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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:
 3 Months Ended
Mar. 31, 2013
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
Additional Financial Information Disclosure [Text Block]

12.  CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

 

The Company conducts a portion of its business through its subsidiaries. All of the Company’s Subsidiary Guarantors, except for Reach Media, have fully and unconditionally guaranteed the Company’s 63/8 Senior Subordinated Notes due February 2013, the 121/2%/15% Senior Subordinated Notes due May 2016, and the Company’s obligations under the 2011 Credit Agreement, as amended.

 

On February 14, 2013, Reach Media executed: (i) a Joinder to the Security Agreement, making it a grantor with respect to the 2011 Credit Agreement and related transaction documents (the “Credit Facility”); (ii) a Joinder to Pledge Agreement, making it a pledgee with respect to the Credit Facility; and (iii) a Joinder to Subsidiaries Guaranty, making it a guarantor with respect to the Credit Facility. Therefore, Reach Media has fully and unconditionally guaranteed the Company’s 121/2%/15% Senior Subordinated Notes due May 2016 and the Company’s obligations under the 2011 Credit Agreement, as amended.

 

Set forth below are consolidated balance sheets for the Company and the Subsidiary Guarantors as of March 31, 2013, and December 31, 2012, and related consolidated statements of operations, comprehensive loss and cash flows for the three months ended March 31, 2013 and 2012. The equity method of accounting has been used by the Company to report its investments in subsidiaries. Separate financial statements for the Subsidiary Guarantors are not presented based on management’s determination that they do not provide additional information that is material to investors.

  

CONSOLIDATING STATEMENT OF OPERATIONS
Three Months Ended March 31, 2013
                         
    Combined                    
    Guarantor     Radio              
    Subsidiaries     One, Inc.     Eliminations     Consolidated  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
    (In thousands)  
                         
NET REVENUE   $ 41,463     $ 57,649     $ —     $ 99,112  
OPERATING EXPENSES:                                
Programming and technical     15,488       14,985       —       30,473  
Selling, general and administrative, including stock-based compensation     17,040       15,683       —       32,723  
Corporate selling, general and administrative, including stock-based compensation     1,138       8,339       —       9,477  
Depreciation and amortization     1,929       7,611       —       9,540  
Impairment of long-lived assets     1,370       —       —       1,370  
    Total operating expenses     36,965       46,618       —       83,583  
    Operating income     4,498       11,031       —       15,529  
INTEREST INCOME     —       40       —       40  
INTEREST EXPENSE     363       21,883       —       22,246  
OTHER INCOME, net     10       30       —       40  
Income (loss) before provision for income taxes, noncontrolling interests in income of subsidiaries and discontinued operations     4,145       (10,782 )     —       (6,637 )
PROVISION FOR INCOME TAXES     —       6,681       —       6,681  
Net income (loss) before equity in income of subsidiaries and discontinued operations     4,145       (17,463 )     —       (13,318 )
EQUITY IN INCOME OF SUBSIDIARIES     —       5,048       (5,048 )     —  
Net income (loss) from continuing operations     4,145       (12,415 )     (5,048 )     (13,318 )
INCOME FROM DISCONTINUED OPERATIONS, net of tax     903       —       —       903  
CONSOLIDATED NET INCOME (LOSS)     5,048       (12,415 )     (5,048 )     (12,415 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS     —       5,691       —       5,691  
CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS   $ 5,048     $ (18,106 )   $ (5,048 )   $ (18,106 )

 

CONSOLIDATING STATEMENT OF OPERATIONS
Three Months Ended March 31, 2012
                         
    Combined                    
    Guarantor     Radio              
    Subsidiaries     One, Inc.     Eliminations     Consolidated  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
    (In thousands)  
                         
NET REVENUE   $ 31,025     $ 71,939     $ —     $ 102,964  
OPERATING EXPENSES:                                
Programming and technical     8,357       22,755       —       31,112  
Selling, general and administrative, including stock-based compensation     14,654       24,118       —       38,772  
Corporate selling, general and administrative, including stock-based compensation     —       9,593       —       9,593  
Depreciation and amortization     1,821       7,864       —       9,685  
    Total operating expenses     24,832       64,330       —       89,162  
    Operating income     6,193       7,609       —       13,802  
INTEREST INCOME     —       22       —       22  
INTEREST EXPENSE     249       23,498       —       23,747  
OTHER INCOME, net     —       7       —       7  
Income (loss) before provision for income taxes, noncontrolling interests in income of subsidiaries and discontinued operations     5,944       (15,860 )     —       (9,916 )
PROVISION FOR INCOME TAXES     —       65,254       —       65,254  
Net income (loss) before equity in income of subsidiaries and discontinued operations     5,944       (81,114 )     —       (75,170 )
EQUITY IN INCOME OF SUBSIDIARIES     —       5,930       (5,930 )     —  
Net income (loss) from continuing operations     5,944       (75,184 )     (5,930 )     (75,170 )
LOSS FROM DISCONTINUED OPERATIONS, net of tax     (14 )     (1 )     —       (15 )
CONSOLIDATED NET INCOME (LOSS)     5,930       (75,185 )     (5,930 )     (75,185 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS     —       4,057       —       4,057  
CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS   $ 5,930     $ (79,242 )   $ (5,930 )   $ (79,242 )

  

CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
Three Months Ended March 31, 2013

 

 

                         
    Combined                    
    Guarantor     Radio              
    Subsidiaries     One, Inc.     Eliminations     Consolidated  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
    (In thousands)  
                         
CONSOLIDATED NET INCOME (LOSS)   $ 5,048     $ (12,415 )   $ (5,048 )   $ (12,415 )
NET CHANGE IN UNREALIZED LOSS ON INVESTMENT ACTIVITIES     —       (20 )     —       (20 )
COMPREHENSIVE INCOME (LOSS)     5,048       (12,435 )     (5,048 )     (12,435 )
LESS:  COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS     —       5,691       —       5,691  
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS   $ 5,048     $ (18,126 )   $ (5,048 )   $ (18,126 )

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

Three Months Ended March 31, 2012

 

                         
    Combined                    
    Guarantor     Radio              
    Subsidiaries     One, Inc.     Eliminations     Consolidated  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
    (In thousands)  
                         
CONSOLIDATED NET INCOME (LOSS)   $ 5,930     $ (75,185 )   $ (5,930 )   $ (75,185 )
NET CHANGE IN UNREALIZED LOSS ON INVESTMENT ACTIVITIES     —       97       —       97  
COMPREHENSIVE INCOME (LOSS)     5,930       (75,088 )     (5,930 )     (75,088 )
LESS:  COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS     —       4,057       —       4,057  
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS   $ 5,930     $ (79,145 )   $ (5,930 )   $ (79,145 )

 

CONSOLIDATING BALANCE SHEETS
As of March 31, 2013
                         
    Combined                    
    Guarantor     Radio One,              
    Subsidiaries     Inc.     Eliminations     Consolidated  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
    (In thousands)  
                         
ASSETS  
CURRENT ASSETS:                                
   Cash and cash equivalents   $ 2,766     $ 43,660     $ —     $ 46,426  
   Short-term investments     —       3,212       —       3,212  
   Trade accounts receivable, net of allowance for doubtful accounts     38,033       45,703       —       83,736  
   Prepaid expenses and other current assets     7,509       2,821       —       10,330  
   Current portion of content assets     —       28,770       —       28,770  
   Current assets from discontinued operations     (10 )     125       —       115  
   Total current assets     48,298       124,291       —       172,589  
PREPAID PROGRAMMING AND DEPOSITS     —       5,857       —       5,857  
PROPERTY AND EQUIPMENT, net     17,369       17,421       —       34,790  
INTANGIBLE ASSETS, net     562,386       628,279       —       1,190,665  
CONTENT ASSETS, net     —       33,748       —       33,748  
LONG-TERM INVESTMENTS     —       68       —       68  
INVESTMENT IN SUBSIDIARIES     —       609,930       (609,930 )     —  
OTHER ASSETS     190       2,751       —       2,941  
NON-CURRENT ASSETS FROM DISCONTINUED OPERATIONS     1,402       —       —       1,402  
   Total assets   $ 629,645     $ 1,422,345     $ (609,930 )   $ 1,442,060  
                                 
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY  
                                 
CURRENT LIABILITIES:                                
   Accounts payable   $ 2,416     $ 4,117     $ —     $ 6,533  
   Accrued interest     —       6,069       —       6,069  
   Accrued compensation and related benefits     2,626       6,340       —       8,966  
   Current portion of content payables     —       16,038       —       16,038  
   Other current liabilities     13,447       3,778       —       17,225  
   Current portion of long-term debt     —       3,840       —       3,840  
   Current liabilities from discontinued operations     86       26       —       112  
   Total current liabilities     18,575       40,208       —       58,783  
LONG-TERM DEBT, net of current portion and original issue discount     —       813,536       —       813,536  
CONTENT PAYABLES, net of current portion     —       10,835       —       10,835  
OTHER LONG-TERM LIABILITIES     1,124       17,309       —       18,433  
DEFERRED TAX LIABILITIES     —       194,853       —       194,853  
NON-CURRENT LIABILITIES FROM DISCONTINUED OPERATIONS     16       —       —       16  
   Total liabilities     19,715       1,076,741       —       1,096,456  
                                 
REDEEMABLE NONCONTROLLING INTEREST     —       13,012       —       13,012  
                                 
STOCKHOLDERS’ EQUITY:                                
   Common stock     —       49       —       49  
   Accumulated other comprehensive loss     —       (122 )     —       (122 )
   Additional paid-in capital     176,731       1,005,045       (176,731 )     1,005,045  
   Retained earnings (accumulated deficit)     433,199       (881,127 )     (433,199 )     (881,127 )
   Total stockholders’ equity     609,930       123,845       (609,930 )     123,845  
Noncontrolling interest     —       208,747       —       208,747  
Total Equity     609,930       332,592       (609,930 )     332,592  
   Total liabilities, redeemable noncontrolling interest and equity   $ 629,645     $ 1,422,345     $ (609,930 )   $ 1,442,060  

 

CONSOLIDATING BALANCE SHEETS
As of December 31, 2012
                         
    Combined                    
    Guarantor     Radio One,              
    Subsidiaries     Inc.     Eliminations     Consolidated  
    (In thousands)  
ASSETS  
CURRENT ASSETS:                                
   Cash and cash equivalents   $ 1,511     $ 55,744     $ —     $ 57,255  
   Short-term investments     —       1,597       —       1,597  
   Trade accounts receivable, net of allowance for doubtful accounts     28,821       53,091       —       81,912  
   Prepaid expenses and other current assets     1,006       6,104       —       7,110  
   Current portion of content assets     —       27,723       —       27,723  
   Current assets from discontinued operations     3       124       —       127  
   Total current assets     31,341       144,383       —       175,724  
PROPERTY AND EQUIPMENT, net     17,073       18,209       —       35,282  
INTANGIBLE ASSETS, net     546,126       656,436       —       1,202,562  
CONTENT ASSETS, net     —       38,981       —       38,981  
LONG-TERM INVESTMENTS     —       97       —       97  
INVESTMENT IN SUBSIDIARIES     —       585,044       (585,044 )     —  
OTHER ASSETS     241       2,742       —       2,983  
NON-CURRENT ASSETS FROM DISCONTINUED OPERATIONS     4,566       —       —       4,566  
   Total assets   $ 599,347     $ 1,445,892     $ (585,044 )   $ 1,460,195  
                                 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY  
                                 
CURRENT LIABILITIES:                                
   Accounts payable   $ 1,794     $ 3,616     $ —     $ 5,410  
   Accrued interest     —       5,849       —       5,849  
   Accrued compensation and related benefits     2,109       9,056       —       11,165  
   Current portion of content payables     —       17,694       —       17,694  
   Other current liabilities     9,209       6,954       —       16,163  
   Current portion of long-term debt     —       4,587       —       4,587  
   Current liabilities from discontinued operations     94       13       —       107  
   Total current liabilities     13,206       47,769       —       60,975  
LONG-TERM DEBT, net of current portion and original issue discount     —       814,131       —       814,131  
CONTENT PAYABLES, net of current portion     —       11,163       —       11,163  
OTHER LONG-TERM LIABILITIES     1,074       17,229       —       18,303  
DEFERRED TAX LIABILITIES     —       188,249       —       188,249  
NON-CURRENT LIABILITIES FROM DISCONTINUED OPERATIONS     23       —       —       23  
   Total liabilities     14,303       1,078,541       —       1,092,844  
                                 
REDEEMABLE NONCONTROLLING INTERESTS     —       12,853       —       12,853  
                                 
STOCKHOLDERS’ EQUITY:                                
   Common stock     —       50       —       50  
   Accumulated other comprehensive income     —       (102 )     —       (102 )
   Additional paid-in capital     156,893       1,006,873       (156,893 )     1,006,873  
   Retained earnings (accumulated deficit)     428,151       (863,021 )     (428,151 )     (863,021 )
   Total stockholders’ equity     585,044       143,800       (585,044 )     143,800  
Noncontrolling interest     —       210,698       —       210,698  
Total Equity     585,044       354,498       (585,044 )     354,498  
   Total liabilities, redeemable noncontrolling interests and equity   $ 599,347     $ 1,445,892     $ (585,044 )   $ 1,460,195  

 

CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2013
                         
    Combined                    
    Guarantor     Radio              
    Subsidiaries     One, Inc.     Eliminations     Consolidated  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
    (In thousands)  
       
CASH FLOWS FROM OPERATING ACTIVITIES:                                
  Consolidated net income (loss)   $ 5,048     $ (12,415 )   $ (5,048 )   $ (12,415 )
      Adjustments to reconcile net income (loss) to net cash from operating activities:                                
     Depreciation and amortization     1,929       7,611       —       9,540  
     Amortization of debt financing costs     —       1,317       —       1,317  
     Amortization of content assets     —       8,796       —       8,796  
     Amortization of launch assets     —       2,491       —       2,491  
     Deferred income taxes     —       6,604       —       6,604  
     Impairment of long-lived assets     1,370       —       —       1,370  
     Stock-based compensation and other non-cash compensation     —       43       —       43  
Effect of change in operating assets and liabilities, net of assets acquired:                        
        Trade accounts receivable, net     (9,212 )     7,388       —       (1,824 )
        Prepaid expenses and other current assets     (6,503 )     3,283       —       (3,220 )
        Other assets     51       (9 )     —       42  
        Accounts payable     622       501       —       1,123  
        Due to corporate/from subsidiaries     17       (17 )     —       —  
        Accrued interest     —       220       —       220  
        Accrued compensation and related benefits     517       (2,716 )     —       (2,199 )
        Income taxes payable     —       56       —       56  
        Other liabilities     4,254       (3,117 )     —       1,137  
         Payments for content assets     —       (12,451 )     —       (12,451 )
              Net cash flows provided by operating activities from discontinued operations     3,162       12       —       3,174  
           Net cash flows provided by (used in) operating activities     1,255       7,597       (5,048 )     3,804  
CASH FLOWS FROM INVESTING ACTIVITIES:                                
  Purchase of property and equipment     —       (2,220 )     —       (2,220 )
   Proceeds from sales of investment securities     —       503       —       503  
   Purchases of investment securities     —       (1,831 )     —       (1,831 )
  Investment in subsidiaries     —       (5,048 )     5,048       —  
     Net cash flows (used in) provided by investing activities     —       (8,596 )     5,048       (3,548 )
CASH FLOWS FROM FINANCING ACTIVITIES:                                
   Repayment of credit facility     —       (960 )     —       (960 )
   Repurchase of common stock     —       (1,526 )     —       (1,526 )
   Repayment of senior subordinated notes     —       (747 )     —       (747 )
   Debt refinancing and modification costs     —       (23 )     —       (23 )
   Payment of dividends to noncontrolling interest members of TV One     —       (7,829 )     —       (7,829 )
     Net cash flows used in financing activities     —       (11,085 )     —       (11,085 )
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     1,255       (12,084 )     —       (10,829 )
CASH AND CASH EQUIVALENTS, beginning of period     1,511       55,744       —       57,255  
CASH AND CASH EQUIVALENTS, end of period   $ 2,766     $ 43,660     $ —     $ 46,426  

 

CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2012
                         
    Combined                    
    Guarantor     Radio              
    Subsidiaries     One, Inc.     Eliminations     Consolidated  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
    (In thousands)  
       
CASH FLOWS FROM OPERATING ACTIVITIES:                                
  Consolidated net income (loss)   $ 5,930     $ (75,185 )   $ (5,930 )   $ (75,185 )
      Adjustments to reconcile net income (loss) to net cash from operating activities:                                
     Depreciation and amortization     1,821       7,864       —       9,685  
     Amortization of debt financing costs     —       760       —       760  
     Amortization of content assets     —       8,321       —       8,321  
     Amortization of launch assets     —       2,489       —       2,489  
     Deferred income taxes     —       65,582       —       65,582  
     Stock-based compensation and other non-cash compensation     —       44       —       44  
     Non-cash interest     —       7,038       —       7,038  
Effect of change in operating assets and liabilities, net of assets acquired:                        
        Trade accounts receivable, net     2,186       1,369       —       3,555  
        Prepaid expenses and other current assets     (43 )     1,557       —       1,514  
        Other assets     (32 )     (2,977 )     —       (3,009 )
        Accounts payable     (25 )     2,635       —       2,610  
        Due to corporate/from subsidiaries     (10,361 )     10,361       —       —  
        Accrued interest     —       121       —       121  
        Accrued compensation and related benefits     117       487       —       604  
        Income taxes payable     —       (431 )     —       (431 )
        Other liabilities     243       (718 )     —       (475 )
         Payments for content assets     —       (10,714 )     —       (10,714 )
              Net cash flows used in operating activities from discontinued operations     (24 )     —       —       (24 )
           Net cash flows (used in) provided by operating activities     (188 )     18,603       (5,930 )     12,485  
CASH FLOWS FROM INVESTING ACTIVITIES:                                
  Purchase of property and equipment     —       (2,960 )     —       (2,960 )
   Proceeds from sales of investment securities     —       3,859       —       3,859  
   Purchases of investment securities     —       (348 )     —       (348 )
  Investment in subsidiaries     —       (5,930 )     5,930       —  
     Net cash flows (used in) provided by investing activities     —       (5,379 )     5,930       551  
CASH FLOWS FROM FINANCING ACTIVITIES:                                
   Repayment of credit facility     —       (965 )     —       (965 )
   Debt refinancing and modification costs     —       (13 )     —       (13 )
   Payment of dividends to noncontrolling interest members of TV One     —       (4,113 )     —       (4,113 )
     Net cash flows used in financing activities     —       (5,091 )     —       (5,091 )
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS     (188 )     8,133       —       7,945  
CASH AND CASH EQUIVALENTS, beginning of period     187       35,752       —       35,939  
CASH AND CASH EQUIVALENTS, end of period   $ (1 )   $ 43,885     $ —     $ 43,884