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Acquisitions and Dispositions (Tables)
12 Months Ended
Dec. 31, 2018
Summary of Pro forma Information
The following unaudited pro forma information for the years ended December 31, 2017 and 2018 assumes that the acquisitions and dispositions had occurred on January 1, 2017. The significant pro forma adjustments are depreciation and interest expense. This unaudited pro forma information has been prepared based on estimates and assumptions, which management believes are reasonable, and is not necessarily indicative of what would have occurred had the acquisition been completed on January 1, 2017 or of results that may occur in the future.
 
 
 
Year ended December 31,
 
 
 
2017
 
 
2018
 
Net revenue
 
$
262,237,250
 
 
$
263,483,963
 
Operating income
 
 
44,592,524
 
 
 
42,718,429
 
Net income
 
 
11,983,819
 
 
 
16,307,717
 
Basic and diluted net income per share
 
 
0.43
 
 
 
0.59
 
CBS Radio Stations Inc., Entercom Boston LLC and The Entercom Divestiture Trust [Member]  
Schedule of Purchase Price Allocation
The asset allocation is summarized as follows:
 
Property and equipment
 
$806,970
 
FCC broadcasting license
 
 
35,943,600
 
Goodwill
 
 
11,882,030
 
Other intangibles
 
 
267,400
 
Fair value of assets received
 
 
48,900,000
 
Less cash consideration
 
 
(12,000,000)
 
 
 
36,900,000
 
Carrying amount of assets of exchanged radio station
 
 
(25,096,415)
Gain on exchange
 
$11,803,585
 
Schedule of Assumptions Used in Valuation of FCC Broadcasting Licenses
The key assumptions used in the valuation of the FCC broadcasting licenses are as follows:
 
Revenue growth rates
 (0.5)% – 2.4%
Market revenue shares at maturity
 5.3%
Operating income margins at maturity
 36.0%
Discount rate
 9.0%
WXTU-FM [Member]  
Schedule of Purchase Price Allocation
The purchase price allocation is summarized as follows:
 
Property and equipment
 
$
357,734
 
FCC broadcasting license
 
 
27,346,200
 
Goodwill
 
 
10,102,183
 
Other intangibles
 
 
193,883
 
 
 
$
38,000,000
 
Schedule of Assumptions Used in Valuation of FCC Broadcasting Licenses
The key assumptions used in the valuation of the FCC broadcasting licenses are as follows:
 
Revenue growth rates
  
0.6% - 1.3%
Market revenue shares at maturity
  
5.4%
Operating income margins at maturity
  
30.5%
Discount rate
  
9.0%