ý | Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 |
¨ | Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 |
Large accelerated filer | ¨ | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ | Smaller reporting company | ý | ||
Emerging Growth Company | ¨ |
Documents | Form 10-K Reference | |
Proxy Statement for 2017 Annual Meeting of Shareholders expected to be filed within 120 days | Part III |
Page | |
STATION AND MARKET | MARKET RANK BY REVENUE | FORMAT | PRIMARY DEMOGRAPHIC TARGET AGES | RANKING IN PRIMARY DEMOGRAPHIC TARGET | STATION AUDIENCE SHARE | |||||
Los Angeles, CA | 1 | |||||||||
KPWR-FM | Hip-Hop | 18-34 | 4t | 5.2 | ||||||
New York, NY 1 | 2 | |||||||||
WQHT-FM | Hip-Hop | 18-34 | 2 | 7.9 | ||||||
WBLS-FM | Urban Adult Contemporary | 25-54 | 4 | 5.4 | ||||||
WLIB-AM | Urban Gospel | 25-54 | 44t | 0.2 | ||||||
St. Louis, MO | 23 | |||||||||
KPNT-FM | Alternative Rock | 18-34 | 1 | 9.3 | ||||||
KSHE-FM | Album Oriented Rock | 25-54 | 1 | 8.5 | ||||||
KNOU-FM | Contemporary Hit Radio | 18-34 | 9 | 5.3 | ||||||
KFTK-FM | Talk | 25-54 | 12t | 4.1 | ||||||
Austin, TX | 32 | |||||||||
KLBJ-AM | News/Talk | 25-54 | 12 | 3.1 | ||||||
KLZT-FM | Mexican Regional | 18-34 | 4 | 7.1 | ||||||
KBPA-FM | Adult Hits | 25-54 | 1 | 9.8 | ||||||
KLBJ-FM | Album Oriented Rock | 25-54 | 9 | 4.1 | ||||||
KGSR-FM | Adult Album Alternative | 25-54 | 13t | 3.0 | ||||||
KROX-FM | Alternative Rock | 18-34 | 3 | 7.4 | ||||||
Indianapolis, IN | 37 | |||||||||
WFNI-AM | Sports Talk | 25-54 | 18 | 2.1 | ||||||
WYXB-FM | Soft Adult Contemporary | 25-54 | 4 | 6.7 | ||||||
WLHK-FM | Country | 25-54 | 5 | 5.7 | ||||||
WIBC-FM | News/Talk | 35-64 | 10 | 3.6 |
Expiration Date of License1 | Height Above Average Terrain (in feet) | Power (in Kilowatts) | |||||||||||||
Radio Market | Stations | City of License | Frequency | FCC Class | |||||||||||
Los Angeles, CA | KPWR-FM | Los Angeles, CA | 105.9 | December 2021 | B | 3,035 | 25 | ||||||||
New York, NY | WQHT-FM | New York, NY | 97.1 | June 2022 | B | 1,339 | 6.7 | ||||||||
WBLS-FM | New York, NY | 107.5 | June 2022 | B | 1,362 | 4.2 | |||||||||
WLIB-AM | New York, NY | 1190 | June 2022 | B | N/A | 10 D / 30 N | |||||||||
WEPN-FM | New York, NY | 98.7 | June 2022 | B | 1,362 | 6 | |||||||||
St. Louis, MO | KFTK-FM | Florissant, MO | 97.1 | February 2021 | C1 | 561 | 100 | ||||||||
KNOU-FM | St. Louis, MO | 96.3 | February 2021 | C1 | 1,014 | 92 | |||||||||
KPNT-FM | Collinsville, IL | 105.7 | December 2020 | C1 | 835 | 54 | |||||||||
KSHE-FM | Crestwood, MO | 94.7 | February 2021 | C0 | 1,014 | 100 | |||||||||
Austin, TX | KBPA-FM | San Marcos, TX | 103.5 | August 2021 | C0 | 1,257 | 100 | ||||||||
KGSR-FM | Cedar Park, TX | 93.3 | August 2021 | C | 1,926 | 100 | |||||||||
KLZT-FM | Bastrop, TX | 107.1 | August 2021 | C2 | 499 | 49 | |||||||||
KLBJ-AM | Austin, TX | 590 | August 2021 | B | N/A | 5 D / 1 N | |||||||||
KLBJ-FM | Austin, TX | 93.7 | August 2021 | C | 1,050 | 97 | |||||||||
KROX-FM | Buda, TX | 101.5 | August 2021 | C2 | 847 | 12.5 | |||||||||
Indianapolis, IN | WFNI-AM | Indianapolis, IN | 1070 | August 2020 | B | N/A | 50 D / 10 N | ||||||||
WLHK-FM | Shelbyville, IN | 97.1 | August 2020 | B | 732 | 23 | |||||||||
WIBC-FM | Indianapolis, IN | 93.1 | August 2020 | B | 991 | 13.5 | |||||||||
WYXB-FM | Indianapolis, IN | 105.7 | August 2020 | B | 492 | 50 |
• | has served the public interest, convenience and necessity; |
• | has committed no serious violations of the Communications Act or the FCC rules; and |
• | has committed no other violations of the Communications Act or the FCC rules which would constitute a pattern of abuse. |
• | if the market has 45 or more radio stations, one entity may own up to eight stations, not more than five of which may be in the same service (AM or FM); |
• | if the market has between 30 and 44 radio stations, one entity may own up to seven stations, not more than four of which may be in the same service; |
• | if the market has between 15 and 29 radio stations, one entity may own up to six stations, not more than four of which may be in the same service; and |
• | if the market has 14 or fewer radio stations, one entity may own up to five stations, not more than three of which may be in the same service, however one entity may not own more than 50% of the stations in the market. |
• | up to two commercial television stations and six commercial radio stations or one commercial television station and seven commercial radio stations in a market where at least 20 independent media voices will remain post-merger; |
• | up to two commercial television stations and four commercial radio stations in a market where at least 10 independent media voices will remain post-merger; and |
• | two commercial television stations and one commercial radio station in a market with less than 10 independent media voices that will remain post-merger. |
• | all officer and director positions in a licensee or its direct/indirect parent(s); |
• | voting stock interests of at least 5% (or 20%, if the holder is a passive institutional investor, i.e., a mutual fund, insurance company or bank); |
• | any equity interest in a limited partnership or limited liability company where the limited partner or member has not been “insulated” from the media-related activities of the LP or LLC pursuant to specific FCC criteria; |
• | equity and/or debt interests which, in the aggregate, exceed 33% of the total asset value of a station or other media entity (the “equity/debt plus policy”), if the interest holder supplies more than 15% of the station’s total weekly programming (usually pursuant to a time brokerage, local marketing or network affiliation agreement) or is a same-market media entity (i.e., broadcast company or newspaper). In December 2007, the FCC increased these limits under certain circumstances where the equity and/or debt interests are in a small business meeting certain requirements. Although the Third Circuit vacated the FCC’s selected definition of small businesses eligible to take advantage of these increased limits in 2011, the FCC reinstated that definition in its August 2016 order. |
• | proposals to impose spectrum use or other fees on FCC licensees; |
• | proposals to repeal or modify some or all of the FCC’s multiple ownership rules and/or policies; |
• | proposals to change rules relating to political broadcasting; |
• | technical and frequency allocation matters; |
• | AM stereo broadcasting; |
• | proposals to modify service and technical rules for digital radio, including possible additional public interest requirements for terrestrial digital audio broadcasters; |
• | proposals to restrict or prohibit the advertising of beer, wine and other alcoholic beverages; |
• | proposals to tighten safety guidelines relating to radio frequency radiation exposure; |
• | proposals permitting FM stations to accept formerly impermissible interference; |
• | proposals to reinstate holding periods for licenses; |
• | changes to broadcast technical requirements related to the implementation of SDARS; |
• | proposals to modify broadcasters’ public interest obligations; |
• | proposals to limit the tax deductibility of advertising expenses by advertisers; and |
• | proposals to regulate violence and hate speech in broadcasts. |
• | satellite-delivered digital audio radio service, which has resulted in subscriber-based satellite radio services with numerous niche formats; |
• | audio programming by cable systems, direct-broadcast satellite systems, Internet content providers and other digital audio broadcast formats; |
• | personal digital audio devices (e.g., audio via Wi-Fi, smartphones, iPods®, iPhones®, WiMAX, the Internet and MP3 players); |
• | HD Radio®, which provides multi-channel, multi-format digital radio services in the same bandwidth currently occupied by traditional AM and FM radio services; and |
• | low-power FM radio, which could result in additional FM radio broadcast outlets, including additional low-power FM radio signals authorized in December 2010 under the Local Community Radio Act. |
• | make it more difficult for us to satisfy our obligations with respect to our indebtedness; |
• | increase our vulnerability to generally adverse economic and industry conditions; |
• | require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures and other general corporate purposes; |
• | result in higher interest expense in the event of increases in interest rates because some of our debt is at variable rates of interest; |
• | limit our flexibility in planning for, or reacting to, changes in our businesses and the industries in which we operate; |
• | place us at a competitive disadvantage compared to some of our competitors that have less debt; and |
• | limit, along with the financial and other restrictive covenants in our 2014 Credit Agreement, our ability to borrow additional funds. |
NAME | POSITION | AGE AT FEBRUARY 28, 2017 | YEAR FIRST ELECTED OFFICER | ||
Paul V. Brenner | President - TagStation / NextRadio | 48 | 2007 | ||
J. Scott Enright | Executive Vice President, General Counsel and Secretary | 54 | 1998 | ||
Ryan A. Hornaday | Executive Vice President, Chief Financial Officer and Treasurer | 43 | 2006 | ||
Gregory T. Loewen | President - Publishing Division and Chief Strategy Officer | 45 | 2007 |
QUARTER ENDED | HIGH | LOW | |||||
May 2015 | $ | 8.52 | $ | 4.16 | |||
August 2015 | $ | 5.96 | $ | 3.96 | |||
November 2015 | $ | 5.76 | $ | 2.44 | |||
February 2016 | $ | 3.24 | $ | 1.72 | |||
May 2016 | $ | 2.76 | $ | 1.92 | |||
August 2016 | $ | 4.33 | $ | 2.20 | |||
November 2016 | $ | 4.17 | $ | 3.22 | |||
February 2017 | $ | 3.68 | $ | 2.76 |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in 000’s) | |||||||||
Class A Common Stock | |||||||||||||
December 1, 2016 - December 31, 2016 | — | $ | — | — | $ | — | |||||||
January 1, 2017 - January 31, 2017 | 24,462 | $ | 3.16 | — | $ | — | |||||||
February 1, 2017 - February 28, 2017 | 11,411 | $ | 2.77 | — | $ | — | |||||||
35,873 | — |
Years ended February 28 (29), | ||||||||||||||||||||
2015 | % of Total | 2016 | % of Total | 2017 | % of Total | |||||||||||||||
Net revenues: | ||||||||||||||||||||
Local | $ | 136,283 | 57.3 | % | $ | 130,486 | 56.4 | % | $ | 121,841 | 56.8 | % | ||||||||
National | 29,793 | 12.5 | % | 26,994 | 11.7 | % | 21,706 | 10.1 | % | |||||||||||
Political | 1,434 | 0.6 | % | 661 | 0.3 | % | 2,163 | 1.0 | % | |||||||||||
Publication Sales | 6,076 | 2.6 | % | 5,612 | 2.4 | % | 4,193 | 2.0 | % | |||||||||||
Non Traditional | 23,810 | 10.0 | % | 25,683 | 11.1 | % | 22,936 | 10.7 | % | |||||||||||
Interactive | 12,894 | 5.4 | % | 13,223 | 5.7 | % | 14,737 | 6.9 | % | |||||||||||
LMA Fees | 10,331 | 4.3 | % | 10,331 | 4.5 | % | 10,331 | 4.8 | % | |||||||||||
Other | 17,317 | 7.3 | % | 18,443 | 7.9 | % | 16,661 | 7.7 | % | |||||||||||
Total net revenues | $ | 237,938 | $ | 231,433 | $ | 214,568 |
December 1, 2014 | December 1, 2015 | December 1, 2016 | |||
Discount Rate | 12.1% - 12.5% | 12.0% - 12.4% | 12.2% - 12.5% | ||
Long-term Revenue Growth Rate | 1.5% - 3.0% | 1.3% - 2.5% | 1.0% - 2.0% | ||
Mature Market Share | 3.2% - 29.2% | 3.2% - 29.3% | 3.1% - 30.4% | ||
Operating Profit Margin | 25.1% - 39.2% | 25.0% - 39.1% | 25.1% - 39.1% |
Radio Broadcasting Licenses | ||||||||
As of December 1, 2016 | ||||||||
Unit of Accounting | Carrying Value | Fair Value | Percentage by which fair value exceeds carrying value | |||||
New York Cluster | 71,615 | 101,914 | 42.3 | % | ||||
98.7FM (New York) | 46,390 | 46,390 | — | % | ||||
Austin Cluster | 34,719 | 34,719 | — | % | ||||
St. Louis Cluster | 24,758 | 24,758 | — | % | ||||
Indianapolis Cluster | 18,166 | 19,064 | 4.9 | % | ||||
KPWR-FM (Los Angeles) | 2,018 | 49,774 | 2,366.5 | % | ||||
Terre Haute Cluster | 643 | 643 | — | % | ||||
Total | 198,309 | 277,262 | 39.8 | % |
For the years ended February 28 (29), | ||||||||||||||
2016 | 2017 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Net revenues: | ||||||||||||||
Radio | $ | 169,228 | $ | 165,148 | $ | (4,080 | ) | (2.4 | )% | |||||
Publishing | 60,992 | 48,559 | (12,433 | ) | (20.4 | )% | ||||||||
Emerging Technologies | 1,213 | 861 | (352 | ) | (29.0 | )% | ||||||||
Total net revenues | $ | 231,433 | $ | 214,568 | $ | (16,865 | ) | (7.3 | )% |
For the year ended February 28, 2017 | |||||
Overall Market | Emmis | ||||
Market | Revenue Performance | Revenue Performance 1 | |||
New York | 0.2 | % | (2.8 | %) | |
Los Angeles | 3.3 | % | (14.7 | %) | |
St. Louis | 1.4 | % | 11.0 | % | |
Indianapolis | 0.8 | % | (4.3 | %) | |
Austin | 0.3 | % | (0.9 | %) | |
All Markets | 1.7 | % | (3.1 | %) |
For the years ended February 28 (29), | ||||||||||||||
2016 | 2017 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Station operating expenses excluding LMA fees and depreciation and amortization expense: | ||||||||||||||
Radio | $ | 116,862 | $ | 115,366 | $ | (1,496 | ) | (1.3 | )% | |||||
Publishing | 58,891 | 51,063 | (7,828 | ) | (13.3 | )% | ||||||||
Emerging Technologies | 7,641 | 13,656 | $ | 6,015 | 78.7 | % | ||||||||
Total station operating expenses excluding LMA fees and depreciation and amortization expense | $ | 183,394 | $ | 180,085 | $ | (3,309 | ) | (1.8 | )% |
For the years ended February 28 (29), | ||||||||||||||
2016 | 2017 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Corporate expenses excluding depreciation and amortization expense | $ | 13,023 | $ | 11,359 | $ | (1,664 | ) | (12.8 | )% |
For the years ended February 28 (29), | ||||||||||||||
2016 | 2017 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Impairment loss on intangible assets: | ||||||||||||||
Radio | $ | 5,440 | $ | 6,855 | $ | 1,415 | 26.0 | % | ||||||
Emerging Technologies | 4,059 | 2,988 | $ | (1,071 | ) | (26.4 | )% | |||||||
Impairment loss on intangible assets | $ | 9,499 | $ | 9,843 | $ | 344 | 3.6 | % |
For the years ended February 28 (29), | |||||||||||||
2016 | 2017 | $ Change | % Change | ||||||||||
(As reported, amounts in thousands) | |||||||||||||
Gain on sale of radio and publishing assets, net of disposition costs: | |||||||||||||
Radio | $ | — | $ | (3,478 | ) | $ | (3,478 | ) | N/A | ||||
Publishing | — | (20,079 | ) | (20,079 | ) | N/A | |||||||
Emerging Technologies | — | — | $ | — | N/A | ||||||||
Gain on sale of radio and publishing assets, net of disposition costs | $ | — | $ | (23,557 | ) | $ | (23,557 | ) | N/A |
For the years ended February 28 (29), | ||||||||||||||
2016 | 2017 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Depreciation and amortization: | ||||||||||||||
Radio | $ | 3,345 | $ | 3,462 | $ | 117 | 3.5 | % | ||||||
Publishing | 266 | 230 | (36 | ) | (13.5 | )% | ||||||||
Corporate & Emerging Technologies | 2,186 | 1,114 | (1,072 | ) | (49.0 | )% | ||||||||
Total depreciation and amortization | $ | 5,797 | $ | 4,806 | $ | (991 | ) | (17.1 | )% |
For the years ended February 28 (29), | ||||||||||||||
2016 | 2017 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Operating income (loss): | ||||||||||||||
Radio | $ | 43,527 | $ | 42,819 | $ | (708 | ) | (1.6 | )% | |||||
Publishing | 1,835 | 17,345 | 15,510 | 845.2 | % | |||||||||
Corporate & Emerging Technologies | (25,698 | ) | (28,256 | ) | (2,558 | ) | (10.0 | )% | ||||||
Total operating income (loss) | $ | 19,664 | $ | 31,908 | $ | 12,244 | 62.3 | % |
For the years ended February 28 (29), | ||||||||||||||
2016 | 2017 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Interest expense | $ | (18,956 | ) | $ | (18,018 | ) | $ | 938 | 4.9 | % |
For the years ended February 28 (29), | |||||||||||||
2016 | 2017 | $ Change | % Change | ||||||||||
(As reported, amounts in thousands) | |||||||||||||
Loss on debt extinguishment | $ | — | $ | (620 | ) | $ | (620 | ) | N/A |
For the years ended February 28 (29), | |||||||||||||
2016 | 2017 | $ Change | % Change | ||||||||||
(As reported, amounts in thousands) | |||||||||||||
Other (expense) income, net | $ | 1,057 | $ | (160 | ) | $ | (1,217 | ) | (115.1)% |
For the years ended February 28 (29), | ||||||||||||||
2016 | 2017 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Provision (benefit) for income taxes | $ | 2,069 | $ | (110 | ) | $ | (2,179 | ) | (105.3 | )% |
For the years ended February 28 (29), | |||||||||||||
2016 | 2017 | $ Change | % Change | ||||||||||
(As reported, amounts in thousands) | |||||||||||||
Consolidated net income (loss) | $ | (304 | ) | $ | 13,220 | $ | 13,524 | N/M |
For the years ended February 28 (29), | ||||||||||||||
2016 | 2017 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Loss on modification of preferred stock | $ | (162 | ) | $ | — | $ | 162 | (100.0 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Net revenues: | ||||||||||||||
Radio | $ | 176,250 | $ | 169,228 | $ | (7,022 | ) | (4.0 | )% | |||||
Publishing | 61,142 | 60,992 | (150 | ) | (0.2 | )% | ||||||||
Emerging Technologies | 546 | 1,213 | $ | 667 | 122.2 | % | ||||||||
Total net revenues | $ | 237,938 | $ | 231,433 | $ | (6,505 | ) | (2.7 | )% |
For the year ended February 29, 2016 | |||||
Overall Market | Emmis | ||||
Market | Revenue Performance | Revenue Performance 1 | |||
New York | (2.5 | %) | (4.8 | %) | |
Los Angeles | (0.2 | %) | (14.2 | %) | |
St. Louis | (3.2 | %) | 2.0 | % | |
Indianapolis | (1.2 | %) | 4.5 | % | |
Austin | (2.7 | %) | (4.3 | %) | |
All Markets | (1.5 | %) | (4.6 | %) |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Station operating expenses, excluding depreciation and amortization expense: | ||||||||||||||
Radio | $ | 117,167 | $ | 116,862 | $ | (305 | ) | (0.3 | )% | |||||
Publishing | 60,083 | 58,891 | (1,192 | ) | (2.0 | )% | ||||||||
Emerging Technologies | 3,759 | 7,641 | $ | 3,882 | 103.3 | % | ||||||||
Total station operating expenses, excluding depreciation and amortization expense | $ | 181,009 | $ | 183,394 | $ | 2,385 | 1.3 | % |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Corporate expenses excluding depreciation and amortization expense | $ | 14,922 | $ | 13,023 | $ | (1,899 | ) | (12.7 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
LMA fees | $ | 4,208 | $ | — | $ | (4,208 | ) | (100.0 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Hungary license litigation expense | $ | 521 | $ | — | $ | (521 | ) | (100.0 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Impairment loss on intangible assets | $ | 67,915 | $ | 9,499 | $ | (58,416 | ) | (86.0 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Depreciation and amortization: | ||||||||||||||
Radio | $ | 3,143 | $ | 3,345 | $ | 202 | 6.4 | % | ||||||
Publishing | 245 | 266 | 21 | 8.6 | % | |||||||||
Corporate & Emerging Technologies | 2,538 | 2,186 | (352 | ) | (13.9 | )% | ||||||||
Total depreciation and amortization | $ | 5,926 | $ | 5,797 | $ | (129 | ) | (2.2 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Gain on contract settlement | $ | (2,500 | ) | $ | — | $ | 2,500 | (100 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Operating income (loss): | ||||||||||||||
Radio | $ | (14,204 | ) | $ | 43,527 | $ | 57,731 | (406.4 | )% | |||||
Publishing | 814 | 1,835 | 1,021 | 125.4 | % | |||||||||
Corporate & Emerging Technologies | (20,673 | ) | (25,698 | ) | (5,025 | ) | 24.3 | % | ||||||
Total operating income (loss) | $ | (34,063 | ) | $ | 19,664 | $ | 53,727 | (157.7 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Interest expense | $ | (17,101 | ) | $ | (18,956 | ) | $ | (1,855 | ) | 10.8 | % |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Loss on debt extinguishment | $ | (1,455 | ) | $ | — | $ | 1,455 | (100.0 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Other income (expense), net | $ | (6,418 | ) | $ | 1,057 | $ | 7,475 | 116.5 | % |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Provision for income taxes | $ | 36,948 | $ | 2,069 | $ | (34,879 | ) | (94.4 | )% |
For the years ended February 28 (29), | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
(As reported, amounts in thousands) | ||||||||||||||
Consolidated net loss | $ | (95,985 | ) | $ | (304 | ) | $ | 95,681 | 99.7 | % |
For the years ended February 28 (29), | |||||||||||||
2015 | 2016 | $ Change | % Change | ||||||||||
(As reported, amounts in thousands) | |||||||||||||
Loss on modification of preferred stock | $ | — | $ | (162 | ) | $ | 162 | N/A |
For the years ended February 28 (29), | |||||||||||
2015 | 2016 | 2017 | |||||||||
NET REVENUES | $ | 237,938 | $ | 231,433 | $ | 214,568 | |||||
OPERATING EXPENSES: | |||||||||||
Station operating expenses excluding depreciation and amortization expense of $3,984, $4,713, and $3,998 respectively | 181,009 | 183,394 | 180,085 | ||||||||
Corporate expenses excluding depreciation and amortization expense of $1,942, $1,084, and $808 respectively | 14,922 | 13,023 | 11,359 | ||||||||
LMA fees | 4,208 | — | — | ||||||||
Hungary license litigation expense | 521 | — | — | ||||||||
Impairment loss on intangible assets | 67,915 | 9,499 | 9,843 | ||||||||
Depreciation and amortization | 5,926 | 5,797 | 4,806 | ||||||||
Gain on contract settlement | (2,500 | ) | — | — | |||||||
Gain on sale of radio and publishing assets, net of disposition costs | — | — | (23,557 | ) | |||||||
Loss on sale of assets | — | 56 | 124 | ||||||||
Total operating expenses | 272,001 | 211,769 | 182,660 | ||||||||
OPERATING (LOSS) INCOME | (34,063 | ) | 19,664 | 31,908 | |||||||
OTHER EXPENSE: | |||||||||||
Interest expense | (17,101 | ) | (18,956 | ) | (18,018 | ) | |||||
Loss on debt extinguishment | (1,455 | ) | — | (620 | ) | ||||||
Other (expense) income, net | (6,418 | ) | 1,057 | (160 | ) | ||||||
Total other expense | (24,974 | ) | (17,899 | ) | (18,798 | ) | |||||
(LOSS) INCOME BEFORE INCOME TAXES | (59,037 | ) | 1,765 | 13,110 | |||||||
PROVISION (BENEFIT) FOR INCOME TAXES | 36,948 | 2,069 | (110 | ) | |||||||
CONSOLIDATED NET (LOSS) INCOME | (95,985 | ) | (304 | ) | 13,220 | ||||||
NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 3,274 | (2,418 | ) | 101 | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY | (99,259 | ) | 2,114 | 13,119 | |||||||
LOSS ON MODIFICATION OF PREFERRED STOCK | — | (162 | ) | — | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | (99,259 | ) | $ | 1,952 | $ | 13,119 |
For the years ended February 28 (29), | |||||||||||
2015 | 2016 | 2017 | |||||||||
Amounts attributable to common shareholders for basic earnings per share | $ | (99,259 | ) | $ | 1,952 | $ | 13,119 | ||||
Amounts attributable to common shareholders for diluted earnings per share | $ | (99,259 | ) | $ | 1,952 | $ | 13,119 | ||||
Basic net (loss) income per share attributable to common shareholders: | $ | (9.33 | ) | $ | 0.18 | $ | 1.09 | ||||
Diluted net (loss) income per share attributable to common shareholders: | $ | (9.33 | ) | $ | 0.17 | $ | 1.07 | ||||
Basic weighted average common shares outstanding | 10,634 | 11,034 | 12,040 | ||||||||
Diluted weighted average common shares outstanding | 10,634 | 11,316 | 12,229 |
For the year ended February 28 (29), | |||||||||||
2015 | 2016 | 2017 | |||||||||
CONSOLIDATED NET (LOSS) INCOME | $ | (95,985 | ) | $ | (304 | ) | $ | 13,220 | |||
OTHER COMPREHENSIVE INCOME: | |||||||||||
Change in value of derivative instrument | 99 | — | — | ||||||||
COMPREHENSIVE (LOSS) INCOME | (95,886 | ) | (304 | ) | 13,220 | ||||||
LESS: COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 3,274 | (2,418 | ) | 101 | |||||||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | (99,160 | ) | $ | 2,114 | $ | 13,119 |
FEBRUARY 28 (29), | |||||||
2016 | 2017 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 4,456 | $ | 11,349 | |||
Restricted cash | 1,464 | 2,323 | |||||
Accounts receivable, net of allowance for doubtful accounts of $934 and $903, respectively | 34,906 | 26,484 | |||||
Prepaid expenses | 7,413 | 4,798 | |||||
Other | 3,452 | 1,503 | |||||
Total current assets | 51,691 | 46,457 | |||||
PROPERTY AND EQUIPMENT: | |||||||
Land and buildings | 27,689 | 27,242 | |||||
Leasehold improvements | 13,934 | 13,142 | |||||
Broadcasting equipment | 43,926 | 43,566 | |||||
Office equipment and automobiles | 31,248 | 27,810 | |||||
Construction in progress | 544 | 1,474 | |||||
117,341 | 113,234 | ||||||
Less-accumulated depreciation and amortization | 83,498 | 82,389 | |||||
Total property and equipment, net | 33,843 | 30,845 | |||||
INTANGIBLE ASSETS: | |||||||
Indefinite lived intangibles | 205,129 | 197,666 | |||||
Goodwill | 14,697 | 4,603 | |||||
Other intangibles | 6,224 | 3,165 | |||||
226,050 | 205,434 | ||||||
Less-accumulated amortization | 2,925 | 1,642 | |||||
Total intangible assets, net | 223,125 | 203,792 | |||||
OTHER ASSETS: | |||||||
Investments | 1,137 | 800 | |||||
Deposits and other | 6,810 | 7,444 | |||||
Total other assets | 7,947 | 8,244 | |||||
Total assets | $ | 316,606 | $ | 289,338 |
FEBRUARY 28 (29), | |||||||
2016 | 2017 | ||||||
LIABILITIES AND DEFICIT | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued expenses | $ | 8,127 | $ | 13,398 | |||
Current maturities of long-term debt | 17,573 | 23,600 | |||||
Accrued salaries and commissions | 8,375 | 6,238 | |||||
Deferred revenue | 11,435 | 4,560 | |||||
Other | 5,775 | 6,807 | |||||
Total current liabilities | 51,285 | 54,603 | |||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 228,027 | 190,372 | |||||
OTHER NONCURRENT LIABILITIES | 7,728 | 4,842 | |||||
DEFERRED INCOME TAXES | 43,715 | 43,537 | |||||
Total liabilities | 330,755 | 293,354 | |||||
COMMITMENTS AND CONTINGENCIES (NOTE 11) | |||||||
SHAREHOLDERS’ DEFICIT: | ` | ||||||
Class A common stock, $0.01 par value; authorized 42,500,000 shares; issued and outstanding 10,402,400 shares and 11,278,065 shares at February 29, 2016 and February 28, 2017, respectively | 104 | 113 | |||||
Class B common stock, $0.01 par value; authorized 7,500,000 shares; issued and outstanding 1,142,366 shares at February 28 (29), 2016 and 2017 | 11 | 11 | |||||
Class C common stock, $0.01 par value; authorized 7,500,000 shares; none issued | — | — | |||||
Series A convertible preferred stock, $.01 par value; $50.00 liquidation preference per share, aggregate liquidation preference and redemption amount of $43,316 at February 29, 2016; authorized 2,875,000 shares; issued and outstanding 866,319 at February 29, 2016 | 9 | — | |||||
Additional paid-in capital | 589,830 | 592,320 | |||||
Accumulated deficit | (642,500 | ) | (629,381 | ) | |||
Total shareholders’ deficit | (52,546 | ) | (36,937 | ) | |||
NONCONTROLLING INTERESTS | 38,397 | 32,921 | |||||
Total deficit | (14,149 | ) | (4,016 | ) | |||
Total liabilities and deficit | $ | 316,606 | $ | 289,338 |
Class A Common Stock | Class B Common Stock | Series A Preferred Stock | ||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||
BALANCE, FEBRUARY 28, 2014 | 9,316,781 | $ | 93 | 1,142,366 | $ | 11 | 928,991 | $ | 9 | |||||||||||
Net (loss) income | — | — | — | — | — | — | ||||||||||||||
Exercise of stock options and related income tax benefits | 198,096 | 2 | — | — | — | — | ||||||||||||||
Issuance of Common Stock to employees and officers and related income tax benefits | 96,978 | 1 | — | — | — | — | ||||||||||||||
Distribution of 2012 Retention Plan Trust, net of taxes | 151,825 | 2 | — | — | — | — | ||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ||||||||||||||
Acquisition of noncontrolling interest | — | — | — | — | — | — | ||||||||||||||
Change in value of derivative instrument | — | — | — | — | — | — | ||||||||||||||
BALANCE, FEBRUARY 28, 2015 | 9,763,680 | $ | 98 | 1,142,366 | $ | 11 | 928,991 | $ | 9 | |||||||||||
Net (loss) income | — | — | — | — | — | — | ||||||||||||||
Exercise of stock options and related income tax benefits | 47,500 | — | — | — | — | — | ||||||||||||||
Issuance of Common Stock to employees and officers and related income tax benefits | 552,990 | 6 | — | — | — | — | ||||||||||||||
Conversion of Preferred Stock to Class A Common Stock | 38,230 | — | — | (62,672 | ) | — | ||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ||||||||||||||
BALANCE, FEBRUARY 29, 2016 | 10,402,400 | $ | 104 | 1,142,366 | $ | 11 | 866,319 | $ | 9 | |||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||
Exercise of stock options and related income tax benefits | 57,738 | 1 | — | — | — | — | ||||||||||||||
Issuance of Common Stock to employees and officers and related income tax benefits | 213,197 | 2 | — | — | — | — | ||||||||||||||
Conversion of Preferred Stock to Class A Common Stock | 606,423 | 6 | — | (866,319 | ) | (9 | ) | |||||||||||||
Purchase of Class A Common Stock | (1,693 | ) | — | |||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ||||||||||||||
BALANCE, FEBRUARY 28, 2017 | 11,278,065 | $ | 113 | 1,142,366 | $ | 11 | — | $ | — |
Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total Equity (Deficit) | ||||||||||
BALANCE, FEBRUARY 28, 2014 | 581,091 | (545,355 | ) | (99 | ) | 47,618 | 83,368 | |||||||
Net (loss) income | — | (99,259 | ) | — | 3,274 | (95,985 | ) | |||||||
Exercise of stock options and related income tax benefits | 417 | — | — | — | 419 | |||||||||
Issuance of Common Stock to employees and officers and related income tax benefits | 2,122 | — | — | — | 2,123 | |||||||||
Distribution of 2012 Retention Plan Trust, net of taxes | 2,056 | — | — | — | 2,058 | |||||||||
Distributions to noncontrolling interests | — | — | — | (5,428 | ) | (5,428 | ) | |||||||
Acquisition of noncontrolling interests | — | — | — | 1,197 | 1,197 | |||||||||
Change in value of derivative instrument | — | — | 99 | — | 99 | |||||||||
BALANCE, FEBRUARY 28, 2015 | 585,686 | (644,614 | ) | — | 46,661 | (12,149 | ) | |||||||
Net (loss) income | — | 2,114 | — | (2,418 | ) | (304 | ) | |||||||
Exercise of stock options and related income tax benefits | 135 | — | — | — | 135 | |||||||||
Issuance of Common Stock to employees and officers and related income tax benefits | 4,008 | — | — | — | 4,014 | |||||||||
Conversion of Preferred Stock to Class A Common Stock | 1 | — | — | — | 1 | |||||||||
Distributions to noncontrolling interests | — | — | — | (5,846 | ) | (5,846 | ) | |||||||
BALANCE, FEBRUARY 29, 2016 | 589,830 | (642,500 | ) | — | 38,397 | (14,149 | ) | |||||||
Net income | — | 13,119 | — | 101 | 13,220 | |||||||||
Exercise of stock options and related income tax benefits | 114 | — | — | — | 115 | |||||||||
Issuance of Common Stock to employees and officers and related income tax benefits | 2,372 | — | — | — | 2,374 | |||||||||
Conversion of Preferred Stock to Class A Common Stock | 9 | — | — | — | 6 | |||||||||
Purchase of Class A Common Stock | (5 | ) | — | — | — | (5 | ) | |||||||
Distributions to noncontrolling interests | — | — | — | (5,577 | ) | (5,577 | ) | |||||||
BALANCE, FEBRUARY 28, 2017 | 592,320 | (629,381 | ) | — | 32,921 | (4,016 | ) |
FOR THE YEARS ENDED FEBRUARY 28 (29), | ||||||||
2015 | 2016 | 2017 | ||||||
OPERATING ACTIVITIES: | ||||||||
Consolidated net (loss) income | (95,985 | ) | (304 | ) | 13,220 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities— | ||||||||
Gain on sale of radio and publishing assets, net of disposition costs | — | — | (23,557 | ) | ||||
Impairment losses on intangible assets | 67,915 | 9,499 | 9,843 | |||||
Loss on debt extinguishment | 1,455 | — | 620 | |||||
Noncash accretion of debt instruments to interest expense | 3,472 | 743 | 743 | |||||
Amortization of deferred financing costs, including original issue discount | 1,227 | 1,667 | 1,661 | |||||
Depreciation and amortization | 5,926 | 5,797 | 4,806 | |||||
Provision for bad debts | 627 | 626 | 377 | |||||
Provision (benefit) for deferred income taxes | 36,719 | 2,100 | (178 | ) | ||||
Noncash compensation | 2,813 | 4,904 | 2,920 | |||||
Loss on investments including other-than-temporary impairment | 6,682 | — | 254 | |||||
Loss on sale of assets | — | 56 | 124 | |||||
Changes in assets and liabilities— | ||||||||
Restricted cash | (501 | ) | 1,276 | (209 | ) | |||
Accounts receivable | (6,954 | ) | 1,796 | 3,460 | ||||
Prepaid expenses and other current assets | (1,527 | ) | 1,289 | 1,639 | ||||
Other assets | (682 | ) | (1,583 | ) | (644 | ) | ||
Accounts payable and accrued liabilities | (373 | ) | (1,236 | ) | 5,131 | |||
Deferred revenue | 62 | (133 | ) | (294 | ) | |||
Income taxes | (30 | ) | (117 | ) | (76 | ) | ||
Other liabilities | (2,390 | ) | (1,266 | ) | (788 | ) | ||
Net cash provided by operating activities | 18,456 | 25,114 | 19,052 | |||||
INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (3,514 | ) | (3,388 | ) | (2,850 | ) | ||
Cash paid for acquisitions | (136,006 | ) | — | — | ||||
Proceeds from the sale of assets | 3 | — | 31,330 | |||||
(Cash paid for) received from investments, net | (516 | ) | 107 | 54 | ||||
Other | (185 | ) | — | (35 | ) | |||
Net cash (used in) provided by investing activities | (140,218 | ) | (3,281 | ) | 28,499 |
FOR THE YEARS ENDED FEBRUARY 28 (29), | |||||||||||
2015 | 2016 | 2017 | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Payments on long-term debt | (79,541 | ) | (24,228 | ) | (55,970 | ) | |||||
Proceeds from long-term debt | 214,000 | 11,000 | 21,350 | ||||||||
Settlement of tax withholding obligations | (1,466 | ) | (971 | ) | (539 | ) | |||||
Dividends and distributions paid to noncontrolling interests | (5,428 | ) | (5,846 | ) | (5,577 | ) | |||||
Proceeds from exercise of stock options and employee stock purchases | 411 | 133 | 115 | ||||||||
Payments for debt related costs | (7,849 | ) | (1,134 | ) | (32 | ) | |||||
Other | — | — | (5 | ) | |||||||
Net cash provided by (used in) financing activities | 120,127 | (21,046 | ) | (40,658 | ) | ||||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (1,635 | ) | 787 | 6,893 | |||||||
CASH AND CASH EQUIVALENTS: | |||||||||||
Beginning of period | 5,304 | 3,669 | 4,456 | ||||||||
End of period | $ | 3,669 | $ | 4,456 | $ | 11,349 | |||||
SUPPLEMENTAL DISCLOSURES: | |||||||||||
Cash paid for — | |||||||||||
Interest | $ | 9,781 | $ | 16,742 | $ | 15,618 | |||||
Income taxes | 243 | 216 | 112 | ||||||||
Noncash financing transactions— | |||||||||||
Value of stock issued to employees under stock compensation program and to satisfy accrued incentives | 5,637 | 4,963 | 2,920 |
Balance At Beginning Of Year | Provision | Write-Offs | Balance At End Of Year | ||||||||||||
Year ended February 28, 2015 | $ | 574 | $ | 627 | $ | (536 | ) | $ | 665 | ||||||
Year ended February 29, 2016 | 665 | 626 | (357 | ) | 934 | ||||||||||
Year ended February 28, 2017 | 934 | 377 | (408 | ) | 903 |
For the years ended February 28 (29), | |||||||||||
2015 | 2016 | 2017 | |||||||||
98.7FM, New York | $ | 10,331 | $ | 10,331 | $ | 10,331 |
For the years ending February 28 (29), | |||||||
2016 | 2017 | ||||||
98.7FM LMA restricted cash (see Note 8) | $ | 1,464 | $ | 1,550 | |||
NextRadio LLC restricted cash (see Note 8) | — | 123 | |||||
Cash held in escrow from magazine sale restricted cash (see Note 7) | — | 650 | |||||
Total investments | $ | 1,464 | $ | 2,323 |
For the years ending February 28 (29), | |||||||
2016 | 2017 | ||||||
Available-for-sale investment | $ | 800 | $ | 800 | |||
Equity method investment | 337 | — | |||||
Total investments | $ | 1,137 | $ | 800 |
For the year ended | ||||||||||||||||||||||||||||||||
February 28, 2015 | February 29, 2016 | February 28, 2017 | ||||||||||||||||||||||||||||||
Net Loss | Shares | Net Loss Per Share | Net Income | Shares | Net Income Per Share | Net Income | Shares | Net Income Per Share | ||||||||||||||||||||||||
(amounts in 000’s, except per share data) | ||||||||||||||||||||||||||||||||
Basic net income (loss) per common share: | ||||||||||||||||||||||||||||||||
Net income (loss) available to common shareholders from continuing operations | $ | (99,259 | ) | 10,634 | $ | (9.33 | ) | $ | 1,952 | 11,034 | $ | 0.18 | $ | 13,119 | 12,040 | $ | 1.09 | |||||||||||||||
Impact of equity awards | — | — | — | 282 | — | 189 | ||||||||||||||||||||||||||
Diluted net income (loss) per common share: | ||||||||||||||||||||||||||||||||
Net income (loss) available to common shareholders from continuing operations | $ | (99,259 | ) | 10,634 | $ | (9.33 | ) | $ | 1,952 | 11,316 | $ | 0.17 | $ | 13,119 | 12,229 | $ | 1.07 |
For the year ended February 28 (29), | ||||||||
2015 | 2016 | 2017 | ||||||
(shares in 000’s ) | ||||||||
Preferred stock | 567 | 607 | — | |||||
Stock options and restricted stock awards | 1,081 | 1,279 | 1,341 | |||||
Antidilutive common share equivalents | 1,648 | 1,886 | 1,341 |
Austin radio partnership | Digonex | Total noncontrolling interests | ||||||||||
Balance, February 28, 2015 | $ | 47,883 | $ | (1,222 | ) | $ | 46,661 | |||||
Net income (loss) | 5,519 | (7,937 | ) | (2,418 | ) | |||||||
Payments of dividends and distributions to noncontrolling interests | (5,846 | ) | — | (5,846 | ) | |||||||
Balance, February 29, 2016 | 47,556 | (9,159 | ) | 38,397 | ||||||||
Net income (loss) | 4,851 | (4,750 | ) | 101 | ||||||||
Payments of dividends and distributions to noncontrolling interests | (5,577 | ) | — | (5,577 | ) | |||||||
Balance, February 28, 2017 | $ | 46,830 | $ | (13,909 | ) | $ | 32,921 |
For the Years Ended February 28 (29), | |||||
2015 | 2016 | 2017 | |||
Risk-Free Interest Rate: | 1.2% - 1.5% | 1.2% - 1.4% | 0.9% - 1.8% | ||
Expected Dividend Yield: | 0% | 0% | 0% | ||
Expected Life (Years): | 4.3 | 4.3 | 4.3 - 4.4 | ||
Expected Volatility: | 69.0% - 73.9% | 57.2% - 64.6% | 52.9% - 60.0% |
Options | Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
Outstanding, beginning of period | 1,948,384 | $ | 6.36 | |||||||||
Granted | 704,678 | 2.68 | ||||||||||
Exercised (1) | 57,738 | 1.98 | ||||||||||
Forfeited | 12,499 | 7.12 | ||||||||||
Expired | 23,182 | 36.62 | ||||||||||
Outstanding, end of period | 2,559,643 | 5.17 | 7.0 | $ | 346 | |||||||
Exercisable, end of period | 1,469,268 | 5.63 | 5.4 | $ | 254 |
(1) | The Company did not record an income tax benefit related to option exercises in the years ended February 2015, 2016 and 2017. Cash received from option exercises during the years ended February 2015, 2016 and 2017 was $0.4 million, $0.1 million and $0.1 million, respectively. |
Options | Weighted Average Grant Date Fair Value | |||||
Nonvested, beginning of period | 830,803 | $ | 3.71 | |||
Granted | 704,678 | 1.20 | ||||
Vested | 432,607 | 3.28 | ||||
Forfeited | 12,499 | 3.62 | ||||
Nonvested, end of period | 1,090,375 | 2.26 |
Awards | Price | |||||
Grants outstanding, beginning of period | 212,995 | $ | 7.12 | |||
Granted | 389,084 | 3.11 | ||||
Vested (restriction lapsed) | 405,373 | 4.48 | ||||
Forfeited | — | — | ||||
Grants outstanding, end of period | 196,706 | 4.64 |
Year Ended February 28 (29), | |||||||||||
2015 | 2016 | 2017 | |||||||||
Station operating expenses | $ | 720 | $ | 1,760 | $ | 1,012 | |||||
Corporate expenses | 2,093 | 3,144 | 1,908 | ||||||||
Stock-based compensation expense included in operating expenses | 2,813 | 4,904 | 2,920 | ||||||||
Tax benefit | — | — | — | ||||||||
Recognized stock-based compensation expense, net of tax | $ | 2,813 | $ | 4,904 | $ | 2,920 |
As of February 29, 2016 | As of February 28, 2017 | ||||||
Revolver | 3,000 | — | |||||
Term Loan | 181,762 | 152,245 | |||||
Total 2014 Credit Agreement debt | 184,762 | 152,245 | |||||
Other nonrecourse debt (1) | 4,714 | 8,807 | |||||
98.7FM nonrecourse debt | 65,411 | 59,958 | |||||
Current maturities | (17,573 | ) | (23,600 | ) | |||
Unamortized original issue discount | (9,287 | ) | (7,038 | ) | |||
Total long-term debt | $ | 228,027 | $ | 190,372 |
Term Loan Mandatory Repayment Texas Monthly Sale | |||
Gross proceeds from the sale of Texas Monthly | $ | 25,000 | |
Working capital and other closing adjustments | (747 | ) | |
Transaction costs, including severance | (1,378 | ) | |
Subtotal | 22,875 | ||
Less: Reinvestments (estimated) | (3,475 | ) | |
Less: Term Loan repayment on November 1, 2016 | (15,000 | ) | |
Remaining Net Available Proceeds, subject to finalization of reinvestments | $ | 4,400 |
As of February 28, 2017 | |||
Covenant Requirement | Actual Results | ||
Maximum Total Leverage Ratio | 5.75 : 1.00 | 5.20 : 1.00 | |
Minimum Interest Coverage Ratio | 2.00 : 1.00 | 2.35 : 1.00 |
2014 Credit Agreement | |||||||||||||||||||
Year ended February 28 (29), | Revolver | Term Loan | 98.7FM Debt | Other Nonrecourse Debt | Total | ||||||||||||||
2018 | $ | — | $ | 12,104 | $ | 6,039 | $ | 6,199 | $ | 24,342 | |||||||||
2019 | — | 4,717 | 6,587 | — | 11,304 | ||||||||||||||
2020 | — | 135,424 | 7,150 | — | 142,574 | ||||||||||||||
2021 | — | — | 7,755 | — | 7,755 | ||||||||||||||
2022 | — | — | 8,394 | — | 8,394 | ||||||||||||||
Thereafter | — | — | 24,033 | 3,350 | 27,383 | ||||||||||||||
Total | $ | — | $ | 152,245 | $ | 59,958 | $ | 9,549 | $ | 221,752 |
As of February 28, 2017 | |||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | ||||||||||||
Available for sale securities | $ | — | $ | — | $ | 800 | $ | 800 | |||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | — | $ | 800 | $ | 800 | |||||||
As of February 29, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | ||||||||||||
Available for sale securities | $ | — | $ | — | $ | 800 | $ | 800 | |||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | — | $ | 800 | $ | 800 |
Year Ended February 28 (29), | |||||||
2016 | 2017 | ||||||
Available For Sale Securities | |||||||
Beginning Balance | $ | 500 | $ | 800 | |||
Purchases | 300 | — | |||||
Ending Balance | $ | 800 | $ | 800 |
For the year ended February 28 (29), | |||||||||
2015 | 2016 | 2017 | |||||||
Net revenues | $ | 31,380 | $ | 31,819 | $ | 29,112 | |||
Station operating expenses, excluding depreciation and amortization expense | 31,139 | 31,385 | 31,076 | ||||||
Depreciation and amortization | 106 | 125 | 122 | ||||||
Gain on sale of publishing assets, net of disposition costs | — | — | (2,677 | ) | |||||
Operating income | 135 | 309 | 591 | ||||||
Interest expense | 136 | 173 | 176 | ||||||
(Loss) income before income taxes | (1 | ) | 136 | 415 |
For the year ended February 28 (29), | |||||||||
2015 | 2016 | 2017 | |||||||
Net revenues | $ | 2,684 | $ | 2,418 | $ | 2,298 | |||
Station operating expenses, excluding depreciation and amortization expense | 2,607 | 2,395 | 2,258 | ||||||
Depreciation and amortization | 147 | 163 | 117 | ||||||
Impairment loss | 58 | 39 | 79 | ||||||
Gain on sale of radio assets, net of disposition costs | — | — | (3,478 | ) | |||||
Operating (loss) income | (128 | ) | (179 | ) | 3,322 | ||||
Interest expense | 254 | 324 | 330 | ||||||
(Loss) income before income taxes | (382 | ) | (503 | ) | 2,992 |
For the year ended February 28 (29), | |||||||||
2015 | 2016 | 2017 | |||||||
Net revenues | $ | 24,186 | $ | 23,561 | $ | 14,685 | |||
Station operating expenses, excluding depreciation and amortization expense | 22,446 | 21,527 | 14,465 | ||||||
Depreciation and amortization | 116 | 118 | 84 | ||||||
Gain on sale of publishing assets, net of disposition costs | — | — | (17,402 | ) | |||||
Operating income | 1,624 | 1,916 | 17,538 | ||||||
Interest expense | 1,047 | 1,334 | 1,358 | ||||||
Other income | (15 | ) | (370 | ) | (37 | ) | |||
Income before income taxes | 592 | 952 | 16,217 |
For the year ended February 28 (29), | |||||||
2016 | 2017 | ||||||
(unaudited) | (unaudited) | ||||||
Net revenues | $ | 173,635 | $ | 168,473 | |||
Station operating expenses, excluding depreciation and amortization | 128,087 | 132,286 | |||||
Consolidated net loss | (889 | ) | (6,404 | ) | |||
Net income (loss) attributable to the Company | 1,529 | (6,505 | ) | ||||
Net income (loss) per share - basic | $ | 0.12 | $ | (0.54 | ) | ||
Net income (loss) per share - diluted | $ | 0.12 | $ | (0.54 | ) |
For the year ended February 28 (29), | |||||||||||
2015 | 2016 | 2017 | |||||||||
Net revenues | $ | 10,331 | $ | 10,331 | $ | 10,331 | |||||
Station operating expenses, excluding depreciation and amortization expense | 1,002 | 1,000 | 1,275 | ||||||||
Impairment loss on intangible assets (Note 9) | 9,462 | 1,766 | 2,907 | ||||||||
Depreciation and amortization | — | 21 | 21 | ||||||||
Interest expense | 3,238 | 3,042 | 2,827 |
As of February 28 (29), | |||||||
2016 | 2017 | ||||||
Current assets: | |||||||
Restricted cash | $ | 1,464 | $ | 1,550 | |||
Prepaid expenses | 545 | 445 | |||||
Other | — | 7 | |||||
Total current assets | 2,009 | 2,002 | |||||
Noncurrent assets: | |||||||
Property and equipment | 253 | 229 | |||||
Indefinite lived intangibles | 49,297 | 46,390 | |||||
Deposits and other | 5,460 | 6,205 | |||||
Total noncurrent assets | 55,010 | 52,824 | |||||
Total assets | $ | 57,019 | $ | 54,826 | |||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 14 | $ | 54 | |||
Current maturities of long-term debt | 5,453 | 6,039 | |||||
Deferred revenue | 779 | 807 | |||||
Other current liabilities | 223 | 205 | |||||
Total current liabilities | 6,469 | 7,105 | |||||
Noncurrent liabilities: | |||||||
Long-term debt, net of current portion | 57,728 | 51,954 | |||||
Other noncurrent liabilities | — | — | |||||
Total noncurrent liabilities | 57,728 | 51,954 | |||||
Total liabilities | $ | 64,197 | $ | 59,059 |
Interim Assessment | Annual Assessment | |||||||||||||||||||
FCC Licenses | Goodwill | Definite-lived | FCC Licenses | Goodwill | Definite-lived | Total | ||||||||||||||
Year Ended February 28, 2015 | — | — | — | 9,520 | 58,395 | — | 67,915 | |||||||||||||
Year Ended February 29, 2016 | — | — | — | 5,440 | 695 | 3,364 | 9,499 | |||||||||||||
Year Ended February 28, 2017 | — | 2,058 | 930 | 6,855 | — | — | 9,843 |
December 1, 2014 | December 1, 2015 | December 1, 2016 | |||
Discount Rate | 12.1% - 12.5% | 12.0% - 12.4% | 12.2% - 12.5% | ||
Long-term Revenue Growth Rate | 1.5% - 3.0% | 1.3% - 2.5% | 1.0% - 2.0% | ||
Mature Market Share | 3.2% - 29.2% | 3.2% - 29.3% | 3.1% - 30.4% | ||
Operating Profit Margin | 25.1% - 39.2% | 25.0% - 39.1% | 25.1% - 39.1% |
Change in FCC License Carrying Values | ||||||||||||||||||||||||||||||||
Unit of Accounting | As of February 28, 2015 | Purchase | Impairment | As of February 29, 2016 | Purchase | Sale of Stations | Impairment | As of February 28, 2017 | ||||||||||||||||||||||||
New York Cluster | $ | 71,616 | $ | — | $ | — | $ | 71,616 | $ | — | $ | — | $ | — | 71,616 | |||||||||||||||||
98.7FM (New York) | 51,063 | — | (1,766 | ) | $ | 49,297 | — | — | (2,907 | ) | 46,390 | |||||||||||||||||||||
Austin Cluster | 39,255 | — | (2,343 | ) | $ | 36,912 | — | — | (2,192 | ) | 34,720 | |||||||||||||||||||||
St. Louis Cluster | 27,692 | — | (1,293 | ) | $ | 26,399 | 34 | — | (1,677 | ) | 24,756 | |||||||||||||||||||||
Indianapolis Cluster | 17,654 | 512 | — | $ | 18,166 | — | — | — | 18,166 | |||||||||||||||||||||||
KPWR-FM (Los Angeles) | 2,018 | — | — | $ | 2,018 | — | — | — | 2,018 | |||||||||||||||||||||||
Terre Haute Cluster | 759 | — | (38 | ) | $ | 721 | — | (642 | ) | (79 | ) | — | ||||||||||||||||||||
Total | $ | 210,057 | $ | 512 | $ | (5,440 | ) | $ | 205,129 | $ | 34 | $ | (642 | ) | $ | (6,855 | ) | 197,666 |
Change in Goodwill Carrying Values | ||||||||||||||||||||||||
Reporting Unit (Segment) | As of February 28, 2015 | Impairment | As of February 29, 2016 | Sale of Entity | Impairment | As of February 28, 2017 | ||||||||||||||||||
Indianapolis Cluster (Radio) | $ | 265 | $ | — | $ | 265 | $ | — | $ | — | $ | 265 | ||||||||||||
Austin Cluster (Radio) | 4,338 | — | 4,338 | — | — | 4,338 | ||||||||||||||||||
Texas Monthly (Publishing) | 8,036 | — | 8,036 | (8,036 | ) | — | — | |||||||||||||||||
Digonex (Corporate & Emerging Technologies) | 2,753 | (695 | ) | 2,058 | — | (2,058 | ) | — | ||||||||||||||||
Total | $ | 15,392 | $ | (695 | ) | $ | 14,697 | $ | (8,036 | ) | $ | (2,058 | ) | $ | 4,603 |
As of February 29, 2016 | As of February 28, 2017 | ||||||||||||||||||||||||
Weighted Average Remaining Useful Life (in years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Trademarks | 8.5 | $ | 1,240 | $ | 727 | $ | 513 | $ | 696 | $ | 545 | $ | 151 | ||||||||||||
Patents | N/A | 1,815 | 1,141 | 674 | — | — | — | ||||||||||||||||||
Programming Contract | 4.6 | 2,154 | 514 | 1,640 | 2,154 | 808 | 1,346 | ||||||||||||||||||
Customer List | 0.3 | 1,015 | 543 | 472 | 315 | 289 | 26 | ||||||||||||||||||
Total | $ | 6,224 | $ | 2,925 | $ | 3,299 | $ | 3,165 | $ | 1,642 | $ | 1,523 |
Year ended February 28 (29), | Expected Amortization Expense | ||
(in 000's) | |||
2018 | 338 | ||
2019 | 311 | ||
2020 | 311 | ||
2021 | 311 | ||
2022 | 189 |
Year ending February 28 (29), | Operating Leases | Employment Agreements | Other Contracts | Total | |||||||||||
2018 | $ | 7,006 | $ | 15,498 | $ | 11,435 | $ | 33,939 | |||||||
2019 | 7,006 | 8,019 | 10,894 | 25,919 | |||||||||||
2020 | 7,082 | 1,453 | 3,631 | 12,166 | |||||||||||
2021 | 6,960 | 37 | 104 | 7,101 | |||||||||||
2022 | 6,741 | — | 104 | 6,845 | |||||||||||
Thereafter | 23,649 | — | 70 | 23,719 | |||||||||||
Total | $ | 58,444 | $ | 25,007 | $ | 26,238 | $ | 109,689 |
2015 | 2016 | 2017 | |||||||||
United States | $ | (58,692 | ) | $ | 1,765 | $ | 13,110 | ||||
Foreign | (345 | ) | — | — | |||||||
(Loss) income before income taxes | $ | (59,037 | ) | $ | 1,765 | $ | 13,110 |
2015 | 2016 | 2017 | |||||||||
Current: | |||||||||||
State | $ | 229 | $ | (31 | ) | $ | 68 | ||||
Total current | 229 | (31 | ) | 68 | |||||||
Deferred: | |||||||||||
Federal | 27,431 | 1,793 | (152 | ) | |||||||
State | 9,288 | 307 | (26 | ) | |||||||
Total deferred | 36,719 | 2,100 | (178 | ) | |||||||
(Benefit) provision for income taxes | $ | 36,948 | $ | 2,069 | $ | (110 | ) |
2015 | 2016 | 2017 | |||||||||
Computed income tax (benefit) provision at 35% | $ | (20,663 | ) | $ | 618 | $ | 4,588 | ||||
State income tax | 9,517 | 276 | 42 | ||||||||
Foreign taxes | 120 | — | — | ||||||||
Tax benefit resulting from swap expiration and related OCI reversal | 5 | — | — | ||||||||
Nondeductible stock compensation | 122 | 296 | 444 | ||||||||
Entertainment disallowance | 421 | 366 | 366 | ||||||||
Disposal of goodwill with no tax basis | — | — | 3,533 | ||||||||
Change in federal valuation allowance | 50,250 | 2,376 | (7,387 | ) | |||||||
Tax attributed to noncontrolling interest | (1,994 | ) | (1,932 | ) | (1,698 | ) | |||||
Federal tax credit | (173 | ) | (43 | ) | (171 | ) | |||||
Other | (657 | ) | 112 | 173 | |||||||
Provision (benefit) for income taxes | $ | 36,948 | $ | 2,069 | $ | (110 | ) |
2016 | 2017 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 34,341 | $ | 35,365 | |||
Intangible assets | 28,737 | 22,130 | |||||
Compensation relating to stock options | 1,768 | 1,942 | |||||
Deferred revenue | 840 | 420 | |||||
Accrued rent | 2,275 | 1,892 | |||||
Tax credits | 3,265 | 3,438 | |||||
Investments in subsidiaries | 214 | 396 | |||||
Capital loss carryforward | 2,740 | — | |||||
Other | 1,628 | 993 | |||||
Valuation allowance | (66,674 | ) | (60,379 | ) | |||
Total deferred tax assets | 9,134 | 6,197 | |||||
Deferred tax liabilities | |||||||
Indefinite-lived intangible assets | (43,673 | ) | (43,505 | ) | |||
Property and equipment | (1,055 | ) | (814 | ) | |||
Cancellation of debt income | (8,079 | ) | (5,386 | ) | |||
Other | (42 | ) | (29 | ) | |||
Total deferred tax liabilities | (52,849 | ) | (49,734 | ) | |||
Net deferred tax liabilities | $ | (43,715 | ) | $ | (43,537 | ) |
For the year ending February 28 (29), | |||||||
2016 | 2017 | ||||||
Gross unrecognized tax benefit – opening balance | $ | (172 | ) | $ | (87 | ) | |
Gross increases – tax positions in prior periods | (21 | ) | — | ||||
Gross decreases—settlements with taxing authorities | 81 | — | |||||
Gross decreases – lapse of applicable statute of limitations | 25 | 27 | |||||
Gross unrecognized tax benefit – ending balance | $ | (87 | ) | $ | (60 | ) |
Year Ended February 28, 2017 | Radio | Publishing | Corporate & Emerging Technologies | Consolidated | |||||||||||
Net revenues | $ | 165,148 | $ | 48,559 | $ | 861 | $ | 214,568 | |||||||
Station operating expenses excluding depreciation and amortization expense | 115,366 | 51,063 | 13,656 | 180,085 | |||||||||||
Corporate expenses excluding depreciation and amortization expense | — | — | 11,359 | 11,359 | |||||||||||
Impairment loss | 6,855 | — | 2,988 | 9,843 | |||||||||||
Depreciation and amortization | 3,462 | 230 | 1,114 | 4,806 | |||||||||||
Gain on sale of radio and publishing assets, net of disposition costs | (3,478 | ) | (20,079 | ) | — | (23,557 | ) | ||||||||
Loss on disposal of fixed assets | 124 | — | — | 124 | |||||||||||
Operating income (loss) | $ | 42,819 | $ | 17,345 | $ | (28,256 | ) | $ | 31,908 |
Year Ended February 29, 2016 | Radio | Publishing | Corporate & Emerging Technologies | Consolidated | |||||||||||
Net revenues | $ | 169,228 | $ | 60,992 | $ | 1,213 | $ | 231,433 | |||||||
Station operating expenses excluding depreciation and amortization expense | 116,862 | 58,891 | 7,641 | 183,394 | |||||||||||
Corporate expenses excluding depreciation and amortization expense | — | — | 13,023 | 13,023 | |||||||||||
Impairment loss | 5,440 | — | 4,059 | 9,499 | |||||||||||
Depreciation and amortization | 3,345 | 266 | 2,186 | 5,797 | |||||||||||
(Gain) loss on sale of fixed assets | 54 | — | 2 | 56 | |||||||||||
Operating income (loss) | $ | 43,527 | $ | 1,835 | $ | (25,698 | ) | $ | 19,664 |
Year Ended February 28, 2015 | Radio | Publishing | Corporate & Emerging Technologies | Consolidated | |||||||||||
Net revenues | $ | 176,250 | $ | 61,142 | $ | 546 | $ | 237,938 | |||||||
Station operating expenses excluding depreciation and amortization expense | 117,167 | 60,083 | 3,759 | 181,009 | |||||||||||
Corporate expenses excluding depreciation and amortization expense | — | — | 14,922 | 14,922 | |||||||||||
LMA fee | 4,208 | — | — | 4,208 | |||||||||||
Hungary license litigation and related expenses | 521 | — | — | 521 | |||||||||||
Impairment loss | 67,915 | — | — | 67,915 | |||||||||||
Depreciation and amortization | 3,143 | 245 | 2,538 | 5,926 | |||||||||||
Gain on contract settlement | (2,500 | ) | — | — | (2,500 | ) | |||||||||
Operating income (loss) | $ | (14,204 | ) | $ | 814 | $ | (20,673 | ) | $ | (34,063 | ) | ||||
Total Assets | Radio | Publishing | Corporate & Emerging Technologies | Consolidated | ||||||||||||
As of February 29, 2016 | $ | 271,336 | $ | 22,060 | $ | 23,210 | $ | 316,606 | ||||||||
As of February 28, 2017 | 260,228 | 1,746 | 27,364 | 289,338 |
For the year ended February 28 (29), | |||||||||||
2015 | 2016 | 2017 | |||||||||
Income (loss) from unconsolidated affiliate, including other-than-temporary impairment losses | $ | 11 | $ | (82 | ) | $ | (28 | ) | |||
Other-than-temporary impairment loss on investments | (6,682 | ) | — | (254 | ) | ||||||
Interest income | 78 | 36 | 38 | ||||||||
Other | 175 | 1,103 | 84 | ||||||||
Total other income (expense), net | $ | (6,418 | ) | $ | 1,057 | $ | (160 | ) |
For the year ended February 28 (29), | |||||||||
2015 | 2016 | 2017 | |||||||
Net revenues | $ | 32,986 | $ | 28,183 | $ | 24,379 | |||
Station operating expenses, excluding depreciation and amortization expense | 17,848 | 16,305 | 16,933 | ||||||
Depreciation and amortization | 570 | 422 | 401 | ||||||
Operating income | 14,568 | 11,456 | 7,045 |
As of February 28 (29), | ||||
2016 | 2017 | |||
Property and equipment, net | 1,586 | 1,400 | ||
Indefinite-lived intangibles | 2,018 | 2,018 | ||
Other intangibles, net | 75 | 68 | ||
Other assets, long-term | 21 | 39 |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. |
ITEM 9A. | CONTROLS AND PROCEDURES |
(1) | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of Emmis Communications Corporation; |
(2) | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of Emmis Communications Corporation are being made only in accordance with authorizations of management and directors of Emmis Communications Corporation; and |
(3) | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of Emmis Communications Corporation’s assets that could have a material effect on the financial statements. |
ITEM 9B. | OTHER INFORMATION |
ITEM 11. | EXECUTIVE COMPENSATION. |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. |
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (A)) | |||||||
Plan Category | (A) | (B) | (C) | ||||||
Class A common stock | |||||||||
Equity Compensation Plans | |||||||||
Approved by Security Holders | 2,559,643 | $ | 5.17 | 949,996 | |||||
Equity Compensation Plans | |||||||||
Not Approved by Security Holders | — | — | — | ||||||
Total | 2,559,643 | $ | 5.17 | 949,996 |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Form | Period Ending | Exhibit | Filing Date | ||||||
3.1 | Second Amended and Restated Articles of Incorporation of Emmis Communications Corporation, as amended effective July 7, 2016 | 8-K | 3.1 | 7/7/2016 | ||||||||
3.2 | Second Amended and Restated Bylaws of Emmis Communications Corporation | 10-K | 2/28/2013 | 3.2 | 5/8/2013 | |||||||
4.1 | Form of stock certificate for Class A common stock | S-1 | 3.5 | 12/22/1993 | ||||||||
10.01 | Form of Option Grant Agreement ++ | 8-K | 10.1 | 7/7/2016 | ||||||||
10.02 | Form of Restricted Stock Agreement ++ | 8-K | 10.1 | 7/7/2016 | ||||||||
10.03 | Credit Agreement, dated as of June 10, 2014, among Emmis Communications Corporation, Emmis Operating Company, certain other subsidiaries of the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Fifth Third Bank, as syndication agent | 8-K | 10.1 | 6/10/2014 | ||||||||
10.04 | First Amendment to 2014 Credit Agreement, dated as of November 7, 2014, among Emmis Communications Corporation, Emmis Operating Company, certain other subsidiaries of the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Fifth Third Bank, as syndication agent | 8-K | 10.1 | 11/7/2014 | ||||||||
10.05 | Second Amendment to 2014 Credit Agreement, dated as of April 30, 2015, among Emmis Communications Corporation, Emmis Operating Company, certain other subsidiaries of the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Fifth Third Bank, as syndication agent | 8-K | 10.1 | 4/30/2015 | ||||||||
10.06 | Third Amendment to 2014 Credit Agreement, dated as of August 18, 2016, among Emmis Communications Corporation, Emmis Operating Company, certain other subsidiaries of the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Fifth Third Bank, as syndication agent | 8-K | 10.1 | 8/26/2016 | ||||||||
10.07 | Successor agent agreement and amendment to credit agreement dated as of April 18, 2017 by and among JPMorgan Chase Bank, N.A., in its capacity as the existing administrative agent, the Bank of New York Mellon, in its capacity as successor administrative agent, Emmis Operating Company, certain other subsidiaries of the Company and the lenders party thereto. | 8-K | 10.1 | 4/24/2017 | ||||||||
10.08 | Change in Control Severance Agreement, dated as of May 7, 2012, by and between Emmis Communications Corporation and Jeffrey H. Smulyan ++ | 10-K | 2/29/2012 | 10.18 | 5/10/2012 | |||||||
10.09 | Change in Control Severance Agreement, dated as of July 10, 2012, by and between Emmis Operating Company and Jeffrey H. Smulyan ++ | 10-Q | 5/31/2012 | 10.18 | 7/12/2012 |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Form | Period Ending | Exhibit | Filing Date | ||||||
10.10 | Employment Agreement, dated as of December 26, 2012, by and between Emmis Operating Company and Jeffrey H. Smulyan ++ | 8-K | 10.1 | 12/28/2012 | ||||||||
10.11 | Change in Control Severance Agreement, dated as of September 4, 2011, by and between Emmis Operating Company and Patrick M. Walsh ++ | 10-Q | 11/30/2011 | 10.2 | 1/12/2012 | |||||||
10.12 | Employment Agreement, dated as of September 4, 2013, by and between Emmis Operating Company and Patrick M. Walsh ++ | 8-K | 10.1 | 10/25/2013 | ||||||||
10.13 | Employment Agreement, dated as of March 1, 2012, by and between Emmis Operating Company and J. Scott Enright ++ | 10-K | 10.25 | 5/10/2012 | ||||||||
Employment Agreement, dated as of March 1, 2017, by and between Emmis Operating Company and J. Scott Enright ++ | X | |||||||||||
10.15 | Change in Control Severance Agreement, dated as of March 8, 2012, by and between Emmis Operating Company and J. Scott Enright ++ | 10-K | 10.24 | 5/10/2012 | ||||||||
10.16 | Employment Agreement, effective as of March 3, 2009, by and between Emmis Operating Company and Gary L. Kaseff ++ | 10-K/A | 2/28/2009 | 10.31 | 10/9/2009 | |||||||
10.17 | Amendment to Employment Agreement, effective as of March 1, 2013, by and between Emmis Operating Company and Gary L. Kaseff ++ | 10-K | 2/28/2013 | 10.23 | 5/8/2013 | |||||||
10.18 | Emmis Communications Corporation 2015 Equity Compensation Plan ++ | DEF14A | 5/29/2015 | |||||||||
10.19 | Emmis Communications Corporation 2016 Equity Compensation Plan ++ | DEF14A | 5/26/2016 | |||||||||
10.20 | Local Programming and Marketing Agreement, dated as of April 26, 2012, between Emmis Radio License Corporation of New York and New York AM Radio, LLC | 8-K | 10.1 | 4/26/2012 | ||||||||
10.21 | Asset Purchase Agreement, dated as of October 13, 2016, by and between Emmis Publishing, L.P., Emmis Operating Company, GP TM Acquisition LLC and Genesis Park II LP | 10-Q | 10.1 | 1/4/2017 | ||||||||
10.22 | Asset Purchase Agreement, dated as of October 12, 2016, by and between Emmis Indiana Broadcasting, L.P., Emmis Radio License, LLC, Emmis Communications Corporation, and Midwest Communications, Inc. | 10-Q | 10.2 | 1/4/2017 | ||||||||
10.23 | Asset Purchase Agreement, dated as of October 12, 2016, by and between Emmis Indiana Broadcasting, L.P., Emmis Radio License, LLC, Emmis Communications Corporation, and DLC Media, Inc. | 10-Q | 10.3 | 1/4/2017 | ||||||||
10.24 | Asset Purchase Agreement between subsidiaries of Emmis Communications Corporation and Hour Media Group, LLC, dated February 23, 2017 | 8-K | 10.1 | 2/28/2017 | ||||||||
10.25 | Asset Purchase Agreement, dated as of May 8, 2017, by and among Emmis Radio, LLC, Emmis Radio License, LLC and KWHY-22 Broadcasting, LLC | 8-K | 10.1 | 5/9/2017 | ||||||||
10.26 | Local Programming and Marketing Agreement, dated as of May 8, 2017, by and among Emmis Radio License, LLC and KWHY-22 Broadcasting, LLC | 8-K | 10.2 | 5/9/2017 | ||||||||
Subsidiaries of Emmis | X | |||||||||||
Consent of Independent Registered Public Accounting Firm | X | |||||||||||
Powers of Attorney | X | |||||||||||
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Form | Period Ending | Exhibit | Filing Date | ||||||
Certification of Principal Executive Officer of Emmis Communications Corporation pursuant to Rule 13a-14(a) under the Exchange Act | X | |||||||||||
Certification of Principal Financial Officer of Emmis Communications Corporation pursuant to Rule 13a-14(a) under the Exchange Act | X | |||||||||||
Certification of Principal Executive Officer of Emmis Communications Corporation pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||
Certification of Principal Financial Officer of Emmis Communications Corporation pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||
101.INS | XBRL Instance Document | X | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | X | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X |
++ | Management contract or compensatory plan or arrangement. |
EMMIS COMMUNICATIONS CORPORATION | |||
Date: May 11, 2017 | By: | /s/ Jeffrey H. Smulyan | |
Jeffrey H. Smulyan | |||
Chairman of the Board and Chief Executive Officer |
SIGNATURE | TITLE | |||
Date: May 11, 2017 | /s/ Jeffrey H. Smulyan | Chairman of the Board, Chief Executive Officer | ||
Jeffrey H. Smulyan | and Director (Principal Executive Officer) | |||
Date: May 11, 2007 | /s/ Patrick M. Walsh | President, Chief Operating Officer and Director | ||
Patrick M. Walsh | ||||
Date: May 11, 2017 | /s/ Ryan A. Hornaday | Executive Vice President, Chief Financial Officer | ||
Ryan A. Hornaday | and Treasurer (Principal Financial Officer and | |||
Principal Accounting Officer) | ||||
Date: May 11, 2017 | Susan B. Bayh* | Director | ||
Susan B. Bayh | ||||
Date: May 11, 2017 | James M. Dubin* | Director | ||
James M. Dubin | ||||
Date: May 11, 2017 | Gary L. Kaseff* | Director | ||
Gary L. Kaseff | ||||
Date: May 11, 2017 | Richard A. Leventhal* | Director | ||
Richard A. Leventhal | ||||
Date: May 11, 2017 | Peter A. Lund* | Director | ||
Peter A. Lund | ||||
Date: May 11, 2017 | Greg A. Nathanson* | Director | ||
Greg A. Nathanson | ||||
Date: May 11, 2017 | Lawrence B. Sorrel* | Director | ||
Lawrence B. Sorrel |
*By: | /s/ J. Scott Enright | |
J. Scott Enright Attorney-in-Fact |
First Contract Year: | $450,000 |
Second Contract Year: | Base Salary for First Contract Year, plus an amount equal to the average percentage merit increase, if any, for Employer’s corporate employees who do not have an employment agreement (the “Corporate Merit Increase”) for the Second Contract Year |
Third Contract Year: | Base Salary for Second Contract Year, plus the Corporate Merit Increase for the Third Contract Year |
EMMIS OPERATING COMPANY | |
("Employer") | |
By: | /s/ Jeffrey H. Smulyan |
Jeffrey H. Smulyan | |
Chief Executive Officer | |
J. SCOTT ENRIGHT | |
("Executive") | |
/s/ J. Scott Enright | |
J. Scott Enright | |
Executive Vice President, General Counsel and Secretary |
Name Under Which Subsidiary Does Business | Jurisdiction of Organization |
Emmis Communications Corporation* | IN |
Emmis Operating Company | IN |
Emmis Radio, LLC1 | IN |
Emmis Publishing, L.P.2 | IN |
Emmis Indiana Broadcasting, L.P.3 | IN |
Emmis Radio Holding Corporation | IN |
Emmis Radio Holding II Corporation | IN |
Emmis New York Radio LLC | DE |
Emmis New York Radio License LLC | DE |
WBLS-WLIB, LLC | IN |
WBLS-WLIB License, LLC | IN |
WLIB Tower, LLC | IN |
Emmis International Broadcasting Corporation | CA |
Emmis Publishing Corporation | IN |
Emmis Radio License, LLC4 | IN |
Emmis License Corporation of New York4 | CA |
Emmis Radio License Corporation of New York4 | CA |
NextRadio, LLC | IN |
Tagstation, LLC | IN |
NextRadio Sales, LLC | IN |
Mediatex Communications Corporation | IN |
Los Angeles Magazine Holding Company, Inc. | IN |
Radio Austin Management, L.L.C. | TX |
Emmis Austin Radio Broadcasting Company, L.P. | TX |
Orange Coast Kommunications, Inc. | DE |
Digonex Technologies, Inc. (80.7%, fully diluted basis) | IN |
WHHL, LLC | IN |
BTC, LLC (12.5%) | DE |
Footnotes | |
* Emmis Communications Corporation directly or indirectly owns 100% of all entities except as otherwise noted. | |
1 Emmis Radio, LLC operates all our radio stations except for the stations held by Emmis Indiana Broadcasting, L.P., Emmis Austin Radio Broadcasting Company, L.P. | |
2 Emmis Publishing, L.P. publishes Indianapolis Monthly. | |
3 Emmis Indiana Broadcasting, L.P. operates all our Indiana radio stations (WFNI-AM, WLHK-FM, WIBC-FM, WYXB-FM, WTHI-FM, WWVR-FM, WFNB-FM & WFNF-AM), and Network Indiana. | |
4 Emmis Radio License, LLC holds all our radio FCC licenses except for the FCC licenses in New York and Texas, which are held by other subsidiaries. |
(1) | Registration Statement (Form S-8 No. 333-71904) pertaining to the Emmis Communications Corporation 2001 Equity Incentive Plan; |
(2) | Registration Statement (Form S-8 No. 333-92318) pertaining to the Emmis Communications Corporation 2002 Equity Compensation Plan; |
(3) | Registration Statement (Form S-8 No. 333-117033) pertaining to the Emmis Communications Corporation 2004 Equity Compensation Plan; |
(4) | Registration Statement (Form S-8 No. 333-171463) pertaining to the Emmis Communications Corporation 2010 Equity Compensation Plan; |
(5) | Registration Statement (Form S-8 No. 333-184933) pertaining to the Emmis Communications Corporation 2012 Equity Compensation Plan; |
(6) | Registration Statement (Form S-8 No. 333-193245) pertaining to the Emmis Communications Corporation 2012 Retention Plan and Trust; |
(7) | Registration Statement (Form S-8 No. 333-205579) pertaining to the Emmis Communications Corporation 2015 Equity Compensation Plan; and |
(8) | Registration Statement (Form S-8 No. 333-212419) pertaining to the Emmis Communications Corporation 2016 Equity Compensation Plan |
Dated: April 28, 2017 | /s/ Susan B. Bayh |
Susan B. Bayh | |
Dated: May 2, 2017 | /s/ Lawrence B. Sorrel |
Lawrence B. Sorrel | |
Dated: April 28, 2017 | /s/ Richard A. Leventhal |
Richard A. Leventhal | |
Dated: April 19, 2017 | /s/ Peter A. Lund |
Peter A. Lund | |
Dated: April 24, 2017 | /s/ Greg A. Nathanson |
Greg A. Nathanson | |
Dated: April 21, 2017 | /s/ Gary L. Kaseff |
Gary L. Kaseff | |
Dated: May 2, 2017 | /s/ James M. Dubin |
James M. Dubin | |
1. | I have reviewed this annual report on Form 10-K of Emmis Communications Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of 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. |
/s/ Jeffrey H. Smulyan | |
Jeffrey H. Smulyan Chairman of the Board and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Emmis Communications Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of 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. |
/s/ Ryan A. Hornaday | |
Ryan A. Hornaday | |
Executive Vice President, Chief Financial Officer and Treasurer |
(1) | the Annual Report of the Company on Form 10-K for the period ended February 28, 2017, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Jeffrey H. Smulyan | |
Jeffrey H. Smulyan | |
Chairman of the Board and Chief Executive Officer |
(1) | the Annual Report of the Company on Form 10-K for the period ended February 28, 2017, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Ryan A. Hornaday | |
Ryan A. Hornaday | |
Executive Vice President, Chief Financial Officer and Treasurer |
Document and Entity Information - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
May 05, 2017 |
Aug. 31, 2016 |
|
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 28, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EMMS | ||
Entity Registrant Name | EMMIS COMMUNICATIONS CORP | ||
Entity Central Index Key | 0000783005 | ||
Current Fiscal Year End Date | --02-28 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 40,919 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,345,404 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,142,366 | ||
Class C Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Income Statement [Abstract] | |||
Depreciation and amortization expense excluded from station operating expenses | $ 3,998 | $ 4,713 | $ 3,984 |
Depreciation and amortization expenses excluded from corporate expenses | $ 808 | $ 1,084 | $ 1,942 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||
CONSOLIDATED NET (LOSS) INCOME | $ 13,220 | $ (304) | $ (95,985) |
OTHER COMPREHENSIVE (LOSS) INCOME: | |||
Change in value of derivative instrument | 0 | 0 | 99 |
COMPREHENSIVE (LOSS) INCOME | 13,220 | (304) | (95,886) |
LESS: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 101 | (2,418) | 3,274 |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 13,119 | $ 2,114 | $ (99,160) |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
OPERATING ACTIVITIES: | |||
Consolidated net (loss) income | $ 13,220 | $ (304) | $ (95,985) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities— | |||
Gain on sale of radio and publishing assets, net of disposition costs | 23,557 | 0 | 0 |
Impairment loss on intangible assets | 9,843 | 9,499 | 67,915 |
Loss on debt extinguishment | 620 | 0 | 1,455 |
Noncash accretion of debt instruments to interest expense | 743 | 743 | 3,472 |
Amortization of deferred financing costs, including original issue discount | 1,661 | 1,667 | 1,227 |
Depreciation and amortization | 4,806 | 5,797 | 5,926 |
Provision for bad debts | 377 | 626 | 627 |
Provision (benefit) for deferred income taxes | (178) | 2,100 | 36,719 |
Noncash compensation | 2,920 | 4,904 | 2,813 |
Loss on investments including other-than-temporary impairment | 254 | 0 | 6,682 |
Loss (gain) on disposal of assets | 124 | 56 | 0 |
Changes in assets and liabilities- | |||
Restricted cash | (209) | 1,276 | (501) |
Accounts receivable | 3,460 | 1,796 | (6,954) |
Prepaid expenses and other current assets | 1,639 | 1,289 | (1,527) |
Other assets | (644) | (1,583) | (682) |
Accounts payable and accrued liabilities | 5,131 | (1,236) | (373) |
Deferred revenue | (294) | (133) | 62 |
Income taxes | (76) | (117) | (30) |
Other liabilities | (788) | (1,266) | (2,390) |
Net cash provided by operating activities | 19,052 | 25,114 | 18,456 |
INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (2,850) | (3,388) | (3,514) |
Cash paid for acquisitions | 0 | 0 | (136,006) |
Proceeds from the sale of assets | 31,330 | 0 | 3 |
(Cash paid for) received from investments, net | 54 | 107 | (516) |
Other | (35) | 0 | (185) |
Net cash (used in) provided by investing activities | 28,499 | (3,281) | (140,218) |
FINANCING ACTIVITIES: | |||
Payments on long-term debt | (55,970) | (24,228) | (79,541) |
Proceeds from long-term debt | 21,350 | 11,000 | 214,000 |
Settlement of tax withholding obligations | (539) | (971) | (1,466) |
Dividends and distributions paid to noncontrolling interests | (5,577) | (5,846) | (5,428) |
Proceeds from exercise of stock options and employee stock purchases | 115 | 133 | 411 |
Payments for debt related costs | (32) | (1,134) | (7,849) |
Other | (5) | 0 | 0 |
Net cash provided by (used in) financing activities | (40,658) | (21,046) | 120,127 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 6,893 | 787 | (1,635) |
CASH AND CASH EQUIVALENTS: | |||
Beginning of period | 4,456 | 3,669 | 5,304 |
End of period | 11,349 | 4,456 | 3,669 |
Cash paid for (refund from)- | |||
Interest | 15,618 | 16,742 | 9,781 |
Income taxes | 112 | 216 | 243 |
Non-cash financing transactions- | |||
Value of stock issued to employees under stock compensation program and to satisfy accrued incentives | $ 2,920 | $ 4,963 | $ 5,637 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The following discussion pertains to Emmis Communications Corporation (“ECC”) and its subsidiaries (collectively, “Emmis,” the “Company,” or “we”). All significant intercompany balances and transactions have been eliminated. Organization We are a diversified media company, principally focused on radio broadcasting. Emmis owns 16 FM and 3 AM radio stations in New York, Los Angeles, St. Louis, Austin (Emmis has a 50.1% controlling interest in Emmis’ radio stations located there) and Indianapolis. One of the FM radio stations that Emmis currently owns in New York is operated pursuant to a Local Marketing Agreement ("LMA") whereby a third party provides the programming for the station and sells all advertising within that programming. In addition, Emmis has entered into an agreement to sell its FM radio station in Los Angeles and that transaction is expected to close in the back half of 2017. Emmis also developed and licenses TagStation®, a cloud-based software platform that allows a broadcaster to manage album art, meta data and enhanced advertising on its various broadcasts, developed NextRadio®, a smartphone application that marries over-the-air FM radio broadcasts with visual and interactive features on smartphones, and has introduced the Dial ReportTM to give radio advertising buyers and sellers big data analytics derived from a nationwide radio station network, smartphone usage, location-based data, demographic profiling and listening data. In addition to our radio properties, we also publish Indianapolis Monthly and operate Digonex, a dynamic pricing business. Substantially all of ECC’s business is conducted through its subsidiaries. Our credit agreement, dated June 10, 2014 (the “2014 Credit Agreement”), contains certain provisions that may restrict the ability of ECC’s subsidiaries to transfer funds to ECC in the form of cash dividends, loans or advances. Common Stock Reverse Split On July 8, 2016, the Company effected a one-for-four reverse stock split for its Class A, Class B and Class C common stock. All share and per share information has been retroactively adjusted to reflect the reverse stock split. Revenue Recognition Broadcasting revenue is recognized as advertisements are aired. Publication revenue is recognized in the month of delivery of the publication. Both broadcasting revenue and publication revenue recognition is subject to meeting certain conditions such as persuasive evidence that an arrangement exists and collection is reasonably assured. These criteria are generally met at the time the advertisement is aired for broadcasting revenue and upon delivery of the publication for publication revenue. Advertising revenues presented in the financial statements are reflected on a net basis, after the deduction of advertising agency fees, usually at a rate of 15% of gross revenues. Allowance for Doubtful Accounts An allowance for doubtful accounts is recorded based on management’s judgment of the collectability of receivables. When assessing the collectability of receivables, management considers, among other things, historical loss experience and existing economic conditions. Amounts are written off after all normal collection efforts have been exhausted. The activity in the allowance for doubtful accounts for the three years ended February 28, 2017 was as follows:
Local Programming and Marketing Agreement Fees The Company from time to time enters into LMAs in connection with acquisitions and dispositions of radio stations, pending regulatory approval of transfer of the FCC licenses. Under the terms of these agreements, the acquiring company makes specified periodic payments to the holder of the FCC license in exchange for the right to program and sell advertising for a specified portion of the station’s inventory of broadcast time. The acquiring company records revenues and expenses associated with the portion of the station’s inventory of broadcast time it manages. Nevertheless, as the holder of the FCC license, the owner-operator retains control and responsibility for the operation of the station, including responsibility over all programming broadcast on the station. Active LMA On April 26, 2012, the Company entered into an LMA with New York AM Radio, LLC (“98.7FM Programmer”) pursuant to which, commencing April 30, 2012, 98.7FM Programmer purchased from Emmis the right to provide programming on 98.7FM until August 31, 2024. Disney Enterprises, Inc., the parent company of 98.7FM Programmer, has guaranteed the obligations of 98.7FM Programmer under the LMA. The Company retains ownership and control of the station, including the related FCC license during the term of the LMA and received an annual fee from 98.7FM Programmer of $8.4 million for the first year of the term under the LMA, which fee increases by 3.5% each year thereafter until the LMA’s termination. This LMA fee revenue is recorded on a straight-line basis over the term of the LMA. Emmis retains the FCC license of 98.7FM after the term of the LMA expires. Terminated LMAs On February 11, 2014, the Company entered into an LMA in connection with its agreement to purchase WBLS-FM and WLIB-AM in New York City from YMF Media New York LLC and YMF Media New York License LLC (collectively, "YMF"). The LMA, which commenced on March 1, 2014, gave Emmis the right to program and sell advertising for the two New York stations. Emmis paid YMF $1.3 million per month and reimbursed YMF for certain monthly expenses. The monthly LMA fee decreased to approximately $0.74 million after the first closing of the purchase of the stations, which occurred on June 10, 2014, and ceased effective with the second closing on February 13, 2015. The LMA fees paid after the first closing were recognized as a liability as of the date of purchase of the stations on June 10, 2014. Accordingly, LMA fees incurred after June 10, 2014 did not impact our results of operations. During the year ended February 28, 2015, Emmis recorded $4.2 million of LMA expense. See Note 7 for more discussion of the Company's purchase of WBLS-FM and WLIB-AM from YMF. LMA fees recorded as net revenues in the accompanying consolidated statements of operations were as follows for the years ended February 2015, 2016 and 2017:
Share-based Compensation The Company determines the fair value of its employee stock options at the date of grant using a Black-Scholes option-pricing model. The Black-Scholes option pricing model was developed for use in estimating the value of exchange-traded options that have no vesting restrictions and are fully transferable. The Company’s employee stock options have characteristics significantly different than these traded options. In addition, option pricing models require the input of highly subjective assumptions, including the expected stock price volatility and expected term of the options granted. The Company relies heavily upon historical data of its stock price when determining expected volatility, but each year the Company reassesses whether or not historical data is representative of expected results. See Note 4 for more discussion of share-based compensation. Cash and Cash Equivalents Emmis considers time deposits, money market fund shares and all highly liquid debt investment instruments with original maturities of three months or less to be cash equivalents. At times, such deposits may be in excess of FDIC insurance limits. Restricted Cash Restricted cash relates to cash on deposit in trust accounts related to our 98.7FM LMA in New York City that services long-term debt, cash collected by our wholly-owned subsidiary, NextRadio LLC, from other radio broadcasters for payments to Sprint, and cash held in escrow as part of our sale of four magazines in February 2017. Usage of cash collected by NextRadio LLC is restricted for specific purposes by funding agreements. The table below summarizes restricted cash held by the Company as of February 28 (29), 2016 and 2017:
Property and Equipment Property and equipment are recorded at cost. Depreciation is generally computed using the straight-line method over the estimated useful lives of the related assets, which are 39 years for buildings, the shorter of economic life or expected lease term for leasehold improvements, five to seven years for broadcasting equipment, five years for automobiles, and three to five years for office equipment. Maintenance, repairs and minor renewals are expensed as incurred; improvements are capitalized. On a continuing basis, the Company reviews the carrying value of property and equipment for impairment. If events or changes in circumstances were to indicate that an asset carrying value may not be recoverable, a write-down of the asset would be recorded through a charge to operations. See below for more discussion of impairment policies related to our property and equipment. Depreciation expense for the years ended February 2015, 2016 and 2017 was $5.0 million, $4.3 million and $4.1 million, respectively. Intangible Assets and Goodwill Indefinite-lived Intangibles and Goodwill In connection with past acquisitions, a significant amount of the purchase price was allocated to radio broadcasting licenses, goodwill and other intangible assets. Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible net assets acquired. In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” goodwill and radio broadcasting licenses are not amortized, but are tested at least annually for impairment at the reporting unit level and unit of accounting level, respectively. We test for impairment annually, on December 1 of each year, or more frequently when events or changes in circumstances or other conditions suggest impairment may have occurred. Impairment exists when the asset carrying values exceed their respective fair values, and the excess is then recorded to operations as an impairment charge. See Note 9, Intangible Assets and Goodwill, for more discussion of our interim and annual impairment tests performed during the three years ended February 28, 2017. Definite-lived Intangibles The Company’s definite-lived intangible assets primarily consist of trademarks, customer lists and radio programming contracts which are amortized over the period of time the intangible assets are expected to contribute directly or indirectly to the Company’s future cash flows. Advertising and Subscription Acquisition Costs Advertising and subscription acquisition costs are expensed when incurred. Advertising expense for the years ended February 2015, 2016 and 2017 was $3.2 million, $4.1 million and $5.7 million, respectively. Investments For those investments in common stock or in-substance common stock in which the Company has the ability to exercise significant influence over the operating and financial policies of the investee, the investment is accounted for under the equity method. For other investments held at February 28, 2017, the Company applies the accounting guidance for certain investments in debt and equity securities. Emmis’ equity method investment reports on a fiscal year ending December 31, which Emmis incorporates into its fiscal year ended February 28 (29). Emmis has two investments, the carrying values of which are summarized in the following table and discussed below:
Equity method investment Emmis has a minority interest in a partnership that owns and operates various entertainment websites. During the year ended February 28, 2017, Emmis recorded a noncash impairment charge of $0.3 million in other income (expense), net in the accompanying consolidated statements of operations as it deemed the investment was impaired and the impairment was other-than-temporary. This impairment charge reduced the carrying value of this investment to zero as of February 28, 2017. Available for sale investment Emmis’ available for sale investment is an investment in the preferred shares of a non-public company. During the year ended February 29, 2016, Emmis received an additional $0.3 million of preferred shares of this non-public company in exchange for promotional airtime on its various radio stations. This investment is accounted for under the provisions of ASC 320, and as such, is carried at its fair value which Emmis believes approximates its cost basis of $0.8 million. During the year ended February 28, 2013, Emmis made investments totaling $6.0 million in Courseload, Inc, a provider of online textbooks and other course material. Emmis made additional investments in Courseload Inc. of $0.3 million and $0.4 million during the years ended February 28, 2014 and 2015, respectively. During the year ended February 28, 2015, Emmis recorded a noncash impairment charge of $6.7 million in other income (expense), net in the accompanying consolidated statements of operations as it deemed the investment was impaired and the impairment was other-than-temporary. The impairment charge recorded during the year ended February 28, 2015 reduced the carrying value of this investment to zero as of February 28, 2015. Unrealized gains and losses would be reported in other comprehensive income until realized, at which point they would be recognized in the consolidated statements of operations. If the Company determines that the value of an investment is other-than-temporarily impaired, the Company will recognize, through the statements of operations, a loss on the investment. Deferred Revenue and Barter Transactions Deferred revenue includes deferred barter, other transactions in which payments are received prior to the performance of services (i.e. cash-in-advance advertising and prepaid LMA payments), and deferred magazine subscription revenue. Barter transactions are recorded at the estimated fair value of the product or service received. Revenue from barter transactions is recognized when commercials are broadcast or a publication is delivered. The appropriate expense or asset is recognized when merchandise or services are used or received. Magazine subscription revenue is recognized when the publication is shipped. Barter revenues for the years ended February 2015, 2016 and 2017 were $8.5 million, $8.5 million and $7.8 million, respectively, and barter expenses were $8.7 million, $8.5 million, and $7.9 million, respectively. Earnings Per Share ASC Topic 260 requires dual presentation of basic and diluted income (loss) per share (“EPS”) on the face of the income statement for all entities with complex capital structures. Basic EPS is computed by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Potentially dilutive securities at February 2015, 2016 and 2017 consisted of stock options, restricted stock awards and preferred stock. The following table sets forth the calculation of basic and diluted net income (loss) per share from continuing operations:
Shares excluded from the calculation as the effect of their conversion into shares of our common stock would be antidilutive were as follows:
Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequence of events that have been recognized in the Company’s financial statements or income tax returns. Income taxes are recognized during the year in which the underlying transactions are reflected in the consolidated statements of operations. Deferred taxes are provided for temporary differences between amounts of assets and liabilities as recorded for financial reporting purposes and amounts recorded for income tax purposes. After determining the total amount of deferred tax assets, the Company determines whether it is more likely than not that some portion of the deferred tax assets will not be realized. If the Company determines that a deferred tax asset is not likely to be realized, a valuation allowance will be established against that asset to record it at its expected realizable value. Long-Lived Tangible Assets The Company periodically considers whether indicators of impairment of long-lived tangible assets are present. If such indicators are present, the Company determines whether the sum of the estimated undiscounted cash flows attributable to the assets in question are less than their carrying value. If less, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values. Fair value is determined by discounted future cash flows, appraisals and other methods. If the assets determined to be impaired are to be held and used, the Company recognizes an impairment charge to the extent the asset’s carrying value is greater than the fair value. The fair value of the asset then becomes the asset’s new carrying value, which, if applicable, the Company depreciates or amortizes over the remaining estimated useful life of the asset. Noncontrolling Interests The Company follows Accounting Standards Codification paragraph 810-10-65-1 to report the noncontrolling interests related to our Austin radio partnership and Digonex. We have a 50.1% controlling interest in our Austin radio partnership. We do not own any of the common equity of Digonex, but we consolidate the entity because we control its board of directors via rights granted in convertible preferred stock and convertible debt that we own. Noncontrolling interests represents the noncontrolling interest holders' proportionate share of the equity of the Austin radio partnership and Digonex. Noncontrolling interests are adjusted for the noncontrolling interest holders' proportionate share of the earnings or losses of the applicable entity. The noncontrolling interest continues to be attributed its share of losses even if that attribution results in a deficit noncontrolling interest balance. Below is a summary of the noncontrolling interest activity for the years ended February 2016 and 2017:
Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the financial statements and in disclosures of contingent assets and liabilities. Actual results could differ from those estimates. National Representation Agreement On October 1, 2007, Emmis terminated its existing national sales representation agreement with Interep National Radio Sales, Inc. (“Interep”) and entered into a new agreement with Katz Communications, Inc. (“Katz”) extending through March 2018. Emmis’ existing contract with Interep at the time extended through September 2011. Emmis, Interep and Katz entered into a tri-party termination and mutual release agreement under which Interep agreed to release Emmis from its future contractual obligations in exchange for a one-time payment of $15.3 million, which was paid by Katz on behalf of Emmis as an inducement for Emmis to enter into the new long-term contract with Katz. Emmis measured and recognized the charge associated with terminating the Interep contract as of the effective termination date, which was recorded as a noncash contract termination fee in the year ended February 2008. The liability established as a result of the termination represents an incentive received from Katz that is being recognized as a reduction of our national agency commission expense over the term of the agreement with Katz. At February 28, 2017, the entire balance of this liability is included in other current liabilities in the accompanying consolidated balance sheets. Liquidity The Company continually projects its anticipated cash needs, which include its operating needs, capital needs, and principal and interest payments on its indebtedness. As of the filing of this Form 10-K, management believes the Company can meet its liquidity needs through the end of fiscal year 2018 with cash and cash equivalents on hand, projected cash flows from operations, and, to the extent necessary, through its borrowing capacity under the 2014 Credit Agreement, which was $20.0 million at February 28, 2017. Based on these projections, management also believes the Company will be in compliance with its debt covenants through the end of fiscal year 2018. Recent Accounting Standards Updates Adoption of New Accounting Standards Updates In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting (ASU 2016-09) to simplify the accounting for share-based payment transactions, including the income tax consequences, and standardize certain classifications on the statement of cash flows. As permitted by ASU 2016-09, the Company chose to early adopt the provisions of this update as of March 1, 2016. The adoption of this guidance did not have any effect on the Company's consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including the cumulative effect of the change in the provisional amount as if the accounting had been completed at the acquisition date. This guidance was effective for the Company as of March 1, 2016. The adoption of this guidance did not have any effect on the Company's consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-05, Intangibles - Goodwill and Other: Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance as to when a company using a cloud computing service that includes a software license should capitalize and depreciate the software license. This guidance was effective for the Company as of March 1, 2016. The adoption of this guidance did not have any effect on the Company's consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 was effective for the fiscal year ending February 28, 2017, and for annual periods and interim periods thereafter. The adoption of this guidance did not have any effect on the Company's consolidated financial statements. Recent Accounting Standards Updates Not Yet Adopted In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU was issued to simplify goodwill impairment by removing the second step of the goodwill impairment test. This standard is required to be adopted by the Company as of March 1, 2020, but as permitted by the FASB, the Company plans to early adopt this guidance as of March 1, 2017. The adoption of this guidance will affect future goodwill impairments which will also be influenced by a number of other factors used by the Company when assessing the valuation of goodwill. In January 2017, the FASB issued Accounting Standards Update 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU was issued to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance will be effective for the Company as of March 1, 2018. The Company does not expect adoption of this guidance will have a material impact on the Company's consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance will be effective for the Company as of March 1, 2018, and requires a retrospective transition method. The Company does not expect adoption of this guidance will have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842). This update requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance will be effective for the Company as of March 1, 2019. A modified retrospective transition method is required. The Company is currently evaluating the impact the adoption of this guidance will have on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles used to recognize revenue for all entities. The FASB deferred implementation of this guidance by one year with the issuance of Accounting Standards Update 2015-14. As such, this guidance will be effective for the Company as of March 1, 2018. The Company expects to use the modified retrospective method of adoption. The Company has completed its initial evaluation of potential changes from adopting the new standard on its financial reporting and disclosures, which included a detailed review of contractual terms for all of its significant revenue streams. The Company will continue to progress on its implementation plan during the remainder of fiscal 2018. Based on its initial evaluation, the Company does not expect adoption of this guidance will have a material impact on the Company's consolidated financial statements, but disclosures related to revenue recognition will likely be expanded. |
COMMON STOCK |
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Feb. 28, 2017 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK Emmis has authorized Class A common stock, Class B common stock, and Class C common stock. The rights of these three classes are essentially identical except that each share of Class A common stock has one vote with respect to substantially all matters, each share of Class B common stock has 10 votes with respect to substantially all matters, and each share of Class C common stock has no voting rights with respect to substantially all matters. Class B common stock is owned by our Chairman, CEO and President, Jeffrey H. Smulyan. All shares of Class B common stock automatically convert to Class A common stock upon sale or other transfer to a party unaffiliated with Mr. Smulyan. At February 28 (29), 2016 and 2017, no shares of Class C common stock were issued or outstanding. On July 8, 2016, the Company effected a one-for-four reverse stock split. As a result of the reverse stock split, every four shares of each class of the Company's outstanding common stock were combined into one share of the same class of common stock and the authorized shares of each class of the Company's common stock were reduced by the same ratio. In lieu of issuing fractional shares, the Company paid in cash the fair value of such fractions of a share as of July 7, 2016 . Such fair value was $0.695 for each pre-split share of our outstanding common stock, which was the average closing sales price of the Class A common stock as reported by the Nasdaq Global Select Market for the thirty trading days preceding such date. The number and strike price of the Company's outstanding stock options were adjusted proportionally. The par value of the Company's common stock was not adjusted as a result of the reverse stock split. |
REDEEMABLE PREFERRED STOCK |
12 Months Ended |
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Feb. 28, 2017 | |
Preferred Stock, Including Additional Paid in Capital [Abstract] | |
REDEEMABLE PREFERRED STOCK | REDEEMABLE PREFERRED STOCK The Company's redeemable Preferred Stock was delisted from the Nasdaq Global Select Market on March 28, 2016. Pursuant to the Company's Articles of Incorporation, all shares of Preferred Stock were converted into shares of Class A common stock on April 4, 2016. Subsequent to the mandatory conversion on April 4, 2016, no shares of the Company's redeemable Preferred Stock remain outstanding. On various dates during the year ended February 28, 2017, including the mandatory conversion date of April 4, 2016, 866,319 shares of Preferred Stock were originally converted into 2,452,692 shares of Class A common stock (606,423 shares of Class A common stock after the one-for-four reverse stock split). Each share of redeemable Preferred Stock was convertible into a number of shares of common stock, which was determined by dividing the liquidation preference of the share of preferred stock ($50.00 per share) by the conversion price. The conversion price was originally $20.495, which resulted in a conversion ratio of approximately 2.44 shares of common stock per share of Preferred Stock. On February 17, 2016, shareholders of Emmis' common stock and Preferred Stock approved amendments to Emmis' Articles of Incorporation which, among other things, modified the conversion ratio to 2.80 shares of Class A common stock per share of Preferred Stock. In connection with this modification, the Company recorded a loss of $0.2 million. |
SHARE BASED PAYMENTS |
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SHARE BASED PAYMENTS | SHARE BASED PAYMENTS The amounts recorded as share based compensation expense consist of stock option and restricted stock grants, common stock issued to employees and directors in lieu of cash payments, and Preferred Stock contributed to the 2012 Retention Plan. Stock Option Awards The Company has granted options to purchase its common stock to employees and directors of the Company under various stock option plans at no less than the fair market value of the underlying stock on the date of grant. These options are granted for a term not exceeding 10 years and are forfeited, except in certain circumstances, in the event the employee or director terminates his or her employment or relationship with the Company. Generally, these options either vest annually over 3 years (one-third each year for 3 years), or cliff vest at the end of 3 years. The Company issues new shares upon the exercise of stock options. The fair value of each option awarded is estimated on the date of grant using a Black-Scholes option-pricing model and expensed on a straight-line basis over the vesting period. Expected volatilities are based on historical volatility of the Company’s stock. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. The Company includes estimated forfeitures in its compensation cost and updates the estimated forfeiture rate through the final vesting date of awards. The risk-free interest rate for periods within the life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following assumptions were used to calculate the fair value of the Company’s options on the date of grant during the years ended February 2015, 2016 and 2017:
The following table presents a summary of the Company’s stock options outstanding at February 28, 2017, and stock option activity during the year ended February 28, 2017 (“Price” reflects the weighted average exercise price per share):
The weighted average grant date fair value of options granted during the years ended February 2015, 2016 and 2017, was $6.53, $2.98 and $1.20, respectively. A summary of the Company’s nonvested options at February 28, 2017, and changes during the year ended February 28, 2017, is presented below:
There were 0.9 million shares available for future grants under the Company’s various equity plans at February 28, 2017 (0.6 million shares under the 2016 Equity Compensation Plan and 0.3 million shares under other plans). The vesting dates of outstanding options at February 28, 2017 range from March 2017 to July 2019, and expiration dates range from March 2017 to February 2027. Restricted Stock Awards The Company grants restricted stock awards to directors annually, and periodically grants restricted stock to employees in connection with employment agreements. Awards to directors are granted on the date of our annual meeting of shareholders and vest on the earlier of (i) the completion of the director’s 3-year term or (ii) the third anniversary of the date of grant. Restricted stock award grants are granted out of the Company’s 2016 Equity Compensation Plan. The Company may also award, out of the Company’s 2016 Equity Compensation Plan, stock to settle certain bonuses and other compensation that otherwise would be paid in cash. Any restrictions on these shares may be immediately lapsed on the grant date. The following table presents a summary of the Company’s restricted stock grants outstanding at February 28, 2017, and restricted stock activity during the year ended February 28, 2017 (“Price” reflects the weighted average share price at the date of grant):
The total grant date fair value of shares vested during the years ended February 2015, 2016 and 2017, was $4.1 million, $3.4 million and $1.8 million, respectively. Recognized Non-Cash Compensation Expense The following table summarizes stock-based compensation expense and related tax benefits recognized by the Company in the years ended February 2015, 2016 and 2017:
As of February 28, 2017, there was $1.7 million of unrecognized compensation cost, net of estimated forfeitures, related to nonvested share-based compensation arrangements. The cost is expected to be recognized over a weighted average period of approximately 1.2 years. |
LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt was comprised of the following at February 28 (29), 2016 and 2017:
(1) The face value of other nonrecourse debt was $6.2 million and $9.5 million at February 29, 2016 and February 28, 2017, respectively. 2014 Credit Agreement On June 10, 2014, Emmis entered into the 2014 Credit Agreement, by and among the Company, EOC, as borrower (the “Borrower”), certain other subsidiaries of the Company, as guarantors (the “Subsidiary Guarantors”), the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Fifth Third Bank, as syndication agent. Capitalized terms in this section not defined elsewhere in this Form 10-K are defined in the 2014 Credit Agreement and related amendments. The 2014 Credit Agreement includes a senior secured term loan facility (the “Term Loan”) of $185.0 million and a senior secured revolving credit facility of $20.0 million, and contains provisions for an uncommitted increase of up to $20.0 million principal amount (plus additional amounts so long as a pro forma total net senior secured leverage ratio condition is met) of the revolving credit facility and/or the Term Loan subject to the satisfaction of certain conditions. The revolving credit facility includes a sub-facility for the issuance of up to $5.0 million of letters of credit. Pursuant to the 2014 Credit Agreement, the Borrower borrowed $185.0 million of the Term Loan on June 10, 2014; $109.0 million was disbursed to the Borrower (the “Initial Proceeds”) and the remaining $76.0 million was funded into escrow (the “Subsequent Acquisition Proceeds”). The Initial Proceeds, coupled with $13.0 million of revolving credit facility borrowings, were used by the Borrower on June 10, 2014 to repay all amounts outstanding under its previous credit agreement, to make a $55.0 million initial payment associated with our acquisition of WBLS-FM and WLIB-AM, and to pay fees and expenses. The Subsequent Acquisition Proceeds were used to make the final $76.0 million payment related to the acquisition of WBLS-FM and WLIB-AM on February 13, 2015. See Note 7 for more discussion of our acquisition of WBLS-FM and WLIB-AM. As a result of the Fourth Amendment to the 2014 Credit Agreement (See Note 16), the Term Loan is due not later than April 18, 2019 and, prior to the Second Amendment to the 2014 Credit Agreement discussed below, amortized in an amount equal to 1% per annum of the total principal amount outstanding, payable in quarterly installments commencing April 1, 2015, with the balance payable on the maturity date. As a result of the Fourth Amendment to the 2014 Credit Agreement, the revolving credit facility expires not later than August 31, 2018. Prior to the Fourth Amendment to the 2014 Credit Agreement, an unused commitment fee of 50 basis points per annum is payable quarterly on the average unused amount of the revolving credit facility. Prior to the First Amendment and Second Amendment to the 2014 Credit Agreement discussed below, as well as the Fourth Amendment to the 2014 Credit Agreement, the Term Loan and amounts borrowed under the revolving credit facility bore interest, at the Borrower’s option, at either (i) the Alternate Base Rate (as defined in the 2014 Credit Agreement) (but not less than 2.00%) plus 3.75% or (ii) the Adjusted LIBO Rate (as defined in the 2014 Credit Agreement) (but not less than 1.00%) plus 4.75%. Approximately $1.0 million of transaction fees related to the 2014 Credit Agreement were originally capitalized and included in other assets, net. The Company adopted the provisions of Accounting Standards Update 2015-03 during the year ended February 29, 2016. As such, the unamortized balance of existing deferred debt fees was reclassified and is now shown as a direct reduction of the carrying amount of long-term debt. These fees, along with an original issue discount of $8.2 million as of February 28, 2017, ($6.1 million incurred in connection with the original issuance of the 2014 Credit Agreement debt on June 10, 2014, $1.0 million incurred in connection with the November 7, 2014 amendment to the 2014 Credit Agreement and $1.1 million incurred in connection with the April 30, 2015 amendment to the 2014 Credit Agreement) are being amortized as additional interest expense over the life of the 2014 Credit Agreement. The obligations under the 2014 Credit Agreement are secured by a perfected first priority security interest in substantially all of the assets of the Company, the Borrower and the Subsidiary Guarantors. On November 7, 2014, Emmis entered into the First Amendment (the “First Amendment”) to the 2014 Credit Agreement. The First Amendment (i) increased the maximum Total Leverage Ratio to 6.00:1.00 for the period February 28, 2015 through February 29, 2016, (ii) adjusted the definition of Consolidated EBITDA to exclude during the term of the 2014 Credit Agreement up to $5 million in severance and/or contract termination expenses and up to $2.5 million in losses attributable to the reformatting of the Company’s radio stations, (iii) extended the requirement for the Borrower to pay a 1.00% fee on certain prepayments of the Term Loan to November 7, 2015, (iv) increased the Applicable Margin by 0.25% for at least six months from the date of the First Amendment and until the Total Leverage Ratio is less than 5.00:1.00, and (v) made certain technical adjustments to the definition of Consolidated Excess Cash Flow and to address the Foreign Account Tax Compliance Act. Emmis paid a total of approximately $1.0 million of transaction fees to the Lenders that consented to the First Amendment, which were recorded as original issue discount and are being amortized over the remaining life of the 2014 Credit Agreement. On April 30, 2015, Emmis entered into a Second Amendment to our 2014 Credit Agreement. The Second Amendment (i) increased the maximum Total Leverage Ratio to (A) 6.75:1.00 during the period from May 31, 2015 through February 29, 2016, (B) 6.50:1.00 for the quarter ended May 31, 2016, (C) 6.25:1.00 for the quarter ended August 31, 2016, (D) 6.00:1.00 for the quarter ended November 30, 2016, and (E) 5.75:1.00 for the quarter ended February 28, 2017, after which it reverts to the original ratio of 4.00:1.00 for the quarters ended May 31, 2017 and thereafter, (ii) required Emmis to pay a 2.00% fee on certain prepayments of the Term Loan prior to the first anniversary of the Second Amendment and requires Emmis to pay a 1.00% fee on certain prepayments of the Term Loan from the first anniversary of the Second Amendment until the second anniversary of the Second Amendment, (iii) increased the Applicable Margin throughout the remainder of the term of the Credit Agreement to 5.00% for ABR Loans (as defined in the Credit Agreement) and 6.00% for Eurodollar Loans (as defined in the 2014 Credit Agreement), and (iv) increased the amortization to 0.50% per calendar quarter through January 1, 2016 and to 1.25% per calendar quarter thereafter commencing April 1, 2016. The Second Amendment also required Emmis to pay a fee of 0.50% of the Term Loan and Revolving Commitment of each Lender that consented to the Second Amendment. This fee totaled $1.1 million and was recorded as additional original issue discount and is being amortized as interest expense over the remaining life of the 2014 Credit Agreement. On August 22, 2016, Emmis entered into the Third Amendment to the 2014 Credit Agreement. The Third Amendment made certain changes to the Credit Agreement to facilitate the Company's consideration of and, if approved by the Company's Board of Directors and shareholders, entry into a transaction that would have resulted in the Class A common stock of the Company ceasing to be registered under the Securities Act of 1934 (such potential transaction, a "Going Private Transaction"). Specifically, the Third Amendment added an exception to the covenant restricting transactions with affiliates that (i) permitted the Company to enter into a Going Private Transaction with an affiliate of the Company and (ii) permitted the Borrower to pay any costs incurred or reimbursed by an affiliate of the Company in connection with a Going Private Transaction, whether or not the transaction was consummated. The Third Amendment also allowed the Company to add certain costs and expenses incurred in connection with a Going Private Transaction to Consolidated EBITDA, as defined in the Credit Agreement, for purposes of determining compliance with the financial covenants in the Credit Agreement, subject to caps of (i) $2.5 million if a Going Private Transaction was not recommended by a special committee of the Company’s Board of Directors and (ii) $8.0 million if a Going Private Transaction was recommended by a special committee of the Company’s Board of Directors but not consummated. Finally, the Third Amendment made certain changes to the Credit Agreement that would have been effective only if a Going Private Transaction was consummated. The Third Amendment also required the Borrower to pay a 50 basis point fee to the lenders that consented to it either if a Going Private Transaction was consummated or if such a transaction was recommended by a special committee of the board of directors of the Company but not consummated. The special committee of the board of directors did not recommend the Going Private Transaction and no such transaction was consummated. See Note 10 for discussion of the Going Private Transaction. On April 18, 2017, Emmis entered into the Fourth Amendment to the 2014 Credit Agreement. See Note 16, Subsequent Events, for more discussion of the Fourth Amendment. In connection with the closing of the sale of Texas Monthly on November 1, 2016, Emmis repaid $15.0 million of Term Loans and $8.5 million of Revolver borrowings (see Note 7 for more discussion of the sale of Texas Monthly). Under the terms of the 2014 Credit Agreement, Emmis was required to use all Net Available Proceeds (as defined in the 2014 Credit Agreement) from the sale of Texas Monthly to repay Term Loans unless it exercised its right under the 2014 Credit Agreement to reinvest a portion of the Net Available Proceeds in new long-term assets of the Company. On November 1, 2016, Emmis exercised this reinvestment right for up to $10.0 million of Net Available Proceeds. This election allows the Company to reduce the amount of Net Available Proceeds by amounts used to purchase assets within 365 days of the election, or 545 days of the election so long as the asset purchase is under contract within 365 days. Routine capital expenditures qualify as a reinvestment under the terms of the 2014 Credit Agreement. Future changes in these estimates will impact the calculation of Net Available Proceeds. The calculation of Net Available Proceeds was also reduced by working capital and other closing adjustments and $1.4 million of transaction costs, including severance obligations. The current calculation of Net Available Proceeds, reinvestments and Term Loan repayments related to the sale of Texas Monthly is as follows:
The current estimate of $4.4 million of remaining net available proceeds is included as a current maturity of long-term debt in the accompanying consolidated balance sheets as of February 28, 2017. The amount is not yet final as reinvestments are estimated and could change prior to the conclusion of the reinvestment period as described above. In connection with the closing of our sale of our Terre Haute, Indiana cluster, the Company repaid approximately $4.7 million of Term Loans in January 2017. In connection with the sale Los Angeles Magazine, Atlanta Magazine, Cincinnati Magazine and Orange Coast Magazine, the Company repaid approximately $1.9 million of Term Loans in March 2017, subsequent to our fiscal 2017 year-end. Borrowing under the 2014 Credit Agreement depends upon our continued compliance with certain operating covenants and financial ratios, including leverage and interest coverage as specifically defined. The operating covenants and other restrictions with which we must comply include, among others, restrictions on additional indebtedness, incurrence of liens, engaging in businesses other than our primary business, paying certain dividends, redeeming or repurchasing capital stock of Emmis, acquisitions and asset sales. No default or event of default has occurred or is continuing. The 2014 Credit Agreement provides that an event of default will occur if there is a “change in control” of Emmis, as defined. The payment of principal, premium and interest under the 2014 Credit Agreement is fully and unconditionally guaranteed, jointly and severally, by ECC and most of its existing wholly-owned domestic subsidiaries. Substantially all of Emmis’ assets, including the stock of most of Emmis’ wholly-owned, domestic subsidiaries, are pledged to secure the 2014 Credit Agreement. 2012 Credit Agreement On December 28, 2012, Emmis entered into a credit facility (the “2012 Credit Agreement”) to provide for total borrowings of up to $100 million, including (i) an $80 million term loan and (ii) a $20 million revolver, of which $5 million could be used for letters of credit. On June 10, 2014, Emmis entered into the 2014 Credit Agreement. In connection with the execution of the 2014 Credit Agreement, the 2012 Credit Agreement was terminated effective June 10, 2014, and all amounts outstanding under that agreement were paid in full. During the three months ended August 31, 2014, the Company recorded a loss on debt extinguishment of $1.5 million related to the termination of the 2012 Credit Agreement. 2014 Credit Agreement Covenants We were in compliance with all financial and non-financial covenants as of February 28, 2017. Our Total Leverage Ratio and Minimum Interest Coverage Ratio (each as defined in the 2014 Credit Agreement) requirements and actual amounts as of February 28, 2017 were as follows:
98.7FM Nonrecourse Debt On May 30, 2012, the Company, through wholly-owned, newly-created subsidiaries, issued $82.2 million of nonrecourse notes. Teachers Insurance and Annuity Association of America, through a participation agreement with Wells Fargo Bank Northwest, National Association, is entitled to receive payments made on the notes. The notes are obligations only of the newly-created subsidiaries, are non-recourse to the rest of the Company’s subsidiaries and are secured by the assets of the newly-created subsidiaries, including the payments made to the newly-created subsidiary related to the 98.7FM LMA, which are guaranteed by Disney Enterprises, Inc. The notes bear interest at 4.1%. Other Nonrecourse Debt Digonex issued $6.2 million of notes payable prior to Emmis’ acquisition of a controlling interest of Digonex on June 16, 2014. Emmis recorded these notes at fair value in its purchase price allocation as of June 16, 2014. The difference between the fair value recorded on June 16, 2014 and the face value of the notes is being accreted as additional interest expense through the maturity date of the notes. The notes are obligations of Digonex only and are non-recourse to the rest of Emmis' subsidiaries. Approximately $1.5 million of the Digonex notes are secured by the assets of Digonex and the remaining $4.7 million are unsecured. The notes bear simple interest at 5% with interest due at maturity of the secured notes on December 1, 2017 and the unsecured notes on December 31, 2017. Digonex is seeking to extend the maturity date of the notes to December 31, 2020. This extension requires the consent of all noteholders. As of May 11, 2017, the holders of the secured notes had agreed to the extension if the unsecured noteholders also consented, but consent from the unsecured noteholders had not yet been obtained. See Note 7 for more discussion of the acquisition of Digonex. During the quarter ended February 28, 2017, NextRadio, LLC issued $3.4 million of notes payable. The notes initially bear interest at 4.0% with interest due quarterly beginning in August 2018. The notes mature on December 23, 2021 and are to be repaid through revenues generated by enhanced advertisement revenues earned by NextRadio, LLC. If any portion of the notes remain unpaid at maturity, the lender has the option to exchange the notes for senior preferred equity of NextRadio, LLC's parent entity, TagStation, LLC. These notes are obligations of NextRadio, LLC and TagStation, LLC and are non-recourse to the rest of Emmis' subsidiaries. Subsequent to the Fourth Amendment to the 2014 Credit Agreement as discussed in Note 16 and based on amounts outstanding at February 28, 2017, mandatory principal payments of long-term debt for the next five years and thereafter are summarized below:
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Recurring Fair Value Measurements The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of February 28 (29), 2016 and 2017. The financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
Available for sale securities — Emmis’ available for sale securities are comprised of preferred stock of a private company that is not traded in active markets. The preferred stock is recorded at fair value, which is generally estimated using significant unobservable market parameters, resulting in a level 3 categorization. The carrying value of our available for sale securities is determined by using implied valuations of recent rounds of financing and by other corroborating evidence, including the application of various valuation methodologies including option-pricing and discounted cash flow based models. The following table shows a reconciliation of the beginning and ending balances for fair value measurements using significant unobservable inputs:
Non-Recurring Fair Value Measurements The Company has certain assets that are measured at fair value on a non-recurring basis under circumstances and events that include those described in Note 9, Intangible Assets and Goodwill, and are adjusted to fair value only when the carrying values are more than the fair values. The categorization of the framework used to price the assets is considered a Level 3 measurement due to the subjective nature of the unobservable inputs used to determine the fair value (see Note 9 for more discussion). Fair Value of Other Financial Instruments Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition. Refer to Note 7 for the fair values of assets acquired and liabilities assumed in connection with the Company's acquisitions. The estimated fair value of financial instruments is determined using the best available market information and appropriate valuation methodologies. Considerable judgment is necessary, however, in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange, or the value that ultimately will be realized upon maturity or disposition. The use of different market assumptions may have a material effect on the estimated fair value amounts. The following methods and assumptions were used to estimate the fair value of financial instruments: - Cash and cash equivalents: The carrying amount of these assets approximates fair value because of the short maturity of these instruments. - 2014 Credit Agreement debt: As of February 28, 2017, the fair value and carrying value, excluding original issue discount, of the Company's 2014 Credit Agreement debt was $140.0 million and $152.2 million, respectively. The Company's estimate of fair value was based on quoted prices of this instrument and is considered a Level 2 measurement. - Other long-term debt: The Company’s 98.7FM non-recourse debt and other non-recourse debt is not actively traded and is considered a level 3 measurement. The Company believes the current carrying value of its other long-term debt approximates its fair value. |
ACQUISITIONS AND DISPOSITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS For the year ended February 28, 2017 Sale of Los Angeles Magazine, Atlanta Magazine, Cincinnati Magazine and Orange Coast Magazine On February 28, 2017, Emmis closed on its sale of substantially all of the assets of Los Angeles Magazine, Atlanta Magazine, Cincinnati Magazine and Orange Coast Magazine (the "Hour Magazines") for gross proceeds of $6.5 million to Hour Media Group, LLC. The Company previously announced that it was exploring strategic alternatives for its publishing division, excluding Indianapolis Monthly. Emmis decided to sell most of its publishing assets to reduce debt outstanding. Emmis received net proceeds of $2.9 million, consisting of the stated purchase price of $6.5 million, less $0.7 million held in escrow and disposition costs totaling $2.9 million. The $2.9 million of disposition costs primarily relate to $1.6 million of employee-related costs, including severance, and transaction advisory fees of $1.0 million. The funds held in escrow secure Emmis' post closing indemnification obligations in the purchase agreement and are scheduled to be released six months after the closing of the transaction. The funds held in escrow are classified as restricted cash in our accompanying consolidated balance sheets. After settling retention bonuses to affected employees, substantially all of the net proceeds were used to repay term loan indebtedness under Emmis' senior credit facility. Emmis recorded a $2.7 million gain on the sale of the Hour Magazines. The Hour Magazines had historically been included in our Publishing segment. This disposal did not qualify for reporting as a discontinued operation as it did not represent a strategic shift for the Company as described in Accounting Standards Codification 205-20-45-1C. The following table summarizes certain operating results of the Hour Magazines for all periods presented. Pursuant to Accounting Standards Codification 205-20-45-6, interest expense associated with the required Term Loan repayment associated with the sale of the Hour Magazines is included in the magazines' results below.
Sale of Terre Haute, Indiana radio stations On January 30, 2017, Emmis closed on its sale of substantially all of the assets of its radio stations in Terre Haute, Indiana, in two contemporaneous transactions. In one transaction, Emmis sold the assets of WTHI-FM and the intellectual property of WWVR-FM to Midwest Communications, Inc. In the other transaction, Emmis sold the assets of WFNF-AM, WFNB-FM, WWVR-FM (other than the intellectual property for that station) and an FM translator to DLC Media, Inc. The Company previously announced that it was exploring strategic alternatives for these radio stations. Emmis believed that operating stations in Terre Haute, Indiana was not a core part of its radio strategy and its strong market position in the Terre Haute market would be attractive to potential buyers. At closing, Emmis received gross proceeds of approximately $5.2 million for both transactions. After payment of brokerage and other transaction costs, net proceeds totaled $4.8 million and were used to repay term loan indebtedness under Emmis’ senior credit facility. Emmis recorded a $3.5 million gain on the sale of its Terre Haute radio stations. The Terre Haute radio stations had historically been included in our Radio segment. This disposal did not qualify for reporting as a discontinued operation as it did not represent a strategic shift for the Company as described in Accounting Standards Codification 205-20-45-1C. The following table summarizes certain operating results of the our Terre Haute radio stations for all periods presented. Pursuant to Accounting Standards Codification 205-20-45-6, interest expense associated with the required Term Loan repayment associated with the sale of the Terre Haute radio stations is included in the stations' results below.
Sale of Texas Monthly On November 1, 2016, Emmis closed on its sale of Texas Monthly for gross proceeds of $25.0 million in cash to a subsidiary of Genesis Park, LP. The Company previously announced that it was exploring strategic alternatives for its publishing division, excluding Indianapolis Monthly. Emmis decided to sell most of its publishing assets to reduce debt outstanding. Emmis received net proceeds of $23.4 million, consisting of the stated purchase price of $25.0 million, net of estimated purchase price adjustments totaling $0.7 million and disposition costs totaling $0.9 million. The $0.9 million of disposition costs primarily related to severance costs. Proceeds were used to repay term and revolving loan indebtedness under Emmis’ senior credit facility. Emmis recorded a $17.4 million gain on the sale of Texas Monthly. Texas Monthly had historically been included in our Publishing segment. This disposal did not qualify for reporting as a discontinued operation as it did not represent a strategic shift for the Company as described in Accounting Standards Codification 205-20-45-1C. The following table summarizes certain operating results of Texas Monthly for all periods presented. Pursuant to Accounting Standards Codification 205-20-45-6, interest expense associated with the required Term Loan repayment associated with the sale of Texas Monthly is included in the magazine's results below. The required Term Loan repayment is preliminary and may be adjusted for revisions to estimates and the Company's reinvestment of proceeds of the Texas Monthly transaction. See Note 5 for more discussion.
Unaudited pro forma summary information is presented below for the years ended February 28 (29), 2016 and 2017, assuming the dispositions discussed above and related mandatory debt repayments had occurred on the first day of the pro forma periods presented below.
For the year ended February 29, 2016 There were no acquisitions or dispositions during this period. For the year ended February 28, 2015 Acquisition of WBLS-FM & WLIB-AM On February 11, 2014, subsidiaries of Emmis entered into a Purchase and Sale Agreement with YMF, pursuant to which Emmis agreed to purchase the assets of New York radio stations WBLS-FM and WLIB-AM (collectively, the "Stations") for $131.0 million, subject to customary adjustments and prorations. The purchase of the Stations enhances the Company's scale in New York, the second largest market in the United States as measured by total radio revenues. Additionally, the Stations' adult urban and urban gospel formats complement the hip-hop format of our existing station in New York. Upon approval of the transaction by the Federal Communications Commission, Emmis and YMF executed the first closing of the transaction on June 10, 2014, whereby YMF transferred the assets of the Stations to Emmis and Emmis paid YMF $55.0 million of cash and transferred to YMF Media New York a 49.9% ownership interest in the Emmis subsidiaries that own the Stations' assets. The second closing occurred on February 13, 2015 and involved the payment of the balance of the purchase price of $76.0 million to YMF in exchange for the transfer to Emmis of YMF Media New York's interest in the Emmis subsidiaries that own the Stations' assets. On February 11, 2014, Emmis and YMF entered into an LMA for the Stations. On March 1, 2014, Emmis began providing programming and selling advertising for the Stations. Under the terms of the LMA, Emmis paid $1.275 million per month to YMF for the right to program the Stations and sell advertising. The monthly LMA fee decreased to approximately $0.74 million after the first closing of the purchase of the Stations on June 10, 2014. The ongoing, reduced monthly LMA fees were recognized as additional purchase price of the Stations on June 10, 2014. Prior to the first closing of the purchase, LMA fees were recognized as operating expenses. Emmis gained control over the Stations effective with the first closing on June 10, 2014 and consolidated the Stations beginning on that date. YMF was entitled to the remaining purchase price of $76.0 million at the second closing and the $0.74 million monthly LMA fees until the second closing, but did not otherwise share in the income or loss of the Stations subsequent to the first closing. On June 10, 2014, Emmis entered into the 2014 Credit Agreement which included a senior secured term loan facility of $185.0 million and a senior secured revolving credit facility of $20.0 million. Pursuant to the 2014 Credit Agreement, the Company borrowed $185.0 million of the senior secured term loans on June 10, 2014; $109.0 million was disbursed to the Company and the remaining $76.0 million was funded into escrow. The proceeds from the term loan and additional funding from the revolving credit facility were used to fund the first closing of the acquisition described above, settle amounts due under the Company's former credit facility, and pay fees related to the issuance of the Credit Agreement. The $76.0 million of funds in escrow were used to fund substantially all of the second closing of the acquisition on February 13, 2015. See Note 5 for more discussion of the 2014 Credit Agreement. Goodwill was calculated as the excess of the purchase price over the net assets acquired. Management attributed the goodwill recognized in the acquisition of the Stations to the power of the existing WBLS-FM and WLIB-AM brands in the New York marketplace as well as the synergies and growth opportunities expected through the combination of the adult urban and urban gospel stations with the Company's existing hip-hop station. The $58.4 million of goodwill recognized in the transaction was included in our Radio segment and is deductible for tax purposes. As part of our annual impairment testing conducted in December 2014, the Company determined that the goodwill associated with this transaction was fully impaired. See Note 9 for more discussion of the goodwill impairment. The indefinite-lived intangible assets are comprised entirely of the Stations' FCC licenses. FCC broadcasting licenses are renewed every eight years; consequently, we continually monitor our stations’ compliance with the various regulatory requirements. Historically, all of our FCC broadcasting licenses have been renewed at or after the end of their respective periods, and we expect that these FCC broadcasting licenses will continue to be renewed in the future. Our indefinite-lived intangibles are not amortized. Other intangibles consist of a customer list intangible asset of $0.3 million and a syndicated programming intangible asset of $2.2 million. The customer list intangible asset is being amortized over 3 years and the syndicated programming intangible asset is being amortized over 7 years, which is the remaining term of the programming agreement, including renewals which are at the option of the Company. The results of operations of the Stations are largely included in the Company's results of operations for the year ended February 28, 2015 as the Company began providing programming and selling advertising of the Stations on March 1, 2014 pursuant to an LMA. Net revenues and station operating expenses, excluding LMA fees and depreciation and amortization expense, of WBLS-FM and WLIB-AM were $28.1 million and $20.3 million, respectively, for the year ended February 28, 2015. We incurred acquisition costs related to the Stations totaling $0.7 million for the year ended February 28, 2015. Acquisition costs included in station operating expenses, excluding LMA fees and depreciation and amortization expense, in the accompanying consolidated statements of operations were $0.4 million for the year ended February 28, 2015. Acquisition costs included in corporate expenses, excluding depreciation and amortization expense, in the accompanying consolidated statements of operations were $0.3 million for the year ended February 28, 2015. Including acquisition costs incurred during the year ended February 28, 2014 of $0.9 million, cumulative acquisition costs related to the Stations through February 28, 2015 were $1.6 million. In connection with the first closing, Emmis and YMF executed an amendment to their Asset Purchase Agreement dated April 5, 2012 relating to Emmis' sale of the intellectual property of WRKS-FM. The amendment, executed on June 10, 2014, fixed all future earn-out payments YMF owed to Emmis pursuant to the April 5, 2012 Asset Purchase Agreement based upon the parties' estimate of the earn-out payments that would otherwise be owed to Emmis under this pre-existing contractual relationship. Emmis recognized a gain on settlement of the contract of $2.5 million, which is included in gain on contract settlement in the accompanying consolidated statements of operations. All amounts owed to Emmis pursuant to Emmis' sale of WRKS-FM intellectual property were collected prior to February 28, 2015. Acquisition of a controlling interest in Digonex Technologies, Inc. On June 16, 2014, Emmis invested $3.0 million in Digonex Technologies, Inc ("Digonex"), an Indiana corporation that provides dynamic pricing solutions to customers in various industries. Emmis believes that its acquisition of Digonex gives it entry into the growing dynamic pricing marketplace which can serve a diverse clientèle, and can possibly help Emmis with yields on its own advertising inventory and special events. Emmis’ initial investment of $3.0 million ($1.0 million in Digonex Preferred Stock and $2.0 million in the form of convertible debt) resulted in Emmis appointing a majority of the board of directors of Digonex and holding rights convertible into 51% of the fully diluted common equity of Digonex. As Emmis controlled the board of directors of Digonex as of its initial investment on June 16, 2014, Emmis began consolidating the results of Digonex as of that date. Emmis has contributed $6.5 million to Digonex in the form of convertible debt, which resulted in Emmis owning rights that are convertible into at least 80% of the common equity of Digonex. Digonex reports on a calendar year ending December 31, which Emmis consolidates into its fiscal year ending February 28(29). Net revenues and operating expenses, excluding depreciation and amortization expense, of Digonex for the period June 16, 2014 to December 31, 2014, which Emmis consolidated into its results of operations for the year ended February 28, 2015 were $0.2 million and $1.4 million, respectively. The goodwill recognized in the acquisition of Digonex is attributable to the assembled workforce and existing business processes. The $2.8 million of goodwill recognized in the transaction is included in our corporate and emerging technologies segment and is not deductible for tax purposes. As part of our annual impairment testing conducted in December 2015, the Company determined that the goodwill associated with Digonex was partially impaired, and recorded an impairment charge of $0.7 million. During the year ended February 28, 2017, the Company determined that the remaining goodwill associated with Digonex was fully impaired and recorded an impairment charge of $2.1 million. See Note 9 for more discussion of the goodwill impairments. Other intangibles consist of patents of $5.2 million, a customer list intangible asset of $0.7 million and trademarks of $0.3 million. The patents were being amortized over 7 years, the customer list intangible asset was being amortized over 3 years and the trademarks were being amortized over 15 years. During the year ended February 29, 2016, the Company recorded an impairment charge of $3.4 million related to the patents of Digonex. During the year ended February 28, 2017, the Company determined that the patents, customer list, and trademarks of Digonex were fully impaired and recorded an impairment charge of $0.9 million. See Note 9 for more discussion of the definite-lived intangible impairments. |
OTHER SIGNIFICANT TRANSACTIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER SIGNIFICANT TRANSACTIONS | OTHER SIGNIFICANT TRANSACTIONS Going private offer On August 18, 2016, the Board of Directors of the Company received a letter from E Acquisition Corporation ("EAC"), an Indiana corporation owned by Jeffrey H. Smulyan, the Company’s Chairman of the Board, Chief Executive Officer and controlling shareholder, setting forth a non-binding proposal by which E Acquisition Corporation (the “Proposing Person”), would acquire all the outstanding shares of Class A Common Stock of the Company that were not owned by the Proposing Person at a cash purchase price of $4.10 per share (the “Proposal”). The Proposal contemplated that, following the closing of the proposed transaction, the Company’s shares would no longer be registered with the Securities and Exchange Commission and the Company would no longer be a reporting company or have any public shares traded on Nasdaq. The Company’s Board of Directors formed a special committee of independent and disinterested directors (the “Special Committee”) to review and evaluate the Proposal. The members of the Special Committee were Susan Bayh and Peter Lund. On October 14, 2016, EAC delivered to the Special Committee a letter (the “Proposal Expiration Letter”) confirming that the offer had expired on October 14, 2016 and had not been extended. The Special Committee engaged independent legal counsel and independent financial advisors to assist the Special Committee in the evaluation of the Proposal. During the year ended February 28, 2017, the Company incurred $0.9 million of costs associated with the Proposal, which are included in corporate expenses, excluding depreciation and amortization expense in the accompanying consolidated statements of operations. No further costs are expected to be incurred in connection with the going private offer as it has expired. Next Radio LLC - Sprint Agreement On August 9, 2013, NextRadio LLC, a wholly-owned subsidiary of Emmis, entered into an agreement with Sprint whereby Sprint agreed to pre-load the Company's smartphone application, NextRadio, in a minimum of 30 million FM-enabled wireless devices on the Sprint wireless network over a three-year period. In return, NextRadio LLC agreed to pay Sprint $15 million per year in equal quarterly installments over the three year term and to share with Sprint certain revenue generated by the NextRadio application. Emmis has not guaranteed NextRadio LLC's performance under this agreement and Sprint does not have recourse to any Emmis related entity other than NextRadio LLC. Additionally, the agreement does not limit the ability of NextRadio LLC to place the NextRadio application on FM-enabled devices on other wireless networks. Through February 28, 2017, the NextRadio application had not generated a material amount of revenue. Nearly all of the largest radio broadcasters and many smaller radio broadcasters expressed support for NextRadio LLC's agreement with Sprint. Accordingly, NextRadio LLC entered into a number of funding agreements with radio broadcasters and other participants in the radio industry to collect and remit cash to Sprint to fulfill the quarterly payment obligation. As part of some of these funding agreements, Emmis agreed to certain limitations on the operation of its NextRadio and TagStation businesses, including assurances of access to the NextRadio app and to TagStation (the cloud-based engine that provides data to the NextRadio application), and limitations on the sale of the businesses to potential competitors of the U.S. radio industry. Emmis also granted the U.S. radio industry (as defined in the funding agreements) a call option on substantially all of the assets used in the NextRadio and TagStation businesses in the United States. The call option may be exercised in August 2017 or August 2019 by paying Emmis a purchase price equal to the greater of (i) the appraised fair market value of the NextRadio and TagStation businesses, or (ii) two times Emmis' cumulative investments in the development of the businesses. If the call option is exercised, the businesses will continue to be subject to the operating limitations applicable today, and no radio operator will be permitted to own more than 30% of the NextRadio and TagStation businesses. Since the inception of NextRadio LLC's agreement with Sprint through December 7, 2016, NextRadio LLC had remitted to Sprint approximately $33.2 million. Effective December 8, 2016, NextRadio LLC and Sprint entered into an amendment of their original agreement. The amendment called for NextRadio LLC to make installment payments totaling $6.0 million million through March 15, 2017, which have been paid. In exchange, Sprint agreed to forgive the remaining $5.8 million that it was due under the original agreement, and in return receive a higher share of certain revenue generated by the NextRadio application. In addition, Sprint agreed to continue to pre-load the NextRadio application through March 31, 2020 with no additional cash payments from NextRadio (other than revenue share payments). NextRadio LLC received a loan of $4.0 million for the sole purpose of fulfilling the payment obligations to Sprint under the amendment. The loan will be repaid out of proceeds from sales of enhanced advertising through the NextRadio application. Through February 28, 2017, NextRadio LLC received $3.4 million under the loan, which was promptly remitted to Sprint and is included in station operating expenses, excluding depreciation and amortization expense in the accompanying consolidated statement of operations. The remaining $0.6 million of loan proceeds was received in March 2017 and was promptly remitted to Sprint. Emmis determined that NextRadio LLC is a variable interest entity (VIE) and that Emmis is the primary beneficiary because the Company has the power to direct substantially all of the activities of NextRadio LLC, and because the Company may absorb certain losses and receive certain benefits from the operations of the VIE. Emmis does not record any revenue or expense related to the amounts that are collected and remitted to Sprint except the portion of any payment to Sprint that was actually contributed to NextRadio LLC by Emmis (or the amounts funded by NextRadio LLC via the loan discussed above). Emmis contributed approximately $0.5 million and $0.4 million to NextRadio LLC during the years ended February 2015 and 2016, respectively. These amounts were recorded as station operating expenses, excluding depreciation and amortization expense. Emmis did not fund any of NextRadio LLC's payments to Sprint during the year ended February 28, 2017 as it had already fully funded its share through that date. As of February 28, 2017, the carrying value of assets within NextRadio LLC totaled $0.1 million, which represents cash collected by NextRadio LLC from other broadcasting companies and other companies in the radio industry. This cash is restricted because it must be remitted to Sprint. NextRadio LLC had $3.5 million of liabilities at February 28, 2017, which represents the obligation to remit $0.1 million of cash received from radio industry participants to Sprint along with NextRadio LLC's nonrecourse debt of $3.4 million. NextRadio LLC remitted all cash collected from other broadcasting companies and other companies in the radio industry to Sprint as of February 29, 2016, and thus had no assets or liabilities as of that date. LMA of 98.7FM in New York, NY and Related Financing Transaction On April 26, 2012 Emmis entered into an LMA with a subsidiary of Disney Enterprises, Inc., pursuant to which the Disney subsidiary purchased the right to provide programming for 98.7FM in New York, NY until August 24, 2024. Emmis retains ownership and control of 98.7FM, including the related FCC license during the term of the LMA and receives an annual fee from the Disney subsidiary. The fee, initially $8.4 million annually, increases by 3.5% annually until the LMA's termination. As discussed in Note 5, Emmis, through newly-created subsidiaries, issued $82.2 million of notes, which are nonrecourse to the rest of the Company's subsidiaries and are secured by the assets of the newly-created subsidiaries including the payments made in connection with the 98.7FM LMA. See Notes 1 and 5 for more discussion of the LMA payments and nonrecourse debt. The following table summarizes Emmis' operating results of 98.7FM for all periods presented. Emmis programmed 98.7FM until the LMA commenced on April 26, 2012. 98.7FM is a part of our Radio segment. Results of operations of 98.7FM for the years ended February 2015, 2016 and 2017 were as follows:
Assets and liabilities of 98.7FM as of February 28 (29), 2016 and 2017 were as follows:
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INTANGIBLE ASSETS AND GOODWILL |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL In accordance with ASC Topic 350, Intangibles—Goodwill and Other, the Company reviews goodwill and other intangibles at least annually for impairment. In connection with any such review, if the recorded value of goodwill and other intangibles is greater than its fair value, the intangibles are written down and charged to results of operations. FCC licenses are renewed every eight years at a nominal cost, and historically all of our FCC licenses have been renewed at the end of their respective eight-year periods. Since we expect that all of our FCC licenses will continue to be renewed in the future, we believe they have indefinite lives. Radio stations in a geographic market cluster are considered a single unit of accounting, provided that they are not being operated under a Local Marketing Agreement by another broadcaster. Impairment testing The Company generally performs its annual impairment review of indefinite-lived intangibles as of December 1 each year. At the time of each impairment review, if the fair value of the indefinite-lived intangible is less than its carrying value a charge is recorded to results of operations. When indicators of impairment are present, the Company will perform an interim impairment test. Impairment recorded as a result of our interim and annual impairment testing is summarized in the table below. We will perform additional interim impairment assessments whenever triggering events suggest such testing for the recoverability of these assets is warranted. The table below summarizes the results of our interim and annual impairment testing for the three years ending February 28, 2017.
Valuation of Indefinite-lived Broadcasting Licenses Fair value of our FCC licenses is estimated to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To determine the fair value of our FCC licenses, the Company uses an income valuation method when it performs its impairment tests. Under this method, the Company projects cash flows that would be generated by each of its units of accounting assuming the unit of accounting was commencing operations in its respective market at the beginning of the valuation period. This cash flow stream is discounted to arrive at a value for the FCC license. The Company assumes the competitive situation that exists in each market remains unchanged, with the exception that its unit of accounting commenced operations at the beginning of the valuation period. In doing so, the Company extracts the value of going concern and any other assets acquired, and strictly values the FCC license. Major assumptions involved in this analysis include market revenue, market revenue growth rates, unit of accounting audience share, unit of accounting revenue share and discount rate. Each of these assumptions may change in the future based upon changes in general economic conditions, audience behavior, consummated transactions, and numerous other variables that may be beyond our control. The projections incorporated into our license valuations take into consideration then current economic conditions. Below are some of the key assumptions used in our annual impairment assessments. As part of our recent annual impairment assessments, we reduced long-term growth rates in most of the markets in which we operate based on recent industry trends and our expectations for the markets going forward. The methodology used to value our FCC licenses has not changed in the three-year period ended February 28, 2017.
As of February 28 (29), 2016 and 2017, the carrying amounts of the Company’s FCC licenses were $205.1 million and $197.7 million, respectively. These amounts are entirely attributable to our radio division. The table below presents the changes to the carrying values of the Company’s FCC licenses for the years ended February 2016 and 2017 for each unit of accounting.
The FCC license purchase of $0.5 million during the year ended February 29, 2016 solely relates to our purchase of an FM translator in Indianapolis. In January 2017, we sold all of our stations in Terre Haute, Indiana (see Note 7 for more discussion). Impairment was recorded for our New York station being operated pursuant to an LMA during the years ended February 2016 and 2017 along with impairment for our Austin, St. Louis and Terre Haute clusters. Stagnant market revenues in recent years, coupled with a reduction in the Company's estimate of long-term revenue growth rates, led to a lower estimate of fair value for these FCC licenses. Valuation of Goodwill ASC Topic 350 requires the Company to test goodwill for impairment at least annually using a two-step process. The first step is a screen for potential impairment, while the second step measures the amount of impairment. The Company conducts the two-step impairment test on December 1 of each fiscal year, unless indications of impairment exist during an interim period. When assessing its goodwill for impairment, the Company uses an enterprise valuation approach to determine the fair value of each of the Company’s reporting units (radio stations grouped by market, excluding any stations that are being operated pursuant to an LMA). Management determines enterprise value for each of its reporting units by multiplying the two-year average station operating income generated by each reporting unit (current year based on actual results and the next year based on budgeted results) by an estimated market multiple. The Company uses a blended station operating income trading multiple of publicly traded radio operators as well as recent market transactions as a benchmark for the multiple it applies to its radio reporting units. For the annual assessment performed as of December 1, 2016, the Company applied a market multiple of 8.0 times the reporting unit’s operating performance. Management believes this methodology for valuing radio properties is a common approach and believes that the multiples used in the valuation are reasonable given our peer comparisons and market transactions. To corroborate the step-one reporting unit fair values determined using the market approach described above, management also uses an income approach, which is a discounted cash flow method to determine the fair value of the reporting unit. The Company used an income approach to determine the enterprise value of Digonex. Digonex is a dynamic pricing business that does not have well-established industry trading multiples, analyst estimates of valuations, or recently completed transactions that would indicate fair values of these businesses. As such, the Company used a discounted cash flow method to determine the fair value of Digonex. This enterprise valuation is compared to the carrying value of the reporting unit for the first step of the goodwill impairment test. If the reporting unit exhibits impairment, the Company proceeds to the second step of the goodwill impairment test. For its step-two testing, the enterprise value is allocated among the tangible assets, indefinite-lived intangible assets (FCC licenses valued using a direct-method valuation approach) and unrecognized intangible assets, such as customer lists, with the residual amount representing the implied fair value of the goodwill. To the extent the carrying amount of the goodwill exceeds the implied fair value of the goodwill, the difference is recorded as an impairment charge in the statement of operations. The methodology used to value our goodwill has not changed in the three-year period ended February 28, 2017. During the quarter ended August 31, 2016, the Company lowered its growth expectations for Digonex for the next several years due to slow client adoption of dynamic pricing services. While the Company continues to believe in the long-term growth prospects of Digonex, the lengthy sales cycle has caused Digonex to perform below expectations to date. Despite lowering near-term growth expectations for Digonex in connection with our annual impairment review for fiscal 2016 as discussed below, performance in the first six months of fiscal 2017 indicated that a further revision was appropriate. Our then-current projections assumed that Digonex would generate cash flow losses in the short and medium-term. The combination of lower-than-expected current period results, coupled with downward revisions to future revenue projections, resulted in an impairment indicator that caused the Company to assess goodwill and related intangibles on an interim basis during the quarter ended August 31, 2016. The Company's discounted cash flow analysis for Digonex indicated a nominal enterprise value. Therefore, in connection with the interim impairment test, Emmis determined that Digonex's goodwill was fully impaired and recorded an impairment loss of $2.1 million. Subsequent to our impairment of Digonex goodwill and the sale of Texas Monthly (see note 7 for more discussion), the Company's goodwill relates entirely to its Radio segment. During our December 2015 annual goodwill impairment test, the Company wrote off $0.7 million of goodwill associated with Digonex. Emmis acquired a controlling interest in Digonex in June 2014 and recorded approximately $2.8 million of goodwill. The performance of Digonex since Emmis acquired its controlling interest has lagged the original assumptions used when estimating the fair values of the acquired assets and liabilities of the business. This, coupled with a reduction in long-term growth estimates for Digonex, resulted in a step-one indication of impairment. Upon completion of the step-two analysis, the Company determined that Digonex goodwill was partially impaired. During our December 2014 annual goodwill impairment test, the Company wrote off $58.4 million of goodwill associated with our New York radio cluster. This goodwill related entirely to our purchase of WBLS-FM and WLIB-AM on June 10, 2014. Declining performance of the entire New York radio market significantly impacted our operating performance in New York. These declines, combined with lower projected revenue growth rates in the New York market, resulted in a step-one indication of impairment for our New York cluster on both the market and income approaches. Upon completing the step-two analysis, the Company determined that the full carrying amount of the New York cluster goodwill of $58.4 million was impaired. As of February 28 (29), 2016 and 2017, the carrying amount of the Company’s goodwill was $14.7 million and $4.6 million. The table below presents the changes to the carrying values of the Company’s goodwill for the years ended February 2016 and 2017 for each reporting unit. As noted above, each reporting unit is a cluster of radio stations in one geographical market (except for stations being operated pursuant to LMAs) and magazines on an individual basis. We sold Texas Monthly in November 2016 (see Note 7 for more discussion).
Definite-lived intangibles The following table presents the weighted-average remaining useful life at February 28, 2017 and gross carrying amount and accumulated amortization for each major class of definite-lived intangible assets at February 28 (29), 2016 and 2017:
In accordance with Accounting Standards Codification paragraph 360-10, the Company performs an analysis to (i) determine if indicators of impairment of a long-lived asset are present, (ii) test the long-lived asset for recoverability by comparing undiscounted cash flows of the long-lived asset to its carrying value and (iii) measure any potential impairment by comparing the long-lived asset's fair value to its current carrying value. In connection with this analysis for the year ended February 29, 2016, the Company determined that the patents of Digonex were impaired and recorded an impairment charge of $3.4 million. As discussed above, performance below the Company's expectations, coupled with a downward revision of long-term forecasts for Digonex, led the Company to measure impairment for Digonex's definite-lived intangibles during the quarter ended August 31, 2016. The Company determined that the patents, customer list and trademarks of Digonex were fully impaired and recorded an impairment loss of $0.9 million. Total amortization expense from definite-lived intangibles was $0.9 million, $1.5 million and $0.7 million for the years ended February 2015, 2016 and 2017, respectively. The following table presents the Company's estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangibles:
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EMPLOYEE BENEFIT PLANS |
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Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS a. Equity Incentive Plans The Company has stock options and restricted stock grants outstanding that were issued to employees or non-employee directors under one or more of the following plans: the 2004 Equity Compensation Plan, the 2010 Equity Compensation Plan, the 2012 Equity Compensation Plan, the 2015 Equity Compensation Plan and the 2016 Equity Compensation Plan. These outstanding grants continue to be governed by the terms of the applicable plan. 2016 Equity Compensation Plan At the 2016 annual meeting, the shareholders of Emmis approved the 2016 Equity Compensation Plan (“the 2016 Plan”). Under the 2016 Plan, awards equivalent to 1.5 million shares of common stock may be granted. Furthermore, any unissued awards from prior equity compensation plans (or shares subject to outstanding awards that would again become available for awards under this plan) increases the number of shares of common stock available for grant under the 2016 Plan. The awards, which have certain restrictions, may be for incentive stock options, nonqualified stock options, shares of restricted stock, restricted stock units, stock appreciation rights or performance units. Under the 2016 Plan, all awards are granted with a purchase price equal to at least the fair market value of the stock except for shares of restricted stock and restricted stock units, which may be granted with any purchase price (including zero). The stock options under the 2016 Plan generally expire not more than 10 years from the date of grant. Under the 2016 Plan, awards equivalent to approximately 0.6 million shares of common stock were available for grant as of February 28, 2017. 2017 Equity Compensation Plan On March 7, 2017, the board of directors of Emmis approved the 2017 Equity Compensation Plan ("the 2017 Plan"). The 2017 Plan won't become effective until it is approved by Emmis' shareholders at the annual meeting in July 2017. However, Emmis' Chairman and Chief Executive Officer, Jeffrey H. Smulyan, controls more than 50% of the vote on this matter and has informed the board of directors that he intends to vote in favor of approving the 2017 Plan. Under the 2017 Plan, awards equivalent to 2.0 million shares of common stock may be granted. Furthermore, any unissued awards from the 2016 Equity Compensation Plan (or shares subject to outstanding awards that would again become available for awards under this plan) increases the number of shares of common stock available for grant under the 2017 Plan. The awards, which have certain restrictions, may be for incentive stock options, nonqualified stock options, shares of restricted stock, restricted stock units, stock appreciation rights or performance units. Under the 2017 Plan, all awards are granted with a purchase price equal to at least the fair market value of the stock except for shares of restricted stock and restricted stock units, which may be granted with any purchase price (including zero). The stock options under the 2017 Plan generally expire not more than 10 years from the date of grant. b. 401(k) Retirement Savings Plan Emmis sponsors a Section 401(k) retirement savings plan that is available to substantially all employees age 18 years and older who have at least 30 days of service. Employees may make pretax contributions to the plan up to 50% of their compensation, not to exceed the annual limit prescribed by the Internal Revenue Service (“IRS”). Emmis may make discretionary matching contributions to the plan in the form of cash or shares of the Company’s Class A common stock. Emmis has historically matched employee contributions at 33% up to a maximum of 6% of eligible compensation. Emmis' discretionary contributions were made in cash until March 2015. From March 2015 through December 2015, Emmis' discretionary contributions were made in the form of Class A common stock. Emmis suspended its discretionary contributions on January 1, 2016. Emmis’ discretionary contributions to the plan totaled $1.1 million and $0.9 million for the years ended February 2015 and 2016, respectively. No discretionary matching contributions were made during the year ended February 28, 2017. c. Defined Contribution Health and Retirement Plan Emmis contributes to a multi-employer defined contribution health and retirement plan for employees who are members of a certain labor union. Amounts charged to expense related to the multi-employer plan were approximately $0.3 million for each of the years ended February 2015, 2016 and 2017. |
OTHER COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER COMMITMENTS AND CONTINGENCIES | OTHER COMMITMENTS AND CONTINGENCIES a. Commitments The Company has various commitments under the following types of material contracts: (i) operating leases; (ii) employment agreements and (iii) other contracts with annual commitments (mostly contractual services for audience measurement information) at February 28, 2017 as follows:
Emmis leases certain office space, tower space, equipment and automobiles under operating leases expiring at various dates through March 2032. Some of the lease agreements contain renewal options and annual rental escalation clauses, as well as provisions for payment of utilities and maintenance costs. The Company recognizes escalated rents on a straight-line basis over the term of the lease agreement. Rental expense during the years ended February 2015, 2016 and 2017 was approximately $9.1 million, $8.9 million and $8.3 million, respectively. The Company recognized approximately $0.3 million, $0.3 million and $0.4 million of sublease income as a reduction of rent expense for the years ended February 2015, 2016, and 2017 respectively. Total minimum sublease rentals to be received in the future under noncancelable subleases as of February 28, 2017 amounted to $216 thousand, all of which is expected to be received during the year ended February 28, 2018. b. Litigation The Company is a party to various legal proceedings arising in the ordinary course of business. In the opinion of management of the Company, there are no legal proceedings pending against the Company likely to have a material adverse effect on the Company. |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES United States and foreign income (loss) before income taxes for the years ended February 2015, 2016 and 2017 was as follows:
The provision (benefit) for income taxes for the years ended February 2015, 2016, and 2017 consisted of the following:
The provision (benefit) for income taxes for the years ended February 2015, 2016 and 2017 differs from that computed at the Federal statutory corporate tax rate as follows:
The components of deferred tax assets and deferred tax liabilities at February 29, 2016 and February 28, 2017 are as follows:
A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset (“DTA”) will not be realized. The Company historically recorded a full valuation allowance on all U.S. (federal and state) deferred tax assets. The Company does not benefit its deferred tax assets based on the deferred tax liabilities (“DTLs”) related to indefinite-lived intangibles that are not expected to reverse during the carry-forward period. Because these DTLs would not reverse until some future indefinite period when the intangibles are either sold or impaired, any resulting temporary differences cannot be considered a source of future taxable income to support realization of the DTAs. The Company decreased its valuation allowance by $6.3 million ($5.1 million federal and $1.2 million state), from $66.7 million as of February 29, 2016, to $60.4 million as of February 28, 2017. The Company has considered future taxable income and ongoing prudent and feasible tax-planning strategies in assessing the need for the valuation allowance. The Company will assess quarterly whether it remains more likely than not that the deferred tax assets will not be realized. In the event the Company determines at a future time that it could realize its deferred tax assets in excess of the net amount recorded, the Company will reduce its deferred tax asset valuation allowance and decrease income tax expense in the period when the Company makes such determination. The Company has federal net operating losses ("NOLs") of $79 million and state NOLs of $168 million available to offset future taxable income. The federal net operating loss carryforwards begin expiring in 2030, and the state net operating loss carryforwards expire between the years ending February 2018 and February 2036. A valuation allowance has been provided for the net operating loss carryforwards related to states in which the Company no longer has operating results as it is more likely than not that substantially all of these net operating losses will expire unutilized. The $3.4 million of tax credits at February 28, 2017 primarily relates to alternative minimum tax carryforwards that can be carried forward indefinitely. This amount also includes tax credits in Illinois, Texas, and a federal research credit, all of which have a full valuation allowance. The activities of Digonex Technologies, Inc., a C Corporation under the Internal Revenue Code, are consolidated for financial statement purposes, but are not included in the U.S. consolidated income tax return of Emmis. As of February 28, 2017, Digonex has federal NOLs of $45 million and state NOLs of $45 million . If Digonex produces pretax income in the future, it is possible that the utilization of these NOL carryforwards will be limited due to Section 382 of the Internal Revenue Code. The Company is in the process of completing a Section 382 study to determine the applicable limitation, if any. As of February 28, 2017, the Company was able to determine that at least $15 million of federal NOLs and $15 million of state NOLs will be fully available to offset future taxable income. These amounts are included in the above consolidated federal and state NOL totals of $79 million and $168 million, respectively. Accounting Standards Codification paragraph 740-10 clarifies the accounting for uncertainty in income taxes by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken within a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest benefit that is greater than 50 percent likely of being realized upon ultimate settlement. As of February 28, 2017, the estimated value of the Company’s net uncertain tax positions is approximately $0.1 million, most of which is included in other noncurrent liabilities, as the Company does not expect to settle the items within the next 12 months. The following is a tabular reconciliation of the total amounts of gross unrecognized tax benefits for the years ending February 29, 2016 and February 28, 2017:
Included in the balance of unrecognized tax benefits are tax benefits that, if recognized, would reduce the Company’s provision for income taxes totaling $0.1 million and $0.1 million as of February 29, 2016 and February 28, 2017, respectively. Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities that could be different from this estimate. In such case, the Company will record additional tax expense or tax benefit in the tax provision, or reclassify amounts on the accompanying consolidated balance sheets in the period in which such matter is effectively settled with the taxing authority. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. Related to the uncertain tax benefits noted above, the Company accrued an immaterial amount of interest during the year ending February 28, 2017 and in total, as of February 28, 2017, has recognized a liability for interest of $8 thousand. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s operations have historically been aligned into three business segments: (i) Radio, (ii) Publishing and (iii) Corporate & Emerging Technologies. Emerging Technologies includes our TagStation, NextRadio and Digonex businesses. Results of Emerging Technologies were reclassified from the Radio segment in the prior periods presented below and are not material. These business segments are consistent with the Company’s management of these businesses and its financial reporting structure. Corporate expenses are not allocated to reportable segments. Our radio operations in New York and Los Angeles, including the LMA fee we receive from a subsidiary of Disney, accounted for more than 50% of our radio revenues for the year ended February 28, 2017. The Company’s segments operate exclusively in the United States. During the year ended February 28, 2017, we sold our radio cluster in Terre Haute, Indiana and sold five of our six magazines. See Note 7 for more discussion of our dispositions. The accounting policies as described in the summary of significant accounting policies included in Note 1 to these consolidated financial statements, are applied consistently across segments.
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OTHER INCOME, NET |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET Components of other income (expense), net for the three years ended February 2015, 2016 and 2017 were as follows:
See Note 1 for further discussion of the other-than-temporary impairment loss on investments recorded in the years ended February 28, 2015 and 2017. Other income in the year ended February 29, 2016 mostly relates to various nonrecurring recoveries and noncash gains. |
RELATED PARTY TRANSACTIONS |
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Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Prior to 2002, the Company made certain life insurance premium payments for the benefit of Mr. Smulyan. The Company discontinued making such payments in 2001; however, pursuant to a Split Dollar Life Insurance Agreement and Limited Collateral Assignment dated November 2, 1997, the Company retains the right, upon Mr. Smulyan’s death, resignation or termination of employment, to recover all of the premium payments it has made, which total $1.1 million. As previously discussed in Note 8, the Company received an offer from EAC, an Indiana corporation owned by Jeffrey H. Smulyan, the Company’s Chairman of the Board, Chief Executive Officer and controlling shareholder, setting forth a non-binding proposal by which EAC would acquire all the outstanding shares of Class A Common Stock of the Company. During the year ended February 28, 2017, the Company incurred $0.9 of costs associated with the offer, which are included in corporate expenses, excluding depreciation and amortization expense in the accompanying consolidated statements of operations. The going private offer expired on October 14, 2016. No further costs are expected to be incurred in connection with the going private offer as it has expired. See Note 8 for further discussion of the going private offer. |
SUBSEQUENT EVENTS |
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SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Fourth Amendment to the 2014 Credit Facility On April 18, 2017, Emmis entered into a Fourth Amendment to our 2014 Credit Agreement. The Fourth Amendment (i) eliminated the maximum Total Leverage Ratio covenant through May 31, 2018 and replaced it with a minimum Consolidated EBITDA covenant of $20.0 million, after which it reverts to a Total Leverage Ratio of 4.00:1.00 for the quarters ended August 31, 2018 and thereafter, (ii) reduced the Interest Coverage Ratio from 2.00:1.00 to 1.60:1.00, (iii) required Emmis to enter into definitive agreements by January 18, 2018 to sell assets that generate at least $80 million of sale proceeds and close such transactions no later than July 18, 2018, (iv) increased the Applicable Margin throughout the remainder of the term of the Credit Agreement to 6.00% for ABR Loans (as defined in the 2014 Credit Agreement) and 7.00% for Eurodollar Loans (as defined in the 2014 Credit Agreement) and increased the unused commitment fee on the revolving credit facility to 75 basis points, and (v) accelerated the maturity of the Term Loans to April 18, 2019 and the Revolving Loans to August 31, 2018. In addition to tightening or eliminating baskets and other credit enhancements for lenders, the Fourth Amendment contains ratcheting fees and premiums if the existing credit facility is not refinanced by July 18, 2018. The Fourth Amendment also required Emmis to pay a fee of 1.0% of the Term Loan and Revolving Commitment of each Lender that consented to the Fourth Amendment. This fee totaled $1.5 million and was recorded as additional original issue discount and is being amortized as interest expense over the remaining life of the 2014 Credit Agreement, beginning with the three-month period ending May 31, 2017. Sale of KPWR-FM On May 8, 2017, Emmis entered into a definitive agreement to sell KPWR-FM in Los Angeles to KWHY-22 Broadcasting, LLC for $82.8 million. As discussed above, under the terms of the Fourth Amendment to the 2014 Credit Facility, Emmis was required to enter into definitive agreements to sell assets that generated at least $80 million of proceeds by January 18, 2018. Entering into this definitive agreement satisfies that requirement. Emmis found it more advantageous to sell its standalone radio station in Los Angeles than to sell other assets to meet this requirement. This transaction is subject to, among other things, expiration or early termination of the waiting period under the Hart-Scott-Rodino Act, FCC approval and other customary closing conditions and is expected to close in the back half of 2017. KPWR-FM had historically been included in our Radio segment. The following table summarizes certain operating results of KPWR-FM for all periods presented. Interest expense has not been allocated to KPWR-FM in the table below as the Company can not yet estimate the amount of required Term Loan repayments associated with the eventual sale of the radio station.
The carrying amounts of major classes of assets expected to be included in the sale of KPWR-FM as of February 29, 2016 and February 28, 2017 were as follows:
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The following discussion pertains to Emmis Communications Corporation (“ECC”) and its subsidiaries (collectively, “Emmis,” the “Company,” or “we”). All significant intercompany balances and transactions have been eliminated. |
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Organization | Organization We are a diversified media company, principally focused on radio broadcasting. Emmis owns 16 FM and 3 AM radio stations in New York, Los Angeles, St. Louis, Austin (Emmis has a 50.1% controlling interest in Emmis’ radio stations located there) and Indianapolis. One of the FM radio stations that Emmis currently owns in New York is operated pursuant to a Local Marketing Agreement ("LMA") whereby a third party provides the programming for the station and sells all advertising within that programming. In addition, Emmis has entered into an agreement to sell its FM radio station in Los Angeles and that transaction is expected to close in the back half of 2017. Emmis also developed and licenses TagStation®, a cloud-based software platform that allows a broadcaster to manage album art, meta data and enhanced advertising on its various broadcasts, developed NextRadio®, a smartphone application that marries over-the-air FM radio broadcasts with visual and interactive features on smartphones, and has introduced the Dial ReportTM to give radio advertising buyers and sellers big data analytics derived from a nationwide radio station network, smartphone usage, location-based data, demographic profiling and listening data. In addition to our radio properties, we also publish Indianapolis Monthly and operate Digonex, a dynamic pricing business. Substantially all of ECC’s business is conducted through its subsidiaries. Our credit agreement, dated June 10, 2014 (the “2014 Credit Agreement”), contains certain provisions that may restrict the ability of ECC’s subsidiaries to transfer funds to ECC in the form of cash dividends, loans or advances. |
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Revenue Recognition | Revenue Recognition Broadcasting revenue is recognized as advertisements are aired. Publication revenue is recognized in the month of delivery of the publication. Both broadcasting revenue and publication revenue recognition is subject to meeting certain conditions such as persuasive evidence that an arrangement exists and collection is reasonably assured. These criteria are generally met at the time the advertisement is aired for broadcasting revenue and upon delivery of the publication for publication revenue. Advertising revenues presented in the financial statements are reflected on a net basis, after the deduction of advertising agency fees, usually at a rate of 15% of gross revenues. |
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Allowance for Doubtful Accounts | Allowance for Doubtful Accounts An allowance for doubtful accounts is recorded based on management’s judgment of the collectability of receivables. When assessing the collectability of receivables, management considers, among other things, historical loss experience and existing economic conditions. |
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Local Programming and Marketing Agreement Fees | Local Programming and Marketing Agreement Fees The Company from time to time enters into LMAs in connection with acquisitions and dispositions of radio stations, pending regulatory approval of transfer of the FCC licenses. Under the terms of these agreements, the acquiring company makes specified periodic payments to the holder of the FCC license in exchange for the right to program and sell advertising for a specified portion of the station’s inventory of broadcast time. The acquiring company records revenues and expenses associated with the portion of the station’s inventory of broadcast time it manages. Nevertheless, as the holder of the FCC license, the owner-operator retains control and responsibility for the operation of the station, including responsibility over all programming broadcast on the station. |
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Share-based Compensation | Share-based Compensation The Company determines the fair value of its employee stock options at the date of grant using a Black-Scholes option-pricing model. The Black-Scholes option pricing model was developed for use in estimating the value of exchange-traded options that have no vesting restrictions and are fully transferable. The Company’s employee stock options have characteristics significantly different than these traded options. In addition, option pricing models require the input of highly subjective assumptions, including the expected stock price volatility and expected term of the options granted. The Company relies heavily upon historical data of its stock price when determining expected volatility, but each year the Company reassesses whether or not historical data is representative of expected results. See Note 4 for more discussion of share-based compensation. |
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Cash and Cash Equivalents | Cash and Cash Equivalents Emmis considers time deposits, money market fund shares and all highly liquid debt investment instruments with original maturities of three months or less to be cash equivalents. At times, such deposits may be in excess of FDIC insurance limits. |
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Restricted Cash | Restricted Cash Restricted cash relates to cash on deposit in trust accounts related to our 98.7FM LMA in New York City that services long-term debt, cash collected by our wholly-owned subsidiary, NextRadio LLC, from other radio broadcasters for payments to Sprint, and cash held in escrow as part of our sale of four magazines in February 2017. Usage of cash collected by NextRadio LLC is restricted for specific purposes by funding agreements. The table below summarizes restricted cash held by the Company as of February 28 (29), 2016 and 2017:
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Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is generally computed using the straight-line method over the estimated useful lives of the related assets, which are 39 years for buildings, the shorter of economic life or expected lease term for leasehold improvements, five to seven years for broadcasting equipment, five years for automobiles, and three to five years for office equipment. Maintenance, repairs and minor renewals are expensed as incurred; improvements are capitalized. On a continuing basis, the Company reviews the carrying value of property and equipment for impairment. If events or changes in circumstances were to indicate that an asset carrying value may not be recoverable, a write-down of the asset would be recorded through a charge to operations. See below for more discussion of impairment policies related to our property and equipment. |
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Intangible Assets and Goodwill | Intangible Assets and Goodwill Indefinite-lived Intangibles and Goodwill In connection with past acquisitions, a significant amount of the purchase price was allocated to radio broadcasting licenses, goodwill and other intangible assets. Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible net assets acquired. In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” goodwill and radio broadcasting licenses are not amortized, but are tested at least annually for impairment at the reporting unit level and unit of accounting level, respectively. We test for impairment annually, on December 1 of each year, or more frequently when events or changes in circumstances or other conditions suggest impairment may have occurred. Impairment exists when the asset carrying values exceed their respective fair values, and the excess is then recorded to operations as an impairment charge. See Note 9, Intangible Assets and Goodwill, for more discussion of our interim and annual impairment tests performed during the three years ended February 28, 2017. Definite-lived Intangibles The Company’s definite-lived intangible assets primarily consist of trademarks, customer lists and radio programming contracts which are amortized over the period of time the intangible assets are expected to contribute directly or indirectly to the Company’s future cash flows. |
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Advertising and Subscription Acquisition Costs | Advertising and Subscription Acquisition Costs Advertising and subscription acquisition costs are expensed when incurred. |
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Investments | Investments For those investments in common stock or in-substance common stock in which the Company has the ability to exercise significant influence over the operating and financial policies of the investee, the investment is accounted for under the equity method. For other investments held at February 28, 2017, the Company applies the accounting guidance for certain investments in debt and equity securities. Emmis’ equity method investment reports on a fiscal year ending December 31, which Emmis incorporates into its fiscal year ended February 28 (29). |
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Deferred Revenue and Barter Transactions | Deferred Revenue and Barter Transactions Deferred revenue includes deferred barter, other transactions in which payments are received prior to the performance of services (i.e. cash-in-advance advertising and prepaid LMA payments), and deferred magazine subscription revenue. Barter transactions are recorded at the estimated fair value of the product or service received. Revenue from barter transactions is recognized when commercials are broadcast or a publication is delivered. The appropriate expense or asset is recognized when merchandise or services are used or received. |
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Earnings Per Share | Earnings Per Share ASC Topic 260 requires dual presentation of basic and diluted income (loss) per share (“EPS”) on the face of the income statement for all entities with complex capital structures. Basic EPS is computed by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Potentially dilutive securities at February 2015, 2016 and 2017 consisted of stock options, restricted stock awards and preferred stock. |
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Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequence of events that have been recognized in the Company’s financial statements or income tax returns. Income taxes are recognized during the year in which the underlying transactions are reflected in the consolidated statements of operations. Deferred taxes are provided for temporary differences between amounts of assets and liabilities as recorded for financial reporting purposes and amounts recorded for income tax purposes. After determining the total amount of deferred tax assets, the Company determines whether it is more likely than not that some portion of the deferred tax assets will not be realized. If the Company determines that a deferred tax asset is not likely to be realized, a valuation allowance will be established against that asset to record it at its expected realizable value. |
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Long-Lived Tangible Assets | Long-Lived Tangible Assets The Company periodically considers whether indicators of impairment of long-lived tangible assets are present. If such indicators are present, the Company determines whether the sum of the estimated undiscounted cash flows attributable to the assets in question are less than their carrying value. If less, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values. Fair value is determined by discounted future cash flows, appraisals and other methods. If the assets determined to be impaired are to be held and used, the Company recognizes an impairment charge to the extent the asset’s carrying value is greater than the fair value. The fair value of the asset then becomes the asset’s new carrying value, which, if applicable, the Company depreciates or amortizes over the remaining estimated useful life of the asset. |
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Estimates | Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the financial statements and in disclosures of contingent assets and liabilities. Actual results could differ from those estimates. |
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National Representation Agreement | National Representation Agreement On October 1, 2007, Emmis terminated its existing national sales representation agreement with Interep National Radio Sales, Inc. (“Interep”) and entered into a new agreement with Katz Communications, Inc. (“Katz”) extending through March 2018. Emmis’ existing contract with Interep at the time extended through September 2011. Emmis, Interep and Katz entered into a tri-party termination and mutual release agreement under which Interep agreed to release Emmis from its future contractual obligations in exchange for a one-time payment of $15.3 million, which was paid by Katz on behalf of Emmis as an inducement for Emmis to enter into the new long-term contract with Katz. Emmis measured and recognized the charge associated with terminating the Interep contract as of the effective termination date, which was recorded as a noncash contract termination fee in the year ended February 2008. The liability established as a result of the termination represents an incentive received from Katz that is being recognized as a reduction of our national agency commission expense over the term of the agreement with Katz. At February 28, 2017, the entire balance of this liability is included in other current liabilities in the accompanying consolidated balance sheets. |
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Liquidity | Liquidity The Company continually projects its anticipated cash needs, which include its operating needs, capital needs, and principal and interest payments on its indebtedness. As of the filing of this Form 10-K, management believes the Company can meet its liquidity needs through the end of fiscal year 2018 with cash and cash equivalents on hand, projected cash flows from operations, and, to the extent necessary, through its borrowing capacity under the 2014 Credit Agreement, which was $20.0 million at February 28, 2017. Based on these projections, management also believes the Company will be in compliance with its debt covenants through the end of fiscal year 2018. |
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Recent Accounting Pronouncements | Adoption of New Accounting Standards Updates In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting (ASU 2016-09) to simplify the accounting for share-based payment transactions, including the income tax consequences, and standardize certain classifications on the statement of cash flows. As permitted by ASU 2016-09, the Company chose to early adopt the provisions of this update as of March 1, 2016. The adoption of this guidance did not have any effect on the Company's consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including the cumulative effect of the change in the provisional amount as if the accounting had been completed at the acquisition date. This guidance was effective for the Company as of March 1, 2016. The adoption of this guidance did not have any effect on the Company's consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-05, Intangibles - Goodwill and Other: Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance as to when a company using a cloud computing service that includes a software license should capitalize and depreciate the software license. This guidance was effective for the Company as of March 1, 2016. The adoption of this guidance did not have any effect on the Company's consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 was effective for the fiscal year ending February 28, 2017, and for annual periods and interim periods thereafter. The adoption of this guidance did not have any effect on the Company's consolidated financial statements. Recent Accounting Standards Updates Not Yet Adopted In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU was issued to simplify goodwill impairment by removing the second step of the goodwill impairment test. This standard is required to be adopted by the Company as of March 1, 2020, but as permitted by the FASB, the Company plans to early adopt this guidance as of March 1, 2017. The adoption of this guidance will affect future goodwill impairments which will also be influenced by a number of other factors used by the Company when assessing the valuation of goodwill. In January 2017, the FASB issued Accounting Standards Update 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU was issued to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance will be effective for the Company as of March 1, 2018. The Company does not expect adoption of this guidance will have a material impact on the Company's consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance will be effective for the Company as of March 1, 2018, and requires a retrospective transition method. The Company does not expect adoption of this guidance will have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842). This update requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance will be effective for the Company as of March 1, 2019. A modified retrospective transition method is required. The Company is currently evaluating the impact the adoption of this guidance will have on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles used to recognize revenue for all entities. The FASB deferred implementation of this guidance by one year with the issuance of Accounting Standards Update 2015-14. As such, this guidance will be effective for the Company as of March 1, 2018. The Company expects to use the modified retrospective method of adoption. The Company has completed its initial evaluation of potential changes from adopting the new standard on its financial reporting and disclosures, which included a detailed review of contractual terms for all of its significant revenue streams. The Company will continue to progress on its implementation plan during the remainder of fiscal 2018. Based on its initial evaluation, the Company does not expect adoption of this guidance will have a material impact on the Company's consolidated financial statements, but disclosures related to revenue recognition will likely be expanded. |
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Fair Value Measurements and Disclosure | As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Doubtful Accounts | The activity in the allowance for doubtful accounts for the three years ended February 28, 2017 was as follows:
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Local Programming and Marketing Agreement Fees Recorded as Net Revenues (Except for Discontinued Operations) in Accompanying Condensed Statements of Operations | LMA fees recorded as net revenues in the accompanying consolidated statements of operations were as follows for the years ended February 2015, 2016 and 2017:
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Carrying Value of Investments | Emmis has two investments, the carrying values of which are summarized in the following table and discussed below:
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Calculation of Basic and Diluted Net Income Per Share from Continuing Operations | The following table sets forth the calculation of basic and diluted net income (loss) per share from continuing operations:
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Shares Excluded from Calculation as Effect of Conversion into Shares of Common Stock would be Antidilutive | Shares excluded from the calculation as the effect of their conversion into shares of our common stock would be antidilutive were as follows:
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Noncontrolling Interests | Below is a summary of the noncontrolling interest activity for the years ended February 2016 and 2017:
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SHARE BASED PAYMENTS (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions used to Calculate Fair Value of Options on Date of Grant | The following assumptions were used to calculate the fair value of the Company’s options on the date of grant during the years ended February 2015, 2016 and 2017:
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Summary of Stock Options Outstanding and Activity | The following table presents a summary of the Company’s stock options outstanding at February 28, 2017, and stock option activity during the year ended February 28, 2017 (“Price” reflects the weighted average exercise price per share):
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Summary of Nonvested Options and Changes | A summary of the Company’s nonvested options at February 28, 2017, and changes during the year ended February 28, 2017, is presented below:
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Summary of Restricted Stock Grants Outstanding and Activity | The following table presents a summary of the Company’s restricted stock grants outstanding at February 28, 2017, and restricted stock activity during the year ended February 28, 2017 (“Price” reflects the weighted average share price at the date of grant):
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Stock-Based Compensation Expense and Related Tax Benefits Recognized | The following table summarizes stock-based compensation expense and related tax benefits recognized by the Company in the years ended February 2015, 2016 and 2017:
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LONG-TERM DEBT (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-term debt was comprised of the following at February 28 (29), 2016 and 2017:
(1) The face value of other nonrecourse debt was $6.2 million and $9.5 million |
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Leverage Ratio Requirements | We were in compliance with all financial and non-financial covenants as of February 28, 2017. Our Total Leverage Ratio and Minimum Interest Coverage Ratio (each as defined in the 2014 Credit Agreement) requirements and actual amounts as of February 28, 2017 were as follows:
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Summary of Long-Term Debt Principal Repayments | ased on amounts outstanding at February 28, 2017, mandatory principal payments of long-term debt for the next five years and thereafter are summarized below:
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
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Reconciliation of Beginning and Ending Balances for Fair Value Measurements using Significant Unobservable Inputs | The following table shows a reconciliation of the beginning and ending balances for fair value measurements using significant unobservable inputs:
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ACQUISITIONS AND DISPOSITIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Disposition, Pro Forma Results [Table Text Block] |
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Hour Magazines | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] |
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Terre Haute Cluster | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] |
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Texas Monthly [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] |
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OTHER SIGNIFICANT TRANSACTIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Income Statement Disclosures for Subsegment | The following table summarizes Emmis' operating results of 98.7FM for all periods presented. Emmis programmed 98.7FM until the LMA commenced on April 26, 2012. 98.7FM is a part of our Radio segment. Results of operations of 98.7FM for the years ended February 2015, 2016 and 2017 were as follows:
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Schedule Of Balance Sheet Disclosures for Subsegment | Assets and liabilities of 98.7FM as of February 28 (29), 2016 and 2017 were as follows:
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INTANGIBLE ASSETS AND GOODWILL (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets And Goodwill [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of intangible impairment by assessment period | We will perform additional interim impairment assessments whenever triggering events suggest such testing for the recoverability of these assets is warranted. The table below summarizes the results of our interim and annual impairment testing for the three years ending February 28, 2017.
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Assumptions used in valuation of indefinite-lived intangibles |
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Fcc license agreement rollforward |
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Goodwill rollforward |
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Summary of definite-lived intangible assets | The following table presents the weighted-average remaining useful life at February 28, 2017 and gross carrying amount and accumulated amortization for each major class of definite-lived intangible assets at February 28 (29), 2016 and 2017:
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Expected amortization of definite-lived intangibles | The following table presents the Company's estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangibles:
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OTHER COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Various Commitments for Material Contracts | The Company has various commitments under the following types of material contracts: (i) operating leases; (ii) employment agreements and (iii) other contracts with annual commitments (mostly contractual services for audience measurement information) at February 28, 2017 as follows:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (Benefit) for Income Tax by Geographical Location | United States and foreign income (loss) before income taxes for the years ended February 2015, 2016 and 2017 was as follows:
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Components of Income Tax Provision (Benefit) | The provision (benefit) for income taxes for the years ended February 2015, 2016, and 2017 consisted of the following:
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Reconciliation of Income Tax Provision (Benefit) | The provision (benefit) for income taxes for the years ended February 2015, 2016 and 2017 differs from that computed at the Federal statutory corporate tax rate as follows:
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Components of Deferred Tax Assets and Deferred Tax Liabilities | The components of deferred tax assets and deferred tax liabilities at February 29, 2016 and February 28, 2017 are as follows:
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Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of gross unrecognized tax benefits for the years ending February 29, 2016 and February 28, 2017:
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SEGMENT INFORMATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results of Operations of Business Segments |
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OTHER INCOME, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Expense, Net | Components of other income (expense), net for the three years ended February 2015, 2016 and 2017 were as follows:
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SUBSEQUENT EVENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
KPWR-FM (Los Angeles) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table summarizes certain operating results of KPWR-FM for all periods presented. Interest expense has not been allocated to KPWR-FM in the table below as the Company can not yet estimate the amount of required Term Loan repayments associated with the eventual sale of the radio station.
The carrying amounts of major classes of assets expected to be included in the sale of KPWR-FM as of February 29, 2016 and February 28, 2017 were as follows:
|
Summary of Significant Accounting Policies - Additional Information (Detail) |
1 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jul. 08, 2016 |
Feb. 11, 2014
USD ($)
|
Apr. 26, 2012
USD ($)
|
Oct. 01, 2007
USD ($)
|
Feb. 28, 2017
USD ($)
Station
|
Feb. 29, 2016
USD ($)
|
Feb. 28, 2015
USD ($)
|
|
Summary Of Significant Accounting Policies [Line Items] | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 250.00 | ||||||
Advertising agency fee rate based on gross revenue | 15.00% | ||||||
Number of stations to be purchased | 2 | ||||||
Monthly expense reimbursement under LMA | $ 1,300,000 | ||||||
Future reduced monthly fee amount | $ 740,000 | ||||||
Depreciation and amortization | $ 4,100,000 | $ 4,300,000 | $ 5,000,000 | ||||
Gain (loss) on sale of assets | (124,000) | (56,000) | 0 | ||||
Advertising expense | 5,700,000 | 4,100,000 | 3,200,000 | ||||
Income (loss) from equity method investments | (28,000) | (82,000) | 11,000 | ||||
Available for sale investments, carrying value | 800,000 | 1,137,000 | |||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 254,000 | 0 | 6,682,000 | ||||
Other equity method investments | 0 | 337,000 | |||||
Available for sale investments | 800,000 | 800,000 | |||||
Bater revenue | 7,800,000 | 8,500,000 | 8,500,000 | ||||
Barter expenses | 7,900,000 | 8,500,000 | 8,700,000 | ||||
One time payment made by Katz on behalf of Emmis to enter into a new long-term contract | $ 15,300,000 | ||||||
Maximum borrowing capacity under credit agreement | 20,000,000 | ||||||
LMA fees | 0 | 0 | $ 4,208,000 | ||||
Equity Method Investments [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 300,000 | ||||||
Available For Sale Investments | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Available for sale investments, carrying value | 300,000 | ||||||
Courseload Inc | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Available for sale investments, carrying value | 6,000,000 | ||||||
Additional investment | 400,000 | $ 300,000 | |||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 6,700,000 | ||||||
Carrying value of investment | $ 0 | ||||||
Minimum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of controlling interest | 50.00% | ||||||
Building | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment, estimated useful life | 39 years | ||||||
Broadcasting equipment | Minimum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment, estimated useful life | 5 years | ||||||
Broadcasting equipment | Maximum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment, estimated useful life | 7 years | ||||||
Automobiles | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment, estimated useful life | 5 years | ||||||
Office equipment and automobiles | Minimum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment, estimated useful life | 3 years | ||||||
Office equipment and automobiles | Maximum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment, estimated useful life | 5 years | ||||||
Local Programming And Marketing Agreement | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Annual license fees received | $ 8,400,000 | ||||||
Annual license fees increased in percent | 3.50% | ||||||
St. Louis, Austin, Indianapolis and Terre Haute | FM radio | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of radio stations in operation | Station | 16 | ||||||
St. Louis, Austin, Indianapolis and Terre Haute | AM radio | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of radio stations in operation | Station | 3 | ||||||
Emmis Austin Radio Partnership, L.P. | FM radio | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of controlling interest | 50.10% |
Activity in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Accounting Policies [Abstract] | |||
Balance At Beginning Of Year | $ 934 | $ 665 | $ 574 |
Provision | 377 | 626 | 627 |
Write-Offs | (408) | (357) | (536) |
Balance At End Of Year | $ 903 | $ 934 | $ 665 |
Local Programming and Marketing Agreement Fees Recorded as Net Revenues (Except for Discontinued Operations) in Accompanying Condensed Statements of Operations (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
98.7FM (New York) | |||
Principal Transaction Revenue [Line Items] | |||
LMA fees | $ 10,331 | $ 10,331 | $ 10,331 |
Summary of Investment (Detail) - USD ($) |
Feb. 28, 2017 |
Feb. 29, 2016 |
---|---|---|
Investment [Line Items] | ||
Available-for-sale investments | $ 800,000 | $ 800,000 |
Other equity method investments | 0 | 337,000 |
Total investments | $ 800,000 | $ 1,137,000 |
Calculation of Basic and Diluted Net Income Per Share from Continuing Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Amounts attributable to common shareholders for basic earnings per share: | |||
Net income (loss) available to common shareholders from continuing operations | $ 13,119 | $ 1,952 | $ (99,259) |
Diluted net income (loss): | |||
Net income (loss) available to common shareholders from continuing operations | $ 13,119 | $ 1,952 | $ (99,259) |
Basic shares: | |||
Basic weighted average common shares outstanding (in shares) | 12,040 | 11,034 | 10,634 |
Impact of equity awards (in shares) | 189 | 282 | 0 |
Diluted shares: | |||
Diluted weighted average common shares outstanding (in shares) | 12,229 | 11,316 | 10,634 |
Basic net income (loss) per common share: | |||
Basic net income (loss) per common share (in dollars per share) | $ 1.09 | $ 0.18 | $ (9.33) |
Diluted net income (loss) per common share: | |||
Diluted net income (loss) per common share (in dollars per share) | $ 1.07 | $ 0.17 | $ (9.33) |
Shares Excluded from Calculation as Effect of Conversion into Shares of Common Stock (Detail) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive common share equivalents | 1,341 | 1,886 | 1,648 |
Preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive common share equivalents | 0 | 607 | 567 |
Stock options and restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive common share equivalents | 1,341 | 1,279 | 1,081 |
Noncontrolling Interests (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Noncontrolling Interest [Line Items] | |||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 38,397 | $ 46,661 | |
NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 101 | (2,418) | $ 3,274 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (5,577) | (5,846) | (5,428) |
Acquisition of noncontrolling interest | 1,197 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 32,921 | 38,397 | 46,661 |
Austin Radio Partnership [Member] | |||
Noncontrolling Interest [Line Items] | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 47,556 | 47,883 | |
NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 4,851 | 5,519 | |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (5,577) | (5,846) | |
Stockholders' Equity Attributable to Noncontrolling Interest | 46,830 | 47,556 | 47,883 |
Digonex | |||
Noncontrolling Interest [Line Items] | |||
Stockholders' Equity Attributable to Noncontrolling Interest | (9,159) | (1,222) | |
NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (4,750) | (7,937) | |
Stockholders' Equity Attributable to Noncontrolling Interest | $ (13,909) | $ (9,159) | $ (1,222) |
Summary of Restricted Cash (Details) - USD ($) $ in Thousands |
Feb. 28, 2017 |
Feb. 29, 2016 |
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 2,323 | $ 1,464 |
Ninety Eight Point Seven Fm [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | 1,550 | 1,464 |
NextRadio LLC [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | 123 | 0 |
Cash in magazine escrow [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 650 | $ 0 |
Common Stock (Details) |
12 Months Ended | ||
---|---|---|---|
Jul. 08, 2016 |
Feb. 28, 2017
vote
|
Jul. 07, 2016
$ / shares
|
|
Class of Stock [Line Items] | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 250.00 | ||
Fair Value Per Share | $ / shares | $ 0.695 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Number of votes per share of common stock | 1 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Number of votes per share of common stock | 10 | ||
Class C Common Stock | |||
Class of Stock [Line Items] | |||
Number of votes per share of common stock | 0 |
Redeemable Preferred Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Apr. 04, 2016 |
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
Feb. 16, 2016 |
|
Class of Stock [Line Items] | |||||
Liquidation preference per share of preferred stock | $ 50.00 | ||||
Conversion price, per share | $ 20.495 | ||||
Number of shares of Class A common stock converted for each share of Preferred Stock | 2.80 | 2.44 | |||
LOSS ON MODIFICATION OF PREFERRED STOCK | $ 0 | $ 162 | $ 0 | ||
Aggregate liquidation preference | 0 | 46,450 | |||
Stock based compensation expense | $ 2,920 | $ 4,904 | $ 2,813 | ||
Preferred Stock outstanding | 0 | 1,337,641 | |||
Series A preferred stock | |||||
Class of Stock [Line Items] | |||||
Conversion of Preferred Stock to Class A Common Stock (In shares) | 866,319 | ||||
Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Conversion of Preferred Stock to Class A Common Stock (In shares) | 606,423 |
Share Based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted, term | 10 years | ||
Stock options vesting period | 3 years | ||
Annual percentage over three years | 33.33% | ||
Cash received from exercise of stock options | $ 0.1 | $ 0.1 | $ 0.4 |
Stock options weighted average grant date fair value | $ 1.20 | $ 2.98 | $ 6.53 |
Shares available for future grants | 0.9 | ||
Grant date fair value of shares vested | $ 1.8 | $ 3.4 | $ 4.1 |
Unrecognized compensation cost | $ 1.7 | ||
Compensation cost of weighted average period | 1 year 80 days | ||
Two Thousand Twelve Equity Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants | 0.6 | ||
Other Equity Compensation Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants | 0.3 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option Vesting Date | Mar. 01, 2017 | ||
Option Expiration Date | Mar. 01, 2017 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option Vesting Date | Jul. 01, 2019 | ||
Option Expiration Date | Feb. 01, 2027 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards requisite service period | 3 years |
Share Based Payments Assumptions used to Calculate Fair Value of Options on Date of Grant (Detail) |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Dividend Yield: | 0.00% | 0.00% | 0.00% |
Expected Life (Years): | 4 years 3 months 12 days | 4 years 3 months 12 days | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-Free Interest Rate: | 0.90% | 1.20% | 1.20% |
Expected Life (Years): | 4 years 3 months 12 days | ||
Expected Volatility: | 52.90% | 57.20% | 69.00% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-Free Interest Rate: | 1.80% | 1.40% | 1.50% |
Expected Life (Years): | 4 years 4 months 12 days | ||
Expected Volatility: | 60.00% | 64.60% | 73.90% |
Share Based Payments Summary of Stock Options Outstanding and Activity (Detail) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Feb. 28, 2017
USD ($)
$ / shares
shares
| ||||
Options | ||||
Outstanding, beginning of period (in shares) | shares | 1,948,384 | |||
Granted (in shares) | shares | 704,678 | |||
Exercised (in shares) | shares | 57,738 | [1] | ||
Forfeited (in shares) | shares | 12,499 | |||
Expired (in shares) | shares | 23,182 | |||
Outstanding, end of period (in shares) | shares | 2,559,643 | |||
Exercisable, end of period (in shares) | shares | 1,469,268 | |||
Price | ||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 6.36 | |||
Granted (in dollars per share) | $ / shares | 2.68 | |||
Exercised (in dollars per share) | $ / shares | 1.98 | [1] | ||
Forfeited (in dollars per share) | $ / shares | 7.12 | |||
Expired or exchanged (in dollars per share) | $ / shares | 36.62 | |||
Outstanding, end of period (in dollars per share) | $ / shares | 5.17 | |||
Exercisable, end of period (in dollars per share) | $ / shares | $ 5.63 | |||
Weighted Average Remaining Contractual Term, Outstanding | 7 years | |||
Weighted Average Remaining Contractual Term, Exercisable, end of period | 5 years 4 months 26 days | |||
Aggregate Intrinsic Value, Outstanding, end of period | $ | $ 346 | |||
Aggregate Intrinsic Value, Exercisable, end of period | $ | $ 254 | |||
|
Share Based Payments Summary of Nonvested Options and Changes (Detail) |
12 Months Ended |
---|---|
Feb. 28, 2017
$ / shares
shares
| |
Options | |
Nonvested, beginning of period (in shares) | shares | 830,803 |
Granted (in shares) | shares | 704,678 |
Vested (in shares) | shares | 432,607 |
Forfeited (in shares) | shares | 12,499 |
Nonvested, end of period (in shares) | shares | 1,090,375 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning of period (in dollars per share) | $ / shares | $ 3.71 |
Granted (in dollars per share) | $ / shares | 1.20 |
Vested (in dollars per share) | $ / shares | 3.28 |
Forfeited (in dollars per share) | $ / shares | 3.62 |
Nonvested, end of period (in dollars per share) | $ / shares | $ 2.26 |
Share Based Payments Summary of Restricted Stock Grants Outstanding and Activity (Detail) - Restricted Stock |
12 Months Ended |
---|---|
Feb. 28, 2017
$ / shares
shares
| |
Awards | |
Grants outstanding, beginning of year (in shares) | shares | 212,995 |
Granted (in shares) | shares | 389,084 |
Vested (restriction lapsed) (in shares) | shares | 405,373 |
Forfeited (in shares) | shares | 0 |
Grants outstanding, end of year (in shares) | shares | 196,706 |
Price | |
Grants outstanding, beginning of year (in dollars per share) | $ / shares | $ 7.12 |
Granted (in dollars per share) | $ / shares | 3.11 |
Vested (restriction lapsed) (in dollars per share) | $ / shares | 4.48 |
Forfeited (in dollars per share) | $ / shares | 0.00 |
Grants outstanding, end of year (in dollars per share) | $ / shares | $ 4.64 |
Share Based Payments Stock-Based Compensation Expense and Related Tax Benefits Recognized (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 2,920 | $ 4,904 | $ 2,813 |
Tax benefit | 0 | 0 | 0 |
Recognized stock-based compensation expense, net of tax | 2,920 | 4,904 | 2,813 |
Station operating expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | 1,012 | 1,760 | 720 |
Corporate expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 1,908 | $ 3,144 | $ 2,093 |
Long-Term Debt (Detail) - USD ($) |
Feb. 28, 2017 |
Feb. 29, 2016 |
Jun. 10, 2014 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Total Credit Agreement debt | $ 221,752,000 | ||
Current maturities | (23,600,000) | $ (17,573,000) | |
Unamortized original issue discount | (7,038,000) | (9,287,000) | |
Total long-term debt | 190,372,000 | 228,027,000 | |
Revolver | |||
Debt Instrument [Line Items] | |||
Total Credit Agreement debt | 0 | ||
Term Loan | |||
Debt Instrument [Line Items] | |||
Total Credit Agreement debt | 152,245,000 | ||
2014 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Total Credit Agreement debt | 152,245,000 | 184,762,000 | |
Total long-term debt | 152,200,000 | $ 185,000,000.0 | |
2014 Credit Agreement | Revolver | |||
Debt Instrument [Line Items] | |||
Total Credit Agreement debt | 0 | 3,000,000 | |
2014 Credit Agreement | Term Loan | |||
Debt Instrument [Line Items] | |||
Total Credit Agreement debt | 152,245,000 | 181,762,000 | |
Other nonrecourse debt [Member] | |||
Debt Instrument [Line Items] | |||
Nonrecourse debt | 8,807,000 | 4,714,000 | |
98.7 FM Nonrecourse Debt | |||
Debt Instrument [Line Items] | |||
Nonrecourse debt | $ 59,958,000 | $ 65,411,000 |
Long-Term Debt - Additional Information (Detail) |
1 Months Ended | 3 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 18, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Jan. 31, 2017
USD ($)
|
Nov. 01, 2016
USD ($)
|
Aug. 22, 2016
USD ($)
|
Apr. 01, 2016 |
Apr. 30, 2015
USD ($)
|
Feb. 13, 2015
USD ($)
|
Nov. 07, 2014
USD ($)
|
Jun. 10, 2014
USD ($)
|
Mar. 31, 2017
USD ($)
|
Aug. 31, 2017 |
May 31, 2017 |
Feb. 28, 2017
USD ($)
|
Nov. 30, 2016 |
Aug. 31, 2016 |
May 31, 2016 |
Aug. 31, 2015
USD ($)
|
Jan. 01, 2016 |
Apr. 29, 2017 |
Feb. 28, 2017
USD ($)
|
Apr. 29, 2016 |
Feb. 29, 2016
USD ($)
|
Feb. 28, 2015
USD ($)
|
Jun. 16, 2014
USD ($)
|
Dec. 28, 2012
USD ($)
|
May 30, 2012
USD ($)
|
|
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Maximum borrowing capacity under credit facility | $ 20,000,000 | $ 20,000,000 | |||||||||||||||||||||||||
Long-term debt | 190,372,000 | 190,372,000 | $ 228,027,000 | ||||||||||||||||||||||||
Repayments of Debt | 15,000,000 | ||||||||||||||||||||||||||
Asset Sale Proceeds Subject to Reinvestment | $ 10,000,000 | ||||||||||||||||||||||||||
Transaction costs, including severance | 1,378,000 | ||||||||||||||||||||||||||
Remaining Net Available Proceeds | 4,400,000 | ||||||||||||||||||||||||||
Original issue discount of issuance of debt | 7,038,000 | 7,038,000 | 9,287,000 | ||||||||||||||||||||||||
Debt, Face Amount | $ 82,200,000 | ||||||||||||||||||||||||||
Loss on debt extinguishment | 620,000 | $ 0 | $ 1,455,000 | ||||||||||||||||||||||||
Interest rate during period | 4.10% | ||||||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Debt Compliance Consolidated EBITDA permitted addback, Going Private not approved | $ 2,500,000 | ||||||||||||||||||||||||||
Debt Compliance Consolidated EBITDA permitted addback, Going Private approved | $ 8,000,000 | ||||||||||||||||||||||||||
Other nonrecourse debt [Member] | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Proceeds from Issuance of Debt | 3,400,000 | ||||||||||||||||||||||||||
Debt, Face Amount | $ 9,500,000.0 | ||||||||||||||||||||||||||
Revolver | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repayments of Debt | 8,500,000 | ||||||||||||||||||||||||||
2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Maximum borrowing capacity under credit facility | $ 20,000,000.0 | ||||||||||||||||||||||||||
Future uncommitted increase, principal amount | 20,000,000.0 | ||||||||||||||||||||||||||
Long-term debt | 185,000,000.0 | 152,200,000 | $ 152,200,000 | ||||||||||||||||||||||||
Proceeds from Issuance of Debt | 109,000,000 | ||||||||||||||||||||||||||
Payments into escrow to acquire businesses | 76,000,000 | ||||||||||||||||||||||||||
Debt periodic amortization (percent) | 1.25% | 0.50% | 1.00% | ||||||||||||||||||||||||
Commitment fee percentage | 50.00% | ||||||||||||||||||||||||||
Debt issuance transaction fees | $ 1,000,000 | 1,000,000 | $ 8,200,000 | $ 8,200,000 | |||||||||||||||||||||||
Debt Issuance Cost | $ 1,100,000 | $ 1,000,000 | 6,100,000 | ||||||||||||||||||||||||
Leverage ratio | 6.75 | 5.00 | 5.75 | 6.00 | 6.25 | 6.50 | 6.00 | ||||||||||||||||||||
Prepayment fee percentage | 1.00% | 2.00% | |||||||||||||||||||||||||
Prepayment fee percentage increase | 0.25% | ||||||||||||||||||||||||||
Period for applicable margin | 6 months | ||||||||||||||||||||||||||
Debt fee (percent) | 5000.00% | 0.50% | |||||||||||||||||||||||||
Debt fee | $ 1,100,000 | ||||||||||||||||||||||||||
Debt, Face Amount | 185,000,000.0 | ||||||||||||||||||||||||||
2014 Credit Agreement | Term Loan | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Maximum borrowing capacity under credit facility | 185,000,000.0 | ||||||||||||||||||||||||||
Proceeds from Issuance of Debt | 109,000,000 | ||||||||||||||||||||||||||
Debt, Face Amount | 185,000,000 | ||||||||||||||||||||||||||
2014 Credit Agreement | Revolver | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Maximum borrowing capacity under credit facility | 20,000,000.0 | ||||||||||||||||||||||||||
Amount outstanding under line of credit | 13,000,000 | ||||||||||||||||||||||||||
2014 Credit Agreement | Letter of Credit | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Maximum borrowing capacity under credit facility | 5,000,000.0 | ||||||||||||||||||||||||||
Term Loan | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repayments of Debt | $ 4,700,000 | $ 15,000,000 | |||||||||||||||||||||||||
2012 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Debt, Face Amount | $ 100,000,000 | ||||||||||||||||||||||||||
Loss on debt extinguishment | $ 1,500,000 | ||||||||||||||||||||||||||
2012 Credit Agreement | Revolver | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Maximum borrowing capacity under credit facility | 20,000,000 | ||||||||||||||||||||||||||
2012 Credit Agreement | Letter of Credit | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Maximum borrowing capacity under credit facility | 5,000,000 | ||||||||||||||||||||||||||
Digonex Nonrecourse Debt | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Debt, Face Amount | $ 6,200,000.0 | ||||||||||||||||||||||||||
Interest rate (as a percent) | 5.00% | ||||||||||||||||||||||||||
NextRadio LLC Nonrecourse Debt [Member] | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Debt, Face Amount | $ 3,400,000.0 | $ 3,400,000.0 | |||||||||||||||||||||||||
Interest rate (as a percent) | 4.00% | 4.00% | |||||||||||||||||||||||||
WBLS-FM and WLIB-AM | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Cash paid | 55,000,000 | ||||||||||||||||||||||||||
WBLS-FM and WLIB-AM | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Cash paid | $ 76,000,000.0 | $ 55,000,000.0 | |||||||||||||||||||||||||
Base Rate | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Variable rate, floor (as a percent) | 2.00% | ||||||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 5.00% | 3.75% | |||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Variable rate, floor (as a percent) | 1.00% | ||||||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 4.75% | ||||||||||||||||||||||||||
Eurodollar [Member] | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 6.00% | ||||||||||||||||||||||||||
Term Loan | 2012 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Long-term debt | $ 80,000,000 | ||||||||||||||||||||||||||
Secured Debt | Digonex Nonrecourse Debt | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Long-term debt | $ 1,500,000 | ||||||||||||||||||||||||||
Unsecured Debt | Digonex Nonrecourse Debt | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Long-term debt | $ 4,700,000 | ||||||||||||||||||||||||||
Severance | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Restructuring charges excluded from EBITDA | $ 5,000,000 | ||||||||||||||||||||||||||
Contract Termination | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Restructuring charges excluded from EBITDA | $ 2,500,000.0 | ||||||||||||||||||||||||||
Scenario, Forecast [Member] | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Leverage ratio | 4.00 | ||||||||||||||||||||||||||
Prepayment fee percentage | 1.00% | ||||||||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Leverage ratio | 4.00 | ||||||||||||||||||||||||||
Subsequent Event [Member] | Other nonrecourse debt [Member] | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Proceeds from Issuance of Debt | $ 600,000 | ||||||||||||||||||||||||||
Subsequent Event [Member] | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Commitment fee percentage | 75.00% | ||||||||||||||||||||||||||
Debt Issuance Cost | $ 1,500,000 | ||||||||||||||||||||||||||
Debt fee (percent) | 1.00% | ||||||||||||||||||||||||||
Subsequent Event [Member] | Term Loan | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repayments of Debt | $ 1,900,000 | ||||||||||||||||||||||||||
Subsequent Event [Member] | Base Rate | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 6.00% | ||||||||||||||||||||||||||
Subsequent Event [Member] | Eurodollar [Member] | 2014 Credit Agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 7.00% |
Senior Leverage Ratio and Total Leverage Ratio Requirements and Actual Amounts (Detail) |
Feb. 28, 2017 |
---|---|
Covenant Requirement | Maximum | |
Line of Credit Facility [Line Items] | |
Maximum Total Leverage Ratio | 5.75 |
Covenant Requirement | Minimum | |
Line of Credit Facility [Line Items] | |
Minimum Fixed Charge Coverage Ratio | 2.00 |
Actual | Maximum | |
Line of Credit Facility [Line Items] | |
Maximum Total Leverage Ratio | 5.20 |
Actual | Minimum | |
Line of Credit Facility [Line Items] | |
Minimum Fixed Charge Coverage Ratio | 2.35 |
Summary of Long-Term Debt Principal Repayments (Detail) $ in Thousands |
Feb. 28, 2017
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2017 | $ 24,342 |
2018 | 11,304 |
2019 | 142,574 |
2020 | 7,755 |
2021 | 8,394 |
Thereafter | 27,383 |
Total | 221,752 |
Revolver | |
Debt Instrument [Line Items] | |
2017 | 0 |
2018 | 0 |
2019 | 0 |
2020 | 0 |
2021 | 0 |
Thereafter | 0 |
Total | 0 |
Term Loan | |
Debt Instrument [Line Items] | |
2017 | 12,104 |
2018 | 4,717 |
2019 | 135,424 |
2020 | 0 |
2021 | 0 |
Thereafter | 0 |
Total | 152,245 |
98.7 FM nonrecourse debt | |
Debt Instrument [Line Items] | |
2017 | 6,039 |
2018 | 6,587 |
2019 | 7,150 |
2020 | 7,755 |
2021 | 8,394 |
Thereafter | 24,033 |
Total | 59,958 |
Digonex Debt | |
Debt Instrument [Line Items] | |
2017 | 6,199 |
2018 | 0 |
2019 | 0 |
2020 | 0 |
2021 | 0 |
Thereafter | 3,350 |
Total | $ 9,549 |
Summary of Required Term Loan Mandatory Repayment - Texas Monthly Sale (Details) $ in Thousands |
12 Months Ended |
---|---|
Feb. 28, 2017
USD ($)
| |
Debt Instrument [Line Items] | |
Gross Proceeds from Divestiture of Business | $ 25,000 |
Divestiture Working Capital Adjustments | (747) |
Maximum Potential Net Available Proceeds Prior to Reinvestments | 22,875 |
Reinvestment of Net Available Proceeds | (3,475) |
Repayments of Debt | (15,000) |
Transaction costs, including severance | (1,378) |
Remaining Net Available Proceeds | $ 4,400 |
Fair Value Measurements Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
Feb. 28, 2017 |
Feb. 29, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 800 | $ 800 |
Total assets measured at fair value on a recurring basis | 800 | 800 |
Level 3 Significant Unobservable Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 800 | 800 |
Total assets measured at fair value on a recurring basis | $ 800 | $ 800 |
Fair Value Measurements Reconciliation of Beginning and Ending Balances for Fair Value Measurements using Significant Unobservable Inputs (Detail) - Available For Sale Investments - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 800 | $ 500 |
Purchases | 0 | 300 |
Ending Balance | $ 800 | $ 800 |
Fair Value Measurements - Additional Information (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
Jun. 10, 2014 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt | $ 190,372,000 | $ 228,027,000 | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 254,000 | $ 0 | $ 6,682,000 | |
2014 Credit Agreement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities, Fair Value Disclosure, Nonrecurring | 140,000,000 | |||
Long-term debt | 152,200,000 | $ 185,000,000.0 | ||
Courseload Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 6,700,000 |
Acquisitions and Dispositions - Narrative (Details) - USD ($) shares in Millions |
7 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 13, 2015 |
Jun. 16, 2014 |
Jun. 10, 2014 |
Feb. 11, 2014 |
Dec. 31, 2014 |
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
Aug. 15, 2014 |
Jun. 06, 2014 |
May 30, 2012 |
|
Business Acquisition [Line Items] | |||||||||||
Gross Proceeds from Divestiture of Business | $ (25,000,000) | ||||||||||
Divestiture Working Capital Adjustments | (747,000) | ||||||||||
Goodwill | 4,603,000 | $ 14,697,000 | |||||||||
Impairment loss on intangible assets | 9,843,000 | 9,499,000 | $ 67,915,000 | ||||||||
Future reduced monthly fee amount | $ 740,000 | ||||||||||
Maximum borrowing capacity under credit agreement | 20,000,000 | ||||||||||
Debt, Face Amount | $ 82,200,000 | ||||||||||
Monthly expense reimbursement under LMA | 1,300,000 | ||||||||||
Net revenues | 214,568,000 | 231,433,000 | 237,938,000 | ||||||||
Station Operating Expenses Excluding Depreciation And Amortization | 180,085,000 | 183,394,000 | 181,009,000 | ||||||||
Business Combination, Acquisition Related Costs, Cumulative | 1,600,000 | ||||||||||
Gain (Loss) on Contract Termination | 0 | 0 | 2,500,000 | ||||||||
Gain on sale of radio and publishing assets, net of disposition costs | 23,557,000 | 0 | 0 | ||||||||
Contract-Based Intangible Assets | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 300,000 | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||||||||
Customer-Related Intangible Assets | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,200,000 | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||||||||
Patents | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Impairment loss on intangible assets | 900,000 | 3,400,000 | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||||||||
Customer Lists | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||||||||
Trademarks | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||||||
2014 Credit Agreement | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Maximum borrowing capacity under credit agreement | $ 20,000,000.0 | ||||||||||
Debt, Face Amount | 185,000,000.0 | ||||||||||
Proceeds from Issuance of Debt | 109,000,000 | ||||||||||
2014 Credit Agreement | Term Loan | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Maximum borrowing capacity under credit agreement | 185,000,000.0 | ||||||||||
Debt, Face Amount | 185,000,000 | ||||||||||
Proceeds from Issuance of Debt | 109,000,000 | ||||||||||
Debt Instrument, Long-term Debt Held in Escrow | 76,000,000 | ||||||||||
2014 Credit Agreement | Revolver | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Maximum borrowing capacity under credit agreement | 20,000,000.0 | ||||||||||
YMF | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Future reduced monthly fee amount | 740,000 | ||||||||||
Monthly expense reimbursement under LMA | $ 1,275,000 | ||||||||||
Station operating expense | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Acquisition Related Costs | 400,000 | ||||||||||
Corporate expenses | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Acquisition Related Costs | 300,000 | ||||||||||
WBLS-FM and WLIB-AM | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill, Acquired During Period | 58,400,000 | ||||||||||
Expected Payment to Acquire Business, Gross | 76,000,000 | ||||||||||
Purchase price | 131,000,000 | ||||||||||
Cash paid | $ 55,000,000 | ||||||||||
Business Combination, Consideration Transferred, Equity Interest Transferred, Percentage | 49.90% | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 76,000,000 | ||||||||||
Net revenues | 28,100,000 | ||||||||||
Station Operating Expenses Excluding Depreciation And Amortization | 20,300,000 | ||||||||||
Business Combination, Acquisition Related Costs | 700,000 | 900,000 | |||||||||
WBLS-FM and WLIB-AM | 2014 Credit Agreement | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash paid | $ 76,000,000.0 | $ 55,000,000.0 | |||||||||
Digonex | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 2,800,000 | ||||||||||
Purchase price | $ 3,000,000 | ||||||||||
Convertible Preferred Stock | 1.0 | ||||||||||
Convertible Debt | $ 6,500,000 | $ 2,000,000 | |||||||||
Equity Interest in Acquiree, Assuming Conversion of Convertible Instruments | 51.00% | ||||||||||
Business Combination, Additional Convertible Rights Acquired, Total Equity Interest in Acquiree, Percentage | 80.00% | ||||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 200,000 | ||||||||||
Business Combination, Pro Forma Information, Station Operating Expenses since Acquisition Date, Actual | $ 1,400,000 | ||||||||||
Digonex | Patents | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 5,200,000 | ||||||||||
Digonex | Customer Lists | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 700,000 | ||||||||||
Digonex | Trademarks | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 300,000 | ||||||||||
Hour Magazines | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gross Proceeds from Divestiture of Business | 6,500,000 | ||||||||||
Net Proceeds from Divestiture of Businesses | 2,900,000 | ||||||||||
Stated Purchase Price for Divestiture of Business | 6,500,000 | ||||||||||
Net revenues | 29,112,000 | 31,819,000 | 31,380,000 | ||||||||
Station Operating Expenses Excluding Depreciation And Amortization | 31,076,000 | 31,385,000 | 31,139,000 | ||||||||
Proceeds from asset sale held in escrow | 700,000 | ||||||||||
Business Divestiture Disposition Costs | 2,900,000 | ||||||||||
Gain on sale of radio and publishing assets, net of disposition costs | 2,677,000 | 0 | 0 | ||||||||
Hour Magazines | Severance | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Divestiture Disposition Costs | 1,600,000 | ||||||||||
Hour Magazines | Transaction advisory fees [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Divestiture Disposition Costs | 1,000,000 | ||||||||||
Terre Haute Cluster | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gross Proceeds from Divestiture of Business | 5,200,000 | ||||||||||
Net Proceeds from Divestiture of Businesses | 4,800,000 | ||||||||||
Impairment loss on intangible assets | 79,000 | 39,000 | 58,000 | ||||||||
Net revenues | 2,298,000 | 2,418,000 | 2,684,000 | ||||||||
Station Operating Expenses Excluding Depreciation And Amortization | 2,258,000 | 2,395,000 | 2,607,000 | ||||||||
Gain on sale of radio and publishing assets, net of disposition costs | 3,478,000 | 0 | 0 | ||||||||
Texas Monthly [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gross Proceeds from Divestiture of Business | 25,000,000 | ||||||||||
Net Proceeds from Divestiture of Businesses | 23,400,000 | ||||||||||
Stated Purchase Price for Divestiture of Business | 25,000,000 | ||||||||||
Divestiture Working Capital Adjustments | 700,000 | ||||||||||
Net revenues | 14,685,000 | 23,561,000 | 24,186,000 | ||||||||
Station Operating Expenses Excluding Depreciation And Amortization | 14,465,000 | 21,527,000 | 22,446,000 | ||||||||
Business Divestiture Disposition Costs | 900,000 | ||||||||||
Gain on sale of radio and publishing assets, net of disposition costs | 17,402,000 | 0 | $ 0 | ||||||||
Goodwill | Digonex | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Impairment loss on intangible assets | $ 2,100,000 | $ 700,000 |
Acquisitions and Dispositions - Results of Sold Businesses (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net revenues | $ 214,568 | $ 231,433 | $ 237,938 |
Station Operating Expenses Excluding Depreciation And Amortization | 180,085 | 183,394 | 181,009 |
Depreciation and amortization | 4,806 | 5,797 | 5,926 |
Impairment loss on intangible assets | 9,843 | 9,499 | 67,915 |
Gain on sale of radio and publishing assets, net of disposition costs | (23,557) | 0 | 0 |
OPERATING (LOSS) INCOME | 31,908 | 19,664 | (34,063) |
Interest expense | 18,018 | 18,956 | 17,101 |
Income (loss) before income taxes | 13,110 | 1,765 | (59,037) |
Other (expense) income, net | (160) | 1,057 | (6,418) |
Texas Monthly [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net revenues | 14,685 | 23,561 | 24,186 |
Station Operating Expenses Excluding Depreciation And Amortization | 14,465 | 21,527 | 22,446 |
Depreciation and amortization | 84 | 118 | 116 |
Gain on sale of radio and publishing assets, net of disposition costs | (17,402) | 0 | 0 |
OPERATING (LOSS) INCOME | 17,538 | 1,916 | 1,624 |
Interest expense | 1,358 | 1,334 | 1,047 |
Income (loss) before income taxes | 16,217 | 952 | 592 |
Other (expense) income, net | (37) | (370) | (15) |
Terre Haute Cluster | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net revenues | 2,298 | 2,418 | 2,684 |
Station Operating Expenses Excluding Depreciation And Amortization | 2,258 | 2,395 | 2,607 |
Depreciation and amortization | 117 | 163 | 147 |
Impairment loss on intangible assets | 79 | 39 | 58 |
Gain on sale of radio and publishing assets, net of disposition costs | (3,478) | 0 | 0 |
OPERATING (LOSS) INCOME | 3,322 | (179) | (128) |
Interest expense | 330 | 324 | 254 |
Income (loss) before income taxes | 2,992 | (503) | (382) |
Hour Magazines | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net revenues | 29,112 | 31,819 | 31,380 |
Station Operating Expenses Excluding Depreciation And Amortization | 31,076 | 31,385 | 31,139 |
Depreciation and amortization | 122 | 125 | 106 |
Gain on sale of radio and publishing assets, net of disposition costs | (2,677) | 0 | 0 |
OPERATING (LOSS) INCOME | 591 | 309 | 135 |
Interest expense | 176 | 173 | 136 |
Income (loss) before income taxes | $ 415 | $ 136 | $ (1) |
Acquisitions and Dispositions - Schedule of Assets Acquired and Liabilities Assumed (Details) - WBLS-FM and WLIB-AM - USD ($) $ in Millions |
Feb. 13, 2015 |
Jun. 10, 2014 |
---|---|---|
Business Acquisition [Line Items] | ||
Goodwill, Acquired During Period | $ 58.4 | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 76.0 | |
Cash paid | $ 55.0 |
Acquisitions and Dispositions - Schedule of Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
|
Business Acquisition [Line Items] | ||
Business Disposition, Pro Forma Net Revenues | $ 168,473 | $ 173,635 |
Business Disposition, Pro Forma Operating Expenses | 132,286 | 128,087 |
Business Disposition, Pro Forma Consolidated Net Income | (6,404) | (889) |
Business Disposition, Pro Forma Net Income Available to the Company | $ (6,505) | $ 1,529 |
Basic Earnings Per Share, Pro Forma | $ (0.54) | $ 0.12 |
Diluted Earnings Per Share Pro Forma | $ (0.54) | $ 0.12 |
Other Significant Transactions - Additional Information (Details) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 40 Months Ended | ||||
---|---|---|---|---|---|---|---|---|---|
Aug. 05, 2016
$ / shares
|
Aug. 09, 2013
USD ($)
wireless_device
|
Mar. 31, 2017
USD ($)
|
Mar. 15, 2017
USD ($)
|
Nov. 30, 2016
USD ($)
|
Feb. 28, 2017
USD ($)
|
Feb. 29, 2016
USD ($)
|
Feb. 28, 2015
USD ($)
|
Dec. 07, 2016
USD ($)
|
|
Long-term Purchase Commitment [Line Items] | |||||||||
Proposed Merger Per Share Amount | $ / shares | $ 4.10 | ||||||||
Potential Going Private Transaction Costs | $ 0.9 | ||||||||
Call option, maximum ownership interest allowed to be exercised by radio operator | 30.00% | ||||||||
Payments on Pre-load Agreement | $ 33.2 | ||||||||
Subsequent Event [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Amended Pre-load commitment | $ 6.0 | ||||||||
Pre-load Commitment Forgiven | $ 5.8 | ||||||||
NextRadio | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Period of agreement | 3 years | ||||||||
Agreement amount | $ 15.0 | ||||||||
Variable interest entity, consolidated, carrying amount of assets | $ 0.1 | ||||||||
Variable interest entity, liabilities | 3.5 | ||||||||
NextRadio | Minimum | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Minimum number of devices with pre-loaded smartphone application | wireless_device | 30,000,000 | ||||||||
Emmis | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Expense recognized in period | $ 0.4 | $ 0.5 | |||||||
Non-Recourse Debt [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Nonrecourse Debt, Maximum Borrowing | $ 4.0 | ||||||||
Other nonrecourse debt [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Proceeds from Issuance of Debt | $ 3.4 | ||||||||
Other nonrecourse debt [Member] | Subsequent Event [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Proceeds from Issuance of Debt | $ 0.6 |
Other Significant Transactions - Income Statement Disclosures from LMA (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Apr. 26, 2012 |
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
May 30, 2012 |
|
Segment Reporting Information [Line Items] | |||||
Debt, Face Amount | $ 82,200 | ||||
Net revenues | $ 214,568 | $ 231,433 | $ 237,938 | ||
Station Operating Expenses Excluding Depreciation And Amortization | 180,085 | 183,394 | 181,009 | ||
Impairment loss on intangible assets | 9,843 | 9,499 | 67,915 | ||
Depreciation and amortization | 4,806 | 5,797 | 5,926 | ||
Interest expense | 18,018 | 18,956 | 17,101 | ||
Radio | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 165,148 | 169,228 | 176,250 | ||
Station Operating Expenses Excluding Depreciation And Amortization | 115,366 | 116,862 | 117,167 | ||
Impairment loss on intangible assets | 6,855 | 5,440 | 67,915 | ||
Depreciation and amortization | 3,462 | 3,345 | 3,143 | ||
Radio | 98.7FM (New York) | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 10,331 | 10,331 | 10,331 | ||
Station Operating Expenses Excluding Depreciation And Amortization | 1,275 | 1,000 | 1,002 | ||
Impairment loss on intangible assets | 2,907 | 1,766 | 9,462 | ||
Depreciation and amortization | 21 | 21 | 0 | ||
Interest expense | $ 2,827 | $ 3,042 | $ 3,238 | ||
Local Programming And Marketing Agreement | |||||
Segment Reporting Information [Line Items] | |||||
Annual license fees received | $ 8,400 | ||||
Annual license fees increased in percent | 3.50% |
Other Significant Transactions - Balance Sheet Disclosures of LMA (Details) - USD ($) $ in Thousands |
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
---|---|---|---|
CURRENT ASSETS: | |||
Restricted cash | $ 2,323 | $ 1,464 | |
Prepaid expenses | 4,798 | 7,413 | |
Total current assets | 46,457 | 51,691 | |
Property, Plant and Equipment, Net | 30,845 | 33,843 | |
Noncurrent Assets: | |||
Indefinite lived intangibles | 197,666 | 205,129 | $ 210,057 |
Deposits and other | 7,444 | 6,810 | |
Total other assets | 8,244 | 7,947 | |
Total assets | 289,338 | 316,606 | |
Current Liabilities: | |||
Accounts payable and accrued expenses | 13,398 | 8,127 | |
Current maturities of long-term debt | 23,600 | 17,573 | |
Deferred revenue | 4,560 | 11,435 | |
Other current liabilities | 6,807 | 5,775 | |
Total current liabilities | 54,603 | 51,285 | |
Noncurrent liabilities: | |||
Long-term debt, net of current portion | 190,372 | 228,027 | |
Other noncurrent liabilities | 4,842 | 7,728 | |
Total liabilities | 293,354 | 330,755 | |
Radio | |||
Noncurrent Assets: | |||
Total assets | 260,228 | 271,336 | |
Radio | 98.7FM (New York) | |||
CURRENT ASSETS: | |||
Restricted cash | 1,550 | 1,464 | |
Prepaid expenses | 445 | 545 | |
Total current assets | 2,002 | 2,009 | |
Property, Plant and Equipment, Net | 229 | 253 | |
Noncurrent Assets: | |||
Indefinite lived intangibles | 46,390 | 49,297 | |
Deposits and other | 6,205 | 5,460 | |
Total other assets | 52,824 | 55,010 | |
Total assets | 54,826 | 57,019 | |
Current Liabilities: | |||
Accounts payable and accrued expenses | 54 | 14 | |
Current maturities of long-term debt | 6,039 | 5,453 | |
Deferred revenue | 807 | 779 | |
Other current liabilities | 205 | 223 | |
Total current liabilities | 7,105 | 6,469 | |
Noncurrent liabilities: | |||
Long-term debt, net of current portion | 51,954 | 57,728 | |
Other noncurrent liabilities | 0 | 0 | |
Total noncurrent liabilities | 51,954 | 57,728 | |
Total liabilities | $ 59,059 | $ 64,197 |
Intangible Assets and Goodwill - Additional Interim Impairment Assessments (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses on intangible assets | $ 9,843 | $ 9,499 | $ 67,915 |
Scenario Four [Member] | Fcc Licenses | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses on intangible assets | 6,855 | 5,440 | 9,520 |
Scenario Four [Member] | Goodwill | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses on intangible assets | 695 | $ 58,395 | |
Scenario Four [Member] | Finite-Lived Intangible Assets [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses on intangible assets | $ 3,364 | ||
Scenario Three [Member] | Goodwill | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses on intangible assets | 2,058 | ||
Scenario Three [Member] | Finite-Lived Intangible Assets [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses on intangible assets | $ 930 |
Intangible Assets and Goodwill - Methodology used to Value Licenses (Detail) |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Minimum | |||
Goodwill And Other Intangibles [Line Items] | |||
Discount Rate | 12.20% | 12.00% | 12.10% |
Long-term Revenue Growth Rate | 1.00% | 1.30% | 1.50% |
Mature Market Share | 3.10% | 3.20% | 3.20% |
Operating Profit Margin | 25.10% | 25.00% | 25.10% |
Maximum | |||
Goodwill And Other Intangibles [Line Items] | |||
Discount Rate | 12.50% | 12.40% | 12.50% |
Long-term Revenue Growth Rate | 2.00% | 2.50% | 3.00% |
Mature Market Share | 30.40% | 29.30% | 29.20% |
Operating Profit Margin | 39.10% | 39.10% | 39.20% |
Intangible Assets and Goodwill - Change in License Carrying Value (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
|
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Written off Related to Sale of Business Unit | $ (642) | |
Carrying amount of FCC license, beginning balance | 205,129 | $ 210,057 |
Purchases | 34 | 512 |
Impairment | (6,855) | |
Carrying amount of FCC license, ending balance | 197,666 | 205,129 |
Continuing Operations [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment | (5,440) | |
New York Cluster | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying amount of FCC license, beginning balance | 71,616 | 71,616 |
Carrying amount of FCC license, ending balance | 71,616 | 71,616 |
98.7FM (New York) | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying amount of FCC license, beginning balance | 49,297 | 51,063 |
Impairment | (2,907) | |
Carrying amount of FCC license, ending balance | 46,390 | 49,297 |
98.7FM (New York) | Continuing Operations [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment | (1,766) | |
Austin Cluster | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying amount of FCC license, beginning balance | 36,912 | 39,255 |
Impairment | (2,192) | (2,343) |
Carrying amount of FCC license, ending balance | 34,720 | 36,912 |
St Louis Cluster | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying amount of FCC license, beginning balance | 26,399 | 27,692 |
Purchases | 34 | |
Impairment | (1,677) | (1,293) |
Carrying amount of FCC license, ending balance | 24,756 | 26,399 |
Indianapolis Cluster | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying amount of FCC license, beginning balance | 18,166 | 17,654 |
Purchases | 512 | |
Carrying amount of FCC license, ending balance | 18,166 | 18,166 |
KPWR-FM (Los Angeles) | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying amount of FCC license, beginning balance | 2,018 | 2,018 |
Carrying amount of FCC license, ending balance | 2,018 | 2,018 |
Terre Haute Cluster | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Written off Related to Sale of Business Unit | (642) | |
Carrying amount of FCC license, beginning balance | 721 | 759 |
Impairment | $ (79) | (38) |
Carrying amount of FCC license, ending balance | $ 721 |
Intangible Assets and Goodwill - Change in Goodwill Carrying Value (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Goodwill [Line Items] | |||
Goodwill Including Goodwill Of Discontinued Operations | $ 4,603 | $ 14,697 | $ 15,392 |
Goodwill, Sale of Entity | (8,036) | ||
Goodwill, Impairment | (2,058) | (695) | |
Indianapolis Cluster | Radio [Member] | |||
Goodwill [Line Items] | |||
Goodwill Including Goodwill Of Discontinued Operations | 265 | 265 | 265 |
Goodwill, Sale of Entity | 0 | ||
Austin Cluster | Radio [Member] | |||
Goodwill [Line Items] | |||
Goodwill Including Goodwill Of Discontinued Operations | 4,338 | 4,338 | 4,338 |
Goodwill, Sale of Entity | 0 | ||
Texas Monthly | Publishing | |||
Goodwill [Line Items] | |||
Goodwill Including Goodwill Of Discontinued Operations | 8,036 | 8,036 | |
Goodwill, Sale of Entity | (8,036) | ||
Digonex | Corporate and Emerging Technologies | |||
Goodwill [Line Items] | |||
Goodwill Including Goodwill Of Discontinued Operations | 2,058 | $ 2,753 | |
Goodwill, Sale of Entity | 0 | ||
Goodwill, Impairment | $ (2,058) | $ 695 |
Intangible Assets and Goodwill - Weighted-Average Useful Life, Gross Carrying Amount and Accumulated Amortization for Definite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | $ 3,165 | $ 6,224 |
Accumulated Amortization | 1,642 | 2,925 |
Net Carrying Amount | 1,523 | 3,299 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | 696 | 1,240 |
Accumulated Amortization | 545 | 727 |
Net Carrying Amount | $ 151 | 513 |
Weighted Average Remaining Useful Life (in years) | 8 years 6 months | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | 1,815 | |
Accumulated Amortization | 1,141 | |
Net Carrying Amount | 674 | |
Contract-Based Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | $ 2,154 | 2,154 |
Accumulated Amortization | 808 | 514 |
Net Carrying Amount | $ 1,346 | 1,640 |
Weighted Average Remaining Useful Life (in years) | 4 years 219 days | |
Customer-Related Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | $ 315 | 1,015 |
Accumulated Amortization | 289 | 543 |
Net Carrying Amount | $ 26 | $ 472 |
Weighted Average Remaining Useful Life (in years) | 3 months |
Intangible assets and goodwill - Estimated future amortization expense (Detail) $ in Thousands |
Feb. 28, 2017
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
2017 | $ 338 |
2018 | 311 |
2019 | 311 |
2020 | 311 |
2021 | $ 189 |
Intangible Assets and Goodwill - Additional Information (Detail) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
May 31, 2015
USD ($)
|
Feb. 28, 2017
USD ($)
multiple
|
Feb. 29, 2016
USD ($)
|
Feb. 28, 2015
USD ($)
|
Jun. 16, 2014
USD ($)
|
|
Intangible Assets And Goodwill [Line Items] | |||||
Purchases | $ 34 | $ 512 | |||
Amortization of Intangible Assets | $ 1,500 | 700 | |||
Indefinite lived intangibles | $ 197,666 | 205,129 | $ 210,057 | ||
FCC license term | 8 years | ||||
Goodwill impairment testing, period of average income used in test | 2 years | ||||
Impairment losses on intangible assets | $ 9,843 | 9,499 | 67,915 | ||
Goodwill, Impairment | 2,058 | 695 | |||
Goodwill | 4,603 | 14,697 | |||
Maximum | |||||
Intangible Assets And Goodwill [Line Items] | |||||
Amortization of Intangible Assets | 900 | ||||
Patents | |||||
Intangible Assets And Goodwill [Line Items] | |||||
Impairment losses on intangible assets | 900 | 3,400 | |||
Goodwill | Digonex | |||||
Intangible Assets And Goodwill [Line Items] | |||||
Impairment losses on intangible assets | 2,100 | 700 | |||
Goodwill | New York Cluster | |||||
Intangible Assets And Goodwill [Line Items] | |||||
Impairment losses on intangible assets | 58,400 | ||||
Radio | |||||
Intangible Assets And Goodwill [Line Items] | |||||
Impairment losses on intangible assets | $ 6,855 | 5,440 | 67,915 | ||
Radio | Minimum | |||||
Intangible Assets And Goodwill [Line Items] | |||||
Goodwill impairment testing, market multiple used in test calculation | multiple | 8.0 | ||||
Publishing | |||||
Intangible Assets And Goodwill [Line Items] | |||||
Impairment losses on intangible assets | 0 | 0 | |||
Digonex | |||||
Intangible Assets And Goodwill [Line Items] | |||||
Goodwill | $ 2,800 | ||||
Indianapolis Cluster | |||||
Intangible Assets And Goodwill [Line Items] | |||||
Purchases | 512 | ||||
Indefinite lived intangibles | $ 18,166 | $ 18,166 | $ 17,654 |
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 704,678 | ||
Number of shares available for grants | 900,000 | ||
Multi-employer plan contribution expense | $ 0.3 | $ 0.3 | $ 0.3 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of controlling interest | 50.00% | ||
Two Thousand Twelve Equity Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grants | 600,000 | ||
Two Thousand Sixteen Equity Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares that may be granted | 1,500,000 | ||
Granted (in shares) | 600,000 | ||
Two Thousand Sixteen Equity Compensation Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration of Stock option under the plan | 10 years | ||
Two Thousand Seventeen Equity Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares that may be granted | 2,000,000 | ||
Two Thousand Seventeen Equity Compensation Plan [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration of Stock option under the plan | 10 years | ||
401 (k) Retirement Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum age for retirement saving plan | 18 years | ||
Minimum days of service required to participate in retirement savings plan | 30 days | ||
Maximum percentage of eligible compensation by employee | 50.00% | ||
Maximum employer match on employee's contribution | 33.00% | ||
Employer matching contribution on employee's salary percentage | 6.00% | ||
Employer discretionary contribution | $ 0.9 | $ 1.1 |
Other Commitments and Contingencies - Various Commitments for Material Contracts (Detail) $ in Thousands |
Feb. 28, 2017
USD ($)
|
---|---|
Schedule Of Commitments And Contingencies [Line Items] | |
2015 | $ 33,939 |
2016 | 25,919 |
2017 | 12,166 |
2018 | 7,101 |
2019 | 6,845 |
Thereafter | 23,719 |
Total | 109,689 |
Operating Lease | |
Schedule Of Commitments And Contingencies [Line Items] | |
2015 | 7,006 |
2016 | 7,006 |
2017 | 7,082 |
2018 | 6,960 |
2019 | 6,741 |
Thereafter | 23,649 |
Total | 58,444 |
Employment Agreement | |
Schedule Of Commitments And Contingencies [Line Items] | |
2015 | 15,498 |
2016 | 8,019 |
2017 | 1,453 |
2018 | 37 |
2019 | 0 |
Thereafter | 0 |
Total | 25,007 |
Other Contracts | |
Schedule Of Commitments And Contingencies [Line Items] | |
2015 | 11,435 |
2016 | 10,894 |
2017 | 3,631 |
2018 | 104 |
2019 | 104 |
Thereafter | 70 |
Total | $ 26,238 |
Other Commitments and Contingencies - Future Minimum Sublease Rentals (Detail) $ in Thousands |
Feb. 28, 2017
USD ($)
|
---|---|
Other Commitments [Line Items] | |
Operating Leases, Future Minimum Payments Receivable, Current | $ 216 |
Other Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
Feb. 16, 2016 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of shares of Class A common stock converted for each share of Preferred Stock | 2.80 | 2.44 | ||
Rent expensed for continuing operations | $ 8,300 | $ 8,900 | $ 9,100 | |
Sublease income | 400 | 300 | 300 | |
LOSS ON MODIFICATION OF PREFERRED STOCK | 0 | $ 162 | $ 0 | |
Operating Leases, Future Minimum Payments Receivable, Current | $ 216 |
Provision (Benefit) for Income Tax by Geographical Location (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
Income (loss) before income taxes | $ 13,110 | $ 1,765 | $ (59,037) |
United States | |||
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
Income (loss) before income taxes | 13,110 | 1,765 | (58,692) |
Foreign | |||
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
Income (loss) before income taxes | $ 0 | $ 0 | $ (345) |
Components of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Current: | |||
State | $ 68 | $ (31) | $ 229 |
Current Income Tax Expense (Benefit), Total | 68 | (31) | 229 |
Deferred: | |||
Federal | (152) | 1,793 | 27,431 |
State | (26) | 307 | 9,288 |
Deferred Income Taxes and Tax Credits, Total | (178) | 2,100 | 36,719 |
(Benefit) provision for income taxes | $ (110) | $ 2,069 | $ 36,948 |
Reconciliation of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Computed income tax (benefit) provision at 35% | $ 4,588 | $ 618 | $ (20,663) |
State income tax | 42 | 276 | 9,517 |
Foreign taxes | 0 | 0 | 120 |
Tax benefit resulting from swap expiration and related OCI reversal | 0 | 0 | 5 |
Nondeductible stock compensation and Section 162 disallowance | 444 | 296 | 122 |
Entertainment disallowance | 366 | 366 | 421 |
Disposal of goodwill with no tax basis | 3,533 | 0 | 0 |
Change in valuation allowance | (7,387) | 2,376 | 50,250 |
Tax attributed to noncontrolling interest | (1,698) | (1,932) | (1,994) |
Taxable dividend from foreign subsidiary | (171) | (43) | (173) |
Other | 173 | 112 | (657) |
(Benefit) provision for income taxes | $ (110) | $ 2,069 | $ 36,948 |
Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands |
Feb. 28, 2017 |
Feb. 29, 2016 |
---|---|---|
Deferred tax assets: | ||
Net operating loss carryforwards | $ 35,365 | $ 34,341 |
Intangible assets | 22,130 | 28,737 |
Compensation relating to stock options | 1,942 | 1,768 |
Deferred revenue | 420 | 840 |
Accrued rent | 1,892 | 2,275 |
Tax credits | 3,438 | 3,265 |
Investments in subsidiairies | 396 | 214 |
Capital loss carryforward | 0 | 2,740 |
Other | 993 | 1,628 |
Valuation allowance | (60,379) | (66,674) |
Total deferred tax assets | 6,197 | 9,134 |
Deferred tax liabilities | ||
Indefinite-lived intangible assets | (43,505) | (43,673) |
Property and equipment | (814) | (1,055) |
Cancellation of debt income | (5,386) | (8,079) |
Other | (29) | (42) |
Total deferred tax liabilities | (49,734) | (52,849) |
Net deferred tax liabilities | $ (43,537) | $ (43,715) |
Income Tax - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Deferred Tax Assets And Liabilities [Line Items] | |||
Impairment losses on intangible assets | $ 9,843 | $ 9,499 | $ 67,915 |
Decrease in valuation allowance | 6,300 | ||
Valuation allowance | (60,379) | (66,674) | |
Tax credits related to alternative minimum tax carryforwards | $ 3,400 | ||
Amount recognized is measured as the largest benefit | 50.00% | ||
Uncertain tax positions | $ 100 | ||
Unrecognized tax benefits that would reduce, if recognized, provision for income taxes | 100 | $ 100 | |
Interest accrued related to unrecognized tax benefits | 8 | ||
Federal | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Decrease in valuation allowance | 5,100 | ||
Operating Loss Carryforwards | 79,000 | ||
State and Local Jurisdiction | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Decrease in valuation allowance | 0 | ||
Operating Loss Carryforwards | 168,000 | ||
Digonex | Federal | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Operating Loss Carryforward, Determined to be Available to Offset Future Income | 15,000 | ||
Operating Loss Carryforwards | 45,000 | ||
Digonex | State and Local Jurisdiction | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Operating Loss Carryforward, Determined to be Available to Offset Future Income | 15,000 | ||
Operating Loss Carryforwards | $ 45,000 |
Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
|
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefit - opening balance | $ (87) | $ (172) |
Gross increases - tax positions in prior periods | 0 | (21) |
Gross decreases - settlements with taxing authorities | 0 | 81 |
Gross decreases - lapse of applicable statute of limitations | 27 | 25 |
Gross unrecognized tax benefit - ending balance | $ (60) | $ (87) |
Segment Information - Concentration Risk (Detail) |
12 Months Ended |
---|---|
Feb. 28, 2017 | |
Geographic risk | Radio | Revenue | |
Concentration Risk [Line Items] | |
Concentration risk | 50.00% |
Segment Information Results of Operations of Business Segments (Detail) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017
USD ($)
Segment
|
Feb. 29, 2016
USD ($)
|
Feb. 28, 2015
USD ($)
|
|
Segment Reporting Information [Line Items] | |||
Magazines Sold | 5 | ||
Number of operating segments | Segment | 3 | ||
Net revenues | $ 214,568 | $ 231,433 | $ 237,938 |
Station Operating Expenses Excluding Depreciation And Amortization | 180,085 | 183,394 | 181,009 |
Corporate expenses excluding depreciation and amortization expense | 11,359 | 13,023 | 14,922 |
LMA fees | 0 | 0 | 4,208 |
Hungary license litigation expense | 0 | 0 | 521 |
Impairment losses on intangible assets | 9,843 | 9,499 | 67,915 |
Depreciation and amortization | 4,806 | 5,797 | 5,926 |
Gain on contract settlement | 0 | 0 | (2,500) |
Gain on sale of radio and publishing assets, net of disposition costs | (23,557) | 0 | 0 |
Gain on sale of fixed assets | 124 | 56 | 0 |
OPERATING (LOSS) INCOME | 31,908 | 19,664 | (34,063) |
Total Assets | $ 289,338 | 316,606 | |
Magazines Owned Prior to Sales | 6 | ||
Radio | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 165,148 | 169,228 | 176,250 |
Station Operating Expenses Excluding Depreciation And Amortization | 115,366 | 116,862 | 117,167 |
Corporate expenses excluding depreciation and amortization expense | 0 | 0 | |
LMA fees | 4,208 | ||
Hungary license litigation expense | 521 | ||
Impairment losses on intangible assets | 6,855 | 5,440 | 67,915 |
Depreciation and amortization | 3,462 | 3,345 | 3,143 |
Gain on contract settlement | (2,500) | ||
Gain on sale of radio and publishing assets, net of disposition costs | (3,478) | ||
Gain on sale of fixed assets | 124 | 54 | |
OPERATING (LOSS) INCOME | 42,819 | 43,527 | (14,204) |
Total Assets | 260,228 | 271,336 | |
Publishing | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 48,559 | 60,992 | 61,142 |
Station Operating Expenses Excluding Depreciation And Amortization | 51,063 | 58,891 | 60,083 |
Corporate expenses excluding depreciation and amortization expense | 0 | 0 | |
LMA fees | 0 | ||
Hungary license litigation expense | 0 | ||
Impairment losses on intangible assets | 0 | 0 | |
Depreciation and amortization | 230 | 266 | 245 |
Gain on contract settlement | 0 | ||
Gain on sale of radio and publishing assets, net of disposition costs | (20,079) | ||
Gain on sale of fixed assets | 0 | 0 | |
OPERATING (LOSS) INCOME | 17,345 | 1,835 | 814 |
Total Assets | 1,746 | 22,060 | |
Corporate and Emerging Technologies | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 861 | 1,213 | 546 |
Station Operating Expenses Excluding Depreciation And Amortization | 13,656 | 7,641 | 3,759 |
Corporate expenses excluding depreciation and amortization expense | 11,359 | 13,023 | 14,922 |
LMA fees | 0 | ||
Hungary license litigation expense | 0 | ||
Impairment losses on intangible assets | 2,988 | 4,059 | 0 |
Depreciation and amortization | 1,114 | 2,186 | 2,538 |
Gain on contract settlement | 0 | ||
Gain on sale of radio and publishing assets, net of disposition costs | 0 | ||
Gain on sale of fixed assets | 0 | 2 | |
OPERATING (LOSS) INCOME | (28,256) | (25,698) | $ (20,673) |
Total Assets | $ 27,364 | $ 23,210 |
Components of Other Income, Net (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 28, 2015 |
|
Income (loss) from unconsolidated affiliate, including other-than-temporary impairment losses | |||
(Loss) income from unconsolidated affiliate, including other-than-temporary impairment losses | $ (28) | $ (82) | $ 11 |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (254) | 0 | (6,682) |
Interest income | 38 | 36 | 78 |
Other | 84 | 1,103 | 175 |
Other (expense) income, net | $ (160) | $ 1,057 | $ (6,418) |
Related Party Transactions - Additional Information (Detail) $ in Millions |
Feb. 28, 2017
USD ($)
|
---|---|
Related Party Transactions [Abstract] | |
Life insurance premium payments made, recoverable | $ 1.1 |
Subsequent Events (Detail) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 18, 2017
USD ($)
|
Aug. 22, 2016 |
Apr. 30, 2015
USD ($)
|
Nov. 07, 2014
USD ($)
|
Jun. 10, 2014
USD ($)
|
Aug. 31, 2017 |
Feb. 28, 2017
USD ($)
shares
|
Nov. 30, 2016 |
Aug. 31, 2016 |
May 31, 2016 |
Feb. 28, 2017
USD ($)
shares
|
Feb. 29, 2016
USD ($)
|
Feb. 28, 2015
USD ($)
|
May 31, 2017 |
Feb. 16, 2016
shares
|
|
Subsequent Event [Line Items] | |||||||||||||||
Property, Plant and Equipment, Net | $ 30,845 | $ 30,845 | $ 33,843 | ||||||||||||
Sales Revenue, Services, Net | $ 214,568 | 231,433 | $ 237,938 | ||||||||||||
Number of shares of Class A common stock converted for each share of Preferred Stock | shares | 2.80 | 2.80 | 2.44 | ||||||||||||
Station Operating Expenses Excluding Depreciation And Amortization | $ 180,085 | 183,394 | 181,009 | ||||||||||||
Depreciation and amortization | 4,806 | 5,797 | 5,926 | ||||||||||||
OPERATING (LOSS) INCOME | 31,908 | 19,664 | (34,063) | ||||||||||||
Indefinite lived intangibles | $ 197,666 | 197,666 | 205,129 | 210,057 | |||||||||||
Finite-Lived Intangible Assets, Net | 1,523 | 1,523 | 3,299 | ||||||||||||
Assets, Noncurrent | $ 8,244 | $ 8,244 | 7,947 | ||||||||||||
Subsequent Event [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Leverage ratio | 4.00 | ||||||||||||||
Covenant Requirement | Minimum | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Minimum Fixed Charge Coverage Ratio | 2.00 | 2.00 | |||||||||||||
Covenant Requirement | Minimum | Subsequent Event [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Consolidated EBITDA | $ 20,000 | ||||||||||||||
Minimum Fixed Charge Coverage Ratio | 1.60 | ||||||||||||||
2014 Credit Agreement | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Leverage ratio | 6.75 | 5.00 | 5.75 | 6.00 | 6.25 | 6.50 | 6.00 | ||||||||
Commitment fee percentage | 50.00% | ||||||||||||||
Debt fee (percent) | 5000.00% | 0.50% | |||||||||||||
Debt Issuance Cost | $ 1,100 | $ 1,000 | $ 6,100 | ||||||||||||
2014 Credit Agreement | Subsequent Event [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Commitment fee percentage | 75.00% | ||||||||||||||
Debt fee (percent) | 1.00% | ||||||||||||||
Debt Issuance Cost | $ 1,500 | ||||||||||||||
Eurodollar [Member] | 2014 Credit Agreement | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Basis spread on variable rate (as a percent) | 6.00% | ||||||||||||||
Eurodollar [Member] | 2014 Credit Agreement | Subsequent Event [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Basis spread on variable rate (as a percent) | 7.00% | ||||||||||||||
Base Rate | 2014 Credit Agreement | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Basis spread on variable rate (as a percent) | 5.00% | 3.75% | |||||||||||||
Base Rate | 2014 Credit Agreement | Subsequent Event [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Basis spread on variable rate (as a percent) | 6.00% | ||||||||||||||
KPWR-FM (Los Angeles) | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Property, Plant and Equipment, Net | $ 1,400 | $ 1,400 | 1,586 | ||||||||||||
Sales Revenue, Services, Net | 24,379 | 28,183 | 32,986 | ||||||||||||
Station Operating Expenses Excluding Depreciation And Amortization | 16,933 | 16,305 | 17,848 | ||||||||||||
Depreciation and amortization | 401 | 422 | 570 | ||||||||||||
OPERATING (LOSS) INCOME | 7,045 | 11,456 | $ 14,568 | ||||||||||||
Indefinite lived intangibles | 2,018 | 2,018 | 2,018 | ||||||||||||
Finite-Lived Intangible Assets, Net | 68 | 68 | 75 | ||||||||||||
Assets, Noncurrent | $ 39 | $ 39 | $ 21 |
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