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Segment Data
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Data
Segment Data
During the first quarter of 2016 the Company modified its management reporting framework, affecting how the Company evaluates operating performance and internally reports financial information. This modification resulted in a reorganization of its reportable segments. Prior to this reorganization, the Company operated in one reportable business segment which consisted of radio broadcasting, advertising and related services. The Company now operates in two reportable segments, the Radio Station Group and Westwood One, for which there is discrete financial information available and whose operating results are reviewed by the chief operating decision maker. Radio Station Group revenue is derived primarily from the sale of broadcasting time to local, regional and national advertisers. Westwood One revenue is generated primarily through network advertising.
Corporate includes overall executive, administrative and support functions for each of the Company’s reportable segments, including information technology, human resources, legal, finance and administrative functions.
Historical information has been revised to reflect the change in segments, with no impact on consolidated results.
The Company presents segment adjusted EBITDA ("Adjusted EBITDA") as the financial metric utilized by management of the Company to analyze the cash flow generated by the Company’s reportable segments. This measure isolates the amount of income generated by our core operations before the incurrence of corporate expenses. Management also uses this measure to determine the contribution of our core operations to the funding of our corporate resources utilized to manage our operations and our non-operating expenses including debt service and acquisitions. In addition, Adjusted EBITDA on a consolidated basis is a key metric for purposes of calculating and determining our compliance with certain covenants contained in the Credit Agreement. In deriving this measure, the Company excludes depreciation, amortization, and stock-based compensation expense, as these do not represent cash payments for activities directly related to our core operations. The Company excludes any gain or loss on the exchange or sale of any assets and any gain or loss on derivative instruments as they do not represent cash transactions nor are they associated with core operations. Expenses relating to acquisitions and restructuring costs are also excluded from the calculation of Adjusted EBITDA as they are not directly related to our core operations. The Company excludes any costs associated with impairment of assets as they do not require a cash outlay.
The Company believes that Adjusted EBITDA, although not a measure that is calculated in accordance with GAAP, nevertheless is commonly employed by the investment community as a measure for determining the market value of a media company. The Company has also observed that Adjusted EBITDA is routinely employed to evaluate and negotiate the potential purchase price for media companies. Given the relevance to the Company’s overall value, the Company believes that investors consider the metric to be extremely useful.
Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss), operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP. In addition, Adjusted EBITDA may be defined or calculated differently by other companies, and comparability may be limited.
The Company’s financial data by segment is presented in the tables below:    
 
 
Three Months Ended September 30, 2016
 
 
Radio Station Group
 
Westwood One
 
Corporate and Other
 
Consolidated
Net revenue
 
$
206,199

 
$
79,413

 
$
524

 
$
286,136

 
 
Nine Months Ended September 30, 2016
 
 
Radio Station Group
 
Westwood One
 
Corporate and Other
 
Consolidated
Net revenue
 
$
592,640

 
$
247,507

 
$
1,712

 
$
841,859

 
 
Three Months Ended September 30, 2015
 
 
Radio Station Group
 
Westwood One
 
Corporate and Other
 
Consolidated
Net revenue
 
$
204,677

 
$
84,071

 
$
693

 
$
289,441

 
 
Nine Months Ended September 30, 2015
 
 
Radio Station Group
 
Westwood One
 
Corporate and Other
 
Consolidated
Net revenue
 
$
589,843

 
$
267,387

 
$
2,624

 
$
859,854


 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2016
 
2015
 
2016
 
2015
Adjusted EBITDA by segment
 
 
 
 
 
 
 
     Radio Station Group
$
56,237

 
$
63,032

 
$
159,278

 
$
179,481

     Westwood One
(2,689
)
 
16,120

 
17,998

 
43,056

Segment Adjusted EBITDA
53,548

 
79,152

 
177,276

 
222,537

Adjustments
 
 
 
 
 
 
 
     Corporate and other
(9,664
)
 
(8,532
)
 
(28,278
)
 
(26,439
)
     Income tax (expense) benefit
(32,788
)
 
60,855

 
(24,904
)
 
58,520

     Non operating expense, including net interest expense
(33,908
)
 
(35,820
)
 
(101,934
)
 
(93,079
)
     LMA fees
(2,481
)
 
(2,515
)
 
(10,351
)
 
(7,585
)
     Depreciation and amortization
(21,957
)
 
(25,547
)
 
(68,023
)
 
(76,582
)
     Stock-based compensation expense
(735
)
 
(12,304
)
 
(2,403
)
 
(20,047
)
     Gain (loss) on sale of assets or stations
94,014

 
(57
)
 
97,155

 
(792
)
     Impairment of intangible assets
—

 
(565,584
)
 
(1,816
)
 
(565,584
)
     Impairment charges - equity interest in Pulser Media
—

 
(18,308
)
 
—

 
(19,364
)
     Acquisition-related and restructuring costs
450

 
(13,763
)
 
(3,237
)
 
(13,160
)
     Franchise and state taxes
(158
)
 
244

 
(527
)
 
(320
)
Consolidated net income (loss)
$
46,321

 
$
(542,179
)
 
$
32,958

 
$
(541,895
)