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 March 31, 2016 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 333-197002 Townsquare Media, Inc. (Exact name of registrant as specified in its charter)
Delaware (State or other jurisdiction of incorporation or organization)	4832 (Primary Standard Industrial Classification Code Number)	27-1996555(I.R.S. Employer Identification No.)
240 Greenwich Avenue Greenwich, Connecticut 06830 (203) 861-0900(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices) __________________

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 ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ☒    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 definition of "accelerated filer," "large accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the ExchangeAct).    Yes ☐    No ☒

As of May 9, 2016, the registrant had 18,394,515 outstanding shares of common stock consisting of: (i)10,477,551 shares of Class A common stock, par value $0.01 per share; (ii) 3,022,484 shares of Class B common stock, par value $0.01 per share; and (iii) 4,894,480 shares of Class C common stock, par value $0.01 per share. The registrant also had 8,977,676 warrants to purchase Class A common stock outstanding as of that date.

TOWNSQUARE MEDIA, INC.

INDEX

PART I FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets as of December 31, 2015 and March 31, 2016	1
	Consolidated Statements of Operations for the three months ended March 31, 2015 and 2016	2
	Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2015 and 2016	3
	Consolidated Statement of Stockholders' Equity for the three months ended March 31, 2016	4
	Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2016	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	27
Item 4.	Controls and Procedures	29
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	30
	Signatures	31

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

TOWNSQUARE MEDIA, INC.

CONSOLIDATED BALANCE SHEETS

(in Thousands, Except Share and per Share Data)

(unaudited)

	December 31, 2015		March 31, 2016
ASSETS
Current assets:
Cash	$	33,298	$	30,820
Accounts receivable, net of allowance of $2,114 and $2,251, respectively	60,143		52,382
Prepaid expenses and other current assets	9,766		17,722
Total current assets	103,207		100,924
Property and equipment, net	133,943		135,210
Intangible assets, net	517,979		516,750
Goodwill	292,953		292,953
Investments	5,049		5,049
Other assets	7,580		7,450
Total assets	$	1,060,711	$	1,058,336
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	9,549	$	6,699
Current portion of long-term debt	171		173
Deferred revenue	17,496		24,195
Accrued expenses and other current liabilities	29,958		21,862
Accrued interest	4,910		9,763
Total current liabilities	62,084		62,692
Long-term debt, less current portion (net of deferred finance costs of $9,962 and $9,581, respectively)	588,657		588,314
Deferred tax liability	35,233		34,387
Other long-term liabilities	11,297		11,020
Total liabilities	697,271		696,413
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 300,000,000 shares authorized; 9,946,354 shares    issued and outstanding at December 31, 2015 and March 31, 2016, respectively	100		100
Class B common stock, par value $0.01 per share; 50,000,000 shares authorized; 3,022,484        shares issued and outstanding at December 31, 2015 and March 31, 2016, respectively	30		30
Class C common stock, par value $0.01 per share; 50,000,000 shares authorized; 4,894,480        shares issued and outstanding at both December 31, 2015 and March 31, 2016, respectively	49		49
Total common stock	179		179
Additional paid-in capital	361,186		361,438
Retained earnings (deficit)	1,391		(70		)
Accumulated other comprehensive income (loss)	44		(313		)
Non-controlling interest	640		689
Total liabilities and stockholders’ equity	$	1,060,711	$	1,058,336

See Notes to Unaudited Consolidated Financial Statements

1

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in Thousands, Except Per Share Data)

(unaudited)

	Three Months Ended   March 31,
	2015			2016
Net revenue	$	81,118		$	94,432
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	61,329			76,905
Depreciation and amortization	3,671			6,123
Corporate expenses	5,240			5,557
Stock-based compensation	—			252
Transaction costs	47			169
Net gain on sale of assets	(7		)	(366		)
Total operating costs and expenses	70,280			88,640
Operating income	10,838			5,792
Other expenses:
Interest expense, net	10,561			8,565
Other expense (income), net	48			(483		)
Income (loss) before income taxes	229			(2,290		)
Provision (benefit) for income taxes	98			(907		)
Net income (loss)	$	131		$	(1,383	)
Net income (loss) attributable to:
Controlling interests	$	96		$	(1,461	)
Non-controlling interests	35			78
Net income (loss) per share:
Basic	$	0.01		$	(0.08	)
Diluted	$	—		$	(0.08	)
Weighted average shares outstanding:
Basic	17,374			17,863
Diluted	33,767			17,863

See Notes to Unaudited Consolidated Financial Statements

2

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in Thousands)

(unaudited)

	Three Months Ended   March 31,
	2015		2016
Net income (loss)	$	131	$	(1,383	)
Foreign currency translation adjustments	—		(357		)
Comprehensive income (loss)	$	131	$	(1,740	)

See Notes to Unaudited Consolidated Financial Statements

3

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(in Thousands, except Share Data)

(unaudited)

	Shares of Common Stock
	Class A	Class B	Class C
	Shares	Shares	Shares	Warrants	Common Stock		Additional Paid-in Capital		Retained Earnings (Deficit)			Accumulated Other Comprehensive Income (Loss)			Non- Controlling Interest			Total
Balance at January 1, 2016	9,946,354	3,022,484	4,894,480	9,508,878	$	179	$	361,186	$	1,391		$	44		$	640		$	363,440
Net (loss) income	—	—	—	—	—		—		(1,461		)	—			78			(1,383		)
Stock-based compensation	—	—	—	—	—		252		—			—			—			252
Foreign currency exchange	—	—	—	—	—		—		—			(357		)	—			(357		)
Cash distributions to non-controlling interests	—	—	—	—	—		—		—			—			(29		)	(29		)
Balance at March 31, 2016	9,946,354	3,022,484	4,894,480	9,508,878	$	179	$	361,438	$	(70	)	$	(313	)	$	689		$	361,923

See Notes to Unaudited Consolidated Financial Statements

4

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Three Months Ended   March 31,
	2015			2016
Cash flows from operating activities:
Net income (loss) attributable to:
Controlling interests	$	96		$	(1,461	)
Non-controlling interests	35			78
Net income (loss)	$	131		$	(1,383	)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization	3,671			6,123
Amortization of deferred financing costs	575			380
Deferred income tax expense (benefit)	98			(907		)
(Recovery of) provision for doubtful accounts	(360		)	610
Stock-based compensation expense	—			252
Cancellation of debt	—			(34		)
Amortization of bond premium	(424		)	—
Net gain on sale of assets	(7		)	(366		)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	8,584			6,353
Prepaid expenses and other assets	(1,474		)	(7,332		)
Accounts payable	329			(2,871		)
Accrued expenses	(830		)	(1,460		)
Accrued interest	9,678			4,853
Other long-term liabilities	10			(277		)
Net cash provided by operating activities	19,981			3,941
Cash flows from investing activities:
Payments for acquisitions, net of cash received	(2,673		)	—
Acquisition of intangibles	(32		)	—
Purchase of property and equipment	(3,133		)	(6,496		)
Proceeds from insurance settlement	—			451
Proceeds from sale of assets	53			842
Net cash used in investing activities	(5,785		)	(5,203		)
Cash flows from financing activities:
Offering costs	(99		)	—
Repayment of long-term debt	(284		)	(646		)
Cash distributions to non-controlling interests	(23		)	(29		)
Repayments of capitalized obligations	(39		)	(42		)
Net cash used in financing activities	(445		)	(717		)
Net effect of foreign currency exchange rate changes	—			(499		)
Net increase (decrease) in cash	13,751			(2,478		)
Cash:
Beginning of period	24,462			33,298
End of period	$	38,213		$	30,820
Supplemental Disclosure of Cash Flow Information:
Cash payments:
Interest	$	719		$	3,323
Income taxes	182			435
Barter transactions:
Barter revenue – included in net revenue	$	2,992		$	4,217
Barter expense – included in direct operating expenses	2,874			3,080

See Notes to Unaudited Consolidated Financial Statements

5

TOWNSQUARE MEDIA, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Basis of Presentation

Description of the Business

Townsquare Media, Inc. is a media, entertainment and digital marketing solutions company principally focused on small and mid-sized markets across the United States. As of March 31, 2016, our assets included 309 radio stations and more than 325 local websites in 66 U.S. markets, approximately 550 live events with nearly 18 million annual attendees in the U.S. and Canada, a digital marketing solutions company serving approximately 8,700 small to medium sized businesses, and one of the largest digital advertising networks focused on music and entertainment reaching more than 60 million unique visitors each month. Our brands include local media assets such as WYRK, KLAQ, K2 and NJ101.5; music festivals such as Mountain Jam, WE Fest and Taste of Country Music Festival; touring lifestyle and entertainment events such as the America on Tap craft beer festival series, the Insane Inflatable 5K obstacle race series, and North American Midway Entertainment ("NAME"), North America’s largest mobile amusement company; and tastemaker music and entertainment owned and affiliated websites such as XXL.com, TasteofCountry.com, Loudwire.com,JustJared.com and BrooklynVegan.com. Funds managed by Oaktree Capital Management, L.P. ("Oaktree") are the Company’s largest equity holder.

2. Summary of Significant Accounting Policies

Except as stated below, there have been no significant changes in the Company’s accounting policies since December 31, 2015. For the Company's detailed accounting policies please refer to the consolidated financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 (the "2015 Annual Report on Form 10-K") filed with the Securities and Exchange Commission ("SEC") on February 26, 2016.

Foreign Currency

NAME, acquired by a subsidiary of the Company on September 1, 2015, conducts a portion of its business in Canada. Results of operations for our Canadian entity are translated into U.S. dollars using the average exchange rates during the period.  The assets and liabilities of our Canadian entity are translated into U.S. dollars using the exchange rates at the balance sheet date.  The related translation adjustments are recorded in a separate component of stockholders' equity, “Accumulated other comprehensive income”.  Foreign currency transaction gains and losses are included in operations in other expense (income), net.

Recently Issued Accounting Standards

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases. ASU 2016-02 requires the lessee to recognize in the statement of financial position a liability to make lease payments, and a right-of-use asset representing its right to use the underlying asset for the lease term. The liability and asset are initially measured at the present value of the lease payments. The ASU applies to all leases, including those previously classified as operating leases under ASC Topic 842. The standard is effective for fiscal years beginning after December 15, 2018, and will require measurement of leases at the beginning of the earliest period presented, using a modified retrospective approach. The Company is currently assessing the potential impact ASU 2016-02 will have on its financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for annual reporting

6

periods beginning after December 15, 2016, including interim periods within those annual reporting periods. The Company is currently assessing the potential impact ASU 2016-09 will have on its financial statements.

In March 2016, the FASB issued ASU 2016-08, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), which amends the principal-versus agent implementation guidance and illustrations in the Board’s new revenue standard (ASU 2014-09, Revenue From Contracts With Customers). FASB issued the ASU in response to concerns identified by stakeholders, including those related to (i) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance and (ii) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. Among other things, the ASU clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. As defined in the ASU, a specified good or service is "a distinct good or service (or a distinct bundle of goods or services) to be provided to the customer." Therefore, for contracts involving more than one specified good or service, the entity may be the principal for one or more specified goods or services and the agent for others. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The Company is currently assessing the potential impact ASU 2016-08 will have on its financial statements.

3. Interim Financial Data

The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes thereto included in the Company's 2015 Annual Report on Form 10-K. The accompanying unaudited interim consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries, with all significant intercompany balances and transactions eliminated in consolidation. These financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by U.S. 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 included. The results of operations and cash flows for the three months ended March 31, 2016 and the Company’s financial condition as of such date 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, 2016. The consolidated balance sheet as of December 31, 2015 is derived from the audited financial statements at that date.     

Our net revenue varies throughout the year. We expect that our first calendar quarter will produce the lowest net revenue for the year, as advertising expenditures generally decline following the winter holidays, and the second and third calendar quarters will generally produce the highest net revenue for the year. In addition to advertising revenue seasonality, our Live Events net revenue exhibits seasonality resulting in the third quarter being the highest revenue period, followed by the second, then fourth, then first quarter. Large drivers of this seasonality are our summertime multi-day festivals, and NAME's revenue which is concentrated in the third quarter. During even-numbered years, net revenue generally includes increased advertising expenditures by political candidates, political parties and special interest groups. Political spending is typically highest during the fourth quarter. 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 net

revenue generation until future periods, if at all.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its significant estimates, including those related to bad debts, intangible assets, income taxes, contingencies 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 result 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.

7

4. Significant Acquisitions

NAME Acquisition: On September 1, 2015, the Company, through a subsidiary of Townsquare Live Events, LLC, purchased all of the issued and outstanding membership interests of Heartland Group, LLC and its wholly-owned subsidiary NAME for approximately $70.0 million in cash, 481,948 unregistered shares of the Company's Class A common stock valued at $4.9 million, and a working capital adjustment of $0.4 million. Cash consideration was satisfied from cash on hand, $45.0 million of incremental term loan borrowings and a working capital adjustment of approximately $0.4 million. The Company estimated the fair value of acquired intangibles using the discounted cash flow method. The purchase price was allocated to the tangible and intangible assets and liabilities at their fair value at the date of acquisition, with any excess of the purchase price over the net assets acquired being reported as goodwill. The Company expects none of this goodwill to be deductible for tax purposes. The Company has recognized an opening deferred tax liability in connection with the acquisition of NAME, as the initial tax basis of the acquired assets differ from their initial basis under GAAP, which reflects estimated fair market value.

The NAME purchase price allocation is shown in the following table.

	(in thousands)
Current assets	$	5,148
Customer relationships	8,700
Trade name	4,600
Other intangibles	1,000
Property and equipment	42,894
Goodwill	39,866
Non-controlling interest	(225		)
Accounts payable and accrued expenses	(9,586		)
Deferred tax liabilities	(17,035		)
Total purchase price	$	75,362

Pro-Forma Results: The following table illustrates the unaudited pro-forma information reflecting net revenue and net loss for the three months ended March 31, 2015 as if the acquisition of NAME had occurred on January 1, 2015. The unaudited pro-forma amounts are for informational purposes only and do not purport to represent what the Company’s actual results of operations would have been if the aforementioned acquisition had been completed as of January 1, 2015 or any other historical date, nor is it reflective of the Company’s expected actual results of operations for any future periods.

	(in thousands)
	Three Months Ended   March 31,
	2015
Net revenue	$	88,852
Net loss	(4,205		)

5. Investments

Long-term investments consist of minority holdings in companies that management believes are synergistic with Townsquare. Management does not exercise significant control over operating and financial policies of the investees, accordingly the investments are reflected under the cost method of accounting. The initial equity valuations were based upon a discounted cash flows analysis, using unobservable inputs categorized as Level 3 within the Accounting Standards Codification Section 820 framework. It is impracticable to obtain these Level 3 inputs as of the reporting date, accordingly a current market valuation has not been performed. Since the initial valuations, however, there have been no identified events or changes in circumstances that we believe would have a significant adverse effect on the fair value of these investments.

8

6. Property and Equipment

Property and equipment consisted of the following:

	(in thousands)
	December 31, 2015			March 31, 2016
Land and improvements	$	20,329		$	19,956
Buildings and leasehold improvements	32,997			33,559
Broadcast equipment	70,656			71,453
Rides and related equipment	40,369			41,309
Computer and office equipment	10,742			11,067
Furniture and fixtures	7,428			8,679
Transportation equipment	11,543			13,000
Software development costs	17,571			18,746
	211,635			217,769
Less: Accumulated depreciation and amortization	(77,692		)	(82,559		)
Property and equipment, net	$	133,943		$	135,210

Depreciation and amortization expense for property and equipment was $3.1 million and $4.9 million for the three months ended March 31, 2015 and 2016, respectively.

In September 2015, the Company closed on the sale of 43 towers located on 41 sites in 28 markets to a subsidiary of Vertical Bridge, LLC ("Vertical Bridge") (the "Tower Sale"). The divested towers house antenna that broadcast certain of the Company’s radio stations. The Company also entered into an agreement with Vertical Bridge whereby Vertical Bridge will serve as the exclusive marketing agent for the over 282 towers retained by the Company. The Company received total cash proceeds of $21.6 million, net of closing adjustments, in exchange for the sale of the towers and the exclusive marketing arrangement. In addition, the Company has leased a portion of the space on the sold towers that house certain of the Company's antenna. The lease is for a period of 35 years, including an initial term of twenty years and three optional five-year renewal periods. The Company will pay $41 of rent per annum ($1 per site per annum) to Vertical Bridge for the right to house its existing antenna on the divested towers.

The Company has determined that the relative fair value of the towers sold and the exclusive marketing arrangement were $25.8 million and $3.1 million, respectively. The following was recognized in the Company's consolidated balance sheet in connection with this transaction with Vertical Bridge:

($ in thousands)	Fair Value		Balance Sheet Location
Long-term prepaid rent asset	$	7,311	Other long term assets
Deferred gain on the sale of towers	$	7,311	Other long term liabilities
Exclusive marketing arrangement	$	3,111	Other long term liabilities

The Company realized an $11.5 million gain in connection with the sale of these towers during the third quarter of 2015, which was included in net gain on sale in the Company's consolidated statements of operations. In addition, the Company determined that the lease is an operating lease and is amortizing the long-term prepaid rent asset and deferred gain on the sale of towers as offsetting amounts over the lease term. The exclusive marketing arrangement is being amortized through net revenue over the five-year term of the arrangement in the Company's consolidated statements of operations.

7. Goodwill and Other Intangible Assets

Indefinite-lived assets consist of FCC broadcast licenses and goodwill. FCC licenses represent a substantial portion of the Company’s total assets. The FCC licenses are renewable in the ordinary course of business, generally for a maximum of eight years. The fair value of FCC licenses is primarily dependent on the future cash flows of the radio markets and other assumptions, including, but not limited to, forecasted revenue growth rates, profit margins and a risk-adjusted discount rate.

9

The Company has selected December 31st as the annual valuation date. Based on the results of the Company’s 2015 annual impairment evaluations, the Company recorded impairment charges aggregating $1.7 million pertaining to FCC licenses in our Quad Cities and Grand Junction markets. All other fair values of the Company’s intangibles exceeded their carrying value, therefore, no impairment of these assets had occurred as of the date of the annual tests. If market conditions and operational performance of the Company’s reporting units were to deteriorate and management had no expectation that the performance would improve within a reasonable period of time or if an event occurs or circumstances change that would reduce the fair value of its goodwill and intangible assets below the amounts reflected in the balance sheet, the Company may be required to recognize additional impairment charges in future periods.

There were no changes to goodwill for the three months ended March 31, 2016.

Intangible assets consist of the following:

		(in thousands)
	Estimated Useful Life	December 31, 2015		March 31, 2016
Intangible Assets:
FCC licenses	Indefinite	$	486,229	$	486,229
Trademarks and trade names	Indefinite	4,600		4,600
Customer and advertising relationships	10 years	14,317		14,317
Customer relationships	15 years	8,700		8,700
Leasehold interests	5 to 39 years	1,085		1,085
Tower space	3 to 9 years	454		454
Sports broadcast rights	1 to 2 years	665		665
Non-compete agreements	1 to 2 years	243		243
Trademark	15 years	11,258		11,258
Permits/licenses	1 year	1,000		1,000
Other intangibles	3 years	980		980
Total		529,531		529,531
Less: Accumulated amortization		(11,552)		(12,781		)
Net amount		$	517,979	$	516,750

Amortization expense for definite-lived intangible assets was $0.6 million and $1.2 million for the three months ended March 31, 2015 and 2016, respectively.

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of March 31, 2016 is as follows:

	(in thousands)
2016 (remainder)	$	2,775
2017	2,987
2018	2,138
2019	2,015
2020	2,009
Thereafter	13,997
	$	25,921

10

8. Long-Term Debt

Long-term debt consisted of the following:

	(in thousands)
	December 31, 2015			March 31, 2016
2023 Notes	$	300,000		$	299,320
Term Loans	298,512			298,512
Capitalized obligations	278			236
Long-term debt before deferred financing costs	598,790			598,068
Deferred financing costs	(9,962		)	(9,581		)
	588,828			588,487
Less: current portion of long-term debt	(171		)	(173		)
	$	588,657		$	588,314

On April 1, 2015, the Company issued $300.0 million of 6.5% Unsecured Senior Notes due in 2023 (the "2023 Notes") and a Senior Secured Credit Facility, which includes a seven year, $275.0 million term loan facility (the "Term Loans") and a five year, $50.0 million revolving credit facility (the "Revolver"). Borrowings are guaranteed by each of the Company’s direct and indirect subsidiaries, and subject to certain exceptions, are secured by substantially all of the tangible and intangible assets of the Company and its subsidiaries. The proceeds from the 2023 Notes and Term Loans were used to repay substantially all of our previous long-term borrowings.

On September 1, 2015, the Company issued incremental term loans of $45.0 million under the Senior Secured Credit Facility, the proceeds of which were used to partially fund the purchase price of NAME. Further, on September 30, 2015, the Company made a $20.0 million voluntary prepayment of borrowings under the Term Loans. The Company recognized a loss of $0.3 million on the write-off of unamortized deferred financing costs in connection with this voluntary prepayment in the third quarter of 2015.

On March 24, 2016, the Company voluntarily repurchased $0.7 million of its 2023 Notes at a market price of 95% of par, plus accrued interest. The repurchased notes were canceled by the Company. A gain of $34 thousand is included in other expense (income), net in the Company's consolidated statements of operations for the three months ended March 31, 2016.

At March 31, 2016, the Term Loans continued to bear interest at an initial interest rate of 4.25% (based on current LIBOR levels, a 1.00% LIBOR floor and an applicable margin of 325 basis points). The Revolver has an interest rate based either on LIBOR and an applicable margin of 250 basis points, or an alternative base rate and an applicable margin of 150 basis points. As of March 31, 2016, the Company had no outstanding borrowings under the Revolver.

The 2023 Notes mature on April 1, 2023, with interest payable on April 1 and October 1 of each year. Prior to maturity, the Company may redeem all or part of the 2023 Notes at specified redemption premiums as set forth in the indenture, together with any accrued and unpaid interest thereon. Additionally, if the Company experiences certain change of control events, holders of the 2023 Notes may require the Company to repurchase all or part of their notes at 101% of the principal amount thereof.

The 2023 Notes rank equally with all of the Company's existing and future senior debt, are senior to all of the Company's existing and future subordinated debt, and are guaranteed on a senior basis by certain of the Company’s direct and indirect wholly-owned subsidiaries.

The 2023 Notes indenture contains restrictive covenants that limit the ability of the Company and its subsidiaries to, among other things, incur additional debt or issue preferred stock; create liens; create restrictions on the Company’s subsidiaries’ ability to make payments to the Company; pay dividends and make other distributions in respect of the Company’s and its subsidiaries’ capital stock; make certain investments or certain other restricted

11

payments; guarantee indebtedness; designate unrestricted subsidiaries; sell certain kinds of assets; enter into certain types of transactions with affiliates; and effect mergers and consolidations.

The Term Loans mature on April 1, 2022, and the Revolver matures on April 1, 2020. Borrowings under the Senior Secured Credit Facility are subject to mandatory prepayments equal to the net proceeds to the Company of any additional debt issuances or asset sales, as well as half of annual excess cash flow as defined (subject to certain reductions). Borrowings are guaranteed by each of the Company’s direct and indirect subsidiaries, and subject to certain exceptions, are secured by substantially all of the tangible and intangible assets of the Company and its subsidiaries.

The Senior Secured Credit Facility contains covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness or liens; engage in mergers or other fundamental changes; sell certain property or assets; pay dividends or other distributions; make acquisitions, investments, loans and advances; prepay certain indebtedness including the 2023 Notes; change the nature of its business; engage in certain transactions with affiliates and incur restrictions on interactions between the Company and its subsidiaries, or limit actions in relation to the Senior Secured Credit Facility.

The Company is in compliance with its covenants under the 2023 Notes and Senior Secured Credit Facility as of March 31, 2016.

As of March 31, 2016, based on available market information, the estimated fair values of the 2023 Notes and the Term Loans were $287.1 million and $295.2 million, respectively.

Annual maturities of the Company's long-term debt as of March 31, 2016 are as follows:

	(in thousands)
2016 (remainder)	$	130
2017	91
2018	5
2019	5
2020	5
Thereafter	597,832
	$	598,068

9. Stockholders' Equity

The table below presents a summary, as of March 31, 2016, of our authorized and outstanding common stock, and securities convertible into common stock, excluding options issued under our 2014 Omnibus Incentive Plan.

Security1	Par Value Per Share		Number Authorized	Number Outstanding	Description
Class A common stock	$	0.01	300,000,000	9,946,354	One vote per share.
Class B common stock	$	0.01	50,000,000	3,022,484	10 votes per share.2
Class C common stock	$	0.01	50,000,000	4,894,480	No votes.2
Warrants				9,508,878	Each warrant is exercisable for one share of Class A common stock, at an exercise price of $0.0001 per share. The aggregate exercise price for all warrants currently outstanding is $951.3
Total			400,000,000	27,372,196
1 Each of the shares of common stock, including the shares of Class A common stock issuable upon exercise of the warrants, have equal economic rights.
2 Each share converts into one share of Class A common stock upon transfer or at the option of the holder, subject to certain conditions, including compliance with FCC rules.
3 The warrants are fully vested and exercisable for shares of Class A common stock, subject to certain conditions, including compliance with FCC rules.

12

The foregoing share totals exclude 4,260,478 of Class A common stock and 4,511,236 of Class B common stock issuable upon exercise of stock options, which options have an exercise price of between $8.96 and $13.02 per share. Additionally, the Company is authorized to issue 50,000,000 shares of undesignated preferred stock.

On April 6, 2016, we issued 531,197 shares of Class A common stock upon the exercise of outstanding warrants. 

The Company's common stock is not entitled to preemptive or other similar subscription rights to purchase any of our securities. Unless the Company's Board of Directors determines otherwise, we will issue all of our capital stock in uncertificated form.

Stock-based Compensation    

The Company's 2014 Omnibus Incentive Plan (the "2014 Incentive Plan") provides grants of stock options, stock appreciation rights, restricted stock, other stock-based awards and other cash-based awards. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting or advisory services for the Company, are eligible for grants under the 2014 Incentive Plan. The purpose of the 2014 Incentive Plan is to provide incentives that will attract, retain and motivate high performing officers, directors, employees and consultants by providing them with appropriate incentives and rewards either through a proprietary interest in our long-term success or compensation based on their performance in fulfilling their personal responsibilities. The aggregate number of shares of common stock which may be issued or used for reference purposes under the 2014 Incentive Plan or with respect to which awards may be granted may not exceed 12,000,000 shares. As of March 31, 2016, 3,235,450 shares were available for grant.

The grant date fair value of the equity options granted is estimated using the Black-Scholes option pricing model, which requires estimates of the expected term of the option, the expected volatility of the Company's common stock price, dividend yield and the risk-free rate. The below table summarizes the assumptions used to estimate the fair value of the equity options granted for the three months ended March 31, 2016.

Expected volatility	30.0	%
Expected term	4.25 - 6.33 years
Risk free interest rate	1.4% - 1.7%
Expected dividend yield	0.0	%

With the exception of the options that were granted to employees in the first quarter of 2016, the options provide for immediate vesting and the options have an exercise price of between $8.96 and $13.02 per share. The expected term was calculated using the simplified method, defined as the midpoint between the vesting period and the contractual term of each award. The expected volatility was based on market conditions of the Company and comparable companies. The risk free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the option. The Company historically has not paid dividends and therefore did not utilize a dividend yield in the calculations.

The following table summarizes stock option activity for the three months ended March 31, 2015:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2014	6,924,903		$	11.00
Granted	—		—
Exercised	—		—
Forfeited	(40,412	)	11.00
Outstanding at March 31, 2015	6,884,491		$	11.00	9.29	$	12,716,058

13

The following table summarizes stock option activity for the three months ended March 31, 2016:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2015	7,329,334		$	11.20
Granted	1,600,000		8.96
Exercised	—		—
Forfeited	(157,620	)	11.00
Outstanding at March 31, 2016	8,771,714		$	10.96	7.8	$	4,930,165

Of the 1,600,000 options granted during the three months ended March 31, 2016, 1,565,000 were granted to employees and 35,000 were granted to directors of the Company. The weighted average grant date fair value of stock options granted was $2.38 and $2.98 for options granted to employees and directors of the Company, respectively. The options granted to directors provide for immediate vesting, whereas the options granted to employees have a five-year term with 50% vesting in year three and 50% vesting in year four. For the three months ended March 31, 2016, the Company recognized $0.3 million, respectively, of stock-based compensation expense with respect to the options granted. As of March 31, 2016, total unrecognized stock-based compensation expense is $3.1 million to be recognized over four years.

There was no restricted stock activity during the three months ended March 31, 2015 or 2016.

The Company has issued stock to employees and independent directors. The shares are subject to a Selldown Agreement, pursuant to which the FiveWire Media Ventures LLC ("FiveWire") (an entity formed for the purpose of investing in the Company by certain members of management, including Steven Price, Stuart Rosenstein, Dhruv Prasad, Scott Schatz and certain other individuals (together, the "FiveWire Holders")) and certain other members of management are subject to certain restrictions on sales of the Company's common stock held by them. Pursuant to the terms of the Selldown Agreement, the FiveWire Holders and certain other members of management are generally restricted from transferring a specified percentage (which is expected to range between 50% and 100%) of the shares of the Company's common stock held by them at the closing of the July 24, 2014 initial public offering (the "IPO"). If Oaktree sells a portion of the shares of common stock or warrants to purchase common stock that it holds (the percentage of shares and warrants, collectively, held by Oaktree at such time that it sells in such a transaction, referred to as the "Sale Percentage"), those subject to the Selldown Agreement will be permitted to sell a percentage of the shares of common stock and warrants held by them, up to an amount equal to the Sale Percentage. The Selldown Agreement will terminate on the earlier of (i) the date that Oaktree no longer holds at least 10% of the shares of common stock and warrants exercisable for common stock, collectively, held by Oaktree immediately following closing of the IPO, and (ii) the third anniversary of the closing of the IPO.

10. Income Taxes

The Company's effective tax rate for the three months ended March 31,2015 and 2016 was approximately 42.8% and 39.6%, respectively. The effective tax rate may vary significantly from period to period, and can be influenced by many factors.  These factors include, but are not limited to, changes to the statutory rates in the jurisdictions where the Company has operations and changes in the valuation of deferred tax assets and liabilities.  The difference between the effective tax rate and the federal statutory rate of 35% for the three months ended March 31, 2016 primarily relates to state, local and foreign income taxes.

14

11. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	(in thousands)
	December 31, 2015		March 31, 2016
Accrued compensation and benefits	$	14,157	$	6,644
Accrued professional fees	935		1,099
Accrued commissions	2,252		2,277
Accrued taxes	2,786		2,339
Accrued music and FCC licensing	1,103		1,096
Accrued publisher fees	1,088		850
Accrued national representation fees	1,060		891
Due to sellers, business combinations	2,286		1,015
Deferred rent	1,295		1,252
Accrued other	2,996		4,399
	$	29,958	$	21,862

12. Lease and Other Commitments

Operating Leases: The Company leases certain facilities and equipment used in its operations. Certain of the Company’s operating leases contain renewal options through 2062, escalating rent provisions and/or cost of living adjustments. Total rental expense was approximately $4.0 million and $4.8 million for the three months ended March 31, 2015 and 2016, respectively. Total rental expense includes costs incurred for live events such as venue and equipment rentals.

At March 31, 2016, the total minimum annual rental commitments under non-cancelable operating leases are as follows:

	(in thousands)
2016 (remainder)	$	7,393
2017	8,939
2018	7,688
2019	6,692
2020	4,969
Thereafter	15,521
Total minimum payments	$	51,202

In January 2016, the Company signed a lease for office space in Charlotte, North Carolina, for use by its digital marketing solutions operation. The lease commenced on March 1, 2016, and has a ten year term. Initially 28,000 square feet will be leased, increasing to 51,288 square feet by year four. The annual minimum rental commitment aggregates $0.3 million at commencement of the lease, escalating to $1.3 million by year ten.

Other Commitments: The radio broadcast industry’s principal ratings service is Nielsen Holdings N.V. ("Nielsen"), which publishes surveys for domestic radio markets. The Company’s remaining aggregate obligation under the agreements with Nielsen as of March 31, 2016 is approximately $11.2 million and is expected to be paid in accordance with the agreements through October 2018.

We normally commit one or more years in advance to provide rides, games and concessions at certain fairs. These agreements include an obligation to pay event fees, which may be expressed as a flat fee or as a percentage of revenues. At March 31, 2016, our total minimum fee commitments for contracts with a remaining term in excess of one year are as follows:

15

	(in thousands)
2016 (remainder)	$	2,651
2017	3,531
2018	3,215
2019	1,920
2020	1,062
Thereafter	2,821
Total minimum payments	$	15,200

13. Segment Reporting

The Company has two reportable segments, Local Advertising, which provides advertising via broadcast and digital delivery within our local markets, and Live Events, which is composed of a diverse range of live events, which we create, promote and produce, including music concerts, multi-day music festivals, fairs, consumer expositions and trade shows, athletic events, lifestyle events and other forms of entertainment. The Company reports the remainder of its business in its Other Media and Entertainment category, which principally provide digital marketing solutions, e-commerce solutions and digital advertising services nationally. The following disclosures are consistent with the management decision-making process that determines the allocation of resources and measurement of performance.

The following table presents the Company’s reportable segment results for the three months ended March 31, 2015:

	(in thousands)
	Local Advertising		Live Events		Other Media & Entertainment		Corporate and other reconciling items			Consolidated
Three Months Ended March 31, 2015
Net revenue	$	65,053	$	8,166	$	7,899	$	—		$	81,118
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	46,202		7,572		7,555		—			61,329
Depreciation and amortization	2,796		223		219		433			3,671
Corporate expenses	—		—		—		5,240			5,240
Transaction costs	—		—		—		47			47
Net gain on sale of assets	—		—		—		(7		)	(7		)
Operating income (loss)	$	16,055	$	371	$	125	$	(5,713	)	$	10,838
Capital expenditures	$	681	$	705	$	1,353	$	394		$	3,133

16

The following table presents the Company’s reportable segment results for the three months ended March 31, 2016:

	(in thousands)
	Local Advertising		Live Events			Other Media & Entertainment		Corporate and other reconciling items			Consolidated
Three Months Ended March 31, 2016
Net revenue	$	67,915	$	15,546		$	10,971	$	—		$	94,432
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	48,236		18,787			9,882		—			76,905
Depreciation and amortization	2,688		2,145			182		1,108			6,123
Corporate expenses	—		—			—		5,557			5,557
Stock-based compensation	21		20			8		203			252
Transaction costs	—		—			—		169			169
Net gain on sale of assets	—		—			—		(366		)	(366		)
Operating income (loss)	$	16,970	$	(5,406	)	$	899	$	(6,671	)	$	5,792
Capital expenditures	$	1,030	$	3,138		$	1,379	$	949		$	6,496

NAME, acquired by a subsidiary of the Company on September 1, 2015, conducts a portion of its business in Canada. Consolidated revenue for the three months ended March 31, 2016 includes $83 thousand of Canadian revenue, and long-lived assets located in Canada aggregated $3.9 million as of March 31, 2016.

Note 14. Net Income (Loss) Per Common Share

The following table sets forth the computations of basic and diluted net income (loss) per share for the three months ended March 31, 2015 and 2016.

	(in thousands, except per share data)
	Three Months Ended   March 31,
	2015		2016
Numerator:
Net income (loss)	$	131	$	(1,383	)
Denominator:
Weighted average shares of common stock outstanding	17,374		17,863
Effect of dilutive common stock equivalents	16,393		—
Weighted average diluted common shares outstanding	33,767		17,863
Net income (loss) per share:
Basic	$	0.01	$	(0.08	)
Diluted	$	—	$	(0.08	)

The Company excluded 9,508,787 warrants and 202,036 options from the calculation of net loss per share for the three months ended March 31, 2016 as they were considered anti-dilutive.

17

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

The following management’s discussion and analysis is intended to provide the reader with an overall understanding of our financial condition, results of operations, cash flows and sources and uses of cash. This section also includes general information about our business and a discussion of our management’s analysis of certain trends, risks and opportunities in our industry. In addition, we also provide a discussion of accounting policies that require critical judgments and estimates as well as discuss certain risks and uncertainties that could cause our actual future results to differ materially from our historical results or our current expectations. This discussion should be read in conjunction with our unaudited consolidated financial statements and related notes appearing elsewhere in this quarterly report. The following discussion contains forward-looking statements that involve numerous risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements as a result of these risks and uncertainties, including those set forth in this quarterly report.

Note About Forward-Looking Statements

This report includes estimates, projections, statements relating to our business plans, objectives and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act. Forward-looking statements often discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “believe,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by us include the impact of general economic conditions, industry conditions, including existing competition and future competitive technologies, the popularity of radio as a broadcasting and advertising medium, cancellations, disruptions or postponements of advertising schedules in response to national or world events, our dependence on key personnel, our capital expenditure requirements, our continued ability to identify suitable acquisition targets, and consummate and integrate any future acquisitions, legislative or regulatory requirements, and other factors mentioned in this section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report and under “Risk Factors” in our 2015 Annual Report on Form 10-K, as well as other risks discussed from time to time in our filings with the SEC. Many of these factors are beyond our ability to predict or control. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. The cautionary statements referred to in this section also should be considered in connection with any subsequent written or oral forward-looking statements that may be issued by us or persons acting on our behalf. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Format of Presentation

Townsquare is a media, entertainment and digital marketing solutions company, principally focused on small and mid-sized markets across the United States. Our assets include market leading radio stations, live events, and digital, mobile, video and social media properties. Our integrated and diversified product and service offerings, which we refer to as Townsquare Everywhere, enable local, regional and national advertisers to target audience engagement across multiple platforms, including on-air, online and at live events. We believe our Townsquare Everywhere capabilities, combined with our leading market position in small and mid-sized markets, enable us to generate higher total net revenue per audience member than radio station owners focused on larger markets.

Our discussion is presented on both a consolidated and segment basis. We have two reportable operating segments, which are Local Advertising and Live Events, and report the remainder of our business in an Other Media and Entertainment category. Our Local Advertising segment offers broadcast, digital and mobile advertising within our

18

local markets. Our Live Events segment is composed of a diverse range of live events, which we create, promote and produce, including music concerts, multi-day music festivals, fairs, consumer expositions and trade shows, athletic events, lifestyle events and other forms of entertainment. Other Media and Entertainment is primarily composed of our digital marketing solutions offering, national digital assets and e-commerce offering and also includes tower and other miscellaneous revenue.

Local Advertising

Our Local Advertising segment is composed of 309 owned and operated radio stations and over 325 owned and operated local websites serving 66 small and mid-sized markets. Almost all of our radio stations have local companion websites that utilize the station brands and are populated with proprietary, original content created or curated by our local media personalities.

Our primary source of Local Advertising net revenue is the sale of advertising and sponsorship on our radio stations, local companion websites, radio stations’ online streams and mobile applications. Our sales of advertisements and sponsorship are primarily affected by the demand for advertising from local, regional and national advertisers and the advertising rates we charge. Advertising demand and rates are based primarily on our ability to attract audiences to our various products in the demographic groups targeted by advertisers, as measured principally by various services on a periodic basis. We endeavor to develop strong audience loyalty and believe that the diversification of formats on our radio stations and websites helps to insulate our radio stations and websites from the effects of changes in musical tastes of the public with respect to any particular format. We believe that the sale of our online and mobile advertisements, which currently have rates per advertisement that are less than those of terrestrial radio advertisements, has not negatively impacted our terrestrial radio advertising net revenue. Should a significant and sudden shift in demand for these products toward online and mobile occur, there could be a material adverse impact on our financial condition and results of operations if we are unable to increase rates accordingly. We believe that as a result of our strong brands and quality online and mobile offerings we are well positioned to increase rates as demand increases for these products.

We strive to maximize net revenue by managing our advertising inventory time and adjusting prices up or down based on supply and demand. Our selling and pricing activity is based on demand for our advertising inventory and, in general, we respond to this demand by varying prices rather than by varying our target inventory levels. The optimal number of advertisements available for sale depends on the platform and in the case of our radio stations and their online streams, the programming format of a particular radio station. Each of our products has a general target level of inventory available for advertising.

We seek to broaden our base of advertisers in each of our markets by providing a wide array of audience demographic segments across our platforms, thereby providing each of our potential advertisers with an effective means of reaching a targeted demographic group.

Our Local Advertising contracts are generally short-term. In the media industry, companies sometimes utilize barter agreements that exchange advertising time for goods or services such as travel or lodging, instead of cash. Barter revenue was $3.0 million and $4.2 million and barter expense was $2.9 million and $3.1 million for the three months ended March 31, 2015 and 2016, respectively. The majority of barter revenue and expense falls within our Local Advertising segment.

Our most significant Local Advertising expenses are sales, programming, digital, marketing and promotional, engineering and general and administrative expenses. We strive to control these expenses by closely monitoring and managing each Local Advertising market and through efficiencies gained from the centralization of finance, accounting, legal and human resources functions and management information systems. We also use our scale and diversified geographic portfolio to negotiate favorable rates with vendors, where feasible.

A portion of our Local Advertising segment’s expenses are variable. These variable expenses primarily relate to sales costs, such as commissions as well as certain programming costs, such as music license fees. Other programming, digital, engineering and general and administrative expenses are primarily fixed costs. Marketing and promotions expenses are discretionary and are primarily incurred in an effort to maintain and/or increase our audience share.

19

Live Events

Our primary source of Live Events net revenue is from ticket sales. Our live events also generate substantial net revenue through the sale of sponsorships, ride tickets, food and other concessions, merchandise and other ancillary products and services. Live event ticket pricing is based on consumer demand for each event and the geographic location and target audience demographic of each event. Unforeseen events such as inclement weather conditions can have an adverse impact on our Live Event net revenue. In certain cases, we mitigate this risk with insurance policies, which cover a portion of lost revenue as a result of unforeseen events including inclement weather.

Certain expenses attributable to the live events business are variable, including sponsorship sales commissions, certain costs related to production and certain revenue sharing agreements with partners. A portion of our revenue and expenses, related to some of our North American Midway Entertainment, Inc. ("NAME") operations, are denominated in Canadian dollars and expose us to translational foreign currency risk. We have not historically hedged our exposure to this risk.

Other Media and Entertainment

The Other Media and Entertainment business is primarily composed of our digital marketing solutions offering, national digital assets and e-commerce offering and also includes other miscellaneous revenue. These assets extend our audience and advertiser reach into and beyond our Local Advertising markets.

Our primary source of Other Media and Entertainment net revenue is from national digital advertising and digital marketing solutions. Demand for national digital advertising is primarily for display advertisements. Our national digital assets are subject to general advertising trends as well as advertisers’ perception and demand for our products. A downturn in advertising spending or the economy could have an adverse effect on this net revenue. We believe this risk is mitigated by the subscription nature of our digital marketing solutions as well as the level of investment in our advertising products, services and brands.

Other sources of revenue within our Other Media and Entertainment business include tower and other miscellaneous revenue. We generate revenue from leasing space on our own tower facilities sold generally to communications companies and local authorities, as well as from other miscellaneous revenue sources. As a result of the September 1, 2015 sale of 43 towers (see Note 6 of the Notes to unaudited Consolidated Financial Statements), tower lease revenue is no longer a significant contributor to other revenue.

A portion of the expenses attributable to the Other Media and Entertainment business is variable. These variable expenses primarily relate to sales costs, such as commissions. Certain technology infrastructure related to our digital marketing solutions, national digital assets and e-commerce business are generally fixed costs in nature.

Seasonality

Our net revenue varies throughout the year. We expect that our first calendar quarter will produce the lowest net revenue for the year, as advertising expenditures generally decline following the winter holidays, and the second and third calendar quarters will generally produce the highest net revenue for the year. In addition to advertising revenue seasonality, our Live Events net revenue exhibits seasonality resulting in the third quarter being the highest revenue period, followed by the second, then fourth, then first quarter. Large drivers of this seasonality are our summertime multi-day festivals, and NAME's revenue which is concentrated in the third quarter. During even-numbered years, net revenue generally includes increased advertising expenditures by political candidates, political parties and special interest groups. Political spending is typically highest during the fourth quarter. 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 net revenue generation until future periods, if at all.

20

Macroeconomic Indicators

Our advertising revenue for our businesses may be highly correlated to changes in gross domestic product (“GDP”), as advertising spending has historically trended in line with, and in our experience often lags, changes in GDP. According to the U.S. Department of Commerce estimate as of April 28, 2016, U.S. GDP grew at an annual rate of 0.5% in the first quarter of 2016.

Emerging Growth Company

The Company is an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, and exemptions from the requirements of Sections 14A(a) and (b) of the Securities Exchange Act to hold a nonbinding advisory vote of stockholders on executive compensation and any golden parachute payments not previously approved.

Executive Summary

The key developments in our business for the three months ended March 31, 2016, as compared to the same period in 2015 are summarized below:

• Consolidated net revenue for the three months ended March 31, 2016 increased $13.3 million, or 16.4%.

Organic growth accounts for $6.9 million of the increase, with $6.4 million relating to the acquisition of NAME.

• Local Advertising net revenue increased $2.9 million, or 4.4%.

• Live Events net revenue increased $7.4 million, or 90.4%.

• Other Media and Entertainment net revenue increased $3.0 million, or 38.9%.

• Pro forma consolidated net revenue increased $5.9 million, or 6.7%.

• Local Advertising net revenue increased $2.9 million, or 4.4%. Excluding the impact of political advertising revenue in 2016, an election year, pro forma Local Advertising net revenue increased $1.8 million, or 2.7%.

• Pro forma Live Events net revenue decreased $0.4 million, or 2.2%, primarily as a result of events that previously occurred in the first quarter of 2015 moving entirely or partially to the second quarter of 2016.

• Pro forma Other Media and Entertainment net revenue increased $3.4 million, or 45.3%, primarily driven by strong growth within our digital marketing solutions offering and national digital assets.

Consolidated Results of Operations

Three Months Ended March 31, 2015 compared to Three Months Ended March 31, 2016

The following table summarizes our historical consolidated results of operations:

($ in thousands)	Three Months Ended   March 31,
	2015			2016			$ Change			% Change
Statement of Operations Data:
Local Advertising net revenue	$	65,053		$	67,915		$	2,862		4.4	%
Live Events net revenue	8,166			15,546			7,380			90.4	%
Other Media and Entertainment net revenue	7,899			10,971			3,072			38.9	%
Net revenue	81,118			94,432			13,314			16.4	%
Operating Costs and Expenses:
Local Advertising direct operating expenses	46,202			48,236			2,034			4.4	%
Live Events direct operating expenses	7,572			18,787			11,215			148.1	%
Other Media and Entertainment direct operating expenses	7,555			9,882			2,327			30.8	%
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	61,329			76,905			15,576			25.4	%
Depreciation and amortization	3,671			6,123			2,452			66.8	%
Corporate expenses	5,240			5,557			317			6.0	%
Stock-based compensation	—			252			252			**
Transaction costs	47			169			122			259.6	%
Net gain on sale of assets	(7		)	(366		)	(359		)	**
Total operating costs and expenses	70,280			88,640			18,360			26.1	%
Operating income (loss)	10,838			5,792			(5,046		)	(46.6	)%
Other expense:
Interest expense, net	10,561			8,565			(1,996		)	(18.9	)%
Other expense (income), net	48			(483		)	(531		)	**
Total other expense	10,609			8,082			(2,527		)	(23.8	)%
Income (loss) before income taxes	229			(2,290		)	(2,519		)	**
Provision (benefit) for income taxes	98			(907		)	(1,005		)	**
Net income (loss)	$	131		$	(1,383	)	$	(1,514	)	**
**Percent change not meaningful.

Net Revenue

Net revenue for the three months ended March 31, 2016 increased by $13.3 million, or 16.4%, as compared to the same period in 2015. The increase was primarily driven by increases in Local Advertising net revenue of $2.9 million, Live Events net revenue of $7.4 million and Other Media and Entertainment net revenue of $3.0 million.

Local Advertising net revenue for the three months ended March 31, 2016 increased $2.9 million, or 4.4%, as compared to the same period in 2015. The increase was driven by an increase in political net revenue of $1.1 million and non-political net revenue of $1.8 million.

Live Events net revenue for the three months ended March 31, 2016 increased $7.4 million, or 90.4%, as compared to the the same period in 2015. The increase was composed of $6.4 million of growth from the acquisition of NAME on September 1, 2015 and $1.0 million of growth from our existing business. The growth from our existing business was achieved primarily within our touring lifestyle and entertainment events such as our America on Tap craft beer festival series and our Insane Inflatable 5K obstacle race series.

22

Other Media and Entertainment net revenue for the three months ended March 31, 2016 increased $3.0 million, or 38.9%, as compared to the the same period in 2015, as the result of increases within our digital marketing solutions offering and national digital assets.

Direct Operating Expenses

Direct operating expenses for the three months ended March 31, 2016 increased by $15.5 million, or 25.4%, as compared to the same period in 2015. The increase was primarily driven by increases in Local Advertising direct operating expenses of $2.0 million, Live Events direct operating expenses of $11.2 million and Other Media and Entertainment direct operating expenses of $2.3 million.

Local Advertising direct operating expenses for the three months ended March 31, 2016 increased $2.0 million, or 4.4%, as compared to the the same period in 2015, as a result of increases in variable costs, including sales related expenses.

Live Events direct operating expenses for the three months ended March 31, 2016 increased $11.2 million, or 148.1%, as compared to the the same period in 2015. The increase in Live Events direct operating expenses was primarily related to NAME, which we acquired on September 1, 2015.

Other Media and Entertainment direct operating expenses for the three months ended March 31, 2016 increased $2.3 million, or 30.8%, as compared to the the same period in 2015. The increase was driven by higher costs in headcount-related expenses including salaries and benefits, to support the growth within our digital marketing solutions offering and national digital assets.

Depreciation and Amortization

Depreciation and amortization expense for the three months ended March 31, 2016increased$2.5 million, or 66.8%, as compared to the same period in 2015 primarily related to depreciation on property and equipment acquired through the acquisition of NAME and amortization of capitalized software development costs.

Corporate Expenses

Corporate expense for the three months ended March 31, 2016increased$0.3 million, or 6.0%, as compared to the same period in 2015. The increase was primarily due to (i) increased costs in headcount-related expenses including salaries and benefits as a result of increased hiring in the fourth quarter of 2015 and (ii) costs incurred to support our data initiative project.

Stock-based Compensation

Stock-based compensation was $0.3 million for the three months ended March 31, 2016 due to the grant of 1.6 million stock options to certain employees and directors under the 2014 Incentive Plan in the first quarter of 2016. No such options were issued during the three months ended March 31, 2015.

Net Gain on Sale of Assets

In the three months ended March 31, 2016, we recognized a $0.4 million net gain on the sale of assets, as compared to de minimus gain in the same period in 2015. The net gain in the first quarter of 2016 primarily resulted from an earnout payment related to the sale of 43 towers on 41 sites in 28 markets to a subsidiary of Vertical Bridge, LLC (the "Tower Sale").

23

Other Expense

Interest expense, net is the major recurring component of other expense. Interest expense, net decreased$2.0 million, or 18.9%, in the three months ended March 31, 2016 as compared to the same period in 2015, primarily due to the refinancing of our outstanding indebtedness at more favorable rates on April 1, 2015.

On April 1, 2015, the Company issued $300.0 million of 6.5% Unsecured Senior Notes due in 2023 (the "2023 Notes") and entered into a Senior Secured Credit Facility, including a seven year, $275.0 million term loan facility (the "Term Loans") and a five year, $50.0 million revolving credit facility (the "Revolver" and together with the Term Loans, the "Senior Secured Credit Facility"). The proceeds from the 2023 Notes and Term Loans were used to repay substantially all of our previous long-term borrowings.

The following table illustrates the components of our interest expense, net for the periods indicated.

	Three Months Ended   March 31,
	2015		2016
($ in thousands)
2023 Notes	$	8,822	$	4,874
Term Loans	1,147		3,299
Capital loans and other	16		12
Loan origination costs	576		380
Interest expense, net	$	10,561	$	8,565

Provision (benefit) for income taxes

We recognized a benefit for income taxes of $0.9 million for the three months ended March 31, 2016. Our effective tax rate for the period was approximately 39.6%. Our effective tax rate may vary significantly from period to period, and can be influenced by many factors.  These factors include, but are not limited to, changes to statutory rates in the jurisdictions where we have operations and changes in the valuation of deferred tax assets and liabilities.  The difference between the effective tax rate and the federal statutory rate of 35% for the three months ended March 31, 2016 primarily relates to state, local and foreign income taxes.

Supplemental Pro Forma Net Revenue

For comparative purposes and to enable the reader to adequately compare prior year with current year results, the following discussion and tables present net revenue for Townsquare, pro forma for the acquisitions of NAME on September 1, 2015, as well as the Tower Sale on September 1, 2015 (collectively, the "Transactions"). The following tables present our pro forma results, which include the results of the Transactions prior to the transaction dates.

24

Three Months Ended March 31, 2015:

($ in thousands)	Townsquare		NAME		Tower Sale			Townsquare Pro Forma for the Transactions
Local Advertising net revenue	$	65,053	$	—	$	—		$	65,053
Live Events net revenue	8,166		7,734		—			15,900
Other Media and Entertainment net revenue	7,899		—		(348		)	7,551
Net revenue	$	81,118	$	7,734	$	(348	)	$	88,504

The following table summarizes our pro forma net revenue for the three months ended March 31, 2015 and 2016:

($ in thousands)	Three Months Ended March 31,				$			%
	2015		2016		Change			Change
Local Advertising net revenue	$	65,053	$	67,915	$	2,862		4.4	%
Live Events net revenue	15,900		15,546		(354		)	(2.2	)%
Other Media and Entertainment net revenue	7,551		10,971		3,420			45.3	%
Net revenue	$	88,504	$	94,432	$	5,928		6.7	%

On a pro forma consolidated basis, net revenue for the three months ended March 31, 2016 increased by $5.9 million, or 6.7%, as compared to the same period in 2015. The increase primarily resulted from a $2.9 million increase in Local Advertising net revenue and a $3.4 million increase in Other Media and Entertainment net revenue, which was partially offset by a $0.4 million decrease in Live Events net revenue.

On a pro forma basis, Local Advertising net revenue for the three months ended March 31, 2016 increased by $2.9 million, or 4.4%, as compared to the same period in 2015. The increase was driven by an increase in political net revenue of $1.1 million and non-political net revenue of $1.8 million.

On a pro forma basis, Live Events net revenue for the three months ended March 31, 2016 decreased by $0.4 million, or 2.2%, as compared to the same period in 2015. This was primarily a result of events that previously occurred in the first quarter of 2015 moving entirely or partially to the second quarter of 2016.

On a pro forma basis, Other Media and Entertainment net revenue for the three months ended March 31, 2016 increased by $3.4 million, or 45.3%, as compared to the same period in 2015. The increase was primarily driven by growth within our digital marketing solutions offering and national digital assets.

Liquidity and Capital Resources

	Three Months Ended   March 31,
($ in thousands)	2015			2016
Cash provided by operating activities	$	19,981		$	3,941
Cash used in investing activities	(5,785		)	(5,203		)
Cash used in financing activities	(445		)	(717		)
Net effect of foreign currency exchange rate changes	—			(499		)
Net increase (decrease) in cash	$	13,751		$	(2,478	)

We fund our working capital requirements through a combination of cash flows from our operating, investing and financing activities. Based on current and anticipated levels of operations and conditions in our markets and industry,

25

we believe that our cash on hand and cash flows from our operating, investing and financing activities, together with funds available under our revolving credit facility, will enable us to meet our working capital, capital expenditures, debt service and other funding requirements for at least the next twelve months. As of March 31, 2016, we had $588.5 million of outstanding indebtedness, net of deferred finance costs of $9.6 million, and based on interest rates in effect as of that date, we expect our debt service requirements to be approximately $32.4 million over the next twelve months. In addition, as of March 31, 2016 we have $30.8 million of cash, $52.4 million of receivables from customers, which historically have had an average collection cycle of approximately 50 days, and $50.0 million of available borrowing capacity under our revolving credit facility.

Our anticipated uses of cash in the near term include working capital needs, debt payments, other obligations, and capital expenditures. However, our ability to fund our working capital needs, debt payments, other obligations, capital expenditures, and to comply with the financial covenants under our debt agreements, depends on our future operating performance and cash flow, which are in turn subject to prevailing economic conditions, increases or decreases in advertising spending, rapid changes in the highly competitive industry in which we operate and other factors, many of which are beyond our control.

Additionally, on a continual basis, we evaluate and consider strategic acquisitions and divestitures to enhance our strategic and competitive position as well as our financial performance. Any future acquisitions, joint ventures or other similar transactions will likely require additional capital and such capital may not be available to us on acceptable terms, if at all.

We closely monitor the impact of capital and credit market conditions on our liquidity as related to our floating rate debt. We also routinely monitor the changes in the financial condition of our customers and the potential impact on our results of operations.

Cash Flows from Operating Activities

Net cash provided by operating activities for the three months ended March 31, 2016 was $3.9 million, as compared to $20.0 million in the same period in 2015. This decrease was primarily driven by (i) an increase of $5.9 million in prepaid expenses primarily relating to our live events business, of which $4.0 million relates to NAME, which we acquired on September 1, 2015 (ii) a decrease of $4.8 million in accrued interest as a result of our refinancing of our previous long-term borrowings at more favorable rates in April 2015, (iii) a decrease in accounts payable of $3.2 million as a result of timing of payments and (iv) an increase in accounts receivable of $2.2 million primarily as a result of increased business activity.

Cash Flows from Investing Activities

Net cash used in investing activities decreased $0.6 million to $5.2 million for the three months ended March 31, 2016 from cash used of $5.8 million for the same period in 2015. The decrease was primarily driven by a decrease in payments made for acquisitions of $2.7 million. This decrease was partially offset, by increased spending for capital expenditures of $3.4 million, of which $2.0 million relates to NAME, which we acquired on September 1, 2015.

Cash Flows from Financing Activities

Net cash used in financing activities was $0.7 million for the three months ended March 31, 2016, as compared to net cash used in financing activities of $0.4 million for the same period in 2015. This increase was driven by a $0.4 million increase in repayments of long-term debt. During the three months ended March 31, 2016 we voluntarily repurchased and canceled $0.7 million of our 2023 Notes outstanding at a market price of 95% of par, plus accrued interest. The gain of $34 thousand is included in other expense (income), net in the Company's consolidated statements of operations for the three months ended March 31, 2016. Repayments of long-term debt during the three months ended March 31, 2015 was comprised of principal payments on our then-outstanding bank debt.

26

Financing Arrangements

On April 1, 2015, the Company issued $300.0 million of 6.5% Unsecured Senior Notes due in 2023 and entered into the Senior Secured Credit Facility, including a seven year, $275.0 million term loan facility and a five year, $50.0 million revolving credit facility. The Term Loans has an initial interest rate of 4.25% (based on current LIBOR levels), a 1.00% LIBOR floor and an applicable margin of 325 basis points. The Revolver has an interest rate based either on LIBOR and an applicable margin of 250 basis points, or an alternative base rate and an applicable margin of 150 basis points.

On September 1, 2015, the Company issued incremental term loans of $45.0 million under the Senior Secured Credit Facility, the proceeds of which were used to partially fund the purchase price of NAME. Further, on September 30, 2015, the Company made a $20.0 million voluntary prepayment of borrowings under the Term Loan.

As of March 31, 2016, the Company is in compliance with all terms and covenants of its borrowing arrangements, and has $50 million of revolving credit availability under the Senior Secured Credit Facility.

We have historically serviced our debt obligations from funds generated by operating activities. We believe that our cash balance, together with our remaining capacity under the Revolver and cash generated by operating activities, will be sufficient to fund our operations, service our debt obligations and pursue our strategy for the next twelve months.

Off-Balance Sheet Arrangements

We have no material off-balance sheet arrangements or transactions.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our significant estimates, including those related to bad debts, intangible assets, income taxes, contingencies and purchase price allocations. We base our estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the result 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.

We believe the accounting policies and estimates discussed within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2015 Annual Report on Form 10-K reflect our more significant judgments and estimates used in the preparation of the consolidated financial statements. There have been no material changes to the critical accounting policies and estimates as filed in such report.

Recent Accounting Standards

For a discussion of accounting standards updates that have been adopted or will be adopted in the future, please refer to Note 2 of the Notes to Unaudited Consolidated Financial Statements included under Item 1.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The following discussion should be read together with our unaudited consolidated financial statements and related notes to unaudited consolidated financial statements included elsewhere in this Quarterly Report on Form 10-

27

Q, as well as those discussed within our audited consolidated financial statements and related notes to audited consolidated financial statements included in our 2015 Annual Report on Form 10-K.

Interest Rate Risk

As of March 31, 2016 we were not subject to market risk from exposure to changes in interest rates with respect to borrowings under our existing 2023 Notes.

As of March 31, 2016 we were subject to market risk from exposure to changes in interest rates on borrowings under our Senior Secured Credit Facility, specifically the impact of LIBOR interest rates on our variable rate borrowings. Based upon our March 31, 2016 outstanding term loan borrowings of $298.5 million under the Senior Secured Credit Facility, an increase in the LIBOR interest rate of 1% would result in an increase in our annual interest expense of approximately $1.3 million. We anticipate such interest rate risk will remain a market risk exposure for the foreseeable future.

28

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act, that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

In designing and evaluating the disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Furthermore, our controls and procedures can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the control and misstatements due to error or fraud may occur and not be detected on a timely basis.

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2016, the end of the period covered by this Quarterly Report on Form 10-Q. Based upon such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of such date.

Changes in Internal Controls

There was no change in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

29

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are parties to various legal matters and claims arising in the ordinary course of business. We do not expect that the final resolution of these ordinary course matters will have a material adverse impact on our financial position, results of operations or cash flows.

Item 1A. Risk Factors

Please refer to Part I, Item 1A, “Risk Factors,” in our2015 Annual Report on Form 10-Kfor information regarding known material risks that could affect our results of operations, financial condition and liquidity. In addition to these risks, other risks that we presently do not consider material, or other unknown risks, could materially adversely impact our business, financial condition and results of operations in a future period.

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

None

Item 3. Defaults upon Senior Securities

None

Item 4. Mine Safety Disclosures

None

Item 5. Other Information

None

Item 6. Exhibits

See Exhibit Index.

30

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.

	TOWNSQUARE MEDIA, INC.
By:	/s/ Steven Price
	Name: Steven Price
	Title: Chairman & Chief Executive Officer
By:	/s/ Stuart Rosenstein
	Name: Stuart Rosenstein
	Title: Executive Vice President & Chief Financial Officer

Date: May 10, 2016

31

EXHIBIT INDEX

Exhibit	Description
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

32

EX-31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF

THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Steven Price, certify that:

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

2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of 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) 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 the 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.

Dated: May 10, 2016	By:	/s/ Steven Price
		Name: Steven Price
		Title: Chairman and Chief Executive Officer

EX-31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF

THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Stuart Rosenstein, certify that:

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

2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of 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) 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 the 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.

Dated: May 10, 2016	By:	/s/ Stuart Rosenstein
		Name: Stuart Rosenstein
		Title: Executive Vice President and Chief Financial Officer

EX-32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Townsquare Media, Inc. (the “Company”) for the three months ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Steven Price, as Chief Executive Officer of Townsquare Media, Inc., hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Townsquare Media, Inc.

Dated: May 10, 2016	/s/ Steven Price
	Name: Steven Price
	Title: Chairman and Chief Executive Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of Townsquare Media, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.     

EX-32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Townsquare Media, Inc. (the "Company") for the three months ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stuart Rosenstein, as Chief Financial Officer of Townsquare Media, Inc., hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Townsquare Media, Inc.

Dated: May 10, 2016	/s/ Stuart Rosenstein
	Name: Stuart Rosenstein
	Title: Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of Townsquare Media, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.            

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Entity Registrant Name	Townsquare Media, Inc.
Entity Central Index Key	0001499832
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		18,394,515

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 30,820	$ 33,298
Accounts receivable	52,382	60,143
Prepaid expenses and other current assets	17,722	9,766
Total current assets	100,924	103,207
Property and equipment, net	135,210	133,943
Intangible assets, net	516,750	517,979
Goodwill	292,953	292,953
Investments	5,049	5,049
Other assets	7,450	7,580
Total assets	1,058,336	1,060,711
Liabilities, Current [Abstract]
Accounts payable	6,699	9,549
Current portion of long-term debt	173	171
Deferred revenue	24,195	17,496
Accrued expenses and other current liabilities	21,862	29,958
Accrued interest	9,763	4,910
Total current liabilities	62,692	62,084
Long-term debt, less current portion (net of deferred finance costs of $9,962 and $9,581, respectively)	588,314	588,657
Deferred tax liability	34,387	35,233
Other long-term liabilities	11,020	11,297
Total liabilities	696,413	697,271
Stockholders' Equity [Abstract]
Common stock	179	179
Additional paid-in capital	361,438	361,186
Retained earnings (deficit)	(70)	1,391
Accumulated other comprehensive income (loss)	(313)	44
Non-controlling interest	689	640
Total liabilities and stockholders’ equity	1,058,336	1,060,711
Common Class A
Stockholders' Equity [Abstract]
Common stock	100	100
Common Class B
Stockholders' Equity [Abstract]
Common stock	30	30
Common Class C
Stockholders' Equity [Abstract]
Common stock	$ 49	$ 49

XML

Consolidated Balance Sheets (Unaudited) Parenthetical - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts	$ 2,251,000	$ 2,114,000
Net of deferred finance costs	$ (9,581)	$ (9,962)
Common shares authorized (in shares)	400,000,000
Common Class A
Common shares authorized (in shares)	300,000,000	300,000,000
Common shares outstanding (in shares)	9,946,354	9,946,354
Common shares issued (in shares)	9,946,354	9,946,354
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common Class B
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares outstanding (in shares)	3,022,484	3,022,484
Common shares issued (in shares)	3,022,484	3,022,484
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common Class C
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares outstanding (in shares)	4,894,480	4,894,480
Common shares issued (in shares)	4,894,480	4,894,480
Common par value (in dollars per share)	$ 0.01	$ 0.01

XML

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Net revenue	$ 94,432	$ 81,118
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	76,905	61,329
Depreciation and amortization	6,123	3,671
Corporate expenses	5,557	5,240
Stock-based compensation expense	252	0
Transaction costs	169	47
Net gain on sale of assets	(366)	(7)
Costs and Expenses	88,640	70,280
Operating income	5,792	10,838
Other expenses:
Interest expense, net	8,565	10,561
Other expense (income), net	(483)	48
Income (loss) before income taxes	(2,290)	229
Provision (benefit) for income taxes	(907)	98
Net (loss) income	(1,383)	131
Net income (loss), controlling interests	(1,461)	96
Net income (loss), non-controlling interests	$ 78	$ 35
Net income (loss) per share, basic (in dollars per share)	$ (0.08)	$ 0.01
Net income (loss) per share, diluted (in dollars per share)	$ (0.08)	$ 0.00
Weighted average shares outstanding, basic (in shares)	17,863	17,374
Weighted average shares outstanding, diluted (in shares)	17,863	33,767

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Statement - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (1,383)	$ 131
Foreign currency translation adjustments	(357)	0
Comprehensive income (loss)	$ (1,740)	$ 131

XML

Consolidated Statements of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Income	Non- Controlling Interest	Common Class A	Common Class B	Common Class C	Warrants
Common shares outstanding, beginning balance (in shares) at Dec. 31, 2015							9,946,354	3,022,484	4,894,480
Warrants outstanding, beginning balance at Dec. 31, 2015										9,508,878
Stockholders' equity, beginning balance at Dec. 31, 2015	$ 363,440	$ 179	$ 361,186	$ 1,391	$ 44	$ 640
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Net (loss) income	(1,383)			(1,461)		78
Stock-based compensation	252		252
Foreign currency exchange	(357)				(357)
Cash distributions to non-controlling interests	(29)					(29)
Common shares outstanding, ending balance (in shares) at Mar. 31, 2016							9,946,354	3,022,484	4,894,480
Warrants outstanding, ending balance at Mar. 31, 2016										9,508,878
Stockholders' equity, ending balance at Mar. 31, 2016	$ 361,923	$ 179	$ 361,438	$ (70)	$ (313)	$ 689

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income (loss), controlling interests	$ (1,461)	$ 96
Net income (loss), non-controlling interests	78	35
Net income (loss)	(1,383)	131
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization	6,123	3,671
Amortization of deferred financing costs	380	575
Deferred income tax expense (benefit)	(907)	98
(Recovery of) provision for doubtful accounts	610	(360)
Stock-based compensation expense	252	0
Cancellation of debt	(34)	0
Amortization of bond premium	0	(424)
Net gain on sale of assets	(366)	(7)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	6,353	8,584
Prepaid expenses and other assets	(7,332)	(1,474)
Accounts payable	(2,871)	329
Accrued expenses	(1,460)	(830)
Accrued interest	4,853	9,678
Other long-term liabilities	(277)	10
Net cash provided by operating activities	3,941	19,981
Cash flows from investing activities:
Payments for acquisitions, net of cash received	0	(2,673)
Acquisition of intangibles	0	(32)
Purchase of property and equipment	(6,496)	(3,133)
Proceeds from insurance settlement	451	0
Proceeds from sale of assets	842	53
Net cash used in investing activities	(5,203)	(5,785)
Cash flows from financing activities:
Offering costs	0	(99)
Repayment of long-term debt	(646)	(284)
Cash distributions to non-controlling interests	(29)	(23)
Repayments of capitalized obligations	(42)	(39)
Net cash used in financing activities	(717)	(445)
Net effect of foreign currency exchange rate changes	(499)	0
Net increase (decrease) in cash	(2,478)	13,751
Cash, beginning of period	33,298	24,462
Cash, end of period	30,820	38,213
Cash payments:
Interest	3,323	719
Income taxes	435	182
Barter transactions:
Barter revenue – included in net revenue	4,217	2,992
Barter expense – included in direct operating expenses	$ 3,080	$ 2,874

XML

Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

Description of the Business

Townsquare Media, Inc. is a media, entertainment and digital marketing solutions company principally focused on small and mid-sized markets across the United States. As of March 31, 2016, our assets included 309 radio stations and more than 325 local websites in 66 U.S. markets, approximately 550 live events with nearly 18 million annual attendees in the U.S. and Canada, a digital marketing solutions company serving approximately 8,700 small to medium sized businesses, and one of the largest digital advertising networks focused on music and entertainment reaching more than 60 million unique visitors each month. Our brands include local media assets such as WYRK, KLAQ, K2 and NJ101.5; music festivals such as Mountain Jam, WE Fest and Taste of Country Music Festival; touring lifestyle and entertainment events such as the America on Tap craft beer festival series, the Insane Inflatable 5K obstacle race series, and North American Midway Entertainment ("NAME"), North America’s largest mobile amusement company; and tastemaker music and entertainment owned and affiliated websites such as XXL.com, TasteofCountry.com, Loudwire.com,JustJared.com and BrooklynVegan.com. Funds managed by Oaktree Capital Management, L.P. ("Oaktree") are the Company’s largest equity holder.

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Except as stated below, there have been no significant changes in the Company’s accounting policies since December 31, 2015. For the Company's detailed accounting policies please refer to the consolidated financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 (the "2015 Annual Report on Form 10-K") filed with the Securities and Exchange Commission ("SEC") on February 26, 2016.

Foreign Currency

NAME, acquired by a subsidiary of the Company on September 1, 2015, conducts a portion of its business in Canada. Results of operations for our Canadian entity are translated into U.S. dollars using the average exchange rates during the period.  The assets and liabilities of our Canadian entity are translated into U.S. dollars using the exchange rates at the balance sheet date.  The related translation adjustments are recorded in a separate component of stockholders' equity, “Accumulated other comprehensive income”.  Foreign currency transaction gains and losses are included in operations in other expense (income), net.

Recently Issued Accounting Standards

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases. ASU 2016-02 requires the lessee to recognize in the statement of financial position a liability to make lease payments, and a right-of-use asset representing its right to use the underlying asset for the lease term. The liability and asset are initially measured at the present value of the lease payments. The ASU applies to all leases, including those previously classified as operating leases under ASC Topic 842. The standard is effective for fiscal years beginning after December 15, 2018, and will require measurement of leases at the beginning of the earliest period presented, using a modified retrospective approach. The Company is currently assessing the potential impact ASU 2016-02 will have on its financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. The Company is currently assessing the potential impact ASU 2016-09 will have on its financial statements.

In March 2016, the FASB issued ASU 2016-08, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), which amends the principal-versus agent implementation guidance and illustrations in the Board’s new revenue standard (ASU 2014-09, Revenue From Contracts With Customers). FASB issued the ASU in response to concerns identified by stakeholders, including those related to (i) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance and (ii) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. Among other things, the ASU clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. As defined in the ASU, a specified good or service is "a distinct good or service (or a distinct bundle of goods or services) to be provided to the customer." Therefore, for contracts involving more than one specified good or service, the entity may be the principal for one or more specified goods or services and the agent for others. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The Company is currently assessing the potential impact ASU 2016-08 will have on its financial statements.

XML

Interim Financial Data

3 Months Ended

Mar. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Interim Financial Data

Interim Financial Data

The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes thereto included in the Company's 2015 Annual Report on Form 10-K. The accompanying unaudited interim consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries, with all significant intercompany balances and transactions eliminated in consolidation. These financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by U.S. 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 included. The results of operations and cash flows for the three months ended March 31, 2016 and the Company’s financial condition as of such date 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, 2016. The consolidated balance sheet as of December 31, 2015 is derived from the audited financial statements at that date.     

Our net revenue varies throughout the year. We expect that our first calendar quarter will produce the lowest net revenue for the year, as advertising expenditures generally decline following the winter holidays, and the second and third calendar quarters will generally produce the highest net revenue for the year. In addition to advertising revenue seasonality, our Live Events net revenue exhibits seasonality resulting in the third quarter being the highest revenue period, followed by the second, then fourth, then first quarter. Large drivers of this seasonality are our summertime multi-day festivals, and NAME's revenue which is concentrated in the third quarter. During even-numbered years, net revenue generally includes increased advertising expenditures by political candidates, political parties and special interest groups. Political spending is typically highest during the fourth quarter. 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 net

revenue generation until future periods, if at all.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its significant estimates, including those related to bad debts, intangible assets, income taxes, contingencies 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 result 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.

XML

Significant Acquisitions

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Significant Acquisitions

Significant Acquisitions

NAME Acquisition: On September 1, 2015, the Company, through a subsidiary of Townsquare Live Events, LLC, purchased all of the issued and outstanding membership interests of Heartland Group, LLC and its wholly-owned subsidiary NAME for approximately $70.0 million in cash, 481,948 unregistered shares of the Company's Class A common stock valued at $4.9 million, and a working capital adjustment of $0.4 million. Cash consideration was satisfied from cash on hand, $45.0 million of incremental term loan borrowings and a working capital adjustment of approximately $0.4 million. The Company estimated the fair value of acquired intangibles using the discounted cash flow method. The purchase price was allocated to the tangible and intangible assets and liabilities at their fair value at the date of acquisition, with any excess of the purchase price over the net assets acquired being reported as goodwill. The Company expects none of this goodwill to be deductible for tax purposes. The Company has recognized an opening deferred tax liability in connection with the acquisition of NAME, as the initial tax basis of the acquired assets differ from their initial basis under GAAP, which reflects estimated fair market value.

The NAME purchase price allocation is shown in the following table.

	(in thousands)
Current assets	$	5,148
Customer relationships	8,700
Trade name	4,600
Other intangibles	1,000
Property and equipment	42,894
Goodwill	39,866
Non-controlling interest	(225		)
Accounts payable and accrued expenses	(9,586		)
Deferred tax liabilities	(17,035		)
Total purchase price	$	75,362

Pro-Forma Results: The following table illustrates the unaudited pro-forma information reflecting net revenue and net loss for the three months ended March 31, 2015 as if the acquisition of NAME had occurred on January 1, 2015. The unaudited pro-forma amounts are for informational purposes only and do not purport to represent what the Company’s actual results of operations would have been if the aforementioned acquisition had been completed as of January 1, 2015 or any other historical date, nor is it reflective of the Company’s expected actual results of operations for any future periods.

	(in thousands)
	Three Months Ended   March 31,
	2015
Net revenue	$	88,852
Net loss	(4,205		)

XML

Investments

3 Months Ended

Mar. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investments

Investments

Long-term investments consist of minority holdings in companies that management believes are synergistic with Townsquare. Management does not exercise significant control over operating and financial policies of the investees, accordingly the investments are reflected under the cost method of accounting. The initial equity valuations were based upon a discounted cash flows analysis, using unobservable inputs categorized as Level 3 within the Accounting Standards Codification Section 820 framework. It is impracticable to obtain these Level 3 inputs as of the reporting date, accordingly a current market valuation has not been performed. Since the initial valuations, however, there have been no identified events or changes in circumstances that we believe would have a significant adverse effect on the fair value of these investments.

XML

Property and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

Property and equipment consisted of the following:

	(in thousands)
	December 31, 2015			March 31, 2016
Land and improvements	$	20,329		$	19,956
Buildings and leasehold improvements	32,997			33,559
Broadcast equipment	70,656			71,453
Rides and related equipment	40,369			41,309
Computer and office equipment	10,742			11,067
Furniture and fixtures	7,428			8,679
Transportation equipment	11,543			13,000
Software development costs	17,571			18,746
	211,635			217,769
Less: Accumulated depreciation and amortization	(77,692		)	(82,559		)
Property and equipment, net	$	133,943		$	135,210

Depreciation and amortization expense for property and equipment was $3.1 million and $4.9 million for the three months ended March 31, 2015 and 2016, respectively.

In September 2015, the Company closed on the sale of 43 towers located on 41 sites in 28 markets to a subsidiary of Vertical Bridge, LLC ("Vertical Bridge") (the "Tower Sale"). The divested towers house antenna that broadcast certain of the Company’s radio stations. The Company also entered into an agreement with Vertical Bridge whereby Vertical Bridge will serve as the exclusive marketing agent for the over 282 towers retained by the Company. The Company received total cash proceeds of $21.6 million, net of closing adjustments, in exchange for the sale of the towers and the exclusive marketing arrangement. In addition, the Company has leased a portion of the space on the sold towers that house certain of the Company's antenna. The lease is for a period of 35 years, including an initial term of twenty years and three optional five-year renewal periods. The Company will pay $41 of rent per annum ($1 per site per annum) to Vertical Bridge for the right to house its existing antenna on the divested towers.

The Company has determined that the relative fair value of the towers sold and the exclusive marketing arrangement were $25.8 million and $3.1 million, respectively. The following was recognized in the Company's consolidated balance sheet in connection with this transaction with Vertical Bridge:

($ in thousands)	Fair Value		Balance Sheet Location
Long-term prepaid rent asset	$	7,311	Other long term assets
Deferred gain on the sale of towers	$	7,311	Other long term liabilities
Exclusive marketing arrangement	$	3,111	Other long term liabilities

The Company realized an $11.5 million gain in connection with the sale of these towers during the third quarter of 2015, which was included in net gain on sale in the Company's consolidated statements of operations. In addition, the Company determined that the lease is an operating lease and is amortizing the long-term prepaid rent asset and deferred gain on the sale of towers as offsetting amounts over the lease term. The exclusive marketing arrangement is being amortized through net revenue over the five-year term of the arrangement in the Company's consolidated statements of operations.

XML

Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Indefinite-lived assets consist of FCC broadcast licenses and goodwill. FCC licenses represent a substantial portion of the Company’s total assets. The FCC licenses are renewable in the ordinary course of business, generally for a maximum of eight years. The fair value of FCC licenses is primarily dependent on the future cash flows of the radio markets and other assumptions, including, but not limited to, forecasted revenue growth rates, profit margins and a risk-adjusted discount rate.

The Company has selected December 31st as the annual valuation date. Based on the results of the Company’s 2015 annual impairment evaluations, the Company recorded impairment charges aggregating $1.7 million pertaining to FCC licenses in our Quad Cities and Grand Junction markets. All other fair values of the Company’s intangibles exceeded their carrying value, therefore, no impairment of these assets had occurred as of the date of the annual tests. If market conditions and operational performance of the Company’s reporting units were to deteriorate and management had no expectation that the performance would improve within a reasonable period of time or if an event occurs or circumstances change that would reduce the fair value of its goodwill and intangible assets below the amounts reflected in the balance sheet, the Company may be required to recognize additional impairment charges in future periods.

There were no changes to goodwill for the three months ended March 31, 2016.

Intangible assets consist of the following:

		(in thousands)
	Estimated Useful Life	December 31, 2015		March 31, 2016
Intangible Assets:
FCC licenses	Indefinite	$	486,229	$	486,229
Trademarks and trade names	Indefinite	4,600		4,600
Customer and advertising relationships	10 years	14,317		14,317
Customer relationships	15 years	8,700		8,700
Leasehold interests	5 to 39 years	1,085		1,085
Tower space	3 to 9 years	454		454
Sports broadcast rights	1 to 2 years	665		665
Non-compete agreements	1 to 2 years	243		243
Trademark	15 years	11,258		11,258
Permits/licenses	1 year	1,000		1,000
Other intangibles	3 years	980		980
Total		529,531		529,531
Less: Accumulated amortization		(11,552)		(12,781		)
Net amount		$	517,979	$	516,750

Amortization expense for definite-lived intangible assets was $0.6 million and $1.2 million for the three months ended March 31, 2015 and 2016, respectively.

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of March 31, 2016 is as follows:

	(in thousands)
2016 (remainder)	$	2,775
2017	2,987
2018	2,138
2019	2,015
2020	2,009
Thereafter	13,997
	$	25,921

XML

Long-Term Debt

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt consisted of the following:

	(in thousands)
	December 31, 2015			March 31, 2016
2023 Notes	$	300,000		$	299,320
Term Loans	298,512			298,512
Capitalized obligations	278			236
Long-term debt before deferred financing costs	598,790			598,068
Deferred financing costs	(9,962		)	(9,581		)
	588,828			588,487
Less: current portion of long-term debt	(171		)	(173		)
	$	588,657		$	588,314

On April 1, 2015, the Company issued $300.0 million of 6.5% Unsecured Senior Notes due in 2023 (the "2023 Notes") and a Senior Secured Credit Facility, which includes a seven year, $275.0 million term loan facility (the "Term Loans") and a five year, $50.0 million revolving credit facility (the "Revolver"). Borrowings are guaranteed by each of the Company’s direct and indirect subsidiaries, and subject to certain exceptions, are secured by substantially all of the tangible and intangible assets of the Company and its subsidiaries. The proceeds from the 2023 Notes and Term Loans were used to repay substantially all of our previous long-term borrowings.

On September 1, 2015, the Company issued incremental term loans of $45.0 million under the Senior Secured Credit Facility, the proceeds of which were used to partially fund the purchase price of NAME. Further, on September 30, 2015, the Company made a $20.0 million voluntary prepayment of borrowings under the Term Loans. The Company recognized a loss of $0.3 million on the write-off of unamortized deferred financing costs in connection with this voluntary prepayment in the third quarter of 2015.

On March 24, 2016, the Company voluntarily repurchased $0.7 million of its 2023 Notes at a market price of 95% of par, plus accrued interest. The repurchased notes were canceled by the Company. A gain of $34 thousand is included in other expense (income), net in the Company's consolidated statements of operations for the three months ended March 31, 2016.

At March 31, 2016, the Term Loans continued to bear interest at an initial interest rate of 4.25% (based on current LIBOR levels, a 1.00% LIBOR floor and an applicable margin of 325 basis points). The Revolver has an interest rate based either on LIBOR and an applicable margin of 250 basis points, or an alternative base rate and an applicable margin of 150 basis points. As of March 31, 2016, the Company had no outstanding borrowings under the Revolver.

The 2023 Notes mature on April 1, 2023, with interest payable on April 1 and October 1 of each year. Prior to maturity, the Company may redeem all or part of the 2023 Notes at specified redemption premiums as set forth in the indenture, together with any accrued and unpaid interest thereon. Additionally, if the Company experiences certain change of control events, holders of the 2023 Notes may require the Company to repurchase all or part of their notes at 101% of the principal amount thereof.

The 2023 Notes rank equally with all of the Company's existing and future senior debt, are senior to all of the Company's existing and future subordinated debt, and are guaranteed on a senior basis by certain of the Company’s direct and indirect wholly-owned subsidiaries.

The 2023 Notes indenture contains restrictive covenants that limit the ability of the Company and its subsidiaries to, among other things, incur additional debt or issue preferred stock; create liens; create restrictions on the Company’s subsidiaries’ ability to make payments to the Company; pay dividends and make other distributions in respect of the Company’s and its subsidiaries’ capital stock; make certain investments or certain other restricted payments; guarantee indebtedness; designate unrestricted subsidiaries; sell certain kinds of assets; enter into certain types of transactions with affiliates; and effect mergers and consolidations.

The Term Loans mature on April 1, 2022, and the Revolver matures on April 1, 2020. Borrowings under the Senior Secured Credit Facility are subject to mandatory prepayments equal to the net proceeds to the Company of any additional debt issuances or asset sales, as well as half of annual excess cash flow as defined (subject to certain reductions). Borrowings are guaranteed by each of the Company’s direct and indirect subsidiaries, and subject to certain exceptions, are secured by substantially all of the tangible and intangible assets of the Company and its subsidiaries.

The Senior Secured Credit Facility contains covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness or liens; engage in mergers or other fundamental changes; sell certain property or assets; pay dividends or other distributions; make acquisitions, investments, loans and advances; prepay certain indebtedness including the 2023 Notes; change the nature of its business; engage in certain transactions with affiliates and incur restrictions on interactions between the Company and its subsidiaries, or limit actions in relation to the Senior Secured Credit Facility.

The Company is in compliance with its covenants under the 2023 Notes and Senior Secured Credit Facility as of March 31, 2016.

As of March 31, 2016, based on available market information, the estimated fair values of the 2023 Notes and the Term Loans were $287.1 million and $295.2 million, respectively.

Annual maturities of the Company's long-term debt as of March 31, 2016 are as follows:

	(in thousands)
2016 (remainder)	$	130
2017	91
2018	5
2019	5
2020	5
Thereafter	597,832
	$	598,068

XML

Stockholders' Equity

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

The table below presents a summary, as of March 31, 2016, of our authorized and outstanding common stock, and securities convertible into common stock, excluding options issued under our 2014 Omnibus Incentive Plan.

Security1	Par Value Per Share		Number Authorized	Number Outstanding	Description
Class A common stock	$	0.01	300,000,000	9,946,354	One vote per share.
Class B common stock	$	0.01	50,000,000	3,022,484	10 votes per share.2
Class C common stock	$	0.01	50,000,000	4,894,480	No votes.2
Warrants				9,508,878	Each warrant is exercisable for one share of Class A common stock, at an exercise price of $0.0001 per share. The aggregate exercise price for all warrants currently outstanding is $951.3
Total			400,000,000	27,372,196
1 Each of the shares of common stock, including the shares of Class A common stock issuable upon exercise of the warrants, have equal economic rights.
2 Each share converts into one share of Class A common stock upon transfer or at the option of the holder, subject to certain conditions, including compliance with FCC rules.
3 The warrants are fully vested and exercisable for shares of Class A common stock, subject to certain conditions, including compliance with FCC rules.

The foregoing share totals exclude 4,260,478 of Class A common stock and 4,511,236 of Class B common stock issuable upon exercise of stock options, which options have an exercise price of between $8.96 and $13.02 per share. Additionally, the Company is authorized to issue 50,000,000 shares of undesignated preferred stock.

On April 6, 2016, we issued 531,197 shares of Class A common stock upon the exercise of outstanding warrants. 

The Company's common stock is not entitled to preemptive or other similar subscription rights to purchase any of our securities. Unless the Company's Board of Directors determines otherwise, we will issue all of our capital stock in uncertificated form.

Stock-based Compensation    

The Company's 2014 Omnibus Incentive Plan (the "2014 Incentive Plan") provides grants of stock options, stock appreciation rights, restricted stock, other stock-based awards and other cash-based awards. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting or advisory services for the Company, are eligible for grants under the 2014 Incentive Plan. The purpose of the 2014 Incentive Plan is to provide incentives that will attract, retain and motivate high performing officers, directors, employees and consultants by providing them with appropriate incentives and rewards either through a proprietary interest in our long-term success or compensation based on their performance in fulfilling their personal responsibilities. The aggregate number of shares of common stock which may be issued or used for reference purposes under the 2014 Incentive Plan or with respect to which awards may be granted may not exceed 12,000,000 shares. As of March 31, 2016, 3,235,450 shares were available for grant.

The grant date fair value of the equity options granted is estimated using the Black-Scholes option pricing model, which requires estimates of the expected term of the option, the expected volatility of the Company's common stock price, dividend yield and the risk-free rate. The below table summarizes the assumptions used to estimate the fair value of the equity options granted for the three months ended March 31, 2016.

Expected volatility	30.0	%
Expected term	4.25 - 6.33 years
Risk free interest rate	1.4% - 1.7%
Expected dividend yield	0.0	%

With the exception of the options that were granted to employees in the first quarter of 2016, the options provide for immediate vesting and the options have an exercise price of between $8.96 and $13.02 per share. The expected term was calculated using the simplified method, defined as the midpoint between the vesting period and the contractual term of each award. The expected volatility was based on market conditions of the Company and comparable companies. The risk free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the option. The Company historically has not paid dividends and therefore did not utilize a dividend yield in the calculations.

The following table summarizes stock option activity for the three months ended March 31, 2015:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2014	6,924,903		$	11.00
Granted	—		—
Exercised	—		—
Forfeited	(40,412	)	11.00
Outstanding at March 31, 2015	6,884,491		$	11.00	9.29	$	12,716,058

The following table summarizes stock option activity for the three months ended March 31, 2016:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2015	7,329,334		$	11.20
Granted	1,600,000		8.96
Exercised	—		—
Forfeited	(157,620	)	11.00
Outstanding at March 31, 2016	8,771,714		$	10.96	7.8	$	4,930,165

Of the 1,600,000 options granted during the three months ended March 31, 2016, 1,565,000 were granted to employees and 35,000 were granted to directors of the Company. The weighted average grant date fair value of stock options granted was $2.38 and $2.98 for options granted to employees and directors of the Company, respectively. The options granted to directors provide for immediate vesting, whereas the options granted to employees have a five-year term with 50% vesting in year three and 50% vesting in year four. For the three months ended March 31, 2016, the Company recognized $0.3 million, respectively, of stock-based compensation expense with respect to the options granted. As of March 31, 2016, total unrecognized stock-based compensation expense is $3.1 million to be recognized over four years.

There was no restricted stock activity during the three months ended March 31, 2015 or 2016.

The Company has issued stock to employees and independent directors. The shares are subject to a Selldown Agreement, pursuant to which the FiveWire Media Ventures LLC ("FiveWire") (an entity formed for the purpose of investing in the Company by certain members of management, including Steven Price, Stuart Rosenstein, Dhruv Prasad, Scott Schatz and certain other individuals (together, the "FiveWire Holders")) and certain other members of management are subject to certain restrictions on sales of the Company's common stock held by them. Pursuant to the terms of the Selldown Agreement, the FiveWire Holders and certain other members of management are generally restricted from transferring a specified percentage (which is expected to range between 50% and 100%) of the shares of the Company's common stock held by them at the closing of the July 24, 2014 initial public offering (the "IPO"). If Oaktree sells a portion of the shares of common stock or warrants to purchase common stock that it holds (the percentage of shares and warrants, collectively, held by Oaktree at such time that it sells in such a transaction, referred to as the "Sale Percentage"), those subject to the Selldown Agreement will be permitted to sell a percentage of the shares of common stock and warrants held by them, up to an amount equal to the Sale Percentage. The Selldown Agreement will terminate on the earlier of (i) the date that Oaktree no longer holds at least 10% of the shares of common stock and warrants exercisable for common stock, collectively, held by Oaktree immediately following closing of the IPO, and (ii) the third anniversary of the closing of the IPO.

XML

Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's effective tax rate for the three months ended March 31,2015 and 2016 was approximately 42.8% and 39.6%, respectively. The effective tax rate may vary significantly from period to period, and can be influenced by many factors.  These factors include, but are not limited to, changes to the statutory rates in the jurisdictions where the Company has operations and changes in the valuation of deferred tax assets and liabilities.  The difference between the effective tax rate and the federal statutory rate of 35% for the three months ended March 31, 2016 primarily relates to state, local and foreign income taxes.

XML

Accrued Expenses and Other Current Liabilities

3 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	(in thousands)
	December 31, 2015		March 31, 2016
Accrued compensation and benefits	$	14,157	$	6,644
Accrued professional fees	935		1,099
Accrued commissions	2,252		2,277
Accrued taxes	2,786		2,339
Accrued music and FCC licensing	1,103		1,096
Accrued publisher fees	1,088		850
Accrued national representation fees	1,060		891
Due to sellers, business combinations	2,286		1,015
Deferred rent	1,295		1,252
Accrued other	2,996		4,399
	$	29,958	$	21,862

XML

Lease and Other Commitments

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Lease and Other Commitments

Lease and Other Commitments

Operating Leases: The Company leases certain facilities and equipment used in its operations. Certain of the Company’s operating leases contain renewal options through 2062, escalating rent provisions and/or cost of living adjustments. Total rental expense was approximately $4.0 million and $4.8 million for the three months ended March 31, 2015 and 2016, respectively. Total rental expense includes costs incurred for live events such as venue and equipment rentals.

At March 31, 2016, the total minimum annual rental commitments under non-cancelable operating leases are as follows:

	(in thousands)
2016 (remainder)	$	7,393
2017	8,939
2018	7,688
2019	6,692
2020	4,969
Thereafter	15,521
Total minimum payments	$	51,202

In January 2016, the Company signed a lease for office space in Charlotte, North Carolina, for use by its digital marketing solutions operation. The lease commenced on March 1, 2016, and has a ten year term. Initially 28,000 square feet will be leased, increasing to 51,288 square feet by year four. The annual minimum rental commitment aggregates $0.3 million at commencement of the lease, escalating to $1.3 million by year ten.

Other Commitments: The radio broadcast industry’s principal ratings service is Nielsen Holdings N.V. ("Nielsen"), which publishes surveys for domestic radio markets. The Company’s remaining aggregate obligation under the agreements with Nielsen as of March 31, 2016 is approximately $11.2 million and is expected to be paid in accordance with the agreements through October 2018.

We normally commit one or more years in advance to provide rides, games and concessions at certain fairs. These agreements include an obligation to pay event fees, which may be expressed as a flat fee or as a percentage of revenues. At March 31, 2016, our total minimum fee commitments for contracts with a remaining term in excess of one year are as follows:

	(in thousands)
2016 (remainder)	$	2,651
2017	3,531
2018	3,215
2019	1,920
2020	1,062
Thereafter	2,821
Total minimum payments	$	15,200

XML

Segment Reporting

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has two reportable segments, Local Advertising, which provides advertising via broadcast and digital delivery within our local markets, and Live Events, which is composed of a diverse range of live events, which we create, promote and produce, including music concerts, multi-day music festivals, fairs, consumer expositions and trade shows, athletic events, lifestyle events and other forms of entertainment. The Company reports the remainder of its business in its Other Media and Entertainment category, which principally provide digital marketing solutions, e-commerce solutions and digital advertising services nationally. The following disclosures are consistent with the management decision-making process that determines the allocation of resources and measurement of performance.

The following table presents the Company’s reportable segment results for the three months ended March 31, 2015:

	(in thousands)
	Local Advertising		Live Events		Other Media & Entertainment		Corporate and other reconciling items			Consolidated
Three Months Ended March 31, 2015
Net revenue	$	65,053	$	8,166	$	7,899	$	—		$	81,118
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	46,202		7,572		7,555		—			61,329
Depreciation and amortization	2,796		223		219		433			3,671
Corporate expenses	—		—		—		5,240			5,240
Transaction costs	—		—		—		47			47
Net gain on sale of assets	—		—		—		(7		)	(7		)
Operating income (loss)	$	16,055	$	371	$	125	$	(5,713	)	$	10,838
Capital expenditures	$	681	$	705	$	1,353	$	394		$	3,133

The following table presents the Company’s reportable segment results for the three months ended March 31, 2016:

	(in thousands)
	Local Advertising		Live Events			Other Media & Entertainment		Corporate and other reconciling items			Consolidated
Three Months Ended March 31, 2016
Net revenue	$	67,915	$	15,546		$	10,971	$	—		$	94,432
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	48,236		18,787			9,882		—			76,905
Depreciation and amortization	2,688		2,145			182		1,108			6,123
Corporate expenses	—		—			—		5,557			5,557
Stock-based compensation	21		20			8		203			252
Transaction costs	—		—			—		169			169
Net gain on sale of assets	—		—			—		(366		)	(366		)
Operating income (loss)	$	16,970	$	(5,406	)	$	899	$	(6,671	)	$	5,792
Capital expenditures	$	1,030	$	3,138		$	1,379	$	949		$	6,496

NAME, acquired by a subsidiary of the Company on September 1, 2015, conducts a portion of its business in Canada. Consolidated revenue for the three months ended March 31, 2016 includes $83 thousand of Canadian revenue, and long-lived assets located in Canada aggregated $3.9 million as of March 31, 2016.

XML

Net Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

The following table sets forth the computations of basic and diluted net income (loss) per share for the three months ended March 31, 2015 and 2016.

	(in thousands, except per share data)
	Three Months Ended   March 31,
	2015		2016
Numerator:
Net income (loss)	$	131	$	(1,383	)
Denominator:
Weighted average shares of common stock outstanding	17,374		17,863
Effect of dilutive common stock equivalents	16,393		—
Weighted average diluted common shares outstanding	33,767		17,863
Net income (loss) per share:
Basic	$	0.01	$	(0.08	)
Diluted	$	—	$	(0.08	)

The Company excluded 9,508,787 warrants and 202,036 options from the calculation of net loss per share for the three months ended March 31, 2016 as they were considered anti-dilutive.

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Foreign Currency

Foreign Currency

NAME, acquired by a subsidiary of the Company on September 1, 2015, conducts a portion of its business in Canada. Results of operations for our Canadian entity are translated into U.S. dollars using the average exchange rates during the period.  The assets and liabilities of our Canadian entity are translated into U.S. dollars using the exchange rates at the balance sheet date.  The related translation adjustments are recorded in a separate component of stockholders' equity, “Accumulated other comprehensive income”.  Foreign currency transaction gains and losses are included in operations in other expense (income), net.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases. ASU 2016-02 requires the lessee to recognize in the statement of financial position a liability to make lease payments, and a right-of-use asset representing its right to use the underlying asset for the lease term. The liability and asset are initially measured at the present value of the lease payments. The ASU applies to all leases, including those previously classified as operating leases under ASC Topic 842. The standard is effective for fiscal years beginning after December 15, 2018, and will require measurement of leases at the beginning of the earliest period presented, using a modified retrospective approach. The Company is currently assessing the potential impact ASU 2016-02 will have on its financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. The Company is currently assessing the potential impact ASU 2016-09 will have on its financial statements.

In March 2016, the FASB issued ASU 2016-08, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), which amends the principal-versus agent implementation guidance and illustrations in the Board’s new revenue standard (ASU 2014-09, Revenue From Contracts With Customers). FASB issued the ASU in response to concerns identified by stakeholders, including those related to (i) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance and (ii) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. Among other things, the ASU clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. As defined in the ASU, a specified good or service is "a distinct good or service (or a distinct bundle of goods or services) to be provided to the customer." Therefore, for contracts involving more than one specified good or service, the entity may be the principal for one or more specified goods or services and the agent for others. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The Company is currently assessing the potential impact ASU 2016-08 will have on its financial statements.

XML

Significant Acquisitions (Tables)

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Schedule of Purchase Price Allocation

The NAME purchase price allocation is shown in the following table.

	(in thousands)
Current assets	$	5,148
Customer relationships	8,700
Trade name	4,600
Other intangibles	1,000
Property and equipment	42,894
Goodwill	39,866
Non-controlling interest	(225		)
Accounts payable and accrued expenses	(9,586		)
Deferred tax liabilities	(17,035		)
Total purchase price	$	75,362

Unaudited Pro Forma Information

The following table illustrates the unaudited pro-forma information reflecting net revenue and net loss for the three months ended March 31, 2015 as if the acquisition of NAME had occurred on January 1, 2015. The unaudited pro-forma amounts are for informational purposes only and do not purport to represent what the Company’s actual results of operations would have been if the aforementioned acquisition had been completed as of January 1, 2015 or any other historical date, nor is it reflective of the Company’s expected actual results of operations for any future periods.

	(in thousands)
	Three Months Ended   March 31,
	2015
Net revenue	$	88,852
Net loss	(4,205		)

XML

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property and equipment consisted of the following:

	(in thousands)
	December 31, 2015			March 31, 2016
Land and improvements	$	20,329		$	19,956
Buildings and leasehold improvements	32,997			33,559
Broadcast equipment	70,656			71,453
Rides and related equipment	40,369			41,309
Computer and office equipment	10,742			11,067
Furniture and fixtures	7,428			8,679
Transportation equipment	11,543			13,000
Software development costs	17,571			18,746
	211,635			217,769
Less: Accumulated depreciation and amortization	(77,692		)	(82,559		)
Property and equipment, net	$	133,943		$	135,210

The following was recognized in the Company's consolidated balance sheet in connection with this transaction with Vertical Bridge:

($ in thousands)	Fair Value		Balance Sheet Location
Long-term prepaid rent asset	$	7,311	Other long term assets
Deferred gain on the sale of towers	$	7,311	Other long term liabilities
Exclusive marketing arrangement	$	3,111	Other long term liabilities

XML

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-Lived and FInite-Lived Intangible Assets

Intangible assets consist of the following:

		(in thousands)
	Estimated Useful Life	December 31, 2015		March 31, 2016
Intangible Assets:
FCC licenses	Indefinite	$	486,229	$	486,229
Trademarks and trade names	Indefinite	4,600		4,600
Customer and advertising relationships	10 years	14,317		14,317
Customer relationships	15 years	8,700		8,700
Leasehold interests	5 to 39 years	1,085		1,085
Tower space	3 to 9 years	454		454
Sports broadcast rights	1 to 2 years	665		665
Non-compete agreements	1 to 2 years	243		243
Trademark	15 years	11,258		11,258
Permits/licenses	1 year	1,000		1,000
Other intangibles	3 years	980		980
Total		529,531		529,531
Less: Accumulated amortization		(11,552)		(12,781		)
Net amount		$	517,979	$	516,750

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of March 31, 2016 is as follows:

	(in thousands)
2016 (remainder)	$	2,775
2017	2,987
2018	2,138
2019	2,015
2020	2,009
Thereafter	13,997
	$	25,921

XML

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Long-term Debt Instruments

Long-term debt consisted of the following:

	(in thousands)
	December 31, 2015			March 31, 2016
2023 Notes	$	300,000		$	299,320
Term Loans	298,512			298,512
Capitalized obligations	278			236
Long-term debt before deferred financing costs	598,790			598,068
Deferred financing costs	(9,962		)	(9,581		)
	588,828			588,487
Less: current portion of long-term debt	(171		)	(173		)
	$	588,657		$	588,314

Annual Maturities of Long-term Debt

Annual maturities of the Company's long-term debt as of March 31, 2016 are as follows:

	(in thousands)
2016 (remainder)	$	130
2017	91
2018	5
2019	5
2020	5
Thereafter	597,832
	$	598,068

XML

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Schedule of Stockholders Equity

The table below presents a summary, as of March 31, 2016, of our authorized and outstanding common stock, and securities convertible into common stock, excluding options issued under our 2014 Omnibus Incentive Plan.

Security1	Par Value Per Share		Number Authorized	Number Outstanding	Description
Class A common stock	$	0.01	300,000,000	9,946,354	One vote per share.
Class B common stock	$	0.01	50,000,000	3,022,484	10 votes per share.2
Class C common stock	$	0.01	50,000,000	4,894,480	No votes.2
Warrants				9,508,878	Each warrant is exercisable for one share of Class A common stock, at an exercise price of $0.0001 per share. The aggregate exercise price for all warrants currently outstanding is $951.3
Total			400,000,000	27,372,196
1 Each of the shares of common stock, including the shares of Class A common stock issuable upon exercise of the warrants, have equal economic rights.
2 Each share converts into one share of Class A common stock upon transfer or at the option of the holder, subject to certain conditions, including compliance with FCC rules.
3 The warrants are fully vested and exercisable for shares of Class A common stock, subject to certain conditions, including compliance with FCC rules.

Schedule of Equity Award Fair Value Assumptions

The below table summarizes the assumptions used to estimate the fair value of the equity options granted for the three months ended March 31, 2016.

Expected volatility	30.0	%
Expected term	4.25 - 6.33 years
Risk free interest rate	1.4% - 1.7%
Expected dividend yield	0.0	%

Schedule of Stock Options Activity

The following table summarizes stock option activity for the three months ended March 31, 2015:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2014	6,924,903		$	11.00
Granted	—		—
Exercised	—		—
Forfeited	(40,412	)	11.00
Outstanding at March 31, 2015	6,884,491		$	11.00	9.29	$	12,716,058

The following table summarizes stock option activity for the three months ended March 31, 2016:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2015	7,329,334		$	11.20
Granted	1,600,000		8.96
Exercised	—		—
Forfeited	(157,620	)	11.00
Outstanding at March 31, 2016	8,771,714		$	10.96	7.8	$	4,930,165

XML

Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued expenses and other current liabilities consist of the following:

	(in thousands)
	December 31, 2015		March 31, 2016
Accrued compensation and benefits	$	14,157	$	6,644
Accrued professional fees	935		1,099
Accrued commissions	2,252		2,277
Accrued taxes	2,786		2,339
Accrued music and FCC licensing	1,103		1,096
Accrued publisher fees	1,088		850
Accrued national representation fees	1,060		891
Due to sellers, business combinations	2,286		1,015
Deferred rent	1,295		1,252
Accrued other	2,996		4,399
	$	29,958	$	21,862

XML

Lease and Other Commitments (Tables)

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

At March 31, 2016, the total minimum annual rental commitments under non-cancelable operating leases are as follows:

	(in thousands)
2016 (remainder)	$	7,393
2017	8,939
2018	7,688
2019	6,692
2020	4,969
Thereafter	15,521
Total minimum payments	$	51,202

Other Commitments

At March 31, 2016, our total minimum fee commitments for contracts with a remaining term in excess of one year are as follows:

	(in thousands)
2016 (remainder)	$	2,651
2017	3,531
2018	3,215
2019	1,920
2020	1,062
Thereafter	2,821
Total minimum payments	$	15,200

XML

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table presents the Company’s reportable segment results for the three months ended March 31, 2015:

	(in thousands)
	Local Advertising		Live Events		Other Media & Entertainment		Corporate and other reconciling items			Consolidated
Three Months Ended March 31, 2015
Net revenue	$	65,053	$	8,166	$	7,899	$	—		$	81,118
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	46,202		7,572		7,555		—			61,329
Depreciation and amortization	2,796		223		219		433			3,671
Corporate expenses	—		—		—		5,240			5,240
Transaction costs	—		—		—		47			47
Net gain on sale of assets	—		—		—		(7		)	(7		)
Operating income (loss)	$	16,055	$	371	$	125	$	(5,713	)	$	10,838
Capital expenditures	$	681	$	705	$	1,353	$	394		$	3,133

The following table presents the Company’s reportable segment results for the three months ended March 31, 2016:

	(in thousands)
	Local Advertising		Live Events			Other Media & Entertainment		Corporate and other reconciling items			Consolidated
Three Months Ended March 31, 2016
Net revenue	$	67,915	$	15,546		$	10,971	$	—		$	94,432
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	48,236		18,787			9,882		—			76,905
Depreciation and amortization	2,688		2,145			182		1,108			6,123
Corporate expenses	—		—			—		5,557			5,557
Stock-based compensation	21		20			8		203			252
Transaction costs	—		—			—		169			169
Net gain on sale of assets	—		—			—		(366		)	(366		)
Operating income (loss)	$	16,970	$	(5,406	)	$	899	$	(6,671	)	$	5,792
Capital expenditures	$	1,030	$	3,138		$	1,379	$	949		$	6,496

XML

Net Income (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Schedule of Unaudited Pro Forma Earnings Per Share

The following table sets forth the computations of basic and diluted net income (loss) per share for the three months ended March 31, 2015 and 2016.

	(in thousands, except per share data)
	Three Months Ended   March 31,
	2015		2016
Numerator:
Net income (loss)	$	131	$	(1,383	)
Denominator:
Weighted average shares of common stock outstanding	17,374		17,863
Effect of dilutive common stock equivalents	16,393		—
Weighted average diluted common shares outstanding	33,767		17,863
Net income (loss) per share:
Basic	$	0.01	$	(0.08	)
Diluted	$	—	$	(0.08	)

XML

Organization and Basis of Presentation - Nature of Business (Details) attendee in Millions	Mar. 31, 2016 radio_station market visitor attendee event website
Organization and Basis of Presentation [Line Items]
Number of radio stations | radio_station	309
Number of search engine and mobile-optimized local websites (more than) | website	325
Number of live events | event	550
Number of annual attendees at live events | attendee	18
Number of small and mid-sized markets in which entity operates	8,700
Number of unique visitors to digital advertising (more than) | visitor	60,000,000
United States
Organization and Basis of Presentation [Line Items]
Number of small and mid-sized markets	66

XML

Significant Acquisitions - Additional Details (Details) $ in Millions	Sep. 01, 2015 USD ($) shares
Business Acquisition [Line Items]
Proceeds from lines of credit	$ 45.0
NAME
Business Acquisition [Line Items]
Payments to acquire businesses, net of closing adjustments	70.0
Common shares issued to acquire business, value	4.9
Working capital adjustment	$ 0.4
NAME | Common Class A
Business Acquisition [Line Items]
Common shares issued to acquire business (in shares) | shares	481,948

XML

Significant Acquisitions - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Sep. 01, 2015
Business Acquisition [Line Items]
Goodwill	$ 292,953	$ 292,953
NAME
Business Acquisition [Line Items]
Current assets			$ 5,148
Property and equipment			42,894
Goodwill			39,866
Non-controlling interest			(225)
Accounts payable and accrued expenses			(9,586)
Deferred tax liabilities			(17,035)
Total purchase price			75,362
Customer relationships | NAME
Business Acquisition [Line Items]
Finite-lived intangible assets			8,700
Trade Names | NAME
Business Acquisition [Line Items]
Finite-lived intangible assets			4,600
Other intangibles | NAME
Business Acquisition [Line Items]
Finite-lived intangible assets			$ 1,000

XML

Significant Acquisitions - Pro-Forma Information (Details) - NAME $ in Thousands	3 Months Ended
	Mar. 31, 2015 USD ($)
Pro Forma Results [Line Items]
Net revenue	$ 88,852
Net loss	$ (4,205)

XML

Property and Equipment - Schedule of Physical Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment	$ 217,769	$ 211,635
Less: Accumulated depreciation and amortization	(82,559)	(77,692)
Property and equipment, net	135,210	133,943
Land and improvements
Property, Plant and Equipment [Line Items]
Property and equipment	19,956	20,329
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	33,559	32,997
Broadcast equipment
Property, Plant and Equipment [Line Items]
Property and equipment	71,453	70,656
Rides and related equipment
Property, Plant and Equipment [Line Items]
Property and equipment	41,309	40,369
Computer and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment	11,067	10,742
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	8,679	7,428
Transportation equipment
Property, Plant and Equipment [Line Items]
Property and equipment	13,000	11,543
Software development costs
Property, Plant and Equipment [Line Items]
Property and equipment	$ 18,746	$ 17,571

XML

Property and Equipment - Additional Information (Details)	1 Months Ended	3 Months Ended
	Sep. 30, 2015 USD ($) renewal_option market site tower	Mar. 31, 2016 USD ($)	Sep. 30, 2015 USD ($) market	Mar. 31, 2015 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization		$ 4,900,000		$ 3,100,000
Exclusive marketing agent, number of towers (more than) | tower	282
Net gain on sale of assets		$ 366,000		$ 7,000
Tower Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Towers | tower	43
Number of radio tower sites | site	41
Number of markets | market	28		28
Cash received upon sale	$ 21,600,000		$ 21,600,000
Rental term	35 years
Period of continuing involvement	20 years
Number of renew options | renewal_option	3
Renewal option term	5 years
Annual rent	$ 41
Annual rent per site	1
Fair value of assets sold	25,800,000		25,800,000
Marketing agent agreement fair value	$ 3,111,000		3,111,000
Net gain on sale of assets			$ 11,500,000
Exclusive marketing arrangement term	5 years

XML

Property and Equipment - Schedule of Fair Value of Transaction (Details) - Tower Sale $ in Thousands	Sep. 30, 2015 USD ($)
Property, Plant and Equipment [Line Items]
Long-term prepaid rent asset	$ 7,311
Deferred gain on the sale of towers	7,311
Exclusive marketing arrangement	$ 3,111

XML

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Indefinite-lived Intangible Assets [Line Items]
Asset impairment charges			$ 1.7
Amortization of intangible assets	$ 1.2	$ 0.6
FCC licenses
Indefinite-lived Intangible Assets [Line Items]
FCC license renewal period	8 years

XML

Goodwill and Other Intangible Assets - Schedule of Finite Lived and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Indefinite-lived Intangible Assets [Line Items]
Total	$ 529,531	$ 529,531
Less: Accumulated amortization	(12,781)	(11,552)
Net amount	(516,750)	(517,979)
Licenses
Indefinite-lived Intangible Assets [Line Items]
Gross indefinite-lived intangible assets	486,229	486,229
Trademarks and Trade Names
Indefinite-lived Intangible Assets [Line Items]
Gross indefinite-lived intangible assets	4,600	4,600
Customer and advertising relationships
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 14,317	14,317
Intangible asset useful life	10 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 8,700	8,700
Intangible asset useful life	15 years
Leasehold interests
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 1,085	1,085
Leasehold interests | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	5 years
Leasehold interests | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	39 years
Tower space
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 454	454
Tower space | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	3 years
Tower space | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	9 years
Sports broadcast rights
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 665	665
Sports broadcast rights | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	1 year
Sports broadcast rights | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	2 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 243	243
Non-compete agreements | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	1 year
Non-compete agreements | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	2 years
Trademark
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 11,258	11,258
Intangible asset useful life	15 years
Licenses
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 1,000	1,000
Intangible asset useful life	1 year
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 980	$ 980
Intangible asset useful life	3 years

XML

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2016 (remainder)	$ 2,775
2017	2,987
2018	2,138
2019	2,015
2020	2,009
Thereafter	13,997
Total	$ 25,921

XML

Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt	$ 598,068
Capitalized obligations	236	$ 278
Long-term debt before deferred finance costs	598,068	598,790
Net of deferred finance costs	(9,581)	(9,962)
Long term debt and capital lease obligations	588,487	588,828
Less: current portion of long-term debt	(173)	(171)
Long-term debt, less current portion (net of deferred finance costs of $9,962 and $9,581, respectively)	588,314	588,657
Unsecured Senior Note Due 2023
Debt Instrument [Line Items]
Long-term debt	299,320	300,000
New Term Loan
Debt Instrument [Line Items]
Long-term debt	$ 298,512	$ 298,512

XML

Long-Term Debt - Additional Information (Details) - USD ($)		3 Months Ended
	Apr. 01, 2015	Mar. 31, 2016	Sep. 30, 2015	Mar. 24, 2016	Sep. 01, 2015
Unsecured Senior Note Due 2023
Debt Instrument [Line Items]
Debt fair value			$ 20,000,000
Repurchased debt, face amount				$ 700,000
Debt repurchased, percentage of market value				95.00%
Requirement to repurchase notes, percentage		101.00%
Unsecured Senior Note Due 2023 | Other Expense
Debt Instrument [Line Items]
Gain on repurchase of debt		$ 34,000
Term Loan | Seven Year Term Loan Facility
Debt Instrument [Line Items]
Debt amount	$ 275,000,000
Debt term	7 years
Debt effective interest rate		4.25%
Term Loan | Seven Year Term Loan Facility | LIBOR
Debt Instrument [Line Items]
Variable rate floor		1.00%
Basis spread on variable rate		3.25%
Term Loan | 2015 Incremental Term Loan
Debt Instrument [Line Items]
Debt amount					$ 45,000,000
Revolving Credit Facility | Five Year Revolving Credit Facility
Debt Instrument [Line Items]
Debt term	5 years
Line of credit, borrowing capacity	$ 50,000,000
Revolving Credit Facility | Five Year Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.50%
Revolving Credit Facility | Five Year Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		1.50%
Senior Notes | Unsecured Senior Note Due 2023
Debt Instrument [Line Items]
Debt amount	$ 300,000,000
Stated interest rate	6.50%
Debt fair value		$ 287,100,000
Senior Notes | Senior Notes due in 2019
Debt Instrument [Line Items]
Recognized loss on write-off of unamortized deferred financing costs			$ 300,000
New Term Loan | Unsecured Senior Note Due 2023
Debt Instrument [Line Items]
Debt fair value		$ 295,200,000

XML

Long-Term Debt - Schedule of Maturities of Long Term Debt (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Debt Disclosure [Abstract]
2016 (remainder)	$ 130
2017	91
2018	5
2019	5
2020	5
Thereafter	597,832
Long-term debt	$ 598,068

XML

Stockholders' Equity - Schedule of Stockholders Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Common shares authorized (in shares)	400,000,000
Total common stock and warrants outstanding	27,372,196
Warrants, number of shares exercisable	1
Exercise prices per warrant	$ 0.0001
Aggregate exercise price of all warrants	$ 951
Warrants
Class of Stock [Line Items]
Warrants outstanding (in warrants)	9,508,878
Common Class A
Class of Stock [Line Items]
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	300,000,000	300,000,000
Common shares outstanding (in shares)	9,946,354	9,946,354
Number of votes per share	1
Common Class B
Class of Stock [Line Items]
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares outstanding (in shares)	3,022,484	3,022,484
Number of votes per share	10
Common Class C
Class of Stock [Line Items]
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares outstanding (in shares)	4,894,480	4,894,480
Number of votes per share	0

XML

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Apr. 06, 2016
Class of Stock [Line Items]
Shares granted during period (in shares)	1,600,000	0
Weighted average grant date fair value, per share	$ 2.98
Stock-based compensation expense	$ 252	$ 0
Unrecognized stock-based compensation expense	$ 3,100
Unrecognized share-based compensation expense recognition period	4 years
Director
Class of Stock [Line Items]
Shares granted during period (in shares)	35,000
Employee
Class of Stock [Line Items]
Shares granted during period (in shares)	1,565,000
Weighted average grant date fair value, per share	$ 2.38
Option vesting period	5 years
Tranche One | Employee
Class of Stock [Line Items]
Option vesting percentage	50.00%
Tranche Two | Employee
Class of Stock [Line Items]
Option vesting percentage	50.00%
2014 Omnibus Incentive Plan
Class of Stock [Line Items]
Shares authorized to be granted (in shares)	12,000,000
Shares available for grant (in shares)	3,235,450
Minimum
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share)	$ 8.96
Selldown agreement range	50.00%
Oaktree ownership percentage	10.00%
Minimum | 2014 Omnibus Incentive Plan
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share)	$ 8.96
Maximum
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share)	$ 13.02
Selldown agreement range	100.00%
Maximum | 2014 Omnibus Incentive Plan
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share)	$ 13.02
Common Class A
Class of Stock [Line Items]
Shares issuable upon exercise of stock options	4,260,478
Common Class A | Subsequent Event
Class of Stock [Line Items]
Shares, Issued			531,197
Common Class B
Class of Stock [Line Items]
Shares issuable upon exercise of stock options	4,511,236
Preferred Stock
Class of Stock [Line Items]
Preferred shares authorized (in shares)	50,000,000

XML

Stockholders' Equity - Summary of Equity Award Fair Value Assumptions (Details)	3 Months Ended
	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	30.00%
Expected dividend yield	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	4 years 3 months
Risk free interest rate	1.40%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	6 years 4 months
Risk free interest rate	1.70%

XML

Stockholders' Equity - Stock Option Activity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at December 31, 2015 (in shares)	7,329,334	6,924,903
Granted (in shares)	1,600,000	0
Exercised (in shares)	0	0
Forfeited (in shares)	(157,620)	(40,412)
Outstanding at March 31, 2016 (in shares)	8,771,714	6,884,491
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at December 31, 2015 (in dollars per share)	$ 11.20	$ 11.00
Granted (in dollars per share)	8.96	0.00
Exercised (in dollars per share)	0.00	0.00
Forfeited (in dollars per share)	11.00	11.00
Outstanding at March 31, 2016 (in dollars per share)	$ 10.96	$ 11.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual life, outstanding	7 years 9 months 18 days	9 years 106 days
Aggregate intrinsic value, outstanding	$ 4,930,165	$ 12,716,058

XML

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate (percentage)	39.60%	42.80%
Federal statutory income tax rate (percentage)	35.00%

XML

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 6,644	$ 14,157
Accrued professional fees	1,099	935
Accrued commissions	2,277	2,252
Accrued taxes	2,339	2,786
Accrued music and FCC licensing	1,096	1,103
Accrued publisher fees	850	1,088
Accrued national representation fees	891	1,060
Due to sellers, business combinations	1,015	2,286
Deferred rent	1,252	1,295
Deferred rent	24,195	17,496
Due to sellers, business combinations	4,399	2,996
Accrued expenses and other current liabilities	$ 21,862	$ 29,958

XML

Lease and Other Commitments - Additional Information (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2016 USD ($) ft²	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)
Leases [Abstract]
Total rent expense		$ 4,800	$ 4,000
Term of lease	10 years
Contractual obligation		11,200
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
2016 (remainder)		2,651
2017		3,531
2018		3,215
2019		1,920
2020		1,062
Thereafter		2,821
Total minimum payments		$ 15,200
Minimum
Leases [Abstract]
Total rent expense	$ 300
Leased square feet | ft²	28,000
Maximum
Leases [Abstract]
Total rent expense	$ 1,300
Leased square feet | ft²	51,288

XML

Lease and Other Commitments - Schedule of Future Minimum Rental Payments (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Leases [Abstract]
Leases, 2016 (remainder)	$ 7,393
Leases, 2017	8,939
Leases, 2018	7,688
Leases, 2019	6,692
Leases, 2020	4,969
Leases, Thereafter	15,521
Total minimum payments	$ 51,202

XML

Segment Reporting - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) segment	Mar. 31, 2015 USD ($)
Segment Reporting Information [Line Items]
Reportable segments | segment	2
Net revenue	$ 94,432	$ 81,118
Canadian
Segment Reporting Information [Line Items]
Net revenue	83
Long-lived assets	$ 3,900

XML

Segment Reporting - Schedule of Reportable Segment Results(Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Net revenue	$ 94,432	$ 81,118
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	76,905	61,329
Depreciation and amortization	6,123	3,671
Corporate expenses	5,557	5,240
Stock-based compensation expense	252	0
Transaction costs	169	47
Net gain on sale of assets	(366)	(7)
Operating income	5,792	10,838
Capital expenditures	6,496	3,133
Operating segments | Local Advertising
Segment Reporting Information [Line Items]
Net revenue	67,915	65,053
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	48,236	46,202
Depreciation and amortization	2,688	2,796
Corporate expenses	0	0
Stock-based compensation expense	21
Transaction costs	0	0
Net gain on sale of assets	0	0
Operating income	16,970	16,055
Capital expenditures	1,030	681
Operating segments | Live Events
Segment Reporting Information [Line Items]
Net revenue	15,546	8,166
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	18,787	7,572
Depreciation and amortization	2,145	223
Corporate expenses	0	0
Stock-based compensation expense	20
Transaction costs	0	0
Net gain on sale of assets	0	0
Operating income	(5,406)	371
Capital expenditures	3,138	705
Operating segments | Other Media & Entertainment
Segment Reporting Information [Line Items]
Net revenue	10,971	7,899
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	9,882	7,555
Depreciation and amortization	182	219
Corporate expenses	0	0
Stock-based compensation expense	8
Transaction costs	0	0
Net gain on sale of assets	0	0
Operating income	899	125
Capital expenditures	1,379	1,353
Corporate and other reconciling items
Segment Reporting Information [Line Items]
Net revenue	0	0
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	0	0
Depreciation and amortization	1,108	433
Corporate expenses	5,557	5,240
Stock-based compensation expense	203
Transaction costs	169	47
Net gain on sale of assets	(366)	(7)
Operating income	(6,671)	(5,713)
Capital expenditures	$ 949	$ 394

XML

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ (1,383)	$ 131
Weighted average shares outstanding, basic (in shares)	17,863	17,374
Effect of dilutive common stock equivalents (in shares)	0	16,393
Weighted average shares outstanding, diluted (in shares)	17,863	33,767
Net income (loss) per share, basic (in dollars per share)	$ (0.08)	$ 0.01
Net income (loss) per share, diluted (in dollars per share)	$ (0.08)	$ 0.00

XML

Net Income (Loss) Per Common Share - Antidilutive Securities Excluded from Earning Per Share (Details)	3 Months Ended
	Mar. 31, 2016 shares
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of securities excluded from earnings per share	9,508,787
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of securities excluded from earnings per share	202,036