CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION

3 Months Ended

Mar. 31, 2024

CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION

The financial statements below represent the condensed combined financial statements of the Debtors. The results of the Company's non-debtor entity, Audacy Receivables, are not included in these condensed combined financial statements.

Intercompany transactions among the Debtors have been eliminated in the condensed combined Debtors' financial statements. Intercompany transactions between the Debtors and Audacy Receivables have not been eliminated in the Debtors' financial statements.

The Debtors' transfer of trade receivables to Audacy Receivables and receipt of receivable collections, net of collection costs are reflected as capital contributions and distributions through Investment in affiliates. The Debtors also earn a fee for servicing the contributed receivables from Audacy Receivables, and unpaid servicing fees are reflected in the Due from affiliates balance. The Debtor's loss on sale of receivables and income related to its servicing of receivables are reflected as Other income and expense with affiliates. The results of operations of the Debtors may not represent the actual results if operating on a stand-alone basis.

Debtors Balance Sheet

(amounts in thousands)

(unaudited)


	March 31, 2024		December 31, 2023
ASSETS:
Cash	$	96,546	$	59,989
Accounts receivable, net of allowance for doubtful accounts	13,384		13,918
Prepaid expenses, deposits and other	77,830		70,537
Due from affiliates	140		178
Total current assets	187,900		144,622
Investment in affiliates	145,252		184,868
Net property and equipment	279,359		284,681
Operating lease right-of-use assets	195,984		202,010
Radio broadcasting licenses	794,771		794,771
Goodwill	63,915		63,915
Assets held for sale	—		1,544
Software, net	122,918		129,128
Other assets, net of accumulated amortization	24,070		22,772
TOTAL ASSETS	$	1,814,169	$	1,828,311
LIABILITIES:
Accounts payable	$	6,214	$	21,742
Accrued expenses	69,237		73,040
Other current liabilities	46,934		131,031
Operating lease liabilities	39,206		37,631
Short-term borrowing	32,000
Long-term debt, current portion	—		1,849,518
Total current liabilities	193,591		2,112,962
Long-term debt	—		—
Operating lease liabilities, net of current portion	188,448		201,802
Deferred tax liabilities	97,452		101,937
Other long-term liabilities	21,930		23,508
Liabilities subject to compromise	1,931,787		—

SHAREHOLDERS' DEFICIT:
Equity (deficit)	(619,039)		(611,898)
Total shareholders' deficit	(619,039)		(611,898)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$	1,814,169	$	1,828,311

Debtors' Statement of Operations

(amounts in thousands)

(unaudited)


	Three Months Ended
	March 31,
	2024		2023
NET REVENUES	$	261,806	$	259,635
OPERATING EXPENSE:
Station operating expenses	232,492		233,927
Depreciation and amortization expense	21,910		17,442
Corporate general and administrative expenses	22,947		25,298
Restructuring charges	442		2,421
Impairment loss	156		5,050
Net gain on sale or disposal of assets	(15,804)		(12,404)
Other expenses	88		110
TOTAL OPERATING EXPENSES	262,231		271,844
OPERATING LOSS	(425)		(12,209)
Interest expense, net	3,500		30,889
Reorganization items. net	26,035		—
Other (income) expense	(20,885)		3,894


LOSS BEFORE INCOME TAXES	(9,075)		(46,992)
INCOME TAX BENEFIT	(4,485)		(8,689)
NET LOSS	$	(4,590)	$	(38,303)

Debtors' Statement of Cash Flows

(amounts in thousands)

(unaudited)


	Three Months Ended
	March 31,
	2024		2023
OPERATING ACTIVITIES:
Net cash used in operating activities	$	(63,057)	$	(65,624)

INVESTING ACTIVITIES:
Additions to property and equipment	(2,110)		(7,195)
Proceeds from sale of property, equipment, intangibles and other assets	14,395		16,866
Additions to software	(4,839)		(6,423)
Proceeds from sale of investment	25,489		—
Net cash provided by investing activities	32,935		3,248

FINANCING ACTIVITIES:
Borrowing DIP Facility	32,000		—
Payments of long-term debt	—		(10)

Payment for debt issuance costs associated with short-term borrowing	(2,081)		—
Purchase of vested employee restricted stock units	—		(127)
Payment of dividend equivalents on vested restricted stock units	—		(60)
Net distributions from investment in affiliates	36,760		50,322
Net cash provided by financing activities	66,679		50,125

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	36,557		(12,251)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR	59,989		88,989
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	96,546	$	76,738