing of the Citadel Acquisition and to complete the Global Refinancing, we entered into the First Lien Facility and the Second Lien Facility (each as defined in “—Liquidity and Capital Resources – 2011 Refinancing Transactions”). The First Lien Facility consists of the $1.325 billion First Lien Term Loan and the $300.0 million Revolving Credit Facility. The Second Lien Facility consists of the $790.0 million Second Lien Term Loan. On that date and also in connection therewith, we used borrowings of $1.325 billion under the First Lien Term Loan, $200.0 million under the Revolving Credit Facility and $790.0 million under the Second Lien Term Loan, along with proceeds from the Equity Investment, to repay approximately $1.4 billion in outstanding senior or subordinated indebtedness and other obligations of (a) ours (including the repayment of amounts outstanding under, and the termination of, the Terminated Credit Facility), (b) certain of our wholly-owned subsidiaries, and (c) Citadel.

Also in connection with the Citadel Acquisition and as part of the transactions included in the Global Refinancing, we completed the previously announced internal restructuring into a holding company structure, which included transferring the remaining assets and operations held directly or indirectly by us, other than the equity interests of our direct wholly-owned subsidiary Cumulus Media Holdings Inc. (“Cumulus Holdings”), to Cumulus Holdings (the “Internal Restructuring”) and in which, among other things, Cumulus Holdings was substituted for us as the issuer under the $610.0 million of 7.75% Senior Notes due 2019 (the “7.75% Senior Notes”), which remain outstanding.

Pursuant to the Equity Investment, on September 16, 2011, we issued and sold (i) 51.8 million shares of Class A common stock to Crestview; (ii) 125,000 shares of Series A Preferred Stock to Macquarie; and (iii) 4.7 million shares of Class A common stock and immediately exercisable warrants to purchase 24.1 million shares of our Class A common stock to UBS and certain other investors. Also pursuant thereto, we issued the Crestview Warrants to purchase 7.8 million shares of Class A common stock, at an exercise price of $4.34 per share. Dividends on the Series A Preferred Stock accrued at a rate of 10.0% per annum from issuance until March 15, 2012, and accrue at 14.0% per annum for the period commencing on March 16, 2012 and ending on September 15, 2013, with additional increases for every two-year period thereafter. The dividends are payable in cash, except that, at our option, up to 50.0% of the dividends for any period may be paid through the issuance of additional shares of Series A Preferred Stock. Payment of dividends on the Series A Preferred Stock is in preference and prior to any dividends payable on any class of our common stock and, in the event of any liquidation, dissolution or winding up, holders of Series A Preferred Stock are entitled to the liquidation value thereof prior to, and in preference of, payment of any amounts to holders of any class of our common stock. Subsequent to June 30, 2012 we used approximately $50 million in cash to repurchase and reduce a portion of the outstanding shares of Series A Preferred Stock.

We have assessed the current and expected implications of our business climate, our current and expected needs for funds and our current and expected sources of funds and determined, based on our financial condition as of June 30, 2012, that cash on hand, cash expected to be generated from operating activities, borrowing availability under the Revolving Credit Facility and, if necessary, any further financing activities, will be sufficient to satisfy our anticipated financing needs for working capital, capital expenditures, interest and debt service payments, and repurchases of securities and other debt obligations through June 30, 2013. However, given the uncertainty of our markets’ cash flows, the quality of our accounts receivable, uncertainties in connection with the integration of the CMP Acquisition and the Citadel Acquisition, including with respect to the timing and achievement of expected synergies therefrom, no assurances can be provided in this regard.

Advertising Revenue and Adjusted EBITDA

Our primary source of revenues is the sale of advertising time on our radio stations. Our sales of advertising time are primarily affected by the demand for advertising time from local, regional and national advertisers and the advertising rates charged by our radio stations. Advertising demand and rates are based primarily on a station’s ability to attract audiences in the demographic groups targeted by its advertisers, as measured principally by various ratings agencies on a periodic basis. We endeavor to develop strong listener loyalty and we believe that the diversification of formats on our stations helps to insulate them from the effects of changes in the musical tastes of the public with respect to any particular format. In addition, we believe that the radio station portfolio that we now own and operate, including as a result of the CMP Acquisition and the Citadel Acquisition, which has increased diversity in terms of format, listener base, geography, advertiser base and revenue stream, is designed to reduce our revenue dependence on any single demographic, region or industry.

35

Our radio stations strive to maximize revenue by managing their on-air inventory of advertising. The optimal number of advertisements available for sale depends on the programming format of a particular station. Each of our stations has a general target level of on-air inventory available for advertising. This target level of inventory for sale may vary at different times of the day but tends to remain stable over time. We seek to broaden our base of advertisers in each of our markets by providing a wide array of audience demographic segments across our cluster of stations, thereby providing each of our potential advertisers with an effective means of reaching a targeted demographic group. Our selling and pricing activity is based on demand for our radio stations’ on-air inventory. In the broadcasting industry, radio stations sometimes utilize trade or barter agreements that exchange advertising time for goods or services such as travel or lodging, instead of for cash. Trade revenue totaled $13.6 million and $7.6 million in the six months ended June 30, 2012 and 2011, respectively. Our advertising contracts are generally short-term. We generate most of our revenue from local and regional advertising, which is sold primarily by a station’s sales staff. Local advertising represented approximately 72.3% and 79.8% of our total revenues during the six months ended June 30, 2012 and 2011, respectively.

Our advertising revenues vary by quarter throughout the year. As is typical in the radio broadcasting industry, our first calendar quarter generally produces the lowest revenues of each annual period as advertising generally declines following the winter holidays. The second and fourth calendar quarters typically produce the highest revenues in each year. Our operating results in any period may be affected by the incurrence of advertising and promotion expenses that typically do not have an effect on revenue generation until future periods, if at all. We continually evaluate opportunities to increase revenues through new platforms, including technology-based initiatives.

Adjusted EBITDA is the financial metric utilized by management to analyze the cash flow generated by our business. The Company presents Adjusted EBITDA including the impact of both continuing and discontinued operations. This measure isolates the amount of income generated by our radio stations after the incurrence of corporate general and administrative expenses. Management also uses this measure to determine the contribution of our radio station portfolio, including the corporate resources employed to manage the portfolio, to the funding of our other operating expenses and to the funding of debt service and acquisitions. In addition, Adjusted EBITDA is a key metric for purposes or calculating and determining our compliance with certain covenants contained in our first lien credit facility.

In deriving this measure, management excludes depreciation, amortization and stock-based compensation expense, as these do not represent cash payments for activities related to the operation of the radio stations. In addition, we also exclude LMA fees from our calculation of Adjusted EBITDA, even though such fees require a cash settlement, because they are excluded from the definition of Adjusted EBITDA contained in our First Lien Facility. Management excludes any gain or loss on the exchange or sale of radio stations as it does not represent a cash transaction. Management also excludes any realized gain or loss on derivative instruments as it does not represent a cash transaction nor is it associated with radio station operations. Management excludes any impairment of goodwill and intangible assets as it does not require a cash outlay. Management 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 radio company. Management has also observed that Adjusted EBITDA is routinely employed to evaluate and negotiate the potential purchase price for radio broadcasting companies. Given the relevance to our overall value, management believes that investors consider the metric to be extremely useful.

Adjusted EBITDA should not be considered in isolation of, or as a substitute for, net income, operating income, cash flows from operating activities or any other measure for determining our operating performance or liquidity that is calculated in accordance with GAAP.

A quantitative reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, follows in this section.

36

Results of Operations

Analysis of the Condensed Consolidated Results of Operations. The following analysis of selected data from our unaudited condensed consolidated statements of operations and other supplementary data includes the results of CMP and Citadel from the dates of acquisition, August 1, 2011 and September 16, 2011, respectively, and should be referred to while reading the results of operations discussion that follows (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,						% Change Three Months			% Change Six Months
	2012			2011			2012			2011			Ended			Ended
STATEMENT OF OPERATIONS DATA:
Net revenues	$	281,041		$	62,241		$	517,036		$	113,907			351.5	%		353.9	%
Direct operating expenses (excluding depreciation,
amortization and LMA fees)		168,746			35,281			322,442			68,981			378.3	%		367.4	%
Depreciation and amortization		36,200			1,769			71,007			3,677			*	*		*	*
LMA fees		885			560			1,724			1,141			58.0	%		51.1	%
Corporate, general and administrative expenses
(including stock-based compensation expense)		16,802			9,139			33,494			17,271			83.8	%		93.9	%
Gain on exchange of assets or stations		—			(120	)		—			(15,278	)		*	*		*	*
Realized losses on derivative instrument		841			1,205			753			1,244			-30.2	%		-39.5	%
Impairment of intangible assets		12,435			—			12,435			—			*	*		*	*
Operating income		45,132			14,407			75,181			36,871			213.3	%		103.9	%
Interest expense, net		(49,619	)		(9,178	)		(100,422	)		(15,496	)		440.6	%		548.1	%
Loss on early extinguishment of debt		—			(4,366	)		—			(4,366	)		*	*		*	*
Other (expense) income, net		(74	)		(92	)		190			(93	)		-19.6	%		*	*
(Loss) income from continuing operations before income taxes		(4,561	)		771			(25,051	)		16,916			*	*		*	*
Income tax benefit (expense)		2,798			(1,582	)		10,689			(3,483	)		*	*		*	*
Income (loss) from continuing operations		(1,763	)		(811	)		(14,362	)		13,433			*	*		*	*
Income from discontinued operations, net of taxes		9,906			2,152			10,375			4,027			360.3	%		157.6	%
Net income (loss)	$	8,143		$	1,341		$	(3,987	)	$	17,460			507.2	%		*	*
OTHER DATA:
Adjusted EBITDA (1)	$	110,875		$	21,479		$	187,740		$	34,240			416.2	%		448.3	%

** Calculation is not meaningful.

(1) Adjusted EBITDA consists of net income before depreciation and amortization, LMA fees, franchise taxes, acquisition costs, stock-based compensation expense, gain or loss on the exchange or sale of assets or stations, any realized gain or loss on derivative instruments, any impairment of intangibles, interest expense, net, any gain or loss on the early extinguishment of debt, other income or expense, gain on equity investment in CMP and income tax expense. Adjusted EBITDA is not a measure of financial performance calculated in accordance with GAAP. See management’s explanation of this measure and the reasons for its use and presentation, along with a quantitative reconciliation of Adjusted EBITDA to its most directly comparable financial measure calculated and presented in accordance with GAAP, above under “Advertising Revenue and Adjusted EBITDA” and below under “Adjusted EBITDA.”

Three Months Ended June 30, 2012 Compared to the Three Months Ended June 30, 2011

Net Revenues. Net revenues for the three months ended June 30, 2012 increased $218.8 million, or 351.5%, to $281.0 million, compared to $62.2 million for the three months ended June 30, 2011. This increase reflects the impact of net revenues from CMP and Citadel, as well as a $2.7 million increase in political advertising. Revenue growth was partially offset by short term revenue impacts resulting from strategic format changes in some markets, general downward trends in the overall macro economic environment and reduced use of trade advertising on acquired stations. Additionally, management fee income decreased $0.8 million primarily related to the completion of the CMP Acquisition and related discontinuation of the CMP management agreement.

Direct Operating Expenses, Excluding Depreciation and Amortization. Direct operating expenses for the three months ended June 30, 2012 increased $133.4 million, or 378.3%, to $168.7 million, compared to $35.3 million for the three months ended June 30, 2011. This increase reflects the impact of direct operating expenses from CMP and Citadel in addition to a $1.3 million increase in broadcast rights. Previously announced synergies resulted in additional expense decreases due to reduced compensation costs, discretionary spending related to promotions and nontraditional revenue generating events, and enhanced expense controls.

37

Depreciation and Amortization. Depreciation and amortization for the three months ended June 30, 2012 increased $34.4 million to $36.2 million, compared to $1.8 million for the three months ended June 30, 2011. This increase reflects the impact of additional depreciation and amortization expense from assets acquired in the Citadel Acquisition and the CMP Acquisition, partially offset by a $0.4 million decrease in depreciation expense on assets within our legacy markets due to a more fully depreciated asset base.

Corporate General and Administrative Expenses, Including Stock-based Compensation Expense. Corporate general and administrative expenses, including stock-based compensation expense, for the three months ended June 30, 2012 increased $7.7 million, or 83.8%, to $16.8 million, compared to $9.1 million for the three months ended June 30, 2011. This increase is primarily comprised of a $5.3 million increase in stock-based compensation expense and $2.5 million related to the restructuring and consolidation of leased properties, which is included in acquisition-related costs.

Realized Losses on Derivative Instrument. For the three months ended June 30, 2012 and 2011, we recorded losses of $0.8 million and $1.2 million, respectively, related to the fair value adjustment of the put option on five Green Bay stations we operate under an LMA.

Impairment of Intangible Assets. For the three months ended June 30, 2012, we recorded a definite-lived intangible asset impairment of $12.4 million related to the cancellation of a contract. There was no similar impairment for the three months ended June 30, 2011.

Interest Expense, net. Total interest expense, net of interest income, for the three months ended June 30, 2012 increased $40.4 million, or 440.6%, to $49.6 million compared to $9.2 million for the three months ended June 30, 2011. Interest expense associated with outstanding debt increased by $38.9 million to $47.7 million as compared to $8.8 million in the prior year period. Interest expense increased due to a higher average amount of indebtedness outstanding as a result of the Acquisition of CMP and Citadel and the Global Refinancing in the third quarter of 2011. The following summary details the components of our interest expense, net of interest income (dollars in thousands):

	Three Months Ended June 30,						2012 vs 2011
	2012			2011			$ Change			% Change
7.75% Senior Notes	$	11,819		$	6,435		$	5,384			83.7	%
Bank borrowings – term loans and revolving credit facilities		35,848			2,350			33,498			*	*
Other interest expense		2,089			395			1,694			428.9	%
Change in fair value of interest rate cap		165			—			165			*	*
Interest income		(302	)		(2	)		(300	)		*	*
Interest expense, net	$	49,619		$	9,178		$	40,441			440.6	%

** Calculation is not meaningful.

Loss on Early Extinguishment of Debt. For the three months ended June 30, 2011, we recorded $4.4 million in loss on early extinguishment of debt as a result of our debt refinancing in May 2011. There was no similar extinguishment of debt during the three months ended June 30, 2012.

Other Expense, net. Other expense, net, was $0.1 million for each of the three months ended June 30, 2012 and 2011 and represents a loss on disposition of assets.

Income Taxes. For the three months ended June 30, 2012, the Company recorded a tax benefit of $2.8 million on a pre-tax loss from continuing operations of $4.6 million, resulting in an effective tax rate of approximately 60.9%. For the three months ended June 30, 2011, the Company recorded income tax expense of $1.6 million on pre-tax income of $0.8 million, resulting in an effective tax rate of 200.0%.

The difference between the effective tax rate for each period and the federal statutory rate of 35.0% primarily relates to state and local income taxes and the change in the estimated amount of valuation allowance recorded on the Company’s net deferred tax assets.

Adjusted EBITDA. As a result of the factors described above, Adjusted EBITDA for the three months ended June 30, 2012 increased $89.4 million to $110.9 million from $21.5 million for the three months ended June 30, 2011.

Six Months Ended June 30, 2012 Compared to the Six Months Ended June 30, 2011

Net Revenues. Net revenues for the six months ended June 30, 2012 increased $403.1 million, or 353.9%, to $517.0 million, compared to $113.9 million for the six months ended June 30, 2011. This increase reflects the impact of net revenues from CMP and Citadel, as well as a $4.7 million increase in political advertising. Revenue growth was partially offset by short term revenue impacts resulting from strategic format changes in some markets, general downward trends in the overall macro economic environment and reduced use of trade advertising on acquired stations. Additionally, management fee income decreased $1.9 million primarily related to the completion of the CMP Acquisition and related discontinuation of the CMP management agreement.

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Direct Operating Expenses, Excluding Depreciation and Amortization. Direct operating expenses for the six months ended June 30, 2012 increased $253.4 million, or 367.4%, to $322.4 million, compared to $69.0 million for the six months ended June 30, 2011. This increase reflects the impact of direct operating expenses from Citadel and CMP. Previously announced synergies resulted in additional expense decreases due to reduced compensation costs, discretionary spending related to promotions, and nontraditional revenue generating events, and enhanced expense controls.

Depreciation and Amortization. Depreciation and amortization for the six months ended June 30, 2012 increased $67.3 million to $71.0 million, compared to $3.7 million for the six months ended June 30, 2011. This increase reflects the impact of additional depreciation and amortization expense from assets acquired in the Citadel Acquisition and the CMP Acquisition, partially offset by a $0.9 million decrease in depreciation expense on assets within our legacy markets due to a more fully depreciated asset base.

Corporate General and Administrative Expenses, Including Stock-based Compensation Expense. Corporate general and administrative expenses, including stock-based compensation expense, for the six months ended June 30, 2012 increased $16.2 million, or 93.9%, to $33.5 million, compared to $17.3 million for the six months ended June 30, 2011. This increase is primarily comprised of a $11.7 million increase in stock-based compensation expense, additional personnel costs of $3.5 million, a $1.1 million decrease in professional fees, and a $0.1 million reduction in acquisition costs since the prior year period included costs associated with the CMP and Citadel acquisitions.

Gain on Exchange of Assets or Stations. During the six months ended June 30, 2011, we completed an exchange transaction with Clear Channel Communications, Inc. (“Clear Channel”) to swap our Canton, Ohio station for eight of Clear Channel’s radio stations in the Ann Arbor and Battle Creek, Michigan markets. In connection with this transaction, we recorded a gain of approximately $15.3 million. We did not complete any similar transactions in six months ended June 30, 2012.

Realized Losses on Derivative Instrument. For the six months ended June 30, 2012 and 2011, we recorded losses of $0.8 million and $1.2 million, respectively, related to the fair value adjustment of the put option on five Green Bay stations we operate under an LMA.

Impairment of Intangible Assets. For the six months ended June 30, 2012, we recorded an definite-lived intangible asset impairment of $12.4 million related to the cancellation of a contract. There was no similar impairment for the six months ended June 30, 2011.

Interest Expense, net. Total interest expense, net of interest income, for the six months ended June 30, 2012 increased $84.9 million, or 548.1%, to $100.4 million compared to $15.5 million for the six months ended June 30, 2011. Interest expense associated with outstanding debt increased by $81.0 million to $95.7 million as compared to $14.7 million in the prior year period. Interest expense increased due to a higher average amount of indebtedness outstanding as a result of the CMP and Citadel Acquisitions and the Global Refinancing in the third quarter of 2011. The following summary details the components of our interest expense, net of interest income (dollars in thousands):

	Six Months Ended June 30,						2012 vs 2011
	2012			2011			$ Change			% Change
7.75% Senior Notes	$	23,638		$	6,435		$	17,203			267.3	%
Bank borrowings – term loans and revolving credit facilities		72,067			8,306			63,761			767.6	%
Bank borrowings yield adjustment—interest rate swap		—			3,708			(3,708	)		-100.0	%
Other interest expense		5,065			731			4,334			592.9	%
Change in fair value of interest rate cap and option agreement		250			(3,680	)		3,930			*	*
Interest income		(598	)		(4	)		(594	)		*	*
Interest expense, net	$	100,422		$	15,496		$	84,926			548.1	%

** Calculation is not meaningful.

Loss on Early Extinguishment of Debt. For the six months ended June 30, 2011, the Company recorded $4.4 million in loss on early extinguishment of debt as a result of our debt refinancing in May 2011. There was no similar extinguishment of debt during the six months ended June 30, 2012.

Other Income (Expense), net. Other income, net of $0.2 million for the six months ended June 30, 2012 represents a gain on disposition of assets as compared to other expense, net of $0.1 million for the six months ended June 30, 2011, which represents a loss on disposition of assets.

Income Taxes. For the six months ended June 30, 2012, the Company recorded a tax benefit of $10.7 million on a pre-tax loss from continuing operations of $25.1 million, resulting in an effective tax rate of approximately 42.6%. For the six months ended June 30, 2011, the Company recorded income tax expense of $3.5 million on pre-tax income from continuing operations of $16.9 million, resulting in an effective tax rate of 20.7%.

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The difference between the effective tax rate for each period and the federal statutory rate of 35.0% primarily relates to state and local income taxes and the change in the estimated amount of valuation allowance recorded on the Company’s net deferred tax assets.

Adjusted EBITDA. As a result of the factors described above, Adjusted EBITDA for the six months ended June 30, 2012 increased $153.5 million to $187.7 million from $34.2 million for the six months ended June 30, 2011.

Reconciliation of Non-GAAP Financial Measure. The following table reconciles Adjusted EBITDA to net income (the most directly comparable financial measure calculated and presented in accordance with GAAP) as presented in the accompanying condensed consolidated statements of operations (dollars in thousands):

	Three Months Ended						Six Months Ended						% Change			% Change
	June 30,						June 30,						Three Months			Six Months
	2012			2011			2012			2011			Ended			Ended
Net income (loss)	$	8,143		$	1,341		$	(3,987	)	$	17,460			507.2	%		*	*
Depreciation and amortization		36,200			1,769			71,007			3,677			*	*		*	*
LMA fees		885			560			1,724			1,141			58.0	%		51.1	%
Stock-based compensation expense		5,928			598			12,906			1,187			891.3	%		987.3	%
Gain on exchange or sale of assets or stations		—			(120	)		—			(15,278	)		*	*		*	*
Realized losses on derivative instrument		841			1,205			753			1,244			-30.2	%		-39.5	%
Impairment of intangible assets		12,435			—			12,435			—			*	*		*	*
Acquisition-related costs		4,443			—			5,465			—			*	*		*	*
Franchise taxes		265			—			265			—			*	*		*	*
Interest expense, net		49,619			9,178			100,422			15,496			440.6	%		548.1	%
Other expense (income), net		74			92			(190	)		93			-19.6	%		*	*
Loss on early extinguishment of debt		—			4,366			—			4,366			*	*		*	*
Income tax (benefit) expense		(2,798	)		1,582			(10,689	)		3,483			*	*		*	*
Depreciation and amortization from discontinued operations		364			120			1,235			335			203.3	%		268.7	%
Non-operating expense from discontinued operations		5			—			7			—			*	*		*	*
Income tax expense from discontinued operations		(5,529	)		788			(3,613	)		1,036			-801.6	%		-448.7	%
Adjusted EBITDA	$	110,875		$	21,479		$	187,740		$	34,240			416.2	%		448.3	%

** Calculation is not meaningful.

Liquidity and Capital Resources

As of June 30, 2012, we had $200.0 million in availability under the Revolving Credit Facility and an incremental term loan facility for up to $500.0 million under the 2011 Credit Facilities, subject to certain conditions (see “—Liquidity Considerations” for further discussion).

Cash Flows provided by Operating Activities

	Six Months Ended June 30,
	2012		2011
(Dollars in thousands)
Net cash provided by operating activities	$	55,190	$	20,322

For the six months ended June 30, 2012, net cash provided by operating activities increased $34.9 million as compared to the six months ended June 30, 2011. The increase was primarily due to an increase in net revenues of $403.1 million, partially offset by an aggregate decrease in cash provided by operating assets and liabilities of $36.8 million, increases in operating expenses and cash paid for interest of $257.9 million and $85.2 million, respectively.

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Cash Flows used in Investing Activities

	Six Months Ended June 30,
	2012			2011
(Dollars in thousands)
Net cash used in investing activities	$	(1,493	)	$	(1,675	)

For the six months ended June 30, 2012, net cash used in investing activities decreased $0.2 million, primarily due to proceeds from sale of assets or stations of $0.4 million, partially offset by an increase in capital expenditures and purchase of intangible assets of $0.2 million.

Cash Flows used in Financing Activities

	Six Months Ended June 30,
	2012			2011
(Dollars in thousands)
Net cash used in financing activities	$	(65,206	)	$	(1,908	)

For the six months ended June 30, 2012, net cash used in financing activities increased $63.3 million. Cash flows used in financing activities for the six months ended June 30, 2012 primarily consisted of repayments of borrowings under our term loans and revolving credit facilities of $57.0 million and payments of dividends on preferred stock of $6.5 million. For the six months ended June 30, 2011, net cash used in financing activities included proceeds from the completion of our offering of 7.75% Senior Notes, the proceeds of which were used to repay $575.8 million outstanding under our then-existing term loan facility, and repayment of $18.0 million of other borrowings paid down during the first quarter of 2011. In addition, deferred financing costs of $17.5 million were incurred in the 2011 period in association with this debt refinancing.

2012 Acquisitions and Dispositions

We did not complete any material acquisitions or dispositions during the three or six months ended June 30, 2012.

Discontinued Operations

On July 31, 2012, the Company completed its previously announced sale of 55 stations in eleven non-strategic markets to Townsquare Media, LLC (“Townsquare”) in exchange for ten of Townsquare’s radio stations in Bloomington, IL and Peoria, IL, plus approximately $115.8 million in cash. The transaction is part of the Company’s ongoing efforts to focus on radio stations in top markets and geographically strategic regional clusters. The stations sold by the Company operated in the following markets: Augusta, ME; Bangor, ME; Binghamton, NY; Bismarck, ND; Grand Junction, CO; Killeen-Temple, TX; New Bedford, MA; Odessa-Midland, TX; Presque Isle, ME; Sioux Falls, SD and Tuscaloosa, AL. The Company used a majority of the proceeds to repay outstanding borrowings under the Revolving Credit Facility (as defined below) which amounts are available for future borrowing, and to repurchase and redeem a portion of its outstanding Series A Preferred Stock. Additional information regarding discontinued operations is provided in Note 3, “Discontinued Operations” in the accompanying unaudited condensed consolidated financial statements.

2011 Acquisitions and Dispositions

For a detailed discussion on our 2011 acquisitions, see Note 2, “Acquisitions and Dispositions” in the unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q. We did not complete any material dispositions during the three or six months ended June 30, 2011.

2011 Refinancing Transactions

First Lien and Second Lien Credit Facilities

On September 16, 2011, to complete the Global Refinancing, we entered into a (i) First Lien Credit Agreement (the “First Lien Facility”), dated as of September 16, 2011, among us, Cumulus Holdings, as Borrower, certain lenders, JPMorgan Chase Bank, N.A., as Administrative Agent (“JPMorgan”), UBS Securities LLC (“UBS”), MIHI LLC (“Macquarie”), Royal Bank of Canada and ING Capital LLC, as Co-Syndication Agents, and U.S. Bank National Association and Fifth Third Bank, as Co-Documentation Agents; and (ii) Second Lien Credit Agreement (the “Second Lien Facility”), dated as of September 16, 2011, among us, Cumulus Holdings, as Borrower, certain lenders, JPMorgan, as Administrative Agent, and UBS, Macquarie, Royal Bank of Canada and ING Capital LLC, as Co-Syndication Agents.

The First Lien Facility consists of a $1.325 billion first lien term loan facility, maturing in September 2018 (the “First Lien Term Loan”), and a $300.0 million revolving credit facility, maturing in September 2016 (the “Revolving Credit Facility”). Under the Revolving Credit Facility, up to $30.0 million of availability may be drawn in the form of letters of credit and up to $30.0 million is available for swingline borrowings. The Second Lien Facility consists of a $790.0 million second lien term loan facility, maturing in September 2019 (the “Second Lien Term Loan”).

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At June 30, 2012, there was $1.318 billion outstanding under the First Lien Term Loan, $100.0 million outstanding under the Revolving Credit Facility and $790.0 million outstanding under the Second Lien Term Loan. Subsequent to June 30, 2012, the Company repaid all outstanding borrowings under the Revolving Credit Facility.

Proceeds from borrowings under the First Lien Facility and Second Lien Facility were used, together with certain other funds, to (i) fund the cash portion of the purchase price paid in the Citadel Acquisition; (ii) repay in full amounts outstanding under the revolving credit facility under our pre-existing credit agreement (the “Terminated Credit Agreement”); (iii) repay all amounts outstanding under the credit facilities of CMP Susquehanna Corporation (“CMPSC”), an indirect wholly-owned subsidiary of CMP; (iv) redeem CMPSC’s outstanding 9.875% senior subordinated notes due 2014 and variable rate senior secured notes due 2014; (v) redeem in accordance with their terms all outstanding shares of preferred stock of CMP Susquehanna Radio Holdings Corp., an indirect wholly-owned subsidiary of CMP (“Radio Holdings”) and the direct parent of CMPSC; and (vi) repay all amounts outstanding, including any accrued interest and the premiums thereon, under Citadel’s pre-existing credit agreement and to redeem its 7.75% senior notes due 2018.

Borrowings under the First Lien Facility bear interest, at the option of Cumulus Holdings, based on the Base Rate (as defined below) or the London Interbank Offered Rate (“LIBOR”), in each case plus 4.5% on LIBOR-based borrowings and 3.5% on Base Rate-based borrowings. LIBOR-based borrowings are subject to a LIBOR floor of 1.25% for the First Lien Term Loan and 1.0% for the Revolving Credit Facility. Base Rate-based borrowings are subject to a Base Rate Floor of 2.25% for the First Lien Term Loan and 2.0% for the Revolving Credit Facility. Base Rate is defined, for any day, as the fluctuating 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, as established from time to time, and (iii) 30 day LIBOR plus 1.0%. The First Lien Term Loan amortizes at a per annum rate of 1.0% of the original principal amount of the First Lien Term Loan, payable quarterly, which commenced on March 31, 2012, with the balance payable on the maturity date. Amounts outstanding under the Revolving Credit Facility are due and payable at maturity on September 16, 2016.

Borrowings under the Second Lien Facility bear interest, at the option of Cumulus Holdings, at either the Base Rate plus 5.0%, subject to a Base Rate floor of 2.5%, or LIBOR plus 6.0%, subject to a LIBOR floor of 1.5%. The Second Lien Term Loan original principal amount is due on the maturity date, September 16, 2019.

Interest on Base Rate-based borrowings is due on the last day of each calendar quarter, except with respect to swingline loans, for which interest is due on the day that such swingline loan is required to be repaid. Interest payments on loans whose interest rate is based upon LIBOR are due at maturity if the term is three months or less or every three months and at maturity if the term exceeds three months.

At June 30, 2012, borrowings under the First Lien Term Loan bore interest at 5.75% per annum, borrowings under the Revolving Credit Facility bore interest at 5.50% per annum and borrowings under the Second Lien Term Loan bore interest at 7.50% per annum. Effective December 8, 2011, we entered into an interest rate cap agreement with JPMorgan with an aggregate notional amount of $71.3 million, which agreement caps the interest rate on an equivalent amount of our LIBOR-based term loans at a maximum of 3.0% per annum. The interest rate cap agreement matures on December 8, 2015.

The representations, covenants and events of default in the 2011 Credit Facilities and the financial covenant in the First Lien Facility are customary for financing transactions of this nature. Events of default in the 2011 Credit Facilities include, among others, (a) the failure to pay when due the obligations owing under the credit facilities; (b) the failure to perform (and not timely remedy, if applicable) certain covenants; (c) certain cross defaults and cross accelerations; (d) the occurrence of bankruptcy or insolvency events; (e) certain judgments against us or any of its restricted subsidiaries; (f) the loss, revocation or suspension of, or any material impairment in the ability to use of or more of, any material Federal Communications Commission 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 First Lien Facility and the Second Lien Facility, as applicable). 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 First Lien Facility and the Second Lien Facility, as applicable, and the ancillary loan documents as a secured party.

As a result of amounts being outstanding under the Revolving Credit Facility as of June 30, 2012, the First Lien Facility required compliance with a consolidated total net leverage ratio of 7.50 to 1.0 as of such date. In connection with the subsequent repayment of amounts outstanding under the Revolver, the Company is no longer required to comply with this ratio, but it will be required to comply with an applicable ratio in future periods if amounts remain outstanding under the Revolving Credit Facility at an applicable date. The Second Lien Facility does not contain any financial covenants.

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

At June 30, 2012, we were in compliance with all of the required covenants under the First Lien Facility.

Certain mandatory prepayments on the First Lien Term Loan and the Second Lien 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.

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Our, Cumulus Holdings’ and our respective restricted subsidiaries’ obligations under the First Lien Facility and the Second Lien Facility are collateralized by a first priority lien and second priority lien, respectively, on substantially all of our, Cumulus Holdings’ and our respective restricted subsidiaries’ assets in which a security interest may lawfully be granted, including, without limitation, intellectual property and substantially all of the capital stock of our direct and indirect domestic subsidiaries and 66.0% of the capital stock of any future first-tier foreign subsidiaries. In addition, Cumulus Holdings’ obligations under the First Lien Facility and the Second Lien Facility are guaranteed by us and substantially all of our restricted subsidiaries, other than Cumulus Holdings.

7.75% Senior Notes

On May 13, 2011, we issued $610.0 million aggregate principal amount of 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 Terminated Credit Agreement.

In connection with the Internal Restructuring, on September 16, 2011, we 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 of our obligations; (ii) substitution of Cumulus Holdings for us as issuer; (iii) our release from all obligations as original issuer; and (iv) our 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 each May 1 and November 1, commencing November 1, 2011. 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 on or after May 1, 2015. At any time prior to May 1, 2014, Cumulus Holdings may also redeem up to 35.0% of the 7.75% Senior Notes using the proceeds from certain equity offerings. At any time prior to May 1, 2015, Cumulus Holdings may redeem some or all of the 7.75% Senior Notes 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.

In connection with the substitution of Cumulus Holdings as the issuer of the 7.75% Senior Notes, we have also guaranteed the 7.75% Senior Notes. In addition, each existing and future domestic restricted subsidiary that guarantees our indebtedness, Cumulus Holdings’ indebtedness or indebtedness of our subsidiary guarantors (other than our subsidiaries that hold the licenses for our 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 our and the other guarantors’ senior unsecured obligations and rank equally in right of payment to all of our and the other guarantors’ existing and future senior debt and senior in right of payment to all of our and the other guarantors’ future subordinated debt. The 7.75% Senior Notes and the guarantees are effectively subordinated to any of Cumulus Holdings’, our 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 our non-guarantor subsidiaries, including all of our liabilities and the guarantors’ foreign subsidiaries and our subsidiaries that hold the licenses for our radio stations.

For the three and six months ended June 30, 2012, we recorded an aggregate of $2.1 million and $5.1 million, respectively, of amortization costs related to the credit facilities and 7.75% Senior Notes.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to our market risks from those disclosed in Part II, Item 7A of our 2011 Annual Report on Form 10-K for the year ended December 31, 2011 (the “2011 Annual Report”).

Item 4. Controls and Procedures

We maintain a set of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15(d)-15(e) of the Securities Exchange Act of 1934, the “Exchange Act”) designed to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. Such disclosure controls and procedures are designed to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chairman, President and Chief Executive Officer (“CEO”) and Senior Vice President and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applies its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management’s control objectives. Our management, including the CEO and CFO, does not expect that our disclosure controls and procedures can prevent all possible errors or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. There are inherent limitations in all control systems, including the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of one or more persons. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and, while our disclosure controls and procedures are designed to be

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effective under circumstances where they should reasonably be expected to operate effectively, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of the inherent limitations in any control system, misstatements due to possible errors or fraud may occur and not be detected.

At the end of the period covered by this report, an evaluation was carried out under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, the CEO and CFO have concluded that our disclosure controls and procedures were effective as the reasonable assurance level as of June 30, 2012.

There were no changes to our internal control over financial reporting during the fiscal quarter ended June 30, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

On January 21, 2010, a former employee of CMP Susquehanna Corp. (“CMPSC”) (which became a subsidiary of Cumulus upon completion of the CMP Acquisition on August 1, 2011) filed a purported class action lawsuit, pending in the United States District Court, Northern District of California, San Francisco Division (the “Court”), against CMPSC claiming (i) unlawful failure to pay required overtime wages; (ii) late pay and waiting time penalties; (iii) failure to provide accurate itemized wage statements; (iv) failure to indemnify for necessary expenses and losses; and (v) unfair trade practices under California’s Unfair Competition Act.

On September 2, 2011, CMPSC and this former employee entered into a Joint Stipulation re: Settlement and Release of Class Action Claims (the “Settlement”) with respect to such lawsuit. The Settlement was preliminarily approved by the Court on February 6, 2012 and provides for the payment by CMPSC of a maximum of $0.9 million in full and final settlement of all of the claims made in the lawsuit. Final approval by the Court was obtained on July 13, 2012.

We are currently party to, or a defendant in, various claims or lawsuits that are generally incidental to our business. We also expect that from time to time in the future we will be party to, or a defendant in, various claims or lawsuits that are generally incidental to our business. We expect that we will vigorously contest any such claims or lawsuits and believe that the ultimate resolution of any known claim or lawsuit will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Item 1A. Risk Factors

Please refer to Part I, Item 1A, “Risk Factors,” in our 2011 Annual Report for information regarding known material risks that could affect our results of operations, financial condition and liquidity.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On May 21, 2008, our Board of Directors authorized the purchase, from time to time, of up to $75.0 million of our Class A Common Stock, subject to the terms and limitations obtained in any applicable agreements and compliance with other applicable legal requirements. During the three months ended June 30, 2012, we did not purchase any shares of our Class A Common Stock. As of June 30, 2012, we had authority to repurchase $68.3 million of our Class A Common Stock.

Item 6. Exhibits

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 Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 —	Certification of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
101 —	The following materials from Cumulus Media Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2012 and 2011, (ii) Condensed Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011, (iii) Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2012 and 2011, and (iv) Notes to Condensed Consolidated Financial Statements***.

*** Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files submitted as Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CUMULUS MEDIA INC.
Date: August 9, 2012	By:	/s/    Joseph P. Hannan
		Joseph P. Hannan
		Senior Vice President, Treasurer and Chief Financial Officer

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EXHIBIT INDEX

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 Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 —	Certification of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
101 —	The following materials from Cumulus Media Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2012 and 2011, (ii) Condensed Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011, (iii) Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2012 and 2011, and (iv) Notes to Condensed Consolidated Financial Statements***.

*** Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files submitted as Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections.

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EX-31.1

Exhibit 31.1

Certification of the Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Lewis W. Dickey, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cumulus Media Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

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: August 9, 2012	By:	/s/ Lewis W. Dickey, Jr.
		Lewis W. Dickey, Jr.
		Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of the Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Joseph P. Hannan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cumulus Media Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

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: August 9, 2012	By:	/s/ Joseph P. Hannan
		Joseph P. Hannan
		Senior Vice President, Treasurer and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the quarterly report on Form 10-Q of Cumulus Media Inc. (the “Company”) for the three month period ended June 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, that, to such officer’s knowledge:

(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/ Lewis W. Dickey, Jr.

Name: Lewis W. Dickey, Jr.

Title: Chairman, President and Chief Executive Officer

/s/ Joseph P. Hannan

Name: Joseph P. Hannan

Title: Senior Vice President, Treasurer and Chief Financial Officer

Date: August 9, 2012

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Acquisitions and Dispositions (Details 6) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Broadcast advertising relationships [Member]
Amortization of definite-lived intangible assets acquired in the CMP Acquisition, in relation to the expected economic benefits of such assets
Estimated Useful Life in Years	6 years
Fair Value	$ 235,800
Affiliate relationships [Member]
Amortization of definite-lived intangible assets acquired in the CMP Acquisition, in relation to the expected economic benefits of such assets
Estimated Useful Life in Years	5 years
Fair Value	40,700
Network advertising relationships [Member]
Amortization of definite-lived intangible assets acquired in the CMP Acquisition, in relation to the expected economic benefits of such assets
Estimated Useful Life in Years	5 years
Fair Value	18,300
Other contracts and agreements [Member]
Amortization of definite-lived intangible assets acquired in the CMP Acquisition, in relation to the expected economic benefits of such assets
Fair Value	$ 38,680
Other contracts and agreements [Member] | Maximum [Member]
Amortization of definite-lived intangible assets acquired in the CMP Acquisition, in relation to the expected economic benefits of such assets
Estimated Useful Life in Years	4 years
Other contracts and agreements [Member] | Minimum [Member]
Amortization of definite-lived intangible assets acquired in the CMP Acquisition, in relation to the expected economic benefits of such assets
Estimated Useful Life in Years	2 years

XML

Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Green Bay Option [Member]
Schedule of financial assets and liabilities measured at fair value on a recurring basis
Financial Liabilities	$ (12,151)	$ (11,398)
Fair value, measurements, recurring [Member] | Interest Rate Cap [Member]
Schedule of financial assets and liabilities measured at fair value on a recurring basis
Financial Assets	126
Fair value, measurements, recurring [Member] | Green Bay Option [Member]
Schedule of financial assets and liabilities measured at fair value on a recurring basis
Financial Liabilities	(12,151)
Fair value, measurements, recurring [Member] | Quoted Price in Advice Markets (Level 1) [Member] | Interest Rate Cap [Member]
Schedule of financial assets and liabilities measured at fair value on a recurring basis
Financial Assets
Fair value, measurements, recurring [Member] | Quoted Price in Advice Markets (Level 1) [Member] | Green Bay Option [Member]
Schedule of financial assets and liabilities measured at fair value on a recurring basis
Financial Liabilities
Fair value, measurements, recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Cap [Member]
Schedule of financial assets and liabilities measured at fair value on a recurring basis
Financial Assets	126
Fair value, measurements, recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Green Bay Option [Member]
Schedule of financial assets and liabilities measured at fair value on a recurring basis
Financial Liabilities
Fair value, measurements, recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Cap [Member]
Schedule of financial assets and liabilities measured at fair value on a recurring basis
Financial Assets
Fair value, measurements, recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Green Bay Option [Member]
Schedule of financial assets and liabilities measured at fair value on a recurring basis
Financial Liabilities	$ (12,151)

XML

Intangible Assets and Goodwill (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011
Intangible assets and goodwill (Textual) [Abstract]
Impairment of definite-lived intangible asset	$ 12,435	$ 12,435
Cancellation of underlying contract [Member]
Intangible assets and goodwill (Textual) [Abstract]
Impairment of definite-lived intangible asset	$ 12,400

XML

Subsequent Event (Details Textual) (Townsquare Media, LLC [Member], USD $) In Millions, unless otherwise specified	1 Months Ended	6 Months Ended
	Jul. 31, 2012 Entity	Jun. 30, 2012 Radio_Stations Stations	Apr. 30, 2012
Townsquare Media, LLC [Member]
Subsequent Event (Textual) [Abstract]
Disposal of stations	55	55
Number of Townsquare radio stations acquired	10	10
Additional cash received	$ 115.8	$ 115.8	$ 115.8

XML

Fair Value Measurements (Details 1) (Green Bay Option [Member], USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Green Bay Option [Member]
Schedule of components of the change in fair value associated with Green Bay Option
Fair value balance at January 1, 2012	$ (11,398)
Add: Mark to market fair value adjustment	(753)
Fair value balance at June 30, 2012	$ (12,151)

XML

Intangible Assets and Goodwill (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011
Indefinite-Lived Intangible Assets
Indefinite-Lived Intangible Assets, Beginning Balance		$ 1,625,415	$ 160,418
Acquisition			11,355
Disposition		(116)	(1,533)
Purchase price allocation adjustments		(1,581)
Current assets held for sale		(25,490)
Indefinite-Lived Intangible Assets, Ending Balance	1,598,228	1,598,228	170,240
Definite-Lived Intangible Assets
Definite-Lived Intangible Assets, Beginning Balance		390,509	552
Disposition			(83)
Acquisition			77
Amortization		(56,612)	(41)
Impairment of Intangible Assets, Finite-lived	12,435	12,435
Current assets held for sale		(6,880)
Purchase Price Allocation Adjustments		957
Definite-Lived Intangible Assets, Ending Balance	315,539	315,539	505
Intangible Assets, Net
Intangible Assets Total, Beginning Balance		2,015,924	160,970
Acquisition			11,432
Dispositions		(116)	(1,616)
Impairment		(12,435)
Amortization		(56,612)	(41)
Current assets held for sale		(32,370)
Purchase Price Allocation Adjustments		(624)
Intangible Assets Total, Ending Balance	$ 1,913,767	$ 1,913,767	$ 170,745

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Acquisitions and Dispositions (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Final purchase price allocation from asset exchange
Property and equipment	$ 1,790
Broadcast licenses	11,190
Goodwill	4,342
Other intangibles	72
Purchase price	17,394
Less: Carrying value of Canton station	(2,116)
Gain on asset exchange	$ 15,278

XML

Fair Value Measurements (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
First Lien Term Loan [Member]
Schedule of gross amounts and fair value of the Company's First Lien Term Loan, Second Lien Term Loan, Revolving Credit Facility and 7.75% Senior Notes
Carrying value	$ 1,318,000	$ 1,325,000
Fair value	1,321,295	1,305,125
Second Lien Term Loan [Member]
Schedule of gross amounts and fair value of the Company's First Lien Term Loan, Second Lien Term Loan, Revolving Credit Facility and 7.75% Senior Notes
Carrying value	790,000	790,000
Fair value	795,925	770,250
Revolving Credit Facility [Member]
Schedule of gross amounts and fair value of the Company's First Lien Term Loan, Second Lien Term Loan, Revolving Credit Facility and 7.75% Senior Notes
Carrying value	100,000	150,000
Fair value	100,000	150,000
7.75% Senior Notes [Member]
Schedule of gross amounts and fair value of the Company's First Lien Term Loan, Second Lien Term Loan, Revolving Credit Facility and 7.75% Senior Notes
Carrying value	610,000	610,000
Fair value	$ 574,132	$ 541,680

XML

Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Classes of assets associated with the stations held for sale

	2012
Current lease assets held for sale:
Prepaid expenses and other current assets	$	180
Property and equipment, net		7,668
Broadcast licenses		25,490
Other intangibles, net		6,880
Goodwill		32,132
Total current assets held for sale	$	72,350

Income from discontinued operations

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Discontinued operations:
Net revenues	$	11,000		$	6,937		$	20,321		$	13,130
Operating income		4,382			2,940			6,769			5,063
Non-operating expense		(5	)		—			(7	)		—
Income from discontinued operations before taxes		4,377			2,940			6,762			5,063
Income tax benefit (expense)		5,529			(788	)		3,613			(1,036	)
Income from discontinued operations	$	9,906		$	2,152		$	10,375		$	4,027

XML

Derivative Financial Instruments (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule of location and fair values of derivatives in the unaudited condensed consolidated
Amount of Expense (Income) Recognized on Derivatives	$ 1,006	$ 1,204	$ 1,003	$ (2,439)
Interest Rate Cap [Member] | Interest expense [Member]
Schedule of location and fair values of derivatives in the unaudited condensed consolidated
Amount of Expense (Income) Recognized on Derivatives	165		250
Green Bay Option [Member] | Realized Gain Or Loss On Derivative Instrument [Member]
Schedule of location and fair values of derivatives in the unaudited condensed consolidated
Amount of Expense (Income) Recognized on Derivatives	841	1,204	753	1,244
May 2005 Option [Member] | Interest Income [Member]
Schedule of location and fair values of derivatives in the unaudited condensed consolidated
Amount of Expense (Income) Recognized on Derivatives				$ (3,683)

XML

Discontinued Operations (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Classes of assets associated with the stations held for sale
Prepaid expenses and other current assets	$ 180
Property and equipment, net	7,668
Broadcast licenses	25,490
Other intangibles, net	6,880
Goodwill	32,132
Total current assets held for sale	$ 72,350

XML

Acquisitions and Dispositions (Details 4) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Final purchase price allocation in Citadel Acquisition
Cash consideration to Citadel stockholders	$ 1,405,471
Common stock issued to Citadel stockholders	178,122
Stock-based compensation value	576
Cash consideration to Citadel to settle Citadel obligations	736,072
Total purchase price	$ 2,320,241

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Long-Term Debt (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Senior Notes [Member]	Dec. 31, 2011 Senior Notes [Member]	Jun. 30, 2012 Term Loan [Member]	Dec. 31, 2011 Term Loan [Member]	Sep. 16, 2011 First Lien Term Loan [Member]	Jun. 30, 2012 First Lien Term Loan [Member] Term Loan [Member]	Dec. 31, 2011 First Lien Term Loan [Member] Term Loan [Member]	Sep. 16, 2011 Second Lien Term Loan [Member]	Jun. 30, 2012 Second Lien Term Loan [Member] Term Loan [Member]	Dec. 31, 2011 Second Lien Term Loan [Member] Term Loan [Member]	Sep. 16, 2011 Revolving Credit Facility [Member]	Jun. 30, 2012 Revolving Credit Facility [Member] Term Loan [Member]	Dec. 31, 2011 Revolving Credit Facility [Member] Term Loan [Member]
Schedule of long term debt
Term loan and revolving credit facilities								$ 1,318,000	$ 1,325,000		$ 790,000	$ 790,000		$ 100,000	$ 150,000
Less: Term loan discount					(22,760)	(24,463)	13,500			12,000
Total term loan and revolving credit facilities	2,185,240	2,240,537					1,325,000			790,000			300,000
7.75% Senior Notes			610,000	610,000
Less: Current portion of long-term debt	13,250	13,250
Long-term debt, net	$ 2,781,990	$ 2,837,287

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Supplemental Condensed Consolidating Financial Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Condensed Financial Statements Statement Of Operations
Broadcast revenues	$ 280,745	$ 61,116	$ 516,710	$ 111,657
Management fees	296	1,125	326	2,250
Total revenue	281,041	62,241	517,036	113,907
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)	168,746	35,281	322,442	68,981
Depreciation and amortization	36,200	1,769	71,007	3,677
LMA fees	885	560	1,724	1,141
Corporate general and administrative expenses (including stock-based compensation expense of $5,928, $598, $12,906 and $1,187, respectively)	16,802	9,139	33,494	17,271
Gain on exchange of assets or stations		(120)		(15,278)
Realized loss on derivative instrument	841	1,205	753	1,244
Impairment of definite-lived intangible asset	12,435		12,435
Total operating expenses	235,909	47,834	441,855	77,036
Operating (loss) income	45,132	14,407	75,181	36,871
Interest expense, net	(49,619)	(9,178)	(100,422)	(15,496)
Loss on early extinguishment of debt		(4,366)		(4,366)
Other (expense) income, net	(74)	(92)	190	(93)
Total non-operating (expense) income, net	(49,693)	(13,636)	(100,232)	(19,955)
(Loss) income from continuing operations before income taxes	(4,561)	771	(25,051)	16,916
Income tax benefit (expense)	2,798	(1,582)	10,689	(3,483)
Income (loss) from continuing operations	(1,763)	(811)	(14,362)	13,433
Income from discontinued operations, net of taxes	9,906	2,152	10,375	4,027
Earnings (loss) from consolidated subsidiaries
Net (loss) income	8,143	1,341	(3,987)	17,460
Cumulus Media Inc. (Parent Guarantor Member) [Member]
Condensed Financial Statements Statement Of Operations
Broadcast revenues
Management fees	296	1,125	326	2,250
Total revenue	296	1,125	326	2,250
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)
Depreciation and amortization	345	328	566	719
LMA fees
Corporate general and administrative expenses (including stock-based compensation expense of $5,928, $598, $12,906 and $1,187, respectively)	16,802	9,139	33,494	17,271
Gain on exchange of assets or stations
Realized loss on derivative instrument
Impairment of definite-lived intangible asset
Total operating expenses	17,147	9,467	34,060	17,990
Operating (loss) income	(16,851)	(8,342)	(33,734)	(15,740)
Interest expense, net		(2,747)		(9,067)
Loss on early extinguishment of debt		(4,366)		(4,366)
Other (expense) income, net
Total non-operating (expense) income, net		(7,113)		(13,433)
(Loss) income from continuing operations before income taxes	(16,851)	(15,455)	(33,734)	(29,173)
Income tax benefit (expense)
Income (loss) from continuing operations	(16,851)	(15,455)	(33,734)	(29,173)
Income from discontinued operations, net of taxes
Earnings (loss) from consolidated subsidiaries	24,994	16,796	29,747	46,633
Net (loss) income	8,143	1,341	(3,987)	17,460
Cumulus Media Holdings Inc. (Subsidiary Issuer) [Member]
Condensed Financial Statements Statement Of Operations
Broadcast revenues
Management fees
Total revenue
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)
Depreciation and amortization
LMA fees
Corporate general and administrative expenses (including stock-based compensation expense of $5,928, $598, $12,906 and $1,187, respectively)
Gain on exchange of assets or stations
Realized loss on derivative instrument
Impairment of definite-lived intangible asset
Total operating expenses
Operating (loss) income
Interest expense, net	(49,921)	(6,435)	(101,020)	(6,435)
Loss on early extinguishment of debt
Other (expense) income, net
Total non-operating (expense) income, net	(49,921)		(101,020)	(6,435)
(Loss) income from continuing operations before income taxes	(49,921)	(6,435)	(101,020)	(6,435)
Income tax benefit (expense)
Income (loss) from continuing operations	(49,921)	(6,435)	(101,020)	(6,435)
Income from discontinued operations, net of taxes
Earnings (loss) from consolidated subsidiaries	74,915	23,231	130,767	53,068
Net (loss) income	24,994	16,796	29,747	46,633
Subsidiary Guarantors [Member]
Condensed Financial Statements Statement Of Operations
Broadcast revenues	280,745	61,116	516,710	111,657
Management fees
Total revenue	280,745	61,116	516,710	111,657
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)	168,222	34,957	321,396	68,457
Depreciation and amortization	35,855	1,441	70,441	2,958
LMA fees	885	560	1,724	1,141
Corporate general and administrative expenses (including stock-based compensation expense of $5,928, $598, $12,906 and $1,187, respectively)
Gain on exchange of assets or stations		(120)		(15,278)
Realized loss on derivative instrument	841	1,205	753	1,244
Impairment of definite-lived intangible asset	12,435		12,435
Total operating expenses	218,238	38,043	406,749	58,522
Operating (loss) income	62,507	23,073	109,961	53,135
Interest expense, net	302	4	598	6
Loss on early extinguishment of debt
Other (expense) income, net	(74)	(92)	190	(93)
Total non-operating (expense) income, net	228	(6,435)	788	(87)
(Loss) income from continuing operations before income taxes	62,735	22,985	110,749	53,048
Income tax benefit (expense)	(340)		1,268	(220)
Income (loss) from continuing operations	63,075	22,985	112,017	52,828
Income from discontinued operations, net of taxes	11,341	2,940	13,490	5,063
Earnings (loss) from consolidated subsidiaries	499	(2,694)	5,260	(4,823)
Net (loss) income	74,915	23,231	130,767	53,068
Subsidiary Non-guarantors [Member]
Condensed Financial Statements Statement Of Operations
Broadcast revenues
Management fees
Total revenue
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)	524	324	1,046	524
Depreciation and amortization
LMA fees
Corporate general and administrative expenses (including stock-based compensation expense of $5,928, $598, $12,906 and $1,187, respectively)
Gain on exchange of assets or stations
Realized loss on derivative instrument
Impairment of definite-lived intangible asset
Total operating expenses	524	324	1,046	524
Operating (loss) income	(524)	(324)	(1,046)	(524)
Interest expense, net
Loss on early extinguishment of debt
Other (expense) income, net
Total non-operating (expense) income, net		(88)
(Loss) income from continuing operations before income taxes	(524)	(324)	(1,046)	(524)
Income tax benefit (expense)	2,458	(1,582)	9,421	(3,263)
Income (loss) from continuing operations	1,934	(1,906)	8,375	(3,787)
Income from discontinued operations, net of taxes	(1,435)	(788)	(3,115)	(1,036)
Earnings (loss) from consolidated subsidiaries
Net (loss) income	499	(2,694)	5,260	(4,823)
Eliminations [Member]
Condensed Financial Statements Statement Of Operations
Broadcast revenues
Management fees
Total revenue
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)
Depreciation and amortization
LMA fees
Corporate general and administrative expenses (including stock-based compensation expense of $5,928, $598, $12,906 and $1,187, respectively)
Gain on exchange of assets or stations
Realized loss on derivative instrument
Impairment of definite-lived intangible asset
Total operating expenses
Operating (loss) income
Interest expense, net
Loss on early extinguishment of debt
Other (expense) income, net
Total non-operating (expense) income, net
(Loss) income from continuing operations before income taxes
Income tax benefit (expense)
Income (loss) from continuing operations
Income from discontinued operations, net of taxes
Earnings (loss) from consolidated subsidiaries	(100,408)	(37,333)	(165,774)	(94,878)
Net (loss) income	$ (100,408)	$ (37,333)	$ (165,774)	$ (94,878)

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Stock-Based Compensation Expense (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting stock based compensation related to awards	$ 0.6	$ 1.2
Grant date fair value		3.0
Stock-Based compensation expense (Textual) [Abstract]
Exercise price		$ 4.34
Options exercised		0	0
Non Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cliff vesting term		1 year
Time-vesting stock options to purchase		1,357,500
Grant date fair value		0.6
Equity Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting stock based compensation related to awards	3.2	6.0
Unrecognized stock-based compensation expense	23.2	23.2
Weighted average remaining life	2 years 8 months 12 days
Liability Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting stock based compensation related to awards	2.7	6.9
Unrecognized stock-based compensation expense	0	0
Fair value of restricted stock awards vested	13.2
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock awards vested		19.1
Restricted Stock [Member] | Liability Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock awards vested			2.1
Restricted Class A Common Stock [Member] | Non Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of time-vesting restricted Class A common stock		161,724
September sixteenth two thousand twelve [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of vesting stock based compensation	30.00%
February sixteenth two thousand fifteen [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of vesting stock based compensation	20.00%

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Intangible Assets and Goodwill (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Schedule of changes in goodwill and accumulated impairment losses
Balance as of January 1, Goodwill	$ 1,564,253	$ 285,820
Balance as of January 1, Accumulated impairment losses	(229,741)	(229,741)
Balance as of January 1, Subtotal	1,292,725	60,422	1,334,512	56,079
Acquisition		4,343
Current assets held for sale	(32,132)
Purchase price allocation adjustments	(9,550)
Disposal	(105)
Balance as of June 30, Goodwill	1,522,466	290,163
Balance as of June 30, Accumulated impairment losses	$ (229,741)	$ (229,741)

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Discontinued Operations

6 Months Ended

Jun. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

3. Discontinued Operations

On July 31, 2012, the Company completed its previously announced sale of 55 stations in eleven non-strategic markets to Townsquare in exchange for ten of Townsquare’s radio stations in Bloomington, IL and Peoria, IL, plus approximately $115.8 million in cash. The transaction is part of the Company’s ongoing efforts to focus on radio stations in top markets and geographically strategic regional clusters. The stations sold by the Company operated in the following markets: Augusta, ME; Bangor, ME; Binghamton, NY; Bismarck, ND; Grand Junction, CO; Killeen-Temple, TX; New Bedford, MA; Odessa-Midland, TX; Presque Isle, ME; Sioux Falls, SD and Tuscaloosa, AL. The Company used a majority of the proceeds to repay outstanding borrowings under its Revolving Credit Facility which amounts are available for further reborrowing, and to repurchase and redeem a portion of its outstanding Series A Preferred Stock. Accordingly, the results of operations associated with these stations were separately reported, net of the related tax impact, for all periods presented in the accompanying condensed consolidated statements of operations, and the aggregate amount of assets to be disposed of has been classified as assets held for sale as of June 30, 2012.

The following table presents the main classes of assets associated with the stations that were held for sale as of June 30, 2012 (dollars in thousands):

	2012
Current lease assets held for sale:
Prepaid expenses and other current assets	$	180
Property and equipment, net		7,668
Broadcast licenses		25,490
Other intangibles, net		6,880
Goodwill		32,132
Total current assets held for sale	$	72,350

Components of Results of Discontinued Operations

For the three and six months ended June 30, 2012 and 2011, income from discontinued operations was as follows (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Discontinued operations:
Net revenues	$	11,000		$	6,937		$	20,321		$	13,130
Operating income		4,382			2,940			6,769			5,063
Non-operating expense		(5	)		—			(7	)		—
Income from discontinued operations before taxes		4,377			2,940			6,762			5,063
Income tax benefit (expense)		5,529			(788	)		3,613			(1,036	)
Income from discontinued operations	$	9,906		$	2,152		$	10,375		$	4,027

During the three and six months ended June 30, 2012, the Company recognized a $7.2 million deferred tax benefit related to the release of a valuation allowance resulting from the inclusion of deferred tax liabilities on assets previously regarded as having an indefinite life that were classified as held for sale as of June 30, 2012. The deferred tax benefit is reflected in income tax expense for discontinued operations.

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Earnings Per Share ("EPS") (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Numerator:
Undistributed net (loss) income from continuing operations	$ (1,763)	$ (811)	$ (14,362)	$ 13,433
Denominator:
Basic weighted average shares outstanding	157,710,861	40,762,233	153,540,006	40,667,773
Basic (Loss) Earnings Per Share - attributable to common shares	$ 0.01	$ 0.03	$ (0.11)	$ 0.41
Numerator:
Undistributed net (loss) income from continuing operations	(1,763)	(811)	(14,362)	13,433
Denominator:
Basic weighted average shares outstanding	157,710,861	40,762,233	153,540,006	40,667,773
Diluted weighted average shares outstanding	157,710,861	40,762,233	153,540,006	41,725,933
Diluted (loss) earnings from continuing operations per share - attributable to common shares	$ 0.01	$ 0.03	$ (0.11)	$ 0.40
Basic share [Member]
Less:
Dividends declared	4,375		7,708
Accretion of redeemable preferred stock	1,852		4,620
Basic (loss) income from continuing operations - attributable to common shares	(7,990)	(811)	(26,690)	12,891
Denominator:
Basic weighted average shares outstanding	157,711,000	40,762,000	153,540,000	40,668,000
Basic (Loss) Earnings Per Share - attributable to common shares	$ (0.05)	$ (0.02)	$ (0.17)	$ 0.32
Less:
Dividends declared	4,375		7,708
Accretion of redeemable preferred stock	1,852		4,620
Basic (loss) income from continuing operations - attributable to common shares	(7,990)	(811)	(26,690)	12,891
Denominator:
Basic weighted average shares outstanding	157,711,000	40,762,000	153,540,000	40,668,000
Basic share [Member] | Restricted Stock [Member]
Less:
Participation rights of unvested restricted stock in undistributed earnings				542
Less:
Participation rights of unvested restricted stock in undistributed earnings				542
Diluted share [Member]
Less:
Dividends declared	4,375		7,708
Accretion of redeemable preferred stock	1,852		4,620
Less:
Dividends declared	4,375		7,708
Accretion of redeemable preferred stock	1,852		4,620
Denominator:
Effect of dilutive options and warrants				1,058,000
Diluted weighted average shares outstanding	157,711,000	40,762,000	153,540,000	41,726,000
Diluted (loss) earnings from continuing operations per share - attributable to common shares	$ (0.05)	$ (0.02)	$ (0.17)	$ 0.31
Diluted share [Member] | Restricted Stock [Member]
Less:
Participation rights of unvested restricted stock in undistributed earnings				529
Less:
Participation rights of unvested restricted stock in undistributed earnings				$ 529

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Discontinued Operations (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income from discontinued operations
Net revenues	$ 11,000	$ 6,937	$ 20,321	$ 13,130
Operating income	4,382	2,940	6,769	5,063
Non-operating expense	(5)		(7)
Income from discontinued operations before taxes	4,377	2,940	6,762	5,063
Income tax benefit (expense)	5,529	(788)	3,613	(1,036)
Income from discontinued operations, net of taxes	$ 9,906	$ 2,152	$ 10,375	$ 4,027

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Schedule of financial assets and liabilities measured at fair value on a recurring basis

				Fair Value Measurements at Reporting Date Using
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Interest rate cap (1)	$	126		$	—	$	126	$	—
Financial liabilities:
Other long-term liabilities
Green Bay Option (2)	$	(12,151	)	$	—	$	—	$	(12,151	)

(1) The Company is party to an interest rate cap pursuant to which the Company pays a fixed interest rate on a $71.3 million notional amount of its term loans. The fair value of the Company’s interest rate cap is determined based on a discounted cash flow analysis on the expected future cash flows using observable inputs, including interest rates and yield curves. Derivative valuations incorporate adjustments that are necessary to reflect the credit risk.

(2) The fair value of the Green Bay Option was determined using certain significant unobservable inputs (a Level 3 measurement). The fair value represents an estimate of the net amount that the Company would pay if the option were transferred to another party as of the date of the valuation. The option valuation incorporates a credit risk adjustment to reflect the probability of default by the Company.

Schedule of components of the change in fair value associated with Green Bay Option

Description	Green Bay Option
Fair value balance at January 1, 2012	$	(11,398	)
Add: Mark to market fair value adjustment		(753	)
Fair value balance at June 30, 2012	$	(12,151	)

Quantitative information regarding the significant unobservable inputs related to the Green Bay Option

Fair Value	Valuation Technique	Unobservable Inputs
$ (12,151)	Black-Scholes Model	Risk adjusted discount rate	7.8	%
		Total term	1.2 years
		Volatility rate	47.4	%
		Annual dividend rate	0.0	%
		Bond equivalent yield discount rate	0.2	%

Schedule of gross amounts and fair value of the Company's First Lien Term Loan, Second Lien Term Loan, Revolving Credit Facility and 7.75% Senior Notes

	June 30, 2012		December 31, 2011
First Lien Term Loan:
Carrying value	$	1,318,000	$	1,325,000
Fair value		1,321,295		1,305,125
Second Lien Term Loan:
Carrying value	$	790,000	$	790,000
Fair value		795,925		770,250
Revolving Credit Facility:
Carrying value	$	100,000	$	150,000
Fair value		100,000		150,000
7.75% Senior Notes:
Carrying value	$	610,000	$	610,000
Fair value		574,132		541,680

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2012

Long-Term Debt [Abstract]

Schedule of long term debt

	June 30, 2012			December 31, 2011
Term loan and revolving credit facilities:
First Lien Term Loan	$	1,318,000		$	1,325,000
Second Lien Term Loan		790,000			790,000
Revolving Credit Facility		100,000			150,000
Less: Term loan discount		(22,760	)		(24,463	)
Total term loan and revolving credit facilities		2,185,240			2,240,537
7.75% Senior Notes		610,000			610,000
Less: Current portion of long-term debt		(13,250	)		(13,250	)
Long-term debt, net	$	2,781,990		$	2,837,287

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Fair Value Measurements (Details 2) (Green Bay Option [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Green Bay Option [Member]
Quantitative information regarding the significant unobservable inputs related to the green bay option
Fair value green bay option	$ (12,151)	$ (11,398)
Fair value valuation technique for green bay option	Black-Scholes Model
Risk adjusted discount rate	7.80%
Total term	1 year 2 months 12 days
Volatility rate	47.40%
Annual dividend rate	0.00%
Bond equivalent yield discount rate	0.20%

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Discontinued Operations (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jul. 31, 2012 Townsquare Media, LLC [Member] Entity	Jun. 30, 2012 Townsquare Media, LLC [Member] Stations Radio_Stations	Apr. 30, 2012 Townsquare Media, LLC [Member]
Business Acquisition [Line Items]
Disposal of stations			55	55
Number of Townsquare radio stations acquired			10	10
Additional cash received			$ 115.8	$ 115.8	$ 115.8
Deferred tax benefit	$ 7.2	$ 7.2

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Earnings Per Shares ("EPS") (Tables)

6 Months Ended

Jun. 30, 2012

Earnings Per Share ("EPS") [Abstract]

Schedule of computation of basic and diluted earnings per common share

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Basic (Loss) Earnings Per Share
Numerator:
Undistributed net (loss) income from continuing operations	$	(1,763	)	$	(811	)	$	(14,362	)	$	13,433
Less:
Dividends declared		4,375			—			7,708			—
Accretion of redeemable preferred stock		1,852			—			4,620			—
Participation rights of unvested restricted stock in undistributed earnings		—			—			—			542
Basic undistributed net (loss) income from continuing operations - attributable to common shares	$	(7,990	)	$	(811	)	$	(26,690	)	$	12,891
Denominator:
Basic weighted average shares outstanding		157,711			40,762			153,540			40,668
Basic (loss) income from continuing operations common shares per share - attributable to common shares	$	(0.05	)	$	(0.02	)	$	(0.17	)	$	0.32
Diluted (Loss) Earnings Per Share:
Numerator:
Undistributed net (loss) income from continuing operations	$	(1,763	)	$	(811	)	$	(14,362	)	$	13,433
Less:
Dividends declared		4,375			—			7,708			—
Accretion of redeemable preferred stock		1,852			—			4,620			—
Participation rights of unvested restricted stock in undistributed earnings		—			—			—			529
Basic undistributed net (loss) income from continuing operations - attributable to common shares	$	(7,990	)	$	(811	)	$	(26,690	)	$	12,904
Denominator:
Basic weighted average shares outstanding		157,711			40,762			153,540			40,668
Effect of dilutive options and warrants		—			—			—			1,058
Diluted weighted average shares outstanding		157,711			40,762			153,540			41,726
Diluted (loss) earnings from continuing operations common shares per share - attributable to common shares	$	(0.05	)	$	(0.02	)	$	(0.17	)	$	0.31

Effect of revision on earnings per share for all periods affected

	Three Months Ended September 30, 2011						Nine Months Ended September 30, 2011
	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Basic income per common share	$	0.64	$	0.14	$	0.78	$	1.27	$	0.15	$	1.42
Diluted income per common share	$	0.60	$	0.12	$	0.72	$	1.21	$	0.14	$	1.35
	Year Ended December 31, 2011
	As Previously Reported		Adjustment		As Revised
Basic income per common share	$	0.48	$	0.14	$	0.62
Diluted income per common share	$	0.46	$	0.13	$	0.59

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Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2012

Supplemental Condensed Consolidating Financial Information [Abstract]

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	280,745		$	—		$	—		$	280,745
Management fees		296			—			—			—			—			296
Net revenues		296			—			280,745			—			—			281,041
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			168,222			524			—			168,746
Depreciation and amortization		345			—			35,855			—			—			36,200
LMA fees		—			—			885			—			—			885
Corporate general and administrative expenses (including stock-based compensation expense of $5,928)		16,802			—			—			—			—			16,802
Realized loss on derivative instrument		—			—			841			—			—			841
Impairment of intangible assets		—			—			12,435			—			—			12,435
Total operating expenses		17,147			—			218,238			524			—			235,909
Non-operating (expense) income:
Operating (loss) income		(16,851	)		—			62,507			(524	)		—			45,132
Interest expense, net		—			(49,921	)		302			—			—			(49,619	)
Loss on early extinguishment of debt		—			—			—			—			—			—
Other expense, net		—			—			(74	)		—			—			(74	)
Total non-operating expense (income), net		—			(49,921	)		228			—			—			(49,693	)
(Loss) income from continuing operations before income taxes		(16,851	)		(49,921	)		62,735			(524	)		—			(4,561	)
Income tax benefit		—			—			340			2,458			—			2,798
(Loss) income from continuing operations		(16,851	)		(49,921	)		63,075			1,934			—			(1,763	)
Income from discontinued operations, net of taxes		—			—			11,341			(1,435	)		—			9,906
Earnings (loss) from consolidated subsidiaries		24,994			74,915			499			—			(100,408	)		—
Net income (loss)	$	8,143		$	24,994		$	74,915		$	499		$	(100,408	)	$	8,143

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	61,116		$	—		$	—		$	61,116
Management fees		1,125			—			—			—			—			1,125
Net revenues		1,125			—			61,116			—			—			62,241
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			34,957			324			—			35,281
Depreciation and amortization		328			—			1,441			—			—			1,769
LMA fees		—			—			560			—			—			560
Corporate general and administrative expenses (including stock-based compensation expense of $598)		9,139			—			—			—			—			9,139
Gain on exchange of assets or stations		—			—			(120	)		—			—			(120	)
Realized loss on derivative instrument		—			—			1,205			—			—			1,205
Total operating expenses		9,467			—			38,043			324			—			47,834
Operating (loss) income		(8,342	)		—			23,073			(324	)		—			14,407
Non-operating (expense) income:
Interest expense, net		(2,747	)		(6,435	)		4			—			—			(9,178	)
Loss on early extinguishment of debt		(4,366	)		—			—			—			—			(4,366	)
Other expense, net		—			—			(92	)		—			—			(92	)
Total non-operating expense, net		(7,113	)		(6,435	)		(88	)		—			—			(13,636	)
(Loss) income from continuing operations before income taxes		(15,455	)		(6,435	)		22,985			(324	)		—			771
Income tax expense		—			—			—			(1,582	)		—			(1,582	)
(Loss) income from continuing operations		(15,455	)		(6,435	)		22,985			(1,906	)		—			(811	)
Income from discontinued operations, net of taxes		—			—			2,940			(788	)		—			2,152
Earnings (loss) from consolidated subsidiaries		16,796			23,231			(2,694	)		—			(37,333	)		—
Net income (loss)	$	1,341		$	16,796		$	23,231		$	(2,694	)	$	(37,333	)	$	1,341

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary Issuer)			Subsidiary Guarantors		Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	516,710	$	—		$	—		$	516,710
Management fees		326			—			—		—			—			326
Net revenues		326			—			516,710		—			—			517,036
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			321,396		1,046			—			322,442
Depreciation and amortization		566			—			70,441		—			—			71,007
LMA fees		—			—			1,724		—			—			1,724
Corporate general and administrative expenses (including stock-based compensation expense of $12,906)		33,494			—			—		—			—			33,494
Realized loss on derivative instrument		—			—			753		—			—			753
Impairment of intangible assets		—			—			12,435		—			—			12,435
Total operating expenses		34,060			—			406,749		1,046			—			441,855
Operating (loss) income		(33,734	)		—			109,961		(1,046	)		—			75,181
Non-operating (expense) income:
Interest (expense) income, net		—			(101,020	)		598		—			—			(100,422	)
Other expense, net		—			—			190		—			—			190
Total non-operating (expense) income, net		—			(101,020	)		788		—			—			(100,232	)
(Loss) income from continuing operations before income taxes		(33,734	)		(101,020	)		110,749		(1,046	)		—			(25,051	)
Income tax benefit		—			—			1,268		9,421			—			10,689
(Loss) income from continuing operations		(33,734	)		(101,020	)		112,017		8,375			—			(14,362	)
Income from discontinued operations, net of taxes		—			—			13,490		(3,115	)		—			10,375
Earnings (loss) from consolidated subsidiaries		29,747			130,767			5,260		—			(165,774	)		—
Net (loss) income	$	(3,987	)	$	29,747		$	130,767	$	5,260		$	(165,774	)	$	(3,987	)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	111,657		$	—		$	—		$	111,657
Management fees		2,250			—			—			—			—			2,250
Net revenues		2,250			—			111,657			—			—			113,907
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			68,457			524			—			68,981
Depreciation and amortization		719			—			2,958			—			—			3,677
LMA fees		—			—			1,141			—			—			1,141
Corporate general and administrative expenses (including stock-based compensation expense of $1,187)		17,271			—			—			—			—			17,271
Gain on exchange of assets or stations		—			—			(15,278	)		—			—			(15,278	)
Realized loss on derivative instrument		—			—			1,244			—			—			1,244
Total operating expenses		17,990			—			58,522			524			—			77,036
Operating (loss) income		(15,740	)		—			53,135			(524	)		—			36,871
Non-operating (expense) income:
Interest (expense) income, net		(9,067	)		(6,435	)		6			—			—			(15,496	)
Loss on early extinguishment of debt		(4,366	)		—			—			—			—			(4,366	)
Other expense, net		—			—			(93	)		—			—			(93	)
Total non-operating expense, net		(13,433	)		(6,435	)		(87	)		—			—			(19,955	)
(Loss) income from continuing operations before income taxes		(29,173	)		(6,435	)		53,048			(524	)		—			16,916
Income tax expense		—			—			(220	)		(3,263	)		—			(3,483	)
(Loss) income from continuing operations		(29,173	)		(6,435	)		52,828			(3,787	)		—			13,433
Income from discontinued operations, net of taxes		—			—			5,063			(1,036	)		—			4,027
Earnings (loss) from consolidated subsidiaries		46,633			53,068			(4,823	)		—			(94,878	)		—
Net income (loss)	$	17,460		$	46,633		$	53,068		$	(4,823	)	$	(94,878	)	$	17,460

CONDENSED CONSOLIDATED BALANCE SHEETS

	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	$	11,714		$	—	$	18,878		$	—		$	—		$	30,592
Restricted cash		3,854			—		—			—			—			3,854
Accounts receivable, less allowance for doubtful accounts of $2,765		—			—		236,804			—			—			236,804
Trade receivable		—			—		5,967			—			—			5,967
Compensation held in trust		24,807														24,807
Prepaid expenses and other current assets		6,542			—		14,762			1,011			—			22,315
Total current assets		46,917			—		276,411			1,011			—			324,339
Property and equipment, net		6,555			—		271,515			—			—			278,070
Broadcast licenses		—			—		—			1,625,415			—			1,625,415
Other intangible assets, net		—			—		390,509			—			—			390,509
Goodwill		—			—		1,334,512			—			—			1,334,512
Investment in consolidated subsidiaries		323,436			3,247,865		1,157,317			—			(4,728,618	)		—
Other assets		13,577			55,176		18,993			—			—			87,746
Total assets	$	390,485		$	3,303,041	$	3,449,257		$	1,626,426		$	(4,728,618	)	$	4,040,591
Liabilities, Redeemable Preferred Stockand Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	57,220		$	15,621	$	87,070		$	275		$	—		$	160,186
Trade payable		—			—		4,999			—			—			4,999
Current portion of long-term debt		—			13,250		—			—			—			13,250
Total current liabilities		57,220			28,871		92,069			275			—			178,435
Long-term debt, excluding 7.75% senior notes		—			2,227,287		—			—			—			2,227,287
7.75% senior notes		—			610,000		—			—			—			610,000
Other liabilities		42,552			—		21,386			—			—			63,938
Deferred income taxes		—			—		87,937			468,834			—			556,771
Total liabilities		99,772			2,866,158		201,392			469,109			—			3,636,431
Redeemable preferred stock:
Series A cumulative redeemable preferred stock, par value $0.01 per share; stated value of $1,000 per share; 100,000,000 shares authorized; 125,000 shares issued and outstanding		—			113,447		—			—			—			113,447
Total redeemable preferred stock		—			113,447		—			—			—			113,447
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share;
750,000,000 shares authorized; 160,783,484shares issued and 137,085,813 shares outstanding		1,608			—		—			—			—			1,608
Class B common stock, par value $0.01 per share;
600,000,000 shares authorized; 12,439,667shares issued and outstanding		124			—		—			—			—			124
Class C common stock, par value $0.01 per share;
644,871 shares authorized; 644,871 sharesissued and outstanding		6			—		—			—			—			6
Treasury stock, at cost, 23,697,671 shares		(251,666	)		—		—			—			—			(251,666	)
Additional paid-in-capital		1,526,114			169,234		3,972,850			2,131,251			(6,273,335	)		1,526,114
Accumulated (deficit) equity		(985,473	)		154,202		(724,985	)		(973,934	)		1,544,717			(985,473	)
Total stockholders’ equity (deficit)		290,713			323,436		3,247,865			1,157,317			(4,728,618	)		290,713
Total liabilities, redeemable preferred stock andstockholders’ equity (deficit)	$	390,485		$	3,303,041	$	3,449,257		$	1,626,426		$	(4,728,618	)	$	4,040,591

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	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	$	(3,987	)	$	29,747		$	130,767		$	5,260		$	(165,774	)	$	(3,987	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		566			—			71,676			—			—			72,242
Amortization of debt issuance costs/discounts		—			5,061			—			—			—			5,061
Loss on early extinguishment of debt		—															—
Provision for doubtful accounts		—			—			1,598			—			—			1,598
Gain on sale of assets or stations		—			—			(183	)		—			—			(183	)
Impairment of intangible assets		—						12,435									12,435
Fair value adjustment of derivative instruments		250			—			753			—			—			1,003
Deferred income taxes		—			—			(7,991	)		(6,311	)		—			(14,302	)
Stock-based compensation expense		12,906			—			—			—			—			12,906
Earnings from consolidated subsidiaries		29,747			130,767			5,260			—			(165,774	)		—
Changes in assets and liabilities		(34,105	)		(102,117	)		(227,960	)		1,051			331,548			(31,583	)
Net cash provided by (used in) operating activities		5,377			63,458			(13,645	)		—			—			55,190
Cash flows from investing activities:
Proceeds from sale of assets or stations		426			—			—			—			—			426
Capital expenditures		(676	)		—			(1,243	)		—			—			(1,919	)
Net cash used in investing activities		(250	)		—			(1,243	)		—			—			(1,493	)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities		—			(57,000	)		—			—			—			(57,000	)
Tax withholding payments on behalf of employees		(1,909	)		—			—			—			—			(1,909	)
Preferred stock dividends		—			(6,458	)		—			—			—			(6,458	)
Exercise of warrants		161			—			—			—			—			161
Net cash used in by financing activities		(1,748	)		(63,458	)		—			—			—			(65,206	)
Increase (decrease) in cash and cash equivalents		3,379			—			(14,888	)		—			—			(11,509	)
Cash and cash equivalents at beginning of period		11,714			—			18,878			—			—			30,592
Cash and cash equivalents at end of period	$	15,093		$	—		$	3,990		$	—		$	—		$	19,083

	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)	$	17,460		$	46,633		$	53,068		$	(4,823	)	$	(94,878	)	$	17,460
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		719			—			3,293			—			—			4,012
Amortization of debt issuance costs/discounts		445			288			—			—			—			733
Provision for doubtful accounts		—			—			644			—			—			644
Loss on sale of assets or stations		—			.			93			—			—			93
Gain on exchange of assets or stations		—			—			(15,278	)		—			—			(15,278	)
Fair value adjustment of derivative instruments		(3,683	)		—			1,244			—			—			(2,439	)
Deferred income taxes		—			—			—			4,299			—			4,299
Stock-based compensation expense		1,187			—			—			—			—			1,187
Loss on early extinguishment of debt		4,366			—			—			—			—			4,366
Earnings from consolidated subsidiaries		46,633			53,068			(4,823	)		—			(94,878	)		—
Changes in assets and liabilities		544,230			(692,482	)		(36,953	)		694			189,756			5,245
Net cash provided by (used in) operating activities		611,357			(592,493	)		1,288			170			—			20,322
Cash flows from investing activities:
Capital expenditures		(252	)		—			(1,253	)		—			—			(1,505	)
Purchase of intangible assets		—			—			—			(170	)		—			(170	)
Net cash used in investing activities		(252	)		—			(1,253	)		(170	)		—			(1,675	)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities		(593,754	)		—			—			—			—			(593,754	)
Tax withholding payments on behalf of employees		(666	)		—			—			—			—			(666	)
Exercise of warrants		19			—			—			—			—			19
Proceeds from issuance of senior notes		—			610,000			—			—			—			610,000
Deferred financing costs		—			(17,507	)		—			—			—			(17,507	)
Net cash (used in) provided by financing activities		(594,401	)		592,493			—			—			—			(1,908	)
(Decrease) increase in cash and cash equivalents		16,704			—			35			—			—			16,739
Cash and cash equivalents at beginning of period		12,638			—			176			—			—			12,814
Cash and cash equivalents at end of period	$	29,342		$	—		$	211		$	—		$	—		$	29,553

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Acquisitions and Dispositions

6 Months Ended

Jun. 30, 2012

Acquisitions and Dispositions [Abstract]

Acquisitions and Dispositions

2. Acquisitions and Dispositions

2012 Acquisitions

The Company did not complete any material acquisitions during the three or six months ended June 30, 2012. However, on July 31, 2012, the Company completed its previously announced sale of 55 stations in eleven non-strategic markets to Townsquare Media, LLC (“Townsquare”) in exchange for ten of Townsquare’s radio stations in Bloomington, IL and Peoria, IL, plus approximately $115.8 million in cash. The transaction is part of the Company’s ongoing efforts to focus on radio stations in top markets and geographically strategic regional clusters. The stations sold by the Company operated in the following markets: Augusta, ME; Bangor, ME; Binghamton, NY; Bismarck, ND; Grand Junction, CO; Killeen-Temple, TX; New Bedford, MA; Odessa-Midland, TX; Presque Isle, ME; Sioux Falls, SD and Tuscaloosa, AL. The Company used the majority of the proceeds to pay down outstanding debt. For additional information about this transaction, see Note 3, “Discontinued Operations.”

2011 Acquisitions

Ann Arbor, Battle Creek and Canton Asset Exchange

On February 18, 2011, the Company completed an asset exchange with Clear Channel Communications, Inc. (“Clear Channel”). As part of the asset exchange, Cumulus acquired eight of Clear Channel’s radio stations located in Ann Arbor and Battle Creek, Michigan in exchange for its radio station in Canton, Ohio. The Company disposed of two of the Battle Creek stations simultaneously with the closing of the transaction to comply with Federal Communications Commission (“FCC”) broadcast ownership limits. The asset exchange was accounted for as a business combination in accordance with FASB’s guidance. The fair value of the assets acquired in the asset exchange was $17.4 million. The Company incurred approximately $0.3 million in acquisition costs related to this transaction and expensed them as incurred through earnings within corporate, general and administrative expense. The $4.3 million allocated to goodwill is deductible for tax purposes. The results of operations for the Ann Arbor and Battle Creek stations acquired, which were not material, have been included in our statements of operations since 2007 when the Company entered into a LMA with Clear Channel to manage the stations. Prior to the asset exchange, the Company did not have any preexisting relationship with Clear Channel with regard to the Canton, Ohio market.

In conjunction with this asset exchange, the Company recorded a net gain of $15.3 million, which is included in gain on exchange of assets or stations in the accompanying condensed consolidated statements of operations in the six months ended June 30, 2011.

The table below summarizes the final purchase price allocation from this asset exchange (dollars in thousands):

Allocation	Amount
Property and equipment	$	1,790
Broadcast licenses		11,190
Goodwill		4,342
Other intangibles		72
Total purchase price		17,394
Less: Carrying value of Canton station		(2,116	)
Gain on asset exchange	$	15,278

CMP Acquisition

On August 1, 2011, the Company completed its previously announced acquisition of the remaining 75.0% of the equity interests of Cumulus Media Partners LLC (“CMP”) that it did not already own (the “CMP Acquisition”). The Company had owned 25.0% of CMP’s equity interests since it, together with Bain Capital Partners, LLC (“Bain”), The Blackstone Group L.P. (“Blackstone”) and Thomas H. Lee Partners, L.P. (“THL,” and together with Bain and Blackstone, the “CMP Sellers”), formed CMP in 2005. Pursuant to a management agreement, the Company had been operating CMP’s business since 2006. This management agreement was terminated in connection with the completion of the CMP Acquisition. In connection with the CMP Acquisition, the Company issued 9.9 million shares of its common stock to affiliates of the CMP Sellers. Blackstone received 3.3 million shares of the Company’s Class A common stock and, in accordance with FCC broadcast ownership rules, Bain and THL each received 3.3 million shares of a newly authorized Class D non-voting common stock, par value $0.01 per share (the “Class D common stock”). This Class D common stock was subsequently converted into an equivalent number of shares of the Company’s Class B common stock, par value $0.01 per share (the “Class B common stock”), with substantially identical terms, pursuant to the terms of the Company’s third amended and restated certificate of incorporation (the “Third Amended and Restated Charter”) which became effective upon the effectiveness of the Citadel Acquisition (defined below). Also in connection with the CMP Acquisition, outstanding warrants to purchase 3.7 million shares of common stock of Radio Holdings were amended to instead become exercisable for up to 8.3 million shares of the Company’s common stock. CMP’s operating results have been included in Cumulus’ consolidated financial statements since the date of the completion of the CMP Acquisition.

As a component of the CMP Acquisition, the Company acquired an interest in the San Francisco Baseball Associates L.P. The fair value of this interest as of the date of the CMP Acquisition was $9.8 million. This interest is included in other long-term assets on the Company’s condensed consolidated balance sheet and is carried under the cost method.

Under the acquisition method of accounting for business combinations, the purchase price for the CMP Acquisition has been allocated among the tangible and intangible assets acquired and liabilities assumed based on their fair values as of the acquisition date. Goodwill as of the acquisition date was measured as the excess of consideration over the net acquisition date fair value of the assets acquired and the liabilities assumed. The fair values of the assets acquired and liabilities assumed represent management’s estimates based on information available as of the date of acquisition. The Company fair valued its historical 25.0% equity interest in CMP and recorded a gain of $11.6 million, the difference between the fair value at the date of completion of the CMP Acquisition and the carrying value, which was zero, given CMP’s historical losses. With respect to certain outstanding preferred stock of CMP, the Company recorded $0.5 million in dividends for the period from August 1, 2011, the acquisition date, to September 16, 2011. This preferred stock was redeemed on September 16, 2011 for approximately $41.6 million.

The table below summarizes the final purchase price allocation in the CMP Acquisition (dollars in thousands):

Fair Value of Consideration Transferred	Amount
Fair value of equity consideration to CMP Sellers (1)	$	34,909
Fair value of equity consideration to holders of CMP Restated Warrants (2)		29,021
Preferred stock of CMP (3)		41,069
Fair value of assumed debt		619,234
Total purchase price		724,233
Existing equity interest in CMP (4)		11,636
Total fair value for allocation	$	735,869

(1) Fair value, equal to the closing price of the Company’s Class A common stock on the NASDAQ Global Select Market (“NASDAQ”) on August 1, 2011, of the 9.9 million shares of our common stock issued to affiliates of the CMP Sellers.

(2) Fair value, equal to the closing price of the Company’s Class A common stock on the NASDAQ on August 1, 2011, of the CMP Restated Warrants, which are exercisable for 8.3 million shares of our common stock.

(3) Fair value of preferred stock is the par value of $32.8 million plus cumulative undeclared dividends of $8.3 million.

(4) Equal to the closing price of our Class A common stock on the NASDAQ on August 1, 2011, multiplied by the estimated 3.3 million shares of common stock that we would have received in exchange for the equity interests in CMP that the Company owned immediately prior to the CMP Acquisition.

The table below summarizes the final purchase price allocation in the CMP Acquisition among the tangible and intangible assets acquired, and liabilities assumed, based on management’s estimates of their fair values as of the date of the CMP Acquisition (dollars in thousands):

Allocation	Amount
Current assets	$	61,598
Property and equipment		29,092
Broadcast licenses		317,917
Other intangibles		94,422
Goodwill		403,130
Other assets		11,014
Current liabilities		(12,869	)
Other long-term liabilities		(5,730	)
Deferred income taxes		(162,705	)
Total purchase price	$	735,869

The material assumptions utilized in the valuation of intangible assets included overall future market revenue growth rates for the residual year of approximately 2.0% and weighted average cost of capital of 10.5%. Goodwill was equal to the difference between the purchase price and the value assigned to tangible and intangible assets and liabilities. $402.6 million of the acquired goodwill balance is non-deductible for tax purposes. Among the factors considered by management that contributed to the purchase price allocation resulting in the recognition of goodwill were CMP’s high operating margins, strong sales force and employee base, and its overall market presence.

The indefinite-lived intangible assets acquired in the CMP Acquisition consist of broadcast licenses and goodwill. The definite-lived intangible assets acquired in the CMP Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years		Fair Value
Advertising relationships		6	$	94,422

Citadel Acquisition

The Company completed the Citadel Acquisition on September 16, 2011 for an aggregate purchase price of approximately $2.3 billion, consisting of approximately $1.4 billion in cash, the issuance of 23.6 million shares of the Company’s Class A common stock, including 0.9 million restricted shares, warrants to purchase 47.6 million shares of Class A common stock, 2.4 million warrants held in reserve for potential future issuance related to the pending final settlement of certain outstanding unsecured claims arising from Citadel’s emergence from bankruptcy, and the consideration to repay the outstanding debt of Citadel. As a result of the Citadel Acquisition, Citadel became an indirect wholly owned subsidiary of the Company. Citadel’s operating results have been included in Cumulus’ consolidated financial statements since the date of the completion of the Citadel Acquisition.

Also on September 16, 2011 and in connection with the Citadel Acquisition, the Company issued and sold 51.8 million shares of Class A common stock and warrants to purchase 7.8 million shares of Class A common stock to an affiliate of Crestview Partners II, L.P. (“Crestview”), 125,000 shares of Series A preferred stock to an affiliate of Macquarie Capital (USA) Inc. (“Macquarie”), and 4.7 million shares of Class A common stock and immediately exercisable warrants to purchase 24.1 million shares of Class A common stock to UBS Securities LLC (“UBS”) and certain other entities.

In connection with the closing of the Citadel Acquisition and the completion of the Company’s previously announced related global refinancing (the “Global Refinancing”), on September 16, 2011, the Company repaid approximately $1.4 billion in outstanding senior or subordinated indebtedness and other obligations of (a) the Company, (b) certain of the Company’s wholly-owned subsidiaries, and (c) Citadel. This Global Refinancing, and the cash portion of the purchase price paid in the Citadel Acquisition, were funded with (i) $1.325 billion in borrowings under a new first lien term loan, $200.0 million in borrowings under a new first lien revolving credit facility and $790.0 million in borrowings under a new second lien term loan, all as described in more detail in Note 7, “Long-Term Debt,” and (ii) proceeds from the sale of $475.0 million of the Company’s common stock, preferred stock and warrants to purchase common stock to certain investors (see Note 10, “Stockholders’ Equity”). The $610.0 million of 7.75% Senior Notes due 2019 (the “7.75% Senior Notes”) issued by the Company in May 2011 remained outstanding.

In connection with the Citadel Acquisition, the Company completed its previously announced internal restructuring into a holding company structure, which included transferring the remaining assets and operations held directly or indirectly by the Company, other than the equity interests of its direct wholly-owned subsidiary Cumulus Media Holdings Inc. (“Cumulus Holdings”), to Cumulus Holdings (the “Internal Restructuring”).

Also, in connection with the Citadel Acquisition, the Company agreed that it would divest certain stations to comply with FCC ownership limits. These stations were assigned to a trustee under divestiture trusts that comply with FCC rules. The trust agreements stipulate that the Company must fund any operating shortfalls of the activities of the stations in the trusts, and any excess cash flow generated by such stations will be distributed to the Company. The Company has determined that it is the primary beneficiary of the trusts and, accordingly, consolidates the trusts.

Under the acquisition method of accounting for business combinations, the purchase price in the Citadel Acquisition has been allocated among the tangible and intangible assets acquired and liabilities assumed based on their fair values as of the acquisition date. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The fair value of the assets acquired and liabilities assumed represent management’s estimates based on information available as of the date of acquisition.

The table below summarizes the final purchase price allocation in the Citadel Acquisition (dollars in thousands):

Fair Value of Consideration Transferred	Amount
Cash consideration to Citadel stockholders	$	1,405,471
Common stock issued to Citadel stockholders (1)		178,122
Stock-based compensation value		576
Cash consideration to Citadel to settle Citadel obligations		736,072
Total purchase price	$	2,320,241

(1) Fair value of the 22.7 million shares of the Company’s common stock and warrants to purchase 47.6 million shares of the Company’s common stock issued in the Citadel Acquisition and 2.4 million warrants held in reserve for potential future issuance related to the pending final settlement of certain outstanding unsecured claims arising from Citadel’s emergence from bankruptcy, based on the closing price of the Company’s Class A common stock on September 15, 2011.

Certain termination-related compensation amounts resulting from the Citadel Acquisition were funded prior to closing and were classified as compensation held in trust on the condensed consolidated balance sheet as of December 31, 2011. These amounts were settled during the first quarter of 2012.

The table below summarizes the final purchase price allocation in the Citadel Acquisition among the tangible and intangible assets acquired, and liabilities assumed, therein based on management’s estimates of their fair values as of the date of the Citadel Acquisition (dollars in thousands):

Allocation	Amount
Current assets	$	328,306
Property and equipment		221,697
Broadcast licenses		1,135,669
Other intangibles		333,480
Goodwill		861,305
Other assets		18,794
Current liabilities		(106,799	)
Other long-term liabilities		(38,660	)
Deferred income taxes		(433,551	)
Total purchase price	$	2,320,241

The material assumptions utilized in the valuation of intangible assets included expected overall future market revenue growth rates for the residual year of approximately 2.0% and a weighted average cost of capital of 10.0%. Goodwill is equal to the difference between the purchase price and the value assigned to tangible and intangible assets and liabilities. $756.6 million of the acquired goodwill balance is non-deductible for income tax purposes. Among the factors considered by management that contributed to the purchase price allocation resulting in the recognition of goodwill were Citadel’s station platform throughout prominent national markets and its overall employee base, including its experienced sales force. During the three and six months ended June 30, 2012, the Company recorded goodwill purchase accounting adjustments primarily related to fair value adjustments of assets and liabilities totaling approximately $9.1 million and $8.3 million, respectively. These adjustments are reflected in the table above.

The indefinite-lived intangible assets acquired in the Citadel Acquisition consist of broadcast licenses and goodwill.

The definite-lived intangible assets acquired in the Citadel Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years		Fair Value
Broadcast advertising relationships		6	$	235,800
Affiliate relationships		5		40,700
Network advertising relationships		5		18,300
Other contracts and agreements		2-4		38,680

The following pro forma information assumes the CMP Acquisition and the Citadel Acquisition occurred as of January 1, 2010. The pro forma financial information also includes the business combination accounting effects of the CMP Acquisition and the Citadel Acquisition, including Cumulus’s amortization expense resulting from acquired intangible assets, the elimination of certain intangible asset amortization expense incurred by CMP and Citadel, adjustments to interest expense for certain borrowings, adjustments for transaction-related expenses and the related tax effects. This pro forma financial information has been prepared based on estimates and assumptions, which management believes are reasonable, and is not necessarily indicative of the consolidated financial position or results of operations that Cumulus would have achieved had either the CMP Acquisition or the Citadel Acquisition actually occurred on January 1, 2010 or on any other historical date, nor is it reflective of the Company’s expected actual financial position or results of operations for any future period (dollars in thousands):

	Supplemental Pro Forma Data
Description	Three Months Ended June 30, 2011		Six Months Ended June 30, 2011
Total revenue	$	300,061	$	554,305
Net income		3,666		572

The pro forma financial information set forth above for the three and six months ended June 30, 2011 includes adjustments to reflect: (i) depreciation and amortization expense based on the fair value of long-lived assets acquired in the CMP Acquisition and the Citadel Acquisition; (ii) interest expense assuming the 7.75% Senior Notes were issued and outstanding and replaced the Company’s historical debt for all periods; (iii) the completion of the Global Refinancing undertaken in connection with the completion of the Citadel Acquisition for all periods; and (iv) certain other pro forma adjustments that would be required to be made to prepare pro forma financial information under ASC Topic 805, Business Combinations.

Completed Dispositions

The Company did not complete any material dispositions during the three or six months ended June 30, 2012 or 2011.

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Description of Business Interim Financial Data and Basis Of Presentation (Details)	6 Months Ended
	Jun. 30, 2012
Description of Business, Interim Financial Data and Basis of Presentation [Abstract]
Number of radio stations owned or operated by Cumulus Media	570
Number of U S Media markets	120
Stations served by a nationwide radio network	4,000

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Acquisitions and Dispositions (Details 7) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Pro forma financial information in the assumption that CMP Acquisition and the Citadel Acquisition occurred as of January 1, 2010
Total revenue	$ 281,041	$ 62,241	$ 517,036	$ 113,907
Net (loss) income	8,143	1,341	(3,987)	17,460
Pro Forma [Member]
Pro forma financial information in the assumption that CMP Acquisition and the Citadel Acquisition occurred as of January 1, 2010
Total revenue		300,061		554,305
Net (loss) income		$ 3,666		$ 572

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Long-Term Debt (Details Textual) (USD $)	3 Months Ended	6 Months Ended				6 Months Ended			6 Months Ended		6 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 16, 2011	May 13, 2011	Jun. 30, 2012 J P Morgan [Member]	Jun. 30, 2012 Interest Rate Cap [Member] J P Morgan [Member]	Dec. 08, 2011 Interest Rate Cap [Member] J P Morgan [Member]	Jun. 30, 2012 First Lien Facility [Member]	Sep. 16, 2011 First Lien Facility [Member]	Jun. 30, 2012 Revolving Credit Facility [Member]	Sep. 16, 2011 Revolving Credit Facility [Member]	Jun. 30, 2012 Second Lien Facility [Member]	Sep. 16, 2011 Second Lien Facility [Member]
Long-Term Debt (Textual) [Abstract]
Total credit facility	$ 2,185,240,000	$ 2,185,240,000	$ 2,240,537,000							$ 1,325,000,000		$ 300,000,000		$ 790,000,000
Net of discount										13,500,000				12,000,000
Less: Letters of credit drawn				30,000,000
Swingline borrowings				30,000,000
Amount outstanding									1,318,000,000		100,000,000		790,000,000
Interest on LIBOR-based borrowings									4.50%				6.00%
Interest on LIBOR-based borrowings									LIBOR plus 4.5 %				LIBOR plus 6.0 %
Interest on LIBOR-based loan						3.00%
LIBOR floor									1.25%		1.00%		1.50%
Interest on Base Rate-based borrowings on Second Lien Facility													Base Rate plus 5.0 %
Interest on Base Rate-based borrowings									3.50%				5.00%
Base Rate Floor									2.25%		2.00%		2.50%
Amortization rate per annum		1.00%
Date of Amortization		Mar. 31, 2012
Interest on borrowings, per annum									5.75%		5.50%		7.50%
Security interest granted									66.00%				66.00%
Federal Funds Rate									1.00%		1.00%		1.00%
Federal Funds Rate									Federal Reserve Bank Rate plus 1/2 of 1.0%		Federal Reserve Bank Rate plus 1/2 of 1.0%		Federal Reserve Bank Rate plus 1/2 of 1.0%
Base Rate									1.00%		1.00%		1.00%
Base Rate									30 day LIBOR plus 1.0%		30 day LIBOR plus 1.0%		30 day LIBOR plus 1.0%
Net Leverage Ratio Minimum											100.00%
Net Leverage Ratio Maximum											750.00%
Interest rate cap agreement							71,300,000	71,300,000
Agreement maturity date		May 01, 2019					Dec. 08, 2015		Sep. 01, 2018		Sep. 01, 2016		Sep. 01, 2019
Amortization costs	2,100,000	5,100,000
Senior Notes issued					610,000,000
Amount repaid under outstanding term loan facility		$ 575,800,000
Percentage of Senior Notes to be redeemed prior to May 1, 2014		35.00%
Percentage of Senior Notes to be redeemed prior to May 1, 2015		100.00%

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 19,083	$ 30,592	$ 29,553	$ 12,814
Restricted cash	3,854	3,854
Accounts receivable, less allowance for doubtful accounts of $3,694 and $2,765 at June 30, 2012 and December 31, 2011, respectively	233,776	236,804
Trade receivable	7,178	5,967
Compensation held in trust		24,807
Prepaid expenses and other current assets	26,059	22,315
Current assets held for sale	72,350
Total current assets	362,300	324,339
Property and equipment, net	262,078	278,070
Broadcast licenses	1,598,228	1,625,415
Other Intangible assets, net	315,539	390,509	505	552
Goodwill	1,292,725	1,334,512	60,422	56,079
Other assets	83,586	87,746
Total assets	3,914,456	4,040,591
Current liabilities:
Accounts payable and accrued expenses	112,108	160,186
Trade payable	5,392	4,999
Current portion of long-term debt	13,250	13,250
Total current liabilities	130,750	178,435
Long-term debt, excluding 7.75% senior notes	2,171,990	2,227,287
7.75% senior notes	610,000	610,000
Other liabilities	62,512	63,938
Deferred income taxes	542,466	556,771
Total liabilities	3,517,718	3,636,431
Redeemable preferred stock:
Preferred stock redeemed value	118,231	113,447
Stockholders' Equity
Treasury stock, at cost, 24,117,787 and 23,697,671 shares at June 30, 2012 and December 31, 2011, respectively	(251,915)	(251,666)
Additional paid-in-capital	1,517,988	1,526,114
Accumulated deficit	(989,459)	(985,473)
Total stockholders' equity	278,507	290,713
Total liabilities, redeemable preferred stock and stockholders' equity	3,914,456	4,040,591
Common Class A
Stockholders' Equity
Common stock	1,763	1,608
Common Class B
Stockholders' Equity
Common stock	124	124
Common Class C
Stockholders' Equity
Common stock	6	6
Series A Redeemable Preferred Stock
Redeemable preferred stock:
Preferred stock redeemed value	$ 118,231	$ 113,447

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Restricted Cash (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Restricted Cash (Textual) [Abstract]
Restricted cash	$ 3,854,000	$ 3,854,000
Restricted cash reserve from Citadel Acquisition	2,200,000
Restricted cash balance relates to company's bank accounts	$ 1,600,000

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net (loss) income	$ (3,987)	$ 17,460
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	71,007	3,677
Amortization of debt issuance costs/discounts	5,061	733
Provision for doubtful accounts	1,598	644
(Gain) loss on sale of assets or stations	(183)	93
Gain on exchange of assets or stations		(15,278)
Impairment of intangible assets	12,435
Fair value adjustment of derivative instruments	1,003	(2,439)
Deferred income taxes	(14,302)	4,299
Stock-based compensation expense	12,906	1,187
Loss on early extinguishment of debt		4,366
Changes in assets and liabilities:
Restricted cash		4
Accounts receivable	4,789	(2,979)
Trade receivable	(1,211)	(544)
Prepaid expenses and other current assets	(1,217)	487
Other assets	(715)	710
Accounts payable and accrued expenses	(31,407)	8,011
Trade payable	393	504
Other liabilities	(2,215)	(948)
Net cash provided by operating activities	55,190	20,322
Cash flows from investing activities:
Proceeds from sale of assets or stations	426
Capital expenditures	(1,919)	(1,505)
Purchase of intangible assets		(170)
Net cash used in investing activities	(1,493)	(1,675)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities	(57,000)	(593,754)
Tax withholding payments on behalf of employees	(1,909)	(666)
Preferred stock dividends	(6,458)
Exercise of warrants	161	19
Proceeds from issuance of senior notes		610,000
Deferred financing costs		(17,507)
Net cash used in financing activities	(65,206)	(1,908)
(Decrease) increase in cash and cash equivalents	(11,509)	16,739
Cash and cash equivalents at beginning of period	30,592	12,814
Cash and cash equivalents at end of period	19,083	29,553
Supplemental disclosures of cash flow information:
Interest paid	97,441	12,214
Income taxes paid	2,909	144
Supplemental disclosures of non-cash flow information:
Compensation held in trust	24,807
Trade revenue	13,642	7,611
Trade expense	$ 12,705	$ 7,326

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Redeemable Preferred Stock (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Sep. 16, 2011
Redeemable Preferred Stock (Textual) [Abstract]
Preferred stock, shares authorized						100,000,000
Preferred stock, par/stated value	$ 0.01		$ 0.01		$ 0.01	$ 0.01
Preferred stock, shares issued	125,000		125,000
Net proceeds to the Company			$ 110.7
Preferred stock issuance fee			14.3
Dividends accrued	4.4
Dividends paid	3.3	0		0
Dividends accreted	2.4	0		0
Series A Redeemable Preferred Stock [Member]
Redeemable Preferred Stock (Textual) [Abstract]
Preferred stock, shares authorized	2,000,000		2,000,000
Preferred stock, par/stated value	$ 0.01		$ 0.01
Liquidation preference	$ 1,000		$ 1,000
Preferred stock, shares issued						125,000
Preferred Stock aggregate amount	125.0		125.0
Additional Series A Preferred Stock issued			50.00%
Rate of Dividend accrual till March 15, 2012			10.00%
Rate of Dividend accrual through September 15, 2013			14.00%
Rate of Dividend accrual from September 16, 2013 to September 15, 2015			17.00%
Rate of Dividend accrual after September 16, 2015			20.00%
Dividends accrued			7.7
Dividends paid			6.5
Dividends accreted			$ 4.8

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Acquisitions and Dispositions [Details 2] (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Final purchase price allocation in Cmp Acquisition among the tangible and intangible assets acquired, and liabilities assumed
Property and equipment	$ 1,790
Broadcast licenses	11,190
Other intangibles	72
Goodwill	4,342
Total purchase price	17,394
CMP Acquisition [Member]
Final purchase price allocation in Cmp Acquisition among the tangible and intangible assets acquired, and liabilities assumed
Current assets	61,598
Property and equipment	29,092
Broadcast licenses	317,917
Other intangibles	94,422
Goodwill	403,130
Other assets	11,014
Current liabilities	(12,869)
Other long-term liabilities	(5,730)
Deferred income taxes	(162,705)
Total purchase price	$ 724,233

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Income Taxes (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Taxes (Textual) [Abstract]
Income tax benefit (expense)	$ 2,798,000	$ (1,582,000)	$ 10,689,000	$ (3,483,000)
Pre-tax [loss]	$ 4,600,000	$ 800,000	$ 25,100,000	$ 16,900,000
Effective income tax rate	60.90%	200.00%	42.60%	20.70%
Federal statutory income tax rate			35.00%

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Subsequent Event

6 Months Ended

Jun. 30, 2012

Subsequent Event [Abstract]

Subsequent Event

16. Subsequent Event

On July 31, 2012, the Company completed its previously announced sale of 55 stations in eleven non-strategic markets to Townsquare in exchange for ten of Townsquare’s radio stations in Bloomington, IL and Peoria, IL, plus approximately $115.8 million in cash. The transaction is part of the Company’s ongoing efforts to focus on radio stations in top markets and geographically strategic regional clusters. The stations sold by the Company operated in the following markets: Augusta, ME; Bangor, ME; Binghamton, NY; Bismarck, ND; Grand Junction, CO; Killeen-Temple, TX; New Bedford, MA; Odessa-Midland, TX; Presque Isle, ME; Sioux Falls, SD and Tuscaloosa, AL. The Company used a majority of the proceeds to repay outstanding borrowings under its Revolving Credit Facility which amounts are available for further reborrowing, and to repurchase and redeem a portion of its outstanding Series A Preferred Stock. Accordingly, the results of operations associated with these stations were separately reported, net of the related tax impact, for all periods presented in the accompanying condensed consolidated statements of operations, and the aggregate amount of assets to be disposed of has been classified as assets held for sale as of June 30, 2012.

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Acquisitions and Dispositions (Details 3) (Advertising relationships [Member], USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Advertising relationships [Member]
Amortization of definite-lived intangible assets acquired in the CMP Acquisition, in relation to the expected economic benefits of such assets
Estimated Useful Life in Years	6 years
Fair Value	$ 94,422

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Acquisitions and Dispositions (Tables)

6 Months Ended

Jun. 30, 2012

Acquisitions and Dispositions [Abstract]

Final purchase price allocation from asset exchange

Allocation	Amount
Property and equipment	$	1,790
Broadcast licenses		11,190
Goodwill		4,342
Other intangibles		72
Total purchase price		17,394
Less: Carrying value of Canton station		(2,116	)
Gain on asset exchange	$	15,278

Final purchase price allocation in the CMP Acquisition

Fair Value of Consideration Transferred	Amount
Fair value of equity consideration to CMP Sellers (1)	$	34,909
Fair value of equity consideration to holders of CMP Restated Warrants (2)		29,021
Preferred stock of CMP (3)		41,069
Fair value of assumed debt		619,234
Total purchase price		724,233
Existing equity interest in CMP (4)		11,636
Total fair value for allocation	$	735,869

(1) Fair value, equal to the closing price of the Company’s Class A common stock on the NASDAQ Global Select Market (“NASDAQ”) on August 1, 2011, of the 9.9 million shares of our common stock issued to affiliates of the CMP Sellers.

(2) Fair value, equal to the closing price of the Company’s Class A common stock on the NASDAQ on August 1, 2011, of the CMP Restated Warrants, which are exercisable for 8.3 million shares of our common stock.

(3) Fair value of preferred stock is the par value of $32.8 million plus cumulative undeclared dividends of $8.3 million.

(4) Equal to the closing price of our Class A common stock on the NASDAQ on August 1, 2011, multiplied by the estimated 3.3 million shares of common stock that we would have received in exchange for the equity interests in CMP that the Company owned immediately prior to the CMP Acquisition.

Final purchase price allocation in CMP Acquisition among the tangible and intangible assets acquired, and liabilities assumed

Allocation	Amount
Current assets	$	61,598
Property and equipment		29,092
Broadcast licenses		317,917
Other intangibles		94,422
Goodwill		403,130
Other assets		11,014
Current liabilities		(12,869	)
Other long-term liabilities		(5,730	)
Deferred income taxes		(162,705	)
Total purchase price	$	735,869

Amortization of definite-lived intangible assets acquired in the CMP acquisition, in relation to the expected economic benefits of such assets

Description	Estimated Useful Life in Years		Fair Value
Advertising relationships		6	$	94,422

Final purchase price allocation in Citadel Acquisition

Fair Value of Consideration Transferred	Amount
Cash consideration to Citadel stockholders	$	1,405,471
Common stock issued to Citadel stockholders (1)		178,122
Stock-based compensation value		576
Cash consideration to Citadel to settle Citadel obligations		736,072
Total purchase price	$	2,320,241

(1) Fair value of the 22.7 million shares of the Company’s common stock and warrants to purchase 47.6 million shares of the Company’s common stock issued in the Citadel Acquisition and 2.4 million warrants held in reserve for potential future issuance related to the pending final settlement of certain outstanding unsecured claims arising from Citadel’s emergence from bankruptcy, based on the closing price of the Company’s Class A common stock on September 15, 2011.

Final purchase price allocation in the Citadel Acquisition among the tangible and intangible assets acquired, and liabilities assumed

Allocation	Amount
Current assets	$	328,306
Property and equipment		221,697
Broadcast licenses		1,135,669
Other intangibles		333,480
Goodwill		861,305
Other assets		18,794
Current liabilities		(106,799	)
Other long-term liabilities		(38,660	)
Deferred income taxes		(433,551	)
Total purchase price	$	2,320,241

Amortization of definite- lived intangible assets in Citadel Acquisition, in relation to the expected economic benefits of such assets

Description	Estimated Useful Life in Years		Fair Value
Broadcast advertising relationships		6	$	235,800
Affiliate relationships		5		40,700
Network advertising relationships		5		18,300
Other contracts and agreements		2-4		38,680

Pro forma financial information based on the assumption that CMP Acquisition and the Citadel Acquisition occurred as of January 1, 2010

	Supplemental Pro Forma Data
Description	Three Months Ended June 30, 2011		Six Months Ended June 30, 2011
Total revenue	$	300,061	$	554,305
Net income		3,666		572

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Supplemental Condensed Consolidating Financial Information (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 19,083	$ 30,592	$ 29,553	$ 12,814
Restricted cash	3,854	3,854
Accounts receivable, less allowance for doubtful accounts of $3,694 and $2,765 at June 30, 2012 and December 31, 2011, respectively	233,776	236,804
Trade receivable	7,178	5,967
Compensation held in trust		24,807
Prepaid expenses and other current assets	26,059	22,315
Current assets held for sale	72,350
Total current assets	362,300	324,339
Property and equipment, net	262,078	278,070
Broadcast licenses	1,598,228	1,625,415
Other Intangible assets, net	315,539	390,509	505	552
Goodwill	1,292,725	1,334,512	60,422	56,079
Investment in consolidated subsidiaries
Other assets	83,586	87,746
Total assets	3,914,456	4,040,591
Current liabilities:
Accounts payable and accrued expenses	112,108	160,186
Trade payable	5,392	4,999
Current portion of long-term debt	13,250	13,250
Total current liabilities	130,750	178,435
Long-term debt, excluding 7.75% senior notes	2,171,990	2,227,287
7.75% senior notes	610,000	610,000
Other liabilities	62,512	63,938
Deferred income taxes	542,466	556,771
Total liabilities	3,517,718	3,636,431
Redeemable preferred stock:
Series A cumulative redeemable preferred stock	118,231	113,447
Stockholders' Equity
Treasury stock, at cost, 24,117,787 and 23,697,671 shares at June 30, 2012 and December 31, 2011, respectively	(251,915)	(251,666)
Additional paid-in-capital	1,517,988	1,526,114
Accumulated (deficit) equity	(989,459)	(985,473)
Total stockholders' equity	278,507	290,713
Total liabilities, redeemable preferred stock and stockholders' equity	3,914,456	4,040,591
Common Class A [Member]
Stockholders' Equity
Common stock	1,763	1,608
Common Class B [Member]
Stockholders' Equity
Common stock	124	124
Common Class C [Member]
Stockholders' Equity
Common stock	6	6
Series A Redeemable Preferred Stock [Member]
Redeemable preferred stock:
Series A cumulative redeemable preferred stock	118,231	113,447
Cumulus Media Inc. (Parent Guarantor Member) [Member]
Current assets:
Cash and cash equivalents	15,093	11,714	29,342	12,638
Restricted cash	3,854	3,854
Accounts receivable, less allowance for doubtful accounts of $3,694 and $2,765 at June 30, 2012 and December 31, 2011, respectively
Trade receivable
Compensation held in trust		24,807
Prepaid expenses and other current assets	8,605	6,542
Current assets held for sale
Total current assets	27,552	46,917
Property and equipment, net	4,995	6,555
Broadcast licenses
Other Intangible assets, net
Goodwill
Investment in consolidated subsidiaries	260,854	323,436
Other assets	13,738	13,577
Total assets	307,139	390,485
Current liabilities:
Accounts payable and accrued expenses	15,255	57,220
Trade payable
Current portion of long-term debt
Total current liabilities	15,255	57,220
Long-term debt, excluding 7.75% senior notes
7.75% senior notes
Other liabilities	13,377	42,552
Deferred income taxes
Total liabilities	28,632	99,772
Redeemable preferred stock:
Series A cumulative redeemable preferred stock
Stockholders' Equity
Treasury stock, at cost, 24,117,787 and 23,697,671 shares at June 30, 2012 and December 31, 2011, respectively	(251,915)	(251,666)
Additional paid-in-capital	1,517,988	1,526,114
Accumulated (deficit) equity	(989,459)	(985,473)
Total stockholders' equity	278,507	290,713
Total liabilities, redeemable preferred stock and stockholders' equity	307,139	390,485
Cumulus Media Inc. (Parent Guarantor Member) [Member] | Common Class A [Member]
Stockholders' Equity
Common stock	1,763	1,608
Cumulus Media Inc. (Parent Guarantor Member) [Member] | Common Class B [Member]
Stockholders' Equity
Common stock	124	124
Cumulus Media Inc. (Parent Guarantor Member) [Member] | Common Class C [Member]
Stockholders' Equity
Common stock	6	6
Cumulus Media Inc. (Parent Guarantor Member) [Member] | Series A Redeemable Preferred Stock [Member]
Redeemable preferred stock:
Series A cumulative redeemable preferred stock
Cumulus Media Holdings Inc. (Subsidiary Issuer) [Member]
Current assets:
Cash and cash equivalents
Restricted cash
Accounts receivable, less allowance for doubtful accounts of $3,694 and $2,765 at June 30, 2012 and December 31, 2011, respectively
Trade receivable
Prepaid expenses and other current assets
Current assets held for sale
Total current assets
Property and equipment, net
Broadcast licenses
Other Intangible assets, net
Goodwill
Investment in consolidated subsidiaries	3,133,958	3,247,865
Other assets	51,127	55,176
Total assets	3,185,085	3,303,041
Current liabilities:
Accounts payable and accrued expenses	10,760	15,621
Trade payable
Current portion of long-term debt	13,250	13,250
Total current liabilities	24,010	28,871
Long-term debt, excluding 7.75% senior notes	2,171,990	2,227,287
7.75% senior notes	610,000	610,000
Other liabilities
Deferred income taxes
Total liabilities	2,806,000	2,866,158
Redeemable preferred stock:
Series A cumulative redeemable preferred stock	118,231	113,447
Stockholders' Equity
Treasury stock, at cost, 24,117,787 and 23,697,671 shares at June 30, 2012 and December 31, 2011, respectively
Additional paid-in-capital	77,990	169,234
Accumulated (deficit) equity	182,864	154,202
Total stockholders' equity	260,854	323,436
Total liabilities, redeemable preferred stock and stockholders' equity	3,185,085	3,303,041
Cumulus Media Holdings Inc. (Subsidiary Issuer) [Member] | Common Class A [Member]
Stockholders' Equity
Common stock
Cumulus Media Holdings Inc. (Subsidiary Issuer) [Member] | Common Class B [Member]
Stockholders' Equity
Common stock
Cumulus Media Holdings Inc. (Subsidiary Issuer) [Member] | Common Class C [Member]
Stockholders' Equity
Common stock
Cumulus Media Holdings Inc. (Subsidiary Issuer) [Member] | Series A Redeemable Preferred Stock [Member]
Redeemable preferred stock:
Series A cumulative redeemable preferred stock	118,231	113,447
Subsidiary Guarantors [Member]
Current assets:
Cash and cash equivalents	3,990	18,878	211	176
Restricted cash
Accounts receivable, less allowance for doubtful accounts of $3,694 and $2,765 at June 30, 2012 and December 31, 2011, respectively	233,776	236,804
Trade receivable	7,178	5,967
Prepaid expenses and other current assets	17,130	14,762
Current assets held for sale	46,860
Total current assets	308,934	276,411
Property and equipment, net	257,083	271,515
Broadcast licenses
Other Intangible assets, net	315,539	390,509
Goodwill	1,292,725	1,334,512
Investment in consolidated subsidiaries	1,169,513	1,157,317
Other assets	18,721	18,993
Total assets	3,362,515	3,449,257
Current liabilities:
Accounts payable and accrued expenses	86,093	87,070
Trade payable	5,392	4,999
Current portion of long-term debt
Total current liabilities	91,485	92,069
Long-term debt, excluding 7.75% senior notes
7.75% senior notes
Other liabilities	49,135	21,386
Deferred income taxes	87,937	87,937
Total liabilities	228,557	201,392
Redeemable preferred stock:
Series A cumulative redeemable preferred stock
Stockholders' Equity
Treasury stock, at cost, 24,117,787 and 23,697,671 shares at June 30, 2012 and December 31, 2011, respectively
Additional paid-in-capital	3,729,262	3,972,850
Accumulated (deficit) equity	(595,304)	(724,985)
Total stockholders' equity	3,133,958	3,247,865
Total liabilities, redeemable preferred stock and stockholders' equity	3,362,515	3,449,257
Subsidiary Guarantors [Member] | Common Class A [Member]
Stockholders' Equity
Common stock
Subsidiary Guarantors [Member] | Common Class B [Member]
Stockholders' Equity
Common stock
Subsidiary Guarantors [Member] | Common Class C [Member]
Stockholders' Equity
Common stock
Subsidiary Guarantors [Member] | Series A Redeemable Preferred Stock [Member]
Redeemable preferred stock:
Series A cumulative redeemable preferred stock
Subsidiary Non-guarantors [Member]
Current assets:
Cash and cash equivalents
Restricted cash
Accounts receivable, less allowance for doubtful accounts of $3,694 and $2,765 at June 30, 2012 and December 31, 2011, respectively
Trade receivable
Prepaid expenses and other current assets	324	1,011
Current assets held for sale	25,490
Total current assets	25,814	1,011
Property and equipment, net
Broadcast licenses	1,598,228	1,625,415
Other Intangible assets, net
Goodwill
Investment in consolidated subsidiaries
Other assets
Total assets	1,624,042	1,626,426
Current liabilities:
Accounts payable and accrued expenses		275
Trade payable
Current portion of long-term debt
Total current liabilities		275
Long-term debt, excluding 7.75% senior notes
7.75% senior notes
Other liabilities
Deferred income taxes	454,529	468,834
Total liabilities	454,529	469,109
Redeemable preferred stock:
Series A cumulative redeemable preferred stock
Stockholders' Equity
Treasury stock, at cost, 24,117,787 and 23,697,671 shares at June 30, 2012 and December 31, 2011, respectively
Additional paid-in-capital	2,138,191	2,131,251
Accumulated (deficit) equity	(968,678)	(973,934)
Total stockholders' equity	1,169,513	1,157,317
Total liabilities, redeemable preferred stock and stockholders' equity	1,624,042	1,626,426
Subsidiary Non-guarantors [Member] | Common Class A [Member]
Stockholders' Equity
Common stock
Subsidiary Non-guarantors [Member] | Common Class B [Member]
Stockholders' Equity
Common stock
Subsidiary Non-guarantors [Member] | Common Class C [Member]
Stockholders' Equity
Common stock
Subsidiary Non-guarantors [Member] | Series A Redeemable Preferred Stock [Member]
Redeemable preferred stock:
Series A cumulative redeemable preferred stock
Eliminations [Member]
Current assets:
Cash and cash equivalents
Restricted cash
Accounts receivable, less allowance for doubtful accounts of $3,694 and $2,765 at June 30, 2012 and December 31, 2011, respectively
Trade receivable
Prepaid expenses and other current assets
Current assets held for sale
Total current assets
Property and equipment, net
Broadcast licenses
Other Intangible assets, net
Goodwill
Investment in consolidated subsidiaries	(4,564,325)	(4,728,618)
Other assets
Total assets	(4,564,325)	(4,728,618)
Current liabilities:
Accounts payable and accrued expenses
Trade payable
Current portion of long-term debt
Total current liabilities
Long-term debt, excluding 7.75% senior notes
7.75% senior notes
Other liabilities
Deferred income taxes
Total liabilities
Redeemable preferred stock:
Series A cumulative redeemable preferred stock
Stockholders' Equity
Treasury stock, at cost, 24,117,787 and 23,697,671 shares at June 30, 2012 and December 31, 2011, respectively
Additional paid-in-capital	(5,945,443)	(6,273,335)
Accumulated (deficit) equity	1,381,118	1,544,717
Total stockholders' equity	(4,564,325)	(4,728,618)
Total liabilities, redeemable preferred stock and stockholders' equity	(4,564,325)	(4,728,618)
Eliminations [Member] | Common Class A [Member]
Stockholders' Equity
Common stock
Eliminations [Member] | Common Class B [Member]
Stockholders' Equity
Common stock
Eliminations [Member] | Common Class C [Member]
Stockholders' Equity
Common stock
Eliminations [Member] | Series A Redeemable Preferred Stock [Member]
Redeemable preferred stock:
Series A cumulative redeemable preferred stock

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Description of Business, Interim Financial Data and Basis of Presentation

6 Months Ended

Jun. 30, 2012

Description of Business, Interim Financial Data and Basis of Presentation [Abstract]

Description of Business, Interim Financial Data and Basis of Presentation

1. Description of Business, Interim Financial Data and Basis of Presentation:

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.

Nature of Business

Cumulus Media believes it is the largest pure-play radio broadcaster in the United States based on number of stations. At June 30, 2012, Cumulus Media owned or operated more than 570 radio stations (including under local marketing agreements, or “LMAs”) in 120 United States media markets and a nationwide radio network serving over 4,000 stations.

Interim Financial Data

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company and the notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. The accompanying unaudited interim condensed consolidated financial statements include the condensed consolidated accounts of Cumulus and its wholly-owned subsidiaries, with all significant intercompany balances and transactions eliminated in consolidation. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of results of operations for, and financial condition as of the end of, the interim periods have been made. The results of operations for the three and six months ended June 30, 2012, the cash flows for the six months ended June 30, 2012 and the Company’s financial condition as of June 30, 2012, are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition as of, any other interim period or for the fiscal year ending December 31, 2012.

The preparation of financial statements in conformity with 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 evaluates its estimates, including those related to bad debts, intangible assets, derivative financial instruments, income taxes, stock-based compensation, contingencies, litigation and purchase price allocations. The Company bases 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 under different assumptions or conditions.

Reclassifications

Certain reclassifications have been made to prior year amounts to conform to the current year presentation. Certain assets were classified as held for sale as of June 30, 2012 (see Note 3, “Discontinued Operations”). The results of operations associated with these assets were separately reported, net of the related tax impact, for all periods presented in the accompanying condensed consolidated statements of operations because the operations and cash flows generated by these assets will be eliminated from the Company’s consolidated results of operations as a result of the disposal transaction and the Company will not have continuing involvement in the operations of the stations after their disposal.

Recent Accounting Pronouncements

ASU 2011-04. In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, which amends Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, to achieve common fair value measurement and disclosure requirements under GAAP and International Financial Reporting Standards (“IFRS”). This standard gives clarification for the highest and best use valuation concepts. The ASU also provides guidance on fair value measurements relating to instruments classified in stockholders’ equity and instruments managed within a portfolio. Further, ASU 2011-04 clarifies disclosures for financial instruments categorized within level 3 of the fair value hierarchy that require companies to provide quantitative information about unobservable inputs used, the sensitivity of the measurement to changes in those inputs, and the valuation processes used by the reporting entity. The Company adopted the prescribed disclosures which became effective January 1, 2012, for its condensed consolidated financial statements as of such date. See Note 8, “Fair Value Measurements.”

ASU 2011-05. In June 2011, the FASB issued ASU 2011-05, which amends the guidance in ASC Topic 220, “Comprehensive Income,” by eliminating the option to present components of other comprehensive income (“OCI”) in the statement of stockholders’ equity. This ASU requires entities to present all non-owner changes in stockholders’ equity either as a single continuous statement of comprehensive income or as two separate but consecutive statements of income and comprehensive income. The components of OCI have not changed nor has the guidance on when OCI items are reclassified to net income. Similarly, ASU 2011-05 does not change the

guidance to disclose OCI components gross or net of the effect of income taxes, provided that the tax effects are presented on the face of the statement in which OCI is presented, or disclosed in the notes to the financial statements. The Company adopted this guidance effective January 1, 2012. Since the Company has no transactions classified as OCI, the adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements.

ASU 2011-08. In September 2011, the FASB issued ASU 2011-8, which amends ASC Topic 350, Intangibles-Goodwill and Other. The amendments in this ASU give companies the option to first perform a qualitative assessment to determine whether it is more likely than not (a likelihood of more than 50.0%) that the fair value of a reporting unit is less than its carrying amount. If a company concludes that this is the case, it must perform the two-step goodwill impairment test. Otherwise, a company is not required to perform this two-step test. Under the amendments in this ASU, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. The Company adopted this guidance effective January 1, 2012. The adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements.

ASU 2011-11. In December 2011, the FASB issued ASU 2011-11. The amendments in this ASU require companies to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is required to be applied retrospectively for all prior periods presented and is effective for annual periods for fiscal years beginning on or after January 1, 2013, and interim periods within those annual fiscal years. The adoption of this guidance is not expected to have an impact on the Company’s condensed consolidated financial statements.

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Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Allowance for doubtful accounts	$ 3,694	$ 2,765
Preferred stock, par/stated value	$ 0.01	$ 0.01
Preferred stock, shares issued	125,000
Treasury stock, shares	24,117,787	23,697,671
Series A cumulative redeemable preferred stock
Preferred stock, par/stated value	$ 1,000.00	$ 1,000.00
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	125,000	125,000
Preferred stock, shares outstanding	125,000	125,000
Common Class A
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	176,273,876	160,783,484
Common stock, shares outstanding	152,156,089	137,085,813
Common Class B
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	600,000,000	600,000,000
Common stock, shares issued	12,439,667	12,439,667
Common stock, shares outstanding	12,439,667	12,439,667
Common Class C
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	644,871	644,871
Common stock, shares issued	644,871	644,871
Common stock, shares outstanding	644,871	644,871

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Stock-Based Compensation Expense

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation Expense

11. Stock-Based Compensation Expense

On February 16, 2012, the Company granted 161,724 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. In addition, on February 16, 2012, the Company granted time-vesting stock options to purchase 1,357,500 shares of Class A common stock to certain Company employees under the Cumulus Media Inc. 2011 Equity Incentive Plan with an aggregate grant date fair value of $3.0 million. The options have an exercise price of $4.34 per share and provide for 30% vesting on each of September 16, 2012 and February 16, 2013 and 20% vesting on each of February 16, 2014 and 2015.

The Company has certain liability-based awards related to the cash consideration portion of the Citadel Acquisition (“Liability Awards”). For the three and six months ended June 30, 2012, the Company recognized approximately $2.7 million and $6.9 million, respectively, in stock-based compensation expense related to Liability Awards and $3.2 million and $6.0 million in stock-based compensation expense related to equity awards. For the three and six months ended June 30, 2011, the Company recognized approximately $0.6 million and $1.2 million, respectively, of stock-based compensation expense.

As of June 30, 2012, unrecognized stock-based compensation expense of approximately $23.2 million related to equity awards is expected to be recognized over a weighted average remaining life of 2.7 years. There is no unrecognized stock-based compensation expense related to Liability Awards as of June 30, 2012. Unrecognized stock-based compensation expense will be adjusted for future changes in estimated forfeitures.

The total fair value of restricted stock awards that vested during the six months ended June 30, 2012 was $19.1 million, of which $13.2 million related to the Company’s Liability Awards and was paid in cash. The total fair value of restricted stock awards that vested during the six months ended June 30, 2011 was $2.1 million. No options were exercised during either of the six months ended June 30, 2012 or 2011.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Jul. 31, 2012
Entity Registrant Name	CUMULUS MEDIA INC
Entity Central Index Key	0001058623
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		167,488,902
Common Class A
Entity Common Stock, Shares Outstanding		154,404,364
Common Class B
Entity Common Stock, Shares Outstanding		12,439,667
Common Class C
Entity Common Stock, Shares Outstanding		644,871

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Earnings Per Share ("EPS")

6 Months Ended

Jun. 30, 2012

Earnings Per Share ("EPS") [Abstract]

Earnings Per Share ("EPS")

12. Earnings Per Share (“EPS”)

For all periods presented, the Company has disclosed basic and diluted earnings per common share utilizing the two-class method. Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. The Company allocates undistributed net income between each class of common stock on an equal basis as required pursuant to the Company’s Third Amended and Restated Charter.

Non-vested restricted shares of Class A common stock, the Company Warrants and the CMP Restated Warrants are considered participating securities for purposes of calculating basic weighted average common shares outstanding in periods in which the Company records net income available to common shareholders. Diluted earnings per share is computed in the same manner as basic earnings per share after assuming issuance of common stock for all potentially dilutive equivalent shares, which includes 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 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. Because the Company has not historically paid dividends to common stockholders, earnings are allocated to each participating security and common share equally, after deducting dividends declared on the Series A Preferred Stock. The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2012 and 2011 (amounts in thousands, except per share data):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Basic (Loss) Earnings Per Share
Numerator:
Undistributed net (loss) income from continuing operations	$	(1,763	)	$	(811	)	$	(14,362	)	$	13,433
Less:
Dividends declared		4,375			—			7,708			—
Accretion of redeemable preferred stock		1,852			—			4,620			—
Participation rights of unvested restricted stock in undistributed earnings		—			—			—			542
Basic undistributed net (loss) income from continuing operations - attributable to common shares	$	(7,990	)	$	(811	)	$	(26,690	)	$	12,891
Denominator:
Basic weighted average shares outstanding		157,711			40,762			153,540			40,668
Basic (loss) income from continuing operations common shares per share - attributable to common shares	$	(0.05	)	$	(0.02	)	$	(0.17	)	$	0.32
Diluted (Loss) Earnings Per Share:
Numerator:
Undistributed net (loss) income from continuing operations	$	(1,763	)	$	(811	)	$	(14,362	)	$	13,433
Less:
Dividends declared		4,375			—			7,708			—
Accretion of redeemable preferred stock		1,852			—			4,620			—
Participation rights of unvested restricted stock in undistributed earnings		—			—			—			529
Basic undistributed net (loss) income from continuing operations - attributable to common shares	$	(7,990	)	$	(811	)	$	(26,690	)	$	12,904
Denominator:
Basic weighted average shares outstanding		157,711			40,762			153,540			40,668
Effect of dilutive options and warrants		—			—			—			1,058
Diluted weighted average shares outstanding		157,711			40,762			153,540			41,726
Diluted (loss) earnings from continuing operations common shares per share - attributable to common shares	$	(0.05	)	$	(0.02	)	$	(0.17	)	$	0.31

Potentially dilutive equivalent shares outstanding for the three and six months ended June 30, 2012 consist of approximately 56.2 million and 57.6 million, respectively, additional shares of common stock related to outstanding warrants to purchase common stock, which were excluded from the computation of diluted weighted average shares outstanding as their effect was antidilutive. Potentially dilutive equivalent shares outstanding for the three months ended June 30, 2011 consist of additional shares of common stock related to 1.8 million restricted shares, 0.8 million warrants and 0.2 million stock options, which were excluded from the computation of diluted weighted average shares outstanding as their effect was antidilutive. There were no potentially dilutive equivalent shares related to restricted stock, stock options or warrants for the six months ended June 30, 2011.

Revisions to Prior Period Financial Statements

In connection with the preparation of the Company’s Condensed Consolidated Financial Statements for three and six months ended June 30, 2012, the Company identified an error in the manner in which earnings per share was calculated. Upon completion of the Company’s evaluation of the earnings per share calculation, it was determined that the weighted average shares outstanding used in the denominator of the earnings per share calculation was improperly calculated.

In accordance with accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 99, Materiality), the Company assessed the materiality of the errors and concluded that the errors were not material to any of the Company’s previously issued financial statements. As permitted by the accounting guidance found in ASC 250-10 (SEC Staff a Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the Company elected to present revised financial information for the three and nine months ended September 30, 2011, and the year ended December 31, 2011. The error had no impact on any other periods previously presented.

The following tables present the effect of this revision on earnings per share for all periods affected:

	Three Months Ended September 30, 2011						Nine Months Ended September 30, 2011
	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Basic income per common share	$	0.64	$	0.14	$	0.78	$	1.27	$	0.15	$	1.42
Diluted income per common share	$	0.60	$	0.12	$	0.72	$	1.21	$	0.14	$	1.35
	Year Ended December 31, 2011
	As Previously Reported		Adjustment		As Revised
Basic income per common share	$	0.48	$	0.14	$	0.62
Diluted income per common share	$	0.46	$	0.13	$	0.59

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Condensed Consolidated Statements of Operations [Abstract]
Broadcast revenues	$ 280,745	$ 61,116	$ 516,710	$ 111,657
Management fees	296	1,125	326	2,250
Net revenues	281,041	62,241	517,036	113,907
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)	168,746	35,281	322,442	68,981
Depreciation and amortization	36,200	1,769	71,007	3,677
LMA fees	885	560	1,724	1,141
Corporate general and administrative expenses (including stock-based compensation expense of $5,928, $598, $12,906 and $1,187, respectively)	16,802	9,139	33,494	17,271
Gain on exchange of assets or stations		(120)		(15,278)
Realized loss on derivative instrument	841	1,205	753	1,244
Impairment of intangible assets	12,435		12,435
Total operating expenses	235,909	47,834	441,855	77,036
Operating (loss) income	45,132	14,407	75,181	36,871
Non-Operating (expense) income
Interest expense, net	(49,619)	(9,178)	(100,422)	(15,496)
Loss on early extinguishment of debt		(4,366)		(4,366)
Other (expense) income, net	(74)	(92)	190	(93)
Total non-operating expense, net	(49,693)	(13,636)	(100,232)	(19,955)
(Loss) income from continuing operations before income taxes	(4,561)	771	(25,051)	16,916
Income tax benefit (expense)	2,798	(1,582)	10,689	(3,483)
Income (loss) from continuing operations	(1,763)	(811)	(14,362)	13,433
Income from discontinued operations, net of taxes	9,906	2,152	10,375	4,027
Net income (loss)	8,143	1,341	(3,987)	17,460
Less: dividends declared and accretion of redeemable preferred stock	6,791		12,491
Income (loss) attributable to common shareholders	$ 1,352	$ 1,341	$ (16,478)	$ 17,460
Basic and diluted (loss) income per common share:
Basic: (Loss) income from continuing operations per share	$ (0.05)	$ (0.02)	$ (0.17)	$ 0.32
Basic: Income from discontinued operations per share	$ 0.06	$ 0.05	$ 0.07	$ 0.10
Basic: (Loss) income per share	$ 0.01	$ 0.03	$ (0.11)	$ 0.41
Diluted: (Loss) income from continuing operations per share	$ (0.05)	$ (0.02)	$ (0.17)	$ 0.31
Diluted: Income from discontinued operations per share	$ 0.06	$ 0.05	$ 0.07	$ 0.09
Diluted: Income (loss) per common share	$ 0.01	$ 0.03	$ (0.11)	$ 0.40
Weighted average basic common shares outstanding	157,710,861	40,762,233	153,540,006	40,667,773
Weighted average diluted common shares outstanding	157,710,861	40,762,233	153,540,006	41,725,933

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2012

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

6. Derivative Financial Instruments

The Company’s derivative financial instruments are as follows:

Interest Rate Cap

On December 8, 2011, the Company entered into an interest rate cap agreement with JPMorgan Chase Bank, N.A. (“JPMorgan”), to limit the Company’s exposure to interest rate risk. The interest rate cap has an aggregate notional amount of $71.3 million. The agreement caps the LIBOR-based variable interest rate component of the Company’s long-term debt at a maximum of 3.0% on an equivalent amount of the Company’s term loans. The condensed consolidated balance sheets as of June 30, 2012 and December 31, 2011 include long-term assets of $0.1 million and $0.4 million, respectively, attributable to the fair value of the interest rate cap. The Company reported interest expense of $0.2 million and $0.3 million during the three and six months ended June 30, 2012, respectively, inclusive of the change in fair value adjustment. The interest rate cap matures on December 8, 2015.

The Company does not utilize financial instruments for trading or other speculative purposes.

Green Bay Option

On April 10, 2009, Clear Channel and the Company entered into an LMA whereby the Company is responsible for operating (i.e., programming, advertising, etc.) five radio stations in Green Bay, Wisconsin and must pay Clear Channel a monthly fee of approximately $0.2 million over a five year term (expiring December 31, 2013), in exchange for the Company retaining the operating profits from managing the radio stations. Clear Channel also has a put option (the “Green Bay Option”) that allows it to require the Company to purchase the five Green Bay radio stations at any time during the two-month period commencing July 1, 2013 (or earlier if the LMA is terminated before this date) for $17.6 million (the fair value of the radio stations as of April 10, 2009). The Company accounts for the Green Bay Option as a derivative contract. Accordingly, the fair value of the Green Bay Option was recorded as a liability offsetting the gain at the acquisition date with subsequent changes in the fair value recorded through earnings. The fair value of the Green Bay Option was determined using inputs that are supported by little or no market activity (a “Level 3” measurement). The fair value represents an estimate of the net amount that the Company would pay if the option was transferred to another party as of the date of the valuation.

The condensed consolidated balance sheets as of June 30, 2012 and December 31, 2011 reflect other long-term liabilities of $12.2 million and $11.4 million, respectively, to include the fair value of the Green Bay Option. The Company recorded $0.8 million of expense in realized losses on derivative instruments associated with marking to market the Green Bay Option to reflect the fair value of the option during each of the three and six months ended June 30, 2012 and $1.2 million of expense in realized losses on derivative instruments for each of the three and six months ended June 30, 2011.

May 2005 Option

In May 2005, the Company entered into an interest rate option agreement (the “May 2005 Option”), that provided Bank of America, N.A. the right to enter into an underlying swap agreement with the Company, for two years, from March 13, 2009 through March 31, 2011.

The May 2005 Option was exercised on March 11, 2009. This instrument was not highly effective in mitigating the risks in the Company’s cash flows, and therefore the Company deemed it speculative and accounted for the changes in the May 2005 Option’s value as a current element of interest expense. The May 2005 Option expired on March 13, 2011 in accordance with the terms of the original agreement. The Company reported interest income related to this option of $0.0 million and $3.7 million, inclusive of the fair value adjustment during the three and six months ended June 30, 2011, respectively.

The location and fair value amounts of derivatives in the unaudited condensed consolidated balance sheets are shown in the following table (dollars in thousands):

		Fair Value
Derivative Instruments	Balance Sheet Location	June 30, 2012			December 31, 2011
Derivatives not designated as hedging instruments:
Interest rate cap	Other long-term assets	$	126		$	376
Green Bay Option	Other long-term liabilities		(12,151	)		(11,398	)
	Total	$	(12,025	)	$	(11,022	)

The location of income or expense recognized due to adjustments to the fair values of derivatives in the unaudited condensed consolidated statements of operations are shown in the following table (dollars in thousands):

		Amount of Expense (Income) Recognized on Derivatives
		For the Three Months Ended June 30,				For the Six Months Ended June 30,
Derivative Instruments	Statement of Operations Location	2012		2011		2012		2011
Interest rate cap	Interest expense	$	165	$	—	$	250	$	—
Green Bay Option	Realized losses on derivative instrument		841		1,204		753		1,244
May 2005 Option	Interest income		—		—		—		(3,683	)
	Total	$	1,006	$	1,204	$	1,003	$	(2,439	)

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Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2012

Intangible Assets and Goodwill [Abstract]

Intangible Assets and Goodwill

5. Intangible Assets and Goodwill

The following table presents the changes in intangible assets other than goodwill during the periods from January 1, 2011 to December 31, 2011 and January 1, 2012 to June 30, 2012, and balances as of such dates (dollars in thousands):

	Indefinite-Lived			Definite-Lived			Total
Intangible Assets:
Balance as of January 1, 2011	$	160,418		$	552		$	160,970
Acquisition		11,355			77			11,432
Disposition		(1,533	)		(83	)		(1,616	)
Amortization		—			(41	)		(41	)
Balance as of June 30, 2011	$	170,240		$	505		$	170,745
Balance as of January 1, 2012		1,625,415			390,509			2,015,924
Current assets held for sale		(25,490	)		(6,880	)		(32,370	)
Purchase price allocation adjustments		(1,581	)		957			(624	)
Impairment		—			(12,435	)		(12,435	)
Disposition		(116	)		—			(116	)
Amortization		—			(56,612	)		(56,612	)
Balance as of June 30, 2012	$	1,598,228		$	315,539		$	1,913,767

The following table presents the changes in goodwill and accumulated impairment losses during the periods from January 1, 2012 to June 30, 2012 and January 1, 2011 to June 30, 2011, and balances as of such dates (dollars in thousands):

	2012			2011
Balance as of January 1:
Goodwill	$	1,564,253		$	285,820
Accumulated impairment losses		(229,741	)		(229,741	)
Subtotal		1,334,512			56,079
Acquisition		—			4,343
Current assets held for sale		(32,132	)		—
Purchase price allocation adjustments		(9,550	)		—
Disposal		(105	)		—
Balance as of June 30:
Goodwill		1,522,466			290,163
Accumulated impairment losses		(229,741	)		(229,741	)
Total	$	1,292,725		$	60,422

In connection with each of the CMP Acquisition and the Citadel Acquisition, the Company made certain allocations of the purchase price paid therein among each of the tangible and intangible assets and liabilities acquired, including goodwill. Adjustments to these allocations are reflected as purchase price allocation adjustments during the periods ended December 31, 2011 and June 30, 2012 and are included in the acquisition balances as of such dates. Purchase price allocation adjustments during the six months ended June 30, 2012 were primarily related to fair value adjustments of certain acquired broadcast licenses, property and equipment, current assets and current liabilities.

The Company has significant intangible assets recorded comprised primarily of indefinite-lived broadcast licenses, definite-lived advertiser relationships and goodwill acquired through the acquisition of radio stations. The Company reviews the carrying value of its indefinite-lived intangible assets and goodwill at least annually for impairment and on an interim basis if events or circumstances indicate that such assets may be impaired. If the carrying value exceeds the estimate of fair value, the Company calculates the impairment as the excess of the carrying value of goodwill over its estimated fair value and charges the impairment to results of operations. The Company reviews the carrying value of its definite-lived intangible assets for recoverability whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. During the quarter ended June 30, 2012, the Company recognized an impairment of $12.4 million of a definite-lived intangible asset related to the cancellation of an underlying contract.

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Description of Business, Interim Financial Data and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2012

Description of Business, Interim Financial Data and Basis of Presentation [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

ASU 2011-04. In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, which amends Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, to achieve common fair value measurement and disclosure requirements under GAAP and International Financial Reporting Standards (“IFRS”). This standard gives clarification for the highest and best use valuation concepts. The ASU also provides guidance on fair value measurements relating to instruments classified in stockholders’ equity and instruments managed within a portfolio. Further, ASU 2011-04 clarifies disclosures for financial instruments categorized within level 3 of the fair value hierarchy that require companies to provide quantitative information about unobservable inputs used, the sensitivity of the measurement to changes in those inputs, and the valuation processes used by the reporting entity. The Company adopted the prescribed disclosures which became effective January 1, 2012, for its condensed consolidated financial statements as of such date. See Note 8, “Fair Value Measurements.”

ASU 2011-05. In June 2011, the FASB issued ASU 2011-05, which amends the guidance in ASC Topic 220, “Comprehensive Income,” by eliminating the option to present components of other comprehensive income (“OCI”) in the statement of stockholders’ equity. This ASU requires entities to present all non-owner changes in stockholders’ equity either as a single continuous statement of comprehensive income or as two separate but consecutive statements of income and comprehensive income. The components of OCI have not changed nor has the guidance on when OCI items are reclassified to net income. Similarly, ASU 2011-05 does not change the

guidance to disclose OCI components gross or net of the effect of income taxes, provided that the tax effects are presented on the face of the statement in which OCI is presented, or disclosed in the notes to the financial statements. The Company adopted this guidance effective January 1, 2012. Since the Company has no transactions classified as OCI, the adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements.

ASU 2011-08. In September 2011, the FASB issued ASU 2011-8, which amends ASC Topic 350, Intangibles-Goodwill and Other. The amendments in this ASU give companies the option to first perform a qualitative assessment to determine whether it is more likely than not (a likelihood of more than 50.0%) that the fair value of a reporting unit is less than its carrying amount. If a company concludes that this is the case, it must perform the two-step goodwill impairment test. Otherwise, a company is not required to perform this two-step test. Under the amendments in this ASU, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. The Company adopted this guidance effective January 1, 2012. The adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements.

ASU 2011-11. In December 2011, the FASB issued ASU 2011-11. The amendments in this ASU require companies to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is required to be applied retrospectively for all prior periods presented and is effective for annual periods for fiscal years beginning on or after January 1, 2013, and interim periods within those annual fiscal years. The adoption of this guidance is not expected to have an impact on the Company’s condensed consolidated financial statements.

2011 Acquisition

2011 Acquisitions

Ann Arbor, Battle Creek and Canton Asset Exchange

On February 18, 2011, the Company completed an asset exchange with Clear Channel Communications, Inc. (“Clear Channel”). As part of the asset exchange, Cumulus acquired eight of Clear Channel’s radio stations located in Ann Arbor and Battle Creek, Michigan in exchange for its radio station in Canton, Ohio. The Company disposed of two of the Battle Creek stations simultaneously with the closing of the transaction to comply with Federal Communications Commission (“FCC”) broadcast ownership limits. The asset exchange was accounted for as a business combination in accordance with FASB’s guidance. The fair value of the assets acquired in the asset exchange was $17.4 million. The Company incurred approximately $0.3 million in acquisition costs related to this transaction and expensed them as incurred through earnings within corporate, general and administrative expense. The $4.3 million allocated to goodwill is deductible for tax purposes. The results of operations for the Ann Arbor and Battle Creek stations acquired, which were not material, have been included in our statements of operations since 2007 when the Company entered into a LMA with Clear Channel to manage the stations. Prior to the asset exchange, the Company did not have any preexisting relationship with Clear Channel with regard to the Canton, Ohio market.

In conjunction with this asset exchange, the Company recorded a net gain of $15.3 million, which is included in gain on exchange of assets or stations in the accompanying condensed consolidated statements of operations in the six months ended June 30, 2011.

The table below summarizes the final purchase price allocation from this asset exchange (dollars in thousands):

Allocation	Amount
Property and equipment	$	1,790
Broadcast licenses		11,190
Goodwill		4,342
Other intangibles		72
Total purchase price		17,394
Less: Carrying value of Canton station		(2,116	)
Gain on asset exchange	$	15,278

Schedule of income tax policy

The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company’s financial statements or tax returns as well as future profitability. The Company continually reviews the adequacy of the valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC Topic 740, Accounting for Income Taxes. As of June 30, 2012, the Company does not believe it is more likely than not that the deferred tax assets will be recognized. In reaching this determination, the Company believes that its history of cumulative losses over the past three years outweighs other positive evidence that it is more likely than not that the Company’s deferred tax assets will be recognized. Should the Company’s experience of earning pre-tax income over the past two years continue into the future, the Company may release all or a portion of the valuation allowance during 2012, which would impact the Company’s net income (loss) in the period of adjustment.

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Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

13. Income Taxes

The Company accounts for income taxes in accordance with authoritative accounting guidance which establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s condensed consolidated financial statements or tax returns.

The provision for income taxes reflects the Company’s estimate of the effective tax rate expected to be applicable for the full current year. To the extent that actual pre-tax results for the year differ from the forecasted estimates applied at the end of the most recent interim period, the actual tax rate recognized during 2012 could be different from the forecasted rate.

For the three and six months ended June 30, 2012, the Company recorded tax benefits of $2.8 million and $10.7 million, respectively, on a pre-tax loss from continuing operations of $4.6 million and $25.1 million, respectively, resulting in an effective tax rate for the three and six months ended June 30, 2012 of approximately 60.9% and 42.6%, respectively. For the three and six months ended June 30, 2011, the Company recorded income tax expense of $1.6 million and $3.5 million, respectively, on pre-tax income from continuing operations of $0.8 million and $16.9 million, respectively, resulting in effective tax rates of 200.0% and 20.7% for the three and six months ended June, 30, 2011, respectively.

The difference between the effective tax rate for each period and the federal statutory rate of 35.0% primarily relates to state and local income taxes and the change in the estimated amount of valuation allowance recorded on the Company’s net deferred tax assets. As of June 30, 2012, the Company continues to maintain a full valuation allowance on its net deferred tax assets excluding deferred tax liabilities associated with the Company’s indefinite lived intangible assets. The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company’s financial statements or tax returns as well as future profitability. The Company continually reviews the adequacy of the valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC Topic 740, Accounting for Income Taxes. As of June 30, 2012, the Company does not believe it is more likely than not that the deferred tax assets will be recognized. In reaching this determination, the Company believes that its history of cumulative losses over the past three years outweighs other positive evidence that it is more likely than not that the Company’s deferred tax assets will be recognized. Should the Company’s experience of earning pre-tax income over the past two years continue into the future, the Company may release all or a portion of the valuation allowance during 2012, which would impact the Company’s net income (loss) in the period of adjustment.

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Redeemable Preferred Stock

6 Months Ended

Jun. 30, 2012

Redeemable Preferred Stock [Abstract]

Redeemable Preferred Stock

9. Redeemable Preferred Stock

The Company designated 2,000,000 shares of its authorized preferred stock as Series A, par value $0.01 per share, with a liquidation preference of $1,000 per share (“Series A Preferred Stock”). In connection with the Equity Investment, the Company issued 125,000 shares of Series A Preferred Stock for an aggregate amount of $125.0 million. Net proceeds to the Company were $110.7 million after deducting $14.3 million in fees. No other shares of Series A Preferred Stock are issuable in the future, except for such shares as may be issued as dividends in lieu of any cash dividends in accordance with the terms thereof, and the Series A Preferred Stock ranks senior to all common stock and each series of stock the Company may subsequently designate with respect to dividends, redemption and distributions upon liquidation, winding-up and dissolution of the Company.

The Series A Preferred Stock has a perpetual term, a liquidation value equal to the amount invested therein plus any accrued but unpaid dividends, and dividend rights as described below. The Series A Preferred Stock generally does not have voting rights, except with respect to any amendment to the Company’s Third Amended and Restated Charter that would adversely affect the rights, privileges or preferences of the Series A Preferred Stock. Although the shares of Series A Preferred Stock include a mandatory redemption feature, there is no stated or probable date of redemption.

Holders of Series A Preferred Stock are entitled to receive mandatory and cumulative dividends in an amount per annum equal to the dividend rate (described below) multiplied by the liquidation value, calculated on the basis of a 360-day year, from the date of issuance, whether or not declared and whether or not the Company reports net income. The dividends are payable in arrears in cash, except that, at the option of the Company, up to 50.0% of the dividends for any period may be paid through the issuance of additional shares of Series A Preferred Stock. Payment of dividends on the Series A Preferred Stock is in preference and prior to any dividends payable on any class of the Company’s common stock.

Dividends on the Series A Preferred Stock accrued at an annual rate of 10.0% from the date of issuance of the Series A Preferred Stock through March 15, 2012. After such date, dividends accrue at an annual rate as follows:

• 14.0% through September 15, 2013;

• 17.0% plus the increase in the 90-day LIBOR from September 16, 2011 to September 16, 2013 for the period commencing on September 16, 2013 and ending on September 15, 2015; and

• 20.0% plus the increase in the 90-day LIBOR from September 16, 2011 to September 16, 2015 for all periods commencing on or after September 16, 2015, with an adjustment to the rate every two years thereafter.

During the three and six months ended June 30, 2012, the Company accrued $4.4 million and $7.7 million, respectively, in dividends, paid $3.3 million and $6.5 million, respectively, in cash dividends and accreted $2.4 million and $4.8 million, respectively, on the Series A Preferred Stock. There were no similar dividend payments or accretions related to the Series A Preferred Stock during the three and six months ended June 30, 2011. The accretion of Series A Preferred Stock resulted in an equivalent reduction in additional paid-in capital on the condensed consolidated balance sheets at June 30, 2012 and December 31, 2011.

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Stockholders' Equity (Details) (USD $)	3 Months Ended			3 Months Ended																							6 Months Ended		3 Months Ended	6 Months Ended			6 Months Ended		3 Months Ended	6 Months Ended	3 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Sep. 16, 2011	Jun. 30, 2012 CMP Acquisition [Member]	Jun. 30, 2011 CMP Acquisition [Member]	Sep. 16, 2011 Citadel Acquisition [Member]	Jun. 30, 2012 Series A Redeemable Preferred Stock [Member]	Sep. 16, 2011 Series A Redeemable Preferred Stock [Member]	Jun. 30, 2012 Common Class A [Member]	Dec. 31, 2011 Common Class A [Member]	Sep. 16, 2011 Common Class A [Member]	Aug. 01, 2011 Common Class A [Member] CMP Acquisition [Member]	Sep. 16, 2011 Common Class A [Member] Citadel Acquisition [Member]	Sep. 16, 2011 Common Class A [Member] Restricted Stock [Member] Citadel Acquisition [Member]	Jun. 30, 2012 Common Class B [Member]	Dec. 31, 2011 Common Class B [Member]	Sep. 16, 2011 Common Class B [Member]	Aug. 01, 2011 Common Class B [Member] CMP Acquisition [Member]	Jun. 30, 2012 Common Class C [Member]	Dec. 31, 2011 Common Class C [Member]	Sep. 16, 2011 Common Class C [Member]	Jun. 30, 2012 Warrants [Member]	Jun. 30, 2012 Crestview warrants [Member]	Sep. 16, 2011 Crestview warrants [Member]	Sep. 16, 2011 UBS warrants [Member]	Sep. 16, 2011 UBS warrants [Member] Common Class A [Member]	Jun. 30, 2012 2009 warrants [Member]	Jun. 30, 2012 Company warrants [Member]	Jun. 30, 2012 CMP restated warrants [Member]	Jun. 30, 2012 CMP restated warrants [Member]	May 02, 2012 CMP restated warrants [Member]	Aug. 01, 2011 CMP restated warrants [Member] CMP Acquisition [Member]	Jun. 30, 2012 Radio holdings warrants [Member]	Sep. 16, 2011 Equity Investment [Member]	Jun. 30, 2012 Maximum [Member] Common Class A [Member]	Jun. 30, 2012 Maximum [Member] Crestview warrants [Member]	Jun. 30, 2012 Maximum [Member] Company warrants [Member]
Stockholders' equity (Textual) [Abstract]
Common stock, shares authorized			1,450,644,871						750,000,000	750,000,000	750,000,000				600,000,000	600,000,000	600,000,000		644,871	644,871	644,871
Preferred stock, shares authorized			100,000,000				2,000,000
Common stock, shares issued						23,600,000			176,273,876	160,783,484		3,300,000	47,600,000	900,000	12,439,667	12,439,667		6,600,000	644,871	644,871						4,700,000								51,800,000
Preferred stock shares	125,000							125,000
Par value of Preferred stock shares	$ 0.01	$ 0.01	$ 0.01				$ 0.01
Private equity firms rate of ownership					75.00%
Warrants outstanding																							7,800,000				1,100,000	39,200,000				3,700,000
Warrants held in reserve for issuance						2,400,000
Warrants Outstanding																									24,100,000				7,700,000	7,700,000				7,800,000
Class A common stock following conversion																																			4.99%
Warrants expiry date																											Jun. 29, 2019									Sep. 16, 2021	Jun. 03, 2030
Exercisable price of warrants to purchase common stock																							4.34	4.34			1.17	0.01			0.01
Outstanding Radio Holdings warrants amended and restated to no longer be exercisable for shares of common stock																														3,700,000
Warrants to purchase shares of the common stock reserved for potential future issuance																						2,400,000
Shares to be issued upon the exercise of 3,700,000 outstanding warrants				8,300,000																								14,900,000	300,000				8,300,000
Company Warrants were converted into shares of Class A common stock since issuance																												32,400,000
Common stock shares	600,000

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Long-Term Debt

6 Months Ended

Jun. 30, 2012

Long-Term Debt [Abstract]

Long-Term Debt

7. Long-Term Debt

The Company’s long-term debt consisted of the following as of June 30, 2012 and December 31, 2011 (dollars in thousands):

	June 30, 2012			December 31, 2011
Term loan and revolving credit facilities:
First Lien Term Loan	$	1,318,000		$	1,325,000
Second Lien Term Loan		790,000			790,000
Revolving Credit Facility		100,000			150,000
Less: Term loan discount		(22,760	)		(24,463	)
Total term loan and revolving credit facilities		2,185,240			2,240,537
7.75% Senior Notes		610,000			610,000
Less: Current portion of long-term debt		(13,250	)		(13,250	)
Long-term debt, net	$	2,781,990		$	2,837,287

First Lien and Second Lien Credit Facilities

On September 16, 2011, to complete the Global Refinancing, the Company entered into a (i) First Lien Credit Agreement (the “First Lien Facility”), among the Company, Cumulus Holdings, as Borrower, certain lenders, JPMorgan as Administrative Agent, UBS, Macquarie, Royal Bank of Canada and ING Capital LLC, as Co-Syndication Agents, and U.S. Bank National Association and Fifth Third Bank, as Co-Documentation Agents; and (ii) Second Lien Credit Agreement (the “Second Lien Facility” and, together with the First Lien Facility, the “2011 Credit Facilities”), among the Company, Cumulus Holdings, as Borrower, certain lenders, JPMorgan, as Administrative Agent, and UBS, Macquarie, Royal Bank of Canada and ING Capital LLC, as Co-Syndication Agents.

The First Lien Facility consists of a $1.325 billion first lien term loan facility, net of an original issue discount of $13.5 million, maturing in September 2018 (the “First Lien Term Loan”), and a $300.0 million revolving credit facility, maturing in September 2016 (the “Revolving Credit Facility”). Under the Revolving Credit Facility, up to $30.0 million of availability may be drawn in the form of letters of credit and up to $30.0 million is available for swingline borrowings. The Second Lien Facility consists of a $790.0 million second lien term loan facility, net of an original issue discount of $12.0 million, maturing in September 2019 (the “Second Lien Term Loan”).

At June 30, 2012, there was $1.318 billion outstanding under the First Lien Term Loan, $100.0 million outstanding under the Revolving Credit Facility and $790.0 million outstanding under the Second Lien Term Loan.

Proceeds from borrowings under the First Lien Facility and Second Lien Facility were used, together with certain other funds, to (i) fund the cash portion of the purchase price paid in the Citadel Acquisition; (ii) repay in full amounts outstanding under the revolving credit facility under the Company’s pre-existing credit agreement (the “Terminated Credit Agreement”); (iii) repay all amounts outstanding under the credit facilities of CMP Susquehanna Corporation (“CMPSC”), an indirect wholly-owned subsidiary of CMP; (iv) redeem CMPSC’s outstanding 9.875% senior subordinated notes due 2014 and variable rate senior secured notes due 2014; (v) redeem in accordance with their terms all outstanding shares of preferred stock of CMP Susquehanna Radio Holdings Corp., an indirect wholly-owned subsidiary of CMP (“Radio Holdings”) and the direct parent of CMPSC; and (vi) repay all amounts outstanding, including any accrued interest and the premiums thereon, under Citadel’s pre-existing credit agreement and to redeem its 7.75% Senior Notes.

Borrowings under the First Lien Facility bear interest, at the option of Cumulus Holdings, based on the Base Rate (as defined below) or the London Interbank Offered Rate (“LIBOR”), in each case plus 4.5% on LIBOR-based borrowings and 3.5% on Base Rate-based borrowings. LIBOR-based borrowings are subject to a LIBOR floor of 1.25% for the First Lien Term Loan and 1.0% for the Revolving Credit Facility. Base Rate-based borrowings are subject to a Base Rate Floor of 2.25% for the First Lien Term Loan and 2.0% for the Revolving Credit Facility. Base Rate is defined, for any day, as the fluctuating 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, as established from time to time, and (iii) 30 day LIBOR plus 1.0%. The First Lien Term Loan amortizes at a per annum rate of 1.0% of the original principal amount of the First Lien Term Loan, payable quarterly, which commenced on March 31, 2012, with the balance payable on the maturity date. Amounts outstanding under the Revolving Credit Facility are due and payable on the maturity date.

Borrowings under the Second Lien Facility bear interest, at the option of Cumulus Holdings, at either the Base Rate plus 5.0%, subject to a Base Rate floor of 2.5%, or LIBOR plus 6.0%, subject to a LIBOR floor of 1.5%. The Second Lien Term Loan original principal amount is due on the maturity date, September 16, 2019.

Interest on Base Rate-based borrowings is due on the last day of each calendar quarter, except with respect to swingline loans, for which interest is due on the day that such swingline loan is required to be repaid. Interest payments on loans whose interest rate is based upon LIBOR are due at maturity if the term is three months or less or every three months and at maturity if the term exceeds three months.

At June 30, 2012, borrowings under the First Lien Term Loan bore interest at 5.75% per annum, borrowings under the Revolving Credit Facility bore interest at 5.50% per annum and borrowings under the Second Lien Term Loan bore interest at 7.50% per annum. The Company’s interest rate cap agreement with JPMorgan caps the interest rate on an equivalent amount of the Company’s LIBOR-based term loans at a maximum of 3.0% per annum. See Note 6, “Derivative Financial Instruments” for additional information.

The representations, covenants and events of default in the 2011 Credit Facilities and financial covenants in the First Lien Facility are customary for financing transactions of this nature. Events of default in the 2011 Credit Facilities include, among others: (a) the failure to pay when due the obligations owing under the credit facilities; (b) the failure to comply with (and not timely remedy, if applicable) certain financial covenants (as required by the First Lien Facility); (c) certain cross defaults and cross accelerations; (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 First Lien Facility and the Second Lien Facility, as applicable). 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 First Lien Facility and the Second Lien Facility, as applicable, and the ancillary loan documents as a secured party.

As a result of amounts being outstanding under the Revolving Credit Facility as of June 30, 2012, the First Lien Facility required compliance with a consolidated total net leverage ratio of 7.50 to 1.0 as of such date. Such ratio will be reduced in future periods if amounts remain outstanding under the Revolving Credit Facility at an applicable date. The Second Lien Facility does not contain any financial covenants.

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

At June 30, 2012, the Company was in compliance with all of the required covenants under the First Lien Facility.

Certain mandatory prepayments on the First Lien Term Loan and the Second Lien 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 First Lien Facility and the Second Lien Facility are collateralized by a first priority lien and second priority lien, respectively, on substantially all of the Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ assets 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 subsidiaries and 66.0% of the capital stock of any future first-tier foreign subsidiaries. In addition, Cumulus Holdings’ obligations under the First Lien Facility and the Second Lien Facility are guaranteed by the Company and substantially all of its restricted subsidiaries, other than Cumulus Holdings.

7.75% Senior Notes

On May 13, 2011, the Company issued $610.0 million aggregate principal amount of 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 Terminated Credit Agreement.

In connection with the Internal Restructuring, 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 each May 1 and November 1, commencing November 1, 2011. 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 on or after May 1, 2015. At any time prior to May 1, 2014, Cumulus Holdings may also redeem up to 35.0% of the 7.75% Senior Notes using the proceeds from certain equity offerings. At any time prior to May 1, 2015, Cumulus Holdings may redeem some or all of the 7.75% Senior Notes 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.

In connection with the substitution of Cumulus Holdings as the issuer of the 7.75% Senior Notes, the Company has 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.

For the three and six months ended June 30, 2012, the Company recorded an aggregate of $2.1 million and $5.1 million, respectively, of amortization costs related to its First Lien and Second Lien Credit Facilities and 7.75% Senior Notes.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

8. Fair Value Measurements

The three levels of the fair value hierarchy to be applied to financial instruments when determining fair value 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.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial assets and liabilities are measured at fair value on a recurring basis. Financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 were as follows (dollars in thousands):

				Fair Value Measurements at Reporting Date Using
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Interest rate cap (1)	$	126		$	—	$	126	$	—
Financial liabilities:
Other long-term liabilities
Green Bay Option (2)	$	(12,151	)	$	—	$	—	$	(12,151	)

(1) The Company is party to an interest rate cap pursuant to which the Company pays a fixed interest rate on a $71.3 million notional amount of its term loans. The fair value of the Company’s interest rate cap is determined based on a discounted cash flow analysis on the expected future cash flows using observable inputs, including interest rates and yield curves. Derivative valuations incorporate adjustments that are necessary to reflect the credit risk.

(2) The fair value of the Green Bay Option was determined using certain significant unobservable inputs (a Level 3 measurement). The fair value represents an estimate of the net amount that the Company would pay if the option were transferred to another party as of the date of the valuation. The option valuation incorporates a credit risk adjustment to reflect the probability of default by the Company.

The assets associated with the Company’s interest rate cap are measured within Level 2 on the fair value hierarchy. To estimate the fair value of the interest rate cap, the Company used an industry standard cash valuation model, which utilizes a discounted cash flow approach, with all significant inputs derived from or corroborated by observable market data. See Note 6, “Derivative Financial Instruments.”

The reconciliation below contains the components of the change in fair value associated with the Green Bay Option from January 1, 2012 to June 30, 2012 (dollars in thousands):

Description	Green Bay Option
Fair value balance at January 1, 2012	$	(11,398	)
Add: Mark to market fair value adjustment		(753	)
Fair value balance at June 30, 2012	$	(12,151	)

Quantitative information regarding the significant unobservable inputs related to the Green Bay Option as of June 30, 2012 were as follows (dollars in thousands):

Fair Value	Valuation Technique	Unobservable Inputs
$ (12,151)	Black-Scholes Model	Risk adjusted discount rate	7.8	%
		Total term	1.2 years
		Volatility rate	47.4	%
		Annual dividend rate	0.0	%
		Bond equivalent yield discount rate	0.2	%

Significant increases (decreases) in any of the inputs in isolation would result in a lower (higher) fair value measurement. For example, a decrease in the risk adjusted discount rate would result in a higher liability.

The carrying values of receivables, payables, and accrued expenses approximate their respective fair values due to the short maturity of these instruments.

The Company’s long-term debt is classified within Level 2 of the fair value hierarchy. The following table shows the gross amounts and fair value of the Company’s First Lien Term Loan, Second Lien Term Loan, Revolving Credit Facility and 7.75% Senior Notes (dollars in thousands):

	June 30, 2012		December 31, 2011
First Lien Term Loan:
Carrying value	$	1,318,000	$	1,325,000
Fair value		1,321,295		1,305,125
Second Lien Term Loan:
Carrying value	$	790,000	$	790,000
Fair value		795,925		770,250
Revolving Credit Facility:
Carrying value	$	100,000	$	150,000
Fair value		100,000		150,000
7.75% Senior Notes:
Carrying value	$	610,000	$	610,000
Fair value		574,132		541,680

As of June 30, 2012, the Company used the trading prices of 100.3% and 100.8% to calculate the fair value of the First Lien Term Loan and Second Lien Term Loan, respectively, and 94.1% to calculate the fair value of the 7.75% Senior Notes.

As of December 31, 2011, the Company used the trading prices of 98.5% and 97.5% to calculate the fair value of the First Lien Term Loan and Second Lien Term Loan, respectively, and 88.8% to calculate the fair value of the 7.75% Senior Notes.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

10. Stockholders’ Equity

The Company is authorized to issue an aggregate of 1,450,644,871 shares of stock divided into four classes consisting of: (i) 750,000,000 shares designated as Class A common stock, (ii) 600,000,000 shares designated as Class B common stock, (iii) 644,871 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 (see Note 9, “Redeemable Preferred Stock”). Effective September 16, 2011, upon the filing of the Third Amended and Restated Charter, each then-outstanding share of Class D common stock was converted to one share of Class B common stock.

As discussed in Note 2, “Acquisitions and Dispositions,” the Company completed the CMP Acquisition on August 1, 2011. In connection with the CMP Acquisition, the Company issued approximately 3.3 million shares of Class A common stock and 6.6 million shares of Class B common stock to affiliates of the three private equity firms that had collectively owned the 75.0% of CMP not then-owned by the Company. Also in connection with the CMP Acquisition, the 3.7 million outstanding CMP Restated Warrants were amended to become exercisable for up to 8.3 million shares of Class B common stock.

As also discussed in Note 2, “Acquisitions and Dispositions,” the Company completed the Citadel Acquisition on September 16, 2011. In connection with the Citadel Acquisition, the Company issued 23.6 million shares of Class A common stock, including 0.9 million restricted shares, and warrants to purchase 47.6 million shares of Class A common stock (the “Citadel Warrants”) to holders of Citadel’s common stock and warrants. Additionally, 2.4 million warrants to purchase shares of the Company’s common stock related to the pending final settlement of certain outstanding unsecured claims arising from Citadel’s emergence from bankruptcy in June 2010 are held in reserve for potential future issuance by the Company.

On September 16, 2011, pursuant to the Equity Investment, the Company issued and sold (i) 51.8 million shares of Class A common stock and warrants to purchase 7.8 million shares of Class A common stock with an exercise price of $4.34 per share (the “Crestview Warrants”) to an affiliate of Crestview; (ii) 125,000 shares of Series A Preferred Stock to an affiliate of Macquarie (see Note 9, “Redeemable Preferred Stock”); and (iii) 4.7 million shares of Class A common stock and warrants to purchase 24.1 million shares of Class A common stock (the “UBS Warrants,” and, together with the Citadel Warrants, the “Company Warrants”) to UBS and certain other investors to whom UBS syndicated a portion of its investment commitment.

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:

• 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 to 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 Class A common stock 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.

After payment of dividends to the holders of Series A Preferred Stock, the holders of Common Stock share ratably in any dividends that may be declared by the board of directors of the Company.

2009 Warrants

As described above, in June 2009, in connection with the execution of an amendment to the Terminated Credit Agreement, the Company issued the 2009 Warrants. The 2009 Warrants expire on June 29, 2019. Each 2009 Warrant is immediately exercisable to purchase Class A common stock at an exercise price of $1.17 per share. 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. At June 30, 2012, 1.1 million 2009 Warrants remain outstanding.

CMP Restated Warrants

As described above and in connection with the completion of the CMP Acquisition, Radio Holdings entered into an amended and restated warrant agreement, dated as of August 1, 2011 (the “Restated Warrant Agreement”). Pursuant to the Restated Warrant Agreement, and subject to the terms and conditions thereof, the previously outstanding 3.7 million Radio Holdings warrants were amended and restated to no longer be exercisable for shares of common stock of Radio Holdings but instead be exercisable, commencing on May 2, 2012 (the “Exercise Date”) at an exercise price of $0.01 per share, for an aggregate of approximately 8.3 million shares of Class B common stock (the “CMP Restated Warrants”). The CMP Restated Warrants expired by their terms on July 31, 2012, which was the 90th day succeeding the Exercise Date. Through June 30, 2012, approximately 0.3 million CMP Restated Warrants were converted into approximately 0.6 million shares of common stock and, as of June 30, 2012, CMP Restated Warrants exercisable for an aggregate of 7.7 million shares of Class B common stock (which are convertible into an equivalent number of shares of Class A common stock, subject to certain limitations) remained outstanding.

Equity Held in Reserve

Citadel emerged from bankruptcy effective June 3, 2010 and, as of September 16, 2011, certain bankruptcy-related claims against Citadel remained open for final resolution. As part of the Citadel Acquisition and as of June 30, 2012, warrants to purchase 2.4 million shares of the Company’s common stock were reserved for potential future issuance in connection with the settlement of these remaining allowed, disputed or unreconciled unsecured claims. If excess shares remain in reserve after resolution of all remaining allowed, disputed or unreconciled unsecured claims, such shares will be distributed to the claimants with allowed unsecured claims pro-rata, based on the number of shares they received pursuant to the plan under which Citadel emerged from bankruptcy. This equity held in reserve is included in additional paid—on capital on the condensed consolidated balance sheets at June 30, 2012 and December 31, 2011.

Company Warrants

At the effective time of the Citadel Acquisition, the Company issued the Company Warrants. The Company Warrants were issued under a warrant agreement (the “Warrant Agreement”), dated September 16, 2011, and the Company Warrants entitle the holders thereof to purchase an equivalent number of shares of Class A common stock. The Company Warrants are exercisable at any time prior to June 3, 2030 at an exercise price of $0.01 per share. The exercise price of the Company Warrants is not subject to any anti-dilution protection, other than standard adjustments in the case of stock splits, dividends and the like. 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 shall 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.

During the six months ended June 30, 2012, approximately 14.9 million Company Warrants were converted into shares of Class A common stock with an aggregate total of 32.4 million being converted since issuance through June 30, 2012. At June 30, 2012, 39.2 million Company Warrants remained outstanding.

Crestview Warrants

Pursuant to the Equity Investment, but pursuant to a separate warrant agreement, the Company issued the Crestview Warrants. The 7.8 million Crestview Warrants are exercisable until September 16, 2021 and the $4.34 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 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 the like. As of June 30, 2012, all 7.8 million Crestview Warrants remained outstanding.

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Earnings Per Share ("EPS") (Details Textual) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011 Warrants [Member]	Jun. 30, 2011 Restricted Stock [Member]	Jun. 30, 2011 Stock options [Member]	Jun. 30, 2011 Stock options [Member]
Earnings per share (Textual) [Abstract]
Potential dilutive equivalent shares outstanding	56.5	57.9	0.8	1.8	0.2	0

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Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Commitments and contingencies (Textual) [Abstract]
Industry fee to be credited in equal annual installments	$ 75.0
Industry fee refund for fees previously paid	70.5
Legal settlements for all the claims made in the lawsuit	0.9
Arbitron [Member]
Supply Commitment [Line Items]
Remaining aggregate obligation under the agreements with Arbitron	$ 72.9

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Earnings Per Share ("EPS") (Details 1) (USD $)	3 Months Ended			6 Months Ended		9 Months Ended	12 Months Ended
	Jun. 30, 2012	Sep. 30, 2011	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Sep. 30, 2011	Dec. 31, 2011
Effect of revision on earnings per share for all periods affected
Basic income per common share	$ (0.05)	$ 0.78	$ (0.02)	$ (0.17)	$ 0.32	$ 1.42	$ 0.62
Diluted income per common share	$ (0.05)	$ 0.72	$ (0.02)	$ (0.17)	$ 0.31	$ 1.35	$ 0.59
As previously Reported [Member]
Effect of revision on earnings per share for all periods affected
Basic income per common share		$ 0.64				$ 1.27	$ 0.48
Diluted income per common share		$ 0.60				$ 1.21	$ 0.46
Adjustment [Member]
Effect of revision on earnings per share for all periods affected
Basic income per common share		$ 0.14				$ 0.15	$ 0.14
Diluted income per common share		$ 0.12				$ 0.14	$ 0.13

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Acquisitions and Dispositions (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Final purchase price allocation in the Cmp Acquisition
Total purchase price	$ 17,394
CMP Acquisition [Member]
Final purchase price allocation in the Cmp Acquisition
Total purchase price	724,233
Existing equity interest in CMP	11,636
Total fair value for allocation	735,869
CMP Sellers [Member] | CMP Acquisition [Member]
Final purchase price allocation in the Cmp Acquisition
Total purchase price	34,909
CMP restated warrants [Member] | CMP Acquisition [Member]
Final purchase price allocation in the Cmp Acquisition
Total purchase price	29,021
CMP Preferred Stock [Member] | CMP Acquisition [Member]
Final purchase price allocation in the Cmp Acquisition
Total purchase price	41,069
Assumed Debt [Member] | CMP Acquisition [Member]
Final purchase price allocation in the Cmp Acquisition
Total purchase price	$ 619,234

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Derivative Financial Instruments (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended				6 Months Ended			3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 J P Morgan [Member]	Jun. 30, 2012 J P Morgan [Member]	Jun. 30, 2012 Interest Rate Cap [Member] J P Morgan [Member]	Dec. 31, 2011 Interest Rate Cap [Member] J P Morgan [Member]	Dec. 08, 2011 Interest Rate Cap [Member] J P Morgan [Member]	Jun. 30, 2012 Green Bay Option [Member] Clear Channel and the Company [Member]	Dec. 31, 2011 Green Bay Option [Member] Clear Channel and the Company [Member]	Oct. 04, 2009 Green Bay Option [Member] Clear Channel and the Company [Member]	Jun. 30, 2011 May 2005 Option [Member] Bank of America [Member]	Jun. 30, 2012 May 2005 Option [Member] Bank of America [Member]	Jun. 30, 2011 May 2005 Option [Member] Bank of America [Member]
Derivative Financial Instruments (Textual) [Abstract]
Interest rate cap aggregate notional amount							$ 71.3		$ 71.3
LIBOR-based variable interest rate component of long-term debt									3.00%
Long-term assets attributable to the fair value of the interest rate cap							0.1	0.4
Monthly fee for operation												0.2
Term of payment												5 years
LMA expiration date												Dec. 31, 2013
Number of Green Bay radio stations to be purchased due to Clear channel's Put option												5
Put option amount												17.6
Other long-term liabilities										12.2	11.4
Realized loss on derivative instruments associated with marking to market the Green Bay Option	0.8	1.2	0.8	1.2
Duration of Swap agreement										0 years 2 months				2 years
Date of inception of purchase										Jul. 01, 2013				Mar. 13, 2009
Swap agreement, Date of maturity						Dec. 08, 2015								Mar. 31, 2011
Exercise date of May 2005 option														Mar. 11, 2009
Expiry date of May 2005 option														Mar. 13, 2011
Interest expense					$ 0.2	$ 0.3							$ 0		$ 3.7

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Supplemental Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2012

Supplemental Condensed Consolidating Financial Information [Abstract]

Supplemental Condensed Consolidating Financial Information

15. Supplemental Condensed Consolidating Financial Information

At June 30, 2012, Cumulus and certain of its wholly owned subsidiaries (such subsidiaries, the “Subsidiary Guarantors”) provided guarantees of the obligations of Cumulus Holdings 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 Cumulus Media Inc. (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 three and six months ended June 30, 2012 and 2011, (ii) condensed consolidating balance sheets as of June 30, 2012 and December 31, 2011, and (iii) condensed consolidating statements of cash flows for the six months ended June 30, 2012 and 2011, 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 CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30, 2012

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	280,745		$	—		$	—		$	280,745
Management fees		296			—			—			—			—			296
Net revenues		296			—			280,745			—			—			281,041
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			168,222			524			—			168,746
Depreciation and amortization		345			—			35,855			—			—			36,200
LMA fees		—			—			885			—			—			885
Corporate general and administrative expenses (including stock-based compensation expense of $5,928)		16,802			—			—			—			—			16,802
Realized loss on derivative instrument		—			—			841			—			—			841
Impairment of intangible assets		—			—			12,435			—			—			12,435
Total operating expenses		17,147			—			218,238			524			—			235,909
Non-operating (expense) income:
Operating (loss) income		(16,851	)		—			62,507			(524	)		—			45,132
Interest expense, net		—			(49,921	)		302			—			—			(49,619	)
Loss on early extinguishment of debt		—			—			—			—			—			—
Other expense, net		—			—			(74	)		—			—			(74	)
Total non-operating expense (income), net		—			(49,921	)		228			—			—			(49,693	)
(Loss) income from continuing operations before income taxes		(16,851	)		(49,921	)		62,735			(524	)		—			(4,561	)
Income tax benefit		—			—			340			2,458			—			2,798
(Loss) income from continuing operations		(16,851	)		(49,921	)		63,075			1,934			—			(1,763	)
Income from discontinued operations, net of taxes		—			—			11,341			(1,435	)		—			9,906
Earnings (loss) from consolidated subsidiaries		24,994			74,915			499			—			(100,408	)		—
Net income (loss)	$	8,143		$	24,994		$	74,915		$	499		$	(100,408	)	$	8,143

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30, 2011

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	61,116		$	—		$	—		$	61,116
Management fees		1,125			—			—			—			—			1,125
Net revenues		1,125			—			61,116			—			—			62,241
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			34,957			324			—			35,281
Depreciation and amortization		328			—			1,441			—			—			1,769
LMA fees		—			—			560			—			—			560
Corporate general and administrative expenses (including stock-based compensation expense of $598)		9,139			—			—			—			—			9,139
Gain on exchange of assets or stations		—			—			(120	)		—			—			(120	)
Realized loss on derivative instrument		—			—			1,205			—			—			1,205
Total operating expenses		9,467			—			38,043			324			—			47,834
Operating (loss) income		(8,342	)		—			23,073			(324	)		—			14,407
Non-operating (expense) income:
Interest expense, net		(2,747	)		(6,435	)		4			—			—			(9,178	)
Loss on early extinguishment of debt		(4,366	)		—			—			—			—			(4,366	)
Other expense, net		—			—			(92	)		—			—			(92	)
Total non-operating expense, net		(7,113	)		(6,435	)		(88	)		—			—			(13,636	)
(Loss) income from continuing operations before income taxes		(15,455	)		(6,435	)		22,985			(324	)		—			771
Income tax expense		—			—			—			(1,582	)		—			(1,582	)
(Loss) income from continuing operations		(15,455	)		(6,435	)		22,985			(1,906	)		—			(811	)
Income from discontinued operations, net of taxes		—			—			2,940			(788	)		—			2,152
Earnings (loss) from consolidated subsidiaries		16,796			23,231			(2,694	)		—			(37,333	)		—
Net income (loss)	$	1,341		$	16,796		$	23,231		$	(2,694	)	$	(37,333	)	$	1,341

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six Months Ended June 30, 2012

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary Issuer)			Subsidiary Guarantors		Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	516,710	$	—		$	—		$	516,710
Management fees		326			—			—		—			—			326
Net revenues		326			—			516,710		—			—			517,036
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			321,396		1,046			—			322,442
Depreciation and amortization		566			—			70,441		—			—			71,007
LMA fees		—			—			1,724		—			—			1,724
Corporate general and administrative expenses (including stock-based compensation expense of $12,906)		33,494			—			—		—			—			33,494
Realized loss on derivative instrument		—			—			753		—			—			753
Impairment of intangible assets		—			—			12,435		—			—			12,435
Total operating expenses		34,060			—			406,749		1,046			—			441,855
Operating (loss) income		(33,734	)		—			109,961		(1,046	)		—			75,181
Non-operating (expense) income:
Interest (expense) income, net		—			(101,020	)		598		—			—			(100,422	)
Other expense, net		—			—			190		—			—			190
Total non-operating (expense) income, net		—			(101,020	)		788		—			—			(100,232	)
(Loss) income from continuing operations before income taxes		(33,734	)		(101,020	)		110,749		(1,046	)		—			(25,051	)
Income tax benefit		—			—			1,268		9,421			—			10,689
(Loss) income from continuing operations		(33,734	)		(101,020	)		112,017		8,375			—			(14,362	)
Income from discontinued operations, net of taxes		—			—			13,490		(3,115	)		—			10,375
Earnings (loss) from consolidated subsidiaries		29,747			130,767			5,260		—			(165,774	)		—
Net (loss) income	$	(3,987	)	$	29,747		$	130,767	$	5,260		$	(165,774	)	$	(3,987	)

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six Months Ended June 30, 2011

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	111,657		$	—		$	—		$	111,657
Management fees		2,250			—			—			—			—			2,250
Net revenues		2,250			—			111,657			—			—			113,907
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			68,457			524			—			68,981
Depreciation and amortization		719			—			2,958			—			—			3,677
LMA fees		—			—			1,141			—			—			1,141
Corporate general and administrative expenses (including stock-based compensation expense of $1,187)		17,271			—			—			—			—			17,271
Gain on exchange of assets or stations		—			—			(15,278	)		—			—			(15,278	)
Realized loss on derivative instrument		—			—			1,244			—			—			1,244
Total operating expenses		17,990			—			58,522			524			—			77,036
Operating (loss) income		(15,740	)		—			53,135			(524	)		—			36,871
Non-operating (expense) income:
Interest (expense) income, net		(9,067	)		(6,435	)		6			—			—			(15,496	)
Loss on early extinguishment of debt		(4,366	)		—			—			—			—			(4,366	)
Other expense, net		—			—			(93	)		—			—			(93	)
Total non-operating expense, net		(13,433	)		(6,435	)		(87	)		—			—			(19,955	)
(Loss) income from continuing operations before income taxes		(29,173	)		(6,435	)		53,048			(524	)		—			16,916
Income tax expense		—			—			(220	)		(3,263	)		—			(3,483	)
(Loss) income from continuing operations		(29,173	)		(6,435	)		52,828			(3,787	)		—			13,433
Income from discontinued operations, net of taxes		—			—			5,063			(1,036	)		—			4,027
Earnings (loss) from consolidated subsidiaries		46,633			53,068			(4,823	)		—			(94,878	)		—
Net income (loss)	$	17,460		$	46,633		$	53,068		$	(4,823	)	$	(94,878	)	$	17,460

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2012

(Dollars in thousands, except for share and per share data)

(Unaudited)

	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	$	15,093		$	—	$	3,990		$	—		$	—		$	19,083
Restricted cash		3,854			—		—			—			—			3,854
Accounts receivable, less allowance for doubtful accounts of $3,694		—			—		233,776			—			—			233,776
Trade receivable		—			—		7,178			—			—			7,178
Prepaid expenses and other current assets		8,605			—		17,130			324			—			26,059
Current assets held for sale		—			—		46,860			25,490			—			72,350
Total current assets		27,552			—		308,934			25,814			—			362,300
Property and equipment, net		4,995			—		257,083			—			—			262,078
Broadcast licenses		—			—		—			1,598,228			—			1,598,228
Other intangible assets, net		—			—		315,539			—			—			315,539
Goodwill		—			—		1,292,725			—			—			1,292,725
Investment in consolidated subsidiaries		260,854			3,138,333		1,169,513			—			(4,568,700	)		—
Other assets		13,738			51,127		18,721			—			—			83,586
Total assets	$	307,139		$	3,189,460	$	3,362,515		$	1,624,042		$	(4,568,700	)	$	3,914,456
Liabilities, Redeemable Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	15,255		$	15,135	$	81,718		$	—		$	—		$	112,108
Trade payable		—			—		5,392			—			—			5,392
Current portion of long-term debt		—			13,250		—			—			—			13,250
Total current liabilities		15,255			28,385		87,110			—			—			130,750
Long-term debt, excluding 7.75% senior notes		—			2,171,990		—			—			—			2,171,990
7.75% senior notes		—			610,000		—			—			—			610,000
Other liabilities		13,377			—		49,135			—			—			62,512
Deferred income taxes		—			—		87,937			454,529			—			542,466
Total liabilities		28,632			2,810,375		224,182			454,529			—			3,517,718
Redeemable preferred stock:
Series A cumulative redeemable preferred stock, par value $0.01 per share; stated value of $1,000 per share; 100,000,000 shares authorized; 125,000 shares issued and outstanding		—			118,231		—			—			—			118,231
Total redeemable preferred stock		—			118,231		—			—			—			118,231
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 176,273,876 shares issued and 152,156,089 shares outstanding		1,763			—		—			—			—			1,763
Class B common stock, par value $0.01 per share; 600,000,000 shares authorized; 12,439,667 shares issued and outstanding		124			—		—			—			—			124
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding		6			—		—			—			—			6
Treasury stock, at cost, 24,117,787 shares		(251,915	)		—		—			—			—			(251,915	)
Additional paid-in-capital		1,517,988			77,990		3,733,637			2,138,191			(5,949,818	)		1,517,988
Accumulated (deficit) equity		(989,459	)		182,864		(595,304	)		(968,678	)		1,381,118			(989,459	)
Total stockholders’ equity (deficit)		278,507			260,854		3,138,333			1,169,513			(4,568,700	)		278,507
Total liabilities, redeemable preferred stock and stockholders’ equity (deficit)	$	307,139		$	3,189,460	$	3,362,515		$	1,624,042		$	(4,568,700	)	$	3,914,456

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2011

(Dollars in thousands, except for share and per share data)

(Unaudited)

	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	$	11,714		$	—	$	18,878		$	—		$	—		$	30,592
Restricted cash		3,854			—		—			—			—			3,854
Accounts receivable, less allowance for doubtful accounts of $2,765		—			—		236,804			—			—			236,804
Trade receivable		—			—		5,967			—			—			5,967
Compensation held in trust		24,807														24,807
Prepaid expenses and other current assets		6,542			—		14,762			1,011			—			22,315
Total current assets		46,917			—		276,411			1,011			—			324,339
Property and equipment, net		6,555			—		271,515			—			—			278,070
Broadcast licenses		—			—		—			1,625,415			—			1,625,415
Other intangible assets, net		—			—		390,509			—			—			390,509
Goodwill		—			—		1,334,512			—			—			1,334,512
Investment in consolidated subsidiaries		323,436			3,247,865		1,157,317			—			(4,728,618	)		—
Other assets		13,577			55,176		18,993			—			—			87,746
Total assets	$	390,485		$	3,303,041	$	3,449,257		$	1,626,426		$	(4,728,618	)	$	4,040,591
Liabilities, Redeemable Preferred Stockand Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	57,220		$	15,621	$	87,070		$	275		$	—		$	160,186
Trade payable		—			—		4,999			—			—			4,999
Current portion of long-term debt		—			13,250		—			—			—			13,250
Total current liabilities		57,220			28,871		92,069			275			—			178,435
Long-term debt, excluding 7.75% senior notes		—			2,227,287		—			—			—			2,227,287
7.75% senior notes		—			610,000		—			—			—			610,000
Other liabilities		42,552			—		21,386			—			—			63,938
Deferred income taxes		—			—		87,937			468,834			—			556,771
Total liabilities		99,772			2,866,158		201,392			469,109			—			3,636,431
Redeemable preferred stock:
Series A cumulative redeemable preferred stock, par value $0.01 per share; stated value of $1,000 per share; 100,000,000 shares authorized; 125,000 shares issued and outstanding		—			113,447		—			—			—			113,447
Total redeemable preferred stock		—			113,447		—			—			—			113,447
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share;
750,000,000 shares authorized; 160,783,484shares issued and 137,085,813 shares outstanding		1,608			—		—			—			—			1,608
Class B common stock, par value $0.01 per share;
600,000,000 shares authorized; 12,439,667shares issued and outstanding		124			—		—			—			—			124
Class C common stock, par value $0.01 per share;
644,871 shares authorized; 644,871 sharesissued and outstanding		6			—		—			—			—			6
Treasury stock, at cost, 23,697,671 shares		(251,666	)		—		—			—			—			(251,666	)
Additional paid-in-capital		1,526,114			169,234		3,972,850			2,131,251			(6,273,335	)		1,526,114
Accumulated (deficit) equity		(985,473	)		154,202		(724,985	)		(973,934	)		1,544,717			(985,473	)
Total stockholders’ equity (deficit)		290,713			323,436		3,247,865			1,157,317			(4,728,618	)		290,713
Total liabilities, redeemable preferred stock andstockholders’ equity (deficit)	$	390,485		$	3,303,041	$	3,449,257		$	1,626,426		$	(4,728,618	)	$	4,040,591

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2012

(Dollars in thousands)

(Unaudited)

	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	$	(3,987	)	$	29,747		$	130,767		$	5,260		$	(165,774	)	$	(3,987	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		566			—			71,676			—			—			72,242
Amortization of debt issuance costs/discounts		—			5,061			—			—			—			5,061
Loss on early extinguishment of debt		—															—
Provision for doubtful accounts		—			—			1,598			—			—			1,598
Gain on sale of assets or stations		—			—			(183	)		—			—			(183	)
Impairment of intangible assets		—						12,435									12,435
Fair value adjustment of derivative instruments		250			—			753			—			—			1,003
Deferred income taxes		—			—			(7,991	)		(6,311	)		—			(14,302	)
Stock-based compensation expense		12,906			—			—			—			—			12,906
Earnings from consolidated subsidiaries		29,747			130,767			5,260			—			(165,774	)		—
Changes in assets and liabilities		(34,105	)		(102,117	)		(227,960	)		1,051			331,548			(31,583	)
Net cash provided by (used in) operating activities		5,377			63,458			(13,645	)		—			—			55,190
Cash flows from investing activities:
Proceeds from sale of assets or stations		426			—			—			—			—			426
Capital expenditures		(676	)		—			(1,243	)		—			—			(1,919	)
Net cash used in investing activities		(250	)		—			(1,243	)		—			—			(1,493	)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities		—			(57,000	)		—			—			—			(57,000	)
Tax withholding payments on behalf of employees		(1,909	)		—			—			—			—			(1,909	)
Preferred stock dividends		—			(6,458	)		—			—			—			(6,458	)
Exercise of warrants		161			—			—			—			—			161
Net cash used in by financing activities		(1,748	)		(63,458	)		—			—			—			(65,206	)
Increase (decrease) in cash and cash equivalents		3,379			—			(14,888	)		—			—			(11,509	)
Cash and cash equivalents at beginning of period		11,714			—			18,878			—			—			30,592
Cash and cash equivalents at end of period	$	15,093		$	—		$	3,990		$	—		$	—		$	19,083

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2011

(Dollars in thousands)

(Unaudited)

	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)	$	17,460		$	46,633		$	53,068		$	(4,823	)	$	(94,878	)	$	17,460
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		719			—			3,293			—			—			4,012
Amortization of debt issuance costs/discounts		445			288			—			—			—			733
Provision for doubtful accounts		—			—			644			—			—			644
Loss on sale of assets or stations		—			.			93			—			—			93
Gain on exchange of assets or stations		—			—			(15,278	)		—			—			(15,278	)
Fair value adjustment of derivative instruments		(3,683	)		—			1,244			—			—			(2,439	)
Deferred income taxes		—			—			—			4,299			—			4,299
Stock-based compensation expense		1,187			—			—			—			—			1,187
Loss on early extinguishment of debt		4,366			—			—			—			—			4,366
Earnings from consolidated subsidiaries		46,633			53,068			(4,823	)		—			(94,878	)		—
Changes in assets and liabilities		544,230			(692,482	)		(36,953	)		694			189,756			5,245
Net cash provided by (used in) operating activities		611,357			(592,493	)		1,288			170			—			20,322
Cash flows from investing activities:
Capital expenditures		(252	)		—			(1,253	)		—			—			(1,505	)
Purchase of intangible assets		—			—			—			(170	)		—			(170	)
Net cash used in investing activities		(252	)		—			(1,253	)		(170	)		—			(1,675	)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities		(593,754	)		—			—			—			—			(593,754	)
Tax withholding payments on behalf of employees		(666	)		—			—			—			—			(666	)
Exercise of warrants		19			—			—			—			—			19
Proceeds from issuance of senior notes		—			610,000			—			—			—			610,000
Deferred financing costs		—			(17,507	)		—			—			—			(17,507	)
Net cash (used in) provided by financing activities		(594,401	)		592,493			—			—			—			(1,908	)
(Decrease) increase in cash and cash equivalents		16,704			—			35			—			—			16,739
Cash and cash equivalents at beginning of period		12,638			—			176			—			—			12,814
Cash and cash equivalents at end of period	$	29,342		$	—		$	211		$	—		$	—		$	29,553

XML

Intangible Assets and Goodwill (Tables)

6 Months Ended

Jun. 30, 2012

Intangible Assets and Goodwill [Abstract]

Schedule of changes in intangible assets other than goodwill

	Indefinite-Lived			Definite-Lived			Total
Intangible Assets:
Balance as of January 1, 2011	$	160,418		$	552		$	160,970
Acquisition		11,355			77			11,432
Disposition		(1,533	)		(83	)		(1,616	)
Amortization		—			(41	)		(41	)
Balance as of June 30, 2011	$	170,240		$	505		$	170,745
Balance as of January 1, 2012		1,625,415			390,509			2,015,924
Current assets held for sale		(25,490	)		(6,880	)		(32,370	)
Purchase price allocation adjustments		(1,581	)		957			(624	)
Impairment		—			(12,435	)		(12,435	)
Disposition		(116	)		—			(116	)
Amortization		—			(56,612	)		(56,612	)
Balance as of June 30, 2012	$	1,598,228		$	315,539		$	1,913,767

Schedule of changes in goodwill and accumulated impairment losses

	2012			2011
Balance as of January 1:
Goodwill	$	1,564,253		$	285,820
Accumulated impairment losses		(229,741	)		(229,741	)
Subtotal		1,334,512			56,079
Acquisition		—			4,343
Current assets held for sale		(32,132	)		—
Purchase price allocation adjustments		(9,550	)		—
Disposal		(105	)		—
Balance as of June 30:
Goodwill		1,522,466			290,163
Accumulated impairment losses		(229,741	)		(229,741	)
Total	$	1,292,725		$	60,422

XML

Derivative Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of location and fair value amounts of derivatives in the unaudited condensed consolidated balance sheets
Total	$ (12,025)	$ (11,022)
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member] | Other Long Term Assets [Member]
Schedule of location and fair value amounts of derivatives in the unaudited condensed consolidated balance sheets
Fair Value, Assets	126	376
Green Bay Option [Member] | Not Designated as Hedging Instrument [Member] | Other long-term liabilities [Member]
Schedule of location and fair value amounts of derivatives in the unaudited condensed consolidated balance sheets
Fair value, Liabilities	$ 12,151	$ 11,398

XML

Acquisition and Disposition (Details Textual) (USD $)	3 Months Ended		6 Months Ended				1 Months Ended	6 Months Ended		1 Months Ended		6 Months Ended				0 Months Ended			0 Months Ended		6 Months Ended						0 Months Ended	1 Months Ended	0 Months Ended				1 Months Ended		0 Months Ended	6 Months Ended	0 Months Ended					0 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	May 13, 2011	Jul. 31, 2012 Townsquare Media, LLC [Member] Entity	Jun. 30, 2012 Townsquare Media, LLC [Member] Radio_Stations Stations	Apr. 30, 2012 Townsquare Media, LLC [Member]	Feb. 18, 2011 Clear Channel Communications, Inc. [Member] Entity	Aug. 30, 2011 CMP Acquisition [Member]	Jun. 30, 2012 CMP Acquisition [Member]	Sep. 16, 2011 CMP Acquisition [Member]	Aug. 01, 2011 CMP Acquisition [Member]	Sep. 16, 2011 Citadel Acquisition [Member]	Sep. 16, 2011 UBS [Member]	Aug. 01, 2011 Radio Holdings [Member] CMP Acquisition [Member]	Aug. 01, 2011 San Francisco Baseball Associates L.P. [Member] CMP Acquisition [Member]	Sep. 16, 2011 Warrants held for future issuance [Member] Citadel Acquisition [Member]	Sep. 16, 2011 Citadel Acquisition [Member]	Jun. 30, 2012 Citadel Acquisition [Member]	May 31, 2011 Citadel Acquisition [Member]	Sep. 16, 2011 Crestview [Member]	Jun. 30, 2012 Common Class A [Member]	Dec. 31, 2011 Common Class A [Member]	Sep. 16, 2011 Common Class A [Member] Citadel Acquisition [Member]	Sep. 16, 2011 Common Class A [Member] UBS [Member]	Aug. 30, 2011 Common Class A [Member] Blackstone [Member] CMP Acquisition [Member]	Sep. 16, 2011 Common Class A [Member] Citadel Acquisition [Member]	Jun. 30, 2012 Common Class B [Member]	Dec. 31, 2011 Common Class B [Member]	Aug. 01, 2011 Common Class D [Member] CMP Acquisition [Member]	Aug. 30, 2011 Common Class D [Member] Bain Capital Partners, LLC [Member] CMP Acquisition [Member]	Aug. 30, 2011 Common Class D [Member] Thomas H. Lee Partners, L.P. [Member] CMP Acquisition [Member]	Sep. 16, 2011 Restricted Shares [Member] Citadel Acquisition [Member]	Jun. 30, 2012 Series A preferred stock [Member] Macquarie [Member]	Sep. 16, 2011 Warrants [Member] Citadel Acquisition [Member]	Sep. 16, 2011 Warrants [Member] Common Class A [Member]	Sep. 16, 2011 First Lien Term Loan [Member]	Sep. 16, 2011 First Lien Term Loan [Member] Citadel Acquisition [Member]	Sep. 16, 2011 Second Lien Term Loan [Member]	Sep. 16, 2011 Second Lien Term Loan [Member] Citadel Acquisition [Member]	Sep. 16, 2011 Revolving Credit Facility [Member]
Acquisition and Dispositions (Textual) [Abstract]
Disposal of stations							55	55		2
Number of Townsquare radio stations acquired							10	10
Additional cash received							$ 115,800,000	$ 115,800,000	$ 115,800,000																	$ 1,400,000,000
Number of acquisitions of stations in 2011										8
Fair value of assets acquired										17,400,000
Acquisition costs										300,000
Fair value allocated to goodwill	756,600,000		756,600,000							4,300,000				402,700,000
Gain on exchange of assets or stations		(120,000)		(15,278,000)
Equity interest percentage														75.00%
Aggregate acquisition value	2,320,241,000		2,320,241,000																	2,300,000,000
Equity interest previously owned														25.00%
Stock issued to affiliates											9,900,000								2,400,000								4,700,000	3,300,000	23,600,000				3,300,000	3,300,000	900,000	125,000	47,600,000	51,800,000
Common stock, par value																								$ 0.01	$ 0.01					$ 0.01	$ 0.01	$ 0.01
Warrants to purchase shares of common stock																	3,700,000						7,800,000
Shares issuable upon exercise of CMP warrants														8,300,000
Fair value of interest																		9,800,000
Gain on fair value measurement on the equity investment											11,600,000
Difference in Fair Value and Carrying Value											0
Dividend on outstanding preferred stock of CMP												500,000
Series A cumulative redeemable preferred stock	118,231,000		118,231,000		113,447,000								41,600,000
Par value of CMP preferred stock												32,800,000
Cumulative undeclared dividends on CMP preferred stock												8,300,000
Estimated common stock received in exchange for the equity interests											3,300,000
Future market revenue growth rates for residual year			2.00%									2.00%
Weighted average cost of capital			10.00%									10.50%
Amount of outstanding debt paid																				1,400,000,000																						790,000,000
Term loan and revolving credit facilities															200,000,000
Senior Notes issued						610,000,000																610,000,000
Goodwill purchase accounting adjustments related to fair value adjustments of broadcast licenses, current assets	9,100,000		9,100,000
Goodwill purchase accounting adjustments related to fair value adjustments of broadcast licenses, current liabilities	8,300,000		8,300,000
Purchase of exercisable warrants																24,100,000
Percentage of Senior notes			7.75%
Warrants held in reserve for potential future issuance			2,400,000
Purchase of Warrants																					47,600,000
Total term loan and revolving credit facilities	2,185,240,000		2,185,240,000		2,240,537,000																																		1,325,000,000	1,325,000,000	790,000,000		300,000,000
Proceeds from the sale of common stock, preferred stock and warrants to purchase common stock to certain investors															$ 475,000,000

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Condensed Consolidated Statements of Operations (Parenthetical) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Condensed Consolidated Statements of Operations [Abstract]
Stock-based compensation expense	$ 5,928	$ 598	$ 12,906	$ 1,187

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Restricted Cash

6 Months Ended

Jun. 30, 2012

Restricted Cash [Abstract]

Restricted Cash

4. Restricted Cash

As of June 30, 2012 and December 31, 2011, the Company’s balance sheet includes approximately $3.8 million in restricted cash, of which $2.2 million relates to a cash reserve from the Citadel Acquisition. The reserve is expected to be used to satisfy the remaining allowed, disputed or unreconciled unsecured claims related to Citadel’s prior bankruptcy proceedings. $1.6 million of the restricted cash balance relates to securing the maximum exposure generated by automated clearing house transactions in the Company’s operating bank accounts and as dictated by the Company’s bank’s internal policies with respect to cash.

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Fair Value Measurements (Details Textual) (USD $)	Jun. 30, 2012	Dec. 31, 2011
First Lien Term Loan [Member]
Fair Value Measurements (Textual) [Abstract]
Fair value of interest rate cap	$ 1,321,295,000	$ 1,305,125,000
Trading prices rate to calculate the fair value	100.30%	98.50%
Second Lien Term Loan [Member]
Fair Value Measurements (Textual) [Abstract]
Fair value of interest rate cap	795,925,000	770,250,000
Trading prices rate to calculate the fair value	100.80%	97.50%
7.75% Senior Notes [Member]
Fair Value Measurements (Textual) [Abstract]
Fair value of interest rate cap	574,132,000	541,680,000
Trading prices rate to calculate the fair value	94.10%	88.80%
Interest Rate Cap [Member]
Fair Value Measurements (Textual) [Abstract]
Payment towards notional amount of term loans	$ 71,300,000

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Supplemental Condensed Consolidating Financial Information (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net (loss) income	$ 8,143	$ 1,341	$ (3,987)	$ 17,460
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	36,200	1,769	71,007	3,677
Amortization of debt issuance costs/discounts			5,061	733
Provision for doubtful accounts			1,598	644
(Gain) loss on sale of assets or stations			(183)	93
Gain on exchange of assets or stations				(15,278)
Impairment of definite-lived intangible asset	12,435		12,435
Fair value adjustment of derivative instruments			1,003	(2,439)
Deferred income taxes			(14,302)	4,299
Stock-based compensation expense	5,928	598	12,906	1,187
Loss on early extinguishment of debt				4,366
Earnings from consolidated subsidiaries
Changes in assets and liabilities:			(31,583)	5,245
Net cash provided by operating activities			55,190	20,322
Cash flows from investing activities:
Purchase of intangible assets				(170)
Proceeds from sale of assets or stations			426
Capital expenditures			(1,919)	(1,505)
Net cash used in investing activities			(1,493)	(1,675)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities			(57,000)	(593,754)
Tax withholding payments on behalf of employees			(1,909)	(666)
Preferred stock dividends			(6,458)
Exercise of warrants			161	19
Proceeds from issuance of senior notes				610,000
Deferred financing costs				(17,507)
Net cash used in financing activities			(65,206)	(1,908)
(Decrease) increase in cash and cash equivalents			(11,509)	16,739
Cash and cash equivalents at beginning of period			30,592	12,814
Cash and cash equivalents at end of period	19,083	29,553	19,083	29,553
Cumulus Media Inc. (Parent Guarantor Member) [Member]
Cash flows from operating activities:
Net (loss) income	8,143	1,341	(3,987)	17,460
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	345	328	566	719
Amortization of debt issuance costs/discounts				445
Provision for doubtful accounts
(Gain) loss on sale of assets or stations
Gain on exchange of assets or stations
Impairment of definite-lived intangible asset
Fair value adjustment of derivative instruments			250	(3,683)
Deferred income taxes
Stock-based compensation expense			12,906	1,187
Loss on early extinguishment of debt				4,366
Earnings from consolidated subsidiaries			29,747	46,633
Changes in assets and liabilities:			(34,105)	544,230
Net cash provided by operating activities			5,377	611,357
Cash flows from investing activities:
Purchase of intangible assets
Proceeds from sale of assets or stations			426
Capital expenditures			(676)	(252)
Net cash used in investing activities			(250)	(252)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities				(593,754)
Tax withholding payments on behalf of employees			(1,909)	(666)
Preferred stock dividends
Exercise of warrants			161	19
Proceeds from issuance of senior notes
Deferred financing costs
Net cash used in financing activities			(1,748)	(594,401)
(Decrease) increase in cash and cash equivalents			3,379	16,704
Cash and cash equivalents at beginning of period			11,714	12,638
Cash and cash equivalents at end of period	15,093	29,342	15,093	29,342
Cumulus Media Holdings Inc. (Subsidiary Issuer) [Member]
Cash flows from operating activities:
Net (loss) income	24,994	16,796	29,747	46,633
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization
Amortization of debt issuance costs/discounts			5,061	288
Provision for doubtful accounts
(Gain) loss on sale of assets or stations
Gain on exchange of assets or stations
Impairment of definite-lived intangible asset
Fair value adjustment of derivative instruments
Deferred income taxes
Stock-based compensation expense
Loss on early extinguishment of debt
Earnings from consolidated subsidiaries			130,767	53,068
Changes in assets and liabilities:			(102,117)	(692,482)
Net cash provided by operating activities			63,458	(592,493)
Cash flows from investing activities:
Purchase of intangible assets
Proceeds from sale of assets or stations
Capital expenditures
Net cash used in investing activities
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities			(57,000)
Tax withholding payments on behalf of employees
Preferred stock dividends			(6,458)
Exercise of warrants
Proceeds from issuance of senior notes				610,000
Deferred financing costs				(17,507)
Net cash used in financing activities			(63,458)	592,493
(Decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Subsidiary Guarantors [Member]
Cash flows from operating activities:
Net (loss) income	74,915	23,231	130,767	53,068
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	35,855	1,441	70,441	2,958
Amortization of debt issuance costs/discounts
Provision for doubtful accounts			1,598	644
(Gain) loss on sale of assets or stations			(183)	93
Gain on exchange of assets or stations				(15,278)
Impairment of definite-lived intangible asset	12,435		12,435
Fair value adjustment of derivative instruments			753	(1,244)
Deferred income taxes			(7,991)
Stock-based compensation expense
Loss on early extinguishment of debt
Earnings from consolidated subsidiaries			5,260	(4,823)
Changes in assets and liabilities:			(227,960)	(36,953)
Net cash provided by operating activities			(13,645)	1,288
Cash flows from investing activities:
Purchase of intangible assets
Proceeds from sale of assets or stations
Capital expenditures			(1,243)	(1,253)
Net cash used in investing activities			(1,243)	(1,253)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities
Tax withholding payments on behalf of employees
Preferred stock dividends
Exercise of warrants
Proceeds from issuance of senior notes
Deferred financing costs
Net cash used in financing activities
(Decrease) increase in cash and cash equivalents			(14,888)	35
Cash and cash equivalents at beginning of period			18,878	176
Cash and cash equivalents at end of period	3,990	211	3,990	211
Subsidiary Non-guarantors [Member]
Cash flows from operating activities:
Net (loss) income	499	(2,694)	5,260	(4,823)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization
Amortization of debt issuance costs/discounts
Provision for doubtful accounts
(Gain) loss on sale of assets or stations
Gain on exchange of assets or stations
Impairment of definite-lived intangible asset
Fair value adjustment of derivative instruments
Deferred income taxes			6,311	4,299
Stock-based compensation expense
Loss on early extinguishment of debt
Earnings from consolidated subsidiaries
Changes in assets and liabilities:			1,051	694
Net cash provided by operating activities				170
Cash flows from investing activities:
Purchase of intangible assets				(170)
Proceeds from sale of assets or stations
Capital expenditures
Net cash used in investing activities				(170)
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities
Tax withholding payments on behalf of employees
Preferred stock dividends
Exercise of warrants
Proceeds from issuance of senior notes
Deferred financing costs
Net cash used in financing activities
(Decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Eliminations [Member]
Cash flows from operating activities:
Net (loss) income	(100,408)	(37,333)	(165,774)	(94,878)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization
Amortization of debt issuance costs/discounts
Provision for doubtful accounts
(Gain) loss on sale of assets or stations
Gain on exchange of assets or stations
Impairment of definite-lived intangible asset
Fair value adjustment of derivative instruments
Deferred income taxes
Stock-based compensation expense
Loss on early extinguishment of debt
Earnings from consolidated subsidiaries			(165,774)	(94,878)
Changes in assets and liabilities:			331,548	189,756
Net cash provided by operating activities				0
Cash flows from investing activities:
Purchase of intangible assets
Proceeds from sale of assets or stations
Capital expenditures
Net cash used in investing activities				0
Cash flows from financing activities:
Repayments of borrowings under term loans and revolving credit facilities
Tax withholding payments on behalf of employees
Preferred stock dividends
Exercise of warrants
Proceeds from issuance of senior notes
Deferred financing costs
Net cash used in financing activities
(Decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Financial Instruments [Abstract]

Schedule of location and fair value amounts of derivatives in the unaudited condensed consolidated balance sheets

		Fair Value
Derivative Instruments	Balance Sheet Location	June 30, 2012			December 31, 2011
Derivatives not designated as hedging instruments:
Interest rate cap	Other long-term assets	$	126		$	376
Green Bay Option	Other long-term liabilities		(12,151	)		(11,398	)
	Total	$	(12,025	)	$	(11,022	)

Schedule of location and fair values of derivatives in the unaudited condensed consolidated statements of operations

		Amount of Expense (Income) Recognized on Derivatives
		For the Three Months Ended June 30,				For the Six Months Ended June 30,
Derivative Instruments	Statement of Operations Location	2012		2011		2012		2011
Interest rate cap	Interest expense	$	165	$	—	$	250	$	—
Green Bay Option	Realized losses on derivative instrument		841		1,204		753		1,244
May 2005 Option	Interest income		—		—		—		(3,683	)
	Total	$	1,006	$	1,204	$	1,003	$	(2,439	)

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Acquisitions and Dispositions (Details 5) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Final purchase price allocation in the Citadel Acquisition among the tangible and intangible assets acquired, and liabilities assumed
Current assets	$ 328,306
Property and equipment	221,697
Broadcast licenses	1,135,669
Other intangibles	333,480
Goodwill	861,305
Other assets	18,794
Current liabilities	(106,799)
Other long-term liabilities	(38,660)
Deferred income taxes	(433,551)
Total purchase price	$ 2,320,241

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

14. Commitments and Contingencies

Future Commitments

Effective December 31, 2009, the Company’s radio music license agreements with the two largest performance rights organizations, The American Society of Composers, Authors and Publishers (“ASCAP”) and Broadcast Music, Inc. (“BMI”), expired. In January 2010, the Radio Music License Committee (the “RMLC”), which negotiates music licensing fees for most of the radio industry with ASCAP and BMI, filed motions in the New York courts against these organizations on behalf of the radio industry, seeking interim fees and a determination of fair and reasonable industry-wide license fees. During 2010, the courts approved reduced interim fees for ASCAP and BMI. On January 27, 2012, the Federal District Court for the Southern District of New York approved a settlement between the RMLC and ASCAP concerning the fees payable covering the period January 1, 2010 through December 31, 2016. Included in the agreement is a $75.0 million industry fee credit against fees previously paid in 2010 and 2011, with such fees to be credited over the remaining period of the contract. The Company began recognizing the ASCAP credits as a reduction in direct operating expenses on January 1, 2012. In June 2012, the RMLC signed a term sheet detailing a proposed agreement with BMI that would result in a revenue-based agreement from the flat rate structure instituted in the 2003 contract. While the contract still requires federal court approval, it includes a $70.5 million industry fee refund for fees previously paid in 2010 and 2011, which, if the agreement is approved, is expected to be credited to stations in 2012. The Company has not recognized any credits related to BMI fees as of June 30, 2012.

The radio broadcast industry’s principal ratings service is Arbitron, which publishes surveys for domestic radio markets. Certain of the Company’s subsidiaries have agreements with Arbitron under which they receive programming ratings materials in a majority of their respective markets. The remaining aggregate obligation under the agreements with Arbitron was $72.9 million as of June 30, 2012 and is expected to be paid in accordance with the agreements through June 2016.

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.

Legal Proceedings

On January 21, 2010, a former employee of CMP Susquehanna Corp. (“CMPSC”) (which became a subsidiary of Cumulus upon completion of the CMP Acquisition on August 1, 2011) filed a purported class action lawsuit, pending in the United States District Court, Northern District of California, San Francisco Division (the “Court”), against CMPSC claiming (i) unlawful failure to pay required overtime wages; (ii) late pay and waiting time penalties; (iii) failure to provide accurate itemized wage statements; (iv) failure to indemnify for necessary expenses and losses; and (v) unfair trade practices under California’s Unfair Competition Act. On September 2, 2011, CMPSC and this former employee entered into a Joint Stipulation re: Settlement and Release of Class Action Claims (the “Settlement”) with respect to such lawsuit. The Settlement was preliminarily approved by the Court on February 6, 2012 and provides for the payment by CMPSC of a maximum of $0.9 million in full and final settlement of all of the claims made in the lawsuit. Final approval by the Court was obtained on July 13, 2012.

The Company is currently, and expects that from time to time in the future it will be, party to, or a defendant in, various 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 known claim or lawsuit will not have a material adverse effect on its consolidated financial position, results of operations or cash flows.