Supplemental Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2012

Condensed Consolidating Statements of Operations

As permitted by the accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the Company has presented revised financial information for the year ended December 31, 2011 and 2010 and will revise the interim condensed consolidating information in future quarterly filings.

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Year Ended December 31, 2012

(Dollars in thousands)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non- guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	1,073,901		$	—		$	—		$	1,073,901
Management fees		2,681			—			—			—			—			2,681
Net revenues		2,681			—			1,073,901			—			—			1,076,582
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			658,285			3,226			—			661,511
Depreciation and amortization		2,671			—			139,472			—			—			142,143
LMA fees		—			—			3,556			—			—			3,556
Corporate general and administrative expenses (including stock-based compensation expense of $11,894)		57,438			—			—			—			—			57,438
Realized loss on derivative instrument		—			—			(12	)		—			—			(12	)
Impairment of intangible assets		—			—			112,435			14,706			—			127,141
Total operating expenses		60,109			—			913,736			17,932			—			991,777
Operating (loss) income		(57,428	)		—			160,165			(17,932	)		—			84,805
Non-operating (expense) income:
Interest (expense) income, net		(3,708	)		(196,036	)		1,116			—			—			(198,628	)
Loss on early extinguishment of debt		—			(2,432	)		—			—			—			(2,432	)
Other expense, net		—			—			(2,474	)		—			—			(2,474	)
Total non-operating (expense) income, net		(3,708	)		(198,468	)		(1,358	)		—			—			(203,534	)
(Loss) income from continuing operations before income taxes		(61,136	)		(198,468	)		158,807			(17,932	)		—			(118,729	)
Income tax benefit		—			—			39,489			(12,937	)		—			26,552
(Loss) income from continuing operations		(61,136	)		(198,468	)		198,296			(30,869	)		—			(92,177	)
Income (loss) from discontinued operations, net of taxes		—			—			27,024			32,424			—			59,448
Earnings (loss) from consolidated subsidiaries		28,407			226,875			1,555			—			(256,837	)		—
Net (loss) income	$	(32,729	)	$	28,407		$	226,875		$	1,555		$	(256,837	)	$	(32,729	)

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Year Ended December 31, 2011

(Dollars in thousands)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non- guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—		$	517,171		$	—		$	—		$	517,171
Management fees		—			—			2,792			—			—			2,792
Net revenues		—			—			519,963			—			—			519,963
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—			314,875			1,378			—			316,253
Depreciation and amortization		1,300			—			49,848			—			—			51,148
LMA fees		—			—			2,525			—			—			2,525
Corporate general and administrative expenses (including stock-based compensation expense of $5,855)		89,828			—			933			—			—			90,761
Gain on exchange of assets or stations		—			—			(15,278	)		—			—			(15,278	)
Realized loss on derivative instrument		—			—			3,368			—			—			3,368
Total operating expenses		91,128			—			356,271			1,378			—			448,777
Operating (loss) income		(91,128	)		—			163,692			(1,378	)		—			71,186
Non-operating (expense) income:
Interest (expense) income, net		(9,276	)		(78,112	)		399			—			—			(86,989	)
Loss on early extinguishment of debt		(4,366	)		—			—			—			—			(4,366	)
Other income, net		—			—			39			—			—			39
Gain on equity investment in Cumulus Media Partners, LLC		11,636			—			—									11,636
Total non-operating (expense) income, net		(2,006	)		(78,112	)		438			—			—			(79,680	)
(Loss) income from continuing operations before income taxes		(91,134	)		(78,112	)		164,130			(1,378	)		—			(8,494	)
Income tax benefit (expense)		—			—			17,739			(14,426	)		—			3,313
(Loss) income from continuing operations		(91,134	)		(78,112	)		181,869			(15,804	)		—			(5,181	)
Income from discontinued operations, net of taxes		—			—			71,950			(2,909	)		—			69,041
Earnings (loss) from consolidated subsidiaries		156,994			235,106			(18,713	)		—			(373,387	)		—
Net income (loss)	$	63,860		$	156,994		$	235,106		$	(18,713	)	$	(373,387	)	$	63,860

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Year Ended December 31, 2010

(Dollars in thousands)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary Issuer)		Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Broadcast revenues	$	—		$	—	$	232,494		$	—		$	—		$	232,494
Management fees		4,146			—		—			—			—			4,146
Net revenues		4,146			—		232,494			—			—			236,640
Operating expenses:
Direct operating expenses (excluding depreciation, amortization and LMA fees)		—			—		142,908			809			—			143,717
Depreciation and amortization		1,614			—		6,600			—			—			8,214
LMA fees		—			—		2,054			—			—			2,054
Corporate general and administrative expenses (including stock-based compensation expense of $2,451)		18,519			—		—			—			—			18,519
Impairment of intangible assets and goodwill		—			—		—			671			—			671
Realized loss on derivative instrument		—			—		1,957			—			—			1,957
Total operating expenses		20,133			—		153,519			1,480			—			175,132
Operating (loss) income		(15,987	)		—		78,975			(1,480	)		—			61,508
Non-operating (expense) income:
Interest (expense) income, net		(30,306	)		—		(1	)		—			—			(30,307	)
Terminated transaction expense		(7,847	)		—		—			—			—			(7,847	)
Other income, net		(6	)		—		114			—			—			108
Total non-operating (expense) income, net		(38,159	)		—		113			—			—			(38,046	)
(Loss) income from continuing operations before income taxes		(54,146	)		—		79,088			(1,480	)		—			23,462
Income tax expense		—			—		(350	)		(1,155	)		—			(1,505	)
(Loss) income from continuing operations		(54,146	)		—		78,738			(2,635	)		—			21,957
Income from discontinued operations, net of taxes		—			—		8,538			(1,093	)		—			7,445
Earnings (loss) from consolidated subsidiaries		83,548			—		(3,728	)		—			(79,820	)		—
Net income (loss)	$	29,402		$	—	$	83,548		$	(3,728	)	$	(79,820	)	$	29,402

Condensed Consolidating Balance Sheets

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

As of December 31, 2012

(Dollars in thousands, except for share and per share data)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)		Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Assets
Current assets:
Cash and cash equivalents	$	81,599		$	—	$	6,451		$	—		$	—		$	88,050
Restricted cash		5,921			—		—			—			—			5,921
Accounts receivable, less allowance for doubtful accounts of $4,131		—			—		207,563			—			—			207,563
Trade receivable		—			—		6,104			—			—			6,104
Prepaid expenses and other current assets		6,928			—		38,553			—			—			45,441
Total current assets		94,448			—		258,671			—			—			353,119
Property and equipment, net		4,690			—		251,213			—			—			255,903
Broadcast licenses		—			—		—			1,602,373			—			1,602,373
Other intangible assets, net		—			—		258,303			—			—			258,303
Goodwill		—			—		1,195,594			—			—			1,195,594
Investment in consolidated subsidiaries		415,573			3,354,891		1,127,135			—			(4,897,599	)		—
Intercompany receivables		—			—		471,329			—			(471,329	)		—
Other assets		11,605			47,818		18,860			—			—			78,283
Total assets	$	526,316		$	3,402,709	$	3,581,105		$	1,602,373		$	(5,368,928	)	$	3,743,575
Liabilities, Redeemable Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	10,690		$	8,213	$	83,683		$	—		$	—		$	102,586
Trade payable		—			—		4,803			—			—			4,803
Current portion of long-term debt		—			76,468		—			—			—			76,468
Other current liabilities		—			—		11,386			—			—			11,386
Total current liabilities		10,690			84,681		99,872			—			—			195,243
Long-term debt, excluding 7.75% senior notes		—			2,014,599		—			—			—			2,014,599
7.75% senior notes		—			610,000		—			—			—			610,000
Other liabilities		3,651			—		41,662			—			—			45,313
Intercompany payables		193,473			277,856		—			—			(471,329	)		—
Deferred income taxes		—			—		84,680			475,238			—			559,918
Total liabilities		207,814			2,987,136		226,214			475,238			(471,329	)		3,425,073
Redeemable preferred stock:
Series A cumulative redeemable preferred stock, par value $0.01 per share; stated value of $1,000 per share; 100,000,000 shares authorized; 75,767 shares issued and outstanding		71,869			—		—			—			—			71,869
Total redeemable preferred stock		71,869			—		—			—			—			71,869
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 182,682,073 shares issued and outstanding		1,827			—		—			—			—			1,827
Class B common stock, par value $0.01 per share; 600,000,000 shares authorized; 15,424,944 shares issued and outstanding		154			—		—			—			—			154
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding		6			—		—			—			—			6
Treasury stock, at cost, 24,162,676 shares		(252,001	)		—		—			—			—			(252,001	)
Additional paid-in-capital		1,514,849			232,964		3,853,001			2,099,514			(6,185,478	)		1,514,849
Accumulated (deficit) equity		(1,018,202	)		182,609		(498,110	)		(972,379	)		1,287,879			(1,018,202	)
Total stockholders’ equity (deficit)		246,633			415,573		3,354,891			1,127,135			(4,897,599	)		246,633
Total liabilities, redeemable preferred stock and stockholders’ equity (deficit)	$	526,316		$	3,402,709	$	3,581,105		$	1,602,373		$	(5,368,928	)	$	3,743,575

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

As of December 31, 2011

(Dollars in thousands, except for share and per share data)

	Cumulus Media Inc. Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)		Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Assets
Current assets:
Cash and cash equivalents	$	11,714		$	—	$	18,878		$	—		$	—		$	30,592
Restricted cash		3,854			—		—			—			—			3,854
Accounts receivable, less allowance for doubtful accounts of $2,765		—			—		236,804			—			—			236,804
Trade receivable		—			—		5,967			—			—			5,967
Compensation held in trust		24,807			—		—			—			—			24,807
Prepaid expenses and other current assets		3,750			—		17,554			1,011			—			22,315
Total current assets		44,125			—		279,203			1,011			—			324,339
Property and equipment, net		6,555			—		271,515			—			—			278,070
Broadcast licenses		—			—		—			1,625,415			—			1,625,415
Other intangible assets, net		—			—		390,509			—			—			390,509
Goodwill		—			—		1,334,512			—			—			1,334,512
Investment in consolidated subsidiaries		590,729			3,476,698		1,157,317			—			(5,224,744	)		—
Intercompany receivables		—			—		226,041			—			(226,041	)		—
Other assets		13,577			55,176		18,993			—			—			87,746
Total assets	$	654,986		$	3,531,874	$	3,678,090		$	1,626,426		$	(5,450,785	)	$	4,040,591
Liabilities, Redeemable Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	60,345		$	12,496	$	87,070		$	275		$	—		$	160,186
Trade payable		—			—		4,999			—			—			4,999
Current portion of long-term debt		—			13,250		—			—			—			13,250
Total current liabilities		60,345			25,746		92,069			275			—			178,435
Long-term debt, excluding 7.75% senior notes		—			2,227,287		—			—			—			2,227,287
7.75% senior notes		—			610,000		—			—			—			610,000
Other liabilities		42,552			—		21,386			—			—			63,938
Intercompany payables		147,929			78,112		—			—			(226,041	)		—
Deferred income taxes		—			—		87,937			468,834			—			556,771
Total liabilities		250,826			2,941,145		201,392			469,109			(226,041	)		3,636,431
Redeemable preferred stock:
Series A cumulative redeemable preferred stock, par value $0.01 per share; stated value of $1,000 per share; 100,000,000 shares authorized; 125,000 shares issued and outstanding		113,447			—		—			—			—			113,447
Total redeemable preferred stock		113,447			—		—			—			—			113,447
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 160,783,484 shares issued and 137,085,813 shares outstanding		1,608			—		—			—			—			1,608
Class B common stock, par value $0.01 per share; 600,000,000 shares authorized; 12,439,667 shares issued and outstanding		124			—		—			—			—			124
Class C common stock, par value $0.01 per share; 644,871 shares authorized; 644,871 shares issued and outstanding		6			—		—			—			—			6
Treasury stock, at cost, 23,697,671 shares		(251,666	)		—		—			—			—			(251,666	)
Additional paid-in-capital		1,526,114			433,735		4,198,891			2,131,251			(6,763,877	)		1,526,114
Accumulated (deficit) equity		(985,473	)		156,994		(722,193	)		(973,934	)		1,539,133			(985,473	)
Total stockholders’ equity (deficit)		290,713			590,729		3,476,698			1,157,317			(5,224,744	)		290,713
Total liabilities, redeemable preferred stock and stockholders’ equity (deficit)	$	654,986		$	3,531,874	$	3,678,090		$	1,626,426		$	(5,450,785	)	$	4,040,591

Condensed Consolidating Statements of Cash Flows

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2012

(Dollars in thousands)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Cash flows from operating activities:
Net (loss) income	$	(32,729	)	$	28,407		$	226,875		$	1,555		$	(256,837	)	$	(32,729	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		2,671			—			140,632			—			—			143,303
Amortization of debt issuance costs/discounts		—			10,130			—			—			—			10,130
Provision for doubtful accounts		—			—			3,694			—			—			3,694
Gain on sale of assets or stations		—			—			2,277			—			—			2,277
Gain on exchange of assets or stations		—			—			(37,990	)		(24,977	)		—			(62,967	)
Impairment of intangible assets		—			—			127,141			—			—			127,141
Fair value adjustment of derivative instruments		332			—			(12	)		—			—			320
Deferred income taxes		—			—			(28,681	)		10,454			—			(18,227	)
Stock-based compensation expense		11,893			—			—			—			—			11,893
Loss on early extinguishment of debt		—			2,432			—			—			—			2,432
Earnings from consolidated subsidiaries		(28,407	)		(226,875	)		(1,555	)		—			256,837			—
Changes in assets and liabilities		(80,084	)		3,075			68,496			736			—			(7,777	)
Net cash (used in) provided by operating activities		(126,324	)		(182,831	)		500,877			(12,232	)		—			179,490
Cash flows from investing activities:
Restricted cash		(2,067	)		—			—			—			—			(2,067	)
Proceeds from sale of assets or stations		1,897			—			—			—			—			1,897
Capital expenditures		(722	)		—			(5,885	)		—			—			(6,607	)
Proceeds from exchange of assets or stations		—			—			114,918			—			—			114,918
Acquisitions less cash acquired		—			—			(9,998	)		—			—			(9,998	)
Net cash (used in) provided by investing activities		(892	)		—			99,035			—			—			98,143
Cash flows from financing activities:
Intercompany transactions, net		263,963			336,144			(612,339	)		12,232			—			—
Repayments of borrowings under revolving credit facilities		—			(174,313	)		—			—			—			(174,313	)
Tax withholding payments on behalf of employees		(1,952	)		—			—			—			—			(1,952	)
Preferred stock dividends		(15,017	)		—			—			—			—			(15,017	)
Proceeds from exercise of warrants		142			—			—			—			—			142
Proceeds from borrowings under term loans and revolving credit facilities					21,000			—			—			—			21,000
Deferred financing costs		(802	)		—			—			—			—			(802	)
Redemption of preferred stock		(49,233	)		—			—			—			—			(49,233	)
Net cash provided by (used in) financing activities		197,101			182,831			(612,339	)		12,232			—			(220,175	)
Increase (decrease) in cash and cash equivalents		69,885			—			(12,427	)		—			—			57,458
Cash and cash equivalents at beginning of period		11,714			—			18,878			—			—			30,592
Cash and cash equivalents at end of period	$	81,599		$	—		$	6,451		$	—		$	—		$	88,050

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2011

(Dollars in thousands)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus  Media  Holdings Inc. (Subsidiary Issuer)			Subsidiary Guarantors			Subsidiary Non- guarantors			Eliminations			Total Consolidated
Cash flows from operating activities:
Net income (loss)	$	63,860		$	156,994		$	235,106		$	(18,713	)	$	(373,387	)	$	63,860
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization		1,300			—			51,143			—			—			52,443
Amortization of debt issuance costs/discounts		434			4,366			—			—			—			4,800
Provision for doubtful accounts		—			—			2,736			—			—			2,736
Loss on sale of assets or stations		—			—			43			—			—			43
Gain on exchange of assets or stations		—			—			(15,278	)		—			—			(15,278	)
Fair value adjustment of derivative instruments		(3,582	)		—			3,368			—			—			(214	)
Deferred income taxes		—			—			(79,327	)		17,334			—			(61,993	)
Stock- based compensation expense		5,855			—			—			—			—			5,855
Other		(1,318	)														(1,318	)
Loss on early extinguishment of debt		4,366			—			—			—			—			4,366
Gain on equity investment in Cumulus Media Partners, LLC		(11,636	)		—			—			—			—			(11,636	)
Earnings from consolidated subsidiaries		(156,994	)		(235,106	)		18,713			—			373,387			—
Changes in assets and liabilities		(58,976	)		16,218			70,978			(133	)		—			28,087
Net cash (used in) provided by operating activities		(156,691	)		(57,528	)		287,482			(1,512	)		—			71,751
Cash flows from investing activities:
Restricted cash		(394	)														(394	)
Acquistions less cash acquired		(2,024,172	)		—			—			—			—			(2,024,172	)
Capital expenditures		(1,655	)		—			(5,035	)		—			—			(6,690	)
Net cash used in investing activities		(2,026,221	)		—			(5,035	)		—			—			(2,031,256	)
Cash flows from financing activities:
Intercompany transactions, net		3,044,971			(2,782,738	)		(263,745	)		1,512			—			—
Repayment of borrowings under term loans and revolving credit facilities		(1,264,676	)		—			—			—			—			(1,264,676	)
Tax withholding payments on behalf of employees		(935	)														(935	)
Preferred stock dividends		—			(521	)		—			—			—			(521	)
Proceeds from issuance of 7.75% senior notes due 2019		—			610,000			—			—			—			610,000
Proceeds from borrowings under term loans and revolving credit facilities		—			2,315,145												2,315,145
Proceeds from sale of equity securities		475,000			—			—			—			—			475,000
Financing costs paid in connection with the sale of equity securities		(30,978	)		—			—			—			—			(30,978	)
Redemption of CMP preferred stock		(41,565	)														(41,565	)
Exercise of warrants		171			—			—			—			—			171
Debt discount fees		—			(25,460	)		—			—			—			(25,460	)
Deferred financing costs		—			(58,898	)		—			—			—			(58,898	)
Net cash provided by (used in) financing activities		2,181,988			57,528			(263,745	)		1,512						1,977,283
(Decrease) increase in cash and cash equivalents		(924	)		—			18,702			—			—			17,778
Cash and cash equivalents at beginning of period		12,638			—			176			—			—			12,814
Cash and cash equivalents at end of period	$	11,714		$	—		$	18,878		$	—		$	—		$	30,592

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2010

(Dollars in thousands)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary Issuer)		Subsidiary Guarantors			Subsidiary Non- guarantors			Eliminations			Total Consolidated
Cash flows from operating activities:
Net income (loss)	$	29,402		$	—	$	83,548		$	(3,728	)	$	(79,820	)	$	29,402
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		1,614			—		7,484			—			—			9,098
Amortization of debt issuance costs/discount		1,248			—		—			—			—			1,248
Provision for doubtful accounts		—			—		1,271			—			—			1,271
Loss on sale of assets or stations		—			—		(116	)		—			—			(116	)
Fair value adjustment of derivative instruments		(11,956	)		—		1,957			—			—			(9,999	)
Impairment of intangible assets and goodwill		—			—		—			671			—			671
Deferred income taxes		—			—		(727	)		4,156			—			3,429
Non-cash stock compensation		2,451			—		—			—			—			2,451
(Loss) earnings from consolidated subsidiaries		(83,548	)		—		3,728			—			79,820			—
Changes in assets and liabilities, net of effects of acquisitions/dispositions		10,479			—		(5,191	)		(5	)		—			5,283
Net cash (used in) provided by operating activities		(50,310	)		—		91,954			1,094			—			42,738
Cash flows from investing activities:
Proceeds from sale of assets or radio stations		—			—		296			—			—			296
Purchases of intangible assets		—			—		(246	)		—			—			(246	)
Capital expenditures		(925	)		—		(1,550	)		—			—			(2,475	)
Net cash used in investing activities		(925	)		—		(1,500	)		—			—			(2,425	)
Cash flows from financing activities:
Intercompany transactions, net		95,922			—		(94,828	)		(1,094	)		—			—
Repayments of borrowings from bank credit facility		(43,136	)		—		—			—			—			(43,136	)
Tax withholding paid on behalf of employees		(343	)		—		—			—			—			(343	)
Other		(244	)		—		—			—			—			(244	)
Net cash provided by (used in) financing activities		52,199			—		(94,828	)		(1,094	)		—			(43,723	)
Increase (decrease) in cash and cash equivalents		964			—		(4,374	)		—			—			(3,410	)
Cash and cash equivalents at beginning of period		11,674			—		4,550			—			—			16,224
Cash and cash equivalents at end of period	$	12,638		$	—	$	176		$	—		$	—		$	12,814